Hello and welcome to the Danielle in the City. I am Danielle Demerino, a Toronto real estate agent, and I am here to give you the rundown on what is going on in our market based on the Toronto Real Estate Board’s most recent statistics. So here is the skinny from your favourite Toronto realtor!
As you may have guessed (surprise, surprise), houses have gone up again in value. We’re talking about all sorts of houses in this category. The average price of a home in the city of Toronto was $991,000 in September 2020. Up 13% for the same time last year and up 3% from last month, where the average was $958,000. Now why you ask, well, perhaps not everybody likes listening to their partner chew in 600 square feet and not everybody has an affinity for the sound of their neighbour’s dog barking all night long. So people are moving out of their downtown core homes and condos. Which leads us to the hot topic, condos.
Believe it or not, in February 2020, the average price of a condo in Toronto was $722,000. As of September, we are sitting at 10% less than that in February at $649,800. Right now, that’s a problem for a lot of people that bought a condo last year or now who have to sell because they’re out of a job and things have changed for them. Something to note, once this pandemic goes away and once things regain normalcy and stabilize, things will go back to normal. Immigration will pick up again, the remaining inventory that’s on the market right now (which is actually five months of inventory, meaning that if nothing else were to come up the on the market it would take five months to sell whatever is currently available) will sell!
Though our government has changed the laws that are governing the Airbnb’s (for example you have to pay 4% tax and register your property) at the moment, they will become incredibly popular again and you heard it here, there is going to be a condo interest resurgence. That 10% value that has been lost, will be found again and eventually, prices of condos will go up and up!
Which brings me to our last topic, condo rentals. The condo rental market is a little bit tough right now for landlords. There are approximately 6,500 rentals in the downtown core of available to rent. In a nutshell, landlords are scrambling. Units are renting at about 10 to 15% less than they were last year at this time. My advice, hang in there. People are still renting and your property is going to regain its value.
I hope that helps you understand what is going on in the market. If you need me, please give me a call or feel free to text me at 416-728-5401.