“If homeowners can just hold off selling, the Canadian housing market will emerge fine from its current “deep freeze”.
According to a recent TD Economics housing forecast update, the market is expected to gradually recover from the effects of the COVID-19 pandemic.
After an anticipated “historic” plunge in sales in the month of April 2020, a “much stronger activity” is seen next year.
A lot of that depends on whether homeowners can avoid distressed selling during this pandemic.
“Absolutely key to our forecasts is the assumption that listings mirror sales by dropping substantially in the near-term and recovering gradually thereafter,” Rishi Sondhi, an economist with TD Economics, wrote.
By holding off on selling, homeowners can do one thing for the market.
“This puts a floor on prices and sustains relatively tight-supply demand balances across most markets, allowing for the resumption of positive price growth as provincial economies are re-opened,” Sondhi explained.”
– excerpt from ‘Homeowners avoiding distressed selling key to Canadian housing market recovery: TD Economics’, Carlito Pablo, 1 May 2020, Georgia Straight
No, folks, that ‘analysis’ is not from ‘The Onion’.
Seems like the TD analysts have found a sure fire way of maintaining every bull market, forever… (it’s easy: just get sellers not to sell).
It’s remarkable that this kind of ‘analysis’ can get parroted on & on without getting called out.
Remember: Sellers aren’t competing with Buyers, they’re competing with other Sellers. How many Vancouver RE speculators (essentially each and every buyer for the last 10-15 years) are going to realize their thus-far-paper profits? We are already seeing many anecdotal examples of people who bought in 2016 or later taking losses on resales.