THIS TOO SHALL PASS



May 4, 2020

For the very first time since April of 2017, in Feb 2020 we saw prices of residential properties going up in Don Mills. Not just going up but some houses receiving multiple offers and going over the asking price by big margins. It picked up a lot of steam till mid March and then suddenly everything froze. Darn!

 

Presently Don Mills (District C13) has 89 listings. 31 condos, 2 townhouses, 6 semis and 50 detached homes available for sale. From March 22 to April 22, only 13 condos, 0 townhouses, 3 semis and 7 detached have sold. As of today (April 22) we have not yet seen big drops in prices but it could be around the corner.

 

Public open houses are not allowed and in-person showings are strictly restricted. Virtual and video tours of the properties have become the more common and practical way to go.

 

That is not to say that buyers are not there and the showings in person are not taking place. Though the showings are way less than what they were, there are still some buyers that want to/need to buy even in this climate. That is a bit of a good sign for homeowners that want to/need to sell in this market.

 

Fortunately, like Ecko Jay Realty, most companies and agents are following and respecting the COVID-19 guidelines, rules and regulations when listing and showing houses, in the best interest of everyone involved and concerned.

 

It is difficult to forecast very well right now. As someone put it correctly, “world’s direction today depends not on the economic trends, but on the behaviour of a new and still poorly understood virus”.

 

Needless to say, homes being sold now will be sold at lower prices than we could have obtained up until the 2nd week of March. How much lower will depend on some factors. The longer the virus and the lockdowns continue the worse it could get. With record numbers of people being unemployed, sadly, some will not be able to maintain their mortgages and thus might have to put their houses up for sale. The more homes come on the market for sale, the lower the prices will go (supply and demand).

 

On the other hand, if in the next 2 months or so the virus is at least somewhat under control and the confidence is back, the prices will not drop much.

 

Is this a good time to sell? Not unless you are concerned and believe that the prices will plummet and thus you could lose a lot of equity in your house. If you do decide to sell in this market, you must be prepared to sell at today’s prices and not yesterday’s. Also get as fat a deposit and as quick a closing as possible. In case the market takes a turn for the worse, prices drop a lot from the time of sale and banks become reluctant to give mortgage to the buyers. Also, the proper COVID-19 clauses must be attached to the offers to protect yourselves. You may feel free to consult me confidentially about all that.

 

Not many houses have sold in Don Mills since the middle of March. Thus the proper new price indication will not be there. The April figures for the number of houses sold is disappointing.

 

Since last year I have been smelling recession in Canada for 2020. If the government does not announce recession in May then in my opinion they are hiding something from us.

 

There are all kinds of views, opinions, conspiracy theories, blame games, etc floating around about the virus and it’s cause and how bad the Economy is going to get. Easier said than done I know but, by worrying too much and being fearful (and watching news all the time) we are only making our immune level drop. That is the last thing we need. The important thing for us is to follow the COVID-19 guidelines, protect others by protecting ourselves and remain hopeful, positive and as calm as humanly possible.

 

Let’s be grateful and count our blessings for living in such a wonderful and safe country. Let’s remember the many in Toronto that are less fortunate than us and in need of help and give, donate in whichever ways we can. I know that we would want that if the roles were reversed.

 

I wish you all and your families the very best. Take very good care of yourselves and the elderly in your neighbourhood and remain safe.

 

Please feel free to contact me should you have any concerns or questions. It does not have to be real estate related.

 

Love and Hugs (from 2 meters away, of course),

 

Ecko Jay
Broker of Record / Owner
Ph: 416-445-8858
eckojay@eckojay.com

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