Condominiums in the largest city in Canada now seem to be hit not only on sales, but also on prices on the COVID-19 market.
Not many condos are sold in Toronto, (sales fall 70% year-on-year in April), but those who seem to use lower prices.
In a study of condominium prices in April using data from the Toronto Regional Real Estate Council, online broker Zoocasa found the average price dropped by $ 65,000, or 10%, to $ 574,000 from February.
Depending on the environment, the decrease could be more.
Based on the environment with at least 10 sales in April, Zoocasa found the average price dropped by more than $ 100,000 in two neighborhoods, between $ 50,000 to $ 100,000 in four neighborhoods and up to $ 50,000 in 7 neighborhoods.
The center of Toronto received the biggest blow, with five neighborhoods in the district experiencing the biggest decline. Mount Pleasant East is at the top with condominium prices averaging $ 131,500 (-18%) to $ 617,500.
Only one neighborhood in the city, Milliken, Agincourt North, saw price increases. The average price here rose 7% or $ 34,500 to $ 506,500.
Emma Pace, Zoocasa’s agent in Toronto, said more buyers now see this as an opportunity to enter a market that could be cheaper.
But maybe not for long. Jelani Smith, another Toronto agent, said the Scarborough market is showing signs of life towards the end of April.
“Property that has been on the market for almost a month starts being sold relatively quickly, because the show has begun to increase. “In some cases, I have been involved in war deals similar to what we saw before COVID-19,” he said in the report.
One final housing nugget: About one in 10 Canadians believes that they will never own a house and will rent it forever, according to a poll by Finder. Nova Scotians (15%) most likely thought that they would rent forever, followed by residents of Manitoba (14%), Saskatchewan (13%) and Quebec (12%).
Have a long weekend and see you Tuesday when Posthaste returns after Victoria Holidays
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COVID-19 COME TO OILPATCH An aerial view of the Kearl Oil project and north of Fort McMurray, Alberta, where a virus outbreak that began in mid-April has grown to 107 cases this week. Cases linked to the site have been found in four provinces besides Alberta, and triggered an outbreak in northern Saskatchewan. The second new outbreak of five cases has now been identified on the Canadian Horizon Natural Resouces website, Dr. Deena Hinshaw, chief health officer of Alberta, Wednesday. Pandemics have struck when both sites are undergoing repair work which usually requires workers to fly and stay in remote camps. Ryan Jackson / Edmonton / Postmedia Journal
- Conservative leader Andrew Scheer will hold a press conference to discuss the government’s response to COVID-19
- Today’s data: Canadian international securities transactions, existing Canadian home sales, U.S. retail sales, University of Michigan consumer sentiment index
- Important income: Onex, Power Corp, REIT Canada Apartment Properties, Choral Flights
So how bad is our debt problem? The ratio of Canadian household debt to gross domestic product is among the highest for developed economies and non-financial business debt is far above its historical average, according to the Bank of Canada Financial System Review released yesterday. What’s scary about this reading is that it doesn’t even include the impact of what could be the worst economic crisis in generations.
The World Bank included this snippet of debt distribution until the end of 2019 in its review on Thursday because what it could tell us about how the loss of income caused by the COVID-19 crisis would affect the financial and economic system. The share of new housing mortgages with a ratio of loans to income above 450% increased in 2019 to almost 16%. The bank also said there was a large amount of “risky debt” among businesses with few liquid assets and poor capacity to service debt, most of them in the commodity sector. Government debt has also increased since the financial crisis more than a decade ago, but is far below the average for developed countries, the Bank said.
A financial plan can help guide your money decisions, whether that means paying off student loans, saving for home, or investing in RESP for children’s education. The Postmedia Content Works team helps you get started with eight things you should consider when building a personalized financial plan here
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