Zolo’s Analysis on the Impact of COVID-19 on the Greater Toronto Housing Market

As we try to grapple with the immediate and prolonged impact of COVID-19 on the GTA's housing economy, most of us look to the data, a way of quantifying the near- and long-term impact of this devastating pandemic. But real estate sales activity is a lagging indicator, and price adjustments can take even longer. To get a handle on the current crisis, Zolo examined 20 years of sales data for the Greater Toronto Area. The ultimate take-away: The housing market will bounce back.

Toronto, Canada, March 31, 2020 --(PR.com)-- To get a better understanding of the impact of the current pandemic, Zolo analyzed how past pandemics and financial catastrophes affected housing market numbers. While the COVID-19 outbreak is an unprecedented event, this analysis shows that the Greater Toronto Area housing market did recover from prior hard hits, including SARS, MERS, the dotcom bubble burst and even the Great Recession of 2008/2009.

Zolo analyzed sales and house price data going back to March 2000. By examining sold prices and sales activity, and comparing it to the 5-year rolling average, the data shows that only a few markets experienced significant declines amidst some of the hardest economic and health-related circumstances over the last 20 years. The big takeaway: Over time, sales activity and sold prices continued to appreciate upwards over time.

According to analysis of sales data up until March 26, 2020, it appears that all but one of the six largest GTA regions wrapped up the month of March with moderate to large increases to year-over-year sold prices. Only the Simcoe region reported a decrease (a mere 0.80%) in the average sale price.

Still, this optimism needs to be tempered, since all six GTA regions show a dramatic decline in sales activity as March 2020 came to an end.

After examining 20 years of data, it appears Toronto, York, and Peel consistently show price declines when faced with a health or financial crisis. Excluding the current COVID-19 crisis, the largest price decreases experienced by these regions were after the introduction of the mortgage stress test in 2018, closely followed by the price reductions experienced during the 2008/2009 Global Recession.

The Simcoe, Halton and Durham regions also experienced price declines throughout the last 20 years, but quite often these declines were not as frequent or severe as in other GTA regions.

For more on how each of the six largest regions in the GTA faired through past health and financial events, please go to: https://www.zolo.ca/news/gta-housing-market-covid-19

Given these historical patterns, Zolo is confident that the GTA's housing market will eventually stabilize. Zolo will continue to monitor the impact of this pandemic. For real-time sales data, go online to Zolo's Toronto housing market trends (https://www.zolo.ca/toronto-real-estate/trends).

About Zolo
Zolo is one of Canada's most popular online national real estate marketplaces. Each month, more than 9 million buyers and sellers start their real estate search using Zolo. As a tech-disruptor national brokerage, Zolo provides users the data and resources needed to make better-informed property decisions.

About Romana King
Romana King is an award-winning personal finance writer and real estate expert. She writes for big banks, insurance providers, newspapers along with businesses. She is an expert that is sought after by the media to comment and give insight on personal finance and real estate issues.

For more information or to schedule an interview, please contact:
Romana King, Director of Content at Zolo and award-winning personal finance writer
Romana King