The necessary social distancing and economic impacts associated with COVID-19 clearly impacted home sales and listings throughout April 2020.
The competition for those properties already on the market when COVID-19 came to Canada ensured a tiny increase in the average home price last month but only in the semi-detached market; both the detached and condo markets saw a decline. However, real estate transactions and new listings were strongly affected by the city shutdown, plummeting 67 per cent and 64.1 per cent respectively, compared to April 2019.
Here's the Toronto Real Estate Board's analysis for April 2020, as well as the entire calendar year, with graphics courtesy of Market Watch:
TORONTO, APRIL 4, 2020 - Toronto Regional Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,012 home sales through TRREB’s MLS® System in March 2020 – up by 12.3 per cent compared to 7,132 sales reported in March 2019.
• Home Sales
Greater Toronto Area REALTORS® reported 2,975 residential transactions through TRREB’s MLS® System. This result was down by 67 per cent compared to April 2019. Weekday sales remained within a relatively steady range during the month, averaging 130 per day.
• New Listings
New listings amounted to 6,174 in April 2020 – down on a year-over-year basis by a similar rate compared to sales (-64.1 per cent).
• Home Prices
The average selling price for April 2020 transactions was $821,392 – up by 0.1 per cent compared to the average price of $820,373 reported for April 2019. The semi-detached and townhouse market segments experienced annual average price growth above the rate of inflation. The condominium apartment and detached segments experienced year-over-year price declines on average.
The trend for the MLS® Home Price Index Composite Benchmark, which had been on an upward trajectory since the beginning of 2019 flattened in April. On a year-over-year basis, the Benchmark was up by 10 per cent.
The MLS® HPI indices represent prices for typical homes with consistent attributes from one period to the next. The fact that the MLS® HPI was up year-over-year by a greater rate than the average selling price suggests that the share of higher end deals completed in April 2020 versus April 2019 was down.
If you'd like to see more in depth figures - by housing type and/or geographical area - here's the complete set of April 2020 TREB Stats.
These really are unprecedented times! TRREB CEO John DiMichele was quoted saying that past recessions and recoveries do not necessarily provide the best guide as to how the housing market will recover from the impact of the COVID-19 pandemic. "A key factor for the housing market recovery will be a broader reopening of the economy, which will result in an improving employment picture and a resurgence in consumer confidence. To this end, it is reassuring that the province is taking measured and carefully monitored steps towards safely opening up some parts of the economy,” said Mr. DiMichele.
Here's an infographic created by Bosley Real Estate that easily demonstrates the gravity of April's statistics.
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