Everything You Need to Know About the Current State of the Toronto Property Market
People are constantly bombarded with all sorts of information, predictions, interpretations of data, and analyses on the Toronto property market. Very often, people can’t even tell whether they are looking at factual news or some pundit interprets data to match their predictions.
Here at CondoMapper, we are appalled by the amazing confusion created among the ordinary folks about the property market in Toronto. At the same time, we and everyone else are feeling the real consequences of that confusion, which has a strong reflection on the market itself.
To help people get a clear picture of the true condition of the Toronto property market, we have assembled a list of data supported facts. What follows here is based on data gathered by renowned institutions such as the Canada Mortgage and Housing Corporation (CMHC) and The Canadian Real Estate Association (CREA). Furthermore, we decided to ditch all the technical jargon and charts so that everyone can comprehend what’s going on with the Toronto property market this summer.
Sales are down, but property prices remain stable
Sales declined for around 50%, compared to the sales last year in May. But that was spring 2020 when the pandemic was at its highest peak, and there were plenty of restriction measures in place. Many of those restrictions have been lifted since then.
Even though many people expected the property prices to fall fast, even some analysts jumped that gun way too early, that didn’t happen. The reason for that is simple: the ratio between new listings and sales has been constant. The moment we see a serious disparity in that department, property prices might start declining.
Considering that we didn’t experience that during the spring when there were a lot of restrictions in place, it is not likely that we will see that emerge this summer.
Toronto is still an attractive destination for both investors and people
The current pandemic had a profound effect on Toronto’s property market. For a moment, everyone held their breath, thinking that it will destroy the property market. But the truth is it didn’t. The property market was under immense pressure, but it “stood its ground,” despite it.
Strong pre-construction sales speak volumes for how people feel about the Toronto property market. Renowned experts and analysts predict that the Toronto property market will recover faster and better than any other city in Canada.
No COVID discounts
The demand is far from it was this time last year, but it is a steady one. People are more interested in renovated properties that don’t require additional investments, which is also different than last year.
People that had their doubts during the spring and held back on their investments now back in play. They are active in the real estate market and are driving the demand. As we explained earlier, there is no disparity between demand and supply, which translates – NO COVID DISCOUNT.
At least, not during the summer months.
No one knows what the late summer or autumn will bring to the property market in Toronto. A second wave would slow down the property market, but a COVID vaccine will be a major boost not just for people, but for the property market. Let’s hope that the vaccine will come sooner than later.