May 2020 Real Estate Market Update
Home prices are holding firm amid the COVID-19 pandemic, according to recent numbers released by the Toronto Regional Real Estate Board (TRREB).
Prices in May regained the drop experienced in April, increasing year-over-year by 3% to $863,599 from $838,248. They are now only 5% off the February pre-pandemic high point this year.
The reason for the price increase is the lack of housing supply in Toronto. Current months of inventory is 2.5, dropping from 3.5 at the end of April. This indicates movement away from a more balanced market toward a stronger seller’s market and fewer opportunities for homebuyers.
With the Bank of Canada’s new governor, Tiff Macklem, keeping the key interest rate unchanged at 0.25% on June 3, and trimming previous estimates for the economic downturn, there is reason to be optimistic that April was the bottoming out of COVID-19’s impact on the real estate market.
On a month-over-month basis, both actual and seasonally adjusted sales in May were up substantially compared to April, with an actual sales increase of 55.2%. New listings were also up by 47.5% and active listings increased by almost 9%.
Although public health and economic concerns surrounding COVID-19 continue to impact the housing market — sales and listings are still less than half than a year ago — it is very possible home sales and inventory levels will continue to improve in the coming months. This is, of course, provided the economy continues to gradually reopen.
A new Ipsos survey released by TRREB indicates 27% of households in the Greater Toronto Area (GTA) will likely purchase a home over the next year. A key driver is very low borrowing costs.
Here’s how the real estate market performed in six Etobicoke neighbourhoods in May. If you live in or would like to obtain real estate data on another neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.
Alderwood
Average Home Price: $1,095,868
Number of Homes Sold: 9
Average Days on Market: 22
In the community of Alderwood, 9 homes sold in May 2020, representing a decrease of 7 homes over the same month last year. The average selling price for homes increased 10.8% to $1,095,868 in May 2020, from $989,125 a year earlier. Sales were split between bungalows (4), two-storey (3) and 1.5-storey (2) detached homes in May 2020. Average days on market increased to 22 days from 15 days year-over-year.
Average home prices for Alderwood for Q1 2020 are available here.
Islington-City Centre West
Average Home Price: $1,079,150
Number of Homes Sold: 7
Average Days on Market: 7
In the community of Islington-City Centre West, 7 homes sold in May 2020, representing a decrease of 18 homes over the same month last year. The average selling price for homes declined 7.8% to $1,079,150 in May 2020, from $1,170,036 a year earlier. Bungalows accounted for more than half (4) of all sales in May 2020. Average days on market decreased to 7 days from 14 days year-over-year.
Overall Average Condo Price: $574,321
Total Number of Condos Sold: 33
Average Days on Market: 20
The average selling price for one-bedroom, one-bathroom condominium apartments in Islington-City Centre West increased 13.7% to $507,357 in May 2020, from $446,333 in May 2019. Average days on market decreased to 11 days from 18 days over the same time period.
The average selling price for two-bedroom, two-bathroom condominium apartments in Islington-City Centre West increased 14.8% to $659,555 in May 2020, from $574,636 in May 2019. Average days on market increased to 22 days from 12 days over the same time period.
Average home and condo apartment prices for Islington-City Centre West for Q1 2020 are available here.
Long Branch
Average Home Price: $1,235,875
Number of Homes Sold: 12
Average Days on Market: 9
In the community of Long Branch, 12 homes sold in May 2020, representing a decrease of only 1 home over the same month last year. The average selling price for homes increased by 16.4% to $1,235,875 in May 2020, from $1,061,769 a year earlier. Combined, bungalows and two-storey detached homes accounted for three-quarters (9) of all sales in May 2020. Average days on market decreased to 9 days from 12 days year-over-year.
Average home prices for Long Branch for Q1 2020 are available here.
Mimico
Average Home Price: $1,073,167
Number of Homes Sold: 6
Average Days on Market: 27
In the community of Mimico, 6 homes sold in May 2020, representing a decrease of 21 homes over the same month last year. The average selling price for homes increased 6.2% to $1,073,167 in May 2020, from $1,010,460 a year earlier. Detached two-storey homes accounted for two-thirds (4) of all sales in May 2020. Average days on market remained constant at 27 days year-over-year.
Overall Average Condo Price: $652,896
Total Number of Condos Sold: 45
Average Days on Market: 21
The average selling price for one-bedroom, one-bathroom condominium apartments in Mimico increased 3.5% to $518,909 in May 2020, from $501,127 in May 2019. Average days on market decreased to 22 days from 25 days over the same time period.
The average selling price for two-bedroom, two-bathroom condominium apartments in Mimico increased 18.8% to $750,860 in May 2020, from $631,773 in May 2019. Average days on market increased to 21 days from 19 days over the same time period.
Average home and condo apartment prices for Mimico for Q1 2020 are available here.
New Toronto
Average Home Price: $870,333
Number of Homes Sold: 3
Average Days on Market: 15
In the community of New Toronto, 3 homes sold in May 2020, representing a decrease of 7 homes over the same month last year. The average selling price for homes declined 4% to $870,333 in May 2020, from $906,900 a year earlier. This percentage change may be attributed to sales of more affordable homes this year. Average days on market increased to 15 days from 12 days year-over-year.
Average home prices for New Toronto for Q1 2020 are available here.
Stonegate-Queensway
Average Home Price: $1,294,167
Number of Homes Sold: 12
Average Days on Market: 18
In the community of Stonegate-Queensway, 12 homes sold in May 2020, representing a decrease of 30 homes over the same month last year. The average selling price for homes declined 8.1% to $1,294,167 in May 2020, from $1,408,779 a year earlier. This percentage change may be attributed to fewer sales of higher end homes this year. Average days on market increased to 18 days from 16 days year-over-year.
Average home prices for Stonegate-Queensway for Q1 2020 are available here.
Overall average condo price includes all condo apartment configurations. One-bedroom condos include one bathroom only. Two-bedroom condos include two bathrooms only.
