What happened to Toronto's real estate market in the month of February 2020?
February was absolutely crazy. GTA’s sales were up by 45% compared to February 2019 and supply was down by 33% compared to February 2019. The combination of these two, the higher sales and lower supply pushed prices, average prices across the GTA by 16%, which is extremely high. Now for the city of Toronto, all prices were up between 10 and 18% for detached, semi-detached, town homes, and condos. And again, this is due to the lack of supply compared to the same time to the previous year of 2019.
There are three things to look out for moving forward:
One is the impact of the coronavirus on the psychology of the market. I believe some buyers might sit on the sideline, time will tell. So maybe instead of 20 offers, it might be 10 or 15. We'll see how that plays out.
The impact of the coronavirus on the global economy and how that trickles down to Canada, because if the global economy slows, that will definitely impact the Canadian economy.
And the third thing is with us getting into the meat and potatoes of the spring market will supply finally go up in March and April? I really do hope so because these double digit price appreciation is absolutely not sustainable and not good for the marketplace. Anything between 4 and 7% annual appreciation is very sustainable and good and healthy for the long term of the real estate market in Toronto, as well as the greater Toronto area.
If you have any questions about a specific pocket in the city of Toronto, or a niche market, such as duplexes, bungalows, condos, feel free to reach out and I'll be more than happy to share with you my insights.
Until next time happy investing!