Toronto & York region ,March Home Sales Weaken in Response to COVID-19

The overall picture for home sales activity through the Toronto Regional Real Estate Board (TRREB) in March shows a strong year-over-year sales increase of 12.3 per cent with 8,012 homes changing fingers compared to 7,132 sales the year prior.
compare to March 2019 New listings across the region increased just three percent to 14,424 and the average home price increased 14.5 per cent to $902,680.
In March 2020 in the City of Toronto in particular, there were 2,771 home sales, indicating a 12 per cent increase since February 2020, and a 9 per cent increase since last March. Home prices remained unchanged since February, but increased 19 per cent annually to $987,787.
However, despite an overall increase in sales activity, March was characterized by two distinct periods – the period before and the period after COVID-19. These measures included social distancing protocols, economic relief packages, two time emergency Bank of Canada rate cuts, as well as a number of projects targeting property owners and tenants.

Toronto & York in Buyers’ Market Region After COVID-19 Measures

With increasing number of home buyers and sellers choosing to stay out of the market in response to growing COVID-19 concerns and the resulting government measures, the region may experience a rapid change in market conditions over the months of April and may. There were 3,369 sales reported from March 15 – 31, in what TRREB is described as the “post-COVID period,” which is 15.9 per cent lower than the same period last year.
The slowdown in housing activity was most noticeable following Ontario’s emergency declaration on March 17 and resulted in a noticeable change in sales to new listings ratios in favour of buyers’ market conditions across almost all the home types in the area. There were just under half the number of sales across all home types “about 53 per cent drop” in the two weeks following the emergency declaration. This, combined with a 30 per cent drop in new listings for semi-detached and detached houses and a 26 per cent drop in new listings for the condo market, converted the GTA from a stable to a buyers’ market in just two weeks.

Prices Stable Throughout the Toronto Region Since February

In March 2020, the average home price remains stable throughout the region at $902,680 compared to $910,290 last month and still represents a year over year increase of 14 per cent. TRREB reported that prices faced a decrease in the second half of the march, when the sale price of $862,563 for the period between March 15-31.
Detached and semi-detached home prices across TRREB were up 12 and 13 per cent year over year at $1,107,870 and $889,480 each. Condo apartment prices were up 18 per cent to $658,791. Compared to the previous month, prices across all housing types remained flat or experienced a little decrease. with condo apartments most impacted by a 3 per cent fall in prices compared to February.
Toronto experienced the same trend – home prices for all housing types were up year over year. Detached house prices increased 16 per cent to $1,465,826 year over year but remained the same compared to February 2020. Semi-detached home prices are down 4 per cent since February to $1,155,457 but up 13 per cent annually. Condo townhomes were most affected by a 7 per cent monthly drop to $728,250 but up 12 per cent year over year. Condo apartments experienced the highest annual growth rate at 18 per cent increasing to $712,746 but average prices remained flat since last month