The recent pandemic has greatly affected the market and trade all over the world, causing a drastic downfall in the respective fields. The major industries which form the backbone of the economy of a nation like the textiles, transport, and real estate have come to a halt. The property market trend in Toronto, however, shows a different perspective. This can be understood by the data proposed and submitted by the Canadian Government regarding the transactions associated with land and property.
The Details
The Toronto Regional Real Estate Board (TRREB) put forth the data that the property sales hiked by about 12.3 percent in 2020. The total number of sales in homes and property was 8,012 in March 2020, while it was restricted to 7,132 in March 2019. However, after the closure of nonessential trades and the implementation of social distancing bylaws, the market has seen a gradual fall in the graph. The Canadian Government took immediate measures to curb such a downfall. The Bank of Canada reduced the bank interest to 0.25 percent from 1.25 percent to facilitate easy market movements.
Average Sale
The property market trend shows a fall in the early pandemic situations, but the graph spiked up in July. The apartments marked below $600K made greater sales than the ones marked above this price. According to Condo Mapper, the maximum apartment sales in the month of July 2020 aggregated to 1,236, the price range being $400K to $600K. Between the price ranges of $600K to $800K, the sale was limited to 724. As the state enters the recession, it is estimated that more expensive and bigger apartments will drop the price, and the modest condos may show some spike in sales.
The earlier forecast predicted a moderate hike of 4 percent in 2020 and a 3 percent hike in 2021, but as the global pandemic arrives, the prices may vary. On May 19, 2020, the Federal Standing Committee on Finance presented that the prices may drop from 9 percent to 18 percent. In 2020, the January to June period marked a total of 17,452 houses, 2,796 condo townhomes, and 8,717 condo apartments. The overall purchase of property, both condo homes, and houses, in Metro Toronto, fell in the month of April 2020 with an aggregate sale of 1,412 homes and 667 condos. Since then the sales have gradually risen and as predicted will show a further rise.
The CMHC Report
The Canada Mortgage and Housing Corp (CMHC) predicted that the prices are least expected to bounce back till late 2022. The sales in the month of May rose by 55 percent compared to April and rose by 89% in June compared to May. By the end of June 2020, the home listings by MLS fell by 29 percent compared to June 2019.
Conclusion
With the state gradually coming out, the worldwide pandemic, property marketing, and trade in Toronto are expected to show mixed trends. The sales may fluctuate depending upon the recession and inflation. The prices may drop further, and thus the sales might increase as per the buyer capacity. However, the state has faced a setback and needs measures to overcome the market halt.