Today marks the first day of the new province-wide stay-at-home order. Real estate remains an essential service, so if you need to move at this time, it is still possible.
Despite increasing case counts and concerns over COVID-19 at the end of 2020, the Toronto real estate market has continued to heat up with the number of sales and prices up on a year-over-year basis (see Market Watch Report below).
Condos were of particular interest in December with a spike in the number of sales recorded. Many believe a bottom is forming in the downtown Toronto condo market as inventory is absorbed by bargain hunters and investors. My belief is that this is a unique opportunity in the condo market that we have not seen in many, many years. Smart buyers looking for a condo are taking advantage of it.
Renters in the city have been enjoying double-digit discounts on rental units, another market reality we have not seen in years. Excess supply from AirBNB units entering the long-term rental market and a lack of the typical demand we see from immigration and international students, among other factors, has caused the rental market to soften. Many believe the rental market has neared its bottom and will start to rebound over the next six months.
The low-rise market in the city and across the GTA is hot as buyers look for more space and supply remains limited. Low-rise property continues to be an excellent investment vehicle.
Market Watch Report (December 2020)
Home Price Index Report (December 2020)
Rental Market Report (Q3 2020)
Condo Market Report (Q3 2020)
GTA Residential Development Market Update (Q3 2020)
Commercial Realty Watch (Q3 2020)
Bank of Canada Release (December 9, 2020)
The Bank of Canada held its policy interest rate at their most recent meeting. They indicated that while we should expect a choppy trajectory heading into 2021, the economy is generally performing in line with their expectations. They further clarified that based on their projections, they expect there will be sufficient slack in the economy to hold their interest rate as is through 2023. For now, this means continued low mortgage rates for the foreseeable future, although any signs of a speedier recovery could trigger 5-year fixed to begin a slow upward climb.
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Residential Mortgage Rate Charts
Mortgage Calculator & Mortgage Affordability
Commercial Mortgage Rates - Contact me
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City Council approves plan for tax on vacant homes in Toronto (City of Toronto)
Emerging Trends in Canadian Real Estate 2021 (PwC & Urban Land Institute)
Spectacular end to a spectacular year for Canada’s housing markets (RBC Economics)
What we know about Canada’s real estate industry as we enter 2021 (RENX)
Toronto Developers Predict What 2021 has in Store for the Condo Market (Toronto Storeys)
Major condo price correction is unlikely despite collapsing demand: BMO (Livabl)
Bargain hunting buyers caused condos sales to soar in December: RBC (Livabl)
Real Estate Optimism Blows Past Pre-Pandemic Levels in Canada (Bloomberg)
Canada’s economy ready to ‘take off like a rocket’: CIBC’s Tal (RENX)
Toronto wants to add garden suites to neighbourhood housing options (Toronto Star)
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