Here's what happened in the GTA Real Estate Market last month May 2020
Price comparison to May 2019 (last year)
· Detached properties decreased by 0.9%
· Semi-Detached properties increased by 4.8%
· Townhome properties increased by 3.1%
· Condo Apartments increased by 6.0%
From a Year over Year perspective, COVID-19 effects seemed to have been short lived – I’ll get into why, below.
The stats compared to April 2020:
· Detached properties jumped by 4.81%
· Semi-Detached properties remained steady with a slight increase of 0.2%
· Townhome properties remained steady with a slight increase of 0.8%
· Condo Apartments jumped nicely by 7.54%
What a turnaround from April! In April, I had mentioned that “Every single property type took a hit in April with Detached & Condos leading the pack, followed by Townhomes and finally semis.”
For May, Detached & Condo properties have led the way in month-over-month gains! Why would this be, you might be thinking. There are several factors involved – however 2 of the most prominent would be – many sellers took their properties off the market after Lock-down was implemented by the province, thus significantly reducing the supply. Buyers who were in the market for both the end of March and through April were experiencing lack of choices that would match their home-buying criteria.
In May, many of the sellers that had pulled their properties off the market had no choice but to re-list the properties at a more realistic price for the current market, as they were likely getting closer to the closing of their purchases. As new properties popped up on the market, the buyers in waiting started jumping at the opportunity and were experiencing bidding wars to purchase. The result – increase in month-over-month prices compared to April – a trend which is still continuing in the current market place for properties that are already “done up” and are move-in-ready.
Compared to May 2019, the number of sales was down by 53.7% - however compared to last month (April 2020), the number of sales were up by 55.2%. This further corroborates the fact that the sellers & buyers-in-waiting on the sidelines in April, took the leap in May. Furthermore, there has been a significantly heated interest in investors trying to scoop up deals, as many economic analysts are predicting a significant bounce-back by the end of 2021.
Buyers - Considering the CMHC is further tightening lending criteria which will take effect on July 1st, I am expecting a small burst of a run on the market for those currently qualified or in the process of getting qualified financially to try and beat the deadline.
If you're looking to sell, there are new “COVID-SAFE” methods on selling and showing your property, however as I had mentioned last month – get your property in tip-top condition to attract buyers! 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, it will likely sell very quickly!
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, but with emphasis on the personal health and immune boosting aspect.
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 July! For past issues, visit: www.getrana.com/blog
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