Due to the COVID-19 pandemic and the social distancing measures implemented in Canada, everything we knew has changed. In Toronto, all activities have stopped, and among them is the real estate market.
Many experts have commented on the impact that this public health crisis can have on this market. No one knows what the result of this pandemic will be in the real estate market, but many experts are very optimistic.
Next, we will analyze the real estate market before the new coronavirus pandemic and current conditions in Toronto.
A Strong Start In 2020
In the first months of 2020, the city of Toronto is preparing for a market with high real estate rates. Demand managed to exceed supply in what is the metropolitan area of the city. Total property prices were $ 866,210, which means an increase of 7%.
Accelerated prices could be highlighted in the condominium submarket; in this case, prices had an increase of 8.8%.
Toronto Real Estate Market Reaction To COVID-19
With social distancing measures due to the pandemic, Toronto real estate agents have had to adapt to this new normal. Although the real estate market is an essential service and the Ontario government allowed them to continue operating, the activities were not going well.
As a result of this situation, real estate agents have had to be creative and have changed their strategies. They use videos with 360-degree tours or live videos to show the houses. At the time of the visits in person, all the agents are careful and take the necessary measures for the safety of all.
The agreements between buyers and real estate agents are no longer closed by shaking hands.
According to studies by the Toronto Regional Real Estate Board (TRREB) in March, Toronto’s real estate industry is booming. Sales had increased by 49% in GTA compared to 2019.
Things changed for the second period of March, and property sales decreased by almost 15.9% compared to 2019. House prices have maintained their prices and remain at $ 902,680, which means a 14.5% increase since March 2019.
For many brokers and real estate agents, house prices have been able to remain stable.
Balance Of The Stable Real Estate Market
According to a senior analyst at the Toronto Regional Real Estate Board (TRREB), the seller-buyer relationship has remained stable despite the outbreak. So he says the Toronto market is not in trouble and continues to stay despite the global crisis.
Although sales have dropped, the charts have also declined; for the expert, this situation will continue in the short term until the pandemic passes a little.
Toronto City Owners Less Optimistic
For Toronto homeowners, the COVID-19 has been a heavy blow, especially to people who work with short-term rental housing. They are the ones who have suffered the most from the current crisis in the city.
In this case, many owners were doing business of great benefit with the rentals on Airbnb. But with the closing of the borders, their income has been paralyzed, and short-term rents have decreased. What experts recommend is waiting for everything to get better and staying safe for your health and that of your loved ones.
This will happen, and everything will return to normal to continue working in the real estate market!