GTA Real Estate Market Watch – March 2020.
Published April 6th, 2020
Here's what happened in the GTA Real Estate Market last month March 2020
Price comparison to March 2019 (last year)
· Detached properties increased by 12.5%
· Semi-Detached properties increased by 12.3%
· Townhome properties increased by 11.6%
· Condo Apartments increased by 17.7%
All double-digit gains for all property types, including another near 20% appreciation in Condos year over year!! Analysts predicted 6-10% appreciation in 2020 but clearly property prices BLEW past that. UNTIL COVID-19 pretty much almost stopped everything in its tracks.
Before the 3rd week of March, just as I had mentioned in last month’s edition “I don’t see this slowing down through March” – the numbers speak for themselves -
· Detached properties remained strong with a slight decrease of 0.5%
· Semi-Detached properties had an increase of 1.9%
· Townhome properties remained strong with a slight decrease of 1.4%
· Condo Apartments remained strong with a slight decrease of 1.4%
Until about the last week of March, properties were still selling with multiple offers and showings were still happening, as Real Estate was (and still is) considered an essential service. Unfortunately, towards the last week of March, Open Houses were banned and due to contamination concerns, sellers pulled their properties off the market to avoid people walking through their homes with risk of spreading COVID-19.
The market was propped to explode into what would have been, the HOTTEST spring market in the history of the GTA, however as I had mentioned in the last 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.
RBC has predicted up to a 30% drop in Real Estate prices across Canada during this pandemic. Yes, you read that right – 30%. Considering the economic shut-down, it’s not surprising. Entire industries are currently shut down, with a record number of Canadians filing for EI as well as the CERB (Canadian Emergency Response Benefit). Considering that we haven’t even reached the peak of COVID-19 infections to a point of levelling off – experts are saying that it may take till September before levelling off, followed by a slow economic restart. Many industries and small businesses will not survive. It may take up to 18 months for a full recovery to get to levels where we potentially left off.
On the bright side, RBC has also mentioned that once the dust settles, the market is predicted to jump 40%. Fingers crossed that most people stay safe and remain unaffected health-wise, and are able to bounce back financially. It will be a long gruelling road but this time, we’re literally all in this together.
Where does this leave us now? If you’re in the dire need to sell, there are new “COVID-19 Certified” methods of selling – however considering the current economy, 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.
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.
I normally try to keep these within 1 page, however as we’re dealing with extraordinary circumstances – one page was not enough. I do apologize for the extra reading!
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 May! For past issues, visit: www.getrana.com/blog
Sellers: Your Home Sold GUARANTEED, Or I’ll Buy It!*
Sales Representative, CENTURY 21 Titans Realty Inc. Brokerage
Real Estate Negotiation Expert, Real Estate Business Institute
www.getrana.com | email@example.com | 647-930-1394 (direct) | 416-820-4504 (secondary)
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