Tuesday, July 07, 2020

Toronto Real Estate Market Surprisingly Robust

If there is a recession on the way in Toronto the people of Toronto are continuing to spend lots of money despite the looming threat of a recession.

  • Real estate is up.
  • Pool installations are up.
  • Commercial shopping (eg. shopping malls) are only down 20%.
  • Online shopping is way up.
  • Tech stocks for Microsoft, Tesla, Netflix and Amazon are all way up.
If it wasn't for the millions of people who have lost their jobs / are not currently working / various companies declaring bankruptcy / a global pandemic you would think the economy is booming.

Meanwhile in the USA, they definitely reopened too early and the recession (when it does come) is certain to be deeper and harsher than in Canada where the government and health services have proven themselves to be capable and competent.

So if you are scratching your head as to why the economy is doing so well, you are not alone. My conclusion is that the recession has been delayed by government spending. Possibly even averted in Canada.

But whether this is true might not be revealed until December or so. By the end of 2020 we will have a better idea of whether we are truly in a recession and what impact that will have on real estate prices.

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