I hope this email finds you well. The days all seem like a blur lately as we all rapidly await a way to open up our economy again to better days. It appears that Doug Ford will announce today that non-essential workplaces will remain closed in Ontario until at least May 6th. Hopefully by May 24 we see some opening up but as you, we have to wait and see how this goes.
I do have a link to updated Covid-19 numbers that are interested in tracking and see the numbers. I received this from a Pickering Councillor so they are legit. You can to go : https://app.powerbi.com/view?r=eyJrIjoiNDZkYzgzN2YtNGM2Yi00ZTQ0LTkzOTUtY2IwOTlhNzlmMWE2IiwidCI6IjUyZDdjOWMyLWQ1NDktNDFiNi05YjFmLTlkYTE5OGRjM2YxNiJ9 for more data and breakdown.
I am sure by now you saw on the news that home sales have dropped 69% compared to the same time last year .... that is no surprise. Who is out looking at homes right now during a worldwide pandemic. Not many. Just quickly looking at the stats this morning for Pickering I saw there is 199 active listings for sale. I also looked to see what has SOLD in the last 30 days and 75 properties had sold. So I took it one step further to see what the average price of those 75 was and it was 676,000. So that in turn, tells me exactly what I have been saying. Average sale prices in Pickering haven't been that low for a while. The lower priced properties are moving. Albeit slow for the most part they are moving. What is a struggle right now is the multi million dollar properties. They are taking the hardest hit because with unemployment at an all time low and the banks tightening financing... qualifying has become even tougher than before.
Let's face it - the bank doesn't want to put a mortgage on a million dollar home and if it even dropped 20% (which I think will be number when things settle down over the next two years)... that is 200,000... so for many that would have been their deposit .. so basically they would have been left holding the mortgage where the owner has zero equity in the property if that happens. I am trying to "dumb" it down so people understand and I hope I don't offend anyone. I just find when speaking of finances, it is easier to explain it in simple terms instead of all the other banking/real estate terminology.
Is the market going to have listings and sales after this... my answer is YES. People will be selling. For many reasons. Employment changes, family situation changes, financial security has changed etc. So don't think you won't see homes for sale. You will. Don't think if you are planning to sell, that is pointless... it isn't. I listed a property last Monday and we had an offer on Tuesday. So people are still looking to buy .. maybe because of necessity and they have sold their home or maybe their Landlord is selling their home and they have to vacate. People will always move. Real Estate will continue. Good or Bad... the market will continue to List and Sell.
There are people out there saying the market will take a 50% hit. That is absolutely ridiculous and it won't happen. My number is about 20% and that is my guess... and to some that may not seem big enough but if you think of the current home prices pre-Covid - 20% is a lot of money. Now keep in mind - if you are selling in a deflated market - you are probably buying in a deflated market and saving money on the purchase so it will be a wash. If you are upsizing and losing on selling your initial investment you are buying a bigger house at a price you probably couldn't get pre-Covid. So it is not all gloom and doom out there. There will be opportunity for some in this.
I had a Zoom meeting last night with Reder Paralegals (www.rederparalegal.com) These ladies are fantastic if you are having tenant issues or need a lease drawn up or need representation at the Landlord Tenant Board. They are reasonably priced and extremely knowledgeable. So if you have tenants that not paying utilities and or rent, please continue to serve them N papers even though the Landlord Tenant Board is closed.
So I guess for now, I am saying be patient, we will through this and once the State of Emergency is lifted and we can all get back to "real" business, I think we can all work on economic recovery. These are scary times for some. Many have lost family members without even the opportunity to say good-bye so I think we also need remain human and not just become robots about the markets, economy and real estate. WE will survive this and lessons will be surely learned by many, myself included.
I will attach some links you read about articles on real estate etc if you are interested and we will stay in touch my friend. Stay safe and I hope you will continue to think of me for your real estate needs, now and in the future.
https://t.co/rviAgum42s?amp=1 - Toronto Star
https://t.co/0ZgNHQfgsn?amp=1 - Financial Post
https://business.financialpost.com/real-estate/home-sales-activity-crashed-last-month-but-heres-why-property-prices-will-not-for-now - Bloomberg News
Happy Reading !!!
Stay Safe & Cheers,