To invest or not, that is the question now. Well, the question is the same this year, as it was the year before, and the year before, despite the current pandemic.
It is more important to ask why I should invest now rather than later. That’s the critical question, whether you are a potential buyer or a developer.
The answer to that, as always, hides in the data. Not in an article written by some over-paid analysts or some self-proclaimed real estate guru, but in data and logical reasoning. A smart man won’t have too much trouble translating data into an actionable conclusion. That’s our mantra at CondoMapper – present people the factual condition of the property market and let people make their own decisions.
Here’s what we got.
- According to the Canadian Real Estate Association (CREA), there are 6,500 new listings in the last 20 days. Their statistics indicate that the average house price is CAD 1,035,000.
- The average number of median days on the market for a house in Toronto is 15. Again, that’s data from the Canadian Real Estate Association (CREA).
- A report made by the Canada Mortgage and Housing Corporation (CMHC) suggests a decline in house prices, which will be between 19% and 20%. They expect the fall to happen in the last three months of 2023. However, their report is made under a set of assumptions, given the current pandemic. At the moment, house prices are steady, and there are no signs of any decline. At least not in Toronto and its wider region.
- Record-low mortgage rates (below the standard 2% barrier) attract property buyers. HSBC is the first bank to crack the long-standing 2% barrier. Many are expected to follow this trend. This is, by all means, extraordinary, and a key factor that drives the current property sales.
- In the last decade or so, Toronto’s residential market was driven by the in-migration from other parts of Canada and non-residents. On average, 40,000 new units were built to accommodate that demand. This year, that inflow was minimal due to the current pandemic and has sealed off its borders. Also, inter-provincial migration is pretty much at a halt.
- According to data from several real estate agencies, approximately 41% of all freeholds in June were sold over their asking price. These numbers were not seen in other Canadian cities, just in Toronto.
- According to a report made by Ryerson University’s Centre for Urban Research, Toronto remains the fastest-growing metropolitan area in the North American continent, not just Canada. It held that title despite the current pandemic and despite the COVID lockdowns and travel restrictions.
Toronto is, and it will remain a popular living destination, both for Canadians and foreigners. Then there are the extremely low mortgage rates that are seen as an opportunity by many Canadians to invest in their new homes. The data also shows us that the property market hit its lowest point, and there is only one way from there – upwards.