The point is: there are more programs in place to help people get through this.īefore Covid-19, the biggest issue with the Toronto real estate market was that supply couldn’t meet demand. We’ve seen that with Air Canada, where they were able to rehire a lot of employees. A lot of companies are taking advantage of the 75 per cent top-up. Where we may see some differences here compared to a traditional recession is the way the federal government has acted quickly to account for some of the lost wages. That’s just another factor that depends on duration. I like your sunny outlook, but what about all the consumers who go several weeks or months without earning an income?Ĭertainly, a lot of households are going to feel the pinch from an income perspective. It’s just a matter of when that recovery will start. The recovery for this will likely be quite fast. At the moment, health is the major concern, but once we get on the other side of this, consumers are going to want to dip into the marketplace again, whether that’s going out to restaurants, shopping or resuming their search for a home. #TREBS MEANING DRIVER#If you look at the greatest driver of economic growth in Canada, it’s the consumer sector. Last Friday, when the premier gave us the predictions on health outlook, there was a considerable range: between 3,000 and 15,000 deaths, depending on how successfully we self-isolate. There was a piece in the Globe recently, based on research out of Simon Fraser University, which laid out some predictions. I’m looking at the health-related forecasts, specifically those that look at how long we’ll be social distancing. In the meantime, which market indicators are you keeping an eye on? When we’re midway through April, we’ll be able to provide a more accurate forecast. We’re only a couple of weeks into the period of enforced social distancing, so we need a little more time to evaluate what’s happening. Then, in mid-March, when serious measures were taken across Ontario to prevent the spread of Covid-19, we saw a major shift in market activity. We were well on the way to that sales figure, if not higher. That’s for all home types including condos. That prediction came out on February 6, so that’s what we forecasted then, along with $900,000 for the average price in GTA, Halton, Peel, Toronto, Durham and some of the smaller municipalities. Is it safe to assume that you’d like to amend that estimate? That’s what we saw in early March.Ī month ago, TREB issued a r eport predicting 97,000 sales in 2020. After that, you get a return to the marketplace in fairly strong numbers. So for the better part of two years, we saw a dip in sales as a result, which is often the case when government policy targets a certain sector of the economy. That was followed by the new OSFI mortgage stress test rules in 2018, which made it more difficult to borrow. Then, in the first quarter of 2017, the Fair Housing Plan came into effect, which included a 15 per cent non-resident tax and expanded rent control. For historical context, the Toronto market peaked in 2016 with a record 113,000 sales. For the first half of March 2020, sales were up 46 per cent over March 2019. Those factors typically lead to an acceleration in price. The market had tightened, meaning increased competition among buyers and a high volume of listings resulting in sales. Right into March, we saw a continuation of 2019, when a lot of buyers who had previously moved to the sidelines were starting to purchase homes. We spoke to Jason Mercer, TREB’s senior market analyst, about how Covid-19 killed a red-hot market and why there’s reason for cautious optimism.Ĭould you summarize the Toronto real estate market before the Covid-19 pandemic? As Covid-19 keeps locals on lockdown and nearly halts the economy, most people are wondering how significantly the virus impacted the real estate landscape. Earlier this week, the Toronto Real Estate Board released its market report for March 2020, which includes information about property transactions in the GTA. MHRA 'HT-TREBS', All Acronyms, 1 November 2022, Bluebook All Acronyms, HT-TREBS (Nov. HT-TREBS, All Acronyms, viewed November 1, 2022, MLA All Acronyms. Retrieved November 1, 2022, from Chicago All Acronyms. Facebook Twitter Linkedin Quote Copy APA All Acronyms.
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