Even though home sales are declining because of the coronavirus, the news isn’t all bad. The good thing is that both supply and demand are declining, which means that the market is more robust than it seems. In some places like Toronto, prices are even still growing. This means that the economy will be in better shape than some might fear, assuming that it can re-open soon. If it opens past June then these projections might change.
Key Takeaways:
- While the market is down, the fact that both supply and demand are down right now is more promising.
- While coronavirus is impeding the housing market, the news is not all bad.
- Depending on when the economy opens back up, the market could recover right away or take longer.
“The national market can still provide some impetus for home price growth despite declining sales, according to Royal Bank of Canada Senior Economist Robert Hogue.”
