2020 saw the recovery of the presale condo market. Investors return to the market but still not in the spectacular way we saw them returning in 2016 and 2017. Due to the pandemic, prices and sales for condos, apartments, or homes have all defied the predictions. With low-interest rates, we are now in the time of what they are calling the COVID-19 real estate boom.
But the data that doesn’t show up in the monthly real estate board information is for the new and presale condo market. In this market, buyers are purchasing condo contracts from developers who are then going to build these condos. The market for these sales was just about recovering when the pandemic hit in March 2020. In 2020, the presale and multifamily condo sales were their third-lowest since 2011. In the first quarter of 2020, the market saw 3,800 encouraging sales. But come 2nd quarter the market was paralyzed.
But in the last quarter of 2020, there was again an increase in presale condo sales when compared to the last quarter of 2019 which only had 2,400 sales which was a drop from 2018,s 4,100 sales. The sales for 2020 were just about 300 less than 2018 thanks to the window of opportunity that opened up due to the drop in interest rates.
Investors were staying on the sidelines and taking their time to gauge what would happen. They weren’t taking the predictions and were just waiting to see.
What Does the Future Hold?
The prediction for the future is that the investor buyer is going to jump back into the market. With many new condos lining up for entrance into the market in 2021. So we don’t expect to see prices rising especially for projects for high-rise condos with more units available for sale. Whenever we see travel restrictions, lifting, and immigration resuming we can expect to see more sales as well. For all the people who started the immigration process and then had it interrupted by the pandemic, we will probably see them coming in and needing homes.
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