Here we are into April now and that means the first Q of 2023 is done and we’re into the one that begins with springtime. As it relates to real estate the spring months typically come along with an uptick in activity in the real estate market and it’s not secret that homes are more appealing when seen in nicer weather. That may explain a small part of it, but there’s much more what goes into buyer prerogatives as they connect to more people buying real estate in April, May, and early June.
Realtors won’t necessarily need to know why more sellers are inclined to sell at this time, and why more buyers are inclined to buy. They’ll just like to foresee the expected uptick in business that comes and especially with prospective homebuyers who know their best choice is to work with a realtor in order to find the home that suits them best and gives them the best value for their money. The spring real estate market again is good for that.
In the event a realtor doesn’t see that some boost in business and new clientele inflow then our online real estate lead generation system here at Real Estate Leads is always a good choice. It puts the power of Internet Market to work for you for digging up legitimate prospective clients who may be looking to work with a real estate agent, and you have the opportunity to be first in touch with them. It’s immensely beneficial for any realtor looking for a big competitive advantage.
Back to topic, seeing as how we are now nearly 2 weeks into spring officially let’s look at spring market insights across Canada as our entry for this week.
Greater Halifax Area real estate is a perfect sample for fundamental microeconomic supply and demand imbalance. 31% less available residential inventory compared to 2021 but more than double the inventory of 2022 results in a strong seller’s market that is in large part a continuation of the aberrational market that was seen for spring of 2022.
The lack of available inventory is absorbed based on local buyer activity mixed with continued demand from buyers who come from out of province, and it is occurring at quite a strong pace. A list-to-sale ratio of 106.8% backs that up, and it is resulting in market appreciation remaining between 11 and 12% for the trailing year.
Spring 2022 had a lowest MOI of just under 0.4%, and right now the market is around 1.28 so it is very much a seller’s market but the belief is that there is still room for buyers to navigate to their advantage too.
Ottawa is increasingly becoming a balanced market and this is working to spur consumer confidence and the rate hike pause promised by the BoC is helping in this regard too. Pricing and listing preparation will be even more important as multiple offers on some property types become the norm again and certain neighborhoods continue to contribute the higher median home values because of their desirability. and price points while there may be more of a balanced demand for others.
This level of high demand will mean prices continue to go up at a modest pace and the belief is that we will see increased demand for lower-priced properties as budgets are tightened and buyers are forced into new realizations with what they have in the way of being able to afford a home purchase. This will raise prices and tighten the gap between the entry market products and the more standard townhome and single-family freehold.
The consensus is also that Ottawa is still very affordable in comparison and has much more affordability tied into quality of life when talking about living in the suburbs.
Expectations for the recovery of Toronto’s real estate market have been exceeded, and they have rebounded nicely from the drop seen between October to December 2022. Many buyers had homes priced in the same way they would have in years previous but languishing on the market. This has changed now, and buyer confidence and seller willingness are starting to meet each other more again.
The Bank of Canada raising interest rates by 25 basis points was a change point, as it boosted buyer optimism and also coincided with an end to the rate hike cycle. Intensifying competition meant sellers began receiving the types of prices for their homes that they were looking for
Unless there are unexpected rate announcements heightened buyer activity should continue, and sellers will likely see multiple offers on their properties. Employing the under-listing strategy may be a smart play for sellers as it can promote more bidding and help owners maximize the return on a sale of a property.
Winnipeg’s real estate market is always more of the slow-and-steady variety, but we should not that property values have gone up very reliably, for 47 of the last 50 years to be exact. What’s notable here for early 2023 is that the condominium market in Winnipeg is getting hot, and that the relative affordability in the city is attracting buyers from other provinces and this is infusing a lot of money into the market where many buyers are perfectly happy to pay asking price or more for a property.
Winnipeg’s growth rate 5% higher than both the provincial and national averages, according to the 2021 Census. This type of population growth is occurring at the same time as a market with a proven track record for stability and affordable housing, and the result of that is we will likely continue to see a market that is better for sellers at this time.
Nearly 50% of sales last week in Winnipeg were concluded after multiple offers received. Sellers are getting agreeable terms and conditions, and homes are selling quickly.
Calgary / Edmonton
The real estate market in Edmonton is distinct and has responded differently during and after the pandemic compared to other Canadian housing markets. The inflationary pressures did not apply in the same way, and this has resulted in stable and reasonable buying conditions. This is in somewhat stark contrast to the multiple offer situations and condition-free purchases seen in other cities.