How Is Canadian Real Estate Fairing During Covid-19

Before COVID-19, Canada’s real estate market was positioned for great growth, Toronto in particular was gearing for a heated Spring Market. The city has experienced sudden halt in the real estate market, a situation that is not unique with widespread shutdown of activity locally and globally.

Toronto’s real estate has seen a 5.4% increase from 2018-2019 and was projected another 6% boost in 2020. This increase is the contributing factor in Toronto’s housing affordability issue. In 2019, the average residential price of Toronto real estate was $883,520.

Perhaps one of the biggest silver lining to be had from COVID-19 is the interest rates being the lowest they have been. The Bank of Canada has responded to the outbreak by cutting the interest rate for Canadians at 0.25% and announced the purchase of tens of billions of dollars worth of provincial bonds and corporate debt, to bolster Canada’s financial system.

As a result, prospective home buyers looking to get a mortgage can take advantage of borrowing at a decreased rate. With fixed term mortgage rates also on the decline, home buyers have the flexibility to borrow more and aim for a higher home price or get a better mortgage rate and have less expensive mortgage payments.

It's also important to note that technology has allowed the market to steady with virtual open houses and tours online. Realtors have also been equipped with pre-cautionary tools from disclosures and questionnaires during these unprecedented times. With that showings are still happening for active buyers despite low offer registration and new listings.

These are however not indicative of what the current market will be in the future. They will likely continue to change as the market and government continue to react to COVID-19.

For more information about Toronto’s real estate market visit www.penthousequeen.com.