Real estate sales are on a downward spiral just as the spring market was revving up.
There were 13 firm sales reported on the local MLS® for all of Norfolk County for the week of March 23 to March 29. The following week, March 30 to April 5, only reported three sales. That’s a decrease of 77%.
During the week of March 30 to April 5 one year ago, there were 23 sales reported on the local Multiple Listing Service (MLS®). This year’s numbers for the very same week illustrate at 154% plunge.
Real estate showings are down 75.8% from same time last year.
A side effect of the global pandemic is that the local real estate market went from a seller’s market to a buyer’s market overnight.
Buyers, sellers and REALTORS® alike are coming to terms with these challenging times. Everyone is learning how to adapt.
The question on everyone’s mind is “what’s next?” April is going to be a telling month in terms of what we see in the short term.
It’s a wait-and-see approach to see the impact on a more stabilized basis.
“While it’s impossible to determine how long sales could be affected, and there isn’t exactly a precedent for how this health crisis may play out, there is one economic event that could be comparable in how the housing market was affected – the 2008-2009 global recession.
According to analysis by Zoocasa, benchmark real estate prices dipped across the nation during this time period by eight per cent from $370,900 to $341,700. The drop was most pronounced in the Greater Vancouver area, which experienced a 14-per-cent decline, from $575,400 to $497,000. Losses were smallest in the Greater Toronto Area, down six per cent from $367,100 to $344,900.
However, these price declines didn’t become the norm – as any market watcher will tell you, the decade between the end of the aughts and the start of 2020 ushered in a period of astronomical price growth.”1