Back to Business…The New Reality
April statistics are in and I must admit, I am pleasantly surprised. 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 ends.Yes, those numbers are down 67% compared to April 2019 but much higher than expected, given the circumstances. The number of new homes coming 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 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 impact me? How will it affect real estate prices? All very important 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 adapted 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 physically meet with your lawyer. We have also developed Covid Safe procedures to show homes safely as required.
Considering the above, it’s no surprise that TD and other banks are predicting a 7-8% price growth this year.
Happy to meet and discuss the new realities and where there are opportunities in the market. I think the restrictions will start to be lifted by Victoria Day May 18, so life will returning to a new normalcy!
Have a great May, and stay safe!