Worried about the housing market after COVID-19? You are not alone. Buyers and sellers alike are trying to gauge what the outbreak will do to home values once life gets back to normal. In this post, I share the questions people are asking and where to find a careful analysis.
This post was first published on April 4, 2020, in the early weeks of the pandemic.
The questions everyone is asking
Everyone is trying to gauge the impact of COVID-19 on housing once life returns to normal. The questions are many, and they are all fair. Nobody has every answer yet, but it helps to see them laid out in one place. Here are the most common ones that buyers and sellers raise:
- How many people will be jobless?
- What will happen to mortgages?
- Will house prices take a dip?
- If so, how long will it take to rebound?
- Is it a good time to buy or sell?
And so on. Each question ties into the others. For example, jobs affect mortgages, and mortgages affect prices. Prices, in turn, shape whether people decide to buy or sell. That is why the housing market after COVID-19 is so hard to predict with confidence.
Why the housing market after COVID feels so uncertain
A home is the largest purchase most families ever make. So, when the future feels unclear, people naturally hold back. Buyers wonder if they should wait for lower prices. Sellers wonder if they should wait for more buyers. Meanwhile, both sides keep watching the news for a signal.
However, waiting is also a decision, and it has its own costs. Life events do not stop for the market. Families still grow, jobs still move, and leases still end. The key is to make choices based on your own situation, not only on headlines. It also helps to remember that markets move in cycles. Busy periods and slow periods both come to an end, even if nobody can say exactly when. So, a long-term plan usually matters more than the news of any single week.
Expert analysis on the housing market after COVID-19
Here is a detailed analysis that appeared in The Toronto Star today: Toronto Star analysis of COVID-19 and housing.
For more details about my analysis, you can refer to the RBC Economics report “A tough but temporary blow to Canada’s housing market” (spring 2020, no longer online). Its title summed up the mood among many economists at the time.
You may also like my post on which direction Toronto prices might go post-pandemic. Together, these pieces give a balanced view of the housing market after COVID-19 as it looked that spring.
Where to find reliable updates
For official housing research, the Canada Mortgage and Housing Corporation is a good source. If you need help with your mortgage, read my post on mortgage payment deferrals from the big banks. Also, check your own lender’s website for its latest options. Be careful with rumours on social media, since they spread fast and are often wrong. Instead, rely on official sources and on people who know your situation.
Practical steps for buyers and sellers
First, review your budget and your job security. Next, speak with your lender about your mortgage and any payment concerns. Then, think about your timeline. A family that must move soon has different needs from one that can wait a year. Write down what must happen, what you would like to happen, and what can wait. That simple list often makes the next step clear.
If you are a buyer, keep your pre-approval current and your savings safe. If you are a seller, think about timing, safety and how you would show your home. Above all, plan for the housing market after COVID-19 with care rather than fear.
Take care of yourselves and follow the safety precautions set by healthcare professionals. #BeSafeAndHelpOthersBeSafe
Talk to a Mississauga real estate agent
Do you have questions about the market, buying or selling in Mississauga? I am happy to help, so please reach out through my contact page or call 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
