Mar 30, 2020
I hope and pray that you are safe and enjoying with your families.
I’m sure an obvious question lurking in your minds these days, like many others, would be what is the Real Estate outlook after we get over the Coronavirus?
In uncertain times no one can predict the future; having said that here are my thoughts and analysis of the outlook of the Real Estate market considering the current situation would be brought under control soon and not prolong to the end of the year or beyond.
I have heard various opinions but what I envision is reflected in the recent RBC’s report on post Coronavirus outlook of the Real Estate market.
I believe the Real Estate market in general but specifically in the Golden Horseshoe area would have a short term slight adjustment in both the number of house sales and also the house pricing.
This is primarily because the Canadian federal government has provided generous support for small businesses, such as giving 75% of employee salary support, up to $40,000 interest-free loan to small businesses, out of which $10,000 will be forgivable, for individuals EI payments would not have the mandatory weeks of wait time before EI can kick-in, up to $2,000 for individuals whose job have been affected by COVID-19 and for those who have been taking care of some family member, and the most important one being to not worry about mortgage payments, for most households it is the biggest expense, for 6 months. Besides, many cities have allowed postponing payments of property taxes for 3 months, and other incentives by the Ontario province.
If we calculate all these individuals would carry on their normal lives after the pandemic is over with fewer worries and financial burden due to generous support from all levels of government, especially from the federal government.
God forbid, if the situation prolongs, I am still optimistic that the government would not leave us alone and work out to minimize the financial impact on businesses and individuals.
Keep in mind, the Canadian economy, coupled with stronger financial controls, historically has shown it’s sturdiness to deal with the stormy conditions, an example of which we have seen during the near-collapse of the US Real Estate market in 2008 (https://rem.ax/3bvcwAO).
As said before, no one can predict the future but I say that the future is what is in your mind, think positively and achieve your dreams.
I pray that you all be safe and we see the end of this pandemic soon and get back on our normal lives.
Take care of yourselves and follow the safety precautions defined by healthcare professionals.
#BeSafeAndHelpOthersBeSafe
If you are looking to buy/sell your home or commercial/farm property I will be glad to meet and discuss.
You can reach me at https://rem.ax/2wF7UJK
A. Q. Mufti
Please on the link to read full RBC report; https://rem.ax/2Jol9AX
