Condos for sale in oakville ontario . Apartment sales soared by 75%! Apartments are the only type of housing in Toronto that has not seen a significant increase in sales and prices for most of 2020. In 2020, Toronto’s housing affordability became even lower in the face of the global health crisis.
Restrictions on travel and short-term rentals have reduced the number of tourists, immigrants and international students in the city, which has led to an increase in the supply of apartments and a sharp drop in rents and purchase prices.
Buyers who enter the market for investment purposes are trying to get out of trouble quickly in a year of financial instability. They bring a large number of small apartments, especially those suitable for Airbnbs, to market at a cheaper price than usual.
While high-rise buildings are built on Toronto’s iconic highway, there are fewer and fewer buyers. Large numbers of residents leave the city center for cheaper, more spacious suburbs because working from home has become the norm.
But by December 2020, the apartment market seems to have begun to recover.
According to the latest data from the Toronto Real Estate Bureau, house prices and sales hit record highs last month, with prices rising 13.5% to 929699 yuan, while transaction volume rose 64.5% to 7180 units.
What is most striking is the rebound in apartment sales. Experts have been advising buyers to enter the apartment market when prices are relatively low, and many buyers seem to follow this advice.
As Robert Hogue, senior economist at RBC Bank, points out, low apartment prices are now attracting more buyers, with apartment sales soaring in December.
Although the average price of apartments in the greater Toronto area rose only slightly in December from a year earlier, sales surged 75% from December 2019. That means buyers are going all out to find “cheap homes”-those that sell for only 500000. And they may be the lowest prices for some time.
Like other economists, Hogue believes the market will continue to heat up in 2021. Because, people’s affordability will slowly weaken with the increase of demand.
With the promotion of the COVID-19 vaccine, part of the situation will return to normal this year, and there will no longer be so many “low-cost houses” to choose from in Toronto’s real estate market.