Covid-19 and the Toronto condo market
Covid-19 has played the devil with our city. in every way possible. Like every other resident of Toronto, my main concern is the well being of our fellow humans. This is a pandemic, and we all have to take it very seriously. However, as a citizen of this great city, I have a service to provide my fellow citizens. The service I provide, is insight and knowledge about the Toronto core condo market. This is what I do, day in and day out, and Covid-19 is not going to stop me. The city is in a lockdown, however, the real estate market is still moving. On March 24th, Premier Doug Ford declared real estate as an essential service. Therefore, lawyers, bankers, underwriters, appraisers, movers and the land registry system are going to be operational. The people in Toronto are certainly practising social distance, as the streets this past weekend were empty.
King and Simcoe
Empty streets, closed restaurants and bars were what Toronto was all about on March 21st, 2020.
I wanted to compare the activity during the period of March 15th to March 24th, during these times to last year. As I kept a close eye on the activity of listings in Toronto C01 district of Toronto, I was notified of quite a few multiple offers. I also, was noticing that the leasing market had quite a few listings coming on to the market. Part of this activity was due to some excess inventory coming onto the market, with some corporate short-term stay companies giving up their units. This segment of the Toronto condo leasing market, will certainly see a short-term fluctuation in inventory and average lease rates. But, what were the numbers compared to 2019? Here they are…
CONDO SALES 2019 vs 2020
During the period of March 15 to March 24 in 2019 compared to 2020, there different in sales was negligible. There were 55 sales in 2019, compared to 56 is 2020.
AVERAGE CONDO PRICES BY SIZE
Investors will always look at average prices, and year to year change. 2020 had started with increased demand for Toronto condos, and decreased inventory. Most condos in the price range under $650,000 were under listed, and listing agents were holding back offers to facilitate multiple offers for condos. Although, its early days to see the impact Covid-19 will have on the condo market, the average price increased from $703,422 to $797,189 from year to year. When comparing the average sales price, by condo configuration of bedrooms, the differences are very interesting. Studios have been flat at around the $435,000 mark. The largest increase in percentages was for one bedroom condos. An average one bedroom in the C01 district during this period, was $583,425. This number increased to close fo $700,000. Significant increase in the 2 bedrooms condos as well, from $927,437 to $1,079,952.
March 15th-25th - 2019 vs 2020 Leasing Analysis
When comparing lease rates, it is imperative to compare condo configurations separately. Again, as I mentioned earlier, the effects of Covid-19 have not been significant yet. Baring the 3 bedroom condos, the average lease rates for studios, one beds and two beds hardly had any fluctuation.
With the city of Toronto in lockdown from March 24th onwards, there will certainly be less activity in the market. The lockdown has been announced for two weeks for now. We will have to wait and see, how the next week plays out. Condos were still entertaining multiple offers, as I am completing this blog. We will be impacted for sure, with this lockdown, however, it’s the length of the lockdown that will dictate the real effects of Covid-19. Once the malls, restaurants, cafes, bars and other entertainment segments are opened, the market will bounce back. One thing about real estate will never change; people need a place to live. Some buy a place to live and some will rent. In the end, we all need shelter. I am hoping the residents of Toronto and GTA help each other in flattening the curve for us, to back to the normality of living in this great city of Toronto.
I AM AVAILABLE - JUST NOT IN PERSON
If you would like to discuss your current investment condo, your current lease or your future real estate investment plans. I am here for you! As part of our social distancing, I am available via ZOOM, Skype or just a plain old phone call. Please feel free to reach out to me, or schedule a time to meet online.
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