When the market does come back, is there any type of buyer who may be particularly well-positioned?
I would say first-time buyers may have a possible advantage, in that they won’t have to worry about selling, so they’ll have greater flexibility and could potentially move in right away.
Any predictions on what’s going to happen with mortgage rates in the next six months? The next year?
In the short term, I’d imagine the Bank of Canada will be holding firm until recovery is well under way. The impact on variable rates is likely that they’ll remain somewhat flat, at very low levels. Fixed-term rates are more based on yields in the bond market. From a short-term perspective, right now, rates are low. Considering it’s a tough time in the economy, expect to see rates remain low as we move into 2021.
Canada especially the GTA was experiencing a hot real estate market before the pandemic, can we expect the same when this is over?
While there is no sure way of predicting what the economy and the real estate market will look like post Covid- 19, what we do know looking back at historical events such as SARS and the crash of 1988 is that the market tends to recover.
In addition, with mortgage rates at historic low rates there is sure to be a resurgence in demand.
Real estate agencies are optimistic and preparing for the lift in business.