Is this a buying opportunity?

Dated: October 16 2020

Views: 130

Is this a buying opportunity?

If you have been reading about the Real estate market, you’ve been seeing record sales in September (as much as 45% above the same time last year in Canada – Globe & Mail, B3 October 16th). This coupled with the lowest interest rates in years (some 5 year rates are as low as 1.84%, and anecdotally, there are even lower “specials”) may give you the impression that every property is being snapped up all over the GTA. In fact, it depends on the property, the neighbourhood and – surprise - on COVID-19. Why? The resurgence of cases and the threat of a 2nd shutdown has Folks thinking long and hard about whether they want to be confined in tighter spaces (condos) with closed amenities (pools, gyms) if we return to the Phase 1 conditions that we experienced after March 13th. And with the borders closed, there are no immigrants, no tourists, no students and hardly any Airbnb’s. This has had a huge impact on Toronto rental rates dropping lease prices 10- 15% and increasing sales inventory as investors try to liquidate their holdings.

Hence the buying opportunity. I am a contrarian: when everyone sells, I think that it’s a great time to buy. If you believe (like I do) that Downtown Toronto will once again be very attractive post COVID, the winter months will yield some great opportunities for shrewd buyers as sellers make deals to dump inventory. Come Spring, all bets are off: the eventual discovery and distribution of a vaccine will mark the end as Companies and Universities return to normal (all those supervisors love to see people at work) and the anxiety shifts from catching the disease to long commutes.  Buy low, sell high. If you’re looking for opportunities, call me (416) 953 – 9301. Happy hunting!

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Jay Nicholson

Originally from Montreal, I have been a Downtown Toronto resident for the last 33 years. Je suis totalement bilingue et il me ferait plaisir de vous servir en Français. A graduate of the University ....

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