The GTA Residential Real Estate Market has been severely impacted with the volume of homes sold amongst all property types during Covid-19.
The months of inventory numbers have started to rise up to just over 3.5 months. Home sales across the region declined by 67 per cent, with only 2,975 residential transactions and the number of new listings declined by 64 per cent annually in the month of April.
In the condominium market volume of sales is down 70 per cent in the GTA with prices down 1.7 per cent. Demand for condominiums has decreased slightly more than other housing types of the Residential Real Estate Market partially because of the building access restrictions condos put in place. In fact, some units are being sold “site unseen” or through a virtual tour with never physically seeing the units.
While the average home price was flat at $821,392 year over year, it rose in most areas of the GTA and declined in the City of Toronto. +6.6 per cent in Peel Region ($802,155); +6.1 per cent in York Region ($968,499); +1.8 per cent in Halton Region ($870,966); Flat in Durham Region ($612,563); -2.5 per cent in the City of Toronto ($881,424).
In the City of Toronto, detached homes and condo apartments were impacted the most by a decline of 7.8 per cent ($1,249,730) and 4 per cent ($612,300) year over year. Prices for the semi-detached homes and condo townhomes have increased by 4.2 per cent ($1,096,437) and 6.2 per cent ($697,611).
A range between 40 per cent to 60 per cent of sold to new listings ratio indicates a balanced market, above 60 per cent indicates sellers’ market and below 40 per cent suggests a buyers’ market.
With 48 per cent of sold to new listings ratio (a market competition measure determined by dividing the number of sales by the number of new listings) across GTA, we certainly landed in a balanced market, where the sellers and buyers are on equal footing. Sellers think the market is going to improve and buyers think that the end of the world is approaching. We obviously can expect a shift when then inventory drops or increases.
The market is telling us that we are most likely leaning towards the buyer’s market with over 5 to 6 months of inventory on average where the sold-to-new-listings ratio could easily fall to below 40 per cent.
In this market, only highly motivated sellers and buyers will choose to act now.
If you are planning to buy within a year, consider the incentives that are offered to you now. The home prices are more or less at the same level as 2016, yet the interest rate is way lower than in 2016!
If you are planning to sell within a year, this is your time to act now as we don’t know what the future folds for us.
Timing is everything. What is your calling?
With Love & Gratitude