In Toronto: Condo sales fall to their lowest rates since the Great Recession but house price activity is returning to pre-pandemic highs.
Elsewhere: The CMHC issues a warning on wealth inequality, Google extends WFH well into 2021, and Europe's housing market shows signs of life.
Toronto’s frothy housing market seeing ‘bonkers’ price activity (The Globe and Mail)
Mr. Macdonald says rapid price gains in the first three months of the year reminded him very much of the euphoria that suffused the market in early 2017. The market abruptly seized up in March as government and health officials asked people to stay home in an effort to halt the spread of the novel coronavirus.
New condo sales drop by 85% — but GTA prices hit record high (Toronto Star)
“New condo sales dropped 85 per cent year-over-year as only six projects and 1,176 units were launched for presale during the quarter, which compares to 40 projects and 11,415 units launched in Q2-2019,” the firm said in a news release Monday.
David Fleming, broker at Toronto Realty Group, says he typically sells around ten condos a year to investors. “I have not sold a condo to an investor since pre-COVID, the phone just stopped ringing,” said Fleming last week during the virtual Toronto Real Estate Summit, hosted by Realosophy Realty.
The council voted 22-2 to fight the bill known as Protecting Tenants and Strengthening Community Housing Act, which housing advocates say would weaken tenants’ rights after the pandemic and make it easier to evict them. In his motion, Councillor Gord Perks stated that the amendments in the act are “contrary to rules of procedural fairness and natural justice.”
For now, a recent study by Wallethub considered the options for renters in this period of “pandemic pricing,” with lower rents attracting new customers in a volatile market. The study weighed the pros and cons of hundreds of rental markets across the country, including the 150 largest U.S. cities along with other highly populated areas for a total of more than 180 rental markets covering every state.
“Even though the nature of this crisis is completely different to the 2008 one . . . of course housing transactions and the demand for mortgages declined a lot when the coronavirus hit — especially during the confinement, when people could not see homes or get a mortgage,” said Pablo Hernández de Cos, governor of the Spanish central bank.
July 31, 2020This Week In Real Estate |