What a difference a month makes! Covid-19 has basically shut down Canada and a good part of the world. The real estate market was going strong until mid March when social isolation started to put a stop to open houses and other real estate activities. The industry has adapted to the new measures. So, sales interactions are still going on, but just at a slower pace. However, it is not a bad idea to sit on the sideline to see how this pandemic plays out. The Canadian government has already committed more money to fight this then all the money for the 2008 financial crisis. The key is to stem bankruptcies. The government seem to be willing to throw in the kitchen sink. Let’s hope it works.
As a result, the March sales were 19.9% below the 10-year average. The inventory was low: 24.8% below March 2019. The demand was high; thus, sales-to-active listings ratios were bullish: 21.1% for detached homes, 33% for townhomes and 28.9% for apartments. This moved prices up over the previous month. 1.2% increase for detached homes. 1.4% increase for apartments and 0.9% for attached homes. However, this is unlikely to continue next month. RBC predicts that home sales in Canada would drop by 30% this year!
Both the Federal Government and Provincial Government have put out many assistance programs. Updates are almost daily so it makes sense to visit their site directly eventhough there are a lot of prettier summary on the internet.
BC Government COVID-19 Page:
https://www2.gov.bc.ca/gov/content/safety/emergency-preparedness-response-recovery/covid-19-provincial-support
Federal Government COVID-19 Page:
https://www.canada.ca/en/department-finance/economic-response-plan.html
Lenders are also helping out by providing the option for mortgage payment relief. Most of them have online applications as the phone lines have been jammed. Go to your lender’s home page and look for the COVID-19 link for the most up-to-date information. If you are having problems locating the right information, feel free to contact me.
Last month government officials and insurers held an online meeting but it doesn’t look like there is relieve anytime soon in regards to soaring strata insurance. Basically, the insurers are saying the way condos are built and managed in BC, it is just more expensive to insure. Being in an earthquake zone also doesn’t help. So, what came of the meeting were recommendations to the government and stratas on educating strata councils on ways to reduce damage to the building, improving building codes to reduce water damage and stop delaying depreciation reports and long-term maintenance activities. Things to consider when you are looking for a condo now.
