How will COVID-19 affect the housing market?
Economists and elected leaders agree that the COVID-19 pandemic will cause economic activity to slow, which will likely impact the housing market.
With that in mind, the Bank of Canada recently lowered the overnight rate as a proactive measure to ease the negative impact of COVID-19 on the Canadian economy.
Demand for homes last month saw significant year-over-year increases, and preliminary reports from this month show a similar trend.
In the US, however, about 16 per cent of Realtors nationwide reported reduced buyer interest since the onset of COVID-19.
Right now, sales seem to be relatively unaffected by the virus, but things are moving quite quickly and this trend might not continue.
Home sales and prices: What to expect?
Home sales and prices will likely face declines in the spring and early summer, with a recovery along with the economy in the second half of the year, according to the latest projection from BC Real Estate Association (BCREA) Chief Economist Brendon Ogmundson.
“Unsurprisingly, the results of our simulations show a steep decline in home sales in the second quarter of this year as economic activity becomes eerily quiet,” said Ogmundson in the latest BCREA Market Intelligence Report.