Who would have thought March 2020 the world is locked down from Social Distancing, and half of modern society has been put to a halt by government enforcement to help battle the ominous C0vid 19 Pandemic. As we roll into week 3 of Government Induced business closures and social distancing, economic uncertainty looms in our horizon with 16% Unemployment rate in Canada. 

Let’s reflect where we were in real estate in the GTA before the closures and social distancing. TREB annual reports came in strong for 2019 , Toronto High Rise Appreciation was a whopping 16.7% from January 2019-January 2020. The hot Real Estate market in the GTA was setting up for a “Super Hot” Spring launch. Downtown Toronto Resale for High Rises were Edging $1300 Per Square Foot, and Pre-con Pushing $1600 PSF. 

March 23rd Doug Ford introduced the Essentials Business List permitted to operate during Provincial Lock Down. This officially launches the closure of non essential businesses kick starting the dominoe effect to an inevitable technical recession in Canada. Silver Lining, Real Estate is number 67 on the essentials list which allows transaction to continue during this unique spring market. Open Houses- are banned by OREA for public safety but showings are still permitted for sales with safety precautions. This opens the market to Virtual Showings and increase 3D Virtual Tours along with 3D Matterport Photography. Striving realtors are getting creative to continue and service the savvy buyer looking to capture a deal from desperate sellers and low interest Rates. Bank of Canada slashed Interest Rates 50 basis points hit an ALL time low 0.25% to stimulate the economy and allow house holds and businesses to borrow during these tough times. 

So what is in the forecast other than house party, face time, and zoom calls for the next few months leading to summer 2020? Buyers will be cautious and will put a damper on the traditional “hot “ spring market

• Pre- Construction: Possible Extended Deposit Structure for new purchases- builders being slightly flexible if payments coming out in next 3 months. All the spring launches will be pushed to Summer and Fall
• Great time to have a better selection as at platinum pricing

Will the Market Bounce back for Real Estate? Absolutely

– Government Stimulus will allow Small businesses to rehire existing staff, Airlines are working with skeleton crew, Restaurants Service teams will need to come back. 

• 10% wage subsidy increased to 75% starting march 27th back dated from March 15th
•  GST/ HST Deferrals till June
• CEBA Canada Emergency Business Account launched at $40,000 loan, first yr free, and forgivable up to $10,000.
• Prices won’t go up and they won’t go down they will “Freeze” and is an excellent time to buy.

What does this mean for resale buyers? You will save $$$$ Want to know how much you will save call Raymond Chong  our in House Mortgage specialist @ 437-929-7788 ( Sr Mortgage Broker with Mortgage Alliance connected with 69 Different Lenders) Any additional questions please call 647-972-8736 or email info@impactcondoinvestments.com