Covid-19 has changed the world quickly and dramatically in a short time. The government has had to make some hard decisions to protect Canadians, which has caused massive closures, canceled events, stock market drops, and people fighting in fear for food and items for their home. COVID-19 has affected everyone internationally, but will this eventually impact the housing market in the KW Region?
Many circumstances could play out in the Kitchener and Waterloo real estate market in the coming months. With people in a panic about the Covid-19 crisis, there is uncertainty in the market. Both buyers and sellers are going to have to consider the facts. They will have to decide if it's in their best interest to buy or sell. Already in March 2020, the major banks have made cuts to the prime rate, which will affect variable-rate mortgages and lines of credit.
People Still Need Somewhere to Live
Even in a pandemic, people still need to live somewhere, and that may cause an aggressive real estate market this year. Unfortunately, the KW Region is growing quickly and the real estate market is in short supply of properties for sale. The prices continue to rise as some people will do anything to find a home. Sellers in the GTA are taking advantage of the record-high sales prices, selling their property, and investing in a similar or larger property in the KW area, which is much more affordable. However, on the other side of this situation, they could be fewer sellers that want to sell their homes due to fear, and a variety of other reasons. With fewer homes on the market may cause a housing frenzy for those who are desperately searching for their new home.
Supply and Demand Will Dictate How Things Will Go
There is a lot of speculation and opinions about how things will turn out, but nobody knows. Ultimately, we have to let the situation play out and see what happens. Some sellers may believe that there is a major recession coming and want to get their homes listed on the market as soon as possible to prevent falling prices. Some buyers may avoid going to open houses and viewings due to the spread of Covid-19. For some of us, things are on hold now, possibly for several weeks or months. However, this situation could stabilize quickly after we get the pandemic under control.
The spring real estate market has been one of the most important periods for buying and selling homes. As we head into the spring real estate market in the KW area, we could see a combination of possible scenarios. Nevertheless, it could also be business as usual with an increase of sellers from out of town that still wants to buy in the KW Region. If this is what happens, the local market could become more stable and balanced.
Working With a REALTOR®
It is highly recommended that you consider getting the guidance of a local real estate professional. They have the expertise and are following the real estate market very closely. If your choice is to sell, ask your realtor what their marketing plan is to get you the most value for your home. If you're buying, you will need to work with someone that understands the neighbourhood and community that you want to live in. A real estate professional will also have a solid home buying strategy, be watching out for trends, and excellent at negotiation.
Looking for a Real Estate Professional
Don't get stressed out and let Mike Bolger do all the work for you. Mike will search every resource that is available to find you the ideal house or property that meets your requirements. Also, he will give you the best insights into the community, market, and the area. Plus, Mike will make himself available to get you the answers that you want. Get VIP service that will make your entire real estate experience easier and stress-free.
Call Mike Bolger at (519) 616-2656 now.