As one of the most unpredictable years is ending, we continue to see consistent growth in the Toronto real estate market. The Greater Toronto Area reported 8,766 sales in November, up 24.3% from last year.
It’s safe to say that while 2020 was a year of change for the real estate market, it was still a year of success. The GTA is still a hot place to be buying and selling, with single-family homes in both the GTA and City of Toronto getting quickly snatched up once they hit the market. This is likely due to home buyers taking advantage of very low borrowing costs.
Competition has been tight amongst buyers this Fall as many family’s who have seen a change in working from home, or deciding to start a family, move to the freehold home sector. As well, many buyers are choosing to invest in the real estate market while borrowing costs are attractive. It’s been a good time to sell, as well. The average selling price for all home types combined was up 13.3% to an average of $955,615.
Condos – still taking a dip, but a good opportunity….
In stark contrast, condo buyers are benefiting from more buying power compared to last year. While the freehold market is soaring, the condo market is seeing declines. Especially in the Toronto area, condo dwellers are making a mad dash for freehold homes or moving out of the city. This phenomenon may be short term. Many are speculating that this decline is being caused by folks leaving the city during COVID-19, either wanting to work from home somewhere else, or get out of the city where numbers have spiked. Areas such as Hamilton, Guelph, and Kitchener-Waterloo for example are seeing large real estate jumps as well, which one may guess is where our condo dwellers are headed.
This isn’t meant to last – Toronto as a city is still booming and condos are the more affordable property for many first-time buyers, investors, and immigrants to live. The price growth as the population of downtown neighborhoods will re-emerge once the boarder reopens, short-term visitors come back to the city, immigration increases, and companies go back to the office. This will again drive demand for both rental and ownership, much like we saw before the pandemic.
Have you had thoughts of seizing some of the opportunities we have been presented with in the condo market? For investors, now may be a great time to snatch up a condo property to rent, list on Airbnb, or hold and sell. Or, it might be a great time for someone who has been saving for their first one- or two-bedroom place to get in while the condo market is taking a bit of a nap.
So, what are you waiting for?
Are you thinking of buying a freehold home on the outskirts of Toronto? Why wait? The Premier is about to increase immigration to nearly 1.2 million people over the next three years. This means people are going to need homes to live in. A good guess would be that many will settle in Southern Ontario, B.C. and Quebec. Are you waiting for them to come in and help increase prices before you make a move? The fact is, the immigrants coming in over the last decade or so have brought in more money than those before them, many are buying homes before they even touch Canadian soil.
I work tirelessly to match my buyers to the perfect Toronto neighbourhood and home and promise to help you safely navigate this new virtual process. If you're considering purchasing a property in Toronto during the pandemic, please reach out to me today. I'm always happy to answer your questions. Call 416-903-7653 or email email@example.com