Buyers have returned to the Toronto housing market after a brief but dramatic decline in activity at the start of the pandemic. The lockdown measures that began in mid-March put an abrupt hold on what was primed to be a busy spring market, but this “pandemic pause” proved to be temporary. Activity resumed in May and June in what would be a delayed spring market. According to the RE/MAX Fall Market Outlook Report, Toronto is currently experiencing seller’s market conditions, with few listings in most areas, demand continuing to exceed supply, and low interest rates enticing more buyers into the market.
If you’re wondering where Toronto house prices may be headed this year, keep your neck craned upward. As long as the market continues to face an imbalance between high demand and low inventory levels, prices will remain strong. Based on these factors, a 5% increase in the average residential sale price is expected in the Toronto housing market for the remainder of 2020.
During the peak lockdown period, many Torontonians reassessed their living situations, with RE/MAX brokers reporting increased interest in homes near green space, with more yard space and separate entrances, as well as in properties near Lake Ontario or other bodies of water. According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. Even with Canadians living in cities opting for more suburban/rural living, listings in Toronto continue to see multiple offers. So, while it’s clear that Canadians’ tastes have shifted, there is still huge demand for the popular Toronto housing market.
Ontario Real Estate Trends
What’s been happening across other Ontario real estate markets? With the province being one of the hardest-hit regions in Canada, markets such as Niagara, Mississauga and Kitchener-Waterloo experienced significant drops in activity. However, come June, they bounced back aggressively as economies began to reopen. With all of Ontario now in phase three of re-opening and consumers more comfortable engaging in the market, market activity in Ontario is expected to remain steady in the fall, with modest price increases of up to 6% in some regions.
