There is no denying that COVID-19 has had an unprecedented impact on world economies. Governments all over the world have been updating their citizens on the way forward. The Ontario government updated real estate land registration services to be part of essential services. In some areas, there has been a steady flow of new listings and some Ontario realtors are still finding themselves with a fair share amount of work.
The Ontario government also provides guidelines on open houses for the Provincial State of Emergency. Realtors might be confused about whether it is still possible to hold open houses with the COVID Pandemic. It is important to consult with the local authorities even if the province-wide State of Emergency has been lifted.
Measures Put in Place
The majority of real estate transactions require in-person communication. This includes open houses, inspections, appraisals, and closing. As more provinces put in place in-shelter orders, there has been a lot of confusion on the way forward in the real estate industry. Different provinces have responded with a variety of restrictive measures. There are some agents that have become innovative with the current plight and are now offering virtual showings. As the virus continues to dominate headlines, buying and selling real estate has been completely transformed and might never be the same just as is with other industries. There has been a significant drop in the interest of buyers.
The new prohibitions will obviously have a significant impact on members. The officials are still working on the new guidelines so the industry is not affected by the pandemic.
As it is too early to tell the extent of COVID-19 in the real estate sector, the early signs only paint a bleak picture on what is ahead. The volumes of sales have drastically dropped but the prices have remained steady despite the prevailing conditions.
There are some jobs that have been vulnerable to pay cuts and layoffs compared to others. This will also have an effect on the purchasing power of consumers. The response of the local government to the situation could also contribute to the ruins or fortunes or the real estate market. Those local leaders that did not take the virus seriously early enough will have to contend with shelter-in-place orders longer than necessary.
The implication for mortgages will vary from one province to another. There are places that have implemented up to one-year mortgage forbearance because of the impact Coronavirus has had on the economy. As a result, homeowners can stay in their houses without having to worry about foreclosures. The government needs to step in to help with the entire situation because there is the risk of the mortgage system collapsing because of COVID-19.
There are fears that the real estate industry could end up like what happened in the United States in the year 2008. The best one can do is to hope that things will get back to normal soon. If you’d like to read more about open houses and the real estate market, you can check out https://www.faristeam.ca/