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91.6% Sales to New Listings Ratio is ‘Hot’ New Territory for Real Estate in Canada

Published February 22, 2021 by Real Estate Leads

There are always going to be those who discredit anything said about real estate by someone who works in real estate, and often saying they’re a ‘shill’ for their industry and profession. Is that more common coming from someone who’s never engaged in the financial prudence and hard work required to buy a home? Not always, but it still is fairly common unfortunately. There’s a lot of people who are earnestly wishing the ‘very’ hot nature of the real estate market in Canada wasn’t that way at all.

We’ll leave that there, but what we are going to talk about today is how an indisputable statistic recently released from the Bank of Montreal’s economists is proving very clearly that the market is indeed super hot in Canada and that being a homeowner in this country is definitely the way to be. We know that realtors will relate to this, and not only because the majority of them will be homeowners themselves. It is something of a double-edged sword though, and that goes without saying. Real estate can be a well-paying career choice, but a strong market means more and more realtors trying to get that same slice of the pie.

Which is precisely why our online real estate lead generation system here at Real Estate leads is as hyped as it is. It’s great for any realtor who’s willing to invest in an easier way to generate new real estate clients, but it’s especially good for those who are new to the real estate business and need those new clients as part of building a name for themselves in the business. Check out these testimonials from realtors just like you.

But back to our topic for this week, and that sizzling 91.6% number and all the significance behind it.

New Listings Being Absorbed Quickly

New listings fell 13.3 percent in January across Canada, and this brought up the national sales-to-new listings ratio to a number – over 91% – that would have seemed absurd to ever think possible if you would have taken a consensus at this time last year. From one coast to the other, what we’re seeing is that nearly all new listings are getting absorbed within a month and based on projections around that number it can be forecast that the standing inventory of homes available for sale at any time would all be all gone in less than 2 months.

And probably much less. We know that this metric usually is in the vicinity of 60% for the whole country, and so by adding half that number on top of it there’s a situation now where home prices are almost guaranteed to rise further. Prices are indeed currently on the rise nationwide, and are accelerating at quite a rate. The effect is somewhat twofold with this, meaning there becomes a smaller pool of qualified buyers for homes in certain areas. And particularly for detached homes.

But what realtors should be doing with their qualified buyers is telling them to be aggressive with making offers on homes that appeal to them, as what might be an acceptable offer to the current owners at this time might not be in, say, a month’s time given what their realtor might advise them about what their home is worth at that time.

January’s National Home Price Index Rise

Last month the national home price index rose 13.5% year over year, and that amounted to the fastest it has done so since Mid-2017. That date is noteworthy for the following reason – that’s when policymakers were working overtime trying to calm markets in Canada’s two perennially hottest ones – Toronto and Vancouver.

So where we are with all of this is unless there’s a sudden surge of homes listed for sale (which isn’t going to happen in Canada – anywhere – given the fact there’s not enough inventory as it is. People need roofs over their heads) we are going to see prices going higher still.

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Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to only one realtor – and that’s you. You’ll be the only realtor to receive them, and they’ll be for people who live in the same area that you’re working in as a real estate professional and are genuinely ready to make a move in the local real estate market. It’s an excellent way to get more out of your client prospecting efforts, and getting the power of Internet marketing working for you.

Housing Starts May Slow Nationwide Through 2021

Published February 15, 2021 by Real Estate Leads

Real estate and housing development on a National scale are difficult to predict at the best of times, and what we saw last summer and fall once COVID was firmly in place was a very solid example of that. The market didn’t crash like so many people predicted it would, and in fact it’s remained fairly resilient right up and into 2021 as we are here now. We think it’s safe to say that the demand end of the classic equation will always be there, but one that might warranty some concern is related to the supply end of it.

An ample amount of new housing starts are needed to keep this equation where it needs to be for a healthy real estate market, and the needs is magnified in any area of the country seen as desirable by the same prospective homebuyers that real estate agents will be wanting to work with. Those that are newer to the business may find these are trying times, and that’s why our online real estate lead generator here at Real Estate Leads is such an excellent resource for anyone who needs to more out of their client prospecting efforts at a critical time in their young career.

But back to topic, and it does appear that there may be considerably less in the way of new housing starts in Canada throughout the remainder of this year. Let’s have a look at why that might be.

Turbulent Time

While overall it’s true that housing markets in Canada’s major markets look healthy, this year’s turbulence will likely mean fewer housing starts in 2021, according to industry experts. The 3rd quarter of last year (2020) had 237,300 housing starts in all of Canada, according to Canada Mortgage and Housing Corporation statistics.

That worked out to a 22.2% increase from the 2nd quarter that came right before it. Home sales also jumped up 93% during the same period, and prompting a rise in home prices of around 4%. That does indicate a robust economic recovery from the COVID-19 pandemic-induced lockdowns during the spring, but we need to start tempering the enthusiasm starting right there. It seems a deceleration is on the horizon.

The reason this is being forecasted is really quite basic; our sharp economic recovery coincided with the easing of restrictions in the second quarter. Since then, thought, it has stalled and is now expected to be stalling out for the rest of this year. The 2nd wave of COVID-19 that began in the fall along with the unavailability of effective vaccines are principal factors in this hampered growth.

Robust housing demand continued to factor into positives for new home sales and starts through to the end of September. Paired with low inventory and supply bottlenecks meant house prices continued to appreciate. Housing starts will still likely surpass the total for 2019, but new home sales will decrease, and especially in the new condo segment. It’s also likely that despite interest rates being very low and predicted to stay that way, rising home prices will still equal housing affordability troubles and take away from the demand factor to a certain extent.

Region / City Specifics

In Ontario, the 10-year average is about 70,000 housing starts, and last year there were just under that number of starts, primarily on the back of a fairly strong economic performance. This year the expectation is that the pace of projects will be a little bit slower.  More specifically for Ontario and the GTA in particular, reduced immigration will likely cut back on housing demand in Toronto’s condo sector throughout this year, but single-family housing demand will remain strong.

In Montreal housing starts have been resilient this year. Residential construction picked up nicely, in comparison to housing starts that only rose by 1% in the first nine months of 2020. However, new condo sales in the city declined last year and this year, which could result in fewer housing starts after existing projects wind down.

New condo sales in Vancouver were a disappointment for 2020, and that’s not surprisingly worked out to fewer housing starts this year – down 33% to this point. But based on low inventory and healthy demand, housing starts likely will not decline too much through 2021.

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52% Surge for Toronto Real Estate in January

Published February 8, 2021 by Real Estate Leads

One of the nicknames Toronto has is the ‘Big Smoke’. If the numbers for real estate in January are any indication then it would appear apt, as it seems the fire of demand for real estate that closed out last year is burning even stronger to start 2021. Vancouver and Toronto have long been the hottest markets in Canada for obvious reasons, but one of the things that Toronto has had going for it that Vancouver hasn’t is the ability to grow outwards.

However, now it’s become a situation where even that isn’t the mediating factor it used to be. So what’s being seen is that Toronto is having the same acute supply-demand disparity that Vancouver has had pretty much forever. All of this of course added to by constant inflows of people, although not as many last year as year’s previous for obvious reasons.

The surge in the real estate market in Toronto is of course good for realtors, as well as anyone else who’s livelihood is related to the market or any of the many other industries connected to it. If you’re a realtor working there, however, all that benefit is somewhat offset by the fact that the number of people competing for that same slice of the pie makes your profession even more competitive. That’s why our online real estate lead generation system here at Real Estate Leads is such a smart choice for realtors who want every advantage they can get.

But back to topic, it’s a great time to be a homeowner with your property on the market in Toronto.

Condos Leading the Way

The condo market lead the way as Toronto home sales jumped 52.4% year-over-year in January, with 6,928 homes coming to have new owners according to the Toronto Residential Real Estate Board. The average selling price for all homes sold in the region in January also went up 15.5% to $967,885. 

All of this went along with activity in the condo market nearly doubling from this exact time last year, going up 85.5%. Countering that enthusiasm somewhat, however, might be the fact that average selling prices fell 4.7% for January. Sales growth in that category IS outstripping listings growth, however, and that usually suggest an incoming price rebound.

Another factor that’s not mentioned there but could be contributing to lower selling prices is owners who see this as the perfect time to move out of the city being willing to accept slightly lower bids on their homes. Unlikely to happen in most cases, but there could be some of that at play here.

Detached Home Prices Surge Ahead on their Own

Looking now at detached homes, there was no slowing down with sales and prices here. Sales volumes rose nearly 35% and average prices were up around 31% year-over-year in January. The detached segment has proven extremely resilient during the pandemic. The reason for that is the same as in any other major metro area. There is no shortage of city-dwellers who are in search of space and more backyard space to accommodate their families in a time when staying home is what’s on the slate most of the time

One thing that should be mentioned here is that even though the rise in demand and impact of rock-bottom interest rates has definitely helped fuel the boom in prices, these rapid rises have some in the industry concerned that about the growth being unsustainable.

More specifically, the concern is that policymakers have been overstimulating the market as a means of keeping the general economy buoyed during these challenging economic times. That’s perfectly understandable, but nearly any economist will tell you there has to be a balance no matter the scenario. Overly high growth rates that have risen dramatically over short periods of time rarely ever work out as well as certain people would hope they would.

Double-Digit Growth for Immediate Future

The resiliency of the real estate markets in Canada’ big cities continues as strong as ever, and the TRREB is expecting to see double-digit price growth continue for the immediate future. Plus, economic resurgence post-vaccine and supportive demographic trends are probably going to push prices even higher. In line with that belief the board is expecting average home prices to get up and past the $1-million mark for the first time ever sometime this year.

Is that full of promise if you’re a realtor working in Toronto? You’re darn right it is, but keep in mind it’s going to be appealing for exactly the same reason for many people who are just like you.

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Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to one realtor, and one realtor only – you. You’ll be the only realtor to receive them, and these leads will be for prospective sellers or buyers who live in the same region as you and have shown themselves to be genuinely considering making a move in the real estate market.

It’s a proven-effective way to get more out of your client prospecting efforts, and that has to sound plenty good if you’re an ambitious realtor.

‘Sideways’ Real Estate Market a Possibility for Calgary This Year

Published February 1, 2021 by Real Estate Leads

Much has been made of the way how the decline in the oil industry has combined with the economic downturn of COVID to make Alberta doubly hardly hit with a battered economy compared to the rest of Canada. In fact there was an article today that stated how commercial office space in Cowtown may reach up to 30% vacancy rates before long. This of course isn’t good news, as the oil and gas industry has been a major contributor to Canada’s federal coffers for many, many decades now.

Despite all of this, however, there is actually still a net inflow of new residents to the city, and that in part may be because new home prices in Calgary are significantly lower than other major metro areas in the country and there continues to be good work opportunities for people who are new to Canada too. So there’s something of an opposing forces situation here, and it’s creating for what experts call a sideways real estate market.

One that’s not going up, or going down. Instead, it’s going sideways and you’re free to imagine that to the left or right. Whichever’s to your fancy. But what needs to be known here is that if you’re a realtor in Calgary or the surrounding communities one of the best things you can offer to prospective new clients is real genuine knowledge about the changing market and where they might be best investing in it. But of course you need to make those people into your clients before impressing this way, and that’s why our online real estate lead generation system for Canadian realtors is as highly recommended as it is.

But let’s get back to topic, and spell out a little more of what might be on the horizon for residential real estate in Calgary this year.

More Resilient Than You Might Think

Calgary’s housing market followed the rest of the country’s lead during the second half of 2020 in defying the detrimental economic effects of the COVID-19 pandemic, and it turns out that it looks like it’s going to stay fairly resilient for this year.

Local economists and real estate experts are saying thatsome of the momentum recorded at the end of 2020 will continue into 2021, and much of that will be fueled by exceptionally low lending rates and something we’ve talked about at length and is a very real thing – pent up demand.

Sales are expected to rise some 5% on an annual basis in 2021, and the inflow of new residents to Calgary that we talked about early would make this number even higher if these persistent economic challenges growing out of COVID weren’t the factor that they are.

So while it’s true that Calgary is currently saddled with record-high unemployment and that’s on top of the fallout of the oil and gas sector’s downturn in 2014. However, Calgary’s housing market performed above expectations in the second half of last year. So all things considered – a 5% rise won’t be so bad all in all.

Flat is OK – For Now

Even if the Calgary real estate market only stays flat, that’s still a very positive outcome considering what was forecasted to happen to prices in the city. Naturally, homeowners there have the same interest in their equity as Canadians elsewhere do. One thing that has been beneficial is how few listings and low inventory on the market have buoyed it somewhat.

This also might be what’s prevented prices from decreasing in a city that was struggling with joblessness even before the pandemic triggered lockdowns across the country starting about nearly one year ago. If people are selling homes because the homes are priced properly, then there’s reason for optimism and Calgary real estate experts say this is currently the same situation for the most part.

It’s also true, however, that more than a few homeowners are selling their houses for less than they paid for them, and especially if they bought them before 2014. Homes can be found for under $600,000-700,000, but it’s about listings and supply keeping the market relatively balanced. That’s the work of interest rates for the most part.

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Huge Surge in Condo Sales for Toronto Over First 2 Weeks of 2021

Published January 25, 2021 by Real Estate Leads

A few weeks ago we read a very interesting article that stated how smaller nuclear families are coming to terms with the fact that living in a popular major metro area in Canada is going to mean not living in a detached home, unless they experience major income increases or have some sort of windfall of good fortune like a lottery win. The high prices for real estate in popular regions like Vancouver and Toronto is something one just has to accept if you’re going to choose to live there.

But this article talked about how people are adapting to that challenge, and even finding ways to make it work with children living in the home too. Some of these people will be able to move into a more spacious home in the future, but many will be living in a condominium or something similar for the entirety of time they live in these cities. And that’s alright!

We’ve seen how the real estate markets in any city in Canada has been able to weather the economic storm of the last near year, and that’s good news for anyone who’s livelihood is related to the business. It remains as competitive a business as ever, though, and that’s why our online real estate lead generation system here at Real Estate Leads is so highly recommended for realtors who are looking for something of a leg up on their competition in the business.

And as you might expect, there’s always a whole lot more of it if you’re in real estate in a major metro area that’s also categorized as a ‘desirable city’.

But enough about that. We’re in the business of good news when it comes to real estate in Canada, and the following definitely qualifies as good news.

Up 90%

Condo sales in the GTA (Greater Toronto Area) surged 90% year-over-year on the MLS for the first 2 weeks of January. Further, condo listings are up 66% over last year, and there is strong demand for condos in the downtown area of Toronto. All of this builds on the fact that for the second half of 2020 the condo market was fairly sluggish. That was evidenced in prices in the downtown core dipping about 10%. Some investors saw this as an opportunity, but the overall tone was one of trepidation and concerns about prices declining too much and threatening the health of the local real estate market.

All of this was then countered by real changes that actually began early last month, in December of 2021. Condo sales for that month increased by 75.9% year-over-year for the City of Toronto. There may well be all sorts of reasons for why buyers returned to buying condos in Toronto, but all of that likely doesn’t mean much here or to anyone who might be a prospective home buyer (and client as it were).

The fact of the matter is condos are selling well in metro Toronto right now, and that’s good news for realtors in the city and the condo owners who are pleased to see an appreciation of value that’s occurred for their small home in the sky.

Low Rates Meeting Soft Prices

So here we are now with the downtown Toronto condo submarket picking up from where December left off, with many buyers taking advantage of low interest rates and soft condo prices to become new homeowners. What’s also interesting is that market research surveys are indicating that the majority of these buyers are not investors, and rather are buying the condo as a primary residence for themselves.

The investor side of the coin still has to be a part of this; to that end it’s worthwhile to note that with a forecasted 1.2 million newcomers to Canada in the next three years and some 60% of them being economic class, there IS going to be a large demographic that will be looking to rent places to live that are near their workplaces in Canada’s major metro centres.

As if often the case, Q1-2021 may determine what happens for the rest of the year, and if that’s true then it’s going to be a year where many realtors in Toronto and Vancouver are going to have clients that are looking to buy a condo in the city, or sell one.

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Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to only one realtor – YOU. You’ll be the only realtor to receive these leads, and they’ll be leads for would-be clients who are residing in the same city or town where you’re working as a real estate agent. It’s a sure-fire way to get a lot more out of your client prospecting efforts, and the good thing is that the entirety of the work is done for you. See for yourself just how quickly you’ve got new clients after using this real estate agent advantage for Canada.

Seller’s Market? MLS Listings Nationwide May Dwindle in 2021

Published January 18, 2021 by Real Estate Leads

The fact that the Real Estate Market in Canada has proven itself to be very resilient is something we’ve carried into 2021 from last year, and one of the things that’s unfortunately true on the other end of things is that the economic woes of the pandemic are far from over. The continued vitality of the market has been a mix of many factor, but fundamentals are a huge part of it. In particular there’s just not enough housing in many parts of the country, but ever-increasing demand for it. This certainly applies to any major metro area of the country.

The fact here is that the number of new listings on the Canadian MLS (Multiple Listings Service) could be quite paltry this spring, and what is very possible is seeing record demand clashing with record-low supply. You don’t need to be an economics major to know which direction prices go in any such scenario, and given the current ongoing pandemic situation and all sorts of other concerns this really looks like it will be furthering Canada’s housing crisis.

Of course that is something the Federal Government is to address if they’re to earn the enviable salaries they do. The good news for anyone who makes a living in the real estate business or in new home construction is that home prices will increase and there looks to be continuing record numbers of new home starts in Canada as we move through Q1 of 2021. The other side of that coin of course is that fewer MLS listings means fewer of those same listings for working realtors in any city or town in Canada.

Our online real estate lead generation system here at Real Estate Leads comes highly recommended for new realtors for this very reason. While established realtors will likely be better at finding new clients, you’ll have this internet marketing tool working for you to even the playing field a bit.

Watch for Springtime

Industry experts say the smart eyes should be on how many existing owners put their homes up for sale come springtime. We’re already seeing record-setting sales, but it’s also known that demand is much stronger than those numbers suggest because prices are being impacted positively. On January 1st there were fewer than 100,000 residential listings on the Canadian MLS, and it hasn’t been that low for more than three decades now. And if we go back to New Years day just 5 years ago there were 250,000 sales listings on the MLS.

How this plays out within record-high demand and record-low supply to start the year. How that plays out in the sales and price data will depend on how many homes become available to buy in the months ahead. Ideally, we’d like for households to be able to find and acquire the homes that best suit their needs and for housing to remain affordable, but the fact is we’re facing a major supply problem in 2021.”

Sales activity was nevertheless robust in Greater Toronto and Vancouver last month, helping set a national record for the month, according to CREA data. Transactions rose by 7.2% last month from November, but the country’s two most expensive markets witnessed monthly gains of 20%.

Moreover, actual sales activity in Canada surged by 47.2% year-over-year in December—an 11-year high—as CREA recorded more than 12,000 transactions in the country. December also marked the sixth consecutive month of year-on-year sales increases.

In 2020, there were 551,392 home sales recorded in Canada’s MLS, which broke the previous record set in 2016 by 2.3%, for a 12.6% increase over 2019. According to Costa Poulopoulos, CREA’s chair, the national housing market will carry the momentum it has built into this year.

However, as Cathcart alluded to, inventory is dwindling. At the beginning of this month, there were only 2.1 months of inventory nationwide, which is an all-time low, and 29 Ontario markets had under a month’s worth of inventory. “While momentum continues into 2021, surging COVID cases and a return to April-like lockdowns in some provinces means we’ll be revisiting some of those virtual technology solutions to process deals in the first few months of the year,” said Poulopoulos. “Hopefully we’ll have the current wave more under control by the time the spring market rolls around, which is shaping up to be a very active one.”

Condo Sales in Greater Toronto Area Rebounding Strongly to Start 2021

Published January 11, 2021 by Real Estate Leads
Follow That Line – Condo Development Tails Expanded Rapid Transit Infrastructure

Out west here there’s been plenty made about how the condo market has cooled off big time from where it was a year ago before the onset of the Pandemic. People have all sorts of theories about why that’s happened while the market for detached homes has stayed strong here, but in truth it’s likely that so many of them are investor properties where the investment is becoming less of what it once was and owners are responding accordingly.

Both Vancouver and Toronto have always had their market forces altered by the constant influx of immigrants to the country who are extremely qualified home buyers. That’s a good thing, both for the prosperity of the country with these educated and hardworking people as well as the market with maintaining or increasing property values and being an impetus to higher numbers of new housing builds.

All of this is a part of why there’s no better place than these two dense urban areas to be a real estate agent, and why it’s also possibility the worst place for one to be too. There’s valuable properties to be bought and sold, but there’s so many more realtors like you looking for that same piece of the pie. Which is why our online real estate lead generation system for Canada here at Real Estate Leads is such a good choice to get a leg up on your competitors and have more in the way of qualified buyer clients.

But back to topic here, the earliest part of 2021 here has confirmed what we thought we were seeing in late 2020  – that the Condo market in Toronto is bouncing back somewhat after taking the same type of Covid-related hit that Vancouver’s did and continues to experience.

Making the Comeback

So yes, Greater Toronto Area’s condominium market moderated in 2020, but it appears that was only a temporary reality. From Jan to Dec last year, sales declined by 5% compared to 2019, according to the Toronto Regional Real Estate Board (TRREB). However, prices actually increased by 7.1%. in the metro area and in the suburbs prices rose anywhere from 6.3% and 10.2%.

In addition, December was a month that broke records for the GTA’s condo sector. Sales increased by 75.4% year-over-year while the average condo price dipped down by 2%. In Toronto proper, condo sales roared up by 75.9% during the same period, and the only 4.7% average price decline did little to counter the equation. On the outskirts of the GTA and neighbourhoods there sales shot up 74.5% and the average price increased by 6.3%.

Greater Valuations Too

The condo segment of the GTA’s housing market went through a lot of turbulence last year. Through the first five months of 2020, sales went down by 28.1% compared to the January-May period of 2019. Still, the average price increased by 12.1% and that’s very much something that’s not in line with the fundamental laws of supply and demand. So why the rise in valuations?

The Toronto Real Estate Board explains it with one- and two-bedroom condo rental transactions going down by 30.8% and 26.7% on an annual basis, but that number still be a doubling of what they did a month earlier.

What’s likely happening here is that renters have been taking advantage of slightly lower rental rates. And perhaps putting of first-time homebuyer purchases that they would have made otherwise. But again, by the time we were into December sales were surging again and the condo sector was beginning to look like it should in normal times. The good news is that this shows that the  GTA’s market fundamentals are solid and not prone to being fudged or misinterpreted as they might be if it were elsewhere in the country.

Add to this more expensive ground-related homes sold like hotcakes, attesting further that significant number of Torontonians weren’t as hard hit by the pandemic as perhaps originally thought. Which we can likely say is true for the majority of Canadians across the country, and that’s not to make less of the situation of those who haven’t.

However, the economic numbers are in line with those for housing in the two big cities. And that’s a real positive for us that we can lean on when looking at the real estate market in Canada as we inch further into 2021.

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Sign up with Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to only ONE realtor – You. You are the only realtor who will receive them, and these leads will be for folks near you who are genuinely ready to make a move in the local real estate market, and soon. It’s a great way to get more out of all the effort you put into building your real estate business by bringing new clients into the fold.

Our 2021 Canadian Real Estate Market Forecast

Published January 4, 2021 by Real Estate Leads

It’s been said that you have to enter every new year with an optimistic outlook, otherwise you’re doing yourself a disservice. That’s something we can certainly believe in, and most realtors will agree that if you’re going to be in business for yourself you really must have a positive attitude and optimistic outlook. Now it’s fair if the current state of the world and the pandemic means unavoidable pessimism for a lot of people, but we’re going in the opposite direction and you’d do well to come along!

We’ve gone on at length about how absurd it was to suggest that house prices in Canada were going to crash as a result of the pandemic’s economic downturn. The way the market stayed resilient throughout the storm said everything that needed to be said, so we’ll leave that there. A health real estate market is one where house prices seen incremental gains, not the massive jumps that people who can’t get into the housing market regularly complain about. And those are legitimate complaints.

Now if we exclude the Toronto and Vancouver areas where supply and demand economics are pretty much exclusively responsible for housing affordability woes, we in fact have seen incremental gains in housing prices across the country as a whole. That’s the way it should be, and everyone – from homeowners to agents to contractors and the national GDP as a whole – have benefitted from the resilience of our housing market in Canada.

It’s still a tough business to make a go in, however, and that’s why our online real estate lead generations system here at Real Estate Leads is as highly advisable ever here in early 2021 for realtors who need to get more out of their client prospecting efforts. Another big plus for any of them is being explicitly in the know about trends in the Canadian housing market, so let’s use the first post of the year on a 2021 Canadian Real Estate Market Forecast.

Apprehensions Washed Away 

Just 3 months into 2020 and the term ‘uncertainty’ had never been more appropriate for the state of the housing market in the country. Those concerns were legitimate, as there was an initial freeze on the homebuyer front as people were naturally apprehensive. Some were apprehensive for the magnitude of the situation, and others were waiting to see if home prices actually did fall in the way some doomsday types were predicting they would.

This was what lead to the ‘pent up’ demand, as the expression went. Come around September of 2020 the volume of sales was rebounding, and in large part because people who were qualified buyers before the pandemic and were less exposed to the ill effects of it made the move they were always going to make at some point.

And yes, the fact that some many would-be buyers remained qualified buyers is a testament to how many people had taken care of the finances to the point that they were sufficiently insulated against the pandemic’s economic downturns. Of course, everyone hopes that those who lost their employment because of the pandemic find the opportunity to re-establish themselves and return to being qualified buyers if purchasing a home was on the list for them before March of 2020.

Commercial Real Estate in Canada 2021

For decades now Canadian commercial real estate has been viewed as a relatively safe, low-risk investment. These days though, the economic uncertainty and pandemic-driven safety measures like lockdowns, physical distancing regulations and capacity limits have taken a big bite out of the enthusiasm that has always been seen for this market.

Unfortunately, part of the commercial market has been seeing retail stores close their doors due to forced lockdowns. Lost revenue as well as a growing consumer shift to online option is triggering decreased demand for industrial properties.

However, businesses transitioning to a remote workplace are assessing the future need for physical office space and whether or not a shift to a hybrid or entirely remote setting moving forward might be the better choice. Still others will wait to see how society adjusts in the coming months to make these types of decisions.

Then there’s been the role of the Federal Government’s CECRA program in all of this. It’s been very helpful and will have long term positive effects on the health of the commercial real estate market in Canada.

Other good news points for this market are in the fact that Industrial properties and warehouses will continue to thrive as the surge in e-commerce continues, further fuelling the need for these types of spaces.

Residential Real Estate in Canada 2021

Opposite to the way it is with the commercial real estate landscape, residential real estate has always been especially cyclical and exposed to uncertainties and risk. We can start by saying that these who have plenty of investment properties in Canada aren’t nearly as self assured as the primary residence-only homeowners are. The market could still take a turn for the worse based on the slightest factor, and it’s these types of owners who are already feeling the pinch if they own condos in Vancouver or Toronto.

However, the pandemic has certainly added a new level of uneasiness and tightening in the market and the reality is that the fundamentals for market forces in residential real estate do not change. Major cities with ample employment opportunities will always inherit large populations as Canadians, and despite the increasing prevalence of work-from-home there are always going to be plenty who need to live close to where they work.

There is a mixed positive in this, and one thing that we’ll see as a predominant trend in 2021 is a hotter rural residential real estate market. That also stands to really benefit the economies of smaller towns, and have other bigger-picture advantages for all of humanity.

Another huge factor here is going to be if interest rates stay very low the way they did throughout 2020. While that will benefit economic recovery, it has the potential to be a double-edged sword. But if rates are to rise there will definitely be a rush of people looking to buy homes and secure favourable financing for that purchase.

All in all – things are looking good for people ready to enter or move-up in the housing market in Canada, and that bodes well for realtors like you! If you’d like to put some serious power behind your client prospecting efforts then do like a whole lot of other success-minded realtors have and sign up for Real Estate Leads here. It’s a proven effective way to put Internet Marketing approaches to work for you and put you directly in touch with people in your area who are genuinely ready to make a move in the real estate market. Only one realtor will receive these leads – and that’s you!

Why Early 2021 May be the Best Time to Buy a Home in Canada

Published December 28, 2020 by Real Estate Leads

Here we are with just 3 days remaining in 2020, and we’ll skip any and all references to the misfortune that has made this year memorable for all the wrong reasons. We’ve been fortunate to see the real estate market in Canada remain resilient despite the economic struggles resulting from the pandemic, and in fact some places in the country seem to be in an even better place than they were at this time last year when it comes to median home prices.

What’s nice about this is it means that there is increasing value for homeowners to have in their home, and at the other end of the spectrum the Federal Government has introduced the FTHBIA (First Time Home Buyer Income Assistance) program to help people get into the housing market. This then has a positive affect for everyone who works in the business. If it’s a business that YOU are new to as a real estate agent, then we’ll say the same thing again that we’ve said here once a week all year – that our online real estate lead generation service for Canada here at Real Estate Leads is a great choice!

Let’s keep this focused on homes and the real estate market though, and there’s more good news according to industry experts and economists in Canada. Early 2021 may be the best time to buy a home in Canada, and here’s why they’re saying that.

Inventories Rising

There are so many different factors that are going into why there are larger numbers of homes being put onto the market AS A WHOLE in Canada. This doesn’t apply to all cities or locations, but for the country overall there are more homes being listed for sale. Not to the point that the supply and demand equation is anywhere near balanced out, but enough so that there’s a little more in the way of different homes with different features and different price points for people.

Record-Low Interest Rates Continue

Next, there’s the ongoing reality that interest rates continue to be at record lows in Canada. Much of this is by design on the part of the BOC (Bank of Canada) as a means of continuing to stimulate an economic recovery that benefits everyone. In particular, if you’re a prospective homebuyer who has a more the ability to put down a larger down payment on the home than the minimum, then taking advantage of these low interest rates could be hugely beneficial for you.

Getting in Ahead of Economic Recovery and Resumed Demand

We are all anxiously awaiting an economic recovery in this country, and when it comes there will almost certainly be a major uptick in qualified buyers, and this will mean increased competition for homes for sale in Canada. What we can expect to see once this occurs is much more in the way of ‘bidding war’s where homes sell for significantly over asking price. If you’re a would-be buyer who won’t have much in the way of an ability to go above a certain point when it comes to what you’ll pay, then it may be best to make your move in the real estate market sooner rather than later.

Ideal Time for Refitting a Home

Some of you may have clients who will be open to the possibility of buying a home that needs some ‘TLC’, as the expression goes. That means working on the home to improve it and make it either more liveable OR have greater resale value. If that means buying fixtures, appliances, coatings, and pretty much anything and everything else – they may well be paying a much higher price for these items as we get well into 2021.

There IS going to be very serious inflation in the not-too-distant future, and that’s a result of the Federal Government’s massive debt assumption over the last 8 months. Prices on everything will be going up, so keep that in mind if they’ve got their eye on a ‘fixer-upper’ that’s going to need a lot of refits. It may cost them a lot more to restore the home if they don’t do it soon.

Sign up with Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered

Fewer Housing Starts Expected for 2021

Published December 21, 2020 by Real Estate Leads

One of the most upheaval heavy years of all time is drawing to a close here. One thing that a lot of people would not have foreseen in April was how well the real estate industry in Canada would weather the COVID economic downturn as well as it did. Now that it’s late December there’s a lot of looking ahead just a few weeks into the New Year and wondering if we can expect more resilience from it.

Economists are industry experts have already forecasted a rise in median home prices for Canada next year, and that’s good news for homeowners who are looking to see more equity in their homes. And while that should be the opposite for would-be 1st time homebuyers, there is the new Liberal FTHBIA plan that is designed to help people like this get into the market.

There’s also a mixed reality for real estate agents in all of that too, as there’s a balance that’s needed to generate the type of environment where the market and business is good to all equally. Real estate is always going to be a competitive business, and that’s why our online real estate lead generation service for Canada is an excellent resource for realtors who want to be as competitive as they can when building their real estate business.

Recent news about home prices, but other news that there are fewer housing starts expected across the country next year speaks to a different perspective on the national real estate market. 

Potential for Stall Out

Q3 for 2020 saw 237,300 housing starts in all of Canada, and that is a 22.2% increase from the 2nd quarter. Home sales also went up by 93% during this same time frame, bringing home prices up 4%. Those numbers on their own might look promising, but a noticeable deceleration may be just around the corner.

In addition to reduced growth due to the repressing of the economy, we had robust housing demand that continued to rally new home sales and starts until the end of September or so. House price appreciation remained solid because of low inventory and supply bottlenecks.

We should still see housing starts exceeding 2019’s total, but new home sales have decreased and especially in the new condo segment. This should result in fewer housing starts for 2021, and with interest rates staying historically low it’s expected that fewer housing starts are going to be the norm for the next two years. This then connects to rising home prices meaning for affordability woes for some, and – more relevantly to those in the business – softened demand.

There is also the expected additional factors of the government’s massive income support programs winding down and financial institutions tightening credit standards next year.

Slower Pace

Weaker job numbers are expected going into Q1 of next year, and the effects of weaker migration and other underlying economic factors is going to slow the pace of new home builds. For Toronto in particular, it’s predicted that reduced immigration will likely curtail housing demand in Toronto’s condo sector to start 2021. Single-family housing demand should stay strong though.

In Montreal housing starts have been resilient this year, with residential construction in the city rebounding when restrictions were eased. Despite this new housing starts only went up 1% in between January and September 2020.

Condos are always a huge part of the market in metro Vancouver, and new condo sales in Vancouver weren’t good in 2020, and this is going to mean fewer housing starts this year and next year. Resale homes did go up by 17% though, and ongoing low inventory and healthy demand realities will mean there will still be ‘enough’ new housing starts in Vancouver next year to keep this part of the market equation well in place.

One of the most upheaval heavy years of all time is drawing to a close here. One thing that a lot of people would not have foreseen in April was how well the real estate industry in Canada would weather the COVID economic downturn as well as it did. Now that it’s late December there’s a lot of looking ahead just a few weeks into the New Year and wondering if we can expect more resilience from it.

Economists are industry experts have already forecasted a rise in median home prices for Canada next year, and that’s good news for homeowners who are looking to see more equity in their homes. And while that should be the opposite for would-be 1st time homebuyers, there is the new Liberal FTHBIA plan that is designed to help people like this get into the market.

There’s also a mixed reality for real estate agents in all of that too, as there’s a balance that’s needed to generate the type of environment where the market and business is good to all equally. Real estate is always going to be a competitive business, and that’s why our online real estate lead generation service for Canada is an excellent resource for realtors who want to be as competitive as they can when building their real estate business.

Recent news about home prices, but other news that there are fewer housing starts expected across the country next year speaks to a different perspective on the national real estate market. 

Potential for Stall Out

Q3 for 2020 saw 237,300 housing starts in all of Canada, and that is a 22.2% increase from the 2nd quarter. Home sales also went up by 93% during this same time frame, bringing home prices up 4%. Those numbers on their own might look promising, but a noticeable deceleration may be just around the corner.

In addition to reduced growth due to the repressing of the economy, we had robust housing demand that continued to rally new home sales and starts until the end of September or so. House price appreciation remained solid because of low inventory and supply bottlenecks.

We should still see housing starts exceeding 2019’s total, but new home sales have decreased and especially in the new condo segment. This should result in fewer housing starts for 2021, and with interest rates staying historically low it’s expected that fewer housing starts are going to be the norm for the next two years. This then connects to rising home prices meaning for affordability woes for some, and – more relevantly to those in the business – softened demand.

There is also the expected additional factors of the government’s massive income support programs winding down and financial institutions tightening credit standards next year.

Slower Pace

Weaker job numbers are expected going into Q1 of next year, and the effects of weaker migration and other underlying economic factors is going to slow the pace of new home builds. For Toronto in particular, it’s predicted that reduced immigration will likely curtail housing demand in Toronto’s condo sector to start 2021. Single-family housing demand should stay strong though.

In Montreal housing starts have been resilient this year, with residential construction in the city rebounding when restrictions were eased. Despite this new housing starts only went up 1% in between January and September 2020.

Condos are always a huge part of the market in metro Vancouver, and new condo sales in Vancouver weren’t good in 2020, and this is going to mean fewer housing starts this year and next year. Resale homes did go up by 17% though, and ongoing low inventory and healthy demand realities will mean there will still be ‘enough’ new housing starts in Vancouver next year to keep this part of the market equation well in place.

Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered to only one realtor – you! You’ll be the only agent who gets these leads that are for people in your area who have shown themselves to be genuine potential clients. This puts you in touch with them first, and you have the opportunity to advertise yourself as the professional they need to help them with the purchase or sale of a home.