TRREB’s April GTA Data.
Toronto, May 5, 2020
By Ivan Kalinin
Toronto Regional Real Estate Board has released April numbers, so let’s dive into what has been happening on the Toronto real estate market.
As expected, the public health safety measures against the spread of COVID-19 has slowed down the activity on the market resulting in a decline of 67% year-over-year. I am sure this comes as no surprise, as many owner and tenant occupied listings are not being shown as much as before, leaving only vacant properties to be a fair game in terms of showings. Some condo buildings have prohibited any showings altogether, so the only way to see a place would be through the virtual tour (and not all listings have them).
Hence the current market is discouraging most sellers from putting their properties on MLS this spring. This is reflected in a 64% decline in new listings coming on the market last month year-over-year. This is a scary number, but no, we are not in a complete slump like many believe. Even though this is one of the slowest spring markets the city has seen in a long time, Toronto condos still don’t sell at half the price, properties still trade (albeit much slower) and there are even multiple offers here and there. In fact, we got into a bidding war with my clients (and won!) when we were buying this beautiful condo with 450sqft terrace in Moss Park.
It may be logical to assume that those sellers that put their properties on the market now are in need to sell and hence will be more negotiable on price. There are buyers out there that keep looking and thus keep up the market momentum going. Currently, Toronto has settled comfortably into a Balanced Market with a 48% Sales to New Listings Ratio (SNLR). In other words, if you are looking to sell your home, this doesn’t mean that you will sell your home at a lower price. Here is how I work with my seller clients to ensure that their homes are selling at a maximum price.
SNLR measures market competition by dividing number of sales by the number of new listings. Anywhere between 40-60% and the market is balanced. Above or below this threshold represents Sellers’ or Buyers’ market, respectively.
The average home prices in Toronto Region are now flat compared to April 2019 ending the month at $821,293. Detached homes and condos dropped 3.5% and 3.6% each, but semis and condo townhouses grew by 7% and 3.8% each in the GTA.
According to Jason Mercer, TRREB’s chief analyst, this decline in prices there are still “enough active buyers relative to available listings to keep prices in line with last year’s levels.”
Now in the City of Toronto the picture is a bit different with a 2.5% dip with an average home (all types of homes) price $881,424. Detached homes saw the biggest decline of 7.8% year-over-year to $1,249,730. Condos dropped 4% and are now averaging at $612,300. However, average prices for semi-detached houses and condo townhouses increased by 4.2 per cent to $1,096,437, and 6.2 per cent to $697,611, respectively.
The market conditions have changed drastically, but it does not mean that it will continue staying this way long term. Any market correction in the city is usually followed by a surge in sales with the pent-up demand and the need for housing. No one can say how we will fair out of the emergency lock down from the economic standpoint and how (and when) everything will go back to normal. One thing is clear – right now is a great time to go shopping, the interest rates are low, bidding wars are rare and buyers can enjoy a market where they can put a conditional offer on a property to ensure that they are making a purchase with a clear consciousness. Are you in the market? Here is how I make the buying process seamless for my buyers.
If you like talking real estate half as much as I do and are going to participate in the market in 2020, come chat and have a coffee. And if you are looking for a property as an investment, remember our super-popular private investment tours now booking in early 2020. Click here to book.
Ivan Kalinin is a sales agent at Key Toronto Real Estate Group. Zoocasa Realty Inc. – Brokerage independently owned and operated, He can be reached at 416 858 8085. Not intended to solicit clients already under contract.
