Our real estate market is entering its next phase with cautious optimism, driven by factors such as cooling interest rates, strong supply and deal numbers in the past three months that have been the best for four years.
Yet, the recovery is not uniform with regional differences and lingering affordability concerns influencing buyer behaviour.
The unpredictable behaviour of our neighbour to the south doesn’t help matters. The additional 10% tariff over that advertisement featuring Ronald Reagan will do nothing to inspire the market.
That aside, the overall picture is held back by cities such as Toronto and Vancouver, which saw prices spike thanks to plummeting interest rates during the Covid-era.
Today, only the most stressed owners in those cities will sell at a loss, and that means buyers are struggling to afford the prices being asked.
With the Canadian Real Estate Association (CREA) predicting “further upward momentum” into 2026, sellers need a more nuanced strategy to maximise the value of their home.
Here are seven ideas:
Be price savvy – There is no need to undervalue your home simply to attract buyers. Watch price trends carefully and work with your agent to ensure your expectations are tempered by true market values. With plenty of choice, buyers will walk past an overpriced home.
Highlight rate falls – The Bank of Canada’s recent decision to reduce the benchmark interest rate to 2.5% is a significant motivator for buyers. Your marketing materials should highlight this change. Frame the home’s value in terms of its affordability.
Focus on local – While the national trend is upward, lower sales numbers have been recorded in the key markets of Vancouver, Ottawa, Calgary and Edmonton. So, it’s important for you to understand the trajectory of your neighbourhood rather than the national narrative. A hyper-local strategy trumps national data.
Prepare for volatility – The economy still faces significant challenges, so be prepared for good and bad news. Don’t panic and drop your price after one slow week. Stay patient even though the market is susceptible to the occasional surprise and external shock.
Optimise your listing – Many upsizers have stalled their plans to move for months if not years. So, they’ve had plenty of time to think about the type of property they want next. Ensure your home is styled and move-in ready to appeal to motivated but cautious buyers.
Prudent negotiation – If an offer doesn’t meet your expectations, you can probably wait for a better bid because the market is beginning to recover. However, you do need to be patient and hold your nerve.
Be flexible – If your local neighbourhood is under pressure from falling prices – usually due to over-supply – you’re going to need to adapt if you need to sell. You can embrace a lower price point to stimulate demand and perhaps create a bidding war between two or more buyers. Also, be open to longer closing dates or other contract terms that help a buyer secure financing.