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.
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.
Canadian Housing Market Trends
Leading indicators from RE/MAX brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the RE/MAX Fall Market Outlook Report, RE/MAX suggests that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.
Canadians equally split on their confidence in the housing market
Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell.
The classically hot spring market that was pushed to the summer months due to the COVID-19 pandemic created a surprisingly strong market across Canada and across all market segments. The pent-up demand and low inventory dynamic may keep prices steady and bolster activity for the remainder of 2020.
Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:
- 48% of Canadians would like to live closer to green spaces
- 48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
- 33% of Canadians would like more square footage in their home and have realized they need more space
- 44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
About the 2020 RE/MAX Fall Market Outlook Report
The 2020 RE/MAX Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.