Royal LePage Introductory Letter

RCMP Veterans’ Association

Members Helping Members


This information is being provided to all Association Members


Royal Lepage Newsletter – April 2020

Dear Association Members,

As part of their sponsorship program Royal Lepage has provided the first in a series of newsletters keeping our members abreast of what is happening in the world of read estate.

The newsletter is quite informative and touches on the effect that Covid-19 is having on the housing market.

Not surprisingly we are most appreciative of the support of Royal Lepage and thank them for their sponsorship of our Association.

The Letter follows.

James Forrest
Director of Communications
RCMP Veterans’ Association


Dear Members,

I hope this message finds you safe and healthy. The team at Royal LEPage Triomphe(TM) would like to let you know that during these unprecedented times, we’re here to help and support you whenever possible.

Your home being one of your most important investments, you are probably wondering what are the risks related to your investment in these uncertain times. Royal LEPage conducted a market forecast for 2020. Based on the information that we have at this time, the aggregate price of a home in Canada is expected to remain remarkably stable through the COVID-19 pandemic.

If the strict, stay-at-home restrictions characterizing the fight against COVID-19 are eased during the second quarter, prices are expected to end 2020 relatively flat, with the average value of a Canadian home up a modest 1.0 per cent year-over-year, to $653,800. If the current tight restrictions on personal movement are sustained through the summer, the negative economic impact is expected to drive home prices down by 3.0 per cent ($627,900) year-over- year. In December 2019, Royal LePage forecast the national aggregate price to increase 3.2 per cent by the end of 2020. Due to COVID-19, expected price growth has been revised down almost 70 per cent compared to Royal LePage’s base scenario.

“The impact of COVID-19 on the Canadian economy has been swift and violent, with layoffs driving high levels of unemployment across the country. While it is sad that these people skewed strongly to young and to part-time workers, for the housing industry, the impact of these presumably temporary job losses will be limited as these groups are much less likely to buy and sell real estate,” said Phil Soper, president and CEO, Royal LePage. “From our experience with past recessions and real estate downturns, we are not expecting significant year-over-year price changes in 2020. Home price declines occur when the market experiences sustained low sales volume while inventory builds. Currently, the inventory of homes for sale in this country is very low, matching low sales volumes as people respect government mandates to stay at home.

The aggregate price of a home in Canada increased 4.4 per cent to $655,276 in the first quarter. When broken out by housing type, the median price of a two-storey home rose 5.1 per cent year-over-year to $770,005 while the median price of a bungalow and condominium rose 2.1 per cent and 4.4 per cent to $541,040 and $493,917, respectively. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian valuation company.

“If the fight against the coronavirus requires today’s tight stay-at-home mandates to remain in place for several months more, with no semblance of normal business activity allowed, temporary job losses will become permanent and consumer confidence will be harder to repair,” said Soper. “This would place downward pressure on both home sales volumes and prices.

“Equally, if the collective efforts of Canadians slow the spread of the disease to manageable levels, and if promising science and therapeutic drugs are announced, people will return to their jobs, market confidence will bounce back quickly, and we could see Canada’s real markets roar back to life, with 2020 transactions delayed but not eliminated.”

For more information on the current situation, call us at 1-833-215-0228. Mention that you are a member of the RCMP Veteran’s Association and wish to access your preferred rates! You may also visit your dedicated website at: www.realestateFP.com/RCMPVA

Felix Velleneuve
Real Estate Broker
Felixvilleneuve@royallepage.ca
Pauline Chen
Real Estate Broker
paulinechen

 

 

 


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RCMP VETERANS’ ASSOCIATION
P.O. Box 8900
1 Sandridge Road
Canadian Police College
Ottawa, Ontario
K1G 3J2
Canada

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