If you’re a first homebuyer, you’d be forgiven for being mentally exhausted by the endless commentary and predictions of how Canada’s economy will cope with these on-again, off-again tariffs.
Uncertainty is the scourge of decision making, and every real estate agent in the land will be sympathetic to the emotions you’re probably going through.
Any temptation to throw up your arms and declare property-buying all too hard should be resisted, though.
At times like these, there will be precious opportunities that you’ll uncover with diligent research and by engaging with local agents.
Sometimes, owners find themselves in a tough spot and need to sell quickly. Others might be moving cities for a career opening, and they need to cash-out to afford their next home.
You won’t find these opportunities by browsing property websites. You need to engage with agents, building their confidence in your genuine desire to break into the market.
Why? Because on the surface, you might think the property scene has stalled.
The latest figures from the Canadian Real Estate Association (CREA) are sobering and attributed to the tariff fiasco.
It says national home sales fell 4.8% month-over-month in March, and the average sale price is down 3.7% year-on-year.
The number of newly-listed properties moved 3% higher on a month-over-month basis. Meanwhile, the MLS Home Price Index (HPI) declined 1% month-over-month and is down 2.1% compared with last March.
Meanwhile, our interest rate has been cut seven times since June and now sits at an attractive 2.75%.
So, while you’re being told by the Bank of Canada that consumer confidence is down, you can leverage the situation to your advantage.
Anybody can buy a home when prices are sky-high and banks are lending lots of money. It takes a smart buyer to uncover opportunities now.
And with approximately 30,000 properties sold each month across Canada, you’ll be sure to find a great first home if you double-down on your search and shut out the pessimistic noise. Here are six tips to help.
Assess your circumstances – No one is suggesting you act recklessly. Make a judgment on your job security before binding yourself to a mortgage. We don’t want young buyers caught in a terrible debt trap that results in losing their home.
You have power – In a slower market, the balance of power shifts towards buyers. With fewer people actively looking to purchase, sellers may be more willing to negotiate on price and other terms.
Benefit from lower prices – The uncertainty caused by tariff concerns can lead to a softening of home prices. While this isn’t a guarantee across the entire country, it’s worth researching your target areas. Your ideal property might be more affordable now.
No rush – Unlike a fast-paced seller’s market where you might feel pressured to make quick offers, a slower market gives you more time to consider your options.
Bigger choice – The increasing number of homes available gives you a wider range of properties to choose from, increasing the likelihood of finding a home that truly meets your needs.
Long-term value – The current uncertainty will pass. So, focus on purchasing for long-term value. Buying now allows you to start building equity and benefiting from potential future price appreciation.