The TRREB home sales figures for mid-April 2020 show the first clear impact of COVID-19 on the GTA housing market. The Toronto Regional Real Estate Board (TRREB) has released sales data for the periods before and after COVID-19 arrived.
This post was first published on April 23, 2020. The figures below cover April 1 to April 17, 2020.
Sales fell sharply by mid-April 2020
We can see a sharp decline in both sales and new listings from April 1 to April 17, 2020. Total residential transactions during the first 17 days of April went down by a remarkable 69%.
That is a huge drop in a very short time. Many buyers paused their search, and many sellers chose to wait. So these numbers reflect a market that had suddenly hit the brakes.
New listings in mid-April 2020
Total new listings saw a similar effect. They went down by 64% over the same period.
This matters because prices depend on the balance between buyers and sellers. When both sides step back at about the same pace, the balance does not change as much as the headline numbers suggest. In other words, fewer buyers were chasing fewer homes. As a result, the market was quiet, but it did not fill up with unsold homes.
Prices and the pandemic
The average selling price also took a hit. It went down by 1.5% during the same period, compared with a year earlier.
Having seen these numbers, one can clearly see the impact of COVID-19 on the housing market. Still, a 1.5% dip in prices is small next to a 69% drop in sales. That gap tells us that owners in mid-April 2020 were mostly holding firm on price rather than selling at a discount.
What comes after mid-April 2020?
We don’t know how long these conditions will last, or when the pandemic will end. So nobody can say for certain what the trend will be after COVID-19.
However, consider the momentum we had before COVID-19. It had boosted sales by 12.3%, and the average sale price of homes had risen by 14.5%. Also, many home buyers have waited because of the current situation. Once they return to the market, we can expect it to heat up again.
It appears that the first period after COVID-19 could see lower sale prices and perhaps low inventory, too. But as consumer confidence builds, activity levels should respond. Then both sales and prices may take an upward trend.
What buyers and sellers can do now
If you are a buyer, use this quiet time to prepare. Get your mortgage pre-approval, review your budget and learn the neighbourhoods you like. Then you can act quickly when the market picks up. If you are a seller, think about timing. Small repairs, a thorough clean and good photos can help your home stand out when buyers return.
Homeowners who are not planning to move can also take comfort from these figures. A short-term drop in sales does not change the value of a home you plan to live in for years. Instead, focus on what you can control. Keep up with your mortgage payments, and call your lender early if your income has been affected. Many lenders have options for owners facing a hard time. Also, keep records of your home’s upkeep, since they help when you do decide to sell.
For more context, read my full April 2020 TRREB market review and my thoughts on where Toronto prices could go after COVID-19. Both build on these mid-April 2020 figures.
Watch the TRREB video and read the report
Please watch the TRREB video on these figures below.
Follow this link for the full mid-April 2020 report: TRREB Market Watch infographic, mid-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.
