Looks like it will take more than a pandemic to slow down the Greater Toronto Real Estate Market. The Toronto Real Estate Board reported another record-breaking month in sales for November for the GTA.
The strongest market segment was the 905, the suburbs. This is a big change from past sales reports where typically the "city" 416 was always a stronger market. According to TREB, sales in the 905 where up 30% in the singe detached home group and prices where up by 15% to an average of $1.1 million.
The latest sales data represents a significant change in consumer behaviour. As we know due to the pandemic, people are leaning the city looking for more space and historical low interest rates are helping them do just that. As per the report, much of the strength in the 905 can be attributed to the demand for single detached homes, townhomes and new subdivisions.
The biggest segment to suffer in November where the downtown condos. There were almost twice the amount of condos on the market for sale this November compared to last November. In addition, condo sales where down 3%. Evidence that condo dwellers are leaving the city for the 905 and suburbs.
So what happens to the real estate market and this change in consumer behaviour when the world is back to normal, and what will our new normal look like?
With the recent announcement of vaccine coming to Canada, eventually, I suspect offices will open up again and begin operations. Tech giants like Facebook and Microsoft are offering employees the opportunity to work remotely forever, but, not all companies can operate that way.
If your downtown office is up and running you could be required to be back in the office if not full time then maybe 2-3 days a week. The commute from outside the city could then become an issue again.
We don’t know what a post pandemic real estate market will look like but, there could be a return to the downtown condo again. My advice to anyone who is contemplating selling their downtown units , hold off , if you can. Before you sell it all and move to the suburbs, take a moment, things maybe look very different for you in 2021.
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