We’ve just finished our first full calendar month living with COVID-19, so I wanted to share some insights for the month of April.
First, let’s take a look at what happened – sales and listings.
BY THE NUMBERS
In April 2020, there were 322 sales and 499 new listings in the key areas we serve – Waterdown, Burlington, Flamborough, Hamilton, Dundas, Ancaster.
These are down from 844 sales and 1,250 new listings in April 2019 – a drop of approximately 60 per cent in both categories.
So, transactions and new listings are down, but they are both down a similar percentage. This means that the market continued to stay balanced throughout the month, and demand was fed by new supply.
PRICE
Next, let’s talk about price
Because the decline in both sales and listings remained steady in comparison to each other, price also held pretty steady. Year over year, the average price increased 5.65 per cent to $662,772.
However, I do want to share what the average sales price was on a month-to-month basis. Typically, this isn’t something we look at too closely as the real estate market tends to be cyclical and it would be like comparing apples to oranges. But given the changes week-to-week, there are some insights here.
From March 2020 to April 2020, prices declined slightly by 6.6% – from $662,772 to 618,861. This can be attributed to less sales in the higher end of the market, the 2 million plus, which has really slowed down, and to more sales as a percentage happening in the lower price ranges.
WHAT’S THIS MEAN?
So what’s this mean? For home sellers that are waiting for this to ride out but that do need to sell, I’d recommend connecting with a listing agent to talk about how your home price may be affected as we dive into COVID-19. Prices may start to trend downwards if jobs are affected for much longer and people need to sell. Depending on where your home value lies, this could be the best time to get the highest value for your home before the downward trend is realized.
Have questions? Call me at 905 332 9223.
Stay home, stay safe.
