The Impact of COVID-19 on Real Estate Showings in Ontario

As we enter the second week of the COVID-19 state of emergency declaration, one thing rings true — we are all in this together with the focus of individuals and communities coming together to practice social distancing (physical distancing). As a result we have naturally seen showing activity fallen off from the same period in 2019 as the impact of COVID-19 continues to grow. ShowingTime has provided data that shows weekly showings through the ORTIS system.

Through mid-March, year-over-year showing activity was higher nationwide compared to 2019. The current downturn is indicative of the industry’s response to COVID-19, which is changing daily. This chart daily to reflect the most recent data on showings.

For more information on the impact of COVID-19 on real estate showings across North America, please visit: https://www.showingtime.com/impact-of-coronavirus/

Source: ShowingTime (Impact of COVID-19 to Real Estate Showings in Ontario)

While the MLS® Rules require all listings in the MLS® System to be immediately available for showings – at the moment sellers and Realtors® are being creative, embracing technology, to preview homes, but the consensus at this time is to not show homes until further notice.

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Information related to the efforts to mitigate the outbreak of COVID-19 is constantly evolving. To follow the guidelines and precautions set by Canada’s public health authorities, see Health Canada’s website for comprehensive coverage.

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The information provided in this feature has been sourced by Adam Stewart, Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither Adam Stewart, nor Chestnut Park Realty Southwestern Ontario Ltd. Brokerage assumes any responsibility or liability.

Adam Stewart is a Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage serving Guelph, Kitchener-Waterloo, Cambridge, Wellington County and Southwestern Ontario markets. Adam can be reached at 519-265-2602, online at www.adamstewart.ca, or by email at adam.stewart@chestnutparkwest.com.

How This Real Estate Agent Continues to Bring Buyers and Sellers Together During COVID-19

It’s clear we’re all in this together, and we’ve all been spending the last few days coping with the development of the COVID-19 pandemic with feelings of uncertainty.

As a real estate sales representative with Chestnut Park in Guelph, one of the most important aspects of my service is to tour homes extensively with clients to access their features and benefits, and to identify areas of concern that could impact their way of life both health-wise and financially going forward during their time of ownership.

Naturally, with practicing social distancing we need to find a balance of supporting our clients requests to view properties while maintaining a high-level of social responsibility. Given the exceedingly quick pace to which COVID-19 and necessary social distancing measures are taking place, it is inevitable that the real estate market will have challenges in the short-term.

What we are seeing in today’s environment is certainly a continued level of interest from both buyers and sellers to maintain course given the length of time it takes to start a listing campaign, and of course the life decisions that determine why a buyer or seller is engaging in a real estate transaction. These are extraordinary times and as a society, we are in uncharted territory. It’s critical that we continue to stay calm and work together to stay safe, while supporting each other day-to-day.

One of the measures that is proving to be extremely useful during social distancing that continues to bring buyers and sellers together in an effort to minimize the risk of exposure to COVID-19 is the use of a system called Matterport, which enables prospective buyers to view properties in 3D in the comfort and safety of their own home. In today’s environment, this advantage will allow homeowners to stand out from the competition and provide an immersive experience that's not possible with photos or 360 tours. With a 3D virtual tour, prospective buyers can do their own walk-through a property from anywhere, anytime, generating higher engagement and interest.

Matterport 3D Tours Allow Buyers & Sellers to Come Together in a Socially Responsible way During COVID-19.

Of course this is one tool that we have to help attract qualified buyers by giving viewers the most complete representation of your property, as well by filtering out those properties that may not be the right fit will certainly support our social responsibility with COVID-19.  

If you are looking for guidance in your decision to start your listing campaign in the coming weeks, and would like more information about Matterport to support your listing campaign, please feel free to reach out to Adam directly.

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Information related to the efforts to mitigate the outbreak of COVID-19 is constantly evolving. To follow the guidelines and precautions set by Canada’s public health authorities, see Health Canada’s website for comprehensive coverage.

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The information provided in this feature has been sourced by Adam Stewart, Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither Adam Stewart, nor Chestnut Park Realty Southwestern Ontario Ltd. Brokerage assumes any responsibility or liability.

Adam Stewart is a Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage serving Guelph, Kitchener-Waterloo, Cambridge, Wellington County and Southwestern Ontario markets. Adam can be reached at 519-265-2602, online at www.adamstewart.ca, or by email at adam.stewart@chestnutparkwest.com.

New Mortgage Stress Test Rules Coming...How will the Canadian Mortgage Stress Test Impact you in 2020?

Starting on April 6th, 2020, the Government of Canada will be ushering in changes to the mortgage ‘Stress Test.’ So, what are these changes and how might they affect your home purchase this year?

• Ever since 2016, all insured mortgages must qualify at a minimum rate or, in other words, pass a ‘stress test’. The key difference between an insured mortgage and an uninsured mortgage is the initial amount you’re able to put down on the purchase of a home. If you find yourself able to put down more than 20% of the purchase price immediately, you can carry on without seeking mortgage insurance. If, however, your down payment comes in at under 20% of the total purchase price, the government mandates that the balance of the mortgage must be backed by government-supported insurance.

• This policy was introduced four years ago as the Canadian housing market started its current upward climb, in an effort to ensure that buyers – especially younger, first-time home buyers – would be able to continue servicing their mortgage in the event of a climb in interest rates without being forced to default on the loan.

• In order to pass the current ‘stress test’, borrowers “must qualify at the greater of the: » Borrower’s Contract Rate, which is the mortgage interest rate agreed to by the lending institution and the borrower; or » Bank of Canada’s five-year Benchmark Posted Mortgage Rate, which is the mode of the posted five-year conventional mortgage rates offered by the six largest banks”.

• Starting on April 6th, these rules will change. To pass the stress test, home buyers will now need to qualify at the new benchmark rate, which will be the weekly median five-year fixed insured mortgage rate from mortgage insurance applications, plus 2%.

• In real terms, this change boosts purchasing power by an average of 5% for those home buyers who are proceeding with an insured mortgage. Looking at things another way, if you had been pre-approved by your bank for a home purchase of up to $450,000 under the current rules, that limit will be boosted up to $472,500 under the new rules. This gives first time home buyers a little more wiggle room to compete in a hot market where bidding wars are once again becoming the norm.

For more information, please feel free to reach out to Adam directly.

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The information provided in this feature has been sourced by Adam Stewart, Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither Adam Stewart, nor Chestnut Park Realty Southwestern Ontario Ltd. Brokerage assumes any responsibility or liability.

Adam Stewart is a Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage serving Guelph, Kitchener-Waterloo, Cambridge, Wellington County and Southwestern Ontario markets. Adam can be reached at 519-265-2602, online at www.adamstewart.ca, or by email at adam.stewart@chestnutparkwest.com.