The Toronto Regional Real Estate Board (TRREB) statistics for last month of 2020 showed continued momentum in the residential real estate market. It seems like some things thankfully never seem to change!
Lack of inventory for freehold houses combined with mortgage rates that can be secured for under 2% (who would have ever thought that?) ensures that sale prices continued their upward momentum that we have seen over the last few months.
What stood out in the December stats was that the number of condo sales increased by 75% over the November sales numbers.
This is a promising new trend because so far throughout the pandemic, condo sales and values have decreased with people seeking private, non-communal type of living spaces. Additionally, the rental market took a huge hit with less demand for condo leases.
Such a drastic increase in condo sales, we believe, is attributable to investors coming back into the condo market and scooping up smaller condos that have taken the biggest hit in terms of value.
It should be noted that this increased confidence in the condo market dovetails with the recent release of vaccines. This seems to have given investors confidence that “this too shall pass” and they are anticipating a return to a more normal economy and society in the coming months. So, we may very well have seen the bottom of the condo market.
Stay tuned for our 2021 residential real estate market forecast, it should prove to be an interesting and promising year ahead.
In the meantime, Stay Positive & Test Negative.