GTA Real Estate Market is Resilient After Covid Fears- Average Sale Prices Increase!

By: Randy Miller

GTA Real Estate Market is Resilient After Covid Fears- Average Sale Prices Increase!

Tags: Whitby Real Estate Durham Homes GTA COVID

The Toronto Regional Real Estate Board (TRREB) reported a decline in the number of sales during May 2020, down by 53.7% compared to May 2019. A total of 4,606 sales were completed through the TRREB’s MLS® System in May 2020. The number of new listings entered into TRREB’s MLS® System during May was down by 53.1%, leading to a tight market, in which demand often exceeded supply in many price ranges. The average selling price for all home types was up by 3% to $863,599 when compared to last May.
 
On a month-over-month basis, actual and seasonally adjusted May sales were up substantially when compared to April. Actual May 2020 sales increased by 55.2% compared to April 2020. After accounting for the regular seasonal increase that is experienced each year between April and May, seasonally adjusted sales were up by 53.2% on a month-over-month basis.
 
Within Durham Region, the local real estate board (DRAR) reported 770 residential sales during May. While this represents a 34% decrease over the number of transactions completed during May of 2019, its very positive given that the number of new listings is down by 52%. With fewer listing to choose from, demand has exceeded supply and sales have been very brisk. I have personally encountered multiple offers on many listings. Surprisingly, houses in Whitby up to the $900,000 range, are selling within days.
 
The average selling price in Durham Region reached $651,590 in May 2020, a 4.7% increase compared to the same month last year. On a month-over-month basis the average selling price in Durham Region increased by 6.3%.
The fear of a sharp decline in values or drop in the number of sales may not materialize. Demand is surprisingly strong. Interest rates are low, after declining by ½ percent at the beginning or March. After the huge selloffs in the stock market three months ago, the typical reaction by consumers has been to shift more capital into real estate. This might be a great time to make a purchase.
 
If you plan a purchase or a sale of a residential or a commercial property during 2020, please contact me. I’ll give you sound, insightful and experienced advice.
I’ve sold real estate in Durham Region for over 25 years and work diligently to ensure that every client’s transaction is a success.