From a numbers perspective, it isn’t a seller’s market at the moment
The burning question on everyone’s mind. Is now a good time to sell your home? According to Zolo, the market has slowed down in April in comparison to 2019. Whereas in March 2020, the house prices were still rising in Toronto. If you really need to put your house on the market, then you have to be willing to deal with all the complications that this pandemic brings. That means limited access to movers or moving trucks and additional cleaning measures. And, some real estate agents are also putting sales on pause until they can meet again in person. Lastly, you need to feel comfortable buying a home virtually.
Toronto house sales in March were better than April 2020
From a numbers perspective, it doesn’t seem to be a seller’s market at the moment, with prices dropping 6% from March 2020. That being said, home prices are still extremely high and unaffordable to homebuyers in the Greater Toronto Area. As well, strict mortgage measures have been put in place for eligible buyers and tests for job security.
Fewer listings means fewer options
In a buyer’s world, this can be seen as negative. However, fewer listings can be beneficial to the seller. This means that the market is less saturated and less competitive, which can actually help your listing stand out. As well, the market is currently neutral as there is an equal amount of listings to transactions, and prices are at a standstill.
Disease control & cleaning measures
The COVID-19 outbreak has drastically affected the way that real estate agents sell homes. The government of Ontario plus the real estate board of Ontario have mandated virtual viewings to be put in place during the outbreak. Additionally, once the home sells there needs to be extra sanitation and disinfection of the home to avoid Coronavirus contamination. Thus, adding additional fees to selling your home. As well, when you are moving your furniture and goods from one place to another you have to put social distancing measures in place, which can make the move very time-consuming.
Some homeowners have no option, but to sell
The uncertainty of the world in a health and financial crisis doesn’t allow us to properly predict the future of the real estate market. If you don’t have to put your home on the market, don’t. Now isn’t the best time to sell your home. Prices are remaining stable, which means you will still get a high selling price for your home, but the sale price won’t be an increase from the year before. However, not everyone has the luxury of waiting to sell their home. Some families need a larger home to accommodate a growing family or others are downsizing as they cannot afford their current home. As well, some homeowners already sold their home pre-pandemic and are looking for a new place to live.
The real estate market is a big question mark for the moment
The crazy part of this whole situation was that spring 2020 was predicted to be another great year for sellers. Prices in the Toronto market were continuing to increase as spring came around. However, the Coronavirus hit, and the economy took a downfall. The main point we want to get across is that the market is in a huge period of uncertainty. We have never experienced this health and financial crisis in our lifetime, so only time will tell how the market unfolds.