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!).

POSTED on 04-23-2020

Torontonians have been staying home and practicing social distancing for more than a month now. Have things slowed down considerably for you, or are you one of the people whose work has really picked up during this pandemic, including our amazing essential service workers and those sacrificing for all of us on the front lines? Either way, we are rooting for you!

Since Realtors have been declared essential service workers, we are both still working, but we are now mostly working from home, and we’d be lying if we said we hadn’t succumbed to many of the clichéd “quarantine” activities. Yes, we’ve baked banana bread, organized every drawer and cupboard, and even shaved our heads! We’ve also had plenty of Zoom and Facetime catch-ups with family and friends, and are finding ourselves perusing animal rescue websites for cute pups in need. Who knows – maybe we’ll have a furry friend in the house before this is all over!

As for the Toronto real estate market, just like in our daily lives, the month of March is best described as being divided into two distinct periods – pre-COVID-19 and post-COVID-19. Overall, the month of March reported 8,012 home sales through TRREB’s MLS System, up 12.3 per cent compared to March 2019. The “pre-COVID-19” period from the 1st to the 14th was the main driver of these strong March figures at 58 per cent of the month’s total sales and a 49 per cent increase compared to the same period in 2019. The “post-COVID-19” period from the 15th through to the end of the month saw only 42 per cent of the month’s total sales and a 15.9 per cent decrease compared to the same period in 2019. While the number of sales and listings decreased as the month wore on, it’s worth noting that the average sale price remained 14.5 per cent higher than March 2019’s average prices. Even the last few days of the month saw prices 10.5 per cent higher than the same days in 2019. In short, March was strong overall compared to 2019, but COVID-19 and social distancing measures definitely had an impact in the later half of the month. You can read more about the March numbers in TRREB’s official press release.

We’re now halfway through April, and we’re continuing to see a decrease in the number of new listings hitting the market. Sales continue to decrease, and those listings that do sell are staying on the market for much longer than we’d expect during what would normally be one of the busiest months for real estate. We suspect we’ll continue to see the market slow down until at least mid-May, correlated closely to the social distancing measures in place by all levels of government.

Once these social distancing measures are lifted, we expect the market to bounce back with a vengeance as months of pent-up demand from buyers is released, coupled with those who postponed listing their homes entering the market in great numbers, possibly as soon as this summer or fall.

Ultimately, as of today we still stand by our thoughts from several weeks ago when we recommended that sellers hold off unless they absolutely need to sell, and that now is a good time for serious first-time home buyers to get into the market and for investors to pick up an investment property without the intense competition we saw earlier this year. You can read our recommendations along with how we’re adapting our business practices for COVID-19 again here.

As always, please reach out to us if you have any questions, or if you find yourself needing any assistance during these peculiar and troubling times. We can pick up groceries, run errands, and even just hop on a Zoom call to chat and catch up. The only way we will get through this is together, and we’re here to help!

POSTED on 03-31-2020

Now that we’re a few weeks into our collective social distancing to try and flatten the curve of COVID-19, you might find yourself wondering how the current situation has affected the Toronto real estate market. With the government declaring real estate an essential service, one thing’s for sure – no matter what’s going on in the world, people will always need help finding a place to live. Some have already bought a new home and now need to sell their current home. Others have personal reasons for moving, such as living within a preferred school district, closer to a loved one, or nearer to a new job opportunity. Regardless, whether you’re thinking of selling or buying, or just plain curious, read on for our take on the market and to learn how we’re adapting to this ever-changing landscape.

Market Update

In the spirit of social distancing, Realtors have been asked by our governing bodies to stop all open houses and to minimize showings and face-to-face business in our collective effort to stop the spread of COVID-19. While this is a big change from how we usually do things, there are still a number of new listings hitting the market. What we have noticed is that there are fewer serious buyers presently looking, so competition has significantly decreased. The past few weeks have also seen fewer bidding wars and fewer sales being artificially inflated due to intense competition. This means that now is a good time for serious buyers to purchase a property.

Contactless Closing, Essential Services, and Clauses

Realtors are not the only group that have been deemed by the government as essential: lawyers, movers, and other professions related to real estate are also essential services and will continue to work throughout this crisis. For the first time ever, all closing activities are now contactless, with traditional lawyer in-person signings moving to electronic platforms, all funds now transferred via wire transfer, and keys exchanged through lockboxes left at the property. Essentially, aside from physically visiting a property, you can now purchase and sell a property from the safe comfort of your own home.

We have also created a series of clauses designed to protect both buyers and sellers and ensure that closings are not adversely impacted in the event that anyone is sick and must self-quarantine, or in the event that any services necessary for closing are not operating, including banks, lenders, lawyers, and land registry offices.

In short, while selling may be more challenging these days, it is a good time to buy, and regardless of whether you’re selling or buying, we have adapted the way we do business to keep our clients, the public, and ourselves safe as we work together to beat COVID-19.

We hope you find this update helpful! Please reach out to us if you have any questions or even just to chat.

Stay safe and healthy, and to all the front-line workers and essential services – thank you!