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Entries posted November 2020

Real Estate Market and trends November 2020

Good Morning, I hope you are able in this challenging time to keep positive. As so many are wondering how is doing the market, I will share with you some economic indicators: • Real GDP Growth Q2 -38.7% • Toronto Employment Growth -6% • Toronto Unemployment Rate 12.8% • Bank of Canada Overnight rate 0.25% • Prime Rate 2.45% Even with these numbers: • Number of Home sales in the GTA) were up again year-over-year for the fourth month in a row. • Competition between buyers of single-family homes, and particularly detached houses, remained strong last month and continued to support double-digit annual rates of price growth in many GTA neighborhoods. • In contrast, condo buyers have benefitted from much more choices compared to last year. Pre-COVID polling had already pointed to an increase in investor selling in 2020. The pandemic only added to this trend. • The MLS® HPI Composite Benchmark was up by 10.8 per cent on a year-over-year basis in October 2020. • The average selling price for all home types combined was $968,318 – up by 13.7 per cent compared to October 2019. • The economic recovery in some sectors coupled with low borrowing costs has kept home purchases top-of-mind for many GTA residents. And what about Oakville? October 2019 October 2020 Active listings 721 563 Sold listings 291 390 Number of days 28 21 on the Market What does these numbers tell us? We can be optimistic of the strength of our Real Estate Market where we experienced that SOLD PRICES never dropped, it has been quite the opposite in fact. The Y.T.D Average Price in Oakville In October 2019 was $ 1,041,146 In October 2020: $ 1,237,974 As a result, it led to an increase of 18.5% in a year. Often many wonders about what if the Real Estate market crashes? Or what if suddenly many can’t pay their mortgages? I have no crystal ball, but I think that no Banks want that to happen and will do anything to avoid that, preferring the option of refinancing their clients with lower interest rates. Another good news for our local real Estate marked is that with the COVID many have been willing to move out from Toronto to get more space at the same price and enjoy our Beautiful Oakville and Burlington.

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