April 6, 2020 | Buying
There’s no doubt that COVID-19 has had an impact on the Toronto Real Estate Market after the city announced its state of emergency in mid-March 2020, but what does this impact look like overall? It is important to remember the following things before reviewing the Toronto Real Estate statistics… The COVID-19 virus is a global pandemic and it is not specific to our city. Furthermore, this is not deterring people from their desire to live in the city of Toronto, only limiting people’s ability to transact during this time.
We would like to begin by sending our good wishes and hope that all of you are staying safe and healthy during this time. Also, a massive “thank you” to all of our first responders and healthcare workers manning the front lines to keep our city safe, we truly appreciate it.
The Toronto Real Estate Board reported 8,012 home sales through TREB’s MLS System in March 2020 which displayed a 12.3 per cent increase compared to the 7,132 sales reported in March of last year. However, despite a strong increase in sales for March 2020 as a whole, a clear break in market activity took place between what TREB is calling the pre-COVID-19 and post-COVID-19 periods. To keep things clear, the start of the post-COVID-19 period has been indicated as the week beginning Sunday, March 15.
Overall, the March 2020 sales result was evidently driven predominantly by the first two weeks of the month. 4,643 sales were reported in the pre-COVID-19 period which accounted for 58 per cent of total transactions for the month and showed a 49 per cent increase compared to the first 14 days of March 2019.
During the second half of the month- the post-COVID-19 period – there were 3,369 sales reported which showed a 15.9 per cent decrease compared to the last two weeks of March 2019.
As a whole, March 2020’s new listings were up by 3 per cent year-over-year to 14,424. Although, during the second half of the month- post-COVID-19 period (beginning March 15)- similar to sales, new listings dropped on a year-over-year basis by 18.4 per cent.
The average selling price for March 2020 as a whole was $902,680 which was up by 14.5 per cent compared to March 2019. The MLS Home Price Index Composite Benchmark price was up by 11.1 per cent year-over-year in March 2020. The average selling price for March 2020’s post-COVID-19 period was $862,563- which was down compared to the first half of the month but still increased by 10.5 per cent compared to the same 2-week period of March 2019. This is an important fact to remember during this time.
As a result, we have seen the second part of March 2020 (post-COVID-19 period) slow down comparatively to the speed we are used to seeing as we begin the spring market. However, what March 2020’s statistics have shown is that although showings have been either terminated or postponed, open houses have been cancelled and sellers are choosing to hold-off on listing their homes during this time, at the moment, our city’s average sale price is still holding strong compared to March of last year- it is just difficult for Buyers and Sellers to transact.
We have yet to see what April 2020 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 as ever-changing as ever. 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!