100 Queen condo downtown . What are the short-term prospects of real estate, residential real estate? Despite the global pandemic, prices in the notorious residential real estate market have been rising over the past few months, which is hard to believe for some in the industry.Please Visit: 100 Queen condo downtown to Get Your VVIP Registration Today!
After all, the dire state of the economy will lead to a recession in an industry that relies heavily on people to invest large amounts of cash, right? In other words, common sense suggests that the real estate market will inevitably correct itself and flatten to better reflect the local economy. We asked seven market experts whether a housing crash was imminent.
“I didn’t expect a major decline, but I did see some big warning signs in the supply and demand equation. When we look at unemployment, 1.8 million Canadians are jobless than they were four months ago. Some of them are homeowners and some are investors in residential real estate. According to the economic and employment forecasts you look at, there will still be a lot of people who will not return to the labour market by mid-2021. If so, once government subsidies (CERB and business loans) dry up, people will start to gobble up their savings. And then they start to say, “well, I need to sell.” And I don’t think we’ve seen such painful sales. But once that happens, that’s when we see the market go down. This could lead to an imbalance between supply and demand, with people trying to sell houses and not enough buyers.
“there is also the problem of delays in home ownership. People will need some time to recover their finances so that they can afford houses and get mortgages. Pandemics cause people to delay getting married or having children, which is often an incentive to buy a house or move to a bigger house. When these stages of life are delayed, the purchase of a house will also be delayed.
“in addition, we usually have 100000 new immigrants join the GTA every year. Whether they buy or rent, this is a great boon for the real estate market. But we know that immigration will decrease because there will be less international travel. You can’t move as freely as you did six months ago. It could also weaken home sales over the next year or so. It will also slow down rents for students and multiple families.
People have also been going to banks to postpone mortgage payments. But technically, even if there are arrangements with banks, they are the default. The Canadian Bankers Association (Canadian Bankers Association) points out that 24% of Canadian households are in technical default because homeowners are asking for an extension of the mortgage. Many of these extensions will expire in a few months, when we will have a better understanding of who can still afford mortgages. It is hoped that the economic rebound will be strong enough that we will not make waves again. “
“with the advent of May, we began to see a rebound in home sales. I think part of the reason is that real estate agents and their clients are starting to take advantage of new technologies, real-time streaming of open houses and virtual screenings. So when we entered stage 2, we did see an improvement in May and an improvement in June. People seem to be increasingly confident that we will begin to enter the recovery period.
“apart from our brief fluctuations from the second half of March to the end of April, the number of sales is relatively high compared with available housing. This means that there is enough competition among buyers to continue to exert upward pressure on house prices.
“We have seen a lot of home buyers returning to the market between June and July. I’ve lost a lot of jobs for the time being. The recovery there is very strong, according to Statistics Canada in June. When people think about buying a house, they are obviously making a large down payment, but they are also considering their ability to repay their mortgages in the long term. The more confident they are about an economic rebound and the more stable their incomes, the more likely they are to consider buying. Because, obviously, if they are confident in their working conditions, they will want to take advantage of the low interest rates they can now get.
“in our recent update of market forecasts, there is now a degree of recovery. I think this will bode well for the future housing market. In fact, the consumption sector of the economy, such as housing, is usually the main indicator of recovery. So if you look at the kind of figures we saw in June, the average selling price was $930869 and more than 8000 houses were sold, which may indicate that the situation will improve as we move forward. “
“the current market is terrible. Bidding for war. Blind auction. A bully’s offer. Multiple discounts. The price has gone up by double digits. Many people can’t believe how it happened that the core of the city was empty in the midst of a global pandemic, while the unemployment rate in the Greater Toronto area was as high as 13%. 8 million Canadians spent four months under the government’s efforts, while the decline in GDP was the biggest on record. However, when it comes to real estate, it’s like we’re having a party in 2017.
“the reason is profound and short-lived. There will be no spring market in 2020 because it is said that we will all die of Covid, and stay in our underwear. So once life will go on, there is a huge pent-up demand. It usually happens in April, and when people first enter the real estate market, it happens in June this year.
“second, the money is very cheap. It’s cheap. Major lenders quietly provide less than 2% of mortgages over a five-year period. Even ten-year loans are only 2.5%. When the central bank was eager to save the economy from the pandemic, interest rates were slashed and billions of dollars were used to buy mortgage-backed securities. Liquidity flows to various industries. Of course, as the cost of mortgages falls, people can borrow more on the same income. okay. The fact that we no longer worry about too much debt unwisely pushes real estate higher.