A month ago pent up demand and short supply created a frustrating market for buyers and we were hoping the spring market would bring new listings. Now we are seeing a massive slowdown.
March sales were up 12.3% and average price was up 14.5% however there was a clear break in market activity between the pre-COVID-19 and post-COVID-19 periods beginning Sunday, March 15.
- The overall March sales result was clearly driven by the pre-COVID-19 period, accounting for 58% of total transactions and representing a 49% increase compared to the first 14 days of March 2019.
- The post-COVID-period was down by 15.9% compared to the same period in March 2019.
- New listings were up by 3% year-over-year but dropped during the second half of the month by 18.4%.
- The average selling price for between March 15 and March 31 was down from the first half of March, but still up by 10.5% compared to the same period last year.
Buyers have decided to hold off on their home purchase amid uncertain health and economic conditions and sellers may be hesitant to accept a lower offer today. However, there are still those who need to buy and sell right now.
The Market Will Bounce Back. The reality is that the fundamentals of the market hasn’t changed. Pent-up buyer demand is growing as the supply of available homes for sale remains scant.
“Due to the limited inventory available, combined with the population growth in Toronto, we can expect market activity to resume and recover quickly once we’ve mitigated the health risks from COVID-19 and the financial markets stabilize.”
Wondering if you should still buy real estate? And when is the best time? Join our FREE webinar on The Top 3 Ways To Buy Real Estate During Uncertainty on Thursday April 9th at 12:00 noon.