The world economy has been affected by the COVID-19 pandemic. In an effort to flatten the curve, here in Ontario Canada the provincial government has mandated social distancing and declared a list of essential services – the only businesses that are allowed to run in the current environment.
Real Estate has been identified as an essential service – people need a place to call home. Even in these circumstances, there are people who find themselves in situations where they absolutely must buy or sell their properties: they may have sold their home already and need to buy a new place to live or the other way around, maybe they have had a job transfer, moving in or out of the city and there may be several other reasons as well.
Although real estate businesses and services are still functioning, brokerages and sales representatives have had to evolve their business models to adapt to social distancing practices and a contactless way of conducting business.
Here at Toronto Condo Investments, we have been in touch with all my clients checking in to see how everyone is doing with their families. Everyone is doing well and adjusting to their new normal of working from home with parenting challenges for some. Some clients have lost money in the stock market which is a large sum of down payment money. Another client is now holding off on buying a larger home given the uncertainty of making two transactions in this market – having to first buy a new place and then sell their current home. Pre-construction investors and end users have received letters from various builders stating unavoidable delays for occupancy dates. This delay is okay for the investor clients however for the end user clients that were hoping to move-in to their home (their first home for the first time home buyers) the delay is challenging as they now have to plan for an interim living situation.
It is definitely not business as usual:
Open houses prohibited
However, despite the prohibition, realtors can continue to host virtual open houses with their clients.
Here are some examples of adaptive business models and practices in Toronto real estate right now:
I completed a lease transaction last week for a client who is moving back to Toronto. Here’s what a transaction looks like in the new social distancing business model :
And a transaction completed without any in-person contact.
That being said – this is definitely not business as usual. The Ontario Real Estate Association (OREA) has asked Ontario REALTORS® to continue doing what is right and suspend all face-to-face business. They have recommended that business that can wait until after the State of Emergency, should clearly wait until it ends. REALTORS® have the tools and capabilities to do showings virtually and OREA has suggested they should use these tools during the pandemic.
At Toronto Condo investments, we are advising clients based on their personal requirements and circumstances:
It is not business as usual however there still is activity in the market. If you have any real estate questions, please feel free to reach out. We would be happy to chat!
This blog is written by Madiha Khan, founder of Toronto Condo Investments and Sales Representative with Century 21 Atria Realty Inc.
