GTA Real Estate Market Watch – April 2020.
Published May 10th, 2020
Here's what happened in the GTA Real Estate Market last month April 2020
Price comparison to April 2019 (last year)
- Detached properties decreased by 3.5%
- Semi-Detached properties increased by 7.0%
- Townhome properties increased by 3.8%
- Condo Apartments decreased by 1.7%
April 2020 was the first full month to see the effects of COVID-19 on the previous white-hot housing market in the GTA, and the virus’ impact can be seen on a month over month basis -
- Detached properties took a significant dip of 11.2%
- Semi-Detached properties had a slight decrease of 2.6%
- Townhome properties took a hit with a decrease of 5.5%
- Condo Apartments took a strong hit with a decrease of 12.2%
Every single property type took a hit in April with Detached & Condos leading the pack, followed by Townhomes and finally semis. Price points & style of homes made a huge difference – Semi’s, which are typically larger than Townhomes but a little smaller than Detached were the most popular property type considering the price range was under $900k and can still be purchased as a spacy 4-bedroom property with up to 2200 sqft. Townhomes were the next favourable property type considering they’re large enough for small families to grow into for at least 10 years or more. Detached properties were hit hard considering the average price runs at around $1 Million.
My exact words in the last edition: “be prepared for the property to remain on the market for a while – especially if it’s in the higher price range. Semis & Towns (and smaller detached) seem to still be slowly moving”
Overall number of sales were 67% less than the same time in April 2019. To think that 2 months ago, we were propped to have the the HOTTEST spring market in the history of the GTA, however as I had mentioned in the February edition, it would have happened if there was no global shut-down of industry and massive upticks in unemployment. Sadly, that’s exactly what happened. The world literally shut down and the only Real Estate trades that are currently happening are leases and purchases & sales of properties where the buyers/sellers have no choice.
There are many different economic reports coming out – some stating that it will take 18 months to fully recover the real estate market (and the overall economy) and some stating 2 years. Whatever the case, investors are already licking their lips and looking at opportunities to scoop up properties while the interest rate is still low. There is a surge starting of cash-buyers in the US & Canadian markets, specifically in larger metros.
If you’re in the dire need to sell, there are new “COVID-SAFE” methods on selling and showing your property, however as I had mentioned last month – be prepared for the property to remain on the market for a while – especially if it’s in the higher price range. If it’s a Semi or a Town (or even a smaller detached property aka Link home) that you need to sell and is under the $900k range – you may be in luck with a quicker turnaround on your transaction.
Buyers – if you’re in a position to invest in resale properties, keep an eye out as there may be deals starting to pop up. If you already have a pre-approval, I suggest you consult your lender/mortgage broker to re-evaluate where you stand, so you’re not left with a nasty surprise if you do purchase and the underwriters lower the lending amount prior to closing.
Note that in-person showings have nearly been discontinued until the last minute. The Real Estate industry has gone “virtual” now, to keep the safety of the buyers, sellers and themselves. Virtual video walkthroughs are done for properties and once you narrow down to a property that you’re interested in – an in-person showing can be arranged, keeping in mind physical distancing & sanitization measures.
Like last month, am continuing with my COVID-19 safety PSA for readers:
Please stay safe and keep your families safe during this time. If you absolutely need to go out for essentials, wear a mask & gloves if you can, and practice self-sanitization. Ensure items you’re bringing into the home are sanitized to reduce contamination. Although the media has almost been silent on it (it’s like they want to keep you sick), please focus on healthy eating and boosting your immune system through nutrition and supplementation.
If you follow me on Facebook, Instagram or see my WhatsApp stories, some of the items that I’ve researched and personally use are:
Mushroom Complex, Zinc, Vitamin C, Vitamin D, Echinacea, Elderberry Extract, Cold FX (or similar ginseng extract based supplement).
Avoid excess: Sugars, Alcohol, Caffeine, Processed meat
Habit changes: Ensure enough sleep, work on stress-relief & exercise 30 mins a day.
This is not to be construed as medical advice; however, this is based on personal research. This does NOT cure COVID-19, however may help you fight through it better than if you were immunocompromised.
Please note that these are overall GTA stats & trends, which do apply to the regions of York, Durham, Peel & Toronto - however, if you'd like specific information regarding a particular region or city, please let me know and I can provide more precise statistics and information.
Stay safe & see you in June! For past issues, visit: www.getrana.com/blog
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