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‘Wait and see’ period for home sales may be over

Pent-up demand, multiple offers on one home and a shortage of listings — if that sounds like the real estate market before COVID-19 struck — well, it’s all starting to happen again, says Cara Hirsch who runs her own full-service real estate consulting firm. www.hirschandassociates.ca

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Hirsch says she is more than ready to declare the wait-and-see period as over, having seen showings and sales significantly increase in the last month, pointing to June 1 as a definite turning point in the market.

Despite the pandemic, home buying intentions are holding up fairly well, according to a housing report from the Altus Group. Canadians are still buying homes and home buying intentions haven’t fallen and are similar to the same time in 2019, says the research firm in its latest report.

“Although the relatively favourable robust home buying intentions for the next 12 months do not necessarily mean that buyers are ready to get out there in the short term, they are encouraging for pent up demand to be released when recovery from the pandemic starts to take hold,” it states.

Despite the pandemic, the 31-year-old founder of her own firm Hirsch + Associates believes “now” is a great time to buy:

• Interest rates are at an all-time low and experts don’t expect them to go up anytime soon;

• As immigration increases, prices will continue to rise and inventory will continue to stay low. “Real estate is a tangible, long term investment. Historically, it is a safe asset class. It’s not volatile like the stock market where you see major increases and decreases day-to-day. Time in the market is always better than timing the market,” she says.

Safe to say also that even if buyers have delayed purchases, it will result in a pent-up demand. And don’t count on a summer slowdown this year, as the new sales momentum will carry into the fall, she adds.

As for the ‘pre-construction’ new home market, supply will be a concern. Although there is some standing inventory to choose from, construction has slowed down.

Regardless, she says, buyers are becoming comfortable with the new way of doing business whether donning face masks at in-person visits or virtual meetings through Zoom.

And unlike the large buyer meetings of the past, buyers are just as or more engaged than ever — and apparently — ready to buy.