Real eState

3 lessons from a cold real estate – Financial Post

Published

2 years ago

June 4, 2022

Harry Miller

The days of bidding wars may be behind us, but what have they taught us?

MoneyWise

James Battiston

tab62 / Shutterstock

The housing market in Canada is cooling down. Home sales between March and April dropped by 12.6%, according to recent data from the Canadian Real Estate Association (CREA).

While home prices may not have experienced quite as significant a drop, the demand for homes appears to be cooling nationwide. If you’re looking to sell your home, it’s important to consider how the new market will impact you.

Selling in a buyer’s market

When thinking of selling your home, it’s invaluable to think of the process as a business transaction. You have a product, your home, that you’re selling to a customer. It’s important to anticipate the customer’s wants, needs and desires and market your product accordingly.

Bradley Watson, host of Toronto’s #1 Real Estate Podcast and a broker and investor in the Greater Toronto Area, notes “very quickly people forgot that there are markets where you have to actually properly market your home, and stage, and be patient for the right buyer.”

More from MoneyWise

At the same time, you need to think about why you’re selling your home. Are you selling to downsize your living space? Are you moving out of town? Are you anticipating making a profit on your home?

Because the market has shifted, potential buyers hold more power than they have in recent history. If you’re selling your home to make a profit, you might want to reconsider your motives.

“What we forget and almost want to not not think about is how challenging it will be to purchase on the other side,” says Watson.

A couple of months ago, you might have seen multiple bids on a property and been able to sell well above your asking price. Now, the current landscape is quite different. With interest rates rising, buyers are more cautious in their approach to buying homes.

“Sellers really have just kind of woken up to the realization that you can’t guarantee a sale,” says Watson.

1. Timing isn’t everything

Timing the real estate market is a gamble. Anticipating market trends is like playing the lottery: yes, there will be winners, but those will be few-and-far between.

If you’re thinking of selling a house, don’t let making a profit be your primary motivation. Sell according to your personal needs, and if you happen to make money, consider it a bonus.

“We have individuals who have committed to purchasing new construction, purchase properties with confidence of selling, who are now kind of struggling,” says Watson. “And we even see people selling, once again, homes for less than they had paid, probably tied back to this affordability challenge.”

Trying to play the real estate market can lead to further disappointment and frustration, especially if you’ve purchased a new home before selling your current residence.

When the market was hot, Watson saw “the confidence of being able to purchase wasn’t there but the confidence to sell was and that made people do something that is kind of in my mind the no-go zone, which is to buy before you sell without confidence in your finances.”

With the market cooling, houses stay on the market longer and sell for less than before. Buying a new, more expensive house before selling your present one may result in you having to float two mortgages for a time or having the new home’s financing fall through.

“Have a game plan in place on how you’re going to close that property in the event we can’t sell your home,” says Watson.

Having a clear value of your home and setting the sale price accordingly can save you headaches. As you attempt to sell your home in a cooling market, don’t anticipate getting multiple offers or selling above asking price.

Watson observes that when selling a home, it’s important for sellers to be aware that problems can arise when closing a sale.

“Really understanding the financial strength of the buyer is more important than ever right now. So that can come in the way of having a nice big fat deposit. But also understanding the financial strength”

2. Shift your expectations

If you’re selling your home, you need to consider the changing attitude toward home sales. While the demand is still there, realtors have witnessed a distinct shift in the market.

No longer are their lineups to view houses and extreme bidding wars on homes. Instead, there seems to be some stabilization.

Sellers are seeing fewer bids, with nowhere near the above-asking prices.

“It’s just the adapting to change,” notes Watson. “Recognizing [that] in a balanced market, you don’t see much price growth, right? So where you maybe saw your neighbour selling $100 or $200 [thousand] in some areas higher… you can’t expect that because that was the product of a very, very tight seller’s market, which we’re not in anymore.”

3. The value of a home inspection

When the market was hot, there wasn’t a lot of room for negotiation when buying a home.

“In the heat of the market, we’re looking at least five or 10 multiple offers and no conditions,” Watson says. “In the hottest areas, we saw financing conditions were gone. Home inspection conditions were pretty much gone.”

“I think there [were] a lot of properties with issues that were sold and buyers just accepted it.”

Alan Carson, founder and CEO of the home inspection company Caron, Dunlop and Associates, has seen how the housing market affected the rate of home inspections.

“Between COVID-19, low interest rates, panic, bidding wars… the demand for home inspections has stayed high among buyers, but the opportunity to get a home inspection has dropped dramatically with it being a crazy seller’s market,” said Carson.

“Buyers were pressured not to put in any conditions in their offer, including for home inspection,” says Carson.

As a seller, you can use a home inspection to your advantage. Having a home inspection performed before you list your house for sale, and including the report for prospective buyers to see, lets you establish a firm asking price for your home. Because there will be no surprises for the buyer, they have less room to negotiate the final price.

Coming off a hot market, it’s important to consider what a more balanced housing market will look like. As you prepare to sell your home, be sure to keep the buyer of the property in mind, as they will ultimately hold more power than they have in the recent past.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Adblock test (Why?)

Source link

Real eState

Two Quebec real estate brokers suspended for using fake bids to drive up prices

Published

4 days ago

September 11, 2024

Anne Joseph

MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.

Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.

Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.

She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.

The two brokers were suspended in May 2023 after La Presse published an article about their practices.

One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.

This report by The Canadian Press was first published Sept. 11, 2024.

Source link

Real eState

Montreal home sales, prices rise in August: real estate board

Published

1 week ago

September 6, 2024

Anne Joseph

MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.

The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.

The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.

The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.

QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.

Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.

This report by The Canadian Press was first published Sept. 6, 2024.

Source link

Real eState

Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis

Published

2 months ago

July 24, 2024

Harry Miller

In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.

Here are the top 10 cities that emerged as the best for renters in 2024:

St. John’s, NL

St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.

Sherbrooke, QC

Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.

Québec City, QC

Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.

Trois-Rivières, QC

Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.

Saguenay, QC

Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.

Granby, QC

Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.

Fredericton, NB

Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.

Saint John, NB

Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.

Saint-Hyacinthe, QC

Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.

Lévis, QC

Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.

This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.

Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.

Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.

For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.

While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.