![]() In March of 2020, before the lockdown, interest rates for a 5 year fixed rate mortgage were around 2.24% (source Ratehub), in January of 2021, it’s 1.39%. Interest rates, however, have been at historic lows since the beginning of the pandemic which, in this case, is the main driver of housing prices in the GTA. The economy isn’t doing great as a number of industries have been forced to shut down and immigration has been practically non-existent. Typically GTA’s housing market is strong due to a number of factors: low-interest rates, a strong economy and immigration. Low interest rates – the key component to price increases in GTA’s housing market This formula equals an increase in prices over the next 30 days. Demand will continue to remain high while available inventory will remain low. Based on what I’ve been seeing over the last few months, a lot of people are a lot more relaxed this time around and I expect it to translate in the housing market. I believe that the second lockdown will have a different effect on the housing market. Many who had their property listed during that time had to take a bit of a lower price to sell their property due to a huge drop in demand, as is often the case when there is a large amount of uncertainty in the market. I’m sure you remember empty streets in downtown Toronto and across the globe and stay at home really meant stay at home. In March of 2020, when the first lockdown took place there was a short time period where the market turned in the buyer’s favour for most property types in the GTA. ![]() ![]() I do this for all my listings and during a lockdown, it’s an absolute must! What does it mean for Toronto’s housing market? Regardless of the price of your home, please don’t list without the following at the least (Shameless plug alert!)– Professional photography, virtual matterport tour and a VIDEO tour (not a picture slideshow) of the property along with snippets of the local neighbourhood attractions. If you are selling your property during the lockdown, please make sure that your real estate agent spends money to market your property. Sellers and buyers are asked not to proceed if any person has been exposed to a positive case in the last 14 days, have travelled in the last 14 days, or have any symptoms. This is a typical showing instruction: Must wear masks, gloves, sanitize prior to entry. If you decide to sell or buy a property during COVID-19, please prepare yourself that the process will be different than usual.
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