The Toronto Real Estate Board announced that Greater Toronto Area REALTORS® reported 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.
On a month-over-month basis, actual and seasonally adjusted May sales were up substantially compared to April. Actual May 2020 sales increased by 55.2 per cent compared to April 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.
The average selling price for all home types combined was up by three per cent compared to May 2019 to $863,599. On a seasonally adjusted basis, the average selling price was up by 4.6 per cent month-over-month compared April 2020.
The market seems to be improving and for now prices are status quo. In the past couple of weeks we are noticing more listings coming on the market and many conditional sales occurring. With more listings now coming on the market and the city starting to re-open as the Covid 19 crisis passes sales will start to increase again. With interest rates at a low level and demand for home ownership still being strong I expect the market to rebound fairly quickly. It will be important to monitor inventory levels and the sales to see how the inventory is moving. I do expect many sellers who were waiting, downsizing or retiring will now list their homes for sale which will create an influx of inventory. Sales will increase in the coming weeks but as inventory levels rise throughout the summer we will see what happens with prices in the 4th quarter of the year.
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