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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.

Average 5.5% Gain in Home Prices Forecast Nationwide for 2021

Published December 14, 2020 by Real Estate Leads

One of the things that everyone will agree on is that seeing moderate increases in home values is a good thing for one and all. We stress the word moderate there, because anything more than incremental gains in the values of homes has the potential to be harmful for those who are ready to enter the housing market for the first time. A decline in median home prices is never a good thing for anyone, and that’s true on everything from the individual level right up to the prosperity of the country as a whole.

From the perspective of a real estate agent, it’s a little different than the way the consumer will see it all. Keep in mind though that most real estate agents are homeowners themselves. In that scenario, you’ve got a double vested interest in seeing national growth in home values. But with more value in homes there’s more value in the business that brings more into the profession. That’s a double-edged sword of sorts, as it becomes an increasingly competitive business.

That makes our online real estate lead generation system an excellent choice for realtors who need a hand being the competitor they want to be when it comes to growing a real estate business. You’re put more directly in touch with would-be clients who are legitimately looking to buy or sell a home in your area of the country.

Clients that will likely being paying a little more for that same home in 2021 it would seem, and that’s where we’re going to focus today.

Perfect Moderate Gain

Our friends at Royal LePage are predicting that home prices in Canada will rise some 5.5% in 2021, and that will be attributable to building on unexpectedly strong growth this year, driven by a shortage of properties for sale and record low interest rates.

Adding further that the aggregate price of a home in Canada should rise year-over-year to $746,100 in 2021. The median price for a 2-storey detached house and condominium are projected to increase 6% to $890,100 for the detached houses and $522,700 for the condos.

Aggregate home prices are based on a weighted model that uses median prices and includes all housing types.

It needs to be said, however, that the government-backed mortgage insurer Canadian Mortgage and Housing Corporation is predicting a price decline in 2021 and more than a few of the country’s biggest banks are foreseeing growth that’s a little more repressed. As is almost always the case though, those who do real estate full time and exclusively tend to be a little more in the know and correct with their predictions on housing in Canada.

In conclusion with that, we should see upward pressure on home prices continuing, and that reality should be buoyed by supply continuing to not demand all across the country as a whole, and policy makers keeping interest rates low – which is almost certainly going to happen given the current economic malaise brought about by the COVID pandemic.

15% Average Rise

The average Canadian home price went up more than 15% in October from the same time the year previous (2019), and according to the CREA that’s a record gain.

RBC and the Bank of Nova Scotia have presented 2020 annual reports where they expect house prices to grow 0.6% over the next 12 months, and that constrained housing affordability is the only impediment that’s likely keeping that number from being higher.

Buyer demand for condos is expected to be healthy in Canada’s biggest cities, but with one exception – Toronto. It’s the only major metro area where softer demand is seen continuing in the city centre.

Ottawa and Vancouver are the frontrunners for city-specific rises in median home values, with increases of 11.5% for the country’s capital and 9% for Vancouver. Calgary and Edmonton are set to have much less noticeable growth – 0.75% for Cowtown and 1.5% for the Albertan capital. Toronto prices? Think more along the lines of 5.75% gains.

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 you exclusively as the only realtor registered to receive them. It’s a proven-effective way to get more out of your client prospecting efforts, and a look at our testimonials page is enough to make clear how many realtors like you are very happy they’ve already made the decision to sign up.

2021: The ‘Move Up, Move Over’ Year for Canada’s Real Estate Market?

Published December 7, 2020 by Real Estate Leads

Being a full week into December now we can affirmatively state that the current year is now waning on the horizon and we will be in January of 2021 before we know it. Most people are pretty keen to have 2021 in the rear-view mirror, and for good reason. For homeowners and soon-to-homeowners and the realtors working with them, there’s an added reason to be enthused about the coming new year.

All of which is relevant for those newer to the profession of being a real estate agent in Canada. The market has remained very resilient throughout the economic turmoil brought about by the pandemic, and we’re all thankful for that. Nothing, however, is going to make real estate any less of a competitive business and realtors need to be hustling harder than ever to continue to have the ‘pie slice’ they envision for themselves.

That’s what makes our online real estate lead generation system here at Real Estate Leads such a valuable resource for realtors in Canada. Like the idea of being straight lined into contact with genuine buyer / seller prospective clients? Right, of course you are and that’s what our system is able to do for you.

Which is plenty good news, because industry experts and economists are foreseeing a good bit of vibrancy to the housing market for next year, and in fact some are saying it could be the year of ‘move up and move over’ for many people who will be active in the Canadian real estate market next year.

As Expected – Less Supply, with More Demand

So what’s meant by that? Well, it is believe that the real estate market in Canada will be pushed primarily by these ‘move-up’ and ‘move-over’ buyers in 2021. Why? Well, let’s start with the projection that ongoing supply shortages will push prices up some 4-6%, according to REMAX Canada.

What we do know is that there’s plenty of evidence that many households are considering major lifestyle, many that will involve relocating to less dense cities and neighbourhoods. Sales of homes in suburban and rural parts of Canada reached record levels in 2021 and this trend is expected to continue.

Much to the pleasant surprise of realtors working in more rural areas of Canada no doubt! Also a catalyst for greater numbers of people in these locales to perhaps consider a career change to real estate if that’s something they think might work out well for them.

But let’s consider more prominently that 52% of Canadians believe real estate will be one of the best investments in 2021, as the housing market remains hot despite the downfall many predicted for it in the time following Mid-March.

Sanctity – and Scarcity – of Space

Other relevant stats here we were able to borrow; only 6% of sellers in 2020 made purchasing decisions influenced by the COVID-19 pandemic. 40% started on home renovations. Most notable, however, was that 29% of buyers were opting for more space. Something you almost certainly won’t get in Vancouver or Toronto unless you’re a multi millionaire or darn close to it.

Suburban markets saw influxes of new residents this year. Places like North Bay, Kingston, Moncton and the Fraser Valley around Vancouver are good examples. This trend is expected to continue into 2021.

It’s also foreseen that market activity across the country’s most populated Province – Ontario – is set to remain very steady in 2021. While only an estimate, it’s believed that the a potential for an average sale price increases of some 7-12% should be seen in regions like London (7%), Kingston and Cornwall (10%), Niagara (12%), and 10 percent for Thunder Bay too.

What’s behind all this? Well, it really is the same old story. High demand and low supply paired with shifting home-buying trends toward local liveability factors. More and more people than ever want more space, larger yards and closer proximity to amenities like parks.

Move-up and move-over buyers are impacting luxury segments in Ontario too. Ottawa and Hamilton-Burlington are prime examples of a massive spike in demand for luxury homes since the start of the pandemic, and this is expected to be the norm all through 2021 too.

Being a full week into December now we can affirmatively state that the current year is now waning on the horizon and we will be in January of 2021 before we know it. Most people are pretty keen to have 2021 in the rear-view mirror, and for good reason. For homeowners and soon-to-homeowners and the realtors working with them, there’s an added reason to be enthused about the coming new year.

All of which is relevant for those newer to the profession of being a real estate agent in Canada. The market has remained very resilient throughout the economic turmoil brought about by the pandemic, and we’re all thankful for that. Nothing, however, is going to make real estate any less of a competitive business and realtors need to be hustling harder than ever to continue to have the ‘pie slice’ they envision for themselves.

That’s what makes our online real estate lead generation system here at Real Estate Leads such a valuable resource for realtors in Canada. Like the idea of being straight lined into contact with genuine buyer / seller prospective clients? Right, of course you are and that’s what our system is able to do for you.

Which is plenty good news, because industry experts and economists are foreseeing a good bit of vibrancy to the housing market for next year, and in fact some are saying it could be the year of ‘move up and move over’ for many people who will be active in the Canadian real estate market next year.

As Expected – Less Supply, with More Demand

So what’s meant by that? Well, it is believe that the real estate market in Canada will be pushed primarily by these ‘move-up’ and ‘move-over’ buyers in 2021. Why? Well, let’s start with the projection that ongoing supply shortages will push prices up some 4-6%, according to REMAX Canada.

What we do know is that there’s plenty of evidence that many households are considering major lifestyle, many that will involve relocating to less dense cities and neighbourhoods. Sales of homes in suburban and rural parts of Canada reached record levels in 2021 and this trend is expected to continue.

Much to the pleasant surprise of realtors working in more rural areas of Canada no doubt! Also a catalyst for greater numbers of people in these locales to perhaps consider a career change to real estate if that’s something they think might work out well for them.

But let’s consider more prominently that 52% of Canadians believe real estate will be one of the best investments in 2021, as the housing market remains hot despite the downfall many predicted for it in the time following Mid-March.

Sanctity – and Scarcity – of Space

Other relevant stats here we were able to borrow; only 6% of sellers in 2020 made purchasing decisions influenced by the COVID-19 pandemic. 40% started on home renovations. Most notable, however, was that 29% of buyers were opting for more space. Something you almost certainly won’t get in Vancouver or Toronto unless you’re a multi millionaire or darn close to it.

Suburban markets saw influxes of new residents this year. Places like North Bay, Kingston, Moncton and the Fraser Valley around Vancouver are good examples. This trend is expected to continue into 2021.

It’s also foreseen that market activity across the country’s most populated Province – Ontario – is set to remain very steady in 2021. While only an estimate, it’s believed that the a potential for an average sale price increases of some 7-12% should be seen in regions like London (7%), Kingston and Cornwall (10%), Niagara (12%), and 10 percent for Thunder Bay too.

What’s behind all this? Well, it really is the same old story. High demand and low supply paired with shifting home-buying trends toward local liveability factors. More and more people than ever want more space, larger yards and closer proximity to amenities like parks.

Move-up and move-over buyers are impacting luxury segments in Ontario too. Ottawa and Hamilton-Burlington are prime examples of a massive spike in demand for luxury homes since the start of the pandemic, and this is expected to be the norm all through 2021 too.

Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are from genuine buyers who are in the same area of any city or town in Canada where you are working as a real estate agent. But what’s most important to most realtors is that you will be the only realtor who will receive those leads, we won’t be providing them to anyone else. It’s a dynamite way to supercharge your client prospecting efforts, and it comes highly recommended from realtors just like you.

Good Time to Remortgage a Home?

Published November 30, 2020 by Real Estate Leads

Clients don’t just see their realtor as the individual who’ll bring a buyer to them when they’re selling a home, or fast-track the process of getting them into the home they want. The professional relationship runs a lot deeper than that, and one thing that’s true most of the time is that these folks will be looking to you to be an expert on the entirety of the housing market and – to a lesser extent – being in the know about smart moves related to being a homeowner.

Even if they aren’t homeowners – yet.

Financing of a home can be a part of that. While most realtors will have a preferred partner that they can recommend to clients as a mortgage broker, there’s still a lot to be said for being knowledgeable about that side of the equation on your own.

Now it’s true that part of being seen as knowledgeable is being reputable, and in large part that comes from being well established as a realtor in the area. When you’re a new realtor nothing gets you to that point quicker than selling homes and bringing buyers to other realtors who are selling homes for their clients. To that end, our online real estate lead generation system here at Real Estate Leads is an excellent resource for realtors who’d like that leg up on the competition. It’s highly recommended.

But back to topic here, and again in relation to the financing of homes for clients. There has been some discussion lately about whether or not now is good time for homeowners to be remortgaging their homes. Is there any truth to that, and if so, why? Let’s have a look.

Unique Opportunity

It’s no secret that historically low interest rates recently have prompted homebuyers to pull the trigger on home purchases like never before, but it’s also presented a unique opportunity for real estate investors.

Let’s take Toronto for example. The COVID-19 pandemic has lessened demand in the condo rental market, much to the disappointment of many investors. The Bank of Canada’s interest rate cuts did create historic lows designed to resuscitate the economy, and what they also did was give investors an opportunity to refinance their mortgages.

In some cases the primary aim was to lower their monthly payments to something that was more in line with what they could afford and still maintain their base of investment funds. The situation now is that they can unlock up to 80% of the appraised value and potentially make it so that the payments are lower than their existing payments.

No Need to Wait for Renewal Time

The best time to refinance a mortgage has always been when it’s due for renewal. However, with mortgage rates as low as they are it becomes a situation where refinancing before term could be worth the outstanding penalty.

Why? Because of the significantly larger amount of equity that can be unlocked, which could then be repurposed into tax-deducible portfolio growth.

Add to this the fact that there are going to be buying opportunities as the market changes, ones where investor buyers can take advantage and take out money for tax deductible investments. For example, say your client takes out an extra $100,000 from a refinance. On account of their property value being higher than when they bought it, they are then paying $210 per month tax deductible on interest.

What this means is that whether it’s your primary residence or a cash flow positive income property where you don’t need the income, you can use that income to invest in more properties and reduce your income for tax purposes.

Further, you can inform your client that the unlocked equity can also be used to consolidate other debts. It is potentially a very shrewd play that can increase the client’s investment capacities down the road, and the solidity is there given how the real estate market has weathered the storm of the COVID-19 economic downturn.

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 exclusive recipient of these leads and they’ll be for prospective clients who live in the same area of the country where you do and are working as a real estate agent. It’s a dynamite way to supercharge your client prospecting efforts, and you’ll almost certainly be making more of a name for yourself in the local community as a reputable real estate agent.

24-Hour Touch Ups That Can Help Buyers Legitimize Asking Price

Published November 23, 2020 by Real Estate Leads

This week we’re going to segue back to the topic of things you can do as realtor to help your clients sell their home more quickly and, in some instances, for more than they thought they’d be able to. This may be beyond the standard scope of what clients might expect from their realtor, but don’t think for a minute advice like this won’t go a long way in establishing you as a home sales expert. People talk – and people refer agents they think highly of to their friends and family when the opportunity exists.

And that’s important for many reasons, not the least of which is that real estate is always going to be a competitive business and anything you can do to grow new clients out of existing ones is a big plus. Of course, establishing that original clientele is key, and that’s why our online real estate lead generation system here at Real Estate Leads is such a good choice for realtors who are new to the business. But in truth it’s not a bad choice for realtors who are well established too

But back to topic, here are 7 quick and not-too-difficult jobs that you can suggest to your home seller clients that may make just the difference needed for prospective buyers to pay the asking price for the home, or darn close to it!

  • Refresh Grout For a Sparkling New and Clean Look

Buyers always put a premium on a master bathroom that meets their expectations. Layout and amenities are one thing, but the appearance of the bathroom during a viewing is always a factor too. Specialty grout stain removers and cleaners are never expensive and the job usually only requires and hour or so of vigorous scrubbing and then washing clean. The bathroom will have a much ‘newer’ look to it, and your buyers will likely benefit from it appearing that way.

  • Change Lighting to Create Moods and Ambiance for Rooms

A warm white light from specially chosen LED bulbs makes for a welcoming environment when potential buyers are entering a specific area of the home you and your clients feel is a key part of its appeal. When outdated fixtures are taking away from a home’s otherwise modern styling, suggest they go with more design-neutral replacements that won’t make less of the property’s charms. Again, a fix up that goes a long way while not costing very much at all.

  • Repainting Doors to Create an Updated and Inviting Entryway

Make clear that you’re not asking them to repaint the whole interior of the home here, and stress that repainting doorways with a fresh coat goes a long way for suggesting a well-kept and maintained home. Plus, remind them that the front door of the home is the first thing buyers will see as they approach to view the home. Changing out generic doorknobs and switch-plates to add an updated flare is a good idea too.

  • Shine Up Windows

There’s no debating the fact that cleanliness goes a long way in indicating a home has been well-cared for, and that understanding really resonates with prospective buyers. Cleaning the inside and outside of windows not only refreshes a room, it also allows light to infuse the space more thoroughly and natural lighting in living spaces is a HUGE appeal for anyone considering purchase of a home.

  • Give Some Time to Closet Spaces

Interior storage space is big for buyers too, and especially in regards to closets and cabinets. Let your clients know that spending 30 minute ensuring they’re clean and clear and that hangers are spaced evenly and organized and the floor is clean is a very good idea.

  • Get Rid of Appliance Stains

Most sellers will be selling the home with the installed appliances included for the buyer, and if yours are the same then you should let them know that spending some time and elbow grease getting those appliances as clean as possible – on both the inside and outside – is also a smart decision that will add to the overall appeal for open house visitors.

Suggest they get some stainless steel polish, electric cooktop polish, and stain removing pads for the kitchen sink to take their appliances and make them look much newer to the eye.

  • Organize Garage and Basement Areas

Buyers want to see at least the appearance of space that will be at their disposal in areas of the home like this. This is especially true of a garage. Organizing and decluttering these spaces can add to the positive impact that’s made on would-be buyers. Instead of telling prospective buyers how much storage space there is, have them make it so these areas speak for themselves in that way by making them as tidy, organized, and visually spacious as possible.

Sign up for Real Estate Leads here and receive a monthly quota of qualified, online-generated buyer and / or seller leads that are delivered exclusively to you. You will be the only realtor who’ll receive these leads, and that will mean you can be first in touch with these people who have shown a genuine willingness to make a move in the local real estate market soon. It’s a dynamite way to supercharge your prospecting efforts, and there’s every reason to be all over this opportunity.

The ‘Bully’ Offer

Published November 16, 2020 by Real Estate Leads

We’ve gone on fairly at length about how the Real Estate Market continues to hold strong in the face of the last 7 months of economic adversity in Canada, and one of the things that we’re seeing is that the ‘pent-up’ demand of buyers is creating some not-so-ordinary buyer tendencies given the fact that demand continues to outdistance supply in that part of the equation. Add pent-up demand and what we’re seeing is buyers who may be even more willing to do what it takes to get the home they want.

For some, that means being a bully, and having their realtor submit ‘bully’ offers. It’s been said no one like bullies, and fair enough. But if you’re a real estate agent in Canada it’s best to always be very much in the know about the workings of your business. It’s to be expected if you’re to ask any of the many hundreds of people who’ll be looking for a realtor in Canada, even before this crazy 2020 is through. You need to be the expert, and come across as one. But getting to be first in-touch with prospective clients isn’t easy, this is always going to be a competitive business.

Especially in major metro areas, and that’s why our online real estate lead generation systems for Canada realtors here at Real Estate Leads is the type of powerful ally it is in that regard. You’re given more of the opportunity to make those contacts, but then the chance to show how you’re the best professional to help them with buying or selling a home is entirely up to you.

So of course wide-reaching knowledgeability is a big plus there. If you’ve never heard of a Bully Offer, it’s one of hundreds of different insights you can and should gain into the business.

So let’s get to it.

Pre-Emptive Buyers

A bully offer is also called a pre-emptive offer. What that means is it’s an offer from a buyer to the seller to purchase a home listed for sale on MLS. Nothing unique about that, but with the bully offer it’s an offer that’s submitted before the date that the sellers have indicated they will look at any of them.

Keep in mind that the seller is free to accept any offer on their home, at any amount, at any time. Any given and suggested date for ‘consideration’ is just a statement and there’s nothing contractually binding about it.

In any real estate market that is a seller’s market – where there are more buyers than homes for sale – folks with homes for sale may make the decision when they list their home to hold on offers and wait until a certain date and time to review them. In truth it’s often a smart strategy for a seller who has properly priced their home. It allows the most buyers possible to see the home, and increases the chances of a bidding war starting and potentially driving the selling price up.

The bully offers is a high pressure sales tactic on the part of the buyer, and it’s intended to make a home seller look at the offer quickly with not much in the way to make other interested buyers aware of what’s going on.

Maybe a house is listed for sale on Wednesday. The plan is to allow it to be for sale for an entire week and then offers will be accepted the following Wednesday. By holding offers the agent increases the opportunity to market the home and increase the number of prospective buyers who’ll be aware of it being on the market at a specific price.

Should that real estate agent receive an offer on the home from another agent, but with he provision that the offer will expire before the owner’s stated window for accepting offers, you’ve got yourself a bully offer.

No Obligations

It’s important to first understand here that you and your client are of course under no obligation to accept the offer. The issue is when the bully offer comes with a proposed price that’s attractive to the homeowner. And that’s usually how it’s both intended, and how it works.

Once a bully offer is submitted, your client can choose to accept it, start negotiation, or stick to your original plan and refuse to deal with it until their stated original offer presentation date.

The question then though is are there good scenarios for accepting a Bully offer?

Buyers and their agents know that in order to get your client to accept their bully offer, they’re going to have to make it worth your client’s while. This usually means offering above asking price and with little or no conditions on the sale.

But you – as their agent – should be able to quickly determine if a bully offer is worth accepting. Some considerations:

  • When the price is ridiculously high
  • When showings are slower than expected, or home is listed in volatilely changing market
  • When the offer is firm
  • When you have notified every other buyer who has expressed interest in the property

We’re going to steer clear of any discussion about whether it’s ethically OK to make bully offers. That’s up for you to decide as a realtor. But if you have reason to believe that making one puts your client in the best position to get the home they’re after, it may be something for you to consider. Be judicious about it though, and proceed cautiously if you have reason to believe it will rub the selling realtor the wrong way.

It’s important to always remember that this is a business where it’s very important to get along with others also making their living in real estate. That said, nearly all realtors will be receptive to approaches that help them get clients into the homes that fit them best.

Making a Bully Offer

For those of you wondering on how to make a bully offer, real estate bully offers are no different from regular offers. All that you and your client are doing is disregarding any written instructions on the MLS that say the listing is holding offers. You are submitting your offer early, in an attempt to avoid competing with other buyers. Of course the seller is under no obligation to even acknowledge your client’s offer of this type, much less have to accept it. Keep in mind as well that you – the realtor – are required to convey your offer to the seller and notify all other interested parties.

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 you – and ONLY you – for your desired region of any city or town in Canada. It instantly vitalizes your new client prospecting efforts and creates the opportunity for you to have first crack at meeting these would-be buyers or sellers and then wowing them with your level of expertise as a realtor.

October ’20 Confirms Trend – Vancouver Housing Market Continues Surge

Published November 9, 2020 by Real Estate Leads
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One of the things that’s always important is to be able to see through the clutter and hear through the noise, and we imagine that these days that’s more true than ever for people. It was earlier this year that great misfortune was predicted to befall the real estate industry in Canada, but here we are near the end of the same year and the majority of those predictions haven’t come true.

One thing that anyone – not just real estate agents in Canada – will tell you is that the health and vitality of the industry is important because it encompasses the interests of both individual people and that of the economy. That’s not to make less of the need for affordable housing and better access to quality housing for Canadians, but for as long as real estate is a commodity there’s going to be a certain inevitability of it being tied to economic prosperity here.

People will continue to do what they can to work with that reality and be able to buy a home that meets their needs, and in the same way real estate agents will do what they can to be the realtors working with these homebuyer or home seller clients. To that end, our online real estate lead generations system for Canada here at Real Estate Leads is an excellent resource for any realtor doing just that. This business is always competitive, and when you’re new to being a realtor it can be intimidating.

29% Year-Over-Year Gains Last Month

The news that home sales in Greater Vancouver grew by 29% year-over-year in October, with transactions rising to 3,687 from 2,858, is good news on either end of that perspective. It suggests that homes are still being put on the market consistently, and then with the fact they’re selling we can safely conclude that a) there continue to be qualified buyers, and b) homes are selling for at or close-to what the sellers are expecting to receive for their properties.

Sales also increased by 1.2% last month from 3,643 transactions the month previous, September, and were up 34.7% from the 10-year average. This makes it the second-highest total ever for the month, and makes it even clearer that the COVID-19 pandemic hasn’t pushed down activity in the country’s most expensive real estate market.

One thing that’s definitely been a contributing factor is that lockdown measures in the spring were a catalyst for homeowners to upgrade their homes, and this trend has been a co-operator for the trend of homes sales not missing much of a beat in Vancouver and area.

It’s a reflection of a bigger-picture trend where people are rethinking their housing situation, and on both macro and micro levels. Then there’s the role of the Bank of Canada cutting interest rates to historic lows, and this is the biggest reason real estate markets in Canada’s 3 biggest cities have been able to weather the economic fallout of the pandemic.

What’s happened is that low rates have opened the market up to previously not-quite-qualified would-be buyers. Pair that with pent up demand and the never-ending supply and demand equation disparity for housing in areas of the country and you actually have more people coming into the market.

The REBGV data also indicates that detached home sales went up by 42.3% last month from October 2019, and the benchmark price went up by 8.5% to $1,523,800 along with that. There are many different factors coming into play with that buyer preference trend too. This is especially true in ‘satellite city’ areas around the major metro regions in Vancouver and Toronto, but it is definitely a reflection of bigger trends that will likely come to be applicable for small cities too.

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 one realtor only – you. Sign up and indicate your preferred region of any city or town in Canada and you’ll be able to start receiving these leads and then enjoying the more direct and immediate connection with folks who live in the area and are genuinely considering making a move in the local real estate market. It’s a proven-effective way to supercharge your client prospecting efforts in a BIG way!