Market Update April 2020
These are confusing times for many and while we are all still navigating the market day by day, we want to share what we’re seeing out there right now and how things could look in the months to come.
There is no doubt that the market is shifting and activity is not typical of our usual spring market! That being said, we are seeing amazing creativity in our industry and have found new ways to empower and help clients who need to buy and sell at this time.
One of the most common questions we are asked is, what’s happening with home values?
The past few weeks still had activity and homes were selling close to, and even over list. Between March 15th and April 18th, 25 homes sold in Toronto’s east end with the average home selling for 104% of ask after an average of 9 days on market. In March 2019 homes sold for the same percentage of asking with an average of 11 days on market.
The average price in March 2019 for all home types in E02 was $1,096,203 and $1,144,326 in April 2019. In the isolation period the average price has held at $1,348,292.
We know buyers are waiting for prices to drop but we’re entering a market where inventory was already low compared to demand and of course, now the inventory is even more limited. So far, the laws of supply and demand are holding true even during isolation. We’ll continue to track the real time stats as they happen.
Assuming that the measures our government and community are working to eventually remove the imminent treat of COVID-19, there should be some return to more activity in mid-May and early June but with precautions being taken as we are doing now; private showings only, detailed qualification of buyers and virtual tours prior to in-person showings.
After much consideration and analysis by our team, our leadership at Re/Max Hallmark and our partners, our overall view is that we are in a time of a healthcare crisis that is going to temporarily put our economy on hold. There is no doubt that our economic health will take a tool in the short term and we will need to recover from that. But once this crisis has passed, we have full confidence that a large majority of demand will still be there and in fact, will have been pent up for months.
We thought it would be impactful to look back to the real estate market before, during and after the financial crisis of 2008. While prices flattened or took a very small dip the effect was very temporary and values came back stronger than ever within just a few months.
How we’re doing business has changed, but we are able to help people in new ways – and at the end of the day no matter what the circumstances, it all starts with a conversation. We’re here to talk, whether it’s about what your home is worth right now or what your next move should be, contact us today at firstname.lastname@example.org or 416.699.0303.