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Victoria the most beautiful city on the Canadian coast

One of the most beautiful cities in Canada is Victoria globally known as “The Garden City,” it is located at the furthest end of Vancouver Island. Most of the Victoria residents are retired people who come to this beautiful town to enjoy their old age in peace and tranquillity.

It has spectacular beaches and coasts; it is more than normal to see the influx of tourists throughout the holiday season and potential buyers. But this beautiful town does not escape the current Pandemic that the world is experiencing, that is why the real estate market is affected.

This year, it was estimated that the property sales in Victoria’s city were in a balanced way during the year. The houses were intended to spend a couple of days on the market before being purchased by a buyer.

Buyers in 2019 were affected by the lack of homes that Victoria suffered; this greatly limited the market and led to new condominiums. The most requested neighborhoods were Saanich, Langford, Oak Bay, and Sydney.

Baby Boomers Will Enter The Market This Year

Baby boomers are the ones who add material to the housing market within Victoria in the coming years. These are the people, who have the necessary savings to enter the market, but this does not mean that young people who also want to buy should be ruled out, but they cause greater market demand.

Real Estate Market And COVID-19

It is not a secret that the COVID-19 Pandemic affected the global economy; real estate is no exception to this. The largest sales this year occurred within February and March, just as the Pandemic began to spread.

In Victoria, a state of emergency was decreed on March 18, leading to the closure of most stores in the city, only the important sectors remained working. After this date, they began to show a drop in the real estate market of up to 6.8% to 15%, which leads to concern.

The number of transactions within real estate saw a 33% decrease compared to those of 2019. The percentage of buyers, who decide to wait for the Pandemic to end, is very low; perhaps it is positive news, for sellers of the estate.

Real estate buyers and brokers’ new adaptation

The City of Victoria Real Estate Board tells us that it is difficult to predict how the real estate market will behave during this Pandemic. The traditional life of humanity, changed with this Pandemic, therefore predicting the behavior of something if it makes it very difficult.

In Victoria, real estate agents learn to conduct business virtually through web platforms that facilitate contact with the buyer. In addition to including within a visit, request the necessary hygiene measures for virus protection.

Measures During The Pandemic

The support measures implied worldwide by the different governments are what have helped to replace during this Pandemic. Normally as the bank has a rise in mortgages, the payment terms that exist at the time stop.

The British Columbia government has suspended the evictions and is also not issuing actions leading to this, since it knows that most people are financially affected.

Do You Want To Buy O Sell A House?

In Victoria, prices have increased lately, so sellers are happy, but this doesn’t feel very good for buyers. Home prices may fall due to the Pandemic as demand may perhaps decline over time.

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Why Is Ontario Home Prices Changing?

One of the markets with the highest search in Ontario this year is the real estate. Ontario is one of the provinces with the largest population in Canada. Therefore the demand for new homes grows each year exponentially.

Something that may harm the real estate market a bit is the current global pandemic due to COVID 19. This represents a challenge for future buyers who have in mind to buy houses currently in this province, since the restrictions are increasing by the massive contagion.

When deciding to buy a home in Ontario, the price variation that exists according to the province must be taken into account, in addition to some external factors that lead to their rise.

Here are some of the factors that set prices within the Ontario providence:

People Take Advantage Of The Low-Interest Rates

As in most countries, Canadian banks have applied to lower loan interest rates by 0.25%, from 1.25%. This encourages many people to want to purchase their homes today, but the market demand is not too high to satisfy the entire market.

The lower interest rate is usually a great help to future buyers if they want to qualify for a mortgage. Thus increasing the market demand much more, this is already a bit limited.

Ontario Real Estate Markets

Real estate markets outside the GTA are typically more stable and less changing. Most buyers start studying their future homes outside the city, where prices are generally lower.

In February, a significant price increase of up to two figures could be observed over the years for the type of single-family homes as well as condominiums. This is positive news for sellers and owners.

In contrast, not for worried buyers who prefer to move to the suburbs, even if their jobs are located in Toronto. In real estate, it is a law that the closer to the city, the more expensive it is.

Other regions near Ontario, such as Niagara, also experienced high growth between 2018 and 2019, with sales prices rising to 13%.

Big Problem For Real Estate Agents

Important and central cities such as Toronto and Vancouver are often difficult markets for acquiring homes due to high demands and low supply. In Toronto, due to the large influx of immigrants, and the low presence of land, the lack of new homes abounds, making this a big problem for real estate agents.

As the most central city in Canada, Toronto has an important growth almost than daily. Since it is where the best jobs are offered, and this draws much attention from future buyers.

The Ontario Ministry of Finance, in its annual report, expects the population of the province to have a 38% increase by 2046. This represents an estimate of 14.3 million currently in 2018 to almost 19.8 million.

All About Real Estate

Weather stations in Ontario can present an obstacle to the real estate market. In the winter season, buyers stop their searches, to take refuge from very strong climatic conditions, present at the time.

 Sellers who choose to sell this season are forced to lower house prices since the winter season is the harshest for the real estate company.

For its part, spring and summer are when warm climates are present, and Canadians decide to go out and find new homes. That is why the sellers present increases in their sales in this season.

The fall season brings a low inventory in the market because the spring and summer had the majority of sales for the year.

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Toronto Real Estate Market Problems

Due to the COVID-19 pandemic and the social distancing measures implemented in Canada, everything we knew has changed. In Toronto, all activities have stopped, and among them is the real estate market.

Many experts have commented on the impact that this public health crisis can have on this market. No one knows what the result of this pandemic will be in the real estate market, but many experts are very optimistic.

Next, we will analyze the real estate market before the new coronavirus pandemic and current conditions in Toronto.

A Strong Start In 2020

In the first months of 2020, the city of Toronto is preparing for a market with high real estate rates. Demand managed to exceed supply in what is the metropolitan area of ​​the city. Total property prices were $ 866,210, which means an increase of 7%.

Accelerated prices could be highlighted in the condominium submarket; in this case, prices had an increase of 8.8%.

Toronto Real Estate Market Reaction To COVID-19

With social distancing measures due to the pandemic, Toronto real estate agents have had to adapt to this new normal. Although the real estate market is an essential service and the Ontario government allowed them to continue operating, the activities were not going well.

As a result of this situation, real estate agents have had to be creative and have changed their strategies. They use videos with 360-degree tours or live videos to show the houses. At the time of the visits in person, all the agents are careful and take the necessary measures for the safety of all.

The agreements between buyers and real estate agents are no longer closed by shaking hands.

According to studies by the Toronto Regional Real Estate Board (TRREB) in March, Toronto’s real estate industry is booming. Sales had increased by 49% in GTA compared to 2019.

Things changed for the second period of March, and property sales decreased by almost 15.9% compared to 2019. House prices have maintained their prices and remain at $ 902,680, which means a 14.5% increase since March 2019.

For many brokers and real estate agents, house prices have been able to remain stable.

Balance Of The Stable Real Estate Market

According to a senior analyst at the Toronto Regional Real Estate Board (TRREB), the seller-buyer relationship has remained stable despite the outbreak. So he says the Toronto market is not in trouble and continues to stay despite the global crisis.

Although sales have dropped, the charts have also declined; for the expert, this situation will continue in the short term until the pandemic passes a little.

Toronto City Owners Less Optimistic

For Toronto homeowners, the COVID-19 has been a heavy blow, especially to people who work with short-term rental housing. They are the ones who have suffered the most from the current crisis in the city.

In this case, many owners were doing business of great benefit with the rentals on Airbnb. But with the closing of the borders, their income has been paralyzed, and short-term rents have decreased. What experts recommend is waiting for everything to get better and staying safe for your health and that of your loved ones.

This will happen, and everything will return to normal to continue working in the real estate market!