The real estate market has demonstrated a remarkable level of resilience during the pandemic. After a brief dip in sales activity in March, which was caused by the initial shock from the quarantine restrictions, the market rebounded. According to the Toronto Real Estate Board, residential sales were up 40% for August 2020 over August 2019. However, the growth in the GTA housing market has not been equal. Sales and price growth in low-rise housing (townhouse, detached, semi-detached) far outstripped condo apartments. TRREB’s Chief Market Analyst Jason Mercer reported that prices in the Toronto condo market have been experiencing a slower pace of growth.There are several factors that have caused this activity in the market, including employees pivoting to working remotely, the need for more space, and the fear of having to share an elevator during a pandemic. The immigration restrictions have also wreaked havoc with the rental market, as most of the tenant market includes new-comers to the country, who have no choice but to rent until they show enough credit in the country to qualify for a mortgage. This has created a window of opportunity for investors to add a condo apartment in downtown Toronto to their portfolio. If you are considering purchasing a condo in downtown Toronto, now is the time to do so. Once the economy is firing on all cylinders again, the Toronto condo market will undoubtedly rebound, leading to heightened demand and bidding wars.
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