The big question Canadian homeowners continue to ask about the real estate market focuses on finance rather than the quality of available homes, the best locations or the most profitable areas for investment.
Instead, agents at our brokerage often field questions relating to mortgage costs and when interest rates are likely to come down.
The Royal Bank of Canada has been staring at its crystal ball and giving homeowners valuable insights that should inform their decision to sell or hold onto their properties.
In its most recent housing report, the bank predicts an acceleration in market activity by the middle of the year “or perhaps even sooner”.
“There will be a lot of pent-up demand to satisfy once confidence returns, which could heat things up in a hurry,” it says.
“The larger window of opportunity for buyers is likely to open only after interest rates have dropped materially — something we foresee in late 2024 or into 2025.”
A separate survey suggests 10% of potential buyers would re-enter the market once rates begin to drop. Some 18% of buyers need rates to fall by 0.5%-1% to entice them back.
As an experienced brokerage in your area, we believe owners who want to either upgrade or downsize should start making plans now. It’s already April, and the spring and summer selling season is upon us.
A first cut to interest rates within the next 12 weeks could fire up the market. So, here are six of the best tips from our agents for preparing your home for sale.
It’s not personal – Remove personal items from your home in preparation for buyers. You want them to imagine living in your home rather than feeling like a guest.
Declutter – When a home is cluttered, it feels small and insufficient. So, start putting your belongings into storage from the time you make the decision to sell. Alternatively, sell or give away what you don’t want or need. Ensure your bedroom closets do not overflow with clothes and the kitchen cabinets look spacious.
Fix it – If there are issues around the house or apartment, hire a contractor to fix them all. You don’t want to enter a price negotiation and find yourself arguing over a discount to fix a cracked garden path or flaking grout in the bathroom.
Street appeal – First impressions really matter in real estate. For houses, consider repainting the exterior to give it a fresh appearance. Ensure your garden is well-maintained. If you’re selling an apartment, walk through your front door and imagine what a buyer might see.
Be neutral – A coat of paint inside does wonders. Whether you have a house or apartment, keep your colours neutral. Big, heavy colours can make rooms feel small. You want your home to feel light and bright.
Stage it – Many owners achieve great success by hiring a contractor to stage their home. The specialist will hire furnishings to highlight the best aspects of your property. Usually, you must remove most, if not all, of your own furniture.