Ads Google

Home sellers to wrestle with persistent low price points

by Ephraim Vecina on 22 Apr 2020

Sellers losing significant value in their homes will be a prominent feature of the market over the next few months, said Stephen Brown, Capital Economics senior Canada economist.

“Given the huge rise in unemployment and the cash flow problems that restrictions on tourism have caused investors in the short-term rental market, it seems likely that there will be some forced sellers in the coming months,” Brown said earlier this week.

These sellers “will inevitably have to accept lower bids,” with much-reduced market activity compelling them to make their properties as attractive as possible.

And while other observers have pointed to the sector’s remarkable resilience in terms of value, Capital Economics predicted a national price decline of 5% by July.

By the end of this month, the market should also brace for “an even steeper fall” in sales to a “small fraction of their normal levels,” Brown said.

Boots on the ground have confirmed that this trend is already well underway: The coronavirus pandemic is shaping up to be a less than optimal environment for home sellers, London agent Joyce Byrne said late last month.

“Maybe they soften their price, maybe they open themselves up to conditional offers. Maybe they’ll be open to accepting something with a home inspection or other financing conditions attached,” Byrne said.



Post a Comment



Most Trending News

Training new skilled trades workers must be a priority
News

While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.

Read More
To build 1.5M homes, we must think outside the box
News

Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.

Read More
Upcoming free event: Canadian Real Estate Investment Summit
News

This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.

Read More