Three cuts in our interest rates now have the Canadian property scene on the brink of a rebound as buyers weigh the benefits of cheaper loans against the backdrop of the nation’s economic performance.
With the prospect of further rate cuts this year and into 2025, it’s little wonder the real estate market is seeing incremental improvements but not a tsunami of buyers. Not yet, anyway.
For owners seeking to sell, this is a time of patience and careful negotiation.
If you need to sell in the short-term, you should price your property to meet the market. The idea that the interest rate has gone up so you can put up your price is misplaced.
Buyers are still concerned about paying too much, fearing that once the recovery gets into full swing they may have paid over the odds.
The median price of a home was $649,100 in August, up by just 0.1% on the corresponding period in 2023.
Many property pundits believe you need a full 1% reduction to sway a market. At the time of writing, our interest rate is 4.25% after three cuts in three months.
A statement from the Canadian Real Estate Association (CREA) supports the 1% view. Its senior economist, Shaun Cathcart, said his organisation’s data found the first three cuts were “not enough to qualify as the start of the show”.
“The bigger picture is a market still stuck in the same holding pattern it’s been in since the beginning of the year,” he said.
Research from one real estate agency has found 16% of Canadians would only jump back into the market if there was a 1% reduction.
Thankfully, that scenario would appear to be around the corner.
Home sales rose 1.3% in August compared to July – the highest level since January. Property listings are up 1.1%.
If you’re considering upgrading or downsizing, it’s time to start making a plan to prepare your existing home for sale, and to line up your finances for your next property adventure.
Here are five quick tips on how to prepare your home so your ready for our property market rebound:
- Price it Right: Overpricing will be a major deterrent to buyers. Price your home competitively to attract interest and potentially spark a bidding war when the market rebounds.
- Do Your Research: Analyse recent sales of similar properties in your area to price your home, and work with your agent as part of the process.
- First Impression: Power-wash the exterior, clean windows, and ensure the front yard is neat and inviting. Fix any visible issues like cracked paths, peeling paint and broken fixtures.
- Depersonalise: Remove personal items, excess furniture, and knick-knacks to make rooms feel more spacious and allow buyers to envision their own belongings in the space. If you repaint, use a neutral colour throughout for consistency.
- Picture It: Invest in professional photography to showcase your home online and in marketing materials. Pay attention to the description of your home and its best features.