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<\/a><\/p>\nPhoto:\u00a0Nadine Shaabana<\/a>\/Unsplash<\/a><\/em><\/p>\n Much ink has already been spilled over the rebound in housing that\u2019s underway in some of Canada\u2019s largest markets. After a volatile 2018 and an exceptionally brutal winter, home sales began to recover, particularly in the Toronto and Vancouver regions.<\/p>\n The country\u2019s all-seeing housing eye, the Canada Mortgage and Housing Corporation (CMHC), recently published its optimistic 2020-2021 market outlook. The organization famously predicted that 2019 would be one of the worst years for Canadian home sales in the last 10 years, so the shift in tone for the next two years has been striking. Heck, it even revised its 2019 forecast to account for a better-than-expected housing performance during the year.<\/p>\n\n In the 2020-2021 outlook, the CMHC writes that Ontario will lead the country in the continued home sales and prices recovery, pulling up the national averages and offsetting ongoing weak performance in some of the country\u2019s other major centres.<\/p>\n The Toronto condo market has played a significant role in the housing recovery observed in markets across the country through the spring and summer months. In the third quarter, the condo market saw an 11.1 percent rise in sales and a 5.8 percent increase in prices. While these upward trends are generally anticipated to be sustained through the next year, Toronto\u2019s condo market will be particularly sensitive to a number of other factors that are playing out now.<\/p>\n Below we explore three condo market trends that are worth digging into beyond the simple \u2018prices and sales go up or down\u2019 market indicators.<\/p>\n It doesn\u2019t take a PhD to understand that as long as Toronto remains Canada\u2019s business centre, the city will continue to attract large numbers of new residents assuming the economy stays on a reasonably solid growth trajectory.<\/p>\n \u201cAs economic conditions continue to be favourable for job growth in the Greater Toronto Area, people have continued to come to the city for work,\u201d said Toronto Real Estate Board President Michael Collins in a media release published earlier this month.<\/p>\n While talk of a global recession has been bubbling up for months now, the fears don\u2019t seem to be having much of an impact on the country\u2019s job market.<\/p>\n \u201cThe big Canadian jobs machine just keeps chugging along, giving no sense that the economy is on the cusp of an imminent downturn,\u201d wrote BMO Chief Economist Douglas Porter in early October, following the release of \u201csturdy\u201d Canadian employment data from September that saw Ontario add 41,000 jobs.<\/p>\n Expect demand for condos to remain high so long as Toronto is a beneficiary of that \u201cbig Canadian jobs machine\u201d attracting new residents to the city.<\/p>\n \u201cHome ownership is important to many Canadians, and, as a relatively affordable housing option, condos in the GTA offer prospective buyers the chance to achieve their dreams of owning property,\u201d said TREB\u2019s Collins.<\/p>\n All this good job growth news is both a blessing and a curse for Toronto\u2019s beleaguered renter population who have endured a relentless onslaught of price increases over the years. Job growth has been paired with an increase in average hourly wages, so you\u2019d imagine more jobs with higher pay would benefit renters in the city.<\/p>\n Of course, none of this is happening in isolation, so the burgeoning labour market has also added more residents to the city all competing for the same limited number of rental units in the chronically undersupplied market.<\/p>\n So while the positive job market picture could change on a dime in the face of a deteriorating global economy, only incremental change will likely lift the Toronto rental market out of supply deficit territory.<\/p>\n1. Toronto\u2019s job market will continue to show its strength in 2019<\/h2>\n
2. The city\u2019s rental housing deficit isn\u2019t going anywhere<\/h2>\n