Jennifer English

MAY 2020 MARKET UPDATE

04 June 2020
Jennifer English

The May numbers show a return in the strength we've grown accustomed to from the Toronto Real Estate Market

The pendulum has begun it's swing with the average sale price rising both year-over-year and month-to-month

While the number of sales, new listings, and active listings remain down year-over-year, all of those numbers are moving upward from April 2020. Buyer confidence has been restored from the early to mid time period of COVID-19, and along with it, Seller confidence. More time will tell if the overall direction continues on an upward trajectory as uncertainty in the world remains, but, as of now, Toronto real estate is getting back onto solid footing.

First Up

The Average Sale Price for ALL   Property Types in the City of Toronto

As you see in the picture below the average sale price saw a 1.9% increase from this time last year, great news, and an 8.4% jump from last month, even greater news! The return in Buyer confidence was the first thing we noticed. This was quickly followed by Seller confidence, seen via the number of new listings coming to market. While still down from last year, they shot up significantly from last month. The current balance and consistency across all the stats, be it an increase or decrease, has Toronto real estate moving forward at a nice, steady pace. All of which are contributing factors to the growing confidence in the market.

Next, the Detached Property Type

Whether UP or DOWN, the stats have tracked accordingly, already closing the gap in what we saw just one month ago

The average sale price increased 2.7% from this time last year, when the average price was $1,384,993. Last month, with the average sale price at $1,249,730, it's nice to see we've hit a double-digit increase of 13.8% in such a short time.

The three stats that remain down year-over-year are the number of sales, the number of new listings, and the number of active listings. There's no surprise here even though the media tends to use these numbers, particularly the number of sales, to insight an over-reaction. Given the uncertainty that exists in the world presently, not one person in real estate would expect any different from what we're seeing in the statistical data. What is great to see, the numbers in these same categories are well up from last month. That's the real tell in terms of the direction the Toronto real estate market is moving.

One other stat I'd like to point out, not pictured below, is the sale price to list price ratio. Right now it's at 99%, last month 98%, and this time last year 100%. Again, moving in positive direction!

Now, the Semi-detached Property Type

The stats for semi's are following in the footsteps of detached properties

Here the average sale price increased 8.8% year-over-year from $1,050,532. In April 2020 the average sale price was $1,096,437, since then it's up 4.3%.

As with detached homes, the same three stats for semi's are down year-over-year BUT, more importantly right now, up from last month. Finally, semi-detached homes are presently selling on average for 103% of list price. Last year that was 107%, and last month, 101%. Again, ticking along in a positive direction!

Finally, Condo Apartments

As with the other property types, condo apartment numbers towed the same line

For condos the average sale price increased 4.8% year-over-year from $642,891. In April 2020 the average sale price was $612,300. The May average came in with another double-digit increase of 10.1%.

Again, just like the other property types, the number of sales, new listings, and active listings are down year-over-year and up from one month ago. For the sale price to list price ratio we're presently at 99% with both last month and last year at 100%.


In closing, as a professional realtor, I'm happy to see the numbers that should be up are, and for the numbers that are down, they're either where they should be, or at the very least, what I'd expect. 
 
Feel free to call/text/email if you have questions or want detailed information on your home in your area. Keep safe and stay healthy.