Friday, April 3, 2020 / by Brian Khatambakhsh
We are living in very uncertain times, pandemic, lock down, social distancing and etc.
What would happen to us, to the world?
I am Brian Khatambakhsh team lead at Khatambakhsh real estate team.
These are some of the questions that make us all worried.
I have been asked a lot lately that What will happen to the real estate market specifically?
While No one has crystal ball to predict the future, there are some factors that must be considered moving forward
- Lower interest rate is one of them. Bank of Canada has reduced the interest rate by 1.5% in the past 2 weeks.
This will definitely help the market with interest rate near historic low, it's never been easier to own a home, or running an investment property.
Also, if you think of investing in real estate, the very low interest rates will result a positive cash flow from your investment, so you can pocket money from your investment. Isn't that why you wanted to invest from the first place?
- Real estate is the engine of the Canadian economy, my friend.
For the economy to grow, the real estate market must do well and the Government knows that very well.
To recover from this slow down, the Real estate must pick up, no doubt!!
- There are some discussion about the elimination of the mortgage stress test as well.
- Housing is the basic necessity of life, everyone needs a shelter, roof over their head.
If they can not afford to own it, they must rent. There is no other alternatives. You can not live on the street!!
- The vacancy rate is at an all time low. Condos for rent are getting multiple offers and often rent at a higher than listed price
These are some of the facts that come to mind, but there are definitely more reasons one can think of.
Real estate is not the stock market so that one can go completely belly up. It is deemed to be one of the safest investments, whether as your primary residence or an investment.
- prior to the coronavirus outbreak, we had a healthy market which was almost tipping over to the seller's market.
After the spread of coronavirus accelerated and social distancing intensified, the real estate market slowed down like other businesses.
However, the number of buyers and sellers are equally reduced, so you may say that the real estate Market PAUSED.
BUT it does not mean lower prices!!! as one may expect, because the total number of for sale homes are also reduced.
Everyday, we monitor the total number of for sale homes and condos in the market. That is an indication of the future market direction. It has been very steady with minimum fluctuations in the past 3 weeks.
Homes are still selling and motivated buyers are buying.
- Last week, Real estate was declared as essential service by the government of Ontario.
It means that we are open for business. You can buy and sell real estate.
However, it does not mean that it is business as usual, with the pandemic and how contingent this virus is,
we all must be very very careful.
We follow the ministry of health guidelines to reduce the spread of the virus.
Also, We are doing the followings to minimize the risk for buyers and sellers during the process
- We utilize the latest technology to create virtual walk through, virtual tour, Drone shots and others to give the buyers a real perception of the house for sale without visiting the house.
- Using virtual Open Houses, we will have the house well advertised ahead of time and showing it to the crowd on Facebook live, or other social platform of choice, then post the video on youtube
to reach as many buyers as possible.
- Minimize the showing time and limit it to a short window daily. It will be easier to manage clean up and sanitization of the place for the sellers
- We limit the number of buyer visitors and ask screening question before entering the home to reduce the risk.
- Using video conferencing, we can show you the benefits of our home buying and selling systems without risk.
- Implementing digital signing eliminates the face to face meeting for paperwork processing and keep the social distancing.
All and all, the world has not come to an end, we will pass through this time.
We as a team are working hard everyday to find new ways to serve your needs in any circumstances.
If you like to purchase a home and would like to see how we can give you access to more unadvertised home that anyone else, call or text us at 647-848-2652
If you like to have a Free Video conference to discuss the sale of your home,and find out how we can get you the most money, in the shortest time, and make it as smooth as possible, Call or text us at 647-848-2652.
Call or text 647-848-2652 and start packing.