Impact of 2nd Lockdown On Toronto Real Estate
Jan 22, 2021 19:50 · 1046 words · 5 minute read
during this video i’m going to let you know how our market is shaping up so far in 2021 i’m sure over the past few months many of you have heard that the prices have continuously been trending upwards and that is still the case however there are a couple key differences and surprises that have taken place so far this year in 2021 and let’s get right into the video looking at 2020 overall there was two main differences which made it unique to previous years firstly being that the average condo did drop in value and secondly due to the pandemic we were no longer a seasonal real estate market whereas usually the number of sales and the prices do rise during the spring and then again in the fall however in 2020 due to the lockdown and a very quiet second quarter the real estate market was no longer seasonal and as a matter of fact we had one of the best decembers we’ve had in a while as december is usually time when people are celebrating the holidays or they’re going on vacation we noticed that the number of sales was up and the average price across most style of homes were up i did predict that the condo market would experience moderate appreciation and surprisingly we are already beginning to see that happen not only downtown toronto but if we look at etobicoke even if we look at areas of york region there are more sales in the higher price ranges of condos 700 000 condos 800 000 condos even some of the luxury units and this is likely a sign that the condo market is no longer going to drop and if you’re an investor looking at purchasing a condominium maybe you’re looking to buy a condo and rent it out keep it long-term or even if you’re somebody looking to do a flip i would say now is a good time because the supply it’s not really too low to the point where you’d be concerned about participating in bidding wars more so the prices are somewhat stable it doesn’t look like the rent is declining anymore if you’re a real estate agent watching this video and you’re looking for opportunity i’ve recently switched brokerages from remax over to exp if you’re looking for a new brokerage maybe a shock to the system then call me call me call me my number is 416-671-5218 this article here says the average toronto rent prices haven’t been this low in 3.
5 years, and this is across one bedroom units two bedrooms and even larger units take a look at this chart over here what they did was they compared the third quarter from all years 2015 to 2020 looking at the rent per square foot and there was quite a significant drop in the rent per square foot however this mostly took place in the toronto corn and this information could give purchasers as well as investors some optimism knowing that once they do buy the unit likely it should increase in rent long term just like it was doing back from 2015.
looking at the market statistics prior to covid so the first full month we can say pre pandemic would be february 2020 the average condo in the gta was selling for 666 000 and not only that but it actually appreciated over the 12 months prior by 18. 6 percent compare that to december 2020 the average price was only at 600 000 that’s an average price decrease by sixty six thousand dollars it’s quite significant especially when you consider the fact that many of these purchasers are first-time buyers maybe they’re getting financing help from their parents or someone who they know and every dollar counts so if you’re a buyer great time to buy as the interest rates are still low and if you’re a seller could be a really good time to sell because we’re starting to see this in the marketplace if there’s a condo building which doesn’t have anything up for sale one seller goes ahead and capitalizes by listing their condo underprices it for a bidding war and then they’re selling far over the asking price similar to what we were seeing in the condo market 12 months ago according to rbc in this article here it makes the most financial sense to go ahead and purchase a condominium versus a single family home and if we look at the actual price difference between buying a condo and buying a freehold property i don’t think it’s ever been this significant take a look at it this way the average condo let’s say it depreciated by 10 throughout the pandemic whereas the average house appreciated by 15 throughout the pandemic that’s a difference of about 25 looking at the numbers you can say that pre-pandemic the difference between the average condo and the average freehold property we’re somewhere between 300 to 320 000 whereas post pandemic we’re looking at an average price difference between condo and freehold properties by about 450 000 so ultimately provided that buyers have certainty that their condo is not going to depreciate in value and that the rents should stabilize or go up i think it definitely does make sense to buy a condo now or sometime in the next short while and if you have a house then similarly it all depends on supply and demand in most areas right now the inventory is very low so we’re seeing record-breaking prices on the streets and subdivisions it’s a great time to sell we’re seeing multiple offers on almost every property that’s being listed right now i hope you found this information helpful if you’re wondering what you can afford for six hundred thousand dollars i made a video encompassing that right here if you’re a real estate agent maybe looking at different brokerages i can share with you why i switched to the first cloud-based brokerage exp and if you’re a buyer or a seller i’d love to help you can call me call me call me my number’s 416-671-5218 don’t forget to click subscribe and i will look forward to seeing you all next time.