How COVID-19 could affect home prices in Toronto
Given the current situation, having so many industries affected by the COVID-19 pandemic, many future home buyers are now wondering how this current real estate market is likely to be impacted.
And as not just home buyers but all consumers become more financially concerned, things like real estate listings become less and less important, especially in a time of social distancing. So it makes sense that some would expect housing prices to fall under these current conditions.
However, most real estate experts agree that although Torontos housing market will be inevitably changed by the fallout of the Covid-19 pandemic, it's still up for debate how much, and in what direction this change will take place.
It’s likely that the entire Canadian real estate market may experience a cooler spring than usual as buyers hold off on acting during an economically precarious time. But, opinion still remains mostly optimistic, as a lot of people still, quite frankly will have to move during this period of time.
More specifically demand isn't easily swayed in most select large markets such as Toronto, where housing has been expensive and in tight supply for a very, very long time. The overall fundamentals of the housing market, especially in large cities such as Toronto and Vancouver, generally don't change very quickly.
Experts also point back to the housing market situations during the 2008 recession for worthy comparison, noting that though home prices dropped significantly in a very short period during that time a reduction of an average of 8% across the country, these prices trended back up quickly and continued to rise as the economy as a whole stabilized.
If things do go back to some state of normalcy relatively soon, the market will experience a strong bounce back once the majority of health risks have subsided.. That being said, those who do not need to urgently move at the moment likely won't act until that time, leading to a potentially softer market in the immediate future.
Given the ridiculous house prices in some parts of the country, if you have the means and intent to purchase, the next few months may just be the best time to try and do so, but don't expect the good times to last, unless you're a seller.