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Remax West Realty Inc,, 1678 Bloor St W., Toronto, ONM6P 1A9
Remax West Realty Inc,, 1678 Bloor St W., Toronto, ONM6P 1A9
Market Update May 2020

April’s much anticipated market stats are out, and as expected the real estate market is in a “deep freeze” since COVID-19 started wreaking havoc. While the deep freeze has generally caused a lack of demand, it has also caused an equal drop in new listings. Let’s look in detail at the market update May 2020.

Higher priced properties trending down

The numbers below will give you a general overview of the market but for a moment, I’d like to dive into the details. I’ve noticed that entry-level properties have continued trending up, while luxury listings are trending down. As an example let’s examine Downtown Toronto (Bathurst to DVP and Bloor to the Lake).

Freehold properties up to $1.5 million

Currently, there are 17 freehold properties available. In the last month, 8 properties have sold which means that the absorption rate or Months of Inventory (M.O.I.) is 2.1. This indicates that while there are likely no more bidding wars, properties sell within reasonable time frames, close to the market value.

Freehold properties from $1.5 million to $2 million

For this market segment, it’s an entirely different story. There are currently 12 listings and only 2 properties have sold in the last month meaning that the absorption rate is 6 M.O.I. This segment of the market is currently experiencing downward pressure on prices. Sales are rarely happening and when/if they do sell, they usually sell slightly below the last comparable sale and it usually takes a very long time to sell.

Pro tip

When the prices are still trending upward for less expensive properties and higher-priced properties are trending down, it’s a great opportunity for move-up buyers to take advantage.

Condos up to $600k

In the same downtown region for up to $600k, there are currently 141 listings with 71 sales in the last 30 days which is an absorption rate of 1.98M.O.I. This indicates that while the market in that segment isn’t nearly as hot as it was in the early parts of 2020, there is still slight upward pressure on prices. There are some bidding wars for certain properties although not nearly as often as before.

Condos from $600k – $800k

As in the detached segment, in the higher price range is where things start to shift. There are currently 255 listings with 90 sales in the past month making the absorption rate 2.83 M.O.I. There is still some slight upward pressure on prices but it is on the cusp of becoming a balanced market.

Condos over $1 million

Above the $1 million price range, there are currently 173 properties for sale with only 32 sales in the past month. There is clear downward pressure on prices for this market segment. Buyers for these types of properties can be picky and negotiate a good price and terms.


LOW-RISE (detached, semi, & townhomes)

As indicated by the months of inventory report or MOI in April detached homes have seen a move towards a more balanced market or even a buyers market in some areas. A balanced market is typically indicated by an absorption rate of around 4 to 6 months of inventory. Below 4 months of inventory, there is upward pressure on prices, while above 6 months of inventory represents a downward pressure on prices. Detached home prices are fairly stable in Toronto (3.7 M.O.I.) and Durham (2.5 M.O.I.), while in Halton (4.6 M.O.I.), Peel (4.6 M.O.I.), and especially York (6.9 M.O.I.), there has been moderate downward pressure on prices. Semi-detached and freehold townhomes have fared better and are experiencing low or moderate price growth with absorption rates below 3.1 M.O.I. in all regions of the GTA.


The condo market has cooled off significantly compared to previous months. As you can see in the MOI report, the entire GTA is in a relatively balanced market right now with little movement on prices or overall. Peel (4.1 MOI), Toronto (3.8 MOI), Halton (3.1 MOI), York (4.4 MOI) & Durham (3.0 MOI).

Would you like to know what’s happening with home prices in your area?

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In The News

Sidewalk Labs cancels waterfront plan
Courtesy of CBC

Luxury Real Estate from Hong Kong to New York are getting cheaper Courtesy of Bloomberg

Toronto real estate market in deep freeze Courtesy of Financial Post