One of the most troubling aspects of our overheated housing market for would-be buyers is how it can be difficult to stay on top of what the most recent highest offer is on a home, and this can be especially true when offers are coming in fast and furious. That is pretty much the norm in Vancouver and Toronto areas where real estate is hot and it seems to have been by and large insulated from the dips seen elsewhere in the country simply based on supply and demand.

The majority of real estate agents that will be working with prospective buyers are going to be conscientious and diligent realtors, and they’ll be doing their best to navigate the firestorm of offers that may be coming in for a home that their clients are very much hoping to buy. But it can be hard for both them and the individuals who are wishing to be new homeowners but facing the stiff competition that is standard if you’re aiming to buy a home in a popular metro region of Canada.

There’s a potential fix on the horizon coming out of Australia for that, and one that like so many these days really leverages new digital technology. What also leverages this type of technology is our online real estate lead generation system here at Real Estate Leads, and what it can do for realtors is make it more likely they have more of those clients to be working with in the first place. It does that very well, and so many agents have already gotten on board and have their leads doing well when it comes to growing a client base for their real estate business.

Let’s take this week’s entry to look at this new Openn Offers software and what it can do to give your clients an advantage when working through realtor.ca.

Right As They Come

Looking at it simply, Openn Offers is a digital version of the current offer and acceptance process used in Canada. It gives buyers and sellers and their realtors near real-time feedback on where any offer may stand on the property and this means realtors like you are better equipped to facilitate the negotiation process with better transparency and equality for consumers while providing realtors with an efficient solution to manage offers.

It also looks to have a lot of potential for multiple-offer scenarios. As the offers come in and are being managed in the software, elements of the offer details will become visible on Realtor.ca and what this app does is automate the current process so that any written offer can still be subject to conditions within an agreed-upon due diligence period. Which makes it so that it is NOT like an auction.

Instead it is a better setup for the back-and-forth negotiation on the price between interested buyers and the sellers that should occur naturally.

Anyone making an offer will still be required to complete and sign a fully binding contract facilitated by a realtor. Prospective buyers must have their identity checked and verified, with buyers and sellers having confidence that each offer they see is linked to a legally binding contract.

Better Transparency + Bidding Advantages

This technology looks like it may have serious potential for empowering the consumer with more transparent information surrounding real estate transactions and to reinforce the legitimacy of the offer process, especially for multiple-offer scenarios. The belief is that it will also do well for demonstrating realtors’ commitment to protecting public and client interest in a fair and informed real estate market. At the same times, it should ensure transactions are handled in a way that is balanced between the interests of buyers and sellers.

The developer states this software should ‘help keep realtors at the heart of the transaction’ with a good balance between instructions from their seller and local regulatory requirements. Openn Offers will have back-end controls in the system to allow for displayed information that is suitable for different provinces across the country.

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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 fast-track you to being first in touch with real prospective clients who have shown their genuine intention to either buy or sell a home. And not just any home –  leads will be for prospective clients looking to buy or sell a home in the Canada region you are working as a realtor and looking to grow your business. Check out these testimonials to see how highly recommended this online resource for realtors is.

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There was no way the Bank of Canada was going to get around the need to raise interest rates, and those who are affected by them when it comes to real estate interests are also smart enough to know that runaway inflation can’t be tolerated either. The rates had to go up, and they may well have to stay up for a good long while too. In fairness though this is a floating part of why mortgage stress tests were introduced, and while they’re not perfect they continue to work well in determining if a would-be buyer can truly afford the home they’re taking financing to buy.

All of this is paired with a country-wide housing shortage and the ongoing reality that people need to have the right home for themselves in order to progress through their lives. The lack of affordable starter homes in Canada is a huge problem, although as we mentioned in last week’s entry the federal government is making real investments in affordable housing starting right and now and into the near future. That’s to be commended, and what is also good to see is that new homebuyers are finding ways to make a rockier mortgaging landscape doable for them.

That’s what we’re going to look at with this week’s entry here, and like always there is good information to be had for realtors who are looking for smart ways to share valuable insight with clients who are ready to purchase a home. There are definitely trends in Canadian real estate that make finding these folks more of a challenge, and especially for realtors who are newer to the business. Our online real estate lead generation system here at Real Estate Leads here is a good choice for those who a very real aid there, as it works to identify prospective new clients very effectively and gives you first crack at them.

Short-Term and fixed mortgages may be something you want to suggest for clients who need to renew their mortgage, and here’s why

Security Over Flexibility

As mentioned, we are all seeing interest rates continue to climb sharply, and because of this ever-greater numbers of borrowers are opting for short-term, fixed-rate mortgages when they need to renew their mortgages. Many of them are opting for fixed-rate mortgages and overall it seems that the way the provide better financial security outweighs the flexibility of a variable mortgage and the benefits that come with that.

November of last year (2021) was when the Bank of Canada’s overnight lending rate was sitting at 0.25%, and that was a historic low. Of all these borrowers, around 80% were opting for variable rates according to reliable mortgage industry data. Go ahead nearly a year to last month and October of 2022, and it is only around 53% that are choosing to have fixed rates.  Now the remaining 47% are choosing to have a variable mortgage.

Last month also had the BoC introducing their 6^th interest rate hike since March, which bumped up the overnight lending rate to 3.75%. Another increase is expected for December due to inflation remaining high and efforts to curb rampant price rises not working as well as hoped. Canadian home prices certainly a part to that trend though, as median home prices for real estate in Canada are definitely down and that’s a part of why many homeowners are delaying selling their home.

That’s something that also takes away from the supply of new clientele for realtors.

Direct Results

This uptick in fixed-rate mortgages, and especially for ones in the 1–3-year range, are a direct result of rising interest rates. We can agree that choosing a 1 or 2-year fixed-rate mortgage with the intention of riding out the current volatility in the mortgage market is likely a good strategy, but only for some homeowners. Others that are maxed out on their home expenses and can’t handle another increase might be better served with longer-term fixed rate mortgage renewal.

Plus let’s remember that short-term fixed rates are slightly higher than 5-year fixed rates at the moment, and consumers can see the relevance of that when making their decisions too.

The procedure to qualify for a fixed-rate mortgage factors in here too. Now that the prime rate has moved up, qualifying for fixed and variable is similar. Home sales across the country have been slowing, and so there is also a resulting slowdown in mortgage activity in general too. Mortgage quotes for primary properties for October were down 59%. Quotes for vacation properties dropped 64%.

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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 – that’s you. The only realtor to 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 make it 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.

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Still a month and a half plus to go in 2022, but we’re not too far away from the end of the year to start looking to next year. The story for 2022 when it comes to Canadian real estate has definitely been how the time frame between February and July / August saw the market be as inflated as ever and then as deflated as ever half a year later. That’s definitely been newsworthy, and in a sense it’s also been plenty concerning for homeowners who’ve been counting on utilizing the equities in their homes.

There was and continues to be all sorts of fallout from that, but the reaction to it is always going to be balanced because this sort of stuff is always cyclical, even though the highs and lows have never been as pronounced as they are these days. The market will come up again, and eventually it will go down again. And yes, desirable markets like Toronto and Vancouver will be more immune to the lows and more responsive to the forces that push up the values of real estate all the time.

Realtors and the profitability of being the business gets moved with the tides here too, and it is agents who are newer to the business who may feel more of the pinch when fewer homeowners put their houses on the market because of depressed home values. To that end our online real estate lead generation system here at Real Estate Leads here is an excellent way to get a leg up on the competition and continue to find new clients for yourself. That is dependent on your ability to present yourself as qualified pro, but enough said about that.

Let’s look at the expected 2023 real estate trends that are predicted to affect the industry as we move into 2023.

Ongoing Uncertainties

Where we are at now is that in contrast to the booming conditions of the past few years, we now see interest rate hikes, runaway inflation, and turbulence in the geopolitical environment casting a shadow of uncertainty over the global economy and the business of real estate. But could those realities make for the ideal time to start a reset? That could be true, and here’s why some industry experts feel that way.

Primarily they are saying that there can be a more intense focus on digital tools and other innovations that enable the business, and capitalizing on new opportunities that emerge during this period of change and embrace long-term fundamental trends.

One thing that we can see is tightening borrowing requirements and higher financing costs will continue to suppress the ability to raise capital and move housing projects forward. This will lead to competition between companies decreasing as players choose to sit out until the market settles. This is very opposite to what we saw last year, where an overabundance of capital was intensifying competition and pushing valuations up.

More Focus on Sustainability

There is also going to be more of a focus on sustainability and net-zero emissions. Business models that prioritize sustainability will give companies an edge and likely help them attract more institutional investments source new forms of capital in ways that less-committed companies won’t see in the same way. Another factor will be the implementation of ESG strategies that will affect both publicly owned and private real estate companies in Canada.

Overall though, supply is going to be the big-ticket issue for 2023. Companies and economies are grappling with the looming housing affordability crisis and ever-increasing immigration levels that are simply counterintuitive to the lack of housing and infrastructure in the country. Real estate companies are going to be likely to shelve housing development projects because of cost, financing challenges, and the high interest rates. This is a firm reality, and it’s going to be massively problematic if the federal government continues to aim for mammoth population growth through immigration.

On a more positive note, industrial real estate looks to emerge stronger in 2023. This looks to be true for warehousing, fulfillment, data centres, and self-storage. Plus real estate for health-related uses is shaping up to show strongly in 2023.

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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 only to you. No other realtor will get them, and that creates the exclusive opportunity you want to reach out to these individuals and convince them you are the real estate pro they need. These people will be owning property or looking to buy it in the same area of the country where you work as a realtor, and so it really does become a valuable resource. Check out testimonials for Real Estate Leads made by profit-mined realtors like you.

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Still a month and a half plus to go in 2022, but we’re not too far away from the end of the year to start looking to next year. The story for 2022 when it comes to Canadian real estate has definitely been how the time frame between February and July / August saw the market be as inflated as ever and then as deflated as ever half a year later. That’s definitely been newsworthy, and in a sense it’s also been plenty concerning for homeowners who’ve been counting on utilizing the equities in their homes.

There was and continues to be all sorts of fallout from that, but the reaction to it is always going to be balanced because this sort of stuff is always cyclical, even though the highs and lows have never been as pronounced as they are these days. The market will come up again, and eventually it will go down again. And yes, desirable markets like Toronto and Vancouver will be more immune to the lows and more responsive to the forces that push up the values of real estate all the time.

Realtors and the profitability of being the business gets moved with the tides here too, and it is agents who are newer to the business who may feel more of the pinch when fewer homeowners put their houses on the market because of depressed home values. To that end our online real estate lead generation system here at Real Estate Leads here is an excellent way to get a leg up on the competition and continue to find new clients for yourself. That is dependent on your ability to present yourself as qualified pro, but enough said about that.

Let’s look at the expected 2023 real estate trends that are predicted to affect the industry as we move into 2023.

Ongoing Uncertainties

Where we are at now is that in contrast to the booming conditions of the past few years, we now see interest rate hikes, runaway inflation, and turbulence in the geopolitical environment casting a shadow of uncertainty over the global economy and the business of real estate. But could those realities make for the ideal time to start a reset? That could be true, and here’s why some industry experts feel that way.

Primarily they are saying that there can be a more intense focus on digital tools and other innovations that enable the business, and capitalizing on new opportunities that emerge during this period of change and embrace long-term fundamental trends.

One thing that we can see is tightening borrowing requirements and higher financing costs will continue to suppress the ability to raise capital and move housing projects forward. This will lead to competition between companies decreasing as players choose to sit out until the market settles. This is very opposite to what we saw last year, where an overabundance of capital was intensifying competition and pushing valuations up.

More Focus on Sustainability

There is also going to be more of a focus on sustainability and net-zero emissions. Business models that prioritize sustainability will give companies an edge and likely help them attract more institutional investments source new forms of capital in ways that less-committed companies won’t see in the same way. Another factor will be the implementation of ESG strategies that will affect both publicly owned and private real estate companies in Canada.

Overall though, supply is going to be the big-ticket issue for 2023. Companies and economies are grappling with the looming housing affordability crisis and ever-increasing immigration levels that are simply counterintuitive to the lack of housing and infrastructure in the country. Real estate companies are going to be likely to shelve housing development projects because of cost, financing challenges, and the high interest rates. This is a firm reality, and it’s going to be massively problematic if the federal government continues to aim for mammoth population growth through immigration.

On a more positive note, industrial real estate looks to emerge stronger in 2023. This looks to be true for warehousing, fulfillment, data centres, and self-storage. Plus real estate for health-related uses is shaping up to show strongly in 2023.

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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 only to you. No other realtor will get them, and that creates the exclusive opportunity you want to reach out to these individuals and convince them you are the real estate pro they need. These people will be owning property or looking to buy it in the same area of the country where you work as a realtor, and so it really does become a valuable resource. Check out testimonials for Real Estate Leads made by profit-mined realtors like you.

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