April 13, 2020

COVID-19 Week 6: Market Watch

Week 6: April 5, 2020 – April 11, 2020

Week 6 of My COVID-19 Market Watch paints a similar story to week 5. Significantly less new listings, as well as sales, but it should be noted that Friday was also a ‘holiday’ and may not have had some offices open to report some sales.  But here are the numbers: 

NEW LISTINGS: 

  • York Region: 197 
    • 571 fewer than the same dates in 2019 (768)
  • Newmarket: 18
    • 45 fewer than the same dates in 2019 (63)
    • 28% of what was listed in the same time period in 2019

SOLD:

  • York Region: 73
    • 153 fewer than the same dates in 2019 (226)
  • Newmarket: 9
    • 17 fewer than the same dates in 2019 (26)
      • 35% of what was sold in 2019
    • 3 were sold over asking (33.33%)
    • Median Sale Price: $800,000
    • Avg Sale Price: $832,833

ACTIVE LISTINGS:

  • York Region: 2,462
    • 30 fewer than the previous week. 
    • For reference, there were 4,157 at the end of March 2019
  • Newmarket: 158
    • 4 fewer than the previous week
    • For reference, there was 328 active listings at the end of March 2019

Withdrawn From the Market:

  • York Region:
    • Terminated: 86
    • Suspended: 67
  • Newmarket: 
    • Terminated: 10
    • Suspended: 4

While the number of sales may at first appearance look very concerning, but because the very low number of new listings being added to the market, the prices have remained relatively stable. Sales/Active listings was 50% which is considered a balanced.

There was only 1 sale over $1,000,000 in Newmarket though, and 8 of the 9 sales were under $900,000. 

There are currently (at the time of writing this) 6 properties listed as being conditionally sold, with only 1 being conditional upon the Buyer selling their property. This is a healthy sign, which may lead to a total of 6-9 sales reported this coming week (as the SOLD stats are based on when the sale is reported SOLD, which is a bit of a lagging indicator if there are conditions). 

It’s hard to say what the coming weeks/months bring, as we do not appear to be ‘flattening the curve’ enough to see our normal lives come back in the short term, but if this does drag on into June/July, we may see some surprising numbers start to appear. However, I am optimistic that the market will not crash in our local area, as our proximity to the financial hub of Canada, Toronto, will always be in demand by younger buyers as well as immigrants…. and this pandemic will end at some point, so we can get back to a sense of normalcy. 

What to do:

Buyers: If your financial position has not changed, keep going, especially if the property is in a desirable area. Good Real Estate will sell in any market, provided its price is fair. Location Location Location! If we have learned anything from this pandemic, it’s likely that you really should love where you live!

Sellers: You need to think strategically. Is there many listings in your area? If yes, then it may not be the best time, unless you are prepared to get aggressive with price. You should take the time needed to get your house as perfect as you can, because with the low number of sales, presentation of a property has never been more important. You Need to have a home tidy with as few imperfections as possible. Get out that paint brush and freshen up the home while you have the time to. It will make a difference! If you plan to wait until the state of emergency is over, keep in mind you will not be alone when it comes time to come back on the market. I fully expect a HUGE swell of listings as we start to come out of this, and it will be oh so important to have your home ready then as you may only have a short window of opportunity to maximize your sale price, especially if this drags into the fall. 

Thinking of selling, Get a copy of my free home enhancement guide, with a bunch of useful tips to prepare your home for sale, visit: darcytoombs.ca/guide

About: I started keeping track of the FREEHOLD market data in Mid-March after the state of emergency was announced, and went back to start tracking the numbers from March 1 (week 1). I will be presenting the numbers every week and providing some commentary on them as to what I believe they mean for the overall market and try to give some valuable overall advise to those looking to Buy or Sell.

Posted by dtoombs at 6:36 AM

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