Koehler also said some of her members were disappointed to see real estate agents listed as an essential service by the province Monday night, since many want to do their part to ensure social distancing is effective at slowing the spread of the virus.
The cooling market comes at an important time of year for the industry. Kim Louie, a local real estate broker with more than a decade of experience, said he makes anywhere from 30 to 50 per cent of his yearly income from transactions completed between February and late May.
He has concern over what the next few months will bring.
“The spring is critical,” he said, adding many realtors are independent contractors with overhead costs that still need to be paid.
Louie has cancelled his open houses and moved to online video chats with clients, but on Monday he attended a showing inside a local condo and the owners requested they wear face masks and not touch anything, including light switches and door handles.
Even if realtors are reluctant to show homes, they’re often at the whim of their clients who may be determined to buy or sell now, Louie said.
While the slowdown has hurt the industry, the government will allow real estate offices to remain open as non-essential businesses are closed.
On Monday evening, the Province of Ontario released a list of 74 essential businesses that are permitted to remain open during the COVID-19 outbreak. Real estate agents, movers and lawyers were among those listed.
This means transactions that have closed in recent weeks, or are on the cusp of closing now, shouldn’t be impacted.
Yet governments around the world are also urging citizens to stay home whenever possible to slow the spread of the disease, and the real estate industry is built on face-to-face contact, Koehler said.
Digital tours and video chats just aren’t the same as touring a property in person.
“People still want to see a property, and we get that, but we also have to be respectful and the sooner we can get past this (virus) the sooner we can get back to being with the public,” Koehler said.
The dip in listings isn’t likely to have an impact on home prices in the short term, some experts believe.
The growth in home values may slow or even plateau, but they’re unlikely to drop — especially since the inventory will remain low as those contemplating selling may choose to wait until the coronavirus uncertainty lifts, according to real estate lawyer Don Travers of Paquette Travers.
“I don’t think we’ll see a giant drop, more of a flatline,” he said.
He does expect that many closing dates will have to be extended as financial institutions and lawyers work through COVID-19 delays.
“There will be some stress on the system and lawyers need to accommodate that,” he said.
Twitter: @JamesDEJ
Twitter: @JamesDEJ
