This is the first Brampton real estate update for bramptonrealestatenews.com. I’m actually super excited that I’ve started this new website. I feel as though I’ve been needing a new website for real estate, but a new project too.
This will be the perfect scenario to showcase news about Brampton and for being a true guide for real estate buyers and sellers. With all that being said, let’s jump in and have a look at the latest Brampton real estate news.
Real Estate Update for Brampton
This data was taken from the TRREB’s (Toronto Regional Real Estate Board) MLS information.
Looking at the chart above, it’s pretty easy to see how the market has gone up drastically year over year. It was incredible what we’ve experienced in the last 5 years, but when the Covid-19 virus hit us, it took things to the next level for a few reasons
Explanation Of The Real Estate Chart Data.
- Average prices rose by 16.7% comparing September 2020 to September 2019.
- Which translates into the average price now being $861,877.
- Days on Market is down to 13. It would actually be less, but agents have been utilizing the delaying of offers strategy to perpetuate a bidding war for their Sellers. Understandable….I do the same thing.
- Brampton’s inventory was at 0.9 months in September. This represents one of the GTA’s (Greater Toronto Area) tightest markets.
- In September 2019 there were 778 sales. In September 2020 there were 1142 sales. This represents an increase of 46.8% year over year.
These numbers are unheard of. In my entire career I’ve never seen anything quite like this. Yes, I’ve been through the booms and recessions, but never a market fueled by a pandemic.
Has Covid-19 Affected Real Estate Prices
Yes. Covid-19 has affected real estate prices in a few ways. Initially, the virus paralyzed the market. Then as demand was building, but the buyers were not pulling the trigger, the market pressure was building and building. Interest rates dropped even further, beyond already record lows, and helped to fuel the buying pressure, as more people would qualify for larger mortgages.
Once buyers started to make offers, it pushed other buyers to do the same, but few properties were coming out on the market. This created the insane bidding wars, and hence the insane price increases. In essence, a quiet Spring market led to a crazy Summer and Fall real estate market.
The other factor caused by Covid-19 is that many, many people ended up working from home. This has become the norm, and many of those people will not be returning to their work’s physical addresses to do their jobs. They will remain working at home.
Couple this fact with the fear of contracting Covid-19, and the people who live in the big cities have decided that the outlying areas, cottage country, and rural areas are the place to move to….driving up the prices in these locales too.
Why stay in the areas of high population density, compounding the chances of getting the Virus, when you can move to a property with acreage, or on a lake, and still do your job? Sounds like a good plan to me!
Brampton Real Estate Forecast
Of course our crystal balls are always a bit hazy, but knowing the trends, data, and almost 35 years of experience, I can probably come up with a pretty fair analysis of what is probably going to happen over the next 6 months to a year (remember though, this is only my own ideas and interpretation of the real estate market).
Also, let’s not forget that our Covid-19 pandemic crisis is far from over. Due to the unpredictable nature of the virus, and how the public deals with it, will also have an impact on the real estate business.
We are experiencing a slight slowdown on the level of activity out there. There’s still bidding wars happening, but less offers per property in the bidding war. Interest rates are helping to keep things happening. Some clients have renewed their mortgages for 5 years at a rate of 1.79%. Never thought I’d see these kinds of numbers.
There will still probably be increases in prices, but nowhere like what we’ve seen in the last year. As the demand becomes satisfied, there will be a feeling of normalcy within the market with less pressurized situations.
Buyers will be able to stop and make more rational decisions. We’ll see more building inspections again. These are all good things, with more protections in place for buyers.
Brampton Real Estate Update Summary
To conclude, I’d say we’re in new times, and we have to adapt. Clearly, a pandemic doesn’t squash the real estate business. As a matter of fact, in the right region, and with the correct ingredients in place it’s like rocket-fuel for the market. Now, this scenario will not last forever.
What’s fueling the Brampton real estate market will come to an end because immigration is also at a standstill at the moment.
However, capitalize on this if you can. If you need to, or want to leave the area, you will be rewarded handsomely. If you choose to go to a lower priced area, like West or North West of the GTA (Brant County, Wellington, Simcoe, Bruce, Northern Bruce etc.), then you’re making bank!
Until the next Brampton real estate update….
Tony Brayley – RE/MAX Realty Services Inc., Brokerage – Brampton Real Estate Agent
391 Main St. N. Brampton, ON L6X 1N7