Residential Market Commentary - March madness
Earlier CREA released sales figures for Toronto and Vancouver, the country’s biggest and busiest markets. They showed those cities going into a tailspin in the second half of the month. Nationally, the market followed suit.
Here is a quick look at the country’s biggest markets:
Greater Toronto Area: -28%
Greater Vancouver: -2.9%
CREA’s early numbers for April suggest more of the same. Prices, though, are standing pat.
Generally, market watchers believe prices are holding steady because of a significant drop in new listings. They were down 12.5% in March, compared to February. The MLS Home Price Index rose 0.8% m/m and is up almost 7.0% compared to a year ago. These are early statistics and April’s final results will likely give a better indication of what is in store.
Analysts will also be watching the bankruptcy and default numbers. Increasing levels of unemployment and income loss, due to COVID-19 measures, could push debt laden households over the edge, forcing them to put their homes on the market. Any surge in that kind of activity could well lead to price declines.