Online data shows real estate activity plummeting

Before going any further, CREW would like to first say this:

STAY. HOME.

And if you can’t do that:

KEEP YOUR DISTANCE.

The sooner everyone begins following the suggestions of the world’s best-informed health experts and avoiding the kind of contact that all but guarantees the continued spread of COVID-19, the sooner everyone goes back to work. The sooner we’re all back to work, the sooner we can start building the economy back up. None of that happens, however, until we start acting like adults. And sometimes being an adult involves doing what you’re told by people who know more than you.

This goes doubly for investors who are flat-out ignoring the COVID-19 crisis by continuing to view properties in person, and triply for those who see the pandemic as a way of saving money by purchasing properties in a less competitive environment. Opportunism at a time like this doesn’t prove a person’s shrewdness. It’s just a naked display of grossness. If you can’t put your personal appetites on hold for the greater good now, there’s not much hope for you the next time the world’s in turmoil.

Fortunately, recent data indicates that prospective homebuyers are taking COVID-19 seriously. A recent study by Point2Homes showed that visits to the company’s website dropped 8 percent on March 11 and continued falling for the next several days. By March 16, traffic on the site had fallen by 32 percent.

Point2Homes also tracked Google Trends and found search activity related to homebuying has also fallen. Searches for “real estate” had fallen by over 25 percent between March 9 and March 16, with “homes for sale” searches declining by almost half over the same period. “Houses for sale” decreased in popularity by approximately 40 percent by March 16, but there was a spike in searches around March 14, just before the crisis started hitting home for Canadians and the Canadian economy.

Shifting to 3D space, technology provider ShowingTime found that real estate showings in three provinces have dipped significantly. In Ontario, the average number of weekly showings started falling on March 13. By March 24, the average weekly number of showings had decreased by 28.8 percent.

In Alberta, showings began slowing on March 11. On March 24, the number of showings in the province had shrunk by 56.7 percent.

In Nova Scotia, the only other province being tracked by ShowingTime, showings began their decline on March 10. Two weeks later, their number had fallen by 38.9 percent.

Will a slightly quicker response among buyers in Alberta and Nova Scotia help limit the spread of COVID-19 more effectively than what’s being seen in Ontario? Probably not. But it does imply a level of seriousness that anyone living in Toronto, where groups of people are still meeting in parks and cars are buzzing along most roads – to where? someplace essential? – would find refreshing.

Victoria real estate ‘in uncharted territory’

The Greater Victoria real estate market felt the effects of the COVID-19 pandemic in March, according to sales figures released Wednesday, but it’s bracing for much worse this month and beyond.

According to the Victoria Real Estate Board, home sales took a hit in the second half of March. Anecdotal reports suggest new protective measures around showings and open houses, coupled with turmoil in the financial markets, could mean sales are few and far between this spring.

“I don’t know that it’s going to come to a grinding halt, but I know we are definitely going to see a slowdown,” said board president Sandi-Jo Ayers. “It will be interesting to see what our numbers look like 30 days from now.”

Current figures could be a harbinger of things to come. Last month, 608 properties were sold in the region, a five per cent drop from the 640 sold at the same time last year.

 “Obviously, we were down a bit from last year, and the majority of the business we saw in March 2020 seemed to be in the first two weeks, then the slowdown began,” Ayers said. “But it’s not a complete stop by any means. Sales still continue to happen, and there are people who still have to buy and sell.”

Some real estate agents have confirmed that, in recent weeks, deals that looked solid have fallen through. In some cases, buyers have had to reconsider their financial positions, given the volatility of the stock markets, some have had to reconsider taking on mortgages and some sellers have been unwilling or unable to reduce their prices.

“I haven’t heard a lot of that, to be honest, but I have heard a few stories and there may be more of that to come,” Ayers said.

“There are people who are having a second thought about whether or not they want to take money out of their [savings], or maybe they can’t.”

Despite the turmoil, home prices remained strong in the region, with the benchmark sale price of a single-family home in the core (Victoria, Oak Bay, Saanich, Esquimalt, View Royal) hitting $877,700 in March, up from $836,100 last year. Condominium prices in the core increased 4.8 per cent over the past year to $531,900.

Ayers said it’s impossible to say where the market is heading, noting the world has changed. While the board expected the downturn, it doesn’t know how deep the drop will be, nor how long it will last.

There are as many opinions on what will happen to home-pricing as there are real estate agents, Ayers said. “We’re in uncharted territory. Had we chatted at the beginning of March, I’d say we were having a busy spring and there were multiple offers [on homes], and then the world changed. Now we are all wondering what the impact will be.”

Last month showed a drop in the number of available properties, with the region’s inventory dipping 7.5 per cent to 2,252 active listings.

That could change significantly in April and May, however, as Ayers notes the economic turmoil could force some people’s hands.

“I think there are probably going to be people who will, unfortunately, be forced to possibly sell, given the economic impact on families, which may increase inventory,” she said. “Then again, it’s too early to really say.”

What she can say is that it’s no longer business as usual, especially when it comes to the way home sales are carried out. Agents have been told not to hold open houses and to discourage in-person viewings unless absolutely necessary. If there are viewings, agents are told to ensure buyers touch nothing in the house.

Agents are being encouraged to run virtual open houses, and to ensure all transactions and administration are done electronically.

“This is a time to ensure our clients are safeguarded, as well as to ensure that our community stays healthy,” said Ayers, noting agents are using technology more than ever to buy and sell homes.

She said it’s not unheard of for buyers from outside B.C. or the country to purchase a property without having seen it in person by viewing virtual tours.

“It would have been rare, but now, as we go forward, we may see more of that.”

aduffy@timescolonist.com

Real estate in the time of COVID-19

When CREW was putting together its most recent Property Forecast issue last fall, every economist we spoke to hinted at the potential for a recession in 2020. Trump-fuelled trade uncertainty would be the most likely culprit and the effects, while uncomfortable, would be minimal.

Now, not even three full months into 2020, the world is confronting a black swan event that has wrapped its wings around the entire planet, suffocating the global economy.

Real estate, as reliant as it is on human interaction, has been hit hard by COVID-19. Rather than simply speculate on how prices and sales will respond to the lack of activity, CREW instead reached out to some of our most trusted realtor friends to get a sense of what has happened to homebuying in various Canadian markets in the wake of the coronavirus outbreak.

Whatever the details, the message is simple: Stay. Home. And if you absolutely have to be in public, keep your distance.

How has COVID-19 affected your market in the past two weeks?
Vanessa Roman, Pemberton Homes (Victoria, BC): We have seen a substantial shift in buyer and seller activity over the last couple of weeks. We've moved from the fast-paced spring market conditions to an almost complete halt in our day-to-day operations. For some sellers, this means cancelling their MLS listings completely. For others who have to sell or are selling vacant properties, it means no open houses, restricted viewing times to avoid people coming into contact with each other, and increased hygiene practices before and after showings. 

For buyers, we are seeing our already low inventory levels drop further as sellers remove their listings from the market. The properties which remain are selling very quickly and in a flurry of multiple offers. 

Brett Turner, Redline Real Estate (Calgary, AB): The market is currently winding down from the buyers and sellers who were actively in the market prior to the ramp up of social distancing measures.  There are a lot of questions from both buyers and sellers regarding what to do and how to approach their spring and summer plans for real estate in the wake of social distancing measures and changes to the economy.  Our associates are taking a lot of questions now about what consumers can expect in the coming months.

Taylor Hack, RE/MAX River City (Edmonton, AB): Our market has been heavily affected by COVID-19 over the last two weeks. Our only consolation was that we were ahead of the curve on this one. The daily stats showed house sales dropping 12 percent and condos close to 25 percent near the end of last week – before the announcements of schools closing. This allowed us to check in with our listed clients and start taking action to help the families we serve as they dealt with the uncertainty of this announcement.

Brett Ackerman, Royal LePage Regina Realty (Regina, SK): COVID-19 has been changing the way we do business every day.  We are seeing action from sellers screening or not allowing showings at this time, which is unprecedented in a spring market.  

Jordan Boyes, Boyes Real Estate (Saskatoon, SK): It hadn’t prior to last week, but we’re really starting to see it slow down now. Open houses have been taken down by our real estate board. 

Marco Silvestri, RE/MAX Professionals (Winnipeg, MB): Our market here in Winnipeg has had a slowdown. Deals are still happening, but not anywhere near normal numbers for this time of year. We have had folks delaying the listings of homes and buyers are reluctant to enter people’s homes at this time. Our Spring Parade of Homes has been officially cancelled.

Thomas Pobojewski, Royal LePage Signature Realty (Mississauga, ON): Up until March 13 our market was firing on all cylinders. In fact, we had a home for sale in Mississauga that had 27 offers and sold for a record price. (The sellers debated whether to wait till April and I advised them to put the property on the market ASAP. Needless to say they were happy with the decision.) Since March 13, we have seen a decrease in the number of showings per listing and in new buyers entering the market.

Angela Langtry, Century 21 Immo-Plus (Montreal, QC): We are starting to feel a slowdown while people isolate themselves and are cautious about the economy. Some buyers have pulled back to wait-and-see mode. Many realtors are canceling open houses.

Thomas Bagogloo, RE/MAX Nova (Halifax, NS): There are fewer buyers in the market, more hesitation to view properties, and the buyers that were coming from out of town have cancelled their trips for the most part. What we have to be careful of is: will anybody putting an offer in still have the income required to close on it later on. Associated closing professionals, such as appraisers and banks and lawyers, will be limiting how they work, too. In changing how they work, this will affect, or delay, the closing process.

Mary Jane Webster, RE/MAX Charlottetown (Charlottetown, PEI): We have made the move to get everyone working from home.  If an individual needs to show a property, it is policy for most offices to mandate hand sanitizer prior to and upon exiting a property.  If a homeowner declines the showing, that is totally fine; it is not an issue of not acting in good faith, it is just the opposite. If we can do virtual showings, that is advised. Strict social distancing measures are in place.

Are people still looking at properties in person? What is your message to consumers who are still behaving as if a global pandemic is not occurring?
Vanessa Roman: I am not doing any in-person meetings or property viewings. My entire business has moved to electronic mediums. As realtors, we can still work but we need to adapt to the rapid changes in our business practices and do our part to limit the spread of the virus. 

Brett Turner: There are still viewings happening, although the pace is slowing dramatically. Our brokerage made the proactive decision to cancel open houses, in-person meetings and client meetups.  As for showings, it is up to the seller if they wish to allow people into their properties.  In Calgary, if sellers are declining showings then they are asked to remove their properties from the market; at present, this is being managed on a case-by-case basis according to the preferences of the seller. We are asking all of our clients, agents and staff to observe the social distancing guidelines set forth by AHS. 

Taylor Hack: As our province has declared a state of emergency, it’s key for us to talk to them about what’s required to be safe to be safe ourselves. Our message to our clients has been specific to them depending on their circumstance.

First, we want to talk about safety. For our sellers, if anyone in the property we have for sale is over 65 years of age or has increased risk due to an immunological challenge or other factors we will immediately cease showings and talk about options to withdraw their property from the market. Also, has anyone in their home recently travelled? Are they aware of guidelines related to self-quarantine?

For our buyers, what needs to change about our process in this new reality? Is there a decision maker that should not be viewing properties due to health reasons?

Also, we’re having the necessary conversations with the listing agent of the properties we intend to show so we can get an understanding of how informed they are of these evolving guidelines and their levels of precaution and risk management related to their listings.

We also talk about need. For any clients that have bought before they sell or are experiencing vacancy on a property, we have to recognize their concern for their financial wellbeing. How does this situation relate to the supply and demand of real estate daily and how can we adapt our strategy to execute?

Brett Ackerman: Showings from buyers have been slightly reduced, but I am still getting requests from agents on properties that are vacant.  I think everyone right now needs to take a sober look at the urgency of the situation and decide if what they are doing is in the best interest of the general public and not a selfish personal decision.  

Jordan Boyes: Some people are still looking, but it’s beginning to slow more and more. There’s hand sanitizer at the entrances, all lights are turned on prior to showings and we’re keeping doors open so people don’t have to touch anything.

Marco Silvestri: I have had a number of buyers showing homes but with extra precautionary measures for sure. Some of these homes are now not currently lived in, so I am being very careful. Virtual tours and Facebook Live is also another way to show a home.  

Thomas Pobojewski: Many would-be buyers have decided to put their plans on hold and will wait to see what is the fall-out of the COVID-19 situation. That being said, there are “serious” buyers out there who have purchased since March 13. These are often people who have sold their existing homes and need a place to live. For the duration of social distancing, I would expect less competition for buyers.

Angela Langtry: Yes, people are still looking at properties in person, although not as many. Last week we were laughing about the pandemic being overblown by the media. This week it became real. I have not been in touch with anyone this past week who is not taking the situation seriously.

Thomas Bagogloo: Fewer people have been listing their properties because they don’t want to have people in their homes. But there are still some people who want to move forward with selling because they have their own personal reasons. They’re wiping down surfaces after every showing.

My message to consumers is to take this situation very serious because it can be transmitted without you even knowing about it. From what I understand, it can take up to 14 days to show symptoms, so on the tenth day you could think you’re healthy, but you’re actually exposing everyone you’re in contact with, which allows the virus to grow exponentially. Learn from the countries that have experienced more chaos and more casualties than us so we can limit what happens to our communities and country.

Mary Jane Webster: Some are still looking.  We have left this up to individual realtors to assess their own level of comfort.  If a client is looking, they must be in need of housing, which is a whole other subsequent consequence to what we are experiencing.  Most are adhering to the guidelines set out by the Chief Health Officer and World Health Organization. Our best advice has been "the best way to come together is by staying apart."

How big an impact do you think the current COVID-19 destabilization will have on prices and selling activity this year?
Vanessa Roman: In my business, the virus has caused sale prices to climb as buyers scramble for the quickly dwindling pool of available properties. However, one thing we've learned from watching other countries - and real estate markets - deal with the virus around the world, is that change is the new constant. It's difficult to predict whether this trend will continue in Victoria through the spring and into the summer as so much will depend on our infection rates. 

Brett Turner: I think it’s obvious there will be far fewer transactions this year and prices may show a decline, but volumes will be lower so consumers shouldn’t read into the changes too much. 

Consumers are facing very uncertain times, so most will choose to sit tight for now because the situation is unfolding so rapidly and there are more questions than answers at present, which does not create the environment conducive to big-ticket purchases like real estate. 

If someone wanted to move prior to COVID-19, they will still be thinking about it.  Canadians are now being asked to spend a lot more time in their properties and consume more of their own real estate.  That will cause people to ask themselves if they are content with their housing, so while transactions will pause, I don’t feel that buyers will leave the market indefinitely.  If the broader economy returns to normal, so will real estate.

Taylor Hack: Every situation is going to have strengths, weaknesses, opportunities and threats. The impact to the most common buyer, which is the average family, will likely be inventory shortages in the weeks after the state of emergency is lifted. Given that families are locked up in their homes, their ability to prepare for sale will likely be slowed.

In the months that follow we expect all the hallmarks of a damaged economy. Cost of funds my rise for lenders based on the losses they are experiencing for deferred mortgage payments. People may have lost their jobs or have to find different ones so their qualifications for financing may be affected.

Next year, this will likely have strengths for us here in Alberta. We’ve been in recession for a long time, so we welcome the other provinces to our boat and ask that they kindly grab a paddle. I think that the universal need to recover from the cost of the stimulus package will do great things for commodities that create the foundation of economies. Shopping local will have new meaning as the world is slowly unlocked based on each country’s ability to maintain a public health policy.

Brett Ackerman: The overall impact will depend on the length of time this lasts.  My personal view is the market will be like a boiling pot of water with listing inventory piling up during this time of uncertainty.  When the situation passes, I feel the market, especially considering the lower interest rates, will have many buyers jumping on the inventory. We may possibly even see an increase in prices in Regina’s market. 

Jordan Boyes: I actually don’t think it’s going to change prices a ton right now. It will just slow transactions and increase the time properties spend on the market. I don’t think prices will begin to dip until things really drag out.

Marco Silvestri: I believe this too shall pass. The important thing right now is that we need to help out the people who need it. 

Thomas Pobojewski: [The Toronto Real Estate Board] predicted double digit price growth in the GTA this year. I believe we will see 3-5% growth going forward. The economic fallout and possible recession will certainly have an impact.

Angela Langtry: Our real estate board is predicting a bit of a slowdown for the spring market and say that, in the short term, we can expect COVID-19 to have a negative impact on jobs and consumer confidence. However, they feel that overall impact will be temporary and will not have catastrophic consequences on property values, given the low inventory supply in Montreal and the recently lowered interest rates.

Thomas Bagogloo: We’re having our best year in decades in Halifax, with most properties generating competing offers. That has slowed down because there are fewer buyers, but we’ve been holding strong price-wise so far. There has been a slight softening, which I believe will continue. As a result, competing offers will be limited and I believe we will be back to more of a balanced market in the next couple of weeks.

There will be a continued slowdown, but this is a moving target and no one knows where it’s going to go.

Mary Jane Webster: Our year-to-date is very similar to 2019.  The impact will be felt in the coming months and weeks.  Our province is down to essential services and real estate and law firms fall into that grey area of “Is this essential?”  Housing is obviously an essential need, and how the related services are effected will truly impact how we are able to meet the housing needs of our communities.  We are all learning as we go.  

Industry, government discuss solutions to condo insurance crisis, but provide no quick fix

Insurers, government officials and condo owner representatives recently held a four-hour, online meeting to discuss the other crisis facing stratas in B.C.: Building insurance that is soaring in price or simply disappearing.


While nearly everyone is anxious about the COVID-19 pandemic, one-third of British Columbians live in condos or townhouses and have the added financial uncertainty of whether their building will find insurance and whether they can afford the increased premiums.

More than 40 officials — from government, insurance, real estate and other businesses — joined the online meeting to discuss potential solutions.

But the main organizer cautioned there is no quick fix on the horizon.

“I think a lot of what we’ve talked about will provide some type of relief, but I don’t want to create the expectation that help is on the way in the immediate term. And that’s unfortunate, because I know this is affecting home owners in a very real way,” Don Forgeron, CEO of the Insurance Bureau of Canada, said.

This crisis did not happen overnight, Forgeron said, and his organization has made recommendations to government and stratas that will require time to bring about change.

“The measures … will help this problem certainly in the future, and we are hoping there will be some spillover affect in the short and medium term as well. But it is difficult to predict what changes will be made and how immediate any of that impact might be.”

About 1.5 million British Columbians live in the province’s 35,000 strata corporations, and many have shared horror stories over the last few months of insurance fees leaping by as much as 400 per cent, staggering increases in deductibles, or buildings being offered only partial policies — or no policies — because insurers are skittish about the sector.

While the condo insurance market has been unprofitable across Canada, this province has been hit the hardest.

“I believe there are issues that are unique to B.C. You have an exceptionally large number of stratas,” Forgeron said.

“Where they are built, the standards to which they are built, the standard for things such as recessed sprinklers and automatic water shut-off values, the type of construction. … And then you have, overarching all of that, the risk of earthquakes in B.C. And so I think it is a confluence of factors that have created a more acute problem in B.C. than perhaps some of the other provinces.”

Kathy O’Connor has owned her Metro Vancouver condo for 16 years, but her building’s insurer has said the policy won’t be renewed and her strata council is working hard to find a replacement. She lives on a fixed income, so fears massive increases to her strata fees when new insurance is found.

“It’s a serious issue that’s affecting many people financially. It’s scary,” she said.

“What we really need is a firm commitment from government that they are going to protect their citizens and also take concrete action. … We would like to see some type of resolution to this because more and more stratas are going to face this situation in the months to come.”

The Insurance Bureau of Canada’s recommendations are directed to governments and stratas, and include:

• Mandatory education for strata councils so they know how to reduce risks in their buildings.

• Amend building codes to help buildings prevent extensive water damage, such as requiring water leak detection devices.

• Pass legislation that will no longer allow stratas to defer depreciation reports and put off long-term maintenance.

• Define a standard strata lot in the Strata Property Act, to make clear what damages the strata lot owners are responsible for and what the strata council is responsible for.

Finance Minister Carole James told Postmedia earlier this month that the province was exploring many options to address the crisis. Earlier this week, a ministry spokesperson said staff wasin discussions with the Insurance Bureau of Canada about its recommendations “with the ultimate goal of seeing more affordable strata insurance costs.”

In addition, the province’s insurance regulator, the B.C. Financial Services Authority, continues to gather data on how widespread the rate hikes are, the average increases across the province, and why this is happening now. The authority is also determining how many of the 300 insurance companies in B.C. provide strata insurance, and how many have stopped offering policies to condos and townhouses.

Others hard hit by this insurance uncertainty include renters who worry increases will be passed on to them by landlords, and non-profits who run supported housing.

“No one should be forced out of their home because of insurance issues. And that’s why we are so motivated to try to find a solution to this,” the IBC’s Forgeron said.

He said the insurance market went through a similar situation two decades ago, and the prices and supply eventually moderated. He hopes changes can be made to “attract more insurers to come back into the B.C. marketplace.”

That can’t come soon enough for Tarry Grieve, who owns a condo in a Port Moody building that so far can only find 60 per cent of the insurance coverage it previously had. He said the building is well-maintained and has had few claims, and yet insufficient insurance may make it difficult to renew mortgages or sell units — something that could eventually be devastating for the B.C. economy.

“I believe government at all levels could work with the underwriters to develop a list of measures that could be taken to mitigate risk, and then change building codes and the strata act to implement those measures,” said Grieve.

“This is an urgent matter for those who cannot get or afford insurance.”

lculbert@postmedia.com

COVID-19: Key developments and considerations for real estate stakeholders

COVID-19: Key developments and considerations for real estate stakeholders

Mar 26, 2020

Like many industries, the real estate industry has felt the effects of COVID-19. As Canadians continue to adapt to new realities, stakeholders across the real estate sector look to support both their people and business needs through these unprecedented times. In a climate that is constantly evolving and changing, this Update presents key developments and considerations to assist real estate investors, landlords, tenants and other interested parties.

Realty tax relief

In response to COVID-19, municipalities across Canada have begun instituting property tax relief measures in order to aid businesses. Below is a non-exhaustive summary of relief granted by municipalities that have implemented these measures. Please refer to the applicable municipality’s publications with respect to any relief provided before relying on such relief, as there may be conditions to the applicability of the relief that are not covered by the brief summaries below.

British Columbia

City of Vancouver	Relief measure
Vancouver - See here for more details.	Property tax payments will be deferred for a period of 60 days. See here for more details.

Government of BC	Relief measure
Victoria - See here for more details.	COVID-19 Provincial Support and Information. See here for more details.

Government of Canada	Relief measure
Ottawa - See here for more details.	Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses. See here for more details.

Local real estate market frozen over COVID-19 uncertainty

Local real estate market mostly frozen as fears about spread of COVID-19 have halted most showings.

The local real estate market is mostly frozen as fears about the spread of COVID-19 have halted most home showings and there is uncertainty in the market for buyers and sellers.

The list of causes for this uncertainty is long, from personal health well-being to job security to newly announced policies such as the B.C. government’s ban on rental evictions, according to real estate agents.

B.C. Premier John Horgan said Wednesday that a temporary renters’ supplement of $500 a month will be paid to landlords and that it should be used by renters who have seen a drop in their work hours or layoff notices.

This will help renters who have lost jobs and wages, but it will also squeeze some mom-and-pop investors, said Vancouver real estate agent Steve Saretsky.

Saretsky is worried that the ban on evicting tenants might “green-light renters into thinking, ‘I don’t have to bother paying.’

“To me, it’ll be a bit of relying on the honour system,” he said.

Saretsky thinks small, individual landlords will have trouble making their mortgage payments if rent payments, even with the government supplement, are forced to be smaller.

Meanwhile, since earlier this week, there is no longer an option on the Multiple Listing Service to register an open house, so Vancouver real estate agent Justin Smith has been offering quick walkabouts via his Instagram live video. He’s offering it as an option and there have been times in the past when sales were easily sealed with a video tour, but “not right now.”

“No one is eager to buy. They (buyers) just are seeing what comes of it,” Smith said.

In recent weeks “there had been a small bounce in sentiment (in sales), depending on how you were priced and what you offered,” said Smith, but word of sales that have closed this week are being seen as the last for a while.

On the flip side, Saretsky said there are still some private showings that are happening, even though most real estate agents aren’t doing them to cut down on social interactions that could spread COVID-19.

The ones that are still happening, he said, come as real estate agents are being pressured by sellers to meet with potential buyers. He explained that as these sellers see a fast-closing window for getting out of the market they’re telling agents that if they don’t show a property, then they’ll take it to another agent.

jlee-young@postmedia.com

Online data shows real estate activity plummeting

Before going any further, CREW would like to first say this:

STAY. HOME.

And if you can’t do that:

KEEP YOUR DISTANCE.

The sooner everyone begins following the suggestions of the world’s best-informed health experts and avoiding the kind of contact that all but guarantees the continued spread of COVID-19, the sooner everyone goes back to work. The sooner we’re all back to work, the sooner we can start building the economy back up. None of that happens, however, until we start acting like adults. And sometimes being an adult involves doing what you’re told by people who know more than you.

This goes doubly for investors who are flat-out ignoring the COVID-19 crisis by continuing to view properties in person, and triply for those who see the pandemic as a way of saving money by purchasing properties in a less competitive environment. Opportunism at a time like this doesn’t prove a person’s shrewdness. It’s just a naked display of grossness. If you can’t put your personal appetites on hold for the greater good now, there’s not much hope for you the next time the world’s in turmoil.

Fortunately, recent data indicates that prospective homebuyers are taking COVID-19 seriously.

A recent study by Point2Homes showed that visits to the company’s website dropped 8 percent on March 11 and continued falling for the next several days. By March 16, traffic on the site had fallen by 32 percent.

Point2Homes also tracked Google Trends and found search activity related to homebuying has also fallen. Searches for “real estate” had fallen by over 25 percent between March 9 and March 16, with “homes for sale” searches declining by almost half over the same period. “Houses for sale” decreased in popularity by approximately 40 percent by March 16, but there was a spike in searches around March 14, just before the crisis started hitting home for Canadians and the Canadian economy.

Shifting to 3D space, technology provider ShowingTime found that real estate showings in three provinces have dipped significantly. In Ontario, the average number of weekly showings started falling on March 13. By March 24, the average weekly number of showings had decreased by 28.8 percent.

In Alberta, showings began slowing on March 11. On March 24, the number of showings in the province had shrunk by 56.7 percent.

In Nova Scotia, the only other province being tracked by ShowingTime, showings began their decline on March 10. Two weeks later, their number had fallen by 38.9 percent.

Will a slightly quicker response among buyers in Alberta and Nova Scotia help limit the spread of COVID-19 more effectively than what’s being seen in Ontario? Probably not. But it does imply a level of seriousness that anyone living in Toronto, where groups of people are still meeting in parks and cars are buzzing along most roads – to where? someplace essential? – would find refreshing.

Squamish tenants say realtors' home viewings put them at risk of COVID-19 exposure

‘My people are stuck between a rock and a hard place,’ says real estate manager

COVID-19's descent on Squamish has created a whole slew of unprecedented housing issues that renters, owners, realtors and property managers are trying to navigate.

One of the biggest questions up in the air involves the rights of visitation when a landlord or realtor is trying to sell a property that has tenants in it. Should prospective buyers be allowed to go inside a home when everyone is doing their best to keep themselves socially distant?

or Miranda Jacobsen, that's a question that has life-or-death implications. Jacobsen has rheumatoid arthritis and has been taking immunosuppressant medication for much of her life. This leaves her highly susceptible to illness and drops her in the high-risk category for COVID-19.

"I am warned every year that the flu, resulting in pneumonia, could very well end my life. COVID-19 is a much higher risk," she wrote to The Chief.

She's living in a condo that the owner has put up for sale just before it was realized the pandemic would have local effects. Due to her condition, she had expressed concern about people coming into her home. However, realtors and repair people were entering her home up until March 12.

"They sent in repair people to look at the ceiling….They had scheduled showings and I just didn't feel comfortable," she wrote. "I was overwhelmed with anxiety and with not feeling safe in my own home. I had started to get a sore throat, so I told them I was feeling symptoms and needed to fully self-isolate for at least 14 days."

Since going into isolation, no one has come in, though they have been asking.

"These people were literally asking me to risk my life, in order to sell a condo, at a time like this," wrote Jacobsen. "I stood my ground and thankfully, they agreed not to come in. But I did not feel it was fair for them to even ask."

Two other renters living in a Squamish condo share a similar sentiment.

Caitlin Aboud and Alex Ryan Tucker are both roommates in their 20s. While they are not immunocompromised, they say that home viewings are a risky endeavour in the middle of a pandemic.

The condo they live in went for sale just before COVID-19 pandemic, but realtors have since been showcasing the home.

"Our landlord's realtor....is pushing ahead with viewings and home inspections," Ryan Tucker said. "Attempts to call off and postpone visits to our home have been met with weak assurances that ill people will not be entering our home and the consistent line that they are simply fulfilling their obligation to the seller."

He said that they've even had to provide their own gloves and masks for the people inspecting their home.

"We do not believe that this is happening," wrote Ryan Tucker.

Aboud said the Residential Tenancy Board has told her the sellers are within their legal rights to enter, even if there's a national lockdown, so long as 24 hours' notice is given.

"I just feel like the laws are really not prepared for such an extreme circumstance," she said.

"Right now, the sellers and real estate agent — their purpose is to sell the [condo,] but at what cost? It's very stressful."
Real estate point of view

Lisa Bjornson, the managing broker of Black Tusk Realty, acknowledges that these are hard times.

She said she empathized with people who have health conditions

"My husband has [rheumatoid arthritis] and is 74. He also has a compromised system with his lungs — very severe due to the medications that he is on. So I understand more than most what this all means and what risk factors are involved," wrote Bjornson to The Chief.

"So what can I say is, we are not villains. We have a job to do in a very difficult time. The sellers have problems too, and may have to sell — what are we to do?"

She said her realtors follow guidelines from the Real Estate Board and the Real Estate Council, which they get from the health authority.

Realtors are being told to avoid touching things, Bjornson said.

With respect to supplies like wipes, gloves and masks, part of the issue is that supplies are short and sometimes, realtors can't always get hold of them, she said.

"My people are stuck between a rock and a hard place," Bjornson said in a phone interview. "They're trying to be compassionate…to listen to everybody, but still, at the end of the day do a job. And by the way, their jobs are highly compromised too. These are...people who don't get EI. There's no fall-back position for any of these people."

During the province's March 20 update on COVID-19, health officer Dr. Bonnie Henry said that open houses could still take place so long as proper social distancing measures are followed.

"It would have to be a one-on-one, and you'd have to be able to maintain distance," said Henry.
Government response

The Ministry of Housing issued a statement to The Chief with respect to tenants' concerns.

"It is our expectation that landlords and realtors be sensitive to the needs of a tenant who may be in isolation or quarantine and not enter without their consent. During this time it is critical that everyone be aware of the health and safety needs of others and practice social distancing. The Residential Tenancy Branch is looking at potential additional protections for tenants," reads the statement.

"We understand the Real Estate Board of Greater Vancouver has already strongly recommended that realtors refrain from hosting open houses following government recommendations on social distancing."

On March 19, the board issued a statement online "strongly recommending" that its realtors refrain from holding open houses.

"Realtors want to do their part to help prevent the spread of illness in our communities and to meet the housing needs of residents in a responsible way," Ashley Smith, REBGV president said in the statement.

"We've heard from some in the community who are unhappy that their realtors are not holding open houses. To those people, we ask for your understanding given the public health crisis we all face today."

Local MLA Jordan Sturdy acknowledged that government bureaucracy is slow to deal with these unprecedented changes.

He said he wasn't aware of any legal mechanisms to protect tenants in these new circumstances created by the pandemic.

He also said the upcoming meeting at the provincial Legislative Assembly will have only a handful of members due to social distancing protocols, so it will be very hard to raise the issue anytime soon.

"It seems surprising that somebody would insist on doing something like this in this particular time in our society," he told The Chief, referring to the home viewings.

"It doesn't seem reasonable right now, or necessary."

'Still thriving': Realtors reboot for a real estate market up against the coronavirus

Like many workers in Canada, realtors are shifting how they do business as they adjust to a new reality in the face of the coronavirus.

Ontario — one of Canada’s hottest markets — declared realtors an essential service, so they will be exempt from the province’s shutdown to limit the spread of the virus that causes COVID-19.

But it’s not exactly business as usual for the province’s realtors.The Ontario Real Estate Association (OREA) asked open houses be put on hold. But people are still buying homes, which means realtors need to get creative.

“For open houses, buyer showings, and home evaluations we are using Skype, Instagram, and Facebook along with our standard virtual tours and photos,” Bill Brach, realtor at Bill Wendy Homes told Yahoo Finance Canada.

“For those clients in need of consultations for staging, we are using video calling applications for real time assessments.”

Brach says he’s also using digital signatures for paperwork and contracts. He says despite the COVID-19 pandemic — for now — the “real estate market is still thriving”. New data show more deals were signed this March break versus last year, in the Hamilton, Burlington, and Niagara region that he operates in.

In spite of efforts to show homes digitally, some buyers insist on seeing a property in person before making a final decision.

“Currently in those circumstances showings have been approved, providing the participants in both parties are not showing any symptoms, have not travelled outside of the country or been in close contact with someone who has recently travelled,” said Brach.

“Gloves and hand sanitizers are placed in the home and viewers are asked to limit touching anything as much as possible - door handles, light switches, etc.”
A shifting landscape

Doug Vukasovic, an Ontario-based realtor with Zoocasa says he was surprised Ontario deemed his industry essential, unlike Quebec. He’s also surprised bidding wars are still going on and so many active buyers have been scooping up properties on the first day they get listed.

“I expect to see a quick shift to conventional pricing from the bidding war strategy as listings will no longer be getting the same level of foot traffic,” he told Yahoo Finance Canada.

“It’s inevitable that demand will decrease as consumers are confined to their homes.”

Vukasovic says the effect on the market will depend a lot on how much longer the COVID-19 situation continues. He says the market is resilient enough to remain strong over the short-term but prolonged social distancing measures could make it a buyers’ market.

“A simple ban on open houses will not impact sellers but any additional future measure could - like a complete government enforced market shutdown.” he said.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

B.C. real estate board warns against holding open houses amid pandemic

VANCOUVER -- The Real Estate Board of Greater Vancouver is "strongly recommending" against its members holding open houses during the COVID-19 pandemic.

The board, which has approximately 14,000 Metro Vancouver real estate agents as members, announced the recommendation Thursday. It has also suspended its rule requiring properties that are listed for sale to be made available for showings.

“Realtors want to do their part to help prevent the spread of illness in our communities and to meet the housing needs of residents in a responsible way,” said REBGV president Ashley Smith in a news release. “We’ve heard from some in the community who are unhappy that their realtors are not holding open houses. To those people, we ask for your understanding given the public health crisis we all face today.”

In its announcement, the REBGV urged anyone looking to buy or sell a home to "discuss COVID-19 preparedness with their realtor."

The board recommended that its members follow the instructions of health authorities for limiting the spread of the coronavirus, including staying home if you are sick or have recently returned from travel abroad, as well as washing hands regularly and practicing "social distancing."

It also offered specific advice to buyers and sellers of real estate during the pandemic. For sellers, the REBGV recommends taking "alternative approaches to open houses, such as virtual showings and other technology-based solutions."

For buyers, the board recommends limiting the number of people participating in a property viewing, sanitizing hands before and after the showing and avoiding touching doorknobs and other surfaces while inside the listed property.

As of Thursday, real estate boards on Vancouver Island and in the Fraser Valley had not joined the REBGV in recommending against open houses, though they have taken other measures in response to the pandemic.

Both the Fraser Valley Real Estate Board and the Vancouver Island Real Estate Board have closed their offices to the public and cancelled events and classes for members.

A spokesperson for the VIREB told CTV News Vancouver Island the organization would be discussing the possibility of a recommendation against open houses, similar to the one made by the Greater Vancouver board, at its meeting on Friday.