May 21, 2024

The Queens County Citizen

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The prices of homes in Toronto raised by 13.5% in 2020 with an average $930,000

There has been a record rise in the prices of Toronto homes in 2020. It’s due to the covid-19 pandemic that increased the demand for big houses and also the low rates have made it easy for individuals to afford them. According to the statement of Toronto Regional Real Estate Board, the average price of Toronto home hit the record $930,000 in 2020 and has shown a rise of 13.5% compared to last year.

The buying trend was followed by an increase in the need for the ground-level houses in suburbs that offset the demand for condominiums in the core city, as said by the board.

The home prices across the developed countries also increased due to the pandemic. It’s because of the low borrowing rates that has raised the budgets of real estate buyers. A bank in Canada was offering the lowest mortgage rate of less than 1% in 2020. Such a low mortgage rate was offered the first time by a Canadian bank.

The anticipation of new property taxes on vacant houses in Toronto and proceedings regarding a likely bubble have not affected the soar of bidding wars. Indeed, the Toronto housing market gained speed. As per the data of Toronto Regional Real Estate Board, there has been a decline in transactions from Sep-20 to Nov-20, but the transactions jumped to 11,264 in December,2020 that accounted for 22% upsurge. That was the topmost monthly total as per the record of board data.

In 2020, the sales exceeded 95,000 showing an increase of 8.4% from 2019, which is the 3rd highest number of sales. Get top-quality replacement windows (for more info check if you are interested in buying a new home.

In December 2020, the average selling price of houses in Toronto was $932,000, which is 11% more than the price in December, 2019.

As already stated, the home prices in Metro Toronto have significantly accelerated in the last few months that has affected the potential house buyers. Meanwhile, the value of condos has decreased. But that trend will not persist for long as condos are generally the foremost choice of first-time property buyers. If condos are the prime source of home buyers’ down payment, then home prices will be ultimately reduced. Property buyers must rely on a trustworthy Canadian windows and doors company, which has the highest rating  of Vancouver replacement windows.

Individuals intending to sell their house will get a good selling price if they sell their property during pandemic. Given the second wave of corona infections and the existing recession, the sellers will be willing to sell their property at all-time highs.

The negative economic impact is still growing, and there’s no surety that house prices will keep up current values for the next 2 years. Usually, house prices decline during an economic recession. Now, the Covid-19 pandemic, the emerging recession, and the possibility for a 3rd wave of corona infection are the prime source of ambiguity for house values.

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