Toronto Real Estate Market: TRREB Monthly Reports
In 2019, Toronto was a rising real estate market in Canada. After the initial crisis in 2017 when prices dropped disturbingly low, the Toronto real estate market slowly started to stabilize in 2018. In 2019, the prices in Toronto began to increase. Experts suggested that for the future, prices would rise again in favor of sellers.
But as we know, nothing is the same as it was in the previous period. The spring real estate market has changed everywhere. As a result of the coronavirus outbreak, people are trying to stay isolated and not go outside. So, the virus affected the real estate market in Toronto too.
But how has the market changed in Toronto? TRREB (Toronto Regional Real Estate Board) releases monthly real estate market reports that can help us answer this question. In this article, we will discuss the current real estate climate in Toronto and talk about some of the TRREB reports.
Some Useful Information About TRREB
TRREB stands for Toronto Regional Real Estate Board, and it is a not-for-profit organization. The first name was TREB (Toronto Real Estate Board) and it has changed “to reflect the regional nature of TREB “that has been in place since 2002,” they say. They also changed the logo.
TRREB was founded as early as 1920 by several real estate practitioners, and it is considered to be Canada’s largest real estate board. It has more than 50,000 real estate professional members.
Real Estate Climate in Toronto
Toronto is considered one of the most expensive real estate markets. As many people are moving to Toronto, the construction sector is growing fast and steadily. The most demanded properties in Toronto are multi-family and condo options. Because of the market demand, experts suggested that the prices will continue to grow there.
If you want to see more information about the real estate climate in Toronto, see this article.
Toronto Spring Real Estate Market Based on TRREB Monthly Reports
The spring market is considered to be the hottest period for the real estate market. But the virus has changed many things, as we have mentioned. The impact of the coronavirus on the real estate market is noticeable.
The drastic change in the market is represented in the TRREB reports. We can see the first effects of COVID-19 in March. In this month, TRREB reported the sale of 8,012 homes, an increase of 12.3% compared to the same time the year prior. Despite the increase in monthly sales, there was a big difference in pre-and-post COVID-19 periods. The change began on March 15. The amount of sales decreased after the first two weeks of March by 15.9% percent. In April, the Greater Toronto Area REALTORS reported 2,975 residential transactions through TRREB’s MLS System. This result was down by 67% compared to April 2019.
COVID-19 didn’t have this much effect on selling prices. As TRREB reported, the average selling price for April 2020 transactions was $821,392 – up by 0.1%compared to the average price of $820,373 reported for April 2019. But the selling price has decreased in April compared to March.
Few Final Words
Social distancing and the fact that people are trying to stay home have affected the real estate market. As we saw in the TRREB report, the negative change happened only after the COVID-19 outbreak. Prior to it, the real estate market in Toronto was blooming. In the short-term sales will slow, and prices may even decline a bit, according to the Canada Mortgage and Housing Corp. But the Toronto area remains a desirable place to live. As many experts suggest, once the market overcomes the COVID-19 peak, the situation will begin changing back to normal and the market will begin its recovery.
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