Where has the time gone? It has already been six months since the coronavirus pandemic forced Canada into lockdown. Despite the progress that has been made in the wake of the public health crisis, COVID-19 has severely disrupted the national economy and the country’s finances. Even though it might be a couple of years until Canada returns to pre-pandemic levels it’s long-term economic outlook is generally optimistic. You only need to look at various parts of the nation to see how a lot of the sectors are rebounding – such as the Toronto real estate market. You may almost think that there was never a pandemic.
There has been an extraordinary and swift recovery for the Toronto housing market. The short-lived promise of a COVID-19 discount is long gone, and the city has continued bidding wars and there does not appear to be a slow down, in particular in the suburbs of Toronto as the new trend and work from home concept is making people sell their downtown Toronto real estate condos to purchase suburban homes with front and backyards in some of the popular neighbourhoods of Oakville, Mississauga, Burlington, Waterloo to mention a few.
The Toronto Regional Real Estate Board (TRREB) recently reported that home sales in the Greater Toronto Area surged 40.3 per cent in August compared to the same time a year ago. Last month, 10,775 home sales were made, up from 7,682 in the same month last year. According to the real estate board, the average price of a home sold in the GTA was $951,404, up from $792,134 last year.
Sales of detached homes increased 50.6 per cent, semi-detached houses rose 66.8 per cent advance last, and townhouses climbed 45.8 per cent. Condo apartment sales did
Why are Toronto real estate prices so high?
These housing boom conditions might seem confusing since there was an 11.5-per-cent decline in employment growth in Toronto. There are, however, a set of key factors to explain why North America’s fourth-largest city continues to witness incredible growth.
Jason Mercer, the board’s chief market analyst, explained that “market conditions remained very tight in the GTA resale market” last month. Competition between buyers was immense for low-rise home types, contributing to higher price growth.
Canadian consumer confidence is returning, leading to a hyperactive GTA housing market.
Low borrowing costs continue to be a driver of rising housing prices and it appears that, the Bank of Canada (BoC) will maintain their interest rate of 0.25 per cent for quite some time.
The Future of Toronto Real Estate
COVID-19 has changed everything, from housing trends to consumer preferences to monthly activity. What other developments will unfold in the months and years to come? For now, the demand for Toronto real estate is huge, in particular in the outskirts. Toronto real estate supply is low and borrowing is inexpensive – all crucial factors for a hot real estate market that is projected to remain active in the fall.
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