The Toronto Regional Real Estate Board (TRREB) released its home sales report for March 2020 today. It is an unusual report, because the COVID-19 outbreak hit in the middle of the month. Below, I walk through the numbers and what they meant for buyers and sellers in Mississauga and the GTA.
This post was first published on April 3, 2020. The figures below are from TRREB’s March 2020 report.
Why the report for March 2020 splits the month
It is important to note how March breaks into two parts. The first 14 days count as pre-COVID-19. Then, the 15th to the 31st of March count as post-COVID-19. So, it is important to separate the two periods. Only then can you fully understand the report and the impact of COVID-19 on the real estate market.
Why does this matter? A monthly total can hide very different weeks. For example, a busy first half and a quiet second half can still add up to a month that looks strong. That is exactly why the report for March 2020 needs a closer look than usual. In other words, the headline number alone would give the wrong picture.
Home sales before and after mid-March
According to TRREB, home sales for the entire month of March 2020 were up by 12.3 percent compared to March 2019.
However, the pre-COVID-19 period saw strong sales. In fact, there was a 49 percent increase compared to the first 14 days of March 2019.
By contrast, in the post-COVID-19 period, sales were down by 15.9 percent compared to the same period in March 2019.
Put simply, the report for March 2020 shows a market that changed almost overnight. Buyers who were active in early March stepped back once the outbreak took hold. Many sellers also paused, as the next section shows. Meanwhile, families everywhere were adjusting to a very different daily life.
New listings in the report for March 2020
For March as a whole, new listings were up by three percent year-over-year. However, during the post-COVID-19 period, new listings were down by 18.4 percent compared to the same period in 2019.
This matters because sales and listings moved together. When fewer homes come to market, buyers have less choice. At the same time, when fewer buyers are active, sellers have less reason to list. So, both sides of the market slowed down at once. That is also why prices can hold steady for a while in a slow market. Fewer sales do not always mean lower prices, because supply can shrink as well. Still, a pause like this makes the data harder to read.
As of now, the situation looks like a standstill. The picture should become clearer after life returns to normal, hopefully soon, once a cure for COVID-19 is found.
How to read a monthly TRREB report
First, compare each month with the same month a year earlier, as TRREB does. Next, look at sales and new listings together, since one without the other can mislead. Then, watch for events that split a month, like the outbreak in this case. You can find each monthly release on the TRREB website.
What the report for March 2020 meant for buyers and sellers
For buyers, the second half of March was a time to pause and plan. It made sense to review budgets, check job security, and talk to a lender before making any move. For sellers, it was a time to think about timing and safety before listing. Above all, the report for March 2020 reminded everyone that the market responds quickly to big events.
To see how the next weeks unfolded, read my analysis of the mid-April 2020 numbers. You may also find my post on where Toronto prices might go after COVID-19 useful. Together, these posts show how the market moved through that spring.
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 at the earliest. #BeSafeAndHelpOthersBeSafe
Talk to a Mississauga real estate agent
Do you have questions about the market, buying or selling in Mississauga? I am happy to help, so please reach out through my contact page or call 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.
