Weekly Toronto Real Estate Market Update #002
Monday Apr 20th, 2020Share
CLICK TO WATCH THE FULL VIDEO ON YOUTUBE: https://youtu.be/aLrPt5Es0PE
What’s up everyone!
Welcome to this weeks market update.
Here we have the number of homes sold every week last year (in blue) compared to this year in orange.
You can see in both years that things pick up in the Spring. This is what we normally expect in any given year under regular market conditions. More homes go up for sale and more buyers enter the market.
This year, you can see a huge drop in activity at the beginning of March. I talked about this in another video, that it was around this time we started to see all kinds of impacts in Canada due to the coronavirus. What this is telling us is that home sales have fallen.
So how has this affected home prices? Let’s take a look
The average home price was trending higher overall compared to last year. It was only until the last week of March this year where we saw the average home price on par with last year. So if you’re wondering if home prices are falling, this should tell you exactly what’s going on.
Now let’s take a look at condos.
Condos in Toronto saw increasing activity throughout the first two months this year. During the second week of March, sales dropped to the point where they matched sales volume last year.
You can see that as of today, sales are almost coming to a dead stop, as they’re now lower than what they were in winter.
Condo prices were much higher on average compared to last year. As you might have guessed, the average price started to come down.
But what’s really interesting is that they didn’t start falling around March like everything else. Condo prices were impacted as early as the first week of February, a whole month before the rest of the housing market.
So here’s what I think. Toronto condos get a lot attention from international investors. So what could be happening here is that if some parts of the world, like Asia and Europe, felt the impact of the coronavirus earlier in the year than North America, then perhaps investors from those parts of the world pulled back because of economic uncertainty. It’s definitely a financially difficult time for many people around the globe.
Here’s something interesting. Did you notice the uptick in average prices last week? Does this mean condo prices are already on their way back up? Watch next week’s video to find out.
The orange line in this graph represents the number of new listings we’ve seen this year. As you can imagine, that number started decreasing at the beginning of March.
The blue bar graph shows the number of listings that are on the market are getting cancelled.
You can see that in the middle of March, sellers started to lose confidence and started pulling their homes off the market.
The trend over the past three weeks is that we’ve seen more homeowners are taking their listings down than there are homeowners putting them up for sale.
Overall, this is going to create a short supply of inventory, but at the same prices are at what the were in last year.
So as you can see, things have been changing every single week.
And because of that, I’ve decided to make this into a weekly series. Videos will come out every single Monday.
I’ll chat about price changes, housing inventory challenges, and other key market indicators.
If there’s something specific you want to know more about, put a comment down below and I’ll update you next time.￼
So stay updated, follow me Instagram, Facebook and YouTube where I’ll be posting this series every single Monday.
So that’s it everyone. Hope you enjoyed the video.
Happy Easter for those of you who are celebrating this weekend!
Until next Monday, keep up the positivity, stay safe, and thank you for watching!
Real Estate Education • https://www.youtube.com/playlist?list=PLVt1mFxDHaHpbHJlypoQnAjJw_xYU_I5y
Pre-Construction Condos - Everything You Need to Know • https://www.youtube.com/playlist?list=PLVt1mFxDHaHp5MIXX5mhfpHDA_h4yhUp_
Toronto Regional Real Estate Board (TRREB) • https://www.trreb.ca/
Ontario Real Estate College • https://www.orea.com/
Real Estate Council of Ontario (RECO) • https://www.reco.on.ca/
Canada Mortgage and Housing Corporation (CMHC) • https://www.cmhc-schl.gc.ca/
Canadian Real Estate Association (CREA) • https://www.crea.ca/
Tarion • https://www.tarion.com/about/warranties-plan-act-and-regulations
Humber College Real Estate • https://humber.ca/realestate/
National Association of Realtors • https://www.nar.realtor/
The Star • https://www.thestar.com/business/real_estate/2020/05/18/is-covid-19-an-unexpected-shot-at-home-ownership-for-first-time-gta-buyers.html
CTV News • https://www.ctvnews.ca/business/pattie-lovett-reid-three-real-estate-trends-emerging-from-the-coronavirus-pandemic-1.4950069
Global News • https://globalnews.ca/news/6688074/ontario-doug-ford-coronavirus-covid-19-march-17/
City News • https://toronto.citynews.ca/2020/05/23/trinity-bellwoods-packed-coronavirus/
Daily Hive • https://dailyhive.com/toronto/trinity-bellwoods-cherry-blossoms-fences-enforcement-patrol-coronavirus
ReMax • https://blog.remax.ca/no-nosedive-ahead-for-canadian-real-estate-prices-re-max/
My website • https://www.fredericktam.com/
Facebook (@fredtamrealestate) • https://www.facebook.com/fredtamrealestate/
Instagram (@fredtamrealtor) • https://www.instagram.com/fredtamrealtor/
Google • https://goo.gl/maps/yswE7YVmG8C2
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