November Market Update
Friday Dec 04th, 2020
Hi everyone I hope this post finds you well during these difficult times. I think now more than ever we need to support one another, be understanding, compassionate, and kind towards those we meet; even strangers. We have to remind ourselves that we are all in this together, and only together will we get through to the other side.
I just wanted to give everyone an update to the real estate market!
The second quarter of Canada's real GDP shrank just over - 38% which reflects the initial lockdown for Covid-19. Third quarter GDP grew 40.5% as lockdown measures were lifted, and there was pent up demand over the summer months. This is a historic record for GDP growth in a quarter, as the previous record was 13.2% in the first quarter of 1961.
Fueling a portion of the GDP surge was residential investment (+187.3%) which red hot over the 3rd quarter due to various reasons such as low interest rates, and pandemic-induced shift in preferences. Going into the 4th quarter GDP was weakening due to the 2nd wave of Covid-19, and the imminent closures to follow so has the housing market trended in the same direction?
I don’t think the answer is so black and white, but the short answer is no. The record pace of home sales continued with 8,766 sales reported in November in the GTA as reported by the Toronto Regional Real Estate Boards MLS system. This was a 24.3% increase year over year from November 2019.
Home buyers took advantage of extremely low borrowing costs, and competition between buyers for family homes have continued to fuel growth. The average selling price for all home types combined was up by 13.3% to $955,615.
Condominium buyers have benefited from a lot more supply, especially in the city of Toronto. Listings were almost double in November compared to last year in November. We do have to keep in mind that the dip in demand for condos may not last very long after Covid.
With all that being said sales have slowed a bit compared to the summer months which is expected with seasonality. It’s hard to say what the new year will bring with so many things up in the air. There's a constant balancing act with the economy and lives, and without question the economy has been stuttering a bit during the second wave.
Let’s keep in touch so I can continue to give some insight on this crazy market we call real estate!