2020 Year in review – Real Estate in North Durham and Kawartha Lakes
By: Brett Puckrin, Sales Representative | January 8, 2021
Before we look ahead, it’s helpful we take a brief look back and see where 2020 left off.
In 2020 we navigated one of the most tumultuous years in the recent past. Upon the onset of the pandemic in March 2020, many real estate gurus predicted a “fall on your face” type market with a stone drop of sales volume, low activity and value evaporation. The lockdown of Spring 2020 saw that stone drop of sales volume, and a stoppage of activity for 45 days but what did not happen was a price drop. The exact opposite occurred when things eased up on the lockdown – about early to mid May 2020 – Price appreciation and then some!
Simple reasoning amounted to:
- Record low interest rates
- A tight supply of available homes for sale
- An overabundance of buyers entering the market to take advantage of the low interest rates
- Disposable income was being saved and not spent.
- Money was still being acquired by many people still working
- Significant competition in most price ranges resulting in multiple offers on properties
- Due to number 1, we saw price appreciation and lots of it – nearly 15-25 % in some neighbourhoods
Where is 2021 going?
The December 2020 real estate market statistics are now out as of January 5, 2021 and the synopsis is not surprising – year over year (2019 to 2020) price gains in Scugog of 14.5% based on the Toronto Region Real Estate Board’s Home Price Index. Illustrating further; the benchmark price of a single-family home in Scugog in 2019 was $583,000 and as of January 2021, the benchmark is $682,100.
In Kawartha Lakes, the Kawartha Lakes Real Estate Board is reporting a whopping 18-22% value gains over the past year, seeing first time home buyers chasing their dream of owning a home in a lower value price range (more home for the dollars) and people escaping the cities.
The percentage increase is a direct result of the better buying power of lower financing costs coupled with low supply of listings and desire among many to enter the market for their first home or moving up. Together with Covid-19 stay at home restrictions, we either loved our home or hated it!
Trends we are seeing:
- How fast is your internet? – working from home
- Got an extra bedroom? – need out of my walk-in master bedroom closet
- Need a pool and a backyard!
- Need a bigger home
- Find me some country as I do not have to commute ever again.
2021 will continue to see these trends moving forward and we should see modest gains in price of 5 to 6% to the end of the year due mainly to low supply and high demand. As 2021 progresses and Covid-19 vaccinations accelerate, we may see a trend of people who moved out from the urban downtowns to remote countryside living will want to return to a slightly closer proximity to the city. That is where North Durham and Kawartha Lakes are uniquely positioned for those that will only need to get to the office one or two days a week! Easy to do from our areas versus Parry Sound or North Bay!
We are planning in monthly and quarterly outlooks as with a Pandemic – everything is changing daily. We never know what the world is going to throw at us next! If you want to sell your home – sooner than later is probably going to be the best bet.
The first quarter of 2021:
Continued short supply of listings and good demand will keep competition at a breakneck speed and upward pressure on values. Get ready for mid January and February – the spring market is starting now.