COVID-19 has not significantly deterred buyers in Toronto due to the market-friendly monetary and fiscal conditions driven by the federal government and the Bank of Canada, according to a RE/MAX analysis.
While employment levels have fluctuated and businesses have placed themselves on hold over the last few months, “at the same time, there has been sustained activity in the number of buyers compared to available listings,” RE/MAX said. “This is one of the chief factors in supporting price growth relative to last year’s pace, despite shifting market conditions.”
Data from the Toronto Regional Real Estate Board showed that in May, the market’s average home price grew by 3% annually to reach $863,599.
Federal measures played a large part in keeping the number of prospective buyers stable, RE/MAX said.
“Canada Mortgage and Housing Corporation has supported lenders to cover the cost of mortgage deferrals,” RE/MAX said. “In a broader policy tool, the government implemented a wage subsidy program to help employers keep staff on payroll, helping millions continue to collect paycheques and cover their bills.”
RE/MAX also pointed at the current BoC benchmark rate of 0.25% as especially advantageous to Canadians who were fortunate to have kept their jobs during the crisis.
“This is allowing buyers to borrow greater amounts of money at a lower cost over time,” RE/MAX said. “The institution has also pumped billions of liquidity into the financial system, making lenders more confident in issuing loans.”