In May, at the height of the traditionally busy spring market, sales were undoubtedly the lowest they’ve ever been since maybe the 1960s with a 54% drop from last year with just 4,606 houses and condominiums changing hands in all the districts.
Condo townhouse and high-rise suite sales were down by 58% with a 30% share of the market and just 1,371 units being sold. This however is a 50% jump over April 2020 sales!
The May average sale price for all GTA homes came in at $863,599, up about $40,000 from the month before and a 3% increase 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 May compared to historical numbers was lower by a huge 43% 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 although showing numbers are improving as we go along.
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.
While in April that ratio dropped dramatically to 28.2% indicating an almost neutral market, May came in at 40.2% which is edging into moderate seller market territory.
The days-on-market average for GTA / Toronto homes was 24 days, 5 days slower than April.
Here’s a snapshot summary of the significant real estate milestones for Toronto in May 2020 as the coronavirus took a hold on our economy.
- May sales down 54% compared to last year (4,606)
- The ratio of sales-to-listings increased slightly to 40.2% in May – a nice bump into ‘moderate’ seller market territory
- The May average sale price came in at $863,599– about $30,000 above May 2019 but a negative $40,000 decline from the average in March of 2020
- The big unknown is how long our social distancing requirements, restrictions on safe showings and the absence of open houses will affect our usually robust spring real estate market.
- The GTA real estate market overall averaged 24 days-on-market
- Detached home sales in May 2020 with a purchase price over $2,000,000 were down 56% (115 houses) while condo apartment sales over $2M were lower by 59% (7 suites) compared to May 2019
- The CONDO share of the market was relatively steady at 29.8% during the month
- Downtown condo active listing numbers were UP by 10.7% in C01 and by 12.4% in C08 from last year at this time
- May condo sales showed a dramatic drop… down by 56% in C01 and a decline in C08 by 59% compared to 2019
- The downtown condo days-on-market average was 20 days in C01 and 23 days in C08
- The ratio of sales-to-listings for condos downtown showed significant declines in C01 (from 70% in 2019 to 28.1%) and in C08 (from 73% in 2019 to 26.6%) – They decreased more than the overall market (from 50% in 2019 down to 40.2%).
- Influenced by the lower demand and higher inventories due to the virus effect, condo values still beat the averages seen in May 2019 and appreciation gains over the last 12 months were held at lower numbers although still positive
- 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 May 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. The question is… what will happen to numbers once the ‘spring rush’ is past and we’re still in some level of corona virus lockdown.
- There are multiple points of view as to ‘should you list now or wait’ and ‘what will happen to prices’. The answers to each of those questions will hinge in part on your personal situation and you need to get specific advice based on that.
Watch the video to get the complete May 2020 Market Report details.
Here's the complete text version of the May 2020 Toronto Real Estate Market Report to read.
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