As Toronto begins to open up slowly from the three months of work from home orders, we are beginning to see the Toronto real estate market take off, again. Of particular note are the most desirable neighbourhoods like the Annex. It’s no surprise that the self-isolation has had singles and families thinking more and more about their living space and lifestyle. Perhaps the living quarters were a little too tight for their liking. Or, that the office space in their home was not sufficient to run a business or team. Whatever the motives may have been since COVID began, we are seeing the market roar back to life. The Annex offers incredible character homes, leafy streets, less density than the downtown core, and many of the houses are city-sized mansions.
Current State – June/July 2020
The market low was in mid-April. Since this low, we have seen a steady uptick in showings. This has signalled confidence in Toronto home buyers. As Toronto began lifting certain COVID-19 restrictions, we have seen buyers return in droves and the listings along with them. Far more houses are camping to market again. The pent up demand has been racing to see the new condos and homes coming to market.
2020 started with a bang in real estate. We had never seen such a robust real estate market. We have never completed as many deals for our clients in the first two months of a year, ever. We wondered what could slow down the scalding hot market. Little did we know that mid-March would provide us with the answer to our query. The global pandemic kicked in. Transactions dropped by nearly 70 %. As did the buyer pool. Fast forward three months, and the market is back with a vengeance. We have seen a recovery of about 10% fewer transactions than we would typically see in May. June is even stronger. Where will we be later this year? The Toronto real estate market us going up, and quickly. Our year-over-year values are up roughly 10%.
We predict that the summer 2020 real estate market will be the hottest and busiest on record. Usually, Toronto’s real estate market goes dormant while people head up to the cottage and travel. The pandemic has halted most travel, so people will stick around, and they will be buying. Expect the market to be strong through the summer and into December. Who would have thought, right?
Thankfully the city parks are opening, as well as some shops on a limited basis. We hold hope that we can continue to lower the rates of infection in our city, thereby allowing more interactions and local Annex businesses to re-open safely.
We will continue to keep a close eye on COVID-19 reopenings, and the real estate market throughout the Annex and our city.