Is it a good time to buy a home during the pandemic?
Friday Jan 01st, 2021
Throughout the covid-19 pandemic a lot of homes have come onto the market, and many people are asking, "Is now a good time to purchase a home?"
The answer is that choosing to buy or sell a home really depends on the real estate market. For example, from March to May of 2020, a lot of people were facing economic difficulties because of the covid-19 restrictions. Many Toronto homeowners that feared being unable to cover their mortgage and pay their taxes listed their homes for sale. Because they were eager to ensure a quick sale, they gave buyers discounts and good terms.
Fast forward today, the real estate market has changed. The price of detached houses has really risen, while the value of condominiums has fallen considerably. Why should this be the case?
The answer lies in the housing inventory: fewer detached houses are on the market, so it is a seller's market. However, the market has been flooded with condominiums, so the price has dropped. For buyers, this means that right now is the perfect time to buy a condominium, even in the downtown area, but they should hold off buying a house.
Another factor to consider is the cost of a mortgage. Right now, the HSBC mortgage rate, for example, is a little less than 1% - about 0.99% - so the cost of buying is low.