Toronto is proving once again to be an incredibly resilient real estate market. As if we needed more proof!
In spite of the Covid-19 lockdown, the GTA posted some surprisingly positive real estate numbers in May 2020. While the volume of sales and listings are down ~50% compared to last year, prices are showing gains and anyone wanting to sell is finding a buyer at the moment.
This is despite restrictive Covid-19 guidelines recommended by the Toronto Real Estate Board limiting rules around open houses. It’s been especially difficult to show condominiums, some of which have restricted access to non-residents.
Here’s your May 2020 GTA real estate review!
The good.
Highlights of the reported numbers by TRREB include:
- 3% increase to the average selling price year over year (May 2019).
- 4.6% increase to the seasonally adjusted selling price compared to April 2020.
- 53.2% increase to the seasonally adjusted number of transactions April 2020 to May 2020.
- 0% change year over year to the sales-to-new listings ratio. Remains at 51%.
The bad.
- 53.7% decrease in the number of sales May 2019 (9,950 transactions) vs. May 2020 (4,606 transactions)
- Properties sat on the market for an average of 32 days May 2020 vs 27 days in May 2019.
The ugly.
While the numbers are encouraging it doesn’t mean we are out of the woods yet. There remains a considerable amount of uncertainty and headwind in the coming months that could impact any further growth to the buoyant GTA market.
Uncertainty includes:
- If a second wave of the Corona Virus will force further shut downs.
- The deferral cliff – mortgage lenders offered borrowers a 6 months deferral program ~ September 2020 the 6 months will expire which could force some homeowners to face the music and sell. Desperate sales will drive the price and stability of the market down. The extent isn’t known yet.
Meet Mark Savel.
One of my most trusted colleagues and realtors in Toronto is Mark Savel. He has a great handle on the market and is always insightful in his perspective. You’ll get to hear some firsthand anecdotal stories from the trenches.
Join us as we do a deep dive into the May TRREB numbers and metrics.
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