Real Estate Update

It’s been about five weeks since the actions taken to flatten the curve on the spread of Covid 19 have been in place, and as most were expecting, Toronto’s real estate market has been affected. 

What has happened is best described as “frozen” in comparison to some of the more dire predictions on substantial drops in housing values.

It may surprise some to learn that we are still seeing multiple offers in parts of the city! This is more the exception than the norm, but certain price points are still getting attention (in Toronto’s east end for example, the price point under $1.1 million on semi or detached) and certain condo units throughout the city. 

The first part of March was pretty much business as usual. Closing in around the 3rd week, activity started to freeze. This is important to note in that it doesn’t necessarily mean that values are dropping, more that activity was put on pause. 

Now for some very motivated sellers, they might be willing to accept a little less to complete the sale on must sell properties. But for the most part, that hasn’t really happened. 

We went into 2020 on a very torrid pace with prices shooting up fairly quickly, and demand high. The spring market never had the chance to become unsprung, so much of that demand went into pause mode. Uncertainty around major health (or other serious world issues) always have an impact in the short term on housing. 

For those who have been tracking the stock market, this enhanced the uneasiness surrounding covid 19. In February we all were feeling pretty flush, then come the third week of March, not so much so. But now, things are trending back up almost 2/3rds of most drops in people I have been speaking with. 

Buyers have been out buying property. Not as many, that’s for certain. But for those who were looking to buy, or having to buy, they are out there. Interest rates are super duper low and there is less competition to be up against. Protocols have been put in place and no where is it near what it was like to buy or sell a home a mere sixty days ago.

Virtual viewings, sometimes blind offers (buying without seeing), in person viewings with masks, gloves and the touching of nothing. Banks, Law offices, Real Estate offices…all have changed. Everyone I know is doing their part by listening to the suggestions of our government and health officials. Only the essential parts are being carried out.

Remember this when you hear in the news about how the housing market and it’s statistics have declined. IT IS NOT BUSINESS AS USUAL! But one day, and hopefully it’s one day soon, we will return. Until then, like everything else we are doing not in the norm, this will change as well. I for one miss seeing my family and friends. Hugging and high-fiving I await it’s return.