I think we can all agree that last month was 🧐. After a strong start to 2020, economic conditions have dramatically changed, as COVID-19 is impacting all aspects of society.
March sales activity started the month strong, but concerns regarding the spread of COVID-19 brought about social distancing measures which had a heavy impact on businesses & employment.
By late March, sales activity had fallen 11% (ytd). This is 37% lower than long-term averages. The drop in sales pushed March levels to the lowest recorded since 1995.
New listings dropped by 19%. This decline in new listings compared to sales caused supply levels to ease and helped prevent a larger increase in oversupply. Overall, the months of supply remain just below five months, similar to levels recorded last year.
Price declines will likely be higher than originally expected due to the combined impact of the pandemic and energy sector crisis.
〰️Detached sales eased by 15%
〰️The decline in sales was met with a larger decline in new listings, causing inventories to fall by 17% and keeping the months of supply slightly lower than last year’s levels
〰️Benchmark prices have remained relatively unchanged compared to last year
〰️With 217 citywide apartment sales in March, this was the only category to record a year-over-year gain. Much of the gain was due to improving sales in the South, South East and North West
〰️Persistent oversupply has resulted in continued downward pressure on prices. Citywide benchmark price eased by more than 2% (ytd)
〰️Both semi-detached & row sales declined this month (tyd)
〰️This segment was oversupplied prior to the recent changes, impacting prices. Prices remained nearly 1% lower than last year’s levels for both semi-detached and row properties.