The housing market was yet another sector of the economy that got hit hard during the COVID-19 pandemic. In March 2020 when the economy took a nosedive and unemployment skyrocketed, housing sales dropped by an average of seventy percent .
It appears, however, that as businesses, workplaces, restaurants, and stores have opened up, the housing market might be on the rebound, even if some of Canada’s most expensive cities. This comeback is exemplified by a recent for sale sign that has gone up in the Canadian city of Toronto: a tiny home with an asking price of one million dollars. Curious? Canada’s CTV news recently took viewers on a tiny house tour.
A Tiny House Tour
A tiny home in Toronto’s east end near Little Italy has just been listed for a cool $999, 999. It has two tiny bedrooms, a bathroom, a kitchen, a living area, and a two-car detached garage.
According to the listing, the total land size is 6.14 meters by 39.32 meters (20 x 129 ft), and is being advertised as a “great size” with “loads of potential”, and is in a great location being just steps away from shops, restaurants, parks, bars, schools, and public transit .
This price is above the average price for the Greater Toronto Area, which was $930,869 as of June, which is nearly 12% higher than the year previous.
A Rebounding Market
Experts believe that in cities where there are a large number of government workers or people working in the tech industry who have held onto their jobs, the housing market will bounce back quickly, since it wasn’t as hard-hit in the first place.
Likewise, cities that are considered immigration hubs (Montreal, for example, in Canada) will also bounce back relatively easily as there will continue to be a demand for housing.
Other cities, like Toronto, are not expected to fare quite as well. The condo market in particular, because of physical distancing measures, may be hurt by declining rental prospects. A study by StatsCan (Statistics Canada) described this drop:
“There is already evidence of this happening in Toronto, where average rental prices have begun decreasing as new landlords try to attract clients from a diminished pool of potential renters,” the study said .
This is partly because travel restrictions have left many of the apartments and condos that were previously reserved for short-term rentals empty, and landlords are dropping prices to fill them with long-term renters.
Experts also predict that with more people working from home, sales of single-family dwellings outside the city are likely to go up, as more and more people decide to leave the city for more space and fewer neighbours. This, in turn, will likely drive down condo prices for the foreseeable future .
Are You the Ideal Buyer?
Most people would scoff at the idea of purchasing such a tiny property for one million dollars, but if you’re someone who’s got a little money to burn and you don’t like cleaning a large home, maybe this tiny house is the place for you?
- “‘Covid-19 has changed everything,’ StatsCan says in housing market study.” Advisor. James Langton. July 21, 2020
- CTv News