Greater Toronto Real Estate Market Update June 2020.:
The most popular question any Realtor hears and everyone loves to know is how is the market?
After several months of uncertainty things are finally starting to return to some normalcy regarding the Toronto Real Estate market.
We are now approaching mid June. And in the past three weeks we have seen in person showings increase by 95% which is amazing.
Right now there is of course a lack of inventory still.
And since I am always stressing how supply and demand dictate the Toronto Real Estate market, the substantial increase in demand along with the continued lack of inventory, actually drove the average prices of Toronto Real Estate up 3% last month compared to the same time in 2019.
I have several clients who are ready to move just before COVID-19 hit.
And in March and April when I spoke with them on the phone they all said they were waiting to see what happens because they anticipated the Pandemic might cause the Toronto Real Estate market to decrease or as one person said possibly even crash.
The problem with that theory (I told them) is that we are not in a balanced market. In a balanced market where supply & demand are equal, if the economy does slow down OR employment rates change then the real estate market can go down.
But in Toronto and surrounding suburbs where DEMAND far exceeds SUPPLY our Real Estate market isn’t going down.
At least it doesn’t appear to be going down anytime soon, nor does there appear to be the market drivers that would normally force a market to decline.
In fact, with people having spent so much time together and now wanting or needing more space (or possibly different space) for their family, that is only INCREASING the demand which is actually starting to drive prices up.
In-person home tours using the appropriate Covid19 preventative measures in place, are now increasing as more restrictions are lifted and home buyers are more confident and excited to look at new homes.
So in the short term it looks as if that will increase our local demand, or at the very least keep the current level of demand consistent.
And once borders reopen the continual immigration will add to increased demand which a gain will drive prices up.