Even if you look uptown, at Yonge and St. Clair, for instance, you’re seeing a softening of demand. The Oakville housing market has seen average residential prices rise and inventory dwindle in 2020, which has been a common trend across many Ontario housing markets, resulting in rising prices. Everybody is saying, ‘Well, the market really hasn’t suffered. All rights reserved. In other words, the residential real estate market served as a safe haven for Canadian investors this year. “Crash is a big word. “We started to see a rebound in home sales as we moved through May. Second, a serious number of people deferred mortgage payments, ending in the next few months. A good number of jobs that were lost temporarily came back. And so, if you look at the kind of numbers that we saw in June, with an average home selling price of $930,869 and more than 8,000 sales, perhaps that points to improving conditions as we move forward.”. “Inventory is the real challenge that we’ve had for the last couple of decades, and Covid has really tightened that up to extreme levels. 3 Reasons to Worry About a Housing Market Crash in 2021, It seems Canada may have avoided the housing market crash that was looming before the pandemic struck. “I believe that cities are going to continue to grow and flourish. But home buyer intent is a key matter. I think a lot of people are concerned about when mortgage deferments end. There was no spring market in 2020, since we were all supposedly going to die of Covid, and stayed home in our underwear. The same month-over-month drop after 2008 will again hit the Toronto real estate market. And I’m not unique”: a memoir about being homeless during Covid, They were first in line for the vaccine: “I felt so lucky—like this might be the beginning of the end of this nightmare”, Inside the mind-bending business of keeping a restaurant alive during a pandemic: a memoir from Toronto’s top chef, A cooped-up, stressed-out urbanite’s guide to the longest winter ever. “The condo market, on the other hand, that’s getting into balance, meaning demand is dropping. Always have a cushion in there. In June, yes, sales activity returned to some sort of normal, due to pent-up demand that accumulated during the three months prior. If infections rise and hotspots develop, so be it. “I’m not anticipating a major downturn, but I do see some major warning signs with the supply and demand equation. The ‘burbs are suddenly sexy. Are the long predicted warnings of a Toronto housing crash about to come true? So, there was a flurry of activity that put immense pressure on pricing. Absolutely not. Dividend seekers could divest their residential real estate investment trusts and invest in essential properties through stocks like NorthWest Healthcare instead. What happens once the business subsidy runs out is a bit of a concern, but when it comes to people who are on CERB, they aren’t typically homebuyers. Traditionally, bull cycles do end (2007). And whether they’re buying homes or renting, it’s a big boon to the housing market. To learn more about it and its revolutionary potential to change the industry — and potentially your bank account — click on the link below to get the full scoop. It freaked out millions. An unknown number will still be without work and forced to sell, so more listings. Liquidity is sloshing over the gunnels. When we look at unemployment, 1.8 million Canadians are out of work compared to four months ago. If you own their stocks, then a housing market collapse can put your invested money at high risk. Between the rising debt and the bubble, there is a significant risk of a housing market crash. People seemed to be getting more and more confident that we were starting to move into a recovery period. But the likelihood of a crash is basically zero. If that’s the case, once the government subsidies dry up—CERB and business loans—people will start to eat into their savings.