by Nutan Brown
on Monday, May 4th, 2020 at 9:24am.
Greetings from the safety of our self isolation to yours. As we continue to practice social distancing and follow the latest health recommendations, we wanted to ensure you that we’re here to answer any questions you may have as a buyer or seller during these uncertain times.
We are still able to show properties if necessary, and are now offering virtual showings to service our clients from the comfort of their home. Although it's not ideal, we are adjusting to the new normal and will do everything in our control to ensure your peace of mind when entering the market.
While we cannot predict exactly how the market will respond to the new rules and regulations, we can still offer some insight into what we can expect in the short- and long-term of this health crisis.
Before COVID-19 was declared a pandemic, the spring real estate market was set for a record breaking year. Toronto home sales rose 45.6% year-over-year in the month of February, indicating the busy spring buying season had started fast and early.
Despite this strong start, we are now seeing market activity slow down as new rules and regulations are put in place. Many buyers are reluctant to enter the market during these difficult times, and sellers are hesitant to accept offers on their home that were lower than expected.
While the real estate industry has no doubt taken a hit, there are still a number of buyers looking to capitalize. According to TRREB, more than 1,600 homes sales were made in the first half of April. Overall, those who don't have urgent real estate needs will most likely wait on the sidelines, while motivated buyers will seek to make a purchase.
The good news is that the Toronto real estate market is built on a strong foundation and is expected to pick back up once restrictions ease up and business is back to normal. A new Royal LePage report predicts a year-over-year increase in aggregate home prices if restrictions loosen by the end of Q2.
"If business activity resumes by the end of the second quarter, the Greater Toronto Area may see a year-over-year increase of 1.5 per cent to its aggregate home price by the end of 2020, increasing to $861,100.”
Due to the limited inventory available, combined with the population growth in Toronto, we can expect market activity to resume and recover quickly once we’ve mitigated the health risks from COVID-19 and the financial markets stabilize.
As we continue to monitor the situation, we encourage you to reach out to discuss any questions or concerns you may have, or even just to chat. Remember, we are not stuck at home, we are safe at home!