The struggle to balance affordability and amenities has been at the forefront of buyer prerogatives across the country in 2017, and it would appear that’s going to continue into 2018. While that’s far from a rosy outlook for many buyers in Canada, it’s worth noting that it’s a trend that’s very pronounced in nearly every developed country in the world these days. Realities are just that – reality – and the most successful and satisfied buyers will be those that arm themselves with as much information as possible and then work within the current market.

Here at Real Estate Leads, our online real estate lead generation system has been especially well received through 2017, and we hope that continues into next year. The best real estate agents are those who are always working to be explicitly in the know regarding the market their clients are working within, and as such it’s always advisable to have a sound understanding of where home prices are going across the country.

Let’s take a look at what’s predicted in that regard for 2018, as it’s just around the corner.

GTA and GVA Continue to be Priciest

2017 had single-family detached home and condo markets diverging on distinctly different paths in Canada’s two priciest real estate markets, the Greater Vancouver and Greater Toronto Areas. The trend is expected to continue into 2018 as a mix of relative affordability for condo units has paired with price appreciation for detached homes to nudge many buyers toward condo ownership rather than looking for detached homes.

Vancouver

• Demand for condos continues to outpace supply, resulting in the average price of a condo rising an estimated 16% year-over-year, from $553,604 in 2016 to $643,778 in 2017. There’s no reason to assume anything will buck this trend as we look to 2018.

Toronto

• The GTA’s condo market saw price appreciation of 22% in 2017, as the average sale price for a condo rose to an estimated $523,437 in 2017, up from $429,241in 2016. What’s noteworthy here is the lack of stability in comparison to Greater Vancouver, with prices up a significant 8% in the GTA for 2017.

The single-family detached home segment of the market in both cities has been most significantly impacted by recent provincial government policy changes designed to slow the record-setting price appreciation in those regions over the last few years. Any constraint on the buying of detached homes, however, seems to be refocused on condominiums.

The majority of brokers from key real estate markets across Canada are expecting the average home price in Canada to increase 2.5% in 2018.

This of course suggests that the appetite for home ownership remains strong with roughly half of Canadians. Stats indicate that 48% of citizens are considering the purchase of a home in the next five years, and primarily for one of three reasons:

• To upgrade their current home
• To purchase a starter home as a means of entering the housing market
• To upsize from their current home to accommodate a change in family make-up

Another primary and ever-more common consideration for buyers is access to outdoor spaces with their new home. Green spaces are important, as is having a backyard for many.

Many buyers are continuing to look at real estate markets outside of the country’s largest urban centres to find a balance between the home features they’re after and what they’re able to afford. These ‘move-over’ buyers as they’re called are leaving the GTA and GVA and contributing to increased demand and considerable year-over-year average price increases in the following cities most prominently:

• Kelowna (9 %)
• London-St. Thomas (18%)
• Hamilton-Burlington (15%)
• Barrie (19%)
• Durham Region (19%)
• Niagara (23%)
• Kingston (8%)
• Ottawa (9%)

For Ontario in particular, much of the activity in regional markets has been fuelled by price appreciation in Toronto during the first four months of the year prior to the introduction of the provincial government’s Fair Housing Plan.

The new OSFI mortgage qualification rules that come into effect on January 1, 2018 are also noteworthy. They’ve impacted housing market activity toward the end of this year and are expected to slow activity in real estate markets across Canada in the first part of 2018. Suburban regions around major metro centres have and will continue to see increased demand resulting from this.

Some interesting statistics related to the average house prices and the way they correlate with owner / buyer / seller demographics across the country:

66% of Canadians are homeowners

• British Columbia: 62%
• Alberta: 78%
• Saskatchewan and Manitoba: 69%
• Ontario: 68%
• Quebec: 60%
• Atlantic Canada: 65%

48% of Canadians are considering purchasing a home in the next 5 years

British Columbia: 51%

Alberta: 60%

Saskatchewan and Manitoba: 43%

Ontario: 50%

Quebec: 40%

Atlantic Canada: 38%

90% of Canadian households with children would prefer to live in a home with a backyard and 79% would prefer to live in a single-family detached home compared to other property types

73% of Canadians would prefer to live in a detached home compared to the just 27% that prefer a townhome and 24% that would prefer a condo

37% of Canadians are not aware of the OSFI stress test regulation changes, or how they will affect their ability to purchase properties in the future

58% of Canadians are aware of the new OSFI stress test regulations. Of this group that is aware of the changes:

• 27% don’t believe it will impact the type of property they purchase in the future
• 18% believe it will impact the type of property they purchase in the future
• 13% are unsure of how the new regulations will affect their ability to purchase a property

For the full 2018 RE/MAX Housing Market Outlook report, click here.
Sign up with Real Estate Leads here and receive an monthly quota of qualified, online-generated buyer and seller leads delivered to you exclusively and for your exclusive region of the country. It’s a great way to supercharge your prospecting efforts, and we image that that’s going to be one of your forefront resolutions for the new year regarding your real estate business.

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2017 is drawing to a close and the promise of a brand new calendar year is looking mighty appealing to real estate agents right across the country. While we imagine that the previous year has treated you well as regards your business, we’ll also assume that you’re never one to be satisfied or rest on your laurels. That’s the mark of an ambitious professional, and to be admired

Here at Real Estate Leads, we’ve had even more agents get onboard with our online real estate lead generation system this year and we’re very happy to have them here. Being able to have these leads delivered exclusively to these specific agents is obviously very appealing, and why wouldn’t it be? This is a competitive industry to be sure, and any advantage available should be taken.

Ebbs and flows in the industry are to be expected. As we look ahead to 2018, we find it interesting to note that a few elements are at the forefront as agents foresee a need to sharpen their skillset in order to compete in this ever-changing real estate business landscape.

It’s well understood that when the real estate market turns, a good half of the agents exit with it. Being successful as a real estate agent requires resiliency. Many will agree with the belief that any downturn in the market will ‘weed out’ a good many of the agents who entered the business for the wrong reasons.

Independent of what stage you’re at in your career, real estate is a notoriously competitive industry. Most industry experts have a consensus opinion on what’s on the horizon next year, and here are 4 trends that are at the forefront of these predictions.

1. Specialist vs. Generalist: Know Who You Are

In recent years, it’s become ever more true that the best agents differentiate themselves by specializing, and then paying attention to the small nuances that most others leave out. With the fact there’s so much diversity in the housing market along with an ever-increasing blend of demographics to target, you really need to put as much effort and introspection into deterring ‘who’ you are as an agent.

Paying attention to the finer details can help set you apart in a crowded marketplace. A whole host of factors – where you’re doing the bulk of your business, the primary resident demographic there, etc. etc. – should factor in quite strongly as you define yourself. There’s no better time than the present to reinvent yourself if it means advancing your career, and that’s especially true right now moving into the new year.

2. Focusing on Building Your Digital Brand Will Bring Results

Building your digital brand involves showing off the portfolio of work you’ve built up online. Now more than ever, prospective clients go online to evaluate you and your collection of properties transacted, and the breadcrumbs of information you leave for them is very important.

That’s because they help buyers and sellers make informed decisions, and make them in full confidence with your quality of work and a sense of who you are. A strong, consistent and authentic online presence will help put some distance between you and your competition. We are very much living in the information age, and you need to build and maintain your digital brand and identity to the best of your ability. Aim for educational, inspiring or entertaining bits of content, and once you’ve built that momentum you need to keep it rolling month after month.

Some ideas in this regard:

• Developing infographics on key stats regarding current market conditions.
• Creating a step-by-step guide for first time homebuyers on what to know.
• Building an eBook outlining everything to know if you’re selling your home.
• Leveraging Instagram stories for open houses.
• Using Instagram’s scrolling feature to highlight professional photography
• Blog on how Millennials can make a splash into the market, and not become house poor.

3. Harness the New and Considerable Power of Millennials and Generation Z

This is related to the last point above. Indeed, so much has been written about ‘Millenials’, so decoding them isn’t as complex as we might think it to be. Surveys indicate they’re 40% more likely to stay in touch with their agent, and 55% more likely to recommend their agent in comparison to older generations. This of course is entirely dependent on their experience being a positive one.

As regards their younger cohort – Generation Z (born after 1995) we need to first keep in mind that Generation Z is expected to include 2.56 billion people worldwide by 2020. That represents a mammoth amount of consumer power, and not a lot of agents are prepared to accommodate that or the buyer dispositions that will come with it. Add the fact this is a lucrative age bracket that will be flooding the housing market in waves and you really want to be the early bird on the worm when it comes to understanding how they’ll view and purchase real estate.

4. Networks Will Be Determining Net Worth

The Vancouver housing market is a good example here. It received international headlines on account of its inflated numbers that raised speculation that a bubble was about to burst. In a crowded market where some agents might only enjoy a pair of deals a year, it shows how valuable it can be to tap into networks for referrals.

All of this is dependent on a strong sphere of influence.

It stands to be your most valuable resource as an agent, and the engine behind your strongest personal and professional relationships within your career. If your SOI extends to 100 people and each of them knows 100 people, that equates to 10,000 opportunities for repeat and referral business.

Indeed, that’s a big deal.

This core nucleus of contacts will typically comprise some 60-80% of an agent’s business, so it is nothing to be taken for granted. It takes time to carefully nurture and keep in touch with each over time and on a personal level. As the market begins to tighten, agents that have developed their sphere of influence best will be the ones that don’t see their bottom line damaged during challenging economic conditions.

Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated leads delivered to you exclusively for your exclusive region of the country. It’s an excellent way to supercharge your prospecting efforts and build your stable of clients.

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The value of a real estate agent to anyone who’s looking to buy a new home goes well beyond simply finding and introducing them to owners and properties, and sharing their market savvy. A realtor who’s able to provide even more value to a prospective buyer stands to much more firmly establish themselves as an expert who’s worthy of repeat business should that be a possibility in the future.

Heze at Real Estate Leads, our online real estate lead generation system in Canada has been very well received by realtors who are keen to have every advantage possible when it comes to expanding the scope of their business. Leads are opportunities, and once an opportunity is converted into a client then you have the further chance to impress these people with your willingness to share valuable knowledge and insights to make their new home more livable, valuable, and more.

So today we’ll discuss 7 ‘green’ home upgrades that you can suggest to new homebuyers that they can implement in their new home for savings and being eco-responsible. Both of which are good aims!

1. Install Energy Saving Appliances

Some will be surprised to learn that appliances account for 15% of a home’s energy consumption, but for most homes that’s entirely true. Choosing to install power-saving appliances can make a big difference to an electricity bill every month. It’s recommended that you replace older models with ‘greener’ appliance that have been independently determined to save energy. The easiest way to know that? Look for appliances with the ‘Energy Star’ certification sticker proudly displayed on them.

This applies to washers, dryers, dishwashers, stoves, and fridges and arranging to install all of them – however expensive that may be – will actually save your clients money in the long-term and give them the peace of mind knowing they’re responsible consumers.

2. Go For a New HVAC system

Replacing a home’s entire heating, air conditioning, and ventilation, (HVAC) system is no small expense, but every expert out there will assure you it’s well worth it. That’s in large part because heating and cooling accounts for nearly 50% of a home’s energy costs. A radiant floor heating system is a great choice, not only for the efficiency and comfort considerations but also because it will greatly reduce your home’s environmental impact.

As a rule, any HVAC system that is more than 12 years old will need a revamp servicing. If that’t the scenario in the home, it’s best to replace it entirely and get one that’s much more efficient and environmentally friendly.

3. Make Windows a Heat Saver

Installing double-pane or triple-pane windows goes a long way to preventing heat loss and improving home heating and cooling efficiency. If you live anywhere east of the BC Lower Mainland all the way to St. John’s, you know how important it is to be able to temperature regulate a home.

If the building report suggests the windows are in need of replacement, advise your clients to go with high-quality multiple pane windows that are proven energy savers

4. Go Green with Insulation

Insulation isn’t a primary consideration for many homeowners, but it’s equally important as all others when it comes to cost-effective temperature regulation in the home. Again, refer to the building inspection reports and then if need be you can suggest your clients seal their attic, windows, and doors with new-technology green insulation to prevent air leaks that reduce heat or cool air loss. They’ll save energy and money, and of course they’ll be thankful you made the suggestion.

There are plenty of recycled and natural insulation materials on the market, and they’re definitely the best choice for eco-friendly homeowners.

5. Employ the Sun

Solar power deserves all of the accolades its receiving these days, and putting the sun to work powering a home is entirely doable these days! Solar powered home products are becoming more common and more affordable these days. Speak with a building professional or inspector to see if there are any technologies your clients could realistically and affordably incorporate into their new home.

It will reduce their energy bill, reduce their home’s ‘footprint’, and make the home more attractive for eco-minded buyers in the future.

6. Rethink Water Heaters

Tankless water heaters are all the rage these days for new homes, and for good reason. They save space, and dispense hot water on demand. This means no energy is wasted in maintaining the temperature of stored water – which is certainly not the case with the standard hot water tanks in most homes.

They reduce heating bills in a BIG way and as such they should be very warmly received by your clients and will again make you to be a realtor who’s really in the know regarding this stuff.

7. Consider a Living Wall

A what, you say? A living wall is a green feature that’s incorporated into homes with greater frequency these days. It’s when an interior wall is converted into a vertical indoor garden. They’re unique, attractive, and also an environmental upgrader! This is because the plants serve to purify the air in the home and regulate indoor humidity. Add the fact you can grow some of your own produce in them as well and they’re especially easy to like.

The plants are contained in integrated soil pots and water troughs, and they really do enhance air circulation and purity.

Who knew a realtor could be so in-the-know regarding green home technologies?

Sign up with Real Estate Leads here and receive qualified, online-generated home buyer and seller leads that are delivered to you exclusively for your exclusive area of any city or town in Canada. You’ll love how it supercharges your marketing efforts and puts you in touch with people who are legitimately in the market for buying a home, or selling one.

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