Toronto Property Market Is Experiencing A Steady Decline In Sales

Summer 2020 was not that bad for the real estate market in Toronto, considering the coronavirus pandemic and its effects. In Toronto, the real estate market showed amazing resilience and flexibility that helped it get in a speedy recovery mode as soon as some basic conditions are met.

However, summer is about to end, and there is a growing concern among real estate professionals wondering what comes next.

Real estate agencies such as Condo Mapper and the Canada Mortgage and Housing Corporation (CMHC) believe that this fall might not be that favorable to the real estate market. They base their concerns on several factors:

Even now, the number of sales is twice smaller than the number of available listings. Everyone anticipates that gap to get even bigger in favor of the number of available listings from the look of things. More than 54,000 units are under construction, which will have a massive impact on the market once they are completed.

A report from the Canadian Bankers Association (CBA) suggests that over 760,000 Canadians chose to skip payments or defer their mortgages. That's more than 15% of all the folks with mortgages. So yes, the pool of available listings will further increase by the homeowners who won't pay their mortgages.

CNHC also believes that low oil demand will have a massive impact on the market. Restricted mobility due to the coronavirus pandemic has been driving oil prices downwards for some time. If we got hit by another wave of infections this fall, oil prices could get even lower, which will have a crippling effect on the economy in the oil-producing provinces.

Low immigration and unemployment are already slowing down the real estate market.

What’s almost certain is that real estate prices will get even lower this fall. How low and which segments of the real estate market will decline most is too early to tell.
Run or Buy?
A declining market raises many red flags for many people, especially if you are a developer. But at the same time, for some people, this might be an opportunity. Here's why.

• Money has never been cheaper. By that, we mean low-interest rates for buying real estate. The simple truth is that money won't be as cheap as nowadays. Soon enough, the interest rates will increase, and that's a fact.

• Not everyone is doing badly in the current economy. The unemployment rate is high, it can get even higher this fall, but some parts of the economy seem immune to the coronavirus pandemic.

Millions of Canadians did well for themselves in 2020, in terms of earning and saving, and their jobs are fairly safe. They might still hold back on their investments because of the fear of losing their job, but for a big percentage of those people, that fear is simply overrated and unjustified.

The point is a good-paying job, pandemic immune job, some savings, low-interest rates, and falling real estate prices, making real investment quite appealing.

• Certain segments of the condo market are on fire, which is not likely to slow down this fall significantly. Boutique style, low rise lofts, and condos with large terraces are in demand and will stay in demand throughout fall 2020.

Condo Mapper International Inc.

Address:
3180 Ridgeway Drive, Unit # 36
Mississauga,
Ontario
L5L 5S7
Canada

Phone Number: +1 647 370 2635

Business email: info@condomapper.ca

Website URL: https://condomapper.ca/

Condo Mapper Team are award-winning realtors specializing in properties in the Greater Toronto Area.

This release was published on openPR.