Economic Downturn Impacts the Housing Market
2020 has been a difficult time for almost everyone. The global economy has been hit with unprecedented peacetime disruption in the wake of COVID-19. Every country in the world is experiencing an economic downturn to a greater or lesser degree.
Closed economies, fewer people out and about, buying items and job losses have had a knock-on effect on the housing market too as people are reluctant to commit to buying a house when they are uncertain about their financial future.
Canadian realtor Team Rice has published a very interesting infographic that shows the extent of the economic impact on the housing market in the Invermere area.
Although total sold properties have risen, the number of new listings is down by 20.59% and that the average number of days between a house going on the market and it selling increased a massive 101% from 73.11 to 147.59 days.
House prices too are falling, with the average sale price down 2.56%. While it’s unknown how long the COVID-19 pandemic is going to impact the economy, most economists are predicting what’s known as a v-shaped recovery, where an economy enters and exits a steep decline fast, rather than a steady climb out of it.
It is not all doom and gloom though, the Canadian economy is predicted to recovery a lot faster than many other economies such as the UK and US. This is in large part down to the Canadian government’s universal income scheme which has allowed businesses and individuals to rebound much quicker.
Take a closer look at the housing market figures here.
Infographic Design By Team Rice Invermere Real Estate Stats for June