Anticipation is building for a spring full of optimism for the Canadian real estate scene following a sixth reduction in interest rates by the Bank of Canada.
Sellers are already responding with the steepest spike in homes-for-sale since the start of Covid.
As experienced real estate agents, we know it always takes a buyer a little longer to join the party.
However, never discount the fact that most owners who decide to sell are also buyers. They will start their buying process once they’ve found someone to purchase their existing property, or they’re super-confident it will happen.
So, a buying bounceback is all but certain.
Many agents say March could be the best buying month because price momentum will likely build later on, for the late spring and summer markets.
Why would they say that?
Firstly, our base interest rate is down to 3% – that’s a 2% drop since last April.
Despite some economic and political concerns, this reduction has inspired confidence in the property market.
At 11%, new listings rose faster in January than we’ve seen in two years. However, buyers are being a little cagey, waiting for an undeniable signal that it’s time to act.
Sales dipped 3.3% in January compared with December, even as the number of homes coming on to the market was rising, according to the Canadian Real Estate Association.
As a consequence, the national composite MLS Home Price Index moved only 0.1% in January.
If you’re looking to make your move now, before the inevitable price recovery, here are some crucial tips.
Regional Variations: Research is critical because national figures will not tell you the entire story. Markets like Toronto and Vancouver have different dynamics to those in Calgary or Halifax.
Quiz Agents: Look at recent sales within a few blocks of the property you’re considering. Good agents will have this data on hand. Micro-level data gives you the best picture of current market values. So, come and talk to one of our agents.
Mortgage Pre-Approval: Getting pre-approved for a mortgage provides clarity on your budget and strengthens your position when making an offer.
Double-Check Costs: Beyond the purchase price, consider additional costs such as land transfer taxes, home inspection fees, legal fees and ongoing property taxes.
Future-Proof: Consider factors like energy efficiency or proximity to planned transit expansions when buying. These features can enhance long-term value and appeal.