M city 5 condos mississauga. What will happen to the Canadian real estate market? Novel coronavirus’s popularity has forced parts of the economy to shut down, while snow is melting in parts of Canada, usually a prelude to the busiest weeks of the year in the property market.Please Visit: M city 5 condos mississauga to Get Your VVIP Registration Today!
So far, it’s hard to say. Romana King of the real estate website points out that real estate is what economists call a “lagging indicator”. This means that economic trends usually take some time to be reflected in housing market data.
“the relevant data will not be reflected in a week to three months from now,” King said. ”
However, there is no doubt that the COVID-19 epidemic has now brought earth-shaking changes to the industry.
In February, the real estate market in many parts of Canada seemed to have a hot quarter. Compared with the same period in 2019, home sales increased by nearly 27%, and the national average house price rose by 15%.
But now, real estate agents hold client meetings online, look at houses online, or take clients to see houses with hand sanitizer and gloves.
In some real estate companies, the new policy includes disinfecting doorknobs, cabinets, countertops and other high-contact areas before and after each visit. In addition, handshakes are no longer performed.
An online notice read: “We keep at least 6 feet away from each other.” This rule applies equally to both agents and customers.
However, despite the industry’s efforts, the biggest change that Romana King noticed was “the buyer’s extreme reluctance to visit the seller’s house”.
Mr. King said some people are uneasy about economic uncertainty and are pressing the “pause button” for home purchases.
Others are because lenders have pressed the “pause button” for them.
‘it happened to a client recently, ‘says Ron Butler, owner of Butler Mortgage, a mortgage broker. The company provides services in the Greater Toronto area, Ottawa, Vancouver and Calgary.
Two weeks before the deal closed, the lender conducted a routine check on the borrower’s employment and found that the customer who worked in the hotel department had been temporarily fired and had no fixed return date.
‘so the mortgage was cancelled, ‘Mr. Butler said.
Butler is optimistic about finding a possible solution for his clients. Possible alternatives, he said, include finding a co-signer or signing up with another lender that is willing to take higher risks but with higher lending rates.
‘buyers in this situation could lose thousands of dollars in margin, ‘Mr. Butler said. If the seller has to re-list and ends up selling at a lower price, the original buyer may have to bear the loss of the price difference, although they may settle the compensation issue through litigation.