July was the biggest sales month of 2020 but also the biggest sales month ever for a July according to TRREB. This is the Spring market coming late. We also expect August numbers to be strong, with a slow down coming in October. Everyone that was on a standby is catching up with theirs purchases and sales. That’s why we see home prices staying strong and experiencing bidding wars. Not unusual to get Over Asking now. July of 2020 saw a 44% increase in sales of detached homes over July of last year. For detached houses, the sales-to-new listings ratio is 67% and definitely a ‘sellers’ market’. However, ‘active’ listings for detached houses are lower than ‘new’ listings which means that the market availability for houses is shrinking and that prices will continue to increase. One of the primary reasons that low rise has been so popular is that people want a backyard. Increase in process for cottages, activity in countryside (farm lands) and suburban housing went up. The new trend of summer 2020- people are moving out of the city.
If your investment is caught up in condo units, and your condo doesn’t have a balcony- sell it! Better to reinvest the money in a new pre-construction. You can cash on the units you have now and use the money to put a down payment fir couple other units. In five years, the market will fully bounced back and your new units will value fortune.
The good news for Landlords is we see an uptick in the market for September 1st leases. The Government is now allowing International students to come to Canada. To register for a school like the University of Toronto, even if some or all classes are online, you must reside in the Toronto area. The rental prices declined. 12000 units were leased, ether are still 6400 units available. Also, there is no market for furnished suites, get rid of the furniture!