There has been a lot of speculation concerning the direction of the Real Estate market in Canada. The focus of discussion circles around the two main markets, Toronto and Vancouver.
Deputy chief economist for CIBC, Benjamin Tal recently said “the housing market will slow down,” as well as the economy. Tal is one of the few economists warning of an impending slowdown in the housing market. Along with Mr. Tal, Tony Stillo, Director of Economics for Canada at Oxford Economics believes there will be a “modest retreat in housing activity later this year and through mid-2021. This reflects historic loss of income, job insecurity, virus fear and uncertainty, stricter CMHC lending rules, an effective pause on immigration, an exodus out of high-density urban markets, low tourist and foreign student demand for Airbnbs, and end of mortgage deferrals by banks,”.
However, in spite of the gathering clouds, the Toronto market, especially the freehold segment, continues to flourish. How long will the fundamentals that underpin this unprecedented seller’s market continue? I’m afraid my crystal ball is a little cloudy. Toronto’s condo market is a concern showing signs of stress due to the negative impact from changes to Airbnb rules along with the negative impact of the pandemic.
On the other hand, Toronto’s market demonstrated resilience, defying the odds during the Great Recession of 2008 and now the economic downturn caused by this pandemic. Most pundits believe this period of stress on the Toronto Real Estate market will be short lived and that the fundamentals driving the market will continue once the pandemic is under control.
So, if you own an investment condo, you may be under considerable pressure right now. If so, don’t hesitate to reach out to us to discuss what options are available to you. We’re here to help. If you’re a house owner, it’s still a very strong Seller’s Market. If you’re considering selling, get in touch – we have the experience and expertise you need and our track record is 100%. We’ll get it sold at the highest price in the shortest time.
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