The economic uncertainty instigated from Washington has dampened the mood of the spring real estate markets in Canada and the United States.
A time of year that’s traditionally associated with optimism and a desire to buy and sell homes across the country has been overshadowed by caution.
While we have never seen an economic twist like the global tariff storm ignited by the US, we have experienced other moments of uncertainty over the years that have affected the property market.
And in these moments, smart buyers identify real estate opportunities that might not have otherwise been available in more predictable times.
In other words, this could be an amazing opportunity to revise your real estate strategy.
The latest data from the Canadian MLS (Multiple Listing Service) shows the market has not experienced its normal spring lift in listings and sales.
The volume of transactions in April barely moved from the March results (-0.1%) and we’re seeing the market operate at levels last seen in the Q3 of 2023. Back then, when our cash rate was at its post-Covid peak of 5%. Currently, the Bank of Canada has set the rate at 2.75%.
Normally, such a significant drop in mortgage costs would ignite the market, but the tariff threats and general economic challenges have made Canadians cautious.
Monthly activity in April was 9.8% below the corresponding period in 2024. New supply declined by 1%.
As an experienced real estate agency, we’ve been through good and bad economic times with our clients. And one truth always shines through – you should transact when it suits your personal circumstances.
Trying to “time the market” is almost impossible because of the time required to sell a home. Once you spot a trend to exploit, that opportunity will probably have passed by the time you settle on your existing property and find your next dream home.
Here are six tips for handling the current market conditions when you are ready to sell:
Be realistic – You’re unlikely to get the price that was possible during the post-Covid boom. But you’ll be able to buy more cheaply, too. It evens out. Be realistic about your home’s current market value, not what it might have been worth three years ago.
Strategic approach – Work closely with your agent. Ask for a Comparative Market Analysis (CMA) report to see sold prices of comparable homes in your area. Ignore the prices people are asking.
Price tactic – Ask your agent about the value of pricing slightly below market value to generate more interest and multiple offers. An overpriced listing can quickly become stale. Ask your agent whether this is a good approach for you.
First impressions – You never get a second chance to make a first impression. The exterior of your home is the first thing a potential buyer sees online and in person. It should be pristine. Ensure you have a well-maintained lawn and garden, and the entryway is bright and inviting.
Staging idea – Staging highlights the best features of your home. Consider commissioning a professional to hire suitable furniture to enhance the visual appeal of your home for marketing photography and buyer visits. In all likelihood, you will have to put your belongings into storage.
Fix the problems – Walk through your home with your agent to identify minor repairs or updates that could detract from a sale. This could include fixing leaky taps, patching holes in walls, a fresh coat of paint or updating light fixtures.
Experience counts – Hire an agent who has a track record of selling homes during tough economic times. You want someone who does “the grind” and will do everything possible to get you a great deal.