CORONAVIRUS (Covid-19) and THE TORONTO REAL ESTATE MARKET.

CORONAVIRUS (Covid-19) and THE TORONTO REAL ESTATE MARKET.
Toronto's Anvil Building on Front Street

What is the real story of Covid-19?

If you are a “News Junkie”, like me, and have been following the story of the virus Covid-19, including, cancellations of school, work, events and travel options. It is very hard to get pragmatic advice but today, I received an email with an interview with Dr Peter Nord, Chief Medical Officer of Medcan, a health and well-being organization. Have a listen to the most recent podcast which really gives a cogent opinion on what is transpiring globally without the dramatic presentations that you may be viewed in the Media. There is a lot of confusion so do yourselves a favour and take the time to listen to this interview about Covid-19. It is well worth the time to get a common-sense take on Covid-19, the future and best ways to protect yourselves.

How will Covid-19 Affect the Real Estate Market in Toronto?

Remember that Toronto was a very strong recipient of SARS in 2003 and it was similar in effect.  What we could expect from a repeat performance on is unknown but if we go back to those earlier days, the market did slow as buyers hunkered down. However, today’s market has shown to have numerous buyers for each property that becomes available. The numbers of offers may reduce but that may be an excellent opportunity for those buyers that persist in searching for their dream home.

Sellers may have to be somewhat more flexible and be open to seriously considering good offers if their intention is to sell. It’s always best to sell and buy in a similar market and the reaction from the Bank of Canada has been to lower the prime rate which may also act as a stimulus to this market.

My suggestion would be to keep looking at homes, use your computer and apps like Real Estate Dot Love, which you could download by clicking here. You may want to avoid Open Houses or be vigilant about handwashing and physical expressions like hugging or handshaking just as you would in a strong flu season.

CORONAVIRUS (Covid-19) and THE TORONTO REAL ESTATE MARKET. 2
Technology Tools abound for home Buyer and Sellers

Technology has advanced greatly and you can sign and submit offers without anyone coming face-to-face if you are high risk and/or greatly concerned about the Virus.

If the timing is right for you and your Home Dreams then move ahead and take advantage of the marketplace. Toronto has never been a quiet easy market. So much affects our real estate microcosm, that it has proven to be constantly in flux. There are only good and bad times in hindsight.

“No one ever overpaid for the right home”.

Those who years ago predicted the “Toronto Real Estate Bubble” and the crash of it have only found themselves priced out-of-the-market in Toronto. They now are moving farther away and commuting more in a region where traffic and roads are not keeping up with the population shift. They find themselves “driving till their mortgages are approved”.

Don’t let yourself be forced out of the market, even if it means an expectation adjustment. Can three bedrooms and a den allow more options than 4 bedrooms?

Always expect a real estate adjustment but that does not necessarily mean a downturn…especially in the Greater Toronto Area. This past month Toronto Regional Real Estate Board stats and commentary can be viewed here.

For further information:

Ontario Ministry of Health
https://www.ontario.ca/page/2019-novel-coronavirus#section-0

Toronto Public Health
https://www.toronto.ca/community-people/health-wellness-care/diseases-medications-vaccines/coronavirus/

Public Health Agency of Canada
https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection.html

World Health Organization
https://www.who.int/emergencies/diseases/novel-coronavirus-2019 

Centres for Disease Control (CDC) – United States
https://www.cdc.gov/coronavirus/2019-ncov/index.html

8 Replies to “CORONAVIRUS (Covid-19) and THE TORONTO REAL ESTATE MARKET.”

  1. Do you think that the situation covid 19 could have an impact on the house market do you think prices could start going down,???I’m only hoping they would because we are planning to buy!!

    1. Thanks very much for your question. The only similar (if possible) situation is when we dealt with SARS. It had a great effect on the Toronto economy but at the end of the day the Average Sale Price did not go down, activity did, however. Coronavirus seems to be much more serious and the panic is at a higher level. There will probably be some very good buys in the marketplace however if there are sellers who must sell. Sellers who are deciding to wait, if there is a correction, it may be best to keep on the market and sell at the top of the correction rather than adjusting as it moves downward. I am hoping that the Banks may alter their Mortgage rates, but time will tell. That will allow you to finance your purchase to a higher degree. I am responding to this full speed ahead. It may be foolhardy but I have lived through a few ups and downs and it is how you react to the change that counts. In the meantime, take all the suggested precautions. Search more online till we get a better picture of what is transpiring.

      1. I think the dynamics are different from Sars. This is a global pandamic. Canada’s economy is dependent on US where businesses are running razor thin. More lay offs. My daughter is a CEO on Wall Street where she and her peers are laying off and shutting down divisions with mass lay offs. Off shore , esp Canadian branches are first to go. Even if interest rate is zero and there is no income( with domino effect) how are Canadians going to pay zero rate mortgage installment, never mind paying rent on investment condos.
        I would take your cocky assessment like someone who has his head in the sand. If half of Canada is shut down and dependent on UI, feeding supersedes shelter.

        1. I appreciate your comments and must admit that I have always been someone who sees the glass half full. That is the way I like to see the World…Often, moments like this become a self-fulfilling prophecy. I chose to be more optimistic. I was very involved in the early days of the AIDS epidemic, lost half of my friends and had lots of survivor guilt but chose to do what I could in a positive manner. There is definitely a lot of negative to contemplate. I choose to look at we can do in a creative and positive manner. Let’s see what we can do to move forward through this…

        2. Sigh– Banks aren’t lending at 0 %, the US Fed (ie central bank )is lending to US banks at close to 0%.

          Really your daughter is a CEO– let her explain it to you LOL!

    2. Yes, market going to crash. Even earlier in this month has a trend of multiple offers but today it changed. Going to be worst in next 6 month.

  2. Yes, I would say this time it IS different.
    We are about to see some drastic changes in RE.
    But it will be a sticky decline. BUT yes a decline.

    1. I understand your concerns. There will be a correction in Toronto however there is still a shortage of product and a pent up demand. When you say decline do you mean activity or pricing as they are separate functions and do not always coordinate with each other?

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