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But then he woke up again. And I woke up, it did.
This summer was, by all accounts, the busiest summer on record. The average price of a home in Toronto is now closer than it has ever been to $ 1,000,000.
Yes, $ 1,000,000.
And it’s in the midst of a global pandemic with credible fears of a second wave to come.
And an exodus from the suburbs and the countryside of Toronto which pushes the outside markets to record levels.
Maybe it’s the pent-up demand for the spring market that never came, or maybe the fact that most people aren’t traveling this year, or maybe even the five months of social distancing that probably have changed our outlook on our life situations.
And it’s not that people are oblivious to the potential economic fallout from COVID-19 – rather, it’s that buyers seem confident that Toronto is a wise investment. Either way, in the medium to long term, even a 2008-style crash is really going to be a failure.
So, what is important to know?
Mortgage rates are now below 2% in some cases. The money is basically free.
Even with record unemployment, those who worked during the shutdown have either returned at least partially to the office or have shifted to a work-from-home model, so people generally feel safe.
Many expect to work and go to school from home for the foreseeable future and need their living space to accommodate them.
The condominium market is recalibrating with the largest price adjustment for small downtown units. The rental market has softened, and between investors unloading units and many buyers needing more space, there is more supply and not the same demand.