Is This A Good Time To Buy An Investment Property?

The coronavirus pandemic is a tragic global health crisis that has changed life as we know it, and has had one of the most significant impacts ever on the global economy. As I write this article, it continues to spread and upend people’s lives. I want to be very sensitive to the human nature of this crisis. We probably all know someone who has been personally affected — I’m extremely sad to say that I’ve lost my grandfather to COVID-19. He was a great man and I will miss him dearly.

So it’s no surprise that when talking about investing during this crisis, people are quick to vilify investors and companies that are seeking to profit from this crisis. And real estate investing in this time is often associated with profiting from the suffering or financial struggles of others.

But an alternative view is that real estate buyers, especially now, are necessary to prevent a market collapse. In most cases, buyers are not predatory in nature, and while they are looking for a “good deal,” they are not looking at taking advantage of the misery of others.
Sales Volume Versus Sales Price

Last October, I wrote an article titled, “Recession Talk Is Growing — Is It A Bad Time To Invest In Real Estate?” I couldn’t have predicted this pandemic back then, but a slowdown of the real estate market is something an informed investor should have been preparing for.

Over the last few months, we’ve seen a huge dip in sales volume across Canada and the United States. However, whether you are considering buying a home, selling one or investing, you probably don’t care as much about how many homes are sold in a given market, but rather about the impact the pandemic is having on real estate pricing.