As we have reached a point where there is a lot of uncertainty in the economy and have been getting a lot of questions from people and clients on how the Real Estate Market will get effected with the Covid-19 virus situation in Canada and around the world. We want to help and provide some info on what we are seeing so far in the market and how we think things will go moving forward to help answer any questions people may have.
This can be a unsure times for a lot of people and with the real estate market being still very active at the moment and with so many people having closings coming up it is important to have a direction and ways to prepare for change. As a Real Estate Investor and small business owner I understand how this situation is effecting people and I myself have always followed the rule that if you are not sure or uncertain then don’t do anything until you know more information so at this moment until we know more its important do stay calm and wait for more information on the medical situation and economy fluctuations before making drastic decisions.
We have provided below some information on what we expect to happen to the market and some ideas to prepare for different outcomes:
- At this time we are starting to see a slowdown in the number of people going to see homes
- Most or all Open Houses are canceled
- We believe that the amount of sales will go down drastically as a lot of buyers will want to wait and see how the market plays out
- The impact in consumer confidence should have only a small impact on prices as there is still a shortage of inventory on market and we are still in a very much sellers’ market so we Don’t expect prices of homes to go down very much if they do.
- If you have purchased a home recently or sold a home recently we do not expect anything to get effected as of right now but please contact your mortgage broker and Lawyer to get updates on your current deal and also discuss possible outcomes for disruptions on closing such as delayed closings dates and etc
- If you are looking to list your home for sale it is still a good market to do so as homes are still selling but we are taking extra precautions with having hand sanitizer inside the home, not doing open houses, no overlapping showings and 3D Maps of the home to allow virtual walk through of the home are just a few strategies we use during this time. We do suggest that at this time we WAIT to list any homes on the market as it is best for the community as a whole
- If you are looking to buy a home and start going on searches then this is still possible and we do have precautions also such as wearing gloves, masks and doing all paperwork electronically. We are doing some virtual tours through video calls for buyers…At this time we do suggest to WAIT on any searches for homes as it is in the communities best interest for every to stay home
- If you own a home and are worried about mortgage payments because of lack of income from work during this time then please contact your mortgage lender or broker as a lot of lenders are offering different options for people such as deferred payments or skip payment for a month
- The government is launching a revised Insured Mortgage Purchase Program (IMPP). Under this program, the government will purchase up to $50 billion of insured mortgage pools through CMHC. This action will provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses
- If you are in a rental unit and are thinking that you might have difficulty to pay rent then please contact your Landlord and tenant board for info on what options you have http://www.sjto.gov.on.ca/ltb/contact/
Below are some changes that have been implemented for everyone to use:
- If you need up-to-date info on the Covid-19 then please get your info from proper sources: https://www.ontario.ca/page/2019-novel-coronavirus
- Please follow the Government instructions and stay inside your home to your part to stop the spread
- If you are looking to order food or supplies always think local business as they are taking very large hits right now and are going to be drastically effected and they need our help to be able to survive during this time
- The Big Banks have announced to assist home owners and small business with deferred payment plans …contact your lender asap
- Personal taxes have been extended to June 1st
- The Government of Canada is going to announce a plan to assist Canadians during this time of need so keep up to date with all the info. They are drafting a bill now they advised
- The Law society of Ontario has made changes to allow real estate purchase and refinances without meeting the clients face to face
- All overtime parking, signed or unsigned, will no longer be enforced on residential streets until further notice
- The best way to help your community now is to check in on your neighbours who are a lone or elderly and make sure they are in good health and spirits.
Use the following websites to keep up to date on the situation:
- https://ottawa.ca/en/health-and-public-safety/covid-19-ottawa/impacted-city-services#how-you-can-help
- https://www.ontario.ca/page/2019-novel-coronavirus
- http://www.sjto.gov.on.ca/ltb/contact/
- https://www.cmhc-schl.gc.ca/en/media-newsroom
At this time the best thing to do is to be prepared for you and your family but most importantly stay informed and up to date on the situation. We are in this thing together and we will make it out together if we all follow the instructions provided by the government and health professionals. Eat Healthy, Drinks lots of water, Tea and Juices and try to make the best of the time you have at home. The news and updates are coming and changing daily so its important to check the property authorities daily for updates.
I hope this information helps you during this time and help answer some questions you might be having and if you have any questions about any of the information or require any help during this time then please reach out to me and would love to help in any way we can.\
Sorin Vaduva - Sorin@capitalrealestate.ca - 613-262-9562
Stay Blessed and Stay Healthy!
