How is Toronto’s Real Estate Market Coping with COVID-19?
This is undoubtedly a time of uncertainty around the world, but how exactly is the Coronavirus affecting Toronto’s red hot real estate market? I asked my Instagram followers for their burning questions.
Here Are My Answers for Your Most-Asked Questions:
Q: What’s going on with interest rates? Do you see them going lower? Should I renegotiate with my lender?
A: Interest rates have been decreased again in an effort to keep the economy afloat in the midst of this health crisis. There really isn't much lower they can drop to. If you are near the end of your mortgage term, have a chat with your bank or mortgage specialist. Now could be the perfect time for you to lock in a new rate. You're one of the lucky ones if your mortgage is coming due in the next few months.
Q: Has the Toronto market started to cool off or is it still going strong?
A: I am seeing some strong sales in Toronto, especially last week. Showings have decreased and the total number of offers on a typically 'hot' property has decreased. That being said, transactions are occurring and the sale prices have been strong.
Properties that are less in demand (i.e. those with higher price points and those which typically do not attract multiple offers) are taking time to sell, or are being removed from the market. I suspect to see more and more of this as Torontonians are being asked not to leave their homes for non-essential tasks.
Q: Do you foresee this crisis hurting higher-priced or lower-priced listings more?
A: There is no doubt this will negatively affect higher-priced homes more. In the lower price points, there was already a huge serge in prices over the last few months — specifically in condos under $700k and homes under $1.5m. The buyers in these categories seemed to be in a panic to secure homes before they became completely unaffordable. Interest rates dropped to new lows making first-time buying even more affordable. Many of these buyers have not lost hundreds of thousands in the stock market and are using this time to snap up properties that may have had more competition weeks ago.
Q: Are open houses still happening?
A: The Ontario Real Estate Association (OREA) has asked for all open houses to be cancelled and they strongly recommend buyers use online tools such as virtual tours to view homes. Stay home and shop from your computer and use technology to help you avoid contact.
Q: What are some home improvements I can do while I’m stuck at home that will pay off when I go to sell?
A: This is a great time to do those tasks you often put off and save for a ‘rainy day'. Those 'rainy days’ and potentially weeks are here! Use that leftover paint to touch up walls, trim and doors. Add that laundry shelf you've always wanted but never had the time to put up. Declutter your basement and closets and pile things you'll never use again into one spot so you can donate or dispose of them when it’s safe to do so.
Change up the hardware on your kitchen and bathroom cupboards. Walk around the house with fresh eyes and fix those small items you would never normally notice (loose door knobs, burnt out lightbulbs, tighten cupboard doors). Most of the items you need to get these chores done can be ordered online and delivered to your home. Better yet, you may already have them!