First of all, we hope you and your family are staying safe and healthy. If we all stay strong together we can overcome the corona virus pandemic.
Many people have asked us how this will impact the Toronto real estate market. No one can predict the future as you know every day this situation is constantly changing.
Here are some recent implications to buyers, sellers and leases our team has seen over the past few weeks.
1. Fewer buyers in the market now. Social distancing is limiting showings, open houses and interest in making a large purchase in these uncertain times. Some investors are putting things on hold; however, first time buyers looking are still active.
2. Prices right now appear to be frozen but may slightly decline over the next few months due to fewer buyers and demand in the marketplace. Sellers may be resistant to drop prices depending on how long and severe the corona virus will impact our economy and if a recession is around the corner.
3. Mortgage interest rates are going down supporting buyers with cheap money again. A client recently received a 2.15% variable rate last week with a major bank and it could drop below 2% this year. This should avoid a crash like we have seen in the stock market and real estate may be a safer long term alternative to stocks at the moment.
1. Fewer listings in the market now. Some sellers are putting things on hold since they may not want buyers going through their home at this moment. The typically hot Spring market will most likely see a large drop in sales volume as demand and supply should fall.
2. Multiple offers are declining now and open houses cancelled may shift real estate to a balanced market. With a balance of buyers and sellers we may see prices stabilize or decline depending on the neighbourhood and type of property.
3. It may take longer now to sell in this marketplace and pricing strategies are changing back to the traditional market value listing. Virtual listings and tours are now more common practice.
1. Tenants may be having a challenging time paying their rent if they recently lost their job. The government is doing their best to support their citizens but it may take time to receive those government checks to help out.
2. Landlords also may be struggling to pay their mortgage if rent checks are not received. Banks are doing their best to offer deferral payments for mortgages if needed.
Feel free to call me directly at 416-705-2444 or email with further explanation or questions on the above. Also, check out our website at http://www.modernfamilyreal
We can also offer clients some budgeting, mortgage, accounting or tax tips as our team includes expertise from a CPA, mortgage advisor and tax accountant.
If you use Ufile to file your 2019 Income Tax return, use voucher VENGVFVA7P for a 25% discount.
Wishing you and your family all the best from the Modern Family Realtor team.