Starts, completions, and absorptions were all robust, despite the pandemic
Construction in Canada’s most populous city has shown no signs of being derailed by the COVID-19 pandemic, with Toronto gaining the top spot this year in terms of housing starts, completions, and absorptions, according to RE/MAX.
Citing year-to-date (ytd) numbers from Canada Mortgage and Housing Corporation, RE/MAX said that Toronto had 30,085 starts so far in 2020.
The market also had 23,471 completions and a total of 21,525 absorptions.
“Despite a temporary pause in the Canadian real estate market in February and March, the nation’s housing sector has been on a tear,” RE/MAX said. “Sales activity has been surging, prices are touching all-time highs, demand is booming, and supply is shrinking. When you factor in the Bank of Canada’s historically low interest rates and the diligent work of real estate agents, it is easy to understand the extraordinary activity level coast to coast.”
Vancouver also posted a robust 16,179 starts, along with 18,474 completions and a total absorption of 14,224 units. Montreal tallied an even stronger 19,293 starts and 17,553 completions, although total absorption was a more modest 8,336 units.
“Because of these bullish trends, homebuilders are taking advantage of the situation at hand,” RE/MAX said. “Since most construction projects have been spared the worst of the pandemic, homebuilder activity has maintained its record-setting strength throughout the public health crisis. And this is occurring amid the worst economic downturn since the Great Depression, generating discussion that the Canadian real estate industry is immune to the public health crisis.”
However, the overall market’s long-term stability remains an open question.
“’Uncertainty’ is the trending buzzword to describe Canada’s current economic plight over the course of 2020,” RE/MAX cautioned. “Because the second wave of the coronavirus has ostensibly stretched across Canada, impacting cities and provinces that were not previously affected – like Manitoba – it is unclear as to how the Great White North will handle the next surge in cases. This will have broader implications for the national economy and the housing sector.
“At present, we can take solace in the fact that the national real estate market has shown tremendous resilience throughout the pandemic, and is prepared to forge forward with continued development in the housing sector.”
