The TRREB market report April-2020 shows just how hard the first weeks of COVID-19 hit home sales in the Greater Toronto Area. Yet the price numbers tell a calmer story. Here is what the report says, and what it could mean for buyers and sellers.
This post was first published on May 9, 2020. The figures below are from April 2020.
Sales and listings in the market report April 2020
According to the Toronto Regional Real Estate Board (TRREB) report for April 2020, sales in the month were down by a whopping sixty-seven percent. At the same time, new listings fell by a similar rate. Both figures compare with the same month a year earlier, in 2019.
In other words, far fewer people bought homes, but far fewer people listed homes, too. That balance matters, because it helps explain why prices did not fall as sharply as sales.
Prices in the market report April 2020
It is interesting to note that the average home sale price was up by 0.1% compared with April 2019. That held true even though it fell by almost 12% compared with last month, March 2019.
So on a yearly basis, prices were flat to slightly higher. On a monthly basis, however, they dropped. This is why it is important to look at both views before drawing any conclusion. You can compare these numbers with my review of the March 2020 sales report.
Days on market and property types
Another interesting fact is the number of days a property stayed on the market. Compared with April 2019, it was down 7.7%. That detail from the market report April-2020 suggests that good homes still sold quickly, even in a very quiet month.
Also, the results were not the same for every type of home. The major impact on the year-over-year price decline came from the condominium apartment and detached home segments. By contrast, the semi-detached and townhouse segments saw an increase in their annual average prices.
Buyers’ market or sellers’ market?
A common question is whether this is a buyers’ market or a sellers’ market. There is no simple answer, and it depends.
The average sale price went down compared with last month. So you could say buyers may have a chance to find a bargain. On the other hand, new listings went down by 64%, and average days on the market also went down by almost 8%. That creates a supply and demand squeeze, so sellers may have an edge. I explain this idea further in my post on how supply and demand set prices. Taken together, the market report April-2020 points to a market on pause, not a market in freefall.
What the market report April 2020 says about the future
It is also interesting to note that sale prices were still up by a slight margin compared with the same month last year, after falling almost 8% compared with last month.
What it tells us is that the trend in real estate before the COVID-19 pandemic was moving fast toward the north. Once markets get back to normal routines, one can expect the same northward trend to continue. The pandemic disturbed that trend, but it did not erase the demand behind it.
For buyers, that means now may be a time to prepare rather than wait. Get a mortgage pre-approval, list your must-haves and learn the neighbourhoods you like. Then you can act quickly once more homes come to market. Sellers, meanwhile, may find that patience pays off. If you do not need to move right away, use this time to plan repairs, clear clutter and gather your paperwork. That way, your home is ready to shine when buyers return in larger numbers. Next, read my follow-up on where prices could go after COVID-19.
Read the full TRREB report
Follow this link for the full TRREB market report April-2020: TRREB Market Watch, April 2020. Meanwhile, please take care of yourselves and follow the safety precautions set by healthcare professionals. Please pray for the safety of all, and for a cure for COVID-19 to be found as soon as possible. #BeSafeAndHelpOthersBeSafe
Talk to a Mississauga real estate agent
Do you have questions about what this means for you? I am happy to help. Please send me a message or call me on my direct line at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
