The Toronto Regional Real Estate Board's monthly report showed home sales plummeted 67 per cent last month
Rent and condo prices have dropped during the coronavirus pandemic, according to a report from Toronto Regional Real Estate Board.
The TRREB’s monthly report showed average rents for one- and two-bedroom apartments were both down on a year-over-year basis. The average one-bedroom rent in April 2020 was $2,107 – down 2.7 per cent from April 2019. The average two-bedroom rent is now $2,705 – down 4.1 per cent compared to last April.
Meanwhile, condo rental transactions also dropped on a year-over-year basis – by 57.9 per cent for one-bedroom and 54.4 per cent for two-bedroom units.
Home sales in the GTA have plummeted by 67 per cent in April. Last month, there were 2,975 residential transactions in the GTA, according to the report, compared with 9,005 transactions last April. The average price in Toronto was down from $904,199 in April 2019 to $881,424 in April 2020.
Condo sales across the GTA are down by 67.8 per cent on a year-over-year basis.
“These are unprecedented times. Past recessions and recoveries do not necessarily provide the best guide as to how the housing market will recover from the impact of the COVID-19 pandemic,” says TRREB CEO John DiMichele in a statement. “A key factor for the housing market recovery will be a broader reopening of the economy, which will result in an improving employment picture and a resurgence in consumer confidence.”
Though the demand for homes has slowed, house prices stayed relatively stable across the GTA – they actually went up by 0.1 per cent last month, to $821,392, compared to $820,373 in April 2019.
“When thinking about home prices, it is important to remember that the pace of price growth is dictated by the relationship between sales and listings. So, while the onset of COVID-19 has understandably shifted market conditions and resulted in average selling prices coming off their March peak, there has continued to be enough active buyers relative to available listings to keep prices in line with last year’s levels,” said Jason Mercer, TRREB’s market analyst.