Covid-19 Real Estate Update
Thursday Apr 23rd, 2020
Home Prices Remain Steady As Overall Transactions Drop
The Toronto Regional Real Estate Board reported 1,654 home sales in the first 17 days of April 2020. Although this may seem like a lot of sales, it is 69% less than the same period in 2019.
The total number of transactions is significantly down but the average sales price across the Greater Toronto Area has only dropped by 1.5% compared to the same period in 2019.
Detached homes are down an average of 4.6% and condos are down 1.8% while semi-detached homes are up by an average of 2.9% and townhomes are up 3.8% compared to this time last year.
The calendar year average price for 2020 will likely remain near the 2019 level, and will be buoyed by the 15 per cent year-over-year growth experienced in Q1 2020 and resumed growth in Q4. Year-over-year declines in home prices could be reported during some months in the second and third quarters, but these declines will have less of an effect on the overall price for 2020 because the annual share of sales will also be much lower than normal.
As we recover from this temporary downturn, potentially later this year, home buyers will move off the sidelines in increasing numbers as they satisfy pent-up demand for ownership housing. Increasingly, these buyers will be faced with the persistent lack of listings inventory that was a serious problem before the onset of COVID-19. As the different levels of government look toward recovery, it will be important for them to resume and build upon initiatives to bring a greater diversity of housing supply on line.
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