Infamy is the only way I can think to explain the year 2020. We all started the year extremely excited because a new decade had arrived but boy did that joy end abruptly.
Our lives have been turned upside-down and socializing has been paralyzed but the housing market in Toronto has shown us its strength once again.
Here are some observations I made during 2020 working as a REALTOR® as well as the final market statistics from TRREB.
Social Distancing & Space
Torontonians are generally pretty social people. We like to get out. We love hanging out on patios with friends, doing brunch, or just gathering with each other at any one of the million things to do in the city. It's no surprise that when we were told we had to stay away from one another we began to identify space constraints within our homes.
The biggest thing I noticed this year was the demand for larger homes. It was condo owners mostly that identified that they didn't have enough space to ride out COVID-19. They sold condos and moved into homes.
The requirement to have space to work in was at the top of the list. The second most required feature was an outdoor space.
Investment Property & AirBNB
COVID-19 had a profound impact on investment condos and AirBNB properties. This added a lot of inventory to the condo market which subsequently hurt the condo market in certain downtown pockets.
Condo Market as a Whole
Initially, the condo market looked like it was about to take an extreme downturn but rock bottom mortgage rates enabled an entirely new segment of first-time home buyers to emerge. Condos took the hardest hit during the year and continue to dip at the time of writing this.
Condos in Toronto have dropped 7.2% since the spring market but have only dropped 3.3% since January 2020.
There is light at the end of the tunnel for condos as vaccination rollouts continue throughout the province.
Statistics from TRREB
The follow statistics are from the Toronto Regional Real Estate Board. The statistics are 2020 compared to 2019.
|2020 Average Sales Price||$991,000||+ 11.86%|
|2020 Total Sales||33,000||- 1.88%|
|2020 Average List Price||$1,070,000||- 1.02%|
|2020 Total Sales Volume||$32,300,000,000||+ 9.75%|
All-in-all 2020 was a year that many would love to forget. The one thing homeowners in Toronto can be thankful for is that even in the face of a pandemic our real estate market has shown resilience and strength.
I'm hoping for a much better 2021 and I can't help but think of those that have suffered due to this pandemic. I'm thinking about the ones that have lost loved ones, the ones that have lost their businesses, and the ones that have lost their livelihood. My heart is with everyone that has suffered due to COVID-19.
Let's hope the vaccination can help us all get back to our regular lives, asap.
Stay strong and stay safe friends.