COVID-19 Questions & Answers
Tags: COVID-19, Q & A, SELLERS, BUYERS, HOUSING MARKET, EFFECTS
As Spring Break fell on the third week of March this year, opposed to falling on the second week as it did last year, this could have had some impact on slower sales and less showings. However, prices continue to soar and Toronto’s real estate market is showing very little signs of slowing down. In fact, it is up 14.5% year over year in this month alone. With fewer homes on the market the demand for buyers has increased, and within only a few months, the average selling price has gone up 12.3%.
Although there has been a recent drop in sales, the sale prices remain high and the market has not gone as down as most people think.
What Precautions Can Sellers Install to Ensure Their Deal Will Close?
Understandably, Sellers may be anxious and nervous about having the sale of their home close on time and in an orderly manner. Having all documents, including accepted agreements, amendments, deposit checks and etc. to be delivered electronically. Not only will this speed up the process, it will avoid more contact with other party members. Closer to the time of closing, Sellers may also choose to have the lockbox remaining on the property so the keys are easily accessible for the agent to pick up and transfer to the lawyer's office.
How Does the Market Compare Now as To Last Year?
There is a definite increase in sale prices within the past 2 months, compared to the same time last year. Sellers are still eager to sell and Buyers are just as excited to jump into the real estate market. Here are some statistics comparing this time of year in 2019 and most recently;
Comparable Sales Statistics
Milton
2 Story Average Sale Price
January 2019 February 2019
$804,000 $781,000
January 2020 February 2020
$828,000 $872,000
Condominium Average Sale Price
January 2019 February 2019
$467,000 $431,000
January 2020 February 2020
$500,000 $532,000
Mississauga
2 Story Average Sale Price
January 2019 February 2019
$681,000 $685,000
January 2020 February 2020
$787,000 $869,000
Condominium Average Sale Price
January 2019 February 2019
$453,000 $441,000
January 2020 February 2020
$534,000 $560,000
Number of Homes Sold in Milton
January 2019 February 2019
112 143
January 2020 February 2020
107 196
Number of Homes Sold in Mississauga
January 2019 February 2019
388 541
January 2020 February 2020
468 697
2 Story Average Sale Price
January 2019 February 2019
$804,000 $781,000
January 2020 February 2020
$828,000 $872,000
Condominium Average Sale Price
January 2019 February 2019
$467,000 $431,000
January 2020 February 2020
$500,000 $532,000
Mississauga
2 Story Average Sale Price
January 2019 February 2019
$681,000 $685,000
January 2020 February 2020
$787,000 $869,000
Condominium Average Sale Price
January 2019 February 2019
$453,000 $441,000
January 2020 February 2020
$534,000 $560,000
Number of Homes Sold in Milton
January 2019 February 2019
112 143
January 2020 February 2020
107 196
Number of Homes Sold in Mississauga
January 2019 February 2019
388 541
January 2020 February 2020
468 697
There is a definite increase in sale prices within the past 2 months, compared to the same time last year. Sellers are still eager to sell and Buyers are just as excited to jump into the real estate market. 2020 may prove to turn out to be the most challenging year for buyers, not because of what they can afford, but rather what they can find. On the other hand, interest rates have come down. The housing market has improved and was picking up before COVID19, and has maintained to gain momentum since then. Prices have continued to rise.
How Will COVID-19 Affect Buyers?
Buyers need not to worry about finding their perfect dream home, given the current pandemic, there are still a substantial number of homes for sale. The number of in-person showings available may be much lower than in a normal spring market with respect to safety, however many other tools and resources are available to ensure that all and any buyers get the opportunity to view their properties of interest. It is always encouraged that everyone take part in social distancing to slow the spread of COVID-19. If it is not essential that you view a property immediately, Buyers may want to wait until the Seller is willing to accommodate showings. If you feel the need to view a property that is currently for sale and the Seller won't permit an in-person viewing, you can want to speak to your Agent about alternate solutions, such as video tours, photos, or another possibilities.
If there ends up being an increased supply and less demand, prices will quickly decline and the competitiveness of today’s market will take a slight pause, making it easier for buyers to get into their dream home.
How to Protect Your Home & How Buyers Can Protect Themselves During In-Person Showings and Open Houses?
Many are worried about the spread of COVID-19 and keeping themselves safe. All homes for sale should have hand sanitizer present and available to anyone who is entering the home. If you or the visitor cannot provide protective gloves, tissues are a very useful tool for protecting germs spreading to surfaces and other areas such as light switches, doorknobs, closet doors and etc. You may also advise or be advised on what areas that are not to be touched in the home. If an Open House is permitted, Agents are requested to limit the number of visitors allowed in the home at once and initiate that they practice the safety protocols by the Seller and utilize the tools provided for safety purposes.
