Our short-term forecast for the Toronto real estate market
If COVID has taught us anything, it is that predicting the future is a fool’s errand. This is especially true for the real estate market, which is difficult to predict even at the best of times. With that said, let me give it a shot. Here’s our short-term (three month) forecast on the Toronto real estate market.
A Drop of transactions: Cold weather, rising COVID cases, and a tumultuous U.S. election are likely going to slow the market down until the end of January. After a very busy few months, buyers are getting fatigued and are not wanting to risk their health to go look at homes.
Higher than the usual number of listings: While we may see a drop in transactions, it is possible that we will still see a higher number of listings than we have seen at this time in other years. This will likely be driven by sellers re-evaluating their living spaces because of COVID and wanting to cash in on a strong market. A higher number of listings coupled with fewer transactions could cause some mild panic among people who watch the market. However, this brings me to point number three:
Prices will remain steady. I don’t expect to see the same massive price increases that we saw in August and September. With that said, I also don’t expect to see prices dropping. Rather, we will maintain steady values. All but the most desperate sellers will be able to hold out for the market value of their home or take their homes off the market and wait for the buyers to come back.
The rental market will continue to impact condos: The condo market is flooded with new listings because the rental market has been hit hard by the pandemic. Until we can get immigration and foreign students back into Toronto, the condo market will continue to be, on the whole, a buyer’s market.
What will happen in February 2021? It is anyone’s guess. That will depend on unemployment numbers, consumer confidence, interest rates, and COVID numbers. Given the strength of the market during 2020, we are optimistic about the future of the Toronto real estate market.
If you are thinking of buying or selling in the next year but are worried about how COVID may impact you, give us a call and we’d be happy to advise you.
The Kim Kehoe Team