The last few weeks have seen a dramatic global spread of the COVID-19 virus. With more that 190,000 people infected and death toll of almost 8,000, the world seems to have changed overnight.
With relation to the real estate market, we at One Group believe there is a temporary shift that may occur, as a consequence of the population staying home, businesses losing revenue, oil prices and the stock market being hit. As well as due to China being the second largest economy and manufacturer at a standstill, travel being restricted and many other factors globally.
Real estate will likely not be immune to these shifts. Right now, we are seeing mainly business as usual, with multiple offers continuing across the board, and above asking sale prices, indicating a healthy market.
Our forecast at One Group is rooted in experience with past market shifts. In 2017, when the government announcements were made, the psychological impact on buyers resulted in a drastic slow down of the Toronto real estate market. A few months later however, prices began to climb once again demonstrating our market’s strength and resilience.
People need homes to live in. And there will always be properties for sale and buyers who need to buy. As we can see now, because of the supply shortage and incredibly high demand, prices and multiple offers are at an all time high. When this temporary blip subsides and is resolved, the Toronto real estate market will be back stronger than ever.
Anyone on the sidelines may want to be vigilant and ready to take action. While we sympathize with anyone affected by this pandemic, it is also our duty to give our clients the best advice. The next few months will see many buyers retracting. This, in combination with the recent interest rate cuts, creates an opportunity for our buyer clients in an environment of reduced competition.
If you would like to have a discussion on this topic, or have some personal concerns or questions, we are happy to schedule a call at your convenience.
Sending you all wishes to stay safe and be well.