07 May REAL ESTATE MARKET UPDATE: APRIL 2020
After a stellar 1st Quarter of real estate activity in the GTA that suggested a record-breaking spring market was in store, the Coronavirus pandemic and resulting government health and safety measures abruptly changed everything. As expected, social distancing orders have quieted the market. TREB’s April 2020 statistics show the initial impact of COVID-19 with sales and new listings dropping 67% and 64% respectively year over year for all property types, the largest declines on record. However, due to the continuing demand on the GTA’s already low inventory, prices remained consistent with those in April 2019. Canadian economic forecasters are in general agreement that the risk of a sharp price decline is low near term, and that price support will continue to soften gradually in the weeks ahead, although not enough to threaten the stability of the market. With employment being a key driver of house prices, this will be an important statistic to watch as the economy reopens.