April 2020 Numbers from the Toronto Regional Real Estate Board just came in today and let’s take a look at how much Covid-19 has affected the market.
At the same time I want to break down the numbers into Condos vs. Freehold and also break them down into different price brackets to give you a better context behind the numbers and see how each sub-market fared during the lockdown.
Now before we look at the number, let me remind you that in last month’s market update video (if you haven’t watched it, I encourage you to go and watch it), I predicted that the number of sale in April would drop by as much as 40-50% compared to March, and price would drop about 10%.
Let’e see if I predicted it correctly.
In April 2020, we saw that the real estate market continued to negatively affected by the COVID-19 crisis with many buyers looking for great deal but sellers unwilling to budge or worst yet, pulling their listings off the market altogether.
Toronto Region Real Estate board released their data today and here is a simplified chart where I’m comparing numbers from April 2020 against last month (March 2020) and against last year (April 2019).
We can quickly see that the market was hit very hard by COVID-19. Number of sale is down almost 63% from March 2020 and comparing to the year before, we were down 67%.
The number of active listings was also way down as more properties were bought up but a lot less properties were put on the market. Like I said, many sellers who were on the market in March have decided to pull their listings back. Some are not very serious in selling while others are gambling on the market to do better in June so that they can get a better price by then.
The average days on market hasn’t changed much, we are still sitting at around 3 weeks.
The overall average price did drop 9% to $821K which is very similar to the numbers in April 2019.
So, did I predict correctly? Yes and No. My prediction was right on in terms the drop in average sale price but the number of sale dropped more than I predicted.
So what’s my prediction for May 2020? I think in terms of sales, we will see an increase of about 10% over April 2020. The Average sale price will also creep back up to around $850K.
This is because as the economy slow opens back up, the buyer confidence will come back and as more sellers who are sitting on the sideline coming to terms that they may actually have to sell, there will be more listings on the market and so both the average sale price and the number of sales should rise.
So that’s my quick overview of the numbers for April 2020. Hope you’ve enjoyed the information and as always, don’t forget to subscribe to my YouTube channel for more informative contents and don’t forget to follow me on instagram (@homesbysun)!
Until next time, cheers.