Recent sales data from Toronto and Vancouver confirm fears that housing sales are continuing to dramatically decline, but while volumes have plummeted, prices remain steady.

The most recent data from the Toronto Regional Real Estate Board (TRREB) shows home sales declined by 69% in early April compared with the same period last year. At the same time, new listings also declined, falling 63.7% compared with the same period in 2019.

A similar story in Vancouver where home sales totalled 1,109 in April 2020, a 39.4% decrease from the 1,829 sales recorded in April 2019, and a 56.1% decrease from the 2,524 homes sold in March 2020 (REBGV).

Even though housing demand had collapsed, supply is still at record lows, which helps sustain prices at their current levels.

Also, many sellers are not motivated yet to cut prices. They believe that once the restrictions are eased, buyers will be out in droves to chase housing sales that, because of the decline in listings, will still be in short supply.

Many of my clients have been asking me where housing prices will go in the future. I tell them nobody can predict the future, but most housing analysts/forecasters will tell you pent-up demand will likely push prices upwards when markets resume regular activity.

What I can tell you though is, the Canada Mortgage and Housing Corp. predicts housing prices will not return to “normal” levels until late 2022.