TRREB’s December GTA Data.
Toronto, January 6th, 2021
By Ivan Kalinin
Toronto real estate market has remained extremely active throughout what historically has been the slowest month in the market. This has been caused partially by the historically low borrowing costs and partially by the lockdown imposed by the Ontario government. What happens when the interest rates are low and all the entertainment has been limited to Netflix and… that’s it? You go shopping!
The activity in the Toronto market has been booming with sales jumping up 63% year over year, and new listings increasing by 66% since last year. Lisa Patel, the TRREB president was quoted saying this housing market recovery is a “strong economic rebound in many sectors of the economy”. Is 2021 looking like a great year of recovery? I’m crossing my fingers..
Condo market is waking up – the window of opportunity is shrinking.
The condo segment of the Toronto real estate market has been in a lull in the covid-19 era. The sales have slowed down significantly right after the pandemic started. The slow down in the condo market has continued all the way until November, when the prices dipped 2%.
But December was a different story, there were certainly a lot more buyers coming back into the market and there was a 75% increase in sales year over year. The moment the news about the vaccine arriving into the country and the vaccination starting, coupled with the factors outlined above boosted the buyers’ confidence and brought them back into the market.
The prices still dipped 5% since last year, but we need to keep in mind that a lot of the inventory was already discounted. Basically, people were taking advantage of the low borrowing costs, staying in town during the lockdown and snagging the fantastic deals that were presented to them by sellers who were anticipating a much slower market.
I have been saying this since the pandemic has begun – this is a window of opportunity where a Toronto condo buyer can enjoy the process without the horror of bidding wars. Maybe even negotiate a deal for themselves without being forced to bid over the market value, just to be able to get a place.
With the renewed enthusiasm thanks to the news about the vaccine, we can anticipate an increasing demand for condos again. As the news progresses and more people get vaccinated, the demand should also increase. But the moment the borders will start opening up again, that’s where the demand and prices will surge. Those who are buying now are blessed and should anticipate fantastic returns on their investments.
If you like talking real estate half as much as I do and are going to participate in the market in 2020, come chat and have a coffee. And if you are looking for a property as an investment, remember our super-popular private investment tours now booking in early 2020. Click here to book.
Ivan Kalinin is a sales agent at Key Toronto Real Estate Group. Zoocasa Realty Inc. – Brokerage independently owned and operated, He can be reached at 416 858 8085. Not intended to solicit clients already under contract.