The price of real estate continues to fall as the adverse effect of coronavirus has now started to haunt worldwide Real Estate brokers and investors. While so far in Canada, the country has largely been spared by the worst of what the virus has to offer, but slowly the panic among the public is growing. And that has started to affect the prices of real estate in Canada, and especially around the Toronto region.
The price of every real estate has seen some kind of reduction in the past few months, and condos are no exception. If you think that the price will continue to fall to alarming levels, you are somewhat correct. And if you believe that the prices are already meager, and they will bounce back very shortly, you are not very far from rightly predicting it. So, why are both aspects look seemingly correct at the same time?
Let me offer you an example so that you can understand my viewpoint easily and how both aspects will continue to make anyone looks for an investment in condos anxious.
Why the Prices of Condos Seems to Go Further Down?
The prices of real estate always get affected by economic situations in any given country or region. Global epidemics like the Coronavirus certainly have affected the prices, and it will continue to go downwards. There are many ways in which this is not an ideal situation at all for real estate investors and brokers. The downward spiral of Toronto condo prices and other real estate is a cause for concern for not only people associated with this field but also people who reside in condos were thinking of selling it to get a profit.
So, what will happen if the prices will see a downward trend for six months or even further? This will be a disastrous trend for sure as the prices of real estate can go down and up very quickly, but it shakes the confidence of the investor so that it can take much time to bounce back from the low prices that we will see in around six months.
Second Opinion: Prices will not go Down Further
The other group of investors and real estate brokers who think that the prices are already down will not see any decrease in the coming months, maybe true, but to an extent. The reason is that, coupled with the economic downturn and rising fear among the investors, it is safe to say that there will be a further reduction in the prices of condos in Toronto.
The investors who want to buy a condo in Toronto within a few days are optimistic that they are buying at a very reasonable price and that they will get handsome profit as a result. Chances are the prices will go down quite steeply, and that’s why such investors need to be cautioned. Investment in the real state is not a child’s play as millions of dollars are involved in such transactions. So, investors in real estate and the brokers need to vary of the fact that this is not the right time to make any investment.
Final Verdict
I am sure that all of my readers who have carefully read this blog will understand my viewpoint. And will agree that the situation currently in the real estate market in Canada and especially in Toronto, is far from Ideal. There are bright chances that the prices will go down further, and the overall conditions will be tough to deal with during the next 4 to 6 months, if not even further. So, the people who are in favor that prices will go down further are correct.
Still, if you want to invest in the real estate market in Canada or Toronto, you need to be very careful. You can look for any other city for a small town other than Toronto so that your investment will not get a big dent if the prices fall further.
If you think that you can add something valuable to this blog or want to ask a question from me about any aspect mentioned here, you are more than welcome. For any type of feedback, please use the comments section below.
