On October 15, 2020 the Bank of Canada announced, that they will stop the Canada Mortgage Bond Purchase program in the week of October 26, 2020. In their explanation the bank stated, that improved
Contradicting real estate news during COVID pandemic
Dated: October 15 2020
If you are only slightly interested in real estate or news, you most likely have been receiving contradicting messages regarding the housing market in Canada. The headlines so far have offered everything from the bursting bubble to the unprecedented demand for housing and the record sales numbers never achieved before.
But don't you ask yourself, what does that all mean and why can't they make up their mind? These different scenarios largely depend on the view from which one is trying to determine the real estate markets and trends going forward. Most likely the large banks economists, the insurance companies and government officials see the housing market on a more negative side of the scale and predict bold declines. When you listen to the large real estate company reports from RE/MAX, Royal LePage and brokerages like eXp or agents in general, you most likely have heard the opposite story.
So what to believe? Well, that strongly depends on your circumstances. These broad assumptions barely make sense for everyone, but usually are hitting the nail on the head for some people.
Let's take the story of Alan as an example. Alan and his wife live in a nice townhouse in their preferred neighborhood with their dogs and their two kids. Yes, the dogs are important! They are thinking about buying a Single Family Home preferrably in the same neighborhood. Should they do that now with all the COVID uncertainty? Well, since Alan is working as a Manager at the local grocery store, his job is safe. His wife is working at the hospital and we all know, her job is safe for sure in these times of the pandemic. So now we just have to ensure, that Alan and his wife have the necessary financial cushion and get financing approved to buy up.
Since in that scenario, the current circumstances don't affect Alan and his wife at all (jobs are safe, the banks are willing to lend etc) they can move. This adds to the activity in the marketplace, with them selling their home and then buying another home. Dollars into the economy are being triggered with every sale and that is a good thing.
You may not be in the same situation and therefore the broad band fearmongering won't help you just as the opposite of sky high real estate sales. It is most important to talk to your local real estate professional and openly discuss your circumstances, so that together you can determine if the news are affecting you at all.
If you live in the Fraser Valleys beautiful cities of Langley, Abbotsford, Mission or Chilliwack, we greatly appreciate your call and allow us to be the professional REALTOR®, who helps you determine all the facts before you make a buying, selling or real estate investing decision.
Frank and Sherry Heitzer are partners in business and in life. While Frank was born and raised in Regensburg, Germany, Sherry was born and raised in Langley, BC. Both of them started their working liv....
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If you are only slightly interested in real estate or news, you most likely have been receiving contradicting messages regarding the housing market in Canada. The headlines so far have offered