Vacant properties are most popular at the moment, says Edmonton realtor John Carter.
March data on real estate resales in the city only paint a fraction of the pending impact of the COVID-19 pandemic, says the owner of one of Edmonton’s larger realty firms.
“The taps are slowly turning off,” says John Carter, broker/owner of Re/Max River City in Edmonton.
That’s what is currently happening on the ground with his team of agents, who normally do about 2,400 deals a year.
Transactions are still occurring, he adds. “But they’re turning to a trickle.”
What’s more is the recently released March statistics on resale data from the Realtors Association of Edmonton shows only the initial effects of the pandemic, Carter adds.
Edmonton Census Metropolitan Area for March saw sales fall by about 2.5 per cent compared with March 2019, although sales jumped more than 10 per cent from February this year.
New listings increased more than seven per cent from February, but inventory dropped by more than 12 per cent compared with March last year.
“March stats from the association are great and are largely seasonally normal, but they don’t really take into account the effects of the pandemic yet,” Carter says.
Transactions can take several weeks, so published data can lag behind what is occurring on the ground for many agents, he adds.
“(An offer) might have been written and had three to four weeks of conditions that are now firming up.” Carter adds once conditions are accepted, the sale is counted as an official MLS (Multiple Listings Service) transaction that goes into the data.
The official closing of the deal — taking possession — takes more time, and deals can still fall apart.
“We are hearing an increased number of situations with people either not being able to close or choosing not to close.”
By no means are these broken deals making up the lion’s share of what is going on, he adds.
“But we are hearing about increased numbers of those, and that doesn’t get reported in the stats because it will be reported as sold.”
Among the reasons for deals not closing could be buyers losing their jobs, and their lender is then unable to provide funding for the mortgage.
Activity is still going on, though. Carter says two weeks ago his company wrote 23 new transactions and closed 28 deals. At the same time 23 new listings came up.
“That week comparative to last year was still down.”
The firm also saw 24 new listings last week with 16 deals written up, and 24 deals had conditions accepted, which will end up among the MLS statistics for sales.
Carter notes many transactions in the past few weeks have involved new homes or condominiums.
“Vacant property is in highest demand.” Buyers prefer homes that are unoccupied, many with minimal showing decoration if any.
“A lot of people feel more comfortable going into a house that is empty, and there isn’t someone living there,” Carter says.
Despite the challenges, sales will continue in the month ahead because some people must buy and sell, he adds.
“But people really need to be educated and work with a smart realtor who can advise them well and use all the recommended revised health and safety procedures.”
