June 8, 2020 | Buying
As our city continues the fight against the COVID-19 pandemic by extending Toronto’s state of emergency until July, indefinitely, adjustments have had to be made all around. The Toronto Real Estate Market has continued to feel the effects of this pandemic, although, keeping in mind the seasonal adjustments that occur throughout the year, Toronto’s Real Estate Market is continuing to power through in a substantial way.
The Toronto Real Estate Board announced 4,606 sales through the MLS in May 2020. This result proved a 53.7 decline compared to that of May 2019. While the number of sales year-over-year has substantially decreased, it’s important to note that May’s 53.7 per cent decline was 13.4 per cent less compared to April’s staggering 67.1 per cent drop year-over-year. As a result, the market is doing its best to bounce back and we have seen a significant acceleration in market activity with May 2020 sales numbers increasing by 55.2 per cent compared to that of April 2020. Nonetheless, after accounting for the seasonal increase that is anticipated each year between April and May, seasonally adjusted sales were up by 53.2 per cent, and consequently, we’re not out of the woods just yet.
The number of new listings entered into The Toronto Real Estate Board’s MLS System in May was down by an equivalent annual rate to that of sales, declining by 53.1 per cent to 9,104. Again, it’s important to note that the decline represents a year-over-year result. On a month-over-month basis, actual new listings were up by an impressive 47.5 per cent compared to April 2020.
The MLS Home Price Index Composite Benchmark price was virtually unaffected in May 2020 compared to April 2020. On a year-over-year basis, we saw the Composite Benchmark rise by 9.4 per cent. May 2020 displayed an increase of 3 per cent in the average sale prices for all home types combined compared to that of May 2019 to $863,599, and after considering the aforementioned seasonal adjustment, the average selling price was up by 4.6 per cent month-over-month compared to April 2020.
The difference in year-over-year growth that we’ve seen between the MLS HPI Composite Benchmark and the average selling price was dramatically influenced by the fact that the home sales in Toronto, particularly in detached homes, were down by a greater annual rate than overall sales in the GTA. This resulted in a compositional impact on the overall average selling price.
We have yet to see what the summer market brings, but we will be keeping a close eye out and updating you appropriately. This is most definitely a trying time for our city and we hope everyone is keeping their spirits up and remaining safe. We want to ensure you that we are here every step of the way for you to help guide you through the Real Estate Market that is constantly ever-changing. Contact us today for a no-obligation chat about what the market is doing specifically in your area and we will help you navigate these choppier conditions as best as we can!