This year has been too dramatic for the Canadian real estate industry as struck by the ruthless COVID-19. For months the sector experienced a declining graph making bungalow sellers wonder if the real estate could revive or not.
According to CREA, earlier this year, the real estate graph showed a drastic downward trend in the second quarter of the year while the government enforced an emergency in the country. That was the worst for the industry for a long time. Fortunately, after the second quarter, the real estate industry did rebind with some impressive results.
However, as the industry started witnessing its revival, the second wave of COVID-19 has now started threatening the country. Four of the provinces reported a surge in the number of cases. And in recent news, Dr. Theresa Tam warned of a continuous rise in the number of COVID's cases.
To secure the future of bungalows for sale we would be considering the post effects of COVID-19, how the industry reacted, and what could be the effects of the pandemic in the near future.
Early Impact of COVID-19 on the Canadian Real Estate
After the initial hit of the virus, the state announced severe lockdowns in the country. Which sharply affected the real estate sector. The sector witnessed a sudden fall of 57% in April as compared to the previous month. This resulted in a price reduction of the real estate to 1.3% as compared to the prices in April 2019.
Adapting Technology to Fill the Gap
While the lockdown was in place by the state, the real estate professionals took a wise move to meet certain requirements from the clients. The introduction of virtual visits, e-signatures, online meetings, and so on helped the industry revive at a much faster pace than expected.
However, for clients wishing to see the properties in person, special visits were arranged, keeping the state-announced SOPs in place.
The Revival of the Market
By the end of May, the real estate market revived with a strong push back with an average sales rising to 57% from April. Additionally, the new listings went up to 69% in the same period.
For June, the Canadian Real Estate Association (CREA) reported home sales to be around 63%, while the listings went up 50% more than the preceding month. The national average price also rose by 6.5% in June as compared to that of 2019.
After the breakout of the virus, the Canadian market witnessed July and August as the best-performing months for the same industry. July being the highest in terms of sales where the national sales growth rate was 31%. The sales prices over the year increase by 18.5% in August.
Although the figures are remarkable, homes sales in August 2020 is nearly the same as compared to that of 2019. According to Shaun Cathcart, senior economist, CREA, said:
'It will come as a surprise to many that as of the end of August, home sales in 2020 had fully caught up to where we were at that time last year; however, that is somewhat of a low bar as the first half of 2019 wasn't anything to write home about,'
Advice for Bungalow Sellers During Second Wave of COVID-19
While the Q4 has already begun, and so is the second wave of coronavirus, it's now time to take wise steps to sell homes. Though the virus is not over and the second wave of COVID-19 is already up in the air, everyone should be careful when dealing with matters related to property selling.
The earlier findings have guided everyone on how to protect oneself from this virus. People are already following the SOPs issued by the state. As for home sellers, they already have realized that social distancing is mandatory to protect from the virus.
Additionally, the real estate industry had already prepared itself to use technology in dealing with their matters. Realtors, brokers, and others have now moved to the use of technology, where they are showing properties virtually to their clients. The clients are admiring these advanced shifts.
Till the end of August, 341,463 houses were sold over the Canadian MLS Systems. This shows that the industry could easily maintain its steady growth no matter if the second wave lives or not.
To be clear, property sellers can now have a strong belief in the use of technology where they can set meetings virtually, pay a virtual visit to bungalows, and sign the documents using e-signatures.
If, in any case, the clients wish to see the property in person, a special meeting under specific rules and SOPs could be arranged.
If you are planning to sell your bungalow despite the second wave of covid, you could consult with a local realtor and set a virtual meeting to help you sell your property at the earliest.