May 2020 Review
May 2020 Review
May 2020 saw a 53.7 percent decrease in year-over-year sales compared to May 2019, as reported by the Toronto Regional Real Estate Board (TRREB). On the listing side, the number of new listings reported on TRREB’s MLS System in May was down by 53.1 percent compared to 2019, with 9,104 new listings reported. While it is evident that the economic impact of COVID-19 is still lingering, we are encouraged by the improvement we see when comparing April 2020 to May 2020 in terms of both sales and listings activity. In May we saw seasonally adjusted sales increase by an impressive 53.2 percent and a 47.5 percent increase in new listings reported on MLS.
Increasing Sale Prices
When comparing May 2020 to May 2019, the year-over-year average selling price for all home types combined increased by three percent. The average sale price in May 2020 was $863,599 compared to $838,248 in May 2019. Comparing April 2020 to May 2020, the average selling price increased upwards by 4.6 percent. As small as this change may be, it is encouraging to see that while market activity has slowed down dramatically, pricing remains stable and we have not seen any drastic decrease in property value. Even during a global pandemic, it is reassuring to see how resilient the Real Estate market is, especially from a year-over-year, average selling price perspective.
Is Now a Good Time to Act?
The gradual re-opening of the economy will likely allow the upward trends we saw in May to continue, in terms of increasing sales, more new listings and increasing average selling prices. For Buyers looking to grow their real estate portfolio, there are still buying opportunities to be found. We recommend connecting with your trusted mortgage broker, who can help you get pre-approved plus show you how you can take advantage of these record low interest rates. From a Sellers perspective, it’s predicted that if the current market conditions sustain throughout the gradual re-opening of the economy, we will continue to see an increasing year-over-year price growth over the next few months. With a sense of normalcy slowly starting to emerge once again, we are hopeful that purchasers and sellers confidence will be restored. We would be happy to hear from you to discuss your real estate needs and address any specific questions you may have.
May 2020 – Market Analysis
Monthly Percentage Change in Number of Units Sold – May 2020 – Illustration A
Month-Over-Month Average Price Percentage Change – May 2020 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – May 2020 – Illustration C
Monthly Percentage Change in Average Sale Price – May 2020 – Illustration D