According to the latest CREA (Canadian Real Estate Association) report in April 2020, Canadian real estate markets suffered a decrease in sales compared to March.
Real estate sales decreased
In the months mentioned above, real estate in Canada decreased 56.8% due to the measures implemented by the pandemic that we are currently experiencing.
The real estate market was preparing to adapt new technologies, but the pandemic crisis caused many buyers and sellers to suspend their move plans.
Due to the events that have affected us as a society worldwide, many people wonder how the real estate market affected in the days of COVID-19. The world has changed a lot in these last months, and although humanity has survived other crises such as natural disasters, the crash of the stock market, and the wars between other pandemics have never been as strong as this one.
Many people want to buy a property but are wondering if this is a good time to do so, since the interests of the mortgage loans decreased.
Banks became much more strict when it came to approving a loan as interest rates drop.
Due to this insecurity, the banks do not know if the buyer will be able to continue paying the mortgage or remove him from his job.
Many people think that buying a home is an extremely important and personal decision.
Is it a good time to buy a house?
You must analyze your job and financial stability before making the decision. If we talk about interest for some, it may be convenient since you can have a lower payment while you pay your loan, and you can save.
But if we look at the other side, it is unknown how long this crisis will last and the future consequences on their income.
This time, uncertainty is part of this process. Many people have lost their jobs, others have received unpaid leave, while those who still work live day by day, even wondering if they will ever be affected and in what way.
All home real estate that is sold monthly fell in the Canadian property markets; this includes important sectors such as Montreal with -65.4%, Edmonton with -47.6%, Vancouver with -58.9%, and the Greater Toronto Area with -67.2%.
The Use of technology
This not to mention the losses compared to last year, exactly comparing the current figures with those of April 2019, the transactions decreased by 58.6%, being the lowest total sales since 1984.
There has been an excessive increase when using technology to reach agreements online in the last days because people needed to continue buying or selling.
In April, national sales of homes and new listings decreased by 63.4% compared to its previous two months. Although a small decrease has been seen, this measure of market equilibrium changed remarkably as the current economic conditions affect sellers and buyers.
This pandemic affected the property prices in the same way; year after year, it has decreased by 1.4%, reaching $ 489,000.
It is important to mention that this number belongs to Vancouver and Toronto; these are the most recurring and most valuable markets in Canada.