A Remarkable Recovery for the Housing Market - July 30, 2020

A Remarkable Recovery for the Housing Market

For months now, the vast majority of Canadians have been asking the same question: When will the economy turn around? Many experts have been saying that the housing marketing will lead the way to recovery, and today we are seeing signs of that coming to light. With record-low mortgage rates driving high demand from potential buyers, homes are being purchased at an accelerating pace, and it’s keeping the housing market and the economy moving.

As one example,home sales recorded over Canadian MLS® Systems in June 2020 rebounded by a further 63%, returning them to normal levels for the month – some 150% above where they were in April. Also, recent indicators suggest that housing has fully recovered from a slump earlier this year. This recovery is facilitated by falling mortgage rates and some job gains.
 


Here’s a look at what a few of the experts have to say about today’s astonishing recovery. Given where things where at a few months ago, this is remarkable.

Shaun Cathcart, Canadian Real Estate Association’s Senior Economist
“The market has recovered much faster than many would have thought...daily tracking suggests that July, at least, will be even stronger.”

Lauren O'Neil, Real Estate Reporter
“Home sales are surging in Toronto once again this summer after a brief yet steep drop due to COVID-19, and prices are following suit despite holding steady (if not increasing in most parts of the city) amid the pandemic.”

James Knightley, Chief International Economist, ING
“At face value this is remarkable given the scale of joblessness in the economy and the ongoing uncertainty relating to the path of Covid-19…The outlook for housing transactions, construction activity and employment in the sector is looking much better than what looked possible just a couple of months ago.”

Gregory Klump, Chief Economist Canadian Real Estate Association
“Home sales activity and prices are improving after having weakened significantly in a number of housing markets.”

Bottom Line

The strength of the market is a bright spark in the economy and leading the way to what is truly being called a remarkable recovery throughout most of the country. If you’re thinking about buying or selling a home, maybe this is your year to make a move after all.  Give me a call at 416-522-1112 and we can discuss your options. 

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