April 2020 | Toronto Luxury Home Market Report
Welcome to our monthly analysis of the luxury condo & home market in Toronto for April 2020!
To qualify as a luxury property, we use the following criteria:
Condo
1-Bed/+Den = $750,000 +
2-Bed/+Den = $1,000,000 +
3-Bed/+Den = $1,500,000 +
House
3-Bed/+ = $1,500,000 +
4-Bed/+ = $2,000,000 +
5-Bed/+ = $2,500,000 +
COVID19 has severely affected the Toronto real estate market, particularly in the number of sales & average sale price that the luxury sector has been experiencing compared to the past 2-3 years.
This trend is completely understandable when you take into account the fact that many buyers are choosing to stay at home due to the health & safety risks associated entering multiple residences for in-person showings.
Many seller's are also very hesitant about listing their property for sale right now for the same health & safety reasons.
April 2020 | Luxury Condo Stats
The red-hot condo market has cooled down drastically with 2 & 3-bed units being impacted the most.
1-Bed / 1+Den units saw a 4% decrease ($831,436) in average sale price compared to April 2019 while the # of units sold dropped by 69%.
With an average of 25 days on market, it does appear that units aren't selling as quickly as they were prior to the pandemic.
2-Bed/+Den units experienced a sharp decline in both average sale price ($1,197,213 ~ down 24% compared to 2019) & # of sales (85% decrease).
These average sale prices will be skewed a bit due to the smaller pool of properties to source from, however it is still a fairly accurate representation of the condo market today.
A trend that we are starting to see is that properties are selling under asking price (97% of list price on average for 2-bed/+den) which means there is typically some negotiation available from the price that you see on MLS.
With only two sales in April 2020 for 3-Bed/+Den luxury units, the average sale price should be taken with a grain of salt.
There was an 82% decrease in the number of sales for this sector so it will be interesting to see if there is a rebound in the coming months.
April 2020 | Luxury House Stats
The luxury housing market has been hit equally hard as it condo counterpart in Toronto with an average decrease of 77% in number of sales compared to 2019 for 3, 4 & 5-bed homes.
3-Bed/3+ properties experienced a 5% decrease in average sale price, however they are still selling relatively quickly with an average of 16 DOM (days on market).
Despite a large reduction in the # of sales (74% decline compared to 2019), 4-Bed/4+ homes actually stayed relatively unchanged in terms of average sale price with only a 1% decrease compared to last year.
There does seem to be some negotiation going on in this sector with homes selling on average for 95% of list price.
The average sale price for 5-Bed/+ homes should also be taken with a grain of salt as there were only 5 luxury sales (80% decrease) during this period.
For the homes that were sold, it took on average 17 days to sell & they received 94% of list price.
This is an indicator that desirable properties are still selling fairly quickly (with some negotiation) despite the COVID19 lockdown/restrictions.
It will be interesting to see what happens with the luxury condo & home market as Toronto adapts to the new norm that COVID19 presents us with.
We are already starting to see a shift in listings providing 360 virtual photo tours which does allow for a more immersive experience when pre-screening homes online.
A service we have offered to our luxury clients for the past several years are virtual reality (VR) showings which allows us to take you through the home as if you were there in person doing a showing with us from anywhere in the world!
Now more than ever, it is essential to use tools like this to make the real estate transaction as safe & easy for everyone involved.
Be sure to check back next month for the latest updates on what is happening with the Toronto luxury condo & home market :)
Rylie C.
Source : http://trreb.ca/files/market-stats/market-watch/mw2004.pdf