This summer has been a time for stabilization in the Canadian real estate market. Home prices levelled out, inventory inched upward, and buyer hesitancy returned to soften sales. Now that summer is almost to an end, what might we see happen in the fall market? Here are the 5 market predictions our real estate experts have their eyes on:

Investors and Buyers to Jump Back Into the Market

Following the spring rebound, national sales began cooling off and declining, that gave new listings a chance to return to healthier levels. Seasonality can somewhat predict the rate of activity in the real estate market and the two hottest seasons tend to be early spring and early fall.

Most people put their homebuying plans on hold in the summer, but buyers – both investors and homebuyers – will be back from the summer hiatus with renewed energy and focus.

With that being said, sales activity for this summer has surpassed last year in most major markets, including Greater Vancouver, Greater Toronto, Calgary, and Hamilton-Burlington. So, although activity has slowed, it is still an improvement from 2022 and an indication that interest rate hikes are not deterring motivated buyers.

Annual Inventory & Sales Growth

Sellers Playing a Waiting Game

In the upcoming fall real estate season, buyers and sellers are displaying differing attitudes and strategies. Buyers are gearing up with renewed vigor, anticipating an active market, but sellers are adopting a more cautious and deliberate approach. Their reluctance stems from several key factors, with the foremost concern being the impending rise in interest rates. The fear that higher borrowing costs may deter potential buyers is causing many homeowners to hesitate when it comes to listing their properties. This sense of uncertainty has prompted sellers to adopt a watchful stance, deferring their listing decisions until they gain greater clarity regarding market reactions to interest rate changes.

Another substantial contributor to sellers' caution is the relative quiet that characterizes the real estate landscape during the summer months. Traditionally, summer tends to witness a slowdown in market activity, as families take vacations and transactions decelerate. This lull, combined with the ambiguity surrounding future price trends, has reinforced sellers' inclination to exercise patience. September, in particular, looms as a pivotal month, offering sellers the opportunity to assess market dynamics. By closely monitoring this period, sellers aim to make well-informed choices about when and how to list their properties, seeking to capitalize on potential surges in buyer demand while carefully considering the impact of rising interest rates.

 No Immediate Improvement for Low Inventory 

New listings in 2023 started to catch up or surpass 2022 levels in many major markets, but it will be a while before inventory issues completely disappear. Rising immigration coupled with increased international student enrolment is especially straining the affordable housing supply in post-secondary cities. A recent report published by the student association representing post-secondary institutions, cited the absence of reliable housing as one of the key concerns for students at the college. 

Active sellers are one ingredient needed to help push supply upwards and that relief may come later in the fall. This continued, historically low supply of homes will keep prices buoyant enough to give some sellers confidence, with new listings likely to peak in October.

Rate Hikes to Impact Condo Supply and Prices

Against the backdrop of rising rents and increased mortgage payments, the popularity of condos is noticeably growing. According to the Greater Vancouver Real Estate Board, condo apartments in the Greater Vancouver Area were the only property type to experience a month-over-month increase in price and at the same time sales increased year-over-year – the largest increase among all property types.

Despite strong demand, high interest rates are putting investors in a difficult situation. Condo investors continue to have a hard time covering carrying costs and they’re not making a profit, which is leading many to sell their investment properties. In turn, we can expect continued inventory growth which will put downward pressure on prices.

Slowdown in Pre-Construction Industry

It’s not only the condo segment that’s struggling with high interest rates; the pre-construction industry is taking a hit as pre-con buyers are seeing values drop, resulting in firesales – that is selling units at significantly lower prices, usually due to financial distress. According to the Canadian Home Builders’ Association, 22% of Canadian homebuilders cancelled projects in the second quarter of 2023. As borrowing rates have continued to rise since then, it’s likely this figure will continue to increase.

Pre-con buyers are walking away from deposits and taking losses to avoid closing. Some are simply handing the units back to the builders and the builders are reselling them at a discount. This may lead to developers even leaving some projects unfinished due to labour shortages, the rising costs of materials and current mortgage rate conditions.

Buyers interested in pre-construction homes should work carefully with a real estate agent who has knowledge about the specific project in order to ensure a good and secure deal.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source: RE/MAX

So, you've decided to change your housing situation! That's a big step, but now comes the next important decision you need to make: What Realtor® do you choose to help you move into the next stage of your life?

Finding the perfect home or selling your property in Vancouver’s dynamic real estate market can be a challenging process. While the prospect may seem daunting, a skilled real estate agent can make the difference between an overwhelming experience and a successful, smooth transaction. But how do you go about finding a Realtor who can meet your specific needs and provide you with the best service?

Michael Cowling, a prolific Richmond, Greater Vancouver-based Realtor and the owner of RE/MAX Michael Cowling and Associates Realty, has years of experience working with countless clients and other Realtors in Greater Vancouver. In his opinion:

"In the bustling real estate landscape of Greater Vancouver, finding the right Realtor is not a decision to be made lightly. Just as an explorer wouldn't embark on a journey with an untested guide, you shouldn't navigate Greater Vancouver's dynamic property market without a seasoned professional by your side.

A dedicated Realtor not only understands the unique intricacies of our city's market but also anticipates challenges and opportunities tailored to their client’s specific needs. This journey, whether you're purchasing a new home or selling a property, demands expertise, dedication, and a deep-rooted understanding of Greater Vancouver's vibrant real estate tapestry."

Identify Your Needs

Whether you're a first-time buyer, an experienced investor, or looking to sell your property, it's crucial to identify your specific needs before starting your search for a Realtor. Are you looking for a family home, an investment property, or a commercial building? Do you need help with selling a high-end condo or a bungalow? Each situation requires unique expertise, which is why there are Realtors who specialize in different property types and markets.

Additionally, consider your timeline and budget, as these factors can greatly influence the process and the kind of agent who will be most helpful. The Greater Vancouver real estate market isn't a monolith, and things can vary widely between neighbourhoods.

Harness the Power of Word-of-Mouth and Referrals

In the dynamic world of real estate, personal recommendations are often a key to unlocking the ideal Realtor partnership. Trustworthy word-of-mouth referrals from those within your circle — friends, family, and colleagues — can provide an abundance of valuable insight.

Not only can these trusted sources recount their first-hand experiences, but they can also offer a candid assessment of a Realtor's attributes. They can shed light on the Realtor's professionalism, communication style, negotiation prowess, and, most importantly, their unwavering commitment to putting clients first.

 Moreover, they can provide insights into a Realtor's responsiveness — how promptly they returned calls or emails, how effectively they understood and catered to unique needs, and if they were adept at securing beneficial deals.

Research

Though word-of-mouth and personal referrals continue to play a significant role in finding a Realtor, the advent of online reviews and research tools has revolutionized the way people approach their search.

Start by investigating various agents and agencies within the local area. Online platforms like REALTOR.ca are an excellent starting point for finding registered agents in your area. These websites often feature agent profiles, reviews, and ratings which can help you gather preliminary insights. On top of that, you can often find third-party reviews by searching the name of an agent on Google.

You can also use social media platforms to gauge how agents present and market their listings. Personal referrals are another great source of information. Friends, family, or colleagues who have recently bought or sold properties can provide first-hand insights into an agent's work ethic, performance, and reliability.

Check Credentials

Agents operating in Greater Vancouver must be registered with the British Columbia Financial Services Authority (BCFSA). Therefore, ensure your prospective agent holds a valid BCFSA license. This not only verifies their qualifications but also reassures you of their adherence to BC's professional standards and guidelines.

An agent's affiliation with local real estate boards or national associations like the Canadian Real Estate Association (CREA) is also a mark of their commitment to their profession. In Greater Vancouver, the real estate market is very hot, and countless people are trying to edge their way in as "experts" or "professionals" without the credentials to back their claims. You want and need someone who has put in the legwork to become a professional Realtor.

Experience and Market Knowledge

Experience often correlates with a strong understanding of the local market, so look for agents who have been working in your area of interest for several years.

Agents with extensive experience in your property type will likely have a deep understanding of pricing, marketing strategies, and negotiation tactics that work best. Ask about their recent sales and how these properties compare to yours. Double-check that against the listings you can find online. Their knowledge of the local community, schools, amenities, and future development plans can also be valuable in helping you make informed decisions.

That said, it's also important to remember that experience isn't everything. Just because someone is a newly minted Realtor without many sales to their name doesn't mean that they aren't worth a look. Often, these new Realtors can be "hungry" and eager to prove themselves, working tirelessly to sell your home or find you the home of your dreams. They also might have fewer current clients, meaning they can give you more personalized and attentive service. So long as they have done the research, have the necessary knowledge, and are at a reputable brokerage, you can likely trust them to do the job. Everyone needs to start somewhere!

Michael Cowling, someone with a tremendous amount of experience mentoring new Realtors in the wild world of Greater Vancouver real estate, has this to say about taking on a newcomer Realtor:

"Working with a new Realtor in Greater Vancouver's market can be a breath of fresh air. While they might be newer to the scene, their enthusiasm and fresh perspectives often translate into a tireless dedication. They want to prove themselves!

It's essential to remember that every seasoned professional once started as a newcomer. With the right mentorship and a commitment to learning things we always look for when beginning new Realtors into our brokerage, they can introduce innovative approaches that reinvigorate the buying or selling experience. So, before making a judgment, give new Realtors an opportunity. Their passion, combined with the intricacies of Greater Vancouver's real estate, might just be the perfect blend for success."

Interview Potential Agents

Some good general advice is that you should never hire a Realtor sight unseen.

Once you've made a shortlist of potential agents, arrange face-to-face meetings. These interviews allow you to assess each agent's communication skills, professionalism, and dedication.

This is also a perfect opportunity to gauge their knowledge of the current market trends in greater Vancouver, their marketing strategies, and their ability to negotiate effectively. Don't hesitate to ask about their fees and commission structure. Ensure their availability matches your schedule, especially if you have limited flexibility.

Trust Your Gut

Honestly, the most important strategy when looking for a Realtor is to trust your gut.

Real estate transactions can be intricate, emotional, and often one of the biggest financial decisions you'll make in your life. Therefore, you need to work with someone you trust. During your interviews, consider all of the above factors, and then ask yourself, "Is this the person I want to work with?" A good agent should not pressure you but will provide you with all the information you need to make informed decisions. They should make you feel confident and comfortable, reflecting a partnership based on trust and mutual respect.

Forge a Long-Term Partnership with Your Realtor

Embarking on your real estate journey with the right Realtor can be akin to discovering a reliable companion for your future property pursuits. Imagine having a go-to expert the next time you wish to sell your residence or hunt for that perfect investment opportunity!

Brokerages thrive on nurturing enduring relationships with their clientele. That's why they should always push boundaries to exceed client expectations. By showcasing profound local insights, catering to their client needs, and prioritizing their best interests, brokerages and Realtors can cultivate trust and loyalty that results in repeat patronage.

Michael Cowling has experienced the rewards of this long-term approach firsthand. He has collaborated with numerous clients repeatedly, fostering enduring professional bonds spanning many years. Here's what he shares about the tremendous advantages of partnering with the same Realtor over time:

"The value of long-term in any industry cannot be overstated, but it’s especially important for Realtors. We view each transaction as more than just a deal; it's an opportunity to lay the foundation for a lasting partnership.

Over time, these sustained engagements allow professionals to better understand and anticipate the evolving needs of their clients. There is no need to get up to speed about a client’s preference because you’ve already worked with them. This commitment to continuity, trust, and mutual respect not only enhances the client experience, but also solidifies a Realtor's or brokerage's reputation in the industry."

Conclusion

Remember, choosing the right real estate agent is not an overnight decision. It's a process that requires careful consideration, research, and intuition. The perfect agent for you is out there who understands your needs, knows the market inside out, and can guide you effectively through Greater Vancouver’s diverse real estate market.

Take your time, follow these steps, and you'll find an agent who can turn your real estate goals into a reality.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source: Kim B

One of the most significant decisions in life is whether to buy a home or rent one. Both options have their advantages and disadvantages, and the choice ultimately depends on various personal, financial, and lifestyle factors. As a real estate agent, I often encounter clients grappling with this decision. In this blog, we will explore the pros and cons of buying a home versus renting, helping you make an informed choice that aligns with your needs and aspirations.

The Advantages of Buying a Home

1. Building Equity: One of the most compelling reasons to buy a home is the opportunity to build equity. As you make mortgage payments, you are gradually paying off the loan, which means you are building ownership in the property. Over time, your home could appreciate in value, allowing you to build wealth and potentially gain a return on investment if you decide to sell.

2. Stability and Freedom: Owning a home provides a sense of stability and the freedom to make it your own. Unlike renting, where you might be limited by landlord rules, homeownership allows you to customize your space, paint walls, renovate, and create a place that truly reflects your style and preferences.

3. Tax Benefits: Homeownership can offer tax advantages, including tax free appreciation on principal residence, deductions for mortgage interest on investment properties, property taxes, and certain home-related expenses. These tax benefits can help reduce your overall tax liability and contribute to long-term savings.

4. Investment Potential: Real estate has historically been a solid investment. If the housing market is strong and property values rise, your home's value may increase, giving you the potential to make a profit when you sell.

The Advantages of Renting

1. Flexibility: Renting provides greater flexibility and mobility. If you are unsure about your long-term plans or expect to move frequently due to work or personal reasons, renting allows you to easily relocate without the burden of selling a property.

2. Lower Initial Costs: Renting typically requires a smaller upfront investment compared to buying a home. You avoid costs such as a down payment, closing costs, and potential home maintenance expenses, which can be substantial.

3. Limited Financial Risk: When you rent, you are not responsible for major repairs and maintenance costs. If something breaks down or needs repair, it is usually the landlord's responsibility to fix it, saving you from unexpected expenses.

4. Access to Amenities: Rental properties, especially in apartment complexes or gated communities, often come with access to amenities such as swimming pools, gyms, and communal spaces. These extras can enhance your quality of life without the added expense.

Factors to Consider When Making a Decision

1. Financial Situation: Consider your financial health, including your savings, income stability, and credit score. Buying a home requires a more substantial financial commitment, so ensure you are prepared for the long-term financial responsibility.

2. Long-term Plans: Analyze your life goals and plans. If you anticipate living in an area for a short period, renting might be the better option. On the other hand, if you are looking for stability and a long-term residence, buying a home might be more suitable.

3. Market Conditions: Study the real estate market in your desired location. In some areas, renting may be more cost-effective than buying due to high property prices and low rental rates. In contrast, in other regions, buying might make more financial sense.

4. Lifestyle Preferences: Consider your lifestyle and priorities. Homeownership can provide stability and the freedom to customize, while renting offers flexibility and reduced responsibilities.

Conclusion

The decision to buy a home or rent one is a crucial choice that can significantly impact your finances and lifestyle. Assess your financial situation, long-term plans, and personal preferences before making a decision. As a real estate agent, my role is to assist you in understanding the real estate market, guiding you through the buying or renting process, and helping you find the best option that suits your needs and aspirations. Whether you choose to buy or rent, remember that finding a place to call home is an exciting journey, and I am here to support you every step of the way. Happy house hunting!

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today! 

A higher interest rate environment and lack of inventory will continue to weigh on the housing market in the fall, according to a new Re/Max housing market outlook report, with average home prices in Canada expected to remain flat for the rest of 2023.

The report said interest rates and inventory levels will likely result in a softer market for the remainder of the year, something some Canadians may look to take advantage of going into 2024, says Re/Max Canada president Christopher Alexander.

“If the fall market is an early indicator for 2024 activity, we may see a very active first quarter as buyers and sellers take advantage of easing prices into the earlier part of next year,” he said in a statement.

“While we wait for governments to implement a tangible national housing strategy to boost Canada’s supply of both affordable and diverse housing, the market is starting to ease in some regions. This is bringing some much-needed relief from the sky-high prices we’ve experienced over the past couple of years.”

Still, while the national average home price is expected to be flat, some regions across the country will not see reprieve from higher prices. The report estimates that 44 per cent of housing markets in Canada are expected to be sellers’ markets through the remainder of the year, while the rest are a mix of balanced and buyers' markets.

Many prospective buyers and sellers appear to be waiting on the sidelines to see how the interest rate environment plays out. According to a Leger survey commissioned by Re/Max as part of the report, 33 per cent of Canadians interested in buying or selling a home in the next 12 months said they would wait to see how interest rate changes play out before buying.

Where home prices will rise and fall across Canada

In Western Canada, the majority of markets are expected to see average residential sale prices to increase in the fall by between 0.7 per cent and 4.5 per cent. The regions that are expected to see price increases include Calgary, Edmonton, Red Deer and Winnipeg. At the same time, the Greater Vancouver Area and Kelowna in B.C. are expected to see sales soften by between two and three per cent.

In Ontario, 53 per cent of the market will likely be sellers' markets through the fall, while 40 per cent will be balanced and just seven per cent are expected to be buyers' markets. Areas that are expected to see prices rise include Burlington (up 1 per cent), Lakelands and Oakville (up 2 per cent), York Region (up 2.2 per cent), the Greater Toronto Area (up 2.5 per cent) and Sudbury (up 5 per cent.) Seven regions are expected to see home prices decrease through the rest of the year, including Hamilton, Ottawa and Windsor (down 2 per cent), North Bay (down 3 per cent), Kitchener-Waterloo (down 4 per cent), Durham Region and Peterborough (down 5 per cent).

 In Atlantic Canada, Halifax and the Charlottetown Area will see prices fall between one and two per cent, while prices are expected to increase three per cent in Moncton. Most markets in the region are considered sellers’ markets, Re/Max said, with the exception of Charlottetown which is considered balanced.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today! 

Source:Yahoo News 

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