The Greater Toronto Area real estate market has clearly been impacted by COVID-19. However, real estate has been identified as an essential service, and Realtors have continued to work with clients that absolutely have to move. Realtors are taking the necessary precautions to keep everyone safe by wearing gloves and masks and ensuring that clients viewing homes are healthy.
In the month of May, we started seeing more activity than in April. Sales increased by 55% in comparison to the month of April 2020 but sales were however 53.7% below the sales volumes for the same period of May 2019. However, given the pent up demand and the low inventory we saw an average price increased by 3% in the month of May.
We are starting to see a return in consumer confidence. Our current situation is a health crisis and not an economic crisis and as we start to open up the economy we are starting to see an increase in sales activity.
In May 2020 the average sales prices increased by 3.0% to an average sale price of $863,599.
However, when we look at the different house types the percentage of price changes did vary. Detached homes saw a price drop of -0.9%, semi-detached homes actually saw a price increase of 4.8%, and townhomes also saw a price increase of 3.1%, while condos saw the largest price increase 6.0%%.
The steady population growth and low borrowing costs are helping the real estate market bounce back relatively quickly as the economy begins to open up again.
The projection is that we will see the spring market activity spill into the summer months and fall months.
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