Canada Property News

Real Estate Canada: Home Sales in Toronto Fell 76%

The impact of the coronavirus pandemic on home sales is very large. The COVID-19 pandemic knocked down the Toronto housing market, and home sales fell 76 percent in the past week.

«As for home sales, this is by far the biggest drop we've ever seen in Toronto», says Doug Vukasovich, a well-known real estate agent in Toronto.

The expert spoke openly about what is happening with Canadian housing during the pandemic: «Based on the dynamics of the real estate market over the past couple of weeks, we are likely to continue to observe a downward trend in prices in the near future, while COVID-19 is definitely in the world. It’s hard to say how far this will go. There is a high level of uncertainty in most sectors».

Over the past week, 107 apartments were sold in Toronto, which is 80% less than in the same period a year ago, according to sales statistics. Sales of detached houses were down 69 percent.

Prices tend to lag behind changes in home sales, but this time prices are already under severe pressure from the crisis. The average price of a detached house fell by 9% to $ 1.25 million, while the average price of a condominium fell to $ 613,403, which is 4% less than a year ago.

Vukasovich said that there are many problems for people who want to buy or sell on the real estate market, including the difficulty with distance and the inability to personally view objects by clients.

«Many foreign investors will now have to rely on virtual tours and photographs to buy or sell real estate», the expert adds. For those who need to buy or sell, these days you can sign and notarize documents electronically. But, of course, if you are putting your house up for sale, you must understand that it will be sold longer than before the crisis, and for those who buy, the choice will not be as large as before, because now those who want to sell their property are not so a lot of.

«In the current market, you should be prepared to accept the increased level of uncertainty. If this is not a very attractive compromise for you, then consider temporarily pausing your search. The housing market will recover when the pandemic passes. For those who are willing to take risks, there is a chance to draw out their lottery ticket!», The expert noted.

Published: May 13, 2020