What is happening in the Real Estate Market with COVID 19?
Is this a good time to Buy or Sell your home?
The Short Answer is YES!
- Although changes to traditional real estate practices are being followed to promote public safety, the real estate market is still very active during the COVID-19 pandemic. Real Estate services have continued as an essential service and did not stop. Now that we are in Stage 3, the Real Estate Market is showing a recovery and increase in strength.
- Confident buyers are taking advantage of lower mortgage rates and lower qualifying rates which increases their purchasing power. Confident sellers are benefiting from rising home prices over the years, increased profits, low inventory, less competition of homes on the market and even multiple offer situations.
- According to the Market Watch Reports from the Toronto Regional Real Estate Board the Year-Over-Year Average Selling Price for homes continues to increase as time goes on. These Market Watch Reports are published every month for the previous month's data.
- When COVID-19 restrictions for health and safety were put into place in mid-March, the total number of homes for sale has decreased. However, home prices have remained constant. The average selling price did pause or flatten for late-March and April but the May data suggests a recovery as prices are increasing again.
- The June data is more promising and shows a significant improvement in sales over the May data. The economy begins to reopen and this leads to more positive results for the Real Estate Market. Detached and semi-detached markets experienced the strongest growth in Toronto.
- The July data again shows trends of increased sales that actually set a new record for the month July with 29.5% increase over July 2019. Sales were strong during the summer months. The economy is further recovering and improving since Stage 2 and Stage 3 reopening of businesses. Confident Buyers and Sellers are making transactions. Competition for homes further drives home prices up.
- The August data again shows a strong rebound and increase in the Real Estate Market. Home sales continued to hit a record result in the GTA. Home sales were up 40.3% when compared to August 2019. As economic conditions are improving, the demand for homes is still strong and people are taking advantage of low mortgage interest rates and low borrowing costs. The housing market is very active.
Average Selling Price - Year-Over-Year Comparison
- January 2019 to January 2020 - Home prices increased 12.3%
- February 2019 to February 2020 - Home prices increased 16.7 %
- March 2019 to March 2020 (Just before Covid-19 Restrictions) Home prices increased 14.5%
- April 2019 to April 2020 (Covid-19 Restrictions in effect) - Approximately no change in prices as they increased 0.1%
- May 2019 to May 2020 - Home Prices picking up again, increased 3%
- June 2019 to June 2020 - Home Prices increased 11.9 %
- July 2019 to July 2020 - Home Prices increased 16.9 %
- August 2019 to August 2020 - Home Prices increased 20.1%
The Average Selling Price in August 2020 was $951,404. When compared to the average selling price in August 2019 at $792,134, there was an increase of $159,270 in one year.
If you are thinking of Buying or Selling, contact me and we can have an honest conversation about your situation.
I can help answer any questions that you may have so you can make the best real estate decisions for yourself and your family.