2020 began wonderfully, and everything pointed to an excellent year for the Toronto property market. Then we got hit by the pandemic, and at one point, everything seemed like it is upside down. However, after the initial shock, the Toronto property market started showing signs of recovery. Some even argue far more than just that.
But before we jump into some conclusions, let’s check out the raw data. Much of the data presented here has been collected by renowned organizations such as the Toronto Region Real Estate Board.
- Compared to July 2019, the percentage of active listings decreased by 16.3%.
- In July, there were 49.5% more homes sold than the previous month, June.
- A large number of real estate agencies such as Condo Mapper reported that competition between buyers is rising as the summer progresses.
- In July, there was a 29.5% uptick in sales.
- In July, the average house prices were at an all-time high.
Those were just some of the data collected during the summer months. Here’s what many experts predict and think about the current trends and expectations.
First of all, just because the average house prices are floating pretty high, there is no guarantee that they will remain that high during the autumn. The biggest concern is the economic recession caused by the pandemic. Then there is the unemployment rate. Last but not least is the situation in the US, which can have a massive impact on what happens in Canada in general, not just the Toronto area.
There is also a concern about what will happen once the schools reopen and whether there will be a spike in COVID-19 cases. If in case, there is a resurgent of new cases, there is a fear of new restrictions that can further hit the economy.
However, many economists and some government officials believe that there is only a small chance for new restrictions. It is widely accepted that only a massive spread of the virus and an incredible spike of new cases will stop. Otherwise, the general expectation is for things to move forward as they are now. Almost all projections are based on that and accept that we must keep on living with the virus among us.
There are half a dozen potential COVID-19 vaccines in their final stages. If they prove to be as effective as expected, they can have a major effect on the dynamics in the Toronto property market. That can ignite a lot of activity in almost all segments of the market. That might create a strong momentum that will speedily place the real estate market on its previous trails.
The property market proved way more resilient than expected, even in the toughest months of the pandemic. Whether some of the promising vaccines will be available in the autumn of 2020 is still uncertain. Certainly, the property market won’t crash. It might slow down to some extent, but crashing or anything like that is highly unlikely.