Before the Covid-19 global pandemic, the real estate market in the GTA and Halton was on the rebound after a tumultuous 2018 and a mixed 2019. Despite the lower inventory at the start of 2020, prices were rising along with increasing consumer confidence. Then the virus hit in mid-March, April and May saw industry and businesses shut down, and nervous clients had to tiptoe carefully into the unknown waters of buying and selling homes during a pandemic.
Thankfully, the activity did not come to a grinding halt. However, buyers do seem to be re-evaluating their lives and lifestyles. “Buyers are thinking about their living arrangements and what that’s going to look like if they continue to work from home,” says Rina DiRisio of Royal LePage Real Estate Services Ltd. “They are reassessing their lives and taking the time for some self-reflection.”
During the quarantine, house showings were still allowed, but open houses were not. Realtors have been able to spend more time with serious buyers and sellers, which has translated into an increase in the ratio of showings to offers. The supply is still low, which has kept market prices stable, and many homes are selling over asking. A couple of factors have contributed to low inventory, including the halt in development as builders were required to put projects on hold. Sellers have also been wary of listing their homes at this time, having strangers in their homes, and having to disinfect after every viewing. Fortunately, the number of calls from sellers forced to sell due to financial concerns or job loss has been negligible.
While realtors may have found a dip in overall sales volumes for the latter half of March and April, the interest began to pick up again in May, specifically with resale homes. “We have seen an increase in Toronto buyers looking to move further out of the city,” says Michael O’Sullivan of Royal LePage Burloak Real Estate Services. “Some individuals need space for an office and prefer a bigger yard if they’re going to be spending more time at home.”
The online presence for realtors has increased enormously, and that may not go away even as Covid-19 fades into the background. Buyers can do more research themselves and are often better prepared by the time they call a realtor. “Having an excellent online media program has become critical, and I see that continuing,” says Michael. “Good photographs of the home are important to eliminate unnecessary showings, and buyers are not booking appointments unless they are serious.”
Perhaps the hardest adjustment for realtors, who are keen to meet clients and form a relationship, is the lack of face-to-face meetings. Long gone are the first meetings over a cup of coffee, and whether that resumes in the future remains to be seen. But, overall, clients have adapted very well to the new procedures. “There’s more work preparing for a showing,” says Michael. “But we’re dealing with serious buyers who are very co-operative with the new rules and completing the required health forms and liability waivers,” says Michael.
For many realtors, the number of units sold year-to-date has not changed much. New building permits were put on hold for the first four to six weeks of the pandemic, but construction has since resumed in most areas. “The volume was down initially,” says Rina. “But now there are multiple offers on properties, particularly those under $1.5M. Prices have not dropped, and sellers are doing very well in this market.”
As the year progresses and rates of infection decline, we can expect pandemic fears to subside, and the industry should slowly return to normal.
Written By Julie Achtermeier
