The condo market is waking up, and that’s quite evident. It’s something that comes not just from real estate companies such as CondoMapper that managed to stay on top of their game during the worst days of the pandemics. Our insights are further supported by data from the Toronto Regional Real Estate Board.
Here’s some raw data.
- In May, the number of new active listings and sales were two times the reported number of active listings in April. The number of active listings and sales in June 2020 compared to May 2020 recorded an increase of 89%. That’s a sure sign of a trend that is expected to last throughout the summer.
- The average selling price of a condo in June 2020, compared to the average selling price of a condo back in June 2019, is up by almost 12%.
- All pre-corona projects are financed and on-schedule. The way things are at the moment, that’s just enough to supply the current demand of the market.
- The seasonally-adjusted average selling price in June is also quite up (7.8%) compared to May 2020.
- On average, new listings of condos stay on the market for 22 days.
- The average price of a condo in Toronto is $740, 616.
- There are 1532 active condo listings in Toronto.
- However, in the long run, if the situation with the Corona doesn’t get out of hand, developers will likely need to step up their game and make an effort to bring new development projects to life.
Here’s the logic of it all.
Before we go into interpreting the data, we also need to include one more variable to our equation – the mortgage rate. The below 2% mortgage rate was introduced as an anti-recession measure, and people love it as it puts them in a great position to invest in real estate. That mainly plays great with first-time homebuyers that can claim additional subsidies.
However, the low mortgage rate was not the key factor that caused all that movement in the real estate sector. That doesn’t exclude it from the current momentum as it is an integral part of the greater picture, but it is something more than that.
It has to do more with people and their perspective of the current situation with the pandemic.
Both people and the government are determined to adjust to the new circumstances and avoid closing the economy once again. It seems that there is a widely accepted consensus that until an effective vaccine has been developed, the new reality will mean strictly following protocols.
The data and stats in May and June prove that we can keep the economy up and go despite the current pandemic. By healing the economy, the real estate sector, and with it, the condo market is set on a growth path. That doesn’t mean the real estate sector will be back at its best any time soon, but simply that the path is set, and we are heading in the right direction.
If we are to believe analysts and experts, the real estate industry should be at its pre-coronavirus level at some point in 2022.
Image by Tesa Robbins from Pixabay
