Just when Canada’s real estate was off to a glorious start in 2020, an invisible pandemic storm came hurtling along, flipping real estate expectations of a red-hot spring season upside down. The property market in Canada saw itself in an unchartered scenario with open houses put on the backburner and real estate prices wheeling down till last April.
However, the sudden lockdown couldn’t derail the hopes of the real estate market. Real estate sellers took the online route to fend off any negative sentiments and enable business continuity. This transition paid off well as homebuyers resorted to virtual property tours for buying homes.
Home prices for the first time since March remained stable during May and showed signs of moving upwards. With the demand for new homes still high, the current inventory of homes has fallen short, leading to an uptick of prices in the real estate sector.
Real Estate experts feel that the worst is over and that the property sector will bounce back to its top glory. Let us look at the performance of the real estate market in different parts of Canada to get an idea of how they will fare post lockdown.
Ottawa Real Estate: The Ottawa real estate market had a mixed spring season. It witnessed a spike in home prices and a decrease in days on the market. These indicators pertain to the fact that the housing market is stable. Though the real estate fared in a topsy-turvy manner with high demand and a supply glut, leading to an increase in prices. However, in the last two weeks, things have considerably improved. Listings have seen an influx and multiple property inquiries have been recorded about the online process of buying and selling homes.
Toronto Real Estate: Toronto’s housing prices remained stable in the past two months as a result of a decline in new listings. According to real estate predictions, the property market in Toronto will not experience any decline in real estate prices at least in the coming months owing to huge latent demand. Properties are selling at quoted prices and in some cases slightly below or above the price point. The city has experienced a housing shortage as homebuyers were reluctant in listing their houses. However, realtors believe that listings will improve as soon as the six-month mortgage deferral period expires. People will advertise their homes if they can’t afford to pay for their upkeep.
Edmonton Real Estate: The real estate market in Edmonton received a severe blow to its real estate expectations due to a fall in oil prices and unemployment. Real estate prices in the region went south with some properties selling at below the asking rate. Edmonton had a population of millennials who are keen on buying new homes. At a time when new construction of houses has been stalled, the demand for new homes has shot up. Moreover, downsizing has been reported where buyers are shifting to smaller houses putting their condos on sale. This development can however absorb the demand for bigger homes. However, the employment status of the region will determine the fate of the real estate market here.
Calgary Real Estate: Calgary real estate has also suffered due to depreciating oil prices. A supply glut has kept prices steady and sales are only happening in neighborhoods where properties are priced appropriately. However, in some other suburbs, property prices have fallen drastically and if the pandemic scenario continues, a 5% correction in property prices is in the offing. Experts predict that properties quoting high prices will have to bear the brunt of price correction while lower-priced properties will remain stable.
Vancouver Real Estate: Vancouver’s property market is in the midst of wide property fluctuations. But the city did good business in the property sector. Condos priced at $2-5million have been selling well as the confidence of people has increased with the easing of restrictions. Buyers in the high-income bracket are interested in investing now, in spite of a high unemployment level.
Canada’s property market is slowly getting back to its feet. Confidence of home buyers is slowly kicking in with the easing of lockdown restrictions. Though home sales dropped 50% in April, the property industry bounced back with online real estate sales quoting just 10% below previous years’ sales. The odds may be there, but one thing is sure-the pandemic failed to quash the party of home buyers.