COVID-19 changing our views on the market
The COVID-19 pandemic has lowered our sentiments on the future of the market. In today’s video, I would like to talk about how it will impact our real estate industry. Due to the current pandemic situation, a few of my clients have already called me and asked if there are any price drops in the market. For most people, financial security is extremely important. They are coming to me to look for ways to increase their financial growth. The following statistics are the before and after the province declared a state of emergency. Our transactions decreased by almost 50%.
However, the prices have not changed yet. First, due to the liquidity of housing, housing acts as the last indicator of whether we are headed into a bull market or bear market. In the short term, we will not see any changes in the housing market. However, in the long-term, we will see that the housing market may plateau or go down depending on how long this current crisis lasts. This also includes how capable our government can cope with the virus. The numbers coming out of Korea and China are indicators that the shutdown can be shorter and more effective than we initially thought. They are seeing fewer and fewer cases that indicate that they are heading into the recovery stage. I sincerely hope that our government can take this as seriously as possible to mitigate any potential loss.
On February, our number of sales increase more than 46.5% compared to the same month the previous year. Our number of sales will slow down due to the social distancing order from the government. Additionally, the Ontario Real Estate Board has stopped all face to face businesses which includes no open houses or in-person showings. This scares away many buyers. As of March 25, 2020, in my opinion, it is in your best interest to not sell your property unless you are facing a greater financial problem by holding on to it. On the other hand, if you really need to sell your property here is some advice for you. As the sentiments of people change, they may want to pay less than the normal comparable price for your property. Since October, we have seen a price increase of 6.5%. Due to this, I strongly recommend that you use what your neighbourhood sold for in the late 2019 instead of what they were sold for a month ago. This is because of how much our market is fluctuating and uncertain right now, you will have a better understanding of your house price if you are using last years numbers. Our team offers the following service when it comes to selling a home. This includes easily accessible virtual tours. A nice and unique video with a real estate professionals description on your units Face time tour with the agent E-meeting with the agent using Google Hangouts, Zoom, Facetime every day to discuss the current market situations