Market Watch - May 2020
While the public health and economic concerns surrounding COVID-19 continue to impact the housing market, along with other markets, The May 2020 sales result was an improvement over Aprils numbers. As we move toward recovery during the COVID-19 pandemic, the housing sector will be a definite driver of growth as many potential buyers are looking to take advantage of low borrowing costs. In parallel to this, we have seen a significant improvement in rental transactions from April to May 2020. We are optimistic to see sales continue to grow throughout the summer months, and a maintain very balanced market.
Greater Toronto Area REALTORS® reported 4,606 sales through TRREB’s MLS® System in May 2020. This result was down by 53.7% compared to May 2019
The number of new listings entered into TRREB’s MLS® System in May was down by a similar annual rate to that of sales, dipping by 53.1% to 9,104. On a month-over-month basis, actual new listings were up by 47.5%
The average selling price for all home types combined was up by three per cent compared to May 2019 to $863,599. On a seasonally adjusted basis, the average selling price was up by 4.6% month-over-month compared to April 2020
The MLS® Home Price Index Composite Benchmark price was virtually unchanged in May 2020 compared to April 2020. On a year-over-year basis, the composite benchmark was up by 9.4%
The general sense we get of the current market is that it is primarily driven by a need to buy or sell in the current conditions. There is no sway between being a “buyer” or “seller” market as many are doing so out of necessity. This does not mean that prices have dropped or risen, significantly, however it appears that May has given us a slight increase in prices.
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.
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