Diego J. Cardenas

Diego J. Cardenas

Real Estate Sales Representative

RE/MAX PREMIER INC. Brokerage*

Mobile:
647-207-4190
Office:
416-987-8000
Email Me
Diego J. Cardenas

Diego J. Cardenas

Real Estate Sales Representative

RE/MAX PREMIER INC. Brokerage*

Mobile:
647-207-4190
Office:
416-987-8000
Email Me

Housing Market Pullback because of the COVID-19

April 1, 2020

TORONTO -- Canada's housing market could see a significant pullback this year because of the COVID-19 pandemic, but could rebound next year, a report by RBC says.

This year's home resales could dive by 30 per cent to a 20-year low as physical distancing limits sales while the economic fallout erodes confidence and leaves speculators sitting on the sidelines, said bank analyst Robert Hogue.

"Canada's housing market will slow to a crawl this spring as Canadians follow social distancing orders in order to combat the spread of COVID-19."

Market activity in the Greater Toronto Area is already showing a sharp drop-off.

John Pasalis of Realosophy Realty said in a report that while sales were up 50 per cent in the first two weeks of March compared with a year earlier, by last week sales were down 37 per cent compared with a year earlier, while new listings were down 33 per cent.

Pasalis said average prices are still up over last year, but that prices have trended lower over the month.

Hogue said home prices could stay stable in the near-term as both buyers and new listings pull back, but expects the composite benchmark price to fall 2.9 per cent in the second half of this year compared with last year.

"In a matter of weeks or months, surging unemployment and the market's illiquidity will compel a growing number of tight-squeezed sellers to make price concessions."

The trends, however, could reverse next year as low interest rates, a strengthening job market and a bounce-back in immigration help sales to surge more than 40 per cent in 2021 and price dynamics also return to favouring sellers, Hogue said.

The report said Prairie economies that rely on oil will feel the housing pullback more acutely, with price declines "bound to re-accelerate significantly" and little prospect of prices rebounding any time soon.

The report also notes that the bank's affordability measure, defined as the share of median income needed to cover home ownership, was steady at 50 per cent in Canada in the fourth quarter of 2019. Vancouver was highest at 80.4 per cent, Toronto at 68.2 per cent, while Edmonton was 31.6 per cent.

Articule by: The Canadian Press​

https://www.bnnbloomberg.ca/canada-s-housing-markets-to-slow-to-a-crawl-amid-covid-19-rbc-1.1415261

Have Questions?

By submitting this form, you are providing express consent to receive commercial electronic messages from www.homesandcasas.ca. You may unsubscribe at any time.

647-207-4190

  

416-987-8000

  

About Me

 I would like to take this opportunity to tell you a little bit about my life as a REALTOR and the ambition l have to help families to reach their goals in the community. l have prided myself in my passionate, energetic and heartfelt drive to serve my clients’ best interests. Dedicated to listening attentively and matching individuals and families with the properties that best suit their needs. Specialized in home buying and selling, investment properties, luxury homes, and multi-residential properties. Now as part of the Big RE/MAX Community, we have built a reputation for our refreshingly friendly customer care and proven ability to guide buyers to obtain the best value for their home and to assist sellers to a smooth, stress-free sale of their properties. Our business today is built on: Dedication, Communication, Determination, & Trust while embodying the ability to cater and adapt to all of our client’s Real Estate needs. Our strong background in digital marketing and Graphic Design brings a strategic yet personable approach to the home buying and home selling process. With many years involved in Real Estate, we fully understand of the diverse needs of families and what it is like to stand in our clients’ shoes. Relocating several times – buying and selling houses of our own – has provided us a sensitivity towards our clients’ and families in the community. Rest assured that we will continue to be dedicated, knowledgeable, and committed to finding the perfect fit, whether apartment or home, for our clientele and for you. We will regularly seek to stay ahead of the game when it comes to market education and trends to be able to provide you the best solution available.



Languages Spoken: English, Spanish