As we’ve now entered a new phase of the Pandemic, it’s clear now that Covid-19 and its impact on our daily lives will be lasting. While many of the changes to our daily lives have been drastic, there are stll many shifts that will be much more subtle and longterm. Admist it all, we’re fortunate to have access to so many digital platforms that connect us and offer some continuity of what life was like before Covid-19 gripped our city.
For those in a position who need to Buy or Sell their home, the market is indeed still active. Realtors and other related professionals were deemed essential for a reason. People still need to buy and sell their homes for variety of pressing reasons. With that, there are alternate ways we can facilitate real estate transactions. Realtors are relying on tools such as video and 3D Virtual Tours and agent previews. We also benefit from available floor plans detailed photography of the home’s mechanicals that help Buyers on thier search. Digital signatures are also quickly becoming the means of facilitating contracts.
All face-to-face meetings with clients can now be done through Zoom and FaceTime. It’s not uncommon now for an agent to take their Buyer client virtually through a house via Facetime. These critical platforms mean that agents can continue to serve their clients.
Curious about the impact of Covid-19 on the market?
Yes, the pace of new listings on the market is definitely slowing down. The number of new listings has dropped by 46%, compared to March 2019, but that hasn’t translated to significantly lower sale prices. Transactions are still being done, even with multiple offers. To-date, there has only been a 9% drop in the number of properties sold in March 2020, based on a year-over-year comparison. But, the April picture may indeed look very different.
Are There Opportunities for Buyers?
Yes, but we haven’t yet seen real predatory buying yet. A cursory search of current listings on TRREB reveals that only 24 listings have reduced prices in all of Central Toronto (In ares C01 – C12). This is likely to change. There are Sellers who are pressed to sell in this market, likely because they got caught in-between buying their next home selling their current home. The overall message is DON’T BE A PREDETORY BUYER. The situation is temporary. The Federal Govement is taking extrodinary measures through the Emergency Care Fund and supporting businesses to keep people financial afloat during this time.
The start of 2020 began with strong ownership demand, and although new listings have slowed down, homes are still selling. The impact of Covid-19 is very much a function of how long we’ll be gripped by this Pandemic, but all indications point to a roaring real estate market, when life returns to some level of normalcy. Even if prices drop 10% that still takes us back to October 2019 prices.
Do you have questions about real estate professionals are working to ensure everyone health and safety?