When will the Toronto Real Estate Market Crash?

I am asked, “When will the Toronto real estate market crash?” almost daily by my friends and by my clients. My answer now is very different from the answer I was giving in March. In March, we were all prepping for a doomsday scenario of huge job losses and bank foreclosures. However, if you’ve been following the news, you know that the Toronto market has, in fact, gone up since COVID.

Why hasn’t the Toronto Real Estate Market Crashed yet?

The real question is, why hasn’t the Toronto real estate market crashed? The answer is low interest rates and low job loss in high income earning jobs. As long as these two factors remain steady, the Toronto market will not crash. It is likely, however, that with a second COVID wave and a highly-anticipated American election the market will soften for a few months. We could see less competition and more listings heading into 2021. It is also possible that the downtown condo market will continue to suffer alongside the downturn of the rental market. However, these two areas of market softness are not the signal of a crash. Prices could remain steady, or even dip, but we will not see our doomsday scenario play out unless the global landscape and our federal economic policies change drastically.  Don’t believe me? Here is Toronto Life’s article where seven market experts express their opinion on the topic!

Robyn VanderVennen
The Kim Kehoe Team