The Impact of COVID-19 on Real Estate Sales

27 May 2020
Remax-Condos-Plus

There’s no doubt that COVID-19 has had a big impact on our real estate market. Particularly, on how we as agents go about our business.

Now, there’s virtually everything: virtual showings, virtual open houses and even virtual offers. And, everything that we touch both ourselves and our client’s needs to be disinfected. But long term COVID-19 will have an even bigger impact on the Toronto market.

Our market has been driven by demand and supply for a number of years. The demand side has been fueled by an influx of people to the GTA. We’re averaging about 100,000 a year. Developers have capitalized on this with increased construction, particularly of condos and owners have enjoyed rising prices because we haven’t been able to build enough to satisfy these 100,000 new people coming to market.

But with the after effects of COVID-19, mainly reduced migration caused by more expensive air travel and closed borders not only between provinces but between countries as well, this supply of buyers will be greatly reduced. Markets then will start to favour buyers and believe it or not, we’re expecting lower prices by 2021.

In terms of sales for 2020, we have forecast back in January over 90,000 sales in January and the economics we’re tracking for that until COVID-19. Today, we’re revising our forecast to 70,000 in annual sales. This would be the lowest annual number since 2001. That’s my take on how we’re gonna see the balance of the year pan out for sales. Look for my next video on the rental market in COVID-19. I’m Jamie Johnston.


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