Amid the concerted program of interest rate cuts over the past 18 months – the official cash rate is down to 2.25% from a 5% post-Covid high – our real estate market is experiencing an erratic recovery that will eventually see values rebound consistently.
The latest data shows the number of home resales increased by 0.9% in October after shocking everyone with a 1.7% drop in September.
A few doubters feared we were heading back to the super-flat market we experienced last March. Thankfully, October’s resale volume is 12% above that blip.
Deal volumes are still slow to move as buyers watch the market carefully against the backdrop of the Bank of Canada recently lowering its benchmark overnight rate by 0.25% from 2.5%.
As an experienced agency, we’ve seen similar market trends come and go. We believe the lower interest rate will soon entice Canadians back into the market with serious intent. The buying opportunities are too good to miss.
The obvious obstacles are the economy and sense of job security. It was good to see unemployment drop from 7.1% to 6.9% in October. However, the reported 1.6% contraction of the economy in Q2 because of falling exports and business investment shows the size of the challenge.
Consequently, the value trend in every region has its own story based on its own economic picture.
Concerns of over-supply are ebbing away in Toronto and Vancouver – our two bellwether markets. Meanwhile, we’re seeing inventory tighter and prices holding up in Manitoba, Quebec, New Brunswick and Nova Scotia. You wouldn’t describe these as seller’s markets, but they’re doing well.
The Royal Bank of Canada said in its recent analysis: “We think it’s still too early to determine whether (the latest data) represent a sustained inflection point, or a temporary pause in a broader downtrend.”
Anecdotal evidence among agents suggests buyer and seller interest is reawakening given the continuing reduction in interest rates.
If you are thinking of either downsizing or upsizing, this is the time to strategise your move.
Below, we’ve listed six tips to prepare your property for sale this winter. They go beyond the standard declutter and depersonalise advice. We hope you find them helpful.
Safety first – In the middle of winter, make sure the path to your door is free of ice and obstacles. Outdoor walkways, steps and the driveway should be shovelled, salted or sanded. This shows the buyer your home is actively maintained and easy to live in.
Welcome mat – In winter, it’s easy for the entrance of your home to become cluttered and messy with shoes and boots. Avoid this scenario by clearing away excess coats, boots, and mitts to maximise space. If you have a mudroom, stage it with built-in storage and hooks.
Warm feeling – Layered, warm lighting in the home makes a huge difference if your buyers are stepping in from a cold, grey day. Turn on every light, including accent lighting, closet lights and lamps. Ensure all windows are spotless to maximise the natural light.
Running costs – Increasingly, homebuyers are asking about utility bills because the price of electricity and gas isn’t getting any cheaper. So, gather the last 12 months of utility bills to summarise running costs.
Focal points – In winter, making your home feel snug and cosy is a winning strategy. Show buyers where they can relax and find comfort during winter. It’s a psychological selling point. If you have a fireplace, fire it up! Stage a nearby area with plush, textured blankets to create an image of a comfortable, warm retreat.
Seal it up – Check for drafts around windows and doors during winter showings, as buyers will see this as a sure sign of high utility costs. Ensure all weather-stripping on exterior doors is new. Check and seal any obvious drafts around window frames.