This is the mid-April update in order to provide further insight and some guidance on the impact that COVID-19 has had on the GTA market. There are many ways that the measures currently in place (i.e. social distancing) have impacted the real estate market. There are definite concerns with home buyers and sellers about the economy, employment situations as well as engaging in any type of in-person interaction, which is reflected in the numbers.
Greater Toronto Area REALTORS® reported 1,654 home sales through TRREB’s MLS® System during the first 17 days of April – down by 69 per cent compared to the same period in 2019. Year-over-year declines were greatest for the detached and condominium apartment segments
The number of new listings was down on a year-over-year basis by a similar annual rate, declining by 63.7 per cent to 3,843.
The average selling price for sales reported during the first 17 days of April 2020 was $819,665 – down by 1.5 per cent compared to the same period in 2019. Uncertainty about market conditions have played a role in moderating the pace of year-over-year price growth during the first half of April. It should also be noted that selling prices have also followed listing prices, with average listing prices down by a similar amount
As social distancing measures remain in place for most of spring, it is predicted that the decline in home sales will likely be strongest in Q2 2020. However, if the public health forecasts play out as expected (assuming strong social distancing measures continue to be followed) we will likely see improvement in market activity in summer going into fall.
While the necessary social distancing measures have certainly resulted in a pause to housing transactions, we are able to mitigate some of that impact through using technology. We are digitally enabled with various tools and action plans in place for buying and/or selling safely. Please feel free to reach out if you need any help or advice.
Keep safe. It’s our family helping yours!
Kristina & Rey