With coronavirus and throughout the years, we at Team Weir have kept our clients abreast of what is going in the real estate market. For example, we have let you know if the market is going up or down and what is happening with mortgage rates etc etc.

In this market however, there are a lot of moving parts and of course there is a lot of angst – as I am sure everyone can imagine given the health scares etc. With this in mind, I would like to highlight some of the potential negatives and positives going forward.

First the potential negatives.

Buyers from the GTA may decide to delay listing their homes which has the potential to reduce the number of GTA buyers in Quinte. Since 2017 our market has been buoyed by these buyers who often make cash offers and are used to competing offer situations. The more buyers of course – the more money a seller would get for their home and the quicker it typically sells. It follows that these same GTA buyers may also decide not to buy here based on the fear of job loss, the drop in the stock market which is negatively impacting their net worth, and of course some folks just withdraw from making life changing decisions when there is any uncertainty in their lives.

Some of the service providers and government agencies have gone into a “minimum manning” situation or have closed altogether. For example, the number of building inspections in Belleville may be reduced, slowing the process of being able to build a new home, or renovating an existing home that is being prepared for sale. Registry Offices, where deeds are registered when a home changes hands, are still operating normally but if they close or reduce hours there will obviously be a negative impact in home sale transactions.

There may be possible reductions in visits to homes currently offered for sale. Whilst there is not any empirical data for this potential negative – I can say that Realtors, for the most part, are no longer doing “Open Houses”. This is due to the health concerns and the “social distancing” that is being strongly “encouraged” . Please note showing of homes are still happening. We are also investigating the option of “guided tours” via video to promote our listings.

Finally, on the negative side of the equation, there is a slight delay in military house hunting trips (HHTs). Again this is due to the potential health issues brought on by the virus. It is estimated that the HHT season will be delayed three weeks. Having said that, we have already had two HHTs and have more inbound soon.

On the plus side of the equation, the biggest positive is the amazing mortgage interest rates being offered by Canada’s banks. Rates are amazing and with next month’s tweaking of the mortgage stress test – we should see even more upside to buying a home from a mortgage “qualification” perspective.

Canada’s big five banks have indicated that they are willing to defer mortgage payments for up to 6 months to assist those who are having financial difficulty in these turbulent times. See the graphic at the end of this post if you, or someone you know, is in need of more information.

The federal government have stepped up today to assist those in need of financial assistance as well as delaying the date for submitting income tax statements to CRA.  More details on these programs can be found here.

While there is obvious concern in the real estate market, and rightfully so, it would appear that this will be a relatively short period of pain.

If I was to be anywhere during this short term upheaval – I can’t think of a better place to be than Canada. As demonstrated over and over again this past few weeks – we know we are stronger together and we look after each other – especially here in the Quinte Region. The coronavirus pandemic is not going away, so we need to adapt and learn to live with it. 

Weir looking out for you.

Per Ardua Ad Astra.

David Weir