Taken together, homebuyers delivered a solid performance in the Toronto region for March, with sales rising 12.3 percent compared to the same period in 2019.
But the March data, released today by the Toronto Regional Real Estate Board (TRREB), shows a sharp decline in activity during March’s second half. This is the first of what will be many data reports illustrating the impacts of the COVID-19 pandemic on the region’s housing market.
Of the 8,012 homes sold in the Toronto region in March, 4,643 happened in the first half of the month, while the back half only saw 3,369 sales as COVID-19 fears began to hit home and strict social distancing measures were rolled out to combat the virus’s spread. The home sales total for March’s second half was down nearly 16 percent over the same period in 2019.
“The overall sales result for March was strong relative to last year, but the impact of COVID-19 was certainly evident in the number of sales reported in the second half of March,” said TRREB President Michael Collins in a media release.
“Uncertainty surrounding the outbreak’s impact on the broader economy and the onset of the necessary social distancing measures resulted in the decline in sales since March 15. Sales figures for April will give us a better sense as to the trajectory of the market while all levels of government take the required action to contain the spread of COVID-19.”
Similar to the trend observed in home sales, new listings also fell during the second half of the month when compared to the same period in March 2019. The total number of new listings for the month was 14,424, up a modest three percent over the previous year.
TRREB Chief Market Analyst Jason Mercer said that demand and overall market activity levels in March continued to support year-over-year price growth despite the downturn later in the month. TRREB’s MLS benchmark price moved up 11.1 percent in March, while the average selling price for the month in the Toronto region was $902,680, up 14.5 percent over last year.
“As we move through April, we will have a clearer view on how social distancing measures and broader economic conditions will influence sales and ultimately the pace of price growth,” said Mercer.
In today’s release, TRREB said it will publish an update to its 2020 forecast for the region in mid-April when more data is available on the impact of the social distancing measures as well as economic growth and employment.
As it stands right now, if COVID-19 infections peak in the spring and strict social distancing measures are subsequently relaxed through the summer then market demand should rise in the fall and winter.
“News of employees returning to work from furlough coupled with the continuation of extremely low mortgage rates could fuel this recovery,” said TRREB.
