Effects of COVID-19 on Real Estate
Posted Jan 29th 2021
The COVID-19 pandemic has changed our world drastically, and every industry has been impacted to some extent. The real estate market, in particular, has experienced changes, and the demand for detached and semi-detached homes has become very competitive and has experienced growth, despite so much unpredictability.
If you are thinking of selling your home or want to move, you will still have to bid on properties and will have to make competitive offers because the market is very hot. While the effects of the pandemic vary from one region to another, most areas are seeing growth in demand, and people are still interested in buying and selling despite facing a pandemic. The real estate market in the Durham region is stronger than ever before, and this is due in part to the very low-interest rates that are currently being offered. Consumers are not letting this pandemic slow them down and are still interested.
Many people lost their job during this pandemic, but many businesses experienced growth, and this increase in demand resulted in job security for many employees. This means regular paychecks and no delays for buying or selling a home. Those who did have to stay home for a few months were able to apply for the Canada Response Plan, which was released by the government to support individuals, businesses and organizations. Everyone was forced to adjust their spending habits and to invest wisely, and this caused many people to invest in the real estate market. This mindset, combined with historically low mortgage rates in Canada, motivated a lot of potential buyers to look for their dream home during the pandemic.
The condo market is the one that has been affected negatively as the demand for condominiums has slowed down. One of the reasons is because of the physical and social distancing measures that are in place, so fewer people want to live in condos where amenities are shared. The closeness of the units and having to share elevators to get to your home are some of the aspects that have made condos less desirable. Detached and semi-detached houses, however, have experienced substantial growth both in terms of price and demand. More and more people are becoming interested in buying a house because this type of home allows families to have the space and distance they need. This became very clear in June of 2020 when the market reopened and detached homes saw an increase in demand, whereas the condo market suffered.
The Baird Team can take care of all of your real estate needs. We understand the market and will guide you through the process. We have access to all of the houses, townhouses, and condos that are for sale in Oshawa and Clarington, and our team of reputable realtors will make sure you are in good hands. If you want to see homes you will love and want to work with the top real estate agents in Ontario, contact the Baird Team with Royal LePage today!