April 2020 – Market Analysis

April 2020 Review

As the COVID-19 lockdown situation intensified during the month of April, the Real Estate market experienced a dramatic drop in both properties listed and properties sold when compared to April 2019. The Toronto Regional Real Estate Board (TRREB) reported a 67% decrease in the number of sold properties throughout April 2020 when compared to April 2019. On the listing side, a 64.1% decrease was reported for the same period with 6,174 new listings in April 2020 compared to 17,213 in April 2019. 

Interest Rate Cuts and Overall Economic Activity 

Although interest rates continued at exceptionally low rates, the Real Estate market did not see a rebound of increased activity during the month of April.  This is not unrealistic considering the dramatic changes brought to our society by the business emergency shutdowns and social distancing.  In spite of this market environment, it is interesting to see that buyers are still searching and moving forward with purchasing decisions.   We have noticed this trend move up to the higher price point ranges approaching the $3,000,000 plus housing market.

Increasing Sale Prices 

When looking at average sale prices and comparing April 2020 to April 2019, the year-over-year average selling price for all home types combined continued to increase by 0.1 percent. The average sale price in April 2020 was $821,392, compared to $820,737 in April 2019. As small as this change may be, it is encouraging to see that while the market activity has slowed down dramatically, the pricing remains stable and we have not seen any drastic decrease in property value.

Is Now a Good Time to Act?  

During the month of April it was obvious that each day brought a new set of challenges to the market. However, for Buyers looking to grow their real estate portfolio, there are still buying opportunities to be found.  If you are looking to make a move this year, we recommend to continue observing the market closely (which we will continue to do for you and keep you informed), and start the preliminary process of buying or selling. We would be happy to hear from you to discuss your real estate needs and to share with you the strict precautions that we are taking when conducting face-to-face interactions, to ensure that everyone’s health and safety remains as our number one priority.

April 2020 – Market Analysis

Monthly Percentage Change in Number of Units Sold – April 2020 – Illustration A

Month-Over-Month Average Price Percentage Change – April 2020 – Illustration B

Seasonally Adjusted Month-Over-Month Average Price Percentage Change – April 2020 – Illustration C

Monthly Percentage Change in Average Sale Price – April 2020 – Illustration D

 

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Admin

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