May 5, 2020 Dear Friend,
e April statistics are in, and I must admit, I am amazed. Toronto Real Estate Board members sold 2,975 homes through the MLS system. Each home sold has someone who purchased it, so there were a total of 5,950 transactions. Yes, those numbers are down 67% compared to April 2019 but much higher than I expected, given the circumstances. The number of new homes that came on the market was also down 64% which makes sense as the number of people being influenced by Covid would be the same, both in wanting to buy and wanting to sell.
The average selling price year to date as of April 30 was $881,165 up 7.5% over 2019’s price of $ 819,316. Of note was that the average days on the market before the home sold in April 2020 was 24 compared to 26 in April 2019, an indication that demand is still high.
Without a doubt, Covid has impacted real estate markets and our economy as a whole. Is there a recession? How long will it last? How will it change me? How will it affect real estate prices? All essential questions. I wish I could answer them all for you. But I do know the following:
There is a pent up demand to purchase homes. With lower interest rates, more people can qualify to purchase. Immigration continues. Yes, many companies and their employees have been hurt, but many other companies have hired extra workers because their business is booming. Companies that have adapted to the new way of business are doing well. In our Company, we have changed to doing face to face meetings via Zoom, Go to Meeting or Facetime, all virtual ways of consultation. We are also conducting Virtual Open Houses, using electronic document signing, Virtual Tours, and legal closing services where you do not have to meet with your lawyer physically. We have also developed Covid Safe procedures to show homes safely as required. Our adaptations are working, and our Company of 800 sales representatives averaged 100 transactions a week in mid-April when Covid concerns were at their highest.
Considering the above, it’s no surprise that TD and other banks are predicting a
7-8% price growth this year.
I honestly believe now is a smart time to buy. Give me a call and let us chat. I will be happy to consult with you, give you all the facts and figures so you can make the right decision for you and your family.
I hope the restrictions will start to be lifted by Victoria Day on May 18, so life will return to new normalcy!
Have a great May, and still stay safe!
Your Friend in Real Estate
STEVEN MAISLIN, ABR, SRS, SRES, IRES, RENE, Broker
ABR: Accredited Buyer Representative
IRES: International Real Estate Society
Realtron Realty Inc., Brokerage
416-222-2600 - 1-800-567-LIST (5478)
182 Sheppard Ave West, Toronto, On. M2N1M8 Canada