COVID-19 Real Estate Market Update April 22-28, 2020
As always, in this post we are going to give you an update for the Mississauga Real Estate Market. However, in this article I want to touch on the topic, have we hit the bottom?
Below is your real estate update for Mississauga for the week of April 22 – 28, 2020. The data has been based on MLS sales over the past week.
Mississauga Real Estate Market Update
Continuing the trend for last week, sales and new listings in Mississauga continue to remain extremely low when compared to the sae time last year. Less homes for sale in Mississauga and less buyers was the story of last week.
Below are the number for ALL properties in the city of Mississauga, comparing the week of April 22-28, 2020 versus the sae time period in 2019.
- Listings were down 69% Year over year
- Sales were down 75% Year over year
The end of April is historically the start of the busiest season in residential real estate. As long as we remain in a state of emergency, sales will continue to remain well below average.
However, I do want to point out that there are some underlying trends in terms of inventory and selling prices that may indicate good news for home sellers.
Home Prices
This is where things get a little more tricky and it’s not simply comparing average selling prices year over year. To get a better idea of what’s going on, you need to compare what has changed over the past month in real estate. All figures below are based on the sale of semi detached homes in Mississauga, from 600k to 900k. The numbers compare April 21-28 2020, to the first week of March 2020.
- Prices are down approximately 5%
- This is an improvement over the past few weeks where prices were down in the 8-9% range
- Average days on market for homes that sold is down slightly to 19 days
- Average sold to ask ratio was 98%
The good news is that selling prices in this segment have risen to the highest level they’ve been since the Corona Virus lockdown. I think this has to do with the continued tightening of market conditions.
Normally in a market downturn where prices drop, you see the absorption rate increase, meaning there are way more homes on the market and the time it takes to sell goes way up. However we are still seeing very low levels of homes for sale, indicating to me the slowdown is psychological, and that most sellers are not under pressure to sell right now in this price point.
Comparing the number of new listings versus number of sold and cancelled listings. As you can see since April, inventory levels remain extremely low.
Has the Toronto Real Estate Market Hit the Bottom?
It’s hard to tell right now, but I am encouraged by what I’m seeing in the market. I do believe that historically low levels of inventory mean that prices will remain stable in the long run. For home buyers, the time to get a deal on a house might not be as long they are anticipating, so it might be best to start the home search ASAP!
Check out this video showing what happened in the last two real estate downturns in the GTA.
Find out what houses are selling for in your neighbourhood and get all of my market updates!
Stay safe!!
