Market Watch - April 2020
Trending from the mid-April update, it is evident as to the impact that the necessary social distancing and economic impact that COVID-19 has had on home sales and listings this past month. Fortunately, transactions have been continuing and the real estate industry is still operating; however at a much slower pace. Through innovative techniques, such as virtual or live stream open houses, REALTORS® have been able to continue to facilitate transactions for buyers and sellers and help safely navigate through the new normal.
Greater Toronto Area REALTORS® reported 2,975 residential transactions through TRREB’s MLS® System. This result was down by 67% compared to April 2019. Weekday sales remained within a relatively steady range during the month, averaging 130 per day
New listings amounted to 6,174 in April 2020 – down on a year-over-year basis by a similar rate compared to sales (-64.1%)
The average selling price for April 2020 transactions was $821,392 – up by 0.1% compared to the average price of $820,373 reported for April 2019. The semi-detached and townhouse market segments experienced annual average price growth above the rate of inflation. The condominium apartment and detached segments experienced year-over-year price declines on average
The trend for the MLS® Home Price Index Composite Benchmark, which had been on an upward trajectory since the beginning of 2019 flattened in April. On a year-over-year basis, the Benchmark was up by 10%
The MLS® HPI indices represent prices for typical homes with consistent attributes from one period to the next. The fact that the MLS® HPI was up year-over-year by a greater rate than the average selling price suggests that the share of higher end deals completed in April 2020 versus April 2019 was down.
It is important to note that average sale prices for a property can vary based on the neighbourhood and that the pace of price growth is dictated by the relationship between sales and listings. In other words, while COVID-19 has shifted market conditions and halted the strong pace at the start of March, there continues to be enough activity relative to available listings to keep the prices in line with last year’s levels.
Therefore, now more than ever, it is important to get a market evaluation for your neighbourhood from licensed real estate agents who can provide an accurate evaluation for your property. We will continue to follow the directives and guidance being given by the government and public health agencies to ensure the safety of our clients, whether buying or selling. This is reinforced by our Sell Safe and Buy Safe Action-Plans and use of digital technologies to perform contactless transactions.
Please feel free to contact us at any time for help or advice.
It’s our family helping yours!
Kristina & Rey