We hope that this newsletter finds you, your family and friends well and healthy. There is no doubt that we are collectively feeling the realities of this pandemic. Thankfully the weather seems to have finally switched from winter to spring, giving us hope of new beginnings and sunny, warmer days ahead.
In an effort to minimize physical touchpoints through COVID-19 we are not mailing out our monthly Toronto real estate newsletter.
COVID-19 has certainly impacted Toronto’s real estate market. Sales and listings are down substantially while values are down to a lesser degree in specific segments. What is worth noting from our activities in the marketplace is that some houses and condos have done very well, selling in-line with pre-COVID-19 expectations. This is more the exception than the rule, but it does reinforce that we believe Toronto’s real estate market will bounce back as we move forward and adjust to our new “normal” in time. We want to also share that property showings are up slowly tickling upwards. From experience, the increase in showings is a key indicator of buyer confidence and market trends – we are beginning to believe that the market may be stabilizing – that being said at a lower sales volume than pre-COVID-19.
We are listing and working with buyers are essential service providers with the necessary precautions taken to social distance, increased digital technology usage, the proper PPE and cleaning.
As always, we are here should you have any questions.
Be safe, well and healthy.
April Market Update:
Toronto Regional Real Estate Board President Michael Collins released the following key housing market statistics for April 2020:
Home Sales and Listings
Greater Toronto Area REALTORS® reported 2,975 residential transactions through TRREB’s MLS® System. This result was down by 67 per cent 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 per cent).
The average selling price for April 2020 transactions was $821,302 – up by 0.1 per cent 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 per cent.
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.