In April sales were undoubtedly the lowest they’ve ever been since maybe the 1960s with a 67% drop from last year with 2,975 houses and condominiums changing hands in all the districts.
Condo townhouse and high-rise suite sales were down by 70% with a 30% share of the market and just 905 units being sold.
The April average sale price for all GTA homes came in at $821,392, down $80,000 from the month before and about flat compared to one year ago.
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving. The inventory average for the month of April compared to historical numbers was lower by a huge 41.4% compared to last year at this time.
It’s clear that the coronavirus has hit our market hard… both buyers and sellers have been intimidated by the threat of possible virus transmission.
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in. 24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
In March that ratio finished at 75% - in April, that ratio dropped dramatically to 28.2% indicating an almost neutral market.
The days-on-market average for GTA / Toronto homes was 19 days, 5 days slower than March.
Here’s a snapshot summary of the significant real estate milestones for Toronto in April 2020 as we sunk into social distancing and staying home mode to restrict the virus spread.
- April sales down 67% compared to last year (2,975)
- The ratio of sales-to-listings declined dramatically to 28.2% in April – an extreme drop into ‘neutral’ market territory
- The April average sale price came in at $821,392– almost identical to April 2019 and a negative 9% decline from the average in March of 2020
- This big unknown is how long our social distancing requirements, restrictions on safe showings and the absence of open houses will affect our usually robust real estate market.
- The GTA real estate market overall averaged 19 days-on-market
- Detached home sales in March 2020 with a purchase price over $2,000,000 were down 70% (65 houses) while condo apartment sales over $2M disappeared entirely (0 suites) compared to April 2019
- The CONDO share of the market was relatively steady at 30% during the month
- Downtown condo active listing numbers were down by 9.5% in C01 and increased by 10.6% in C08 from last year at this time
- April condo sales showed a dramatic drop… down by 72.4% in C01 and declined in C08 by 54.3% compared to 2019
- The downtown condo days-on-market average was 16 days in C01 and 21 days in C08
- The ratio of sales-to-listings for condos downtown showed significant declines in C01 (from 74.7% to 20.3%) and in C08 (from 78.3% to 29.5%) – They mirrored the overall market (from 75% down to 28.2%).
- Influenced by the lower demand due to the virus effect, condo values retreated to averages last seen in April 2019 and appreciation gains over the last 12 months seemed to have been lost
- The big question everyone has is “Is this to be the new normal OR will market activity and prices rebound once this crisis is under control?”
- Sales numbers are down 65-75% in many 905 neighbourhoods with April bringing flat to slightly positive appreciation to detached, townhouse and condo apartments in the 905.
- With the long-term impact of the coronavirus epidemic uncertain, there will certainly be a short-term (2-6 month) adjustment to sales numbers and prices as we work through this crisis. There are multiple points of view as to ‘should you still list’ and ‘what will happen to prices’. The answers to each of those questions will hinge on your personal situation and you need to get specific advice based on that.
Watch the video to get the complete April 2020 Market Report details.
Here's the complete text version of the April 2020 Toronto Real Estate Market Report to read.
Keep Up To Date With Toronto's Real Estate Market
Every month we communicate with our readers to give them accurate insights and statistics about what's happening in the Toronto and GTA real estate markets.
Subscribe to our free monthly FYI Newsletter HERE.