Real estate market in Oct 2020 / Michael Tepper, Broker of Record
Real estate market direction for Toronto downtown in Oct, November, and December 2020
1. What is the status in the condominium market for sale and for rent.
2. Rental market collapse due to the following factors:
- No immigration to Canada and especially to Toronto
- No students coming to study in Toronto.
- Work from home and not from offices if possible
- No new hires by Toronto based companies,
- New buildings ready or will be ready soon for owners and tenants to move in.
- With 60% or more condos purchased by Canadian, and foreign investors with the intention to rent out
- Most of the units built in the Toronto core downtown are small studios or one-bedrooms for a specific segment in the real estate market, The singles, bachelors.
- Airbnb- with the drop in the demand for Airbnb condos for short term rent. And the by-laws restrictions on Airbnb operators. Many condominiums owners will list their units for rent
How long condominiums owners will be able to keep their properties vacant without rents income from tenants?
- Condo owners must pay monthly maintenance, property tax, and mortgages regardless if they have tenants or not (Negative cash flow)
Let us know what you think will be the direction of the market?