Sales drop significantly in Haldimand, but home values are up
By Mike Renzella
The Haldimand Press
HALDIMAND—A new report released by the Realtors Association of Halmilton-Burlington (RAHB) is shining the spotlight on the impact of COVID-19 on the local real estate market.
According to the report, around the time that the provincial government announced the closure of all schools in Ontario, the real estate market began slowing. Currently, the market is operating at roughly half the volume it was at the same time last year.
RAHB President Kathy Della-Nebia gave some specifics about where Haldimand and Norfolk currently stands: “In Haldimand, sales dropped from 53 in March to 22 in April 2020, and new listings dropped from 73 to 27. Typically, we see an increase in sales and new listings as we move further into the spring market, so the anticipated number of sales and new listings was greatly affected by COVID-19. Haldimand had the highest drop in new listings of the four major communities in the RAHB market area at 75.7%, and also had the lowest number of new listings at 27.”
Despite the drop in sales, local realtors are confident that the market will rebound as the crisis passes and the economy begins to open back up.
Haldimand Sales Activity for April 2020
“People should be staying home at this time unless they have to go out. So, sales volume is naturally down as it should be when people are at home, like during the summer or Christmas seasons. What is important when looking at numbers is value. I have not seen an indication that values will fall or flatten,” said Tom Flatt, Broker of Record at Coldwell Banker Flatt. “The headlines say sales are down … but in Haldimand, the average value went up 13.8% in April 2020 compared to April 2019 and Hamilton is still up 5.9% for those periods. People have to move in good or bad times…. There is a shortage of all types of housing to choose from, which will keep prices up.”
Real estate may have been deemed an essential service, but the methods used to sell homes have had to change swiftly to adjust to the new normal. RAHB had already worked to cancel in-person open houses prior to the official ban that was put in place by the provincial government on April 4.
According to Della-Nebia, the RAHB has suppressed the open house feature within their MLS (multiple listing service), and temporarily changed rules and regulations so that listings could not be suspended if they are not available for in-home showings. In addition, the group is vetting their clients to find out what their requirements are and whether or not they fall into the category of ‘vital’.
“Preparing an offer on a property that the buyer has never seen in person and using a condition for a period of time for the buyer to view is something that was rarely done before COVID-19. We pivot quickly to the times and to our clients’ needs. Our goal is to continue to provide the service our clients need while keeping everyone safe,” said Della-Nebia.
Although virtual walk-throughs were widely used before the COVID-19 pandemic, their use has become a necessity. Videos would typically show highlights of a home for prospective buyers, but they have become much more detailed and specific in the absence of in-home visits. Della-Nebbia pointed out how prospective buyers are getting up close looks at things like hydro panels and furnaces through virtual touring, as well as requesting measurements of rooms, as examples of how realtors are expanding the online experience for potential buyers. From new clauses and closing arrangements, to the use of pre-visit questionnaires, the real estate market is evolving quickly to achieve their goal of continuing to provide service while keeping all parties involved safe.
“The safety precautions are pretty easy to implement,” said Flatt. “I have always put out a pretty good amount of virtual information…. People still want to talk on the phone.”
As for when the market expects to return to normal, that is tied in to how long the pandemic persists, and how long measures need to be taken to keep people safe. “Currently, we are seeing the number of sales and number of new listings being affected; however, average price seems to be holding steady. This is because although there is a drop in sales/new listings, there is still a balance between the number of sellers and the number of buyers in the community,” said Della-Nebia. In fact, according to the RAHB report, the average house price in Haldimand County actually increased slightly from $460,000 in March to $474,500 in April.
“Price is greatly affected by supply and demand. The average price may be impacted in the future should the state of emergency and its safety measures need to continue, and if supply outweighs demand – or vice versa,” she continued. “More stable numbers will probably not return until the state of emergency and safety measures are relaxed/lifted. We do expect increased activity once this happens due to many people delaying to buy or sell due to the pandemic – that is if it doesn’t last for a prolonged period of time.”
Della-Nebia also indicated that the length of the crisis could have a direct impact on a prospective client’s buying power.
Flatt is not as worried about a rebound, however. “On the contrary, I feel it will become even more heated in our area with prices rising. We have a current shortage of inventory (compared to a usual spring). City folks are wanting to push this way even more than before, not wanting to be cramped in a city if this happens again or continues. Our prices are still lower than anywhere within two hours north of us.”
“There are various situations that could take effect, but there is some positive information with the flattening of the curve and gradual relaxing of measures that point to a possible opening up of the economy. We definitely would not want to rush anything in the name of home sales – we’re all in this together, and the health and safety of our communities is of the utmost importance,” added Della-Nebia.
As for advice for potential buyers or sellers, Della-Nebia offers the following: “It might be frustrating or scary if you need to buy or sell during this unprecedented time, but your realtor will work with you to market your property in the safest way possible. Virtual technology has come a long way in recent years, and you would be amazed at how you can view a property without even entering it. This pandemic may change the way real estate is traded moving into the future.”
Flatt offered some incentive to prospective clients: “Haldimand property owners are in a great position for value growth and the market is desirable just like during and after the 2008 recession. There is great value here in proximity to the greater city centres and we have great little towns, recreation, and major amenities that make us continually desirable.”
