Market Update for MAY 2020
Finally, stats are available for May 2020!
Either you are going to buy a home or sale your house or do both, I think during this unprecedented time that caused by Covid-19, everybody is curios to know what is going on in market.
A good real estate agent is the one that is always up to date and aware of the changes happen in the market. Being knowledgeable and up to date is crucial for realtors, to be able of protecting his/her client’s interest. One of the best ways to see market’s insight is studying numbers and charts, so we are going to talk about what happened in May 2020.
Please feel free to contact me or send me an email if you don’t understand or need more information about this numbers.
Please be advised that this numbers are for all area that is shown on map below, if you would like to know more information about specific area or municipality, I would be happy to provide it. Just send me an email.
"Total residential transactions"
While the public health and economic concerns surrounding COVID-19 continue to impact the housing market, the May sales result represented a marked improvement over April.
Greater Toronto Area REALTORS® reported 4,606 sales through TRREB’s MLS® System in May 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 per cent month-over-month.
4,606 sales through TRREB’s MLS® System in May 2020. This result was down by 53.7 per cent compared to May 2019. While the number of sales was down substantially on a year-over-year basis due to the continued impact of COVID-19, the decline was less than the 67.1 per cent year-over-year decline reported for April 2020.
This means market is more active compare to last month, with easing the restriction of Covid-19, more buyers and sellers are motivated to do transaction.
Above chart indicating what was share of each type of home during all transactions that happen in May 2020.
The average selling price for all home types combined on a seasonally adjusted basis, was up by 4.6 per cent month-over-month compared April 2020.
The average selling price for all home types combined was up by three per cent compared to May 2019 to $863,599.
The MLS® Home Price Index Composite Benchmark price was virtually unchanged in May 2020 compared to April 2020. On a year-over-year basis, the composite benchmark was up by 9.4 per cent.
The difference in year-over-year growth between the MLS® HPI Composite Benchmark and the average selling price was related to the fact that home sales in the City of Toronto, particularly in the detached segment, were down by a greater annual rate than overall sales in the GTA. This resulted in a compositional impact on the overall average selling price.
This clearly shows that average selling price is not a good indication that how prices in market is trending. In one month more expensive houses may have been sold and bring the average price high or vice versa. HPI (House Price Index) is a better tool to find out about price fluctuations.
Above is average price of each type of homes in May 2020.
The number of new listings entered into TRREB’s MLS® System in May was down by a similar annual rate to that of sales, dipping by 53.1 per cent to 9,104. On a month-over-month basis, actual new listings were up by 47.5 per cent.
“With home sales and new listings continuing to trend in unison in May, market conditions remained balanced.” It is fair to say that supply is meeting demand!
Sales to new listings ratio
Sales to new listings ratio in May 2020 is 51% that is exactly the same as May 2019. This would be another indication that market is balanced in comparison to last year same time.
MOI & DOM & Average SP/LP
Here are some interesting facts about May 2020:
- What was the fastest selling type of property?
If you look at Average Day On Market (DOM), you will see average DOM of Semi-detached is 17 which makes them the quicket type of property to sell in May 2020 and after that is Thownhouse and then Condo Townhouse and after that Condo Apartment and Link properties.
Also average sale price to listing price (SP/LP) for semi-detaced homes is over 100%, that means people are willing to pay more that asking price for this type of properties nowadays!
Average SP/LP for other type of properties remained under 100% that means people are getting discount for them!
- What is conclusion?
Let me give you a hint; if you have smaller house such as Semi-Detached, Towhnhouse... this is a good opportunity for upsizing.
*Here is another tip; is this a good time to buy house that are above $1M?
Email me and let me know what you think!
I as real estate agent, always give all the information to my clients to help them make an informed decision and every decision is unique based on one’s individual.
Contact me for free consultation.