Second Wave Stalls County Real Estate

Introduction

Despite a general slowdown in County real estate in November brought on the Covid-19 second wave, dhe average price for homes continued to increase.

Demand

November home sales in the County fell almost 60% from their peak in September.

Sales usually fall off each year at the holidays approach, but the decline this year was much larger than normal.

Sales during March and April hit historic lows as with the declaration of the pandemic state of emergency in mid-March, then took off toward record highs as the province began to open up in May and June.

The reverse may be at work this fall, as sales have fallen rapidly as Covid-19 cases in Toronto exploded again.

Supply

Although though there was a slight increase in existing home listings from October to November, listings were still nowhere near normal levels for the month.

The resurgence of Covid-19 has certainly inhibited listings.

In addition, the recent record high prices may mean that anyone who was inclined to sell had already sold by November.

Inventory

Inventory was nearly doubled from October to November, but still remains at a fraction of normal levels. Buyer choice remains limited.

Selling Over Listing Price

Despite the fall in sales during November, the number of homes selling at or above asking price remained at a record high level during November. Not a lot are selling, but those that are selling are selling for a lot.

Selling In 7 Days or Less

The time required to sell was the area which saw the largest change in November.

During the summer peak market up to 80% of homes sold in a week or less.

However, as Covid-19 rebounded in November, the percentage of homes selling in a week or less fell dramatically to normal levels. 

Average House Price

Despite the general fall off in the market in November, the average price for existing homes sold in November increased again to a new record high.

Conclusion

November appears to be a re-play of March and April when Covid-19 shut down the market.

The second wave of Covid-19 is likely to have the same impact as the first wave, convincing even more people from urban areas to seek the freedom and relative safety of rural areas like the Coun