General News

COVID-19 brings real estate market to a halt, ‘but it won’t last’ says local agent

May 7, 2020   ·   0 Comments

Written By ALYSSA PARKHILL

Home sales have dramatically plunged in Caledon in recent months as the effects of COVID-19, either forcibly or by choice, turn people away from the housing market. 

Realtor Anthony Caputo told the Citizen sales have dropped 75 per cent from this same time last year due to the pandemic. 

“There are only a few homes selling a month. There’s a lot of people fishing and throwing out unreasonable offers, and unfortunately those who have no choice and have bought efore COVID-19 happened, they’re taking whatever they can, because they’re stuck,” said Caputo. 

One of the main struggles Caputo, and most likely other realtors have come across is the ability for those looking for their new home to actually be able to view properties in person. With strict rules set in place regarding physical distancing, and avoiding human contact, home buyers aren’t able to go and see the home for themselves. 

“My analytics are showing a thousand people a week, looking at my listings. But no one’s able to come to the homes,” he said. “Everyone’s waiting for prices to drop. They think the market’s going to crash, but it’s not.” 

A recent report done by RBC’s economic sector show that resales have been only half of what they were last year and as the months progress it’s expected to continue in the same fashion. March was hit the hardest as a result of the Ontario government beginning the process of introducing social distancing measures, especially as February was off to a bright start for spring sales. 

So, what will happen after the COVID-19 crisis stabilizes in Ontario, and the provincial government starts to lift some of the restrictions it has put in place? Caputo expects a tidal wave of homes filling the market as those who have waited begin the process of selling again. 

“Right now, most realtors in Caledon are not working. We’ve been instructed not to work. But what I think could happen, once the restrictions are lifted, everyone’s going to decide to put their house on the market and we’re going to have a flood of homes. Usually Toronto takes the biggest hit in the hard time,” said Caputo. “Will there be a flood of homes probably in the fall? Yes. Will that slow down the market because there’s a lot of inventory? Most likely. But by next year, we’re going to end up going back to very low inventory again, and we’ll back to increases in average prices.”

Maureen Bruce from Fleming Realty said that in March sellers were hoping to come into the market with high prices and quick sales, but are now having to wait until the market stabilizes. 

“By the beginning of April, with the ‘stay home and stay safe’ rule, a lot of sellers terminated their listings, resulting in low inventory. Buyers who had to buy had less to choose from,” Bruce said.

Wait, had to buy?

“Yes, there are always buyers who have to buy for many reasons, just as there are sellers who have to sell,” said Bruce. “However, having a low inventory has resulted in sellers getting close to their asking price rather than having to accept a drastically discounted offer as many would believe.”

But Bruce sees Caledon coming out strong when the pandemic cools off. With the endless opportunities available from schools, to indoor and outdoor recreation, and family friendly atmosphere across the community, homes will continue to sell. 

“When I have an open house, I ask the people where they currently live and what interests them about Caledon. I would say the direct result of ‘stay home and stay safe’ will be buyers realizing they are needing a different home. Gone are the days when their wish list was a dining room and hardwood floors,” Bruce remarked. “Now, townhome and semi-detached owners will want more space in the backyard for the children or outdoor living; owners of smaller detached homes will decide they need more space for an office or two to work from home and a finished basement for more family living.” 

She added, “It is family friendly, with sports and recreation and arts for the children, plenty of public, separate and private schools to choose from, and an easy commute to shopping malls and highways. The neighbourhoods are clean, and homeowners have pride of ownership. Caledon loves to support the small shops and restaurants. People want to live here.”



         

Facebooktwittermail


Readers Comments (0)


Sorry, comments are closed on this post.

Page Reader Press Enter to Read Page Content Out Loud Press Enter to Pause or Restart Reading Page Content Out Loud Press Enter to Stop Reading Page Content Out Loud Screen Reader Support
Page Reader Press Enter to Read Page Content Out Loud Press Enter to Pause or Restart Reading Page Content Out Loud Press Enter to Stop Reading Page Content Out Loud Screen Reader Support