May 15 Market Update

In the early stages of the lockdown, most of us were in a state of shock. That has changed as time has gone on. People now realize it will not be the same moving forward, so we are starting to plan for life after the lockdown.

Toronto real estate sale numbers may be down overall, but homes in certain neighbourhoods of the city are attracting avid interest. This week we know of a couple of properties that went wild. A two-bedroom semi in Danforth Village listed at $799K attracted 12 offers and a detached in prime Riverdale listed at $1.8M got 8 bully offers. The hottest-selling price sector in April was the $750,000-$999,000 range for freeholds, which includes semis and townhouses. With 184 sales, it was three times higher than the next price tier which is between $1 million and $1.25 million that saw 61 transactions.

The lowest point for sales was the week ending April 11, with 557 sales in the Toronto region, but the numbers have steadily increased since, to 909 in the first week of May. That is still half of what the sales were in mid-March, but it does represent 63-per-cent growth since the recent lockdown shock. Because active listings continue to decline, the competition for the few houses out there seems to be supporting prices.

It’s hard to see it now but the dust will settle, and we will be left with a new world to navigate for our clients. We do know that whatever the outcome, it will be different than it was before and there is no going back. The pandemic will leave behind the largest consumer shift in world history. People will spend differently, people will have different tolerance levels for risk, and people will need to transact real estate.