Is this really November?
The leaves have fallen. The grass has begun to go dormant for the winter. Yet we are experiencing an Indian Summer like no other. I trust you are taking full advantage of this amazing weather.
The past several months has quite possibly been the longest and busiest stretch of non-stop real estate activity I personally have experienced in my career. Since late May, we have seen a flurry of buying and selling activity. When asked by our team recently if I was ever going to prepare the monthly newsletter again, I was in total disbelief that we had not written nor sent out the update since April. Yikes. We got that busy that I was oblivious to having not prepared this update. So, we are back!
The current health crisis and other external factors that one could assume are negatively affecting the housing market seem to be offset by the very low cost of borrowing. Across our key selling markets, prices remain strong and consumer confidence continues to defy logic and economic realities. Below is a year over year review of prices throughout our specific markets:
Community Active Listings Average Price
2019 2020 Yr/Yr Chg. 2019 2020 Yr/Yr Chg
Aurora 254 192 -24.41% $945,972 $1,052,457 11.26%
Newmarket 272 169 -37.87% $749,501 $914,865 22.06%
East Gwillimbury 163 94 -42.33% $793,899 $998,901 25.82%
Georgina 261 147 -43.68% $581,052 $695,709 19.73%
Richmond Hill 798 794 -.5% $1,029,032 $1,173,826 14.07%
OCTOBER 2020 HOUSING SALES ACTIVITY
Historically low interest rates combined with a shortage of listings is causing a significant year over year price increase. Buyer activity continues to be strong across all housing types and there certainly does not seem to be an end to this optimism. That said, some caution as we approach 2021 may be necessary. The most recent RBC report offers some insight into how Covid-19 has been a disruptor to the market and provides some insight into what the next 6 months could look like.
Item 7 in the report is a specific conversation occurring with many of our clients of late. Deferred mortgage money that may have been spent on lifestyle changes coupled with a decline in wage relief could contribute to higher credit card and Line of Credit debt. The ripple of this is purely hypothetical on my part however should be some cause for concern. If households suddenly find the cost of carrying ‘lifestyle’ debt is a burden, downsizing real estate may be seen as a strong alternative. Should this occur, we could see a considerable increase of new listings. How this could have an impact on housing prices remains the unknown. My sense is we may begin to see this in our market in the first – second quarters of 2021.
CURIOUS WHAT YOUR HOME IS WORTH?
HOLIDAY GIFT BASKET GIVEAWAY
December 14th 9am - 4pm
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