Firstly, I hope this news letter reaches you well and healthy.
Many homeowners and investors are looking for predictions in the real estate market on Vancouver Island. As no one would ever predict that COVID-19 pandemic were to transform the world health and economy, 6 months prior, a prediction in real estate would not be prudent. However there are historical comparisons and indicators of where the market may go, please keep in mind that the Real Estate industry’s direction is a moving target.
What the facts are ( It's not all good news) :
“The S&P/TSX Composite Index capped off the first quarter down 21.59 per cent”
Energy ( Stocks) : -38.2 per cent"- BNN Bloomberg April 1 2020
"OTTAWA — Canada lost a record-breaking 1 million jobs in March while the unemployment rate soared to 7.8 per cent, official data showed on Thursday” Financial Post April 9 2020
"Evidence suggests housing activity will continue to improve into 2020, with prices either continuing to rise or accelerating in many parts of Canada. Indeed, many housing market indicators continue to support this outlook. " CREA Dec 2019 forecast
"Mortgage interest rates have declined, including the Bank of Canada’s benchmark five-year rate used by Canada’s largest banks to qualify applicants under the B-20 mortgage stress-test. Though the decline in the benchmark rate has been modest, it is helping to improve homebuyer access to home purchase financing.”CREA Dec 2019 forcast.
The Positive News for Real Estate in B.C.:
Currently, homes are holding their value. The real estate markets did not see the plummet in prices that stock markets saw in March.
People will need to move. There is a need for homes and supply of Real Estate.
2020 started with low inventory. Prior to COVID reality there was upward pressure of the need for housing inventory. Buyers are waiting in the wings. There is a good likelihood that Vancouver Island will see another wave of buyers from Alberta seeking retirement or a change in life-style homes.
Forecasts suggest upward pricing within the year and maybe as early as summer months.
Mortgage rates are apppealing, making home ownership possible for new home buyers.
In summary, it is a good time to talk to me about selling your home. Based on low inventory and low activity levels, I believe there will be a surge in the Real Estate market activity when health and social-distancing restrictions are lifted. Both for investors who have pulled out of stock markets and people downsizing or a need to liquidate their Real Estate assets will need to move to a more affordable home.
Real Estate services are essential services in BC. I offer all the required COVID safeguards to keep you and your home safe. The Real Estate Trade is running, albeit adapted, almost the same as before.
We are fortunate to live in such a beautiful community full of natural beauty with a variety of homes. Someone will want to purchase your home.
Be ready for the market to gain momentum soon, when social distiancing rules are modified. If you are considering selling or buying now is a good time to talk give me a call. As always, confidental.
Call or Text. 778-966-9177 Vida Glaser email@example.com
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