Fall is in the offing and Toronto’s real estate market is pumped to make the most out of it. The real estate market in the most happening city of Canada is shedding the pandemic demons slowly and charting its path back to former glory.
If condo-buying is on the cards for homebuyers in Toronto, then the upcoming fall is yours. Sales are up and average home prices have touched the zenith in June, signaling renewed confidence of homebuyers in the real estate. However, condos have witnessed less pronounced price growth, hinting at a buyer’s market.
How is Toronto’s market holding up?
Toronto’ real estate market went through a rough patch after Canada announced a complete lockdown towards the end of March. Sales tanked to record lows in April and remained so till the first weeks of May. However, the pent-up demand for homes burst out in the open towards the end of May and sales picked up.
According to data from the Toronto Real Estate Board (TRREB), average home prices in June touched $931,000, surpassing the earlier record of $920, 791 in April 2017. Detached homes fetched prices of $1.52 million, up by 14.3% while semi-detached ones quoted prices of $1.29 million, up by 22%. Toronto’s condos also witnessed a fair rise by 5.6% on an average in June, taking their price to $672,000. While that may sound pricey, those mulling the possibility of buying a condo in the coming days for investment purposes can take the plunge.
Why is Toronto’s market so strong during the ongoing pandemic?
Toronto went into a complete lockdown when the real state market was prepping for the red-hot spring season. Homebuyers and sellers looking for a good deal during the spring season, were pre-approved or pre-qualified, while others had already sold their homes.
The Toronto property market became hotter than previous years due to a dearth in the supply of homes during the spring season. The GTA receives almost 100,000 new residents every year. So, an abundance of buyers in the market caused the prices to shoot up and at that moment the virus invaded.
The real estate market froze and as the lockdown ended all the pre-qualified buyers rushed to the market and the demand levels rose up to pre-March levels. Bidding wars commenced as people who got sidelined during the winter months due to high condo prices, have come back riding on the rock-bottom interest rates.
Positive sentiments driving Toronto’s real estate market
Though the pandemic is still raging on, the number of buyers that have swarmed the market now has exceeded those that were in the time of spring. Real estate experts say that positive consumer sentiments around buying and selling are pedaling the demand for homes in Toronto.
Around 44% of Canadians believe that the real estate market will scream back to pre-pandemic levels by 2021, while 29% foresee that happening much earlier before the end of 2020. There’s no doubt that these sentiments will auger well for the real estate sector in the months to come.