Real Estate sales in Toronto (and most of North America) started strong in early 2020, with sales volume up over 50% year over year. As COVID-19 became a reality, the market (obviously) slowed dramatically.
By the end of March:
- Sales volume declined 37%
- New Listings declined 33%
- Showings are down 77%
- Lower price points (under $1m) are still selling relatively quickly, while more expensive housing units are starting to take longer to sell.
- Supply and demand are balanced so far - prices are somewhat stable
- We anticipate that prices will drop in the coming months, as leases are broken and sellers require capital
We believe that the economic toll of COVID-19, with lay-offs, stock market decline and volatility, bankruptcies, and general fear, will erase the price gains of recent years. However, fiscal stimulus, low interest rates, and a general economic rebuilding phase will see a lot of the ‘new norm’ – home offices, less commute, and more local interaction. We believe that those metropolitan areas with strong economies (Toronto being one of the best examples), will see compelling buying opportunities.
Whatever happens in the coming months, now is not the time for buying or selling if you can avoid it. Our duty of social distancing, along with a weak market, suggest the time for buying is at least a few months away. If you can, don’t plan on selling for much longer.