The main areas of the GTA (Great Toronto area) will retain the prices and continue growth up to 5-12 % compare with what they had at the end of 2020. Of course, some highly demanded areas and downtown will see a higher rise in prices except the condo units market which price dynamic will be negative. I believe that the price correction will be expected for condos (most vulnerable for COVID lock down) and next most affordable single-family homes like townhouses coincide with the level of inflation, lower mortgage interest rates.
The COVID pandemic changed housing preferences in the Toronto area, boosting demand and price for single-family homes — the least affordable category — and supply of smaller condo units downtown. It also forced relocation from urban areas to suburbs resulting in a price surge in GTA suburban and rural areas. That also results in rental prices plunge for condo units in Toronto downtown up to 20%.
In the market of rural detached and cottages within a radius of 200 km from the GTA, the prices continue to climb. The cost of water front lots (1/2 acre size) starts from CAD$ 500,000 , and is dependent on the quality of the buildings and the nearby infrastructure. The higher construction cost compared to Toronto means the absence of properties selling for an affordable price. If you are dreaming of buying a waterfront cottage, then you should not wait for price drop in 2021.