Spring and Summer are hot seasons in the real estate market.
At the beginning of 2020, in January, February and the first half of March, the Real Estate market in the Greater Toronto Area (GTA) started to get hot at a very fast pace. The house prices had over 10% growth during these months. But the coronavirus outbreak—with its quarantine measures and economic uncertainties – many real estate buyers wondering: Should they buy a home now, or wait?
How COVID-19 impact the real estate market?
While it depends on how bad an outbreak an area is suffering, most markets are feeling some sort of hit.
Real estate stats show fewer home buyers searching in the marketplace, all listings get very few requests for showing and many sellers decided to cancel their listings while other sellers decided not to list at all.
However, very low mortgage rates tempt buyers to shop around anyway, without any significant overall change in buyer behavior.
For those who are determined to buy a home, there is an opportunity out there. Coronavirus crisis has created a buyer’s market
Many nervous sellers are willing to accept low offers for their homes. In addition, interest rates have been at its historic lows. So, buyers can own a property with less down payment and lower monthly mortgage payment.
There is less competition because of the crisis and buyers can hunt better houses or condos with prices lower than current market value.
The history shows the window of opportunity for buyers will not stay open wide forever. The temporary softening of the home prices will likely be followed by a strong rebound, once the quarantine is lifted and the market goes back to normal.