Have Priced Dropped?
Wednesday May 13th, 2020Share
I'm shooting this video on May 9th, 2020, which means we've got all the data from April 2020. Let's go ahead and look at the stats. We’ll answer, the question of; how has Covid affected the real estate market? This is the question everybody's wondering. It's how has the real estate market changed? Have prices changed? Has the rental market changed? And how has it affected home ownership? So let this video be your guide. We're going to discuss the average price for all categories of homes. We are going to go over some important statistics like days on market, the health of the market, whether it is a buyer's market or a seller's market, and what markets are suffering most, which markets are doing the best.
In the GTA, in April 2020, there were only 2975 residential transactions. This is down by 60% from April 2019. Although don't get confused, this doesn't necessarily mean that prices have dropped. It just means naturally there are less buyers and there are less sellers in the market. Overall, people are less comfortable going out, looking at property and understandably so. Although the fact is interest rates are still very low and people do ultimately have to buy, which is why there is that fraction of buyers out there. As I mentioned in my previous video, in case you did not tune in... There are two serious types of buyers we are seeing in today's marketplace. Those are people who have either sold their home pre-covid, or they are tenants who have lease contracts expiring. The number of new listings, was only 64 in April 2020. And this is 64% less than the number of new listings which came out in April 2019.
My predictions are that when things normalize a little bit, then a flourish of new listings are going to come on the market, and there will be more buyers, which makes it a great time to buy and to sell. Here is a statistic which really caught me off guard, and I think you'll find it surprising as well.. It's that in April, the average sale price was higher than it was in April 2019. So, yes, the price has obviously been affected by Covid and prices have dropped marginally, although the prices are still higher than what they were last year. The average price is $821,392 which is up by 0.1% Versus the average price in April 2019, which was $820,373. This encompasses everything, Peel, Halton, Durham, Toronto and York region. It also encompasses all types of home styles, whether it's a detached, semi-detached, a townhouse or a condo apartment.