Real estate in Canada continues to look up. Even though Toronto has fallen behind in the race, western provinces are sprinting ahead at a national level.
New data released in October by the Canadian Real Estate Association points out that residential home sales in western Canada registered success for seven months in a row. Metro Vancouver and Calgary registered sales growth of 5.9% to 2.1% respectively. On the other hand, Toronto lagged behind, Montreal remained the same spot and Ottawa expanded at a reasonable pace.
Borrowing costs were less as home buyers adapted to the strict new mortgage rules set in early 2018. New taxes on foreign buyers have impacted the market in both Vancouver and Toronto but real estate GDP in Canada is back to contributing heavily to economic growth, along with construction.
The housing sector had dipped over the past two years before 2019 but has picked-up to lead the country in economic growth, rising by 1.8% from 2018 when only 0.6% growth was registered. Construction and the demand of condominiums are on the rise in Vancouver with a large number of on-going projects pre-sold already.
Real estate experts say that part of the reason is the easy five-year mortgage rates that hover between 2.5 to 2.6%. Condo prices are more affordable in Metro Vancouver with a dip of 10% and home prices are stable now. Employment has gone up over the last year so more buyers are investing in a roof over their heads. Rental growth has meanwhile gone up by 4 to 4.5%. In 2020, the trend is expected to continue in western Canada across Metro Vancouver, Victoria, Abbotsford and Burnaby.
Though Vancouver, Calgary and other western cities have lower home prices than a year ago, the noose on central Canadian markets is tightening, constricting sales. Toronto’s prices are up 5.6%, while Montreal’s rose 7.5%. Prices in Ottawa are up 10.3%.
Statistics Canada reveals that gross domestic product (GDP) has been climbing since last May, up by 0.43% from April 2019, and 2.67% from last year. This is driven largely by the sharp growth in real estate and construction touching $1.97 trillion. This was far higher than what analysts expected with real estate, rental and leasing revenues hitting $250.69 billion in May. The GDP does not include the financing and construction aspects of real estate.
Residential real estate makes up $49.62 billion of the total GDP amount. A record number of constructions represented 27.06% of GDP growth, including 80% of new residential construction. Together, real estate and construction took up as much as 51% of the monthly growth in May, proving to be major drivers of the economy, untouched by slower sales.
Cherry Yeung Real Estate, Burnaby
Market trends keep changing and investment can be time-consuming and complex. Let Cherry Yeung and her team help you make real estate matters simpler, quicker and easier. Whether your focus is on property sales, property buying, home renting, long term investments, furnished accommodation, commercial space purchase or property management, we bend over backwards to meet your goals. Get in touch with Cherry Yeung for rewarding solutions.
You may have heard of buyers house-hunting for a while and when they do find the perfect house for their needs, it may be beyond their budget or they may lose it to a higher bidder. How heartbreaking is that? How do you make sure it never happens to you?
Well, the truth is that you can’t be sure! In a seller’s market, it’s common to find not just one or two but as many as ten buyers eyeing the same house at once, if it’s a well-staged one in a coveted neighbourhood that doesn’t have many listings at the time. Multiple offers can be placed within minutes of each other. It’s easy to lose out to the highest bidder. Although you can’t change trends, there are a few ways to turn the situation around in your favour.
5 Steps to Sweeten the Deal
Firstly, don’t feel defeated before you’ve fought the war. Load up your arsenal and think smart with the help of a reliable buying agent. Here are a few tips to sweeten the deal.
- Large Down Payment: Any buyer can attempt to pull the carpet from under your feet with a hefty promise but not everyone is in a position to pay an instant down payment. Seasoned sellers are aware of that and prefer to sell to a committed buyer instead of one who makes promises but doesn’t see them through. Show them that you’re serious. Offer an earnest money deposit right then, instead of later during the closing, as part of your down payment. It might make a difference.
- Pre-Loan Approval Letter: It helps to win the trust of the seller so they consider your offer over others. Request your lender for a loan pre-approval letter to strengthen your case.
- Give them Time to Move: Many buyers insist on instant possession, which may not always be possible for the seller. If they are selling and looking to buy at the same time, the challenges multiply. Be considerate and give them some time to move out after closing the deal without expecting any benefits. Waive some contingencies to make it easier for them. Have a word with your agent for suggestions to make the offer more attractive.
- Best Offer: In a seller’s market with competitive bidders, it’s wise to avoid negotiating if you really like the house. Instead, make the highest offer possible, perhaps over the listing price if you can to clinch the deal. An experienced buying agent will know the comparative market analysis to determine the price range so you don’t pay over the market value, even if you pay a little extra. Find out how many competitive offers you are bidding against. If there is just one buyer instead of 10, you are in a better position to win the home of your dreams with a slightly better offer. Sell your home before you buy if you have a home to sell so it’s easier to make a better offer.
- Good Attitude: If you are a first-time homebuyer, don’t request for personal items from the seller or expect them to pay your closing costs. Kindness and niceness goes a long way. Encourage your agent to be friendly with the seller’s agent as well. A good attitude wins no matter what the situation. Avoid a bidding war. If you still lose the deal, accept it graciously and trust your agent to find you another home. You never know, that may turn out even better for your needs.
Are you looking to buy, sell or rent a home or commercial space in the Greater Vancouver Area? Real estate matters can be complex and time consuming but specialists can make the process more rewarding. Contact Cherry Yeung and her experienced team for the best solutions for you. We work night and day to meet your goals within your budget.
A sale of property condition is common in a buyer’s market and can be applied when there are more buyers than sellers in the market. This gives buyers more control, which allows them to set conditions that may otherwise not be considered.
If this sounds confusing, it’s because selling your home conditional on the sale of the buyer’s property is a complicated process. If this is something you’re considering, it’s very important to understand the details surrounding this arrangement so that you’re not in for any unexpected surprises.
This term applies to someone who is thinking about buying a property before they sell their current home. If the real estate market happens to be favourable towards the buyer, this can be a possibility with a sale of property condition. This means a buyer can make an offer on your home which is conditional on them selling their current home during a specified period of time. If they are unable to sell their home during the time period that was agreed upon, the deal is no longer valid and the buyer will receive their deposit back. If the buyer does sell their home during the set time period, the condition will be waived and the home will then be considered legally sold and binding.
There are benefits as well as risks associated with this arrangement. It’s a great option for a buyer because it allows them to secure the house they want without having to deal with two mortgages or being unable to close if they cannot sell their current property. They may have to pay a little more in order to get that condition, but it will provide them with security and peace of mind. If you’re the seller, this can be a good way of finding a potential buyer if the market doesn’t happen to be in your favour and there are no other candidates to sell to.
Sellers aren’t always willing to accept the sale of property condition and it’s not something you see very often in major cities. In most cases, sellers prefer to continue looking for a buyer unless the property has been on the market for a very long time and there is little hope of finding another buyer. If you are a buyer, you should keep in mind that sellers do not always welcome this condition which can harm your negotiation and if they do, it will come at a premium price that the seller will demand.
When it comes to buying or selling your property, you want to make sure you’re working with the best team on your side. Cherry Yeung Real Estate in Burnaby will pair you with an experienced real estate agent who can help you buy a condo in Vancouver or a property in the surrounding areas. If you want a realtor you can trust, give them a call today!