April is a pivotal month for real estate in Toronto – it ushers in the start of the spring market and sets the tone for the months ahead. This year, April also represented the first full month of widespread lockdowns and closures throughout the city as a result of COVID-19. Property values, sales numbers, and market confidence were all impacted by these changes.

Many sellers elected to take their properties off the market and hold off on plans to sell. As a result, listings down by 57% compared to the month prior, and by 65% compared to April 2019. With fewer properties coming to the market, sales followed a similar trend, with only 2,975 taking place. This represented a stark contrast from the 14,000 that were sold during the same period of April 2019.

Prices and Sales Decline

All segments of the market saw steep drops in both the number of sales and their corresponding prices.

Detached Houses 

• 313 sales took place during the month of April
• 520 fewer homes than the previous month (62% decline in sales)
• 669 fewer homes than the previous year (68% decline in sales)
  
  
• The average price of a detached home was $1,249,730
• Down $216,000 compared to the previous month (15% decline in price)
• Down $106,000 compared to the previous year (8% decline in price)

Semi-Detached Houses 

• 126 sales took place during the month of April
• 103 fewer homes than the previous month (45% decline in sales)
• 155 fewer homes than the previous year (55% decline in sales)
  
  
• The average price of a Semi-Detached home was $1,096,437
• Down $59,000 compared to the previous month (5% decline in price)
• Up $44,000 compared to the previous year (4% increase)

Town Houses 

• 108 sales took place during the month of April
• 184 fewer homes than the previous month (63% decline in sales)
• 236 fewer homes than the previous year (69% decline in sales)
  
  
• The average price of a Town House was $784,899
• Down $49,000 compared to the previous month (6% decline in price)
• Up $27,000 compared to the previous year (4% increase in price)

Condominiums 

• 482 sales took place during the month of April
• 920 fewer condos than the previous month (65% decline in sales)
• 1,126 fewer conds than the previous year (70% decline in sales)
  
  
• The average price of a Condo was $612,300
• Down $100,000 compared to the previous month (14% decline in price)
• Down $24,000 compared to the previous year (4% decline in price)

There was a bit of good news when looking at prices in the Semi-Detached and Townhome markets – they both saw year over year price increases. However, condos and detached homes were hit the hardest in both numbers of sales and prices.

Three Trends To Watch

1. The Ontario Government has temporarily banned short term rentals in the City. This directly impacts investors of AirBnB units and their ability to rent out condos.  It’s possible that this will bring more units back to the rental market, or even for sale!
   
   2. Could working from home be the new norm? If so, will commute times matter? The decision to live outside of the city may become an easier one to make. How will this impact demand in the City?
   
   3. In Toronto, our demand relies on population growth – and a lot of the growth comes from people migrating into the city. With travel restrictions and flight travel changing as we know it, this could have a significant impact on demand for future years ahead.