The impact of the coronavirus pandemic on the real estate market has been significant. As the government continues to contain the virus’s spread and supports the market, we are approaching a time when it may be a good idea to put your house on the market.
Bank & Government Support
While it’s hard to predict how long the coronavirus will continue to impact the market, it’s safe to say that the market is entirely different from a few springs ago. Instead, to protect the economic implications of the spread of the virus, the Bank of Canada cut interest rates three times to bring the lending rate down to 0.25% and is the lowest it’s been in years. The six larger banks in the market also followed suit with substantial cuts to their rates, which has made it easier for individuals to secure affordable lines of credit and mortgage rates, assuming they qualify.
Government aid has also helped keep the market afloat. Both individuals and businesses have benefited from new fiscal stimulus programs. The government has also been adding additional support to programs already in place to accommodate those who may need additional support. But, as lowered bank interest rates and programs put in place by the Canadian government begin to expire and return to normal, Canadian buyers and sellers can expect to see a more substantial shift in the market this fall.
At this time, the real estate market remains relatively vacant. Still, as the economy begins to restart as the pandemic is better contained, it is becoming apparent that sellers should be keen on putting their properties on the market as soon as possible. While April saw a steep decline in the number of home sales, the good news is that home prices have not yet taken much damage from the pandemic. With a growing demand for property, limited available homes, and steady prices in the market, now is a great time to sell your home.
Additionally, for individuals looking to move, selling your home now, and buying when market prices begin to fall as more homes are listed will prove to be profitable. Spring is typically one of the Canadian real estate market’s top-performing seasons, but thanks to the pandemic, such historical trends are no longer applicable for 2020. With the current economic climate in mind, homeowners looking to sell should strongly consider doing so now to get the best price for their property.
If you are looking to buy or sell a property in the GTA, please contact Mehran Redjvani of Re/Max West.