POSTED on 06-17-2020
Lots has changed since our last newsletter in April, and the Toronto real estate market is no different. Social distancing measures surrounding COVID-19 have started to loosen up as more businesses slowly reopen to the public, with new ways of working and new measures for keeping people safe while still trying to go about daily life. Canadians and people across the world have said loud and clear that they have had enough with the systemic racism that so many face on a daily basis, and protests and activism continue to push for much needed change. Oh, and we did end up getting a furry friend like we had hoped.
He’s not even four months old and already weighs 40 lbs. He knows “sit” and “lay down”, sleeps through the night, and is house- and crate-trained, though we are still working on “stay” and leash training.
He loves to play-bite, but we’ve read and heard that he will hopefully grow out of this with training and lots of patience (and more than a few ruined clothes). He’s kept us busy, that’s for sure!
When it comes to the Toronto real estate market, the month of May saw a dramatic increase in activity compared to the mid-March to April slowdown caused by COVID-19. Compared to April 2020, there was a 55.2 per cent uptick in actual sales and a 47.5 per cent increase in the number of new listings in May. On the ground, we experienced this increase in activity in our business as well. It turns out it probably wasn’t the best time to adopt a puppy!
When it comes to home prices, numbers are still increasing across the GTA. Compared to April 2020, the May 2020 MLS® Home Price Index Composite Benchmark stayed the same, though it was up 9.4 per cent compared to the same time last year. Average selling prices for all homes combined saw a three per cent increase in May 2020 compared to the same month in 2019, and a 4.6 per cent increase compared to April 2020.
That’s not to say that the market still isn’t feeling the impacts of COVID-19: GTA REALTORS® reported 53.7 per cent fewer sales in May 2020 compared to May 2019, and 53.1 per cent fewer new listings.
In terms of the condo rental market, one- and two-bedroom condo rental transactions were down by 30.8 per cent and 26.7 per cent respectively in May 2020 compared to May 2019. Just as May 2020 brought with it a dramatic increase in activity in the housing market, the rental market also saw a substantial increase in transactions month-over-month, with 1,290 one-bedroom rentals (compared to 754 in April) and 820 two-bedroom rentals (compared to 489 in April). Rental pricing did see a dip compared to last year though, with the average one-bedroom condo renting at $2,086/month and the average two-bedroom condo renting at $2,740/month in May 2020, down by 5.1 per cent and 5.6 per cent respectively compared to May 2019.
You can read the full TRREB news release here.
June 2020 has continued to be quite busy for both of us, as we seem to be experiencing a delay to the busy Spring market timed with the relaxing of social distancing measures. The buyers are out again in full force, and similarly to January through to early March 2020, there is a real lack of inventory, causing some stiff competition, especially in the single family homes segment of the market around $1,000,000. The one-bedroom condo market has slowed a touch – things are still moving, but with only a few offers instead of offers in the teens and twenties for a one-bedroom condo. It’s too early to tell whether the summer will slow down, as is typical, before the busy Fall market, or if things will continue to pick up without a break before then. With so many different news and information sources and differing views about the economy and the real estate market, and with so much uncertainty surrounding COVID-19, like many people, we are just taking things day by day.
Like we said in previous months, please reach out to us at any time to talk about the market, for help of any kind, and now to arrange puppy play dates (please help us tire him out!).