Prices did not fall in September, but there were signs of a slowdown even before the second wave lockdown
The second wave of the COVID-19 pandemic will likely bring Toronto real estate transactions to a screeching halt.
As the province brings in “modified” lockdown measures to Toronto, Peel and Ottawa, Ontario Real Estate Association (OREA) and the Toronto Regional Real Estate Board (TRREB) are calling on realtors to scrap open houses.
TRREB president Lisa Patel said in a statement on Friday that real estate agents should go virtual. She outlined instructions to follow health and safety best practices while conducting showings to pre-qualified clients.
The second wave of the pandemic will cap the Toronto real estate market’s scorching hot summer season. The average home price hit another all-time high coming in at $960,772 for the Greater Toronto Area, according to TRREB. The average price was $1,022,051 for the city.
While the average price is up, there were signs of cooling in the Toronto real estate market in September.
Prices for semi-detached and detached homes in the city have been taking a dip since June and July, respectively. The average price for a detached house in the city of Toronto in September was $1,487,122. That’s down 3.5 per cent from July’s average at $1,541,003. The average price for a semi-detached in September was $1,166,226, down nine per cent since June’s average, $1,287,832.
The average price for a Toronto home was pulled up by townhouses and condos. Prices for all home types were up in the 905.
Bloomberg News reports that condos in the downtown area flooding the Toronto real estate market. Citing TRREB figures and data from research firm Urbanation, they report a 215 per cent listings increase, year-over-year.
According to TRREB, there were 4,783 new condo listings added to the Toronto market in September, but only 1,549 sales. The downtown area alone had 1474 new listings.
The trend will likely get worse during the second wave of the pandemic, which will dramatically limit transactions. COVID-19 exacerbated a growing trend, with rental listings outstripping transactions. The downward pressure on rentals could drag down sale prices.
Dwindling condo sales could potentially trigger a market correction.
According to Swiss investment bank UBS, the over-priced Toronto real estate market is sitting on a bubble and due for a correction.