In Canada, real estate is considered an essential service. The real estate industry is continually moving and adapting to the changes caused by COVID-19, which is why houses, condos, and other real estate infrastructures are still currently up in the market.
The Canadian government is helping keep the economy stable by providing relief to Canadians and businesses, including the real estate industry. The Bank of Canada has lowered the benchmark interest rate to support and boost the market. With this, more Canadians can qualify for a mortgage with affordable payments. However, with the continuous increase in unemployment rate due to job loss and the changes in government funding priorities, there are still several significant effects on real estate.
Here is the current situation of the real estate market in Canada:
- Sellers are not putting their houses on the market
Sellers do not want to list their houses in the market, knowing that there are less interested buyers, especially now that the community is experiencing an increase in the unemployment rate. Fewer buyers mean less competition. Sellers are also concerned that they may not get the best value for their property at the moment. Sellers would rather wait for other buyers rather than sell their listing at a lower price.
- House sellers may compromise on their sale price
The effect of the pandemic to house selling prices remains unclear not because it is not directly affected but because sellers won’t put their houses on the market at a lower price. However, economists projected that house prices will drop by five percent in the next few months. One possible reason is that the unemployment rate is continually increasing, and so house sellers may have no other choice but to adjust their sale prices to get potential clients.
Selling a home in a down market takes a specialist. We are a top realtor in Surrey and know all the ins and outs of selling your home in any market.
- First-time buyers are uncertain about buying a condo
First-time home owners usually start with a condo because it is significantly less expensive than buying traditional houses especially in the Clayton and Cloverdale area of Surrey and in Langley. However, due to coronavirus, people are uncertain, and so they try to assess the situation first. This behaviour impacts the sale of condo units as new homeowners hold out for lower prices.
If you are unable to view your new home we advise the home inspection is not missed While a virtual tour can give you an idea of what your new home will look like a home inspection is the only way to know for sure that you are getting what you are paying for, in any market.
- Condo buyers rely on virtual tours
Most condominium apartments have decided to restrict the entry of people on their premises. Only the current residents are allowed to enter. With that restriction, first-time condo buyers cannot visit open houses. Now, real estate agents and buyers rely solely on virtual tours.
- Condo buyers are purchasing pre-constructions
Today, some people still buy units on pre-construction condominiums even if it takes five years before they can occupy it. Pre-construction condo units are significantly less expensive, and people can purchase one even in the comfort of their homes. Opportunities like Aloha Estates in the Langley area create no need for a new homeowner to purchase an already built condo.
The coronavirus is continually affecting real estate not only in Canada but in most parts of the world. With the implementation of quarantine and social distancing, real estate agents are adjusting and shifting to digital media more often to make clients. More than that, unemployment and uncertainty among buyers affect the sale of houses and condos.
If you are looking to buy or sell a property, call us at Corbin & Co. We are a top realtor in Cloverdale and Clayton Heights, and we can create a strategic marketing plan tailored for you to ensure that your listing will be successful!