Covid-19 & the Real Estate Market
Coronavirus (Covid-19) is the first pandemic in many years that has had such a dramatic impact on the world. In Canada, the federal, provincial and municipal governments have taken extreme measures to try to reduce the risk of spreading the virus to those who are most vulnerable. This includes closures of most non-essential amenities (restaurants, gyms, museums, stadiums, events, etc.). It has been a huge adjustment for everyone as everyday life has in many ways, been altered. As everyone is adjusting to these changes, there are further questions that are lingering regarding the ramifications to the economy and specifically the real estate industry.
Since Real Estate showings are low contact, it is unlikely that selling Real Estate will be halted, though it may slow down with buyers who are hesitant to go out in public or be around others. Since the Bank of Canada has slashed its rate to 2.95% (for the first time since August 2017 which was 3.45%), this is going to help many buyers secure a better rate for their mortgages. Ensure you take precautions, avoid physical contact (no handshaking) and sanitize your hands before and after your meeting.
For Homeowners who may be struggling to make their existing mortgage payments, the Canada Mortgage and Housing Corporation have announced that they are deferring payments for up to six months. If this applies to you, please find click on the following link for more information: https://www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/the-resource/dealing-with-mortgage-payment-difficulties?utm_source=twitter&utm_medium=cmhc_ca_organic&utm_campaign=cor-org&utm_term=c7199569-65ad-4043-8cf0-fbc6761eff6c
The federal government is also taking precautionary measures to help those with non-mortgage loans. For more information, please read this article: https://www.bnnbloomberg.ca/bank-of-canada-feds-take-more-steps-to-ease-credit-market-strains-1.1406919
It is reassuring to know that preventative measures are being put in place to help with the potential implications this could have on the Real Estate market, and economy. The federal government is doing their part in securing our economy, the least you can do is wash your hands and be mindful of others.