Its not a surprise that real estate figures are down for the month of April and it won’t be surprising if they are down in May as well, even though we are beginning to come out of the coma.
According to the Canadian Real Estate Association, sales in Canada’s largest markets fell by 66.2% in the Greater Toronto Area (GTA), 64.4% in Montreal, 57.9% in Greater Vancouver, 54.8% in the Fraser Valley, 53.1% in Calgary, 46.6% in Edmonton, 42% in Winnipeg, 59.8% in Hamilton-Burlington and 51.5% in Ottawa.
However, the real estate industry is not standing still but is utilizing as much technological innovation as they can creating new ways to accommodate the purchase and sale of homes. Stats for May are showing that sales have started to pick up in line with the use of technology which will probably be utilized for some time, given we are not out of the woods yet.
Perhaps some good news on the mortgage qualification front. Last week some of the banks lowered their posted posted rates which have been above 5% since the stress test began in January 2018. The stress test rate has fallen a couple of times since it began at 5.34% to 5.04%. If the banks keep reducing their posted rates, the stress test rate could fall even further.
For further facts and figures and an overview of how Canada has reacted politically and financially to Covid 19 see Dr. Sherry Coopers blog http://ow.ly/F1kO30qGrz1