2020 2ND QUARTER REVIEW
The pandemic that started taking effect worldwide was at a peak just four months ago. It’s not just the housing industry that’s been affected, everyone across the entire country is going through a difficult and different set of circumstances.
The market has definitely seen a steep decline in the volume of transactions in the last few months. Throughout most of Canada, sales and new listings are steadily increasing and the average price of residential properties have held steady throughout the pandemic and in some areas even continued to rise.
According to the Hamilton-Burlington real estate board, June home sales are up 53% over last month and are down only 0.2% over June of last year. In Burlington, the average sale price is $872,398 which is up 12% from last June which was $777,502. In Hamilton, the average price for residential real estate is up 14% to $619,049 from the same time in June last year which was $543,323.
Pre-construction sales have hit the lowest level since the year 2000. There has been a decrease in units sold which can be greatly related to the fact that sales centres were closed due to the pandemic and people have been encouraged to stay at home. Some pre-construction developments may be behind due to months of building supplies shortages, approval dates and worksite restriction caused by COVID-19 however, for people that have the ability and the foresight to purchase a unit today that will be completed in a year or more from now will benefit greatly when the unit is completed.
The following are results from a recent survey conducted by Leger on behalf of RE/MAX Canada.
- 56% of Canadians who are planning to engage in the real estate market say they expect to do so within less than a year
- Almost half (44%) of Canadians believe that the real estate market will bounce back to the strength it was before COVID-19 by 2021
- 29% of Canadians believe that before the end of 2020, the Canadian housing market will return to its pre-pandemic strength
While the effect of the pandemic is truly still to be determined in some industries, the real estate market in Canada has been remarkably resilient, and we believe owning a home remains a strong investment in the long run especially when the market sustains year-over-year price growth. We all need a roof over our head, therefore, the short supply and high demand which has been the case for the last few years, the gradually improving labour market and historically low mortgage rates, the road to recovery has already begun for the second half of 2020.
The market is as hot as the weather and gaining traction each day. If moving or investing is something that you are planning or thinking about, let us know and we can help guide you through the “new” way we’re buying and selling properties. Contact us at email@example.com.