Home prices have shown an initial resilience in the face of economic threats and actions from Washington.
Prices slipped just 0.8% in February as buyers increased their caution and sellers decided that perhaps this was a good time to hold onto their properties.
Uncertainty, however, can be your friend in the property market.
It can be good news for first homebuyers who currently complain of high prices. It’s also a time of opportunity for upsizers.
While they may not achieve their price expectation for their own home, they stand to benefit from a larger discount when upgrading to a bigger house or apartment.
Of course, a key consideration is how your own personal circumstances might be affected by Canada’s current economic situation.
If you’re confident of your own position, then the hiatus in the property market may play in your favour.
Our MLS Composite Index has highlighted where discount opportunities exist. Ontario is down 1.3%, according to the MLS Home Price Index. Toronto edged back 1.5%. Vancouver has slipped 0.6%.
The Royal Bank of Canada said it expected prices to be subdued – offering buyers new opportunities – during the current period of uncertainty.
The pullback in demand last month was concentrated in Ontario and British Columbia, where affordability challenges are more acute.
The tone of concern, at least in the realm of real estate, is not evident across the entire nation. We’re seeing strong results in Saskatchewan and Edmonton. Demand continues in Alberta and Calgary.
If you want to catch the late spring and summer selling seasons, talk to an agent about how to approach the market. We’d be delighted to help you.
In the meantime, here are five recommended approaches:
Be Watchful: Monitor changes in interest rates and pay close attention to economic performance and inflation figures. Government policies relating to housing and finance can affect the market.
Seek Advice: While no one could ever claim to have all the answers, experienced agents have seen the market at its highest and lowest points. Together with your financial adviser, it’s worth having in-depth conversations about how to respond to the current climate.
Price realistically: It’s crucial to price properties strategically in a slowing market. Overpricing can lead to homes sitting on the market for extended periods. Be prepared to adjust pricing based on changing market conditions.
Upsizer benefit: Don’t lose sight of the fact that if your price is down, then all prices are down. If you intend to buy another property, you’re going to benefit from a discounted environment. In other words, you’re not really going to lose. Indeed, if you’re upgrading, you may come out a few dollars ahead.
Prioritise the personal: Trying to wrangle the market to your will rarely works out. You should only ever make a move when you are ready. Your primary consideration should be your personal situation.
NOTE: The information in this article is general in nature and provided as a market overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.