October 2020 Dear Friend,
October 2020 Dear Friend, A record month for the GTA! 11,083 homes sold in September, 42.3 % more than a year ago. As of the end of September, despite Covid, sales were up 1% compared to the same period last year. Proof of the desire for homeownership in Toronto! Here are two factors that brought many more buyers into the marketplace. The Canadian government gave out 53 billion dollars in aid to Canadians, while at the same time, Canadians lost 23 billion dollars in wages. That difference resulted in an 11% net disposable income for Canadians! It was spent on toys such as sea-doos, snowmobiles and boats; for others, it was used as an increased down payment for the home that they always wanted. Combined with record-low interest rates (1.6% as of today), Canadians who had been priced out of the market were now able to buy a piece of Canada, their home! While there seems to be a belief that Covid has made the downtown core undesirable and that condominiums have lost value, the reality is that condominiums in the 416 area code have gone since the beginning of the year up 7% and 8% in the 905 area code. Why? Many people want to live downtown where the action is! The second factor is that with such low interest rates, the difference between getting a mortgage at 1.8% and 3.5% is about $400 per month on a $480,000 mortgage! Rents may have dropped by $250 per month, but mortgage payments dropped by $400 per month! Investors and Ist time buyers are taking advantage of this opportunity. Trick question. Will the Pandemic end? Of course, it will! And then prices will explode even more than they have this year! In April, we didn't know how Covid would impact us. In October, we do. It’s a challenging time for all of us and hard on families, ultimately we will recover, and business and life will go back to a new normal. We all have changed and adjusted to today’s new reality! Today represents a great opportunity in the real estate market, whether to upgrade your home or buy an investment property. While domestic demand is high, new immigrants and foreign investors have largely been kept out of the market due to travel restrictions. Give me a call, let’s talk, let me put my expertise to work for you and your family’s future. Have a great October Your Friend in Real Estate. PS. If you know of someone thinking of buying or selling, please give me a call; I’m never too busy for your referrals!