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But then it woke back up again. And woke back up, it did.
This has been, by all accounts, the busiest summer on record. The average price of a home in Toronto is now closer than it’s ever been to $1,000,000.
Yes, $1,000,000.
And that is in the middle of a global pandemic with credible fears of a second wave to come.
And a suburban and rural exodus from Toronto driving outer markets to record levels.
Maybe it’s the pent-up demand from the spring market that never came, or possibly the fact that most people aren’t travelling this year, or maybe even the five months of social distancing that likely changed our perspectives on our living situations.
And it’s not that people are oblivious to the potential economic fallout of COVID-19 — it’s more that buyers appear confident that Toronto is a sound investment. Whatever comes next, in the mid-to-long-term, even a 2008-style crash will really just be a blip.
So, what’s important to know?
Mortgage rates are now sub-2% in some cases. Money is essentially free.
Even with record unemployment, those who worked through the shutdown are either back in the office at least partially, or have pivoted to a work-from-home model, so people feel mostly secure.
Many are expecting to work and school from home in some capacity for the foreseeable future and need their living space to adapt with them.
The condo market is recalibrating with the most significant price adjustment to the smaller units in the downtown core. The rental market has softened, and between investors dumping units and many buyers needing more space, there’s more supply and just not the same demand.
