The price of the properties in Toronto is showing a positive trend. After taking a hit during the pandemic, the home's sales have started to increase and even exceeding the initial expectations of many real estate experts.
For instance, home sales in August were 33.5% more than the sales in August 2019. It shows that the housing market in Toronto is soaring above the pre-pandemic levels.
The primary reason behind this massive increase is the pent-up demand from the lockdown due to the coronavirus outbreak. It is also quite evident that the majority of the demand is for detached homes, which shows that the pandemic is triggering people who want to leave downtown.
Compared to the other industries and other parts of the economy, it can be observed that the real estate industry has managed to get recovered quickly and efficiently.
The current statistics also indicate that the number of rental listings in Toronto is rapidly increasing. Similarly, a surge of about 18.5% was seen in the average home price in August. In September, CREA announced that the supply is outpacing the rising sales for the first time since the pandemic. Since home prices are now rapidly increasing, it means that people might be required to pay more down payments.
However, there are some concerns that how long will this trend last. According to experts, the government and people can expect this positive trend to last for the next few months. Eventually, the prices will not be surpassing the pre-pandemic conditions, but the real estate industry is highly expected to be on this similar path in the future.
There are a number of reasons why the properties in Toronto have managed to recover such as low borrowing costs and the combination of employment and income losses. The pandemic played a critical role in disrupting traditional seasonal patterns. As a result, most of the trends that real estate experienced in spring are now shifted to summer. With the exhaustion of pent-up demand, activity is slowly cooling down, but it does not mean that a large-scale decline will be experienced anytime soon.
Navigating these different trends can be quite challenging. If you are interested in buying a property in Toronto or Mississauga, you can get in touch with Sandeep Dwivedi of Realbiz Realty Brokerage Inc. to get more up-to-date information about the property conditions.