Bosley Real Estate Market Insight - July 31st, 2020 - Bosley Real Estate Ltd. Brokerage - Homes and houses for sale in Toronto including Cabbagetown, The Annex, Danforth Village, Lawrence Park and Riverdale

Bosley Real Estate Market Insight - July 31st, 2020

31 July 2020
Bosley Real Estate

Toronto new condo sales fell to their lowest level as developers stopped launching projects when Covid shuttered the economy and slowed home building. There were only 1,385 new condo sales in April, May and June, the weakest activity since 2009 when the U.S. housing market crashed. Sales were down 85% compared to the same period last year according to Urbanation, an industry group which tracks condo building trends. Over the second quarter, six projects totalling 1,176 units were launched, down substantially from the same period last year when 40 projects totalling 11,415 units launched. Condo investors who make up nearly 40% of condo owners in Toronto are staying away from preconstruction condos in Toronto at the moment, given the price per square foot and the softening rental market. The investment strategy of covering mortgage payments with rental income or expecting prices to climb is what’s holding back investors. The pandemic has slowed migration to the city, dried up tourism and coupled with new condo listings and Airbnb units turning into long term rental apartments, it has pushed rental vacancies slightly higher and rental prices down. Currently in the downtown core there are 5,734 condo rental units available. Last week the residential sector did a complete reversal compared to the previous weeks with listings down 35%, but sales were up slightly by 5%. Homes selling at or above the list price are still at an astounding 63%. Like the freehold market, the condo sector is behaving in a similar manner. Listings were down slightly by 6% and sales were also down by 14%, last week. Of those recorded sales, 44% sold at or above the list price, a slightly higher percentage compared to previous weeks.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Port Hope and Cambridge Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.

Here Are The Top Five Trending Stories Of The Week:

Real estate optimism sparks new life into Canadian consumers

”Consumer sentiment in Canada showed renewed strength on an improving outlook for real estate and the economy, weekly telephone polling showed.”

The average cost of rent by neighbourhood in Toronto

“Toronto is well established as a costly city to live, but a new report has broken down exactly what it costs to live in the region’s neighbourhoods.”

Condos May Be On The Way Out, Statistics Canada Predicts

“Former Airbnb units are hitting the market at a time when buyers are looking further out of the city.”

Northern Ontario village sees surge in real estate sales

“The Village of Burk's Falls in the Almaguin Highlands is booming, enjoying a strong increase in both value and number of homes being sold.”

Equitable Bank says mortgage deferrals have plummeted from their peak

“Alternative lender Equitable Group Inc. says mortgage deferrals have declined significantly, as it aims to turn a potential debt “cliff” facing some borrowers into a more gradual “slope.”