In addition to COVID-19 affecting the stock market and the routines of our daily lives, we are beginning to see the effects it is having on the housing market in Canada. No different than the economy, real estate is showing some effects caused by social distancing and lack of spending. As mentioned in the report, "activity fell 14.3% nationwide... with "Calgary (-26%) and Toronto (-21%) led the decline." It also appears that the early data shows that April appears to be worse than March. All of this is not surprising as the virus began to show its affects on the economy in mid March. Similarly to the stock market, the length and depth of the damage to the economy will be the determining factor in all of this. With the economy operating at limited capacity for an extended period of time, the Canadian government is doing their best to limit the shock. While they have initiated financial relief like deferring mortgage payments and lowering interest rates, only time will tell if enough has been done.
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To look at the full report, please click here.