What’s the good news? What’s the bad news? How does the Government’s new colour-coded framework affect real estate sales? Watch this month’s video for answers to these questions and more.
UPDATE: After I recorded this video on the morning of Nov. 13, Premier Doug Ford announced changes to the thresholds of the colour-coded levels, which triggered Halton Region, York Region and Hamilton to enter the red level effective Monday, Nov. 16.
To view this month’s video, click the link below. Or, read the script provided below the video link.
Script
Hi, it’s Miia here with your monthly market update.
Strong Sales and Stable Average Home Prices
The good news is that last month the number of home sales was up again year-over-year, for the 4th month in a row, being 25.1% higher in October of this year compared to October of last year. This is good news because the GTA economy benefits significantly from home sales.
Average home prices seem to have stabilized over the past few months.
Looking at the following chart you can see that after the pandemic first hit and caused a slight drop in prices in April, generally speaking, prices have recovered and the average home prices have stabilized in Toronto, Pickering, Ajax, Whitby and Oshawa.
Low-Rise Homes Compared to Condo Apartments
The bad news is that the competition is tough if you are a seller of a condo apartment right now.
The following chart shows the changes in average home prices by home type compared to a year ago. As you can see, the average home price increased from 9-14% in the detached, semi-detached and townhouse segments, whereas condo apartments increased by only 0.7%.
Below you can see the number of sales by home type compared to a year ago. Where the number of sales for the low-rise types of homes was over 30% in each case, the number of sales of condo apartments was up by only 2.2%.
What you don’t see in this chart is that the number of active listings of condo apartments in October was up by 155% year-over-year, which means that buyers of condo apartments have more choice, and sellers are in strong competition with other sellers.
If you’re selling a condo apartment right now, what I would tell you is that the buyers are still out there, but that you are in strong competition with other sellers, so do your best, together with your Realtor, to get your apartment into the best shape possible and presented well, and this will help you find your buyer faster.
Pandemic Update
As you may know, earlier this week, the Government of Ontario announced its Keeping Ontario Safe and Open Framework. The framework categorizes regions into five levels identified by colours: Green-Prevent, Yellow-Protect, Orange-Restrict, Red-Control, and Grey-Lockdown.
Within this framework are guideline for Realtors. Open houses are prohibited under the red and grey levels. As of the day that I record this video, November 13th, there are no regions in the grey level, and Peel Region is in the red level. Toronto will be in the red level effective tomorrow, November 14th. So, consider open houses to be banned in Peel and Toronto at this time.
UPDATE: After I recorded this video on the morning of Nov. 13, Premier Doug Ford announced changes to the thresholds of the colour-coded levels, which triggered Halton Region, York Region and Hamilton to enter the red level effective Monday, Nov. 16.
That’s my update for this month.
Questions? Call or text me at 416-725-3544.
Miia
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