Is Right Now a Good Time to Buy?
Covid-19 has taken over the world and everyone has been locked down in quarantine for what feels like an eternity at this point. Canada's response has been pretty good overall and we are starting to open back up. The sun is slowly starting to creep its head over the horizon and you can see the tree buds popping to meet its glow. Spring is here and soon it will start to get warmer, good times ahead! But is it a good time to buy a home?
I have actually been very busy the last month. With limited showings, gloves and distancing, along with paperwork signed through DocuSign, I've been able to help clients find their perfect home. The interest and demand is still there for some clients and it has provided some great opportunities for those willing to take the plunge. Because of an overall decrease in what was shaping up to be a very hot spring market, the chance for a deal has arrived.
The sellers that were set up to sell before covid have seen a decrease in interest. With covid, they most likely feel like selling now is more important than ever. The buyers who were looking to get into the market now see less competition and a good excuse for a lower price in covid complications. It's a great opportunity to find a deal if you are willing to take the potential risk of prices going down further. I've seen many clients pay much less than what they normally would have and if we come out of this relatively well, it will have been an amazing deal for them.
Of course, there's always a risk that we start to get back to normal and then have a resurgence and have to close down again. This could bring the market down further because of people not being able to get back to work and a big drop in demand because people really become worried. With talking to my clients this isn't a massive concern; they need a place to live no matter what and these are for long term holds. They realize that yes, the market could drop further, but in the long run we will get through this and demand will come back. Also, with Toronto having so much inherent demand, how low can the pricing really go? At some point people will say, "Wow that's really low, I might have to buy this up" and there will be a bottom.
Also, if we do reach a level of panic that plummets the market, at that point it's great to have your own place to live. You only lose money on a house if you sell it at the lows. If you have a secure job and can shelter the storm you will come out winning. Don't try and time the market perfectly. Right now is a great time to find a deal, that's the truth. If you enjoy finding a deal and want to hold for the long term, this could be the best time to buy in a long time. Understanding the risks and knowing your personal situation can go a long way in properly preparing your personal future.
I'm always here to answer any questions you have or to go over what strategy might work best for you. I will never pressure and I will always help where I can. If you're curious about what I've seen lately, reach out anytime. Have a great day and stay safe out there!