11 December 2020
Cheri McCann

The Toronto market continues to prove its worth as a valuable place for real estate investment. Covid-19 initially wreaked havoc and uncertainty, forcing sales down as much as 53-67% in the Spring. But this fall has been spectacular for the GTA with transactions in November up 24.3%, over 2019.

Much of the activity is due to single family homes (up 9%) as people want more space to work and learn from home. Condo sales were down 4.2% and rentals are way up (as much as 113%).

With lower demand for short term and vacation rentals, condos currently have a high vacancy rate (estimated 30%). To add pressure on condo owners, a proposal was put forth today to City of Toronto Executive Committee for a Vacant Home Tax, similar to the tax Vancouver implemented in 2016. If approved, an inventory of vacancies would be catalogued, to identify which properties to target. During Covid this would be difficult and likely inaccurate. Actual taxation would not begin until 2022 and some say more likely 2023. This would likely affect properties that sit empty more than 6 months a year. However, Toronto condo news is not all bad! Canada has committed to increasing immigration targets in 2021 – 2023 so there will be higher demand in Toronto.

With an already expansive choice of condos on the market and great mortgage rates, this could be the perfect time to buy. Give us a call to further discuss opportunities and market outlook from a team with more than 75 years of combined experience!

(stats approximated from TRREB MLS system)

Update Dec 15, 2020 The vacancy tax implementation was approved for 2022.  Still many unanswered questions about how it would work and whether it actually improved rental availability in Vancouver. CBC article