Market Update June 26

  • Statistics overall is moving in the right direction
  • Appointments, listings, sales, back to pre-pandemic levels
  • Increase in exclusive listings which could mean that people are getting ready to put their property on the market
  • Missing the spike in stats that would normally happen in March, but it appears that “summer is our new spring”
  • Our office listings are at the same level this period as last year
  • TREB inventory levels are down 53% from this period last year
  • Our sales are 15% off from the same time last year
  • TREB Sales from May 2019 compared with May 2020 are down 54%
  • Our office is trending above the market in terms of sales
  • Altus has 498 projects that have been delayed by pandemic – will impact shortage of supply
Immigration
  • Federal Government was planning on letting in 341,000 new immigrants
  • RBC predicts that number will fall to 170,000
  • Financial Post article - Chinese do not feel that USA and Canada handled the pandemic crisis properly
  • Tridel had over 70% of the people putting down deposits on new developments coming from Asia
  • USA expanded their ban on green cards
  • Canadian brain drain could be reduced due to the USA immigration restrictions
  • CRA – looking at new ways to recover money the government spent, may increase audits in the real estate sector, capital gains (cottages, investment properties, secondary homes)
Ryerson Report – Toronto Fastest Growing City
  • Pre pandemic, Toronto was the fastest growing city in North America.
  • We overtook Dallas Fort Worth which was number 1 last year
  • 3 times more growth from immigrants relative to New York
  • We gained as much population as New York lost
  • Click here for the Ryerson report
OREA Study – Home Buyers Virtual Reality
  • 4 out of 10 home buyers are open to purchasing a home virtually
  • 1/3 would not purchase a home virtually
  • Home buyers’ expectations have changes
    • 28% of buyers want larger home
    • 25% of buyers want more outdoor space
    • 8% of buyers want a smaller home
    • 5% of buyers more practical location
  • Click here for the OREA study
Robert Hogue Senior Economist with RBC
  • The worst is now behind us.
  • Things are starting to turn around with the economy opening
  • Employment starting to pick up
  • He predicts that by 2021 unemployment rate will return to 7%
  • He also predicts that there will be a price correction of 5-10%, different based on geographical location
Deloitte Economist:
  • Most essential services are doing well, home and car sales are on the rise
  • Business to business sector is holding up well
  • Business to consumer sector is the hardest hit
 Benjamin Tal CIBC Economist
  • Amount of money people are receiving from the government is more than the amount of lost income
  • 15% of mortgages are still deferred
  • Most credit borrowers have good credit and we should not see a wave of defaults
  • Immigration, could lose 500,000 people due to the pandemic, impact felt in international student market
  • Most likely will not lose talented workers to the US brain drain
  • Hong Kong factor: 300,000+ expats living in Hong Kong, they will move their money and then return