The Greater Toronto Area saw a sharp decline in both sales and new listings as home buyers and sellers adjust to the reality of the Coronavirus crisis.
In Week 5 of our weekly look at the numbers during the Coronavirus crisis, I'm reviewing the latest real estate sales data for the week ending April 11th.
We are now beginning to see some sellers sell their homes for less than their market value - based on recent comparable sales.
This is likely driven by the fact that some sellers feel the pressure to sell because they already bought a home and need to sell their current home to afford the home they bought.
While these “below market” sales are not enough to push all prices down, they are a trend that is important to keep an eye on. If more and more sellers feel the pressure to reduce their price in order to sell - this could put downward pressure on prices in the future.
Click on the video below for this week's update.
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John Pasalis is President of Realosophy Realty, a Toronto real estate brokerage which uses data analysis to advise residential real estate buyers, renters, sellers and investors.
A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Follow John on Twitter @johnpasalis