There are some good news aspects to the recently released May 2020 TRREB Resale Housing Market Report.
For starters, the May TRREB sales were an improvement over the April sales figures.
This means that the worse month (April 2020) is behind us.
Slow and steady improvement seems to be what the May sales statistics are showing us and hopefully, this trend will continue and we will build upon this momentum going forward.
Additionally, there has not been a deluge of new listings hitting the MLS. Rather, new listings are in lockstep with sales. This means that we are in a balanced market which is helping to support price levels.
Let’s also not overlook mortgage rates. Borrowing costs are at an all-time low and taking on a mortgage is as attractive as it has ever been. Banks are lending, people are buying, selling and also refinancing at attractive rates (sub 3% in many cases).
Lastly, as the lockdown opening phases continue to loosen, consumers are coming out and supporting the economy. Pent-up demand is starting to be released and we think this momentum will also continue and will translate into more listings and sales as we move into the summer months. The busy spring real estate market may have simply been postponed until the summer.
It will take time to climb out of this COVID-created economy but the above trend lines show that we are on the right track, building up consumer confidence and momentum.
Let’s keep rowing in the same direction and overcoming COVID and its effects.