The day-to-day uncertainty is challenging but we must focus on the number one priority, supporting our front-line workers while taking care of ourselves and each other by staying home.
Please check on your neighbours and support small businesses where you can.
Updates on pertinent programs and government initiatives:
An in-depth, covid-19 website
Bank of Canada has lowered its target for the overnight rate to 0.25% - this is a record low to offset shifting consumer confidence.
The Bank of Canada last cut rates to these levels in 2009, during the global financial crisis.
There is opportunity for mortgage, property tax, utility, GST & HST deferrals, although interest may accrue. Contact your lender or accountant for more information.
Good news - there is now relief for Canadian workers who have lost income.
Click here for more info on the Canadian Emergency Response Benefit (CERB) from the CRA.
The launch of the new Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits.
Repaying the balance of the loan on or before December 31, 2022 will result in potential loan forgiveness of 25% (up to $10,000).
Real estate services are still considered essential.
This is to ensure homeowners with pending closings, i.e., those who have already bought and need to sell, or those who have sold and have to buy etc., are able to transact.
Open houses were prohibited effective April 2020, then allowed in August 2020, then prohibited October 2020 again.
As I am already diligent with virtual transactions, I am now taking proactive measures to ensure compliance with social distancing requirements as well as wearing a mask, gloves and having sanitizing products readily available.
Overall, the real estate market is holding its ground throughout the crisis with The Toronto Regional Real Estate Board released sales figures reporting a record breaking summer!
Over a 40% increase from both August & September 2019
The average sales prices up 11-20%!
Average price of a Toronto detached home is $1.5M
The low-rise housing segments are fuelling this pent-up demand as we are spending more time in our homes than ever. Access to outdoor space and more square footage to work remotely are highly prioritized.
Eliminated office commutes and backyards more desirable than parks or gyms, changing the way we think about space and privacy.
Since recovery began in the Spring with Stage 2, paired with historically low borrowing costs, we’ve now entered the Fall market where home sales are stronger than pre pandemic as a result of this meaningful lifestyle trend that is here to stay.
Rental prices have definitely been impacted with no events, limited travel, and back to school virtually. With razor thin Toronto margins and currently more vacancies, a lot of rental condos have listed for sale to offload the investments that are seeing expenses exceed revenue.
Companies now require a short term rental license from the city
New legislation to register principal residence properties before Dec 31 2020 that operate as short term rentals (28 days or less).
The condo market is balancing, meaning increased supply and less demand.
However, as government income support unwinds, students adjust, immigration returns and employees become stir crazy in their home offices, I suspect to see a rebound in this more affordable housing option.
The price of lumber has almost doubled, so romanticizing renovations or building is not as seamless or affordable as HGTV makes it seem. A lot of buyers on budgets will revert to turnkey townhomes and condos to avoid underestimating costs and stressful timelines required to fix up older, detached homes that need work.
There have been more exclusive listings to sell this year as widespread in-person showings that often accompany a public MLS listing can be minimized. This is why working with a realtor is more important than ever...please get in touch today so you don’t miss out on your home that isn’t in the public eye!