While several businesses have taken a hit with the pandemic, the real estate
market i s seeing a decrease in home-buying interest both locally and nationally.
The overall March sales results were clearly driven by the first two weeks of the
month. There were 4,643 sales reported in the pre-COVID-19 period, accounting
for 58% of total transactions and representing a 49% increase compared to the
first 14 days of March 2019. There were 3,369 sales reported during the post-
COVID-period – down by 15.9 per cent compared to the same period in March 2019.
For March as a whole, new listings were up by 3% year-over-year to 14,424.
However, similar to sales, new listings dropped on a year-over-year basis during
the second half of the month (beginning March 15) by 18.4%. The average selling
price for March 2020 was $902,680 – up 14.5 per cent compared to March 2019.
The average selling price for sales reported between March 15 and March 31, was
$862,563 – down from the first half of March 2020, but still up by 10.5 per cent
compared to the same period in 2019.
This price decline may also be due to the types of homes that are now selling.
A closer look at the data reveals that there are more lower-priced homes and
condos (and fewer luxury properties) selling today than a month ago, which is
pulling down the average home price.
In the weeks leading to mid-March, the real estate market was overheating with
buyers competing for properties and driving up prices. But now buyers are hitting
pause on their home search because of the current public health advice to stay
at home. A lower number of buyers means fewer sales of homes are happening.
As the pandemic continues, it’s become clear that transitioning into the digital and
virtual spaces have become critical for those working in the real estate industry
to succeed. Not to mention that because of the state of the market, agents need
to be more creative than they’ve ever been to have their listings stay relevant.
We are a human touch business and agents are doing a tremendous job t o distance
themselves and maintain their business as best they can without the human touch
aspect. It’s an unprecedented time for both buyers and sellers.
Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto,
Niagara-on-the-Lake, Port Hope and Cambridge Ontario since 1928. We have four
centrally located offices and over 250 sales representatives selling and leasing
homes and condominiums in all the vibrant communities we work in. Our brand is
well recognized internationally thanks to our unique a f f i l i a t i o n with Leading Real
Estate Companies of the World. Our sales teams meet weekly to discuss market
conditions, trending topics, and anecdotes that more accurately reflect the true
temperature of the real estate market.