A look at home prices in Halton amid the COVID-19 pandemic

 

Sales might be dropping—and dropping quickly—but home prices are holding steady about a month into the ongoing COVID-19 pandemic and associated economic shutdown. 

According to a recent report from Zoocasa, a real estate website and brokerage, the average home price in Oakville is up 10 per cent year-over-year—hitting $1,059,850 after one month of quarantine measures. In fact, prices have climbed year-over-year throughout the region. 

Zoocasa used data from the Toronto Region Real Estate Board (TTREB) to calculate the change in average home prices and home sales between March 16 - April 15, 2020, compared to the same period in 2019 to understand how the market changed across the GTA one month after COVID-19 measures were put into effect.

The report says that Oakville is seeing double-digit year-over-year price growth.  

"Buyers are much more focused on what they are truly looking for", said Alex Kupiec, a Zoocasa real estate agent in the Halton Region, in the report. 

Kupiec told Zoocasa that under current conditions, active buyers are only interested in viewings for properties they consider to be "true contenders." He also said that most sellers have decided to wait out current market conditions to maximize their potential sale price once health and economic conditions begin to improve. 

Zoocasa says home sales are down 54 per cent across the region for the period of March 16 to April 15. That being said, home prices in Halton have grown five per cent year-over-year. The highest increase has been seen in Oakville, where the average home price sits at $1,059,850. Milton was a close second, with seven per cent growth in average prices year-over-year to $726,984, but a 56 per cent decrease in sales. 

In comparison, Burlington average home prices remained relatively steadier, with a one per cent increase year-over-year to $783,561. Sales in the city dropped 51 per cent year-over-year. 

Zoocasa says home prices in Halton Hills grew 2 per cent to $785,898, while sales dropped 41 per cent. 

Not unexpectedly, sales are down across the GTA

Earlier this month, the Toronto Regional Real Estate Board (TRREB) said that the impact of COVID-19 on sales and prices in the GTA appeared muted in March because the first half of the month was business as usual in Canada. 

Strict physical distancing measures were rolled out by the provinces and territories around March Break. 

Zoocasa's analysis revealed that home sales dropped over 50 per cent year-over-year during the quarantine period in most GTA regions, with the exception of Durham Region where sales dropped 30 per cent. 

The report notes that average home prices in nearby Peel grew six per cent year-over-year to $800,025. The average home price in Mississauga is up seven per cent year-over-year--hitting $819,096 after one month of quarantine measures. The average home price in Brampton is up eight per cent year-over-year, hitting $768,710. 

But while prices are high, sales are not. 

According to Zoocasa, sales dropped 59 per cent across the Peel region in response to the novel coronavirus outbreak. 

There were 355 home sales in Brampton and 381 sales in Mississauga during the month. 

"During the second and third week of March, the majority of my clients paused their home search due to economic uncertainty, future expectations of price reductions and health concerns," said Renzo Amorin, a Zoocasa real estate agent in Peel Region, in the report. 

He also said that by early to mid-April, clients who felt more financially stable and already had money saved for a down payment decided to continue their search. 

For the period of March 16 to April 15, the average sold home price grew four per cent year-over-year in Toronto, ending up at $918,796. 

Zoocasa says a closer look at prices in the region revealed that Toronto East experienced a double-digit, 14 per cent gain to $872,658 and Toronto West noted an eight per cent average home price increase to $878,658. Toronto Central is one of two municipalities out of 27 in the GTA where prices declined; the region noted a one per cent drop in prices to $984,332. 

The City of Toronto as a whole experienced a 54 per cent drop, with just 1,456 sales taking place in the month since emergency measures were introduced. Toronto Central sales declines were slightly higher than the city-wide average, with a 57 per cent decline and 634 transactions. 


GTA Municipalities with the Largest Price Increases

1. Markham, York Region

Average home price, Mar 16 - April 15, 2020: $1,030,611

Average home price change from Mar 16 - April 15, 2019: +17%

Home sales, Mar 16 - April 15, 2020: 196

Home sales change from Mar 16 - April 15, 2019: -50%

2. Toronto East, City of Toronto

Average home price, Mar 16 - April 15, 2020: $872,658

Average home price change from Mar 16 - April 15, 2019: +14%

Home sales, Mar 16 - April 15, 2020: 420

Home sales change from Mar 16 - April 15, 2019: -49%

3. Aurora, York Region

Average home price, Mar 16 - April 15, 2020: $961,474

Average home price change from Mar 16 - April 15, 2019: +13%

Home sales, Mar 16 - April 15, 2020: 55

Home sales change from Mar 16 - April 15, 2019: -47%

4. E. Gwillimbury, York Region

Average home price, Mar 16 - April 15, 2020: $869,193

Average home price change from Mar 16 - April 15, 2019: +12%

Home sales, Mar 16 - April 15, 2020: 27

Home sales change from Mar 16 - April 15, 2019: -49%

5. Whitchurch-Stouffville, York Region

Average home price, Mar 16 - April 15, 2020: $1,023,796 

Average home price change from Mar 16 - April 15, 2019: +12%

Home sales, Mar 16 - April 15, 2020: 23

Home sales change from Mar 16 - April 15, 2019: -65%


GTA Municipalities With Largest Price Decreases or Smallest Increases

1. King, York Region

Average home price, Mar 16 - April 15, 2020: $1,184,900

Average home price change from Mar 16 - April 15, 2019: -2%

Home sales, Mar 16 - April 15, 2020: 20

Home sales change from Mar 16 - April 15, 2019: -44%

2. Toronto Central, Toronto

Average home price, Mar 16 - April 15, 2020: $984,332

Average home price change from Mar 16 - April 15, 2019: -1%

Home sales, Mar 16 - April 15, 2020: 634

Home sales change from Mar 16 - April 15, 2019: -57%

3. Burlington, Halton Region

Average home price, Mar 16 - April 15, 2020: $783,561

Average home price change from Mar 16 - April 15, 2019: +1%

Home sales, Mar 16 - April 15, 2020: 130

Home sales change from Mar 16 - April 15, 2019: -51%

4. Caledon, Peel Region

Average home price, Mar 16 - April 15, 2020: $932,810

Average home price change from Mar 16 - April 15, 2019: +1%

Home sales, Mar 16 - April 15, 2020: 29

Home sales change from Mar 16 - April 15, 2019: -72%

5. Richmond Hill, York Region

Average home price, Mar 16 - April 15, 2020: $973,574

Average home price change from Mar 16 - April 15, 2019: +1%

Home sales, Mar 16 - April 15, 2020: 140

Home sales change from Mar 16 - April 15, 2019: -44%

Average home prices and sales for each municipality are based on the sold date of March 16 to April 15, 2020 and March 16 to April 15, 2019. Data was retrieved on April 22, 2020.

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