In only a few short months, the COVID-19 pandemic decimated the global economy and permanently altered our lives. When the world rang in a new decade, nobody could have envisioned a virus outbreak and the resulting “new normal” for consumers, businesses and governments for the years to come. Some experts forecast that it could take years before we return to any semblance of normalcy, whether in the way we interact with each other or how financial markets function.

Since the public health crisis has affected every facet of the economy worldwide, all eyes have been on the red-hot Canadian real estate market. Closer to home, buyers and owners alike are waiting to see if Toronto will finally witness a drop in condominium and house prices. While it’s difficult to project long-term trends, recent figures indicate real estate Toronto prices are far from crashing.

Did April Showers Bring May Flowers? 

In April, the economic fallout of COVID-19 and the many social distancing guidelines triggered a deep freeze in the Toronto regional real estate market. A month later, there was an unexpected rebound.

According to May figures released by the Toronto Regional Real Estate Board (TRREB), home prices in Toronto and across the GTA were up 3 per cent year-over-year, to $863,599. In the 416 area, detached houses climbed 2.7 per cent and condos picked up 1.8 per cent. However, fewer transactions are taking place, with 4,606 properties changing hands in May – a 53.7-per-cent decline year-over-year but up 55.2 per cent compared to April 2020.

Overall, the real estate market has held steady throughout the financial crisis. While transactions have slumped since the coronavirus pandemic crippled the Canadian economy, average prices have remained resilient.

Continue to read on: RE/MAX.ca