Ever the hot topic, how the Toronto real estate market is faring seven months into the COVID-19 pandemic continues to fascinate.

First, there was the market freeze-up in the immediate aftermath of the lockdown. In a matter of weeks, however, the buyers were back, thanks in large part to the real estate industry pivoting to more robust virtual marketing while implementing safety protocols to ensure showings could be conducted safely and responsibly.

Houses were selling with multiple offers for record prices in record time; demand seemingly insatiable. Months cooped up inside had left many with time to reassess their set up. For some buyers that meant a desire for more space to accommodate the new rhythms of working, schooling and cooking every meal from home, while for others it was a move out of the city. Outer markets were on fire.

Buyers and sellers alike seemed to share the belief that in the face of an all but guaranteed second wave, the time was now.

In response to widespread job losses, particularly in the hospitality and service sector, university classes moving online, and the short-term rental market being decimated by the abrupt loss of tourism, the rental market was flooded with vacant downtown condos.

It wouldn’t be long, analysts predicted, until investors, faced with uncertain returns, started dumping their units.

By the time September rolled around and the original mortgage deferral programs ended, the condo market surged with new listings — a 215% increase over the same month last year.

For the first time in a very long time, the term “buyer’s market” was being used to describe what was happening with downtown condos, particularly the smaller, more entry-level units that used to be the only way some buyers could afford to get onto the ladder.

One might assume that this means the bubble has burst and the great correction is upon us, but the numbers don’t yet support that. Condo prices are still up 7.7% over last year. Even in the wake of the economic destruction brought on by a global pandemic, condos continue to sell, albeit at a slower pace than we’re used to. There will be a dip, no doubt, but that surge of inventory is starting to absorb and we’re not seeing many fire sales.

On the freehold front, even that is starting to slow down. Houses are selling for top dollar, yes, but for the most part, the crazed bidding wars seem to have abated. Pricing matters now — houses that are properly priced sell quickly, but sellers who have unrealistic expectations are just as likely to see their properties sit.

Anecdotally, it seems like things are slowing down. A number of the city’s top agents are now advising their clients to hold off on listing their properties until the new year.

Now that the weather is starting to turn, summer’s respite from the realities of life in a pandemic is quickly slipping away. Whereas before we could hold on to the illusion of normalcy through socially distanced barbeques and dock days at the cottage, it’s going to be hard to escape how strange life has become when having to bundle up in snowsuits to spend backyard time with loved ones. It leaves many of us anxiously wondering what is to come in the months ahead.

Will the second wave be as bad as some fear? Will there be another seize up or will the market just need another acclimation period? Will the rebound be as fast and fierce next time around? So many questions. And while the Toronto real estate market is a beast who has proven its resiliency over and over again, only time will tell. Stay tuned.

Sign up to receive daily headline news from the Toronto SUN, a division of Postmedia Network Inc.

A welcome email is on its way. If you don’t see it please check your junk folder.

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

© 2020 Toronto Sun, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.

This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Service and Privacy Policy.

Source: https://torontosun.com/opinion/columnists/lackie-toronto-real-estate-market-still-going-strong-despite-pandemic

Toronto, Condominium, Real Estate

World news – THAT – LACKIE: Will second wave of COVID burst Toronto real estate bubble?

Building on its expertise in the areas of digital, technologies and processes , CSS Engineering you in your most ambitious transformation projects and helps you bring out new ideas, new offers, new modes of collaboration, new ways of producing and selling.

CSS Engineering is involved in projects each customer as if it were his own. We believe a consulting company should be more than an advisor. We put ourselves in the place of our customers, to align we incentives to their goals, and collaborate to unlock the full potential their business. This establishes deep relationships and enjoyable.

Our services:

  1. Create professional websites
  2. Hosting high performance and unlimited
  3. Sale and video surveillance cameras installation
  4. Sale and Installation of security system and alarm
  5. E-Marketing

All our achievements here https://www.css-engineering.com/en/works/

LEAVE A REPLY

Please enter your comment!
Please enter your name here