March 25, 2020
Wondering what it going to happen with the real estate market during the COVID-19 outbreak? Me too!
Here’s my prediction:
Inventory will shrink as we will have far fewer new listings and many existing listings withdrawn from the market.
The demand is there, but will people be out looking at homes? This is the unknown factor. Of course there will be some pretty large layoffs during this time of economic contraction, which may effect who will still be able to buy a home, and of course there may be hesitation from those who are not going to be overly effected financially.
However, I do not foresee a dramatic drop in prices as the supply/demand curves will likely move together while our society is in quarantine (or whatever it is you want to call this time). Properties will still be shown, although special precautions will be taken to ensure that transmission of any virus carriers is not happening during this time, and offers will still be made. Some buyers may be in a better position to negotiate than others, especially if they do not have a house to sell, but sales will still happen.
Earlier today, Lawyers and Real Estate Sales people have been deemed essential services by the Ontario Government, so business will continue… but certainly not as usual. Volume will be down without question.
This may of course all change if we see this outbreak last into July & August, but demand for real estate in the Greater Toronto Area will always be in demand as our local economy is one of the most diverse in the country, and this outbreak will not last forever.
And when this is finally over, I fully expect the market to explode! Interest rates will be low, pent up demand will be large and it may take time for the supply to ramp up again.
So, while we go into a little bit of a hibernation period, I will be tooling up my business and preparing for the other side to come out running faster than I’ve ever had to run before!
Stay safe, and get ready if you are thinking of buying or selling!
Posted by dtoombs at 6:36 AM
Posted in uncategorized