Previously sales and prices for detached homes, condos, and apartments were suspected of going down due to the pandemic outbreak. But it proved otherwise.
The year 2020 witnessed a massive surge in single-family homes compared to condos. The prices skyrocketed and the supply was low. However, the real estate board numbers didn’t show new or presale condos’ sales. There were buyers buying contracts for condos, and developers built them.
Recently, Michael Ferreira of Urban Analytics said that the real estate market didn’t see much from condo homes, though, “it’s pretty remarkable that we finished with as many sales as we did”.
Ferreira also marked a relatively promising hype in Q4 of 2020 when there were 3,800 presale condo sales. That’s an increase of around 53.33% compared to the same period last year, while a decrease of 7.31% compared with Q4 of 2018.
We’re just 300 less (sales) than what we saw in 2018,
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According to Ferreira, investors were sitting back and observing the real estate market:
Took their time to gauge what was going to happen as far as what they kept hearing. You know the predictions of prices dropping, the infamous (call by the Canada Mortgage and Housing Corp.) that there would be a nine-to-18 per cent drop in real estate values.
We are going to see the investor (buyer) come back into the market, but it’s a much more longer-view investor. It’s not the speculator that we were seeing in 2016 and 2017,
According to his research, the condo market expects an uplift in 2021, where there would be new condos with no increase in prices. That would be the time for real investors to show up and invest for longer periods.
The time would turn in investors’ favour when the travel restrictions are lifted and immigration resumes, he added.