MARKET UPDATE FOR THE WEEK ENDING JUNE 26TH, 2020
The COVID-19 pan demic continues to put downward pressure on the rental market nationally. A growing supply of apartments, mostly in the condo sector are hitting the market as Covid has stalled immigration and sent university students andsome hourly workers home to live with their parents. In Toronto, rents declined .7% year-over-year. In downtown areas with concentrations of short-term rentals and neighbourhoods with large student populations, there has been an uptick in vacancies and rent incentives to try and fill units that have emptied out. Total lease transactions in the GTA condo market grew 16% year-over-year during Q1-2020 to reach 7,002 units — the highest first quarter total on record. The post-COVID-19 period saw a steep decline in activity, with lease volume down 25% compared to the same period a year earlier.
Of importance, rental supply did not experience the same degree of decline as leases, with new listings decreasing by a more modest 7% in the post-COVID-19 period from a year earlier. The relatively more stable level of new listings may be attributed to a rise in condo completions in the first quarter.
The chart below looks at the average rent for all property types by municipality in the GTA over the past 13 months.
MARKET UPDATE FOR THE WEEK ENDING JUNE 5TH, 2020
Home sales are showing signs of improvement in the Toronto real estate market, but economists say it’s far too early to feel optimistic about the possibility of recovery from the devastating effects of COVID-19. Activity in the region improved in May compared with April, according to figures the Toronto Regional Real Estate Board released Wednesday. But it remained less than half of what we saw a year ago. “The pandemic knocked the wind out of what was expected to be among the strongest spring seasons in home-sales history, said Sherry Cooper, chief economist at Dominion Lending.”
There were 4,606 sales in the Greater Toronto Area through the board’s MLS system in May. That’s down 53.7 per cent compared with a year earlier. However, sales in May were up 55.2 per cent compared with April. The number of new (more…)
MARKET UPDATE FOR THE WEEK ENDING MAY 22ND, 2020
As we navigate through these uncertain times, we are wondering what condo life will look like in the future. To illustrate how quickly the condo market changed as a result of COVID-19, resale activity was up 25% year-over-year during the first half of March 2020 and fell 21% year-over-year in the second half of the month, with even steeper annual declines of over 70% reported for April. However, the GTA market was exceptionally tight leading into the COVID-19 period, creating spillover demand that has enabled the limited number of units on the market to continue transacting. In fact, the (more…)