March is a time of excitement where the gloomy winter season is replaced with the warmer weather of spring and the eventual promise that summer will arrive. This year the month has acted a little differently. Yes, the winter season is gone, and the warmer weather is here, but that is not the only thing that has changed.
In March the coronavirus arrived, impacting how each business interacts with the public and its bottom line. However, the effect it had on the real estate industry was not immediately felt.
During the first two weeks of March, sales were up by 49% and the average sale price was also up in the GTA over last year. March was in the position to put up great numbers. Then during the middle of March, we began to feel the impact of the coronavirus and everyone was asked to stay indoors and practice social distancing. Because of these safety measures, the second half of March was very different from the first. Sales during the last two weeks of March were down by 15.9% when compared to last year. Although the average sale price remained higher over the last year, it was 10.5% lower than the first half of March.
The City of Markham saw its average sale price for all home types increase by 14.9% to $1,069,990, while in Stouffville its average sale price decreased by 4% to $964,622.
There are circumstances in people’s lives that require them to buy and sell a home during this time. Clients may have purchased a home, sold a home or have a looming closing date. For those individuals, we have adapted by implementing various technological features to make buying or selling a home safe and informative.
Throughout this time of economic uncertainty, the Bank of Canada has lowered its interest rates down to 0.25% to keep the economy moving forward and allowing for individuals and businesses to save money. Also, all the major banks have setup mortgage deferral programs to help homeowners and businesses with their finances.
Written by: Joseph Sanzo