A collective “watch and wait” stance has been adopted by property owners as Canada holds its breath for the next installment from the White House.
After the steel tariffs, we now have a 25% levy on our auto industry exports to the United States.
At the time of writing, the world was poised for so-called reciprocal tariffs on items across the economy (due April 2).
In this cauldron, the results of the latest survey of real estate transactions came as no surprise – Canadians paused.
We can all see that Canada – together with Mexico, the European Union and China – are in the cross-hairs of the White House right now.
Consequently, the Canadian Real Estate Association (CREA) reported that February sales dropped 9.8% compared with January. Listings were down, too. They fell 12.7% month-on-month.
Currently, there are almost 150,000 properties for sale across Canada, compared with the long-term average of 174,00.
So, what should you do as a seller and buyer in the current circumstances?
How might you use the current situation either to your advantage, or to at least limit inconvenience?
Here are some observations:
For Buyers:
Negotiation power: If a seller is under pressure to do a deal – that could be for reasons of divorce, health or relocation – you’ll have greater bargaining power.
Wider selection: While listings fell in February, buyer inactivity may see listings start to pile up. This will give you a much greater choice.
Rate falls: Even though the Reserve Bank of Canada has been one of the most aggressive in the West in cutting interest rates, most local pundits predict more reductions by the summer. If they’re right, your spending power will be even stronger.
For Sellers:
Smart pricing: Adapting to market conditions is essential. A great agent will help you find the right pricing level. We’ll be happy to help you. If you over-price, your property will sit on the market for an extended period.
Value focus: While price is a big element of any transaction, your agent should focus on selling the value of your home’s features. Don’t fall into the trap of going straight to a dollar conversation because of extenuating circumstances.
Invest in the deal: Seize buyers’ attention by investing in staging, professional photography and a 3D tour with detailed property descriptions. It adds inherent value to the deal.
Maximise opportunity: If prices are subdued, that’s not entirely bad news if you are going to buy your next property. Upsizers with equity in their home stand to benefit. Bigger homes will be proportionately cheaper than smaller homes. So there’s a silver lining even if you have to compromise a little on the price of your current home.