Now that fall is here the real estate market is sending us puzzling signs. The GTA benchmark house price has continued to rise; however, condo prices are beginning to drop, and the market is running into strong headwinds. Homebuyers were sidelined March through May, but in June through August, they jumped back into the market with both feet. House purchases in July and August were the highest ever for those months. Is the market settling into a 'new normal'?
Condominium prices, rents and sales have taken a substantial hit from COVID-19, much more so than other housing types, leading many to wonder if condos will recover from the pandemic. For the moment, the news isn’t good. For example, second-quarter condominium sales in the GTA were 51% lower than the year before, according to the Toronto Regional Real Estate Board (TRREB). New condo listings slipped by 22 % compared to the same quarter in 2019. Nevertheless, average condo prices modestly increased year over year, up 8.7% in August compared to the same time last year.
With the arrival of September, there is change in the air. The nights are cooler, and the air is fresher. Spring and summer, we have seen much upheaval in our lives as we attempted to adjust to the impact of the pandemic. And as we have discovered, we are resilient. We have discovered new ways to go forward, carry out our daily activities, do business and more. Our focus has changed, and our priorities have become more evident as the realities of Covid have become clearer. What we are living through is one for the history books. When we finally come to the end of the dark tunnel called Covid, there will be changes to our lifestyle in ways we never imagined, and the real estate market is changing too.