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Looking at news outlets, the current state of the Canadian real estate market can seem pretty doom and gloom. Interest rate increases combined with new Canadian mortgage rules and a declining housing market have presented challenges, to be sure, but could there also be an advantage?
While the housing market has been slowing so far in 2018, the flipside is that houses have become more affordable. For instance, the Teranet-National Bank House Price Index reported in the final quarter of 2017 that the housing affordability measure fell 0.2 per cent. This is the first time that’s happened since the second quarter of 2015.
Even as we are seeing interest rate increases and stricter Canadian mortgage rules, Canadian wage growth is going up. Increased wages and more affordable housing could definitely present real estate sales opportunities if your target market is affected.
Changes to the Canadian real estate market can also be navigated with flexibility, for example, shifting your target market to adapt to new trends. The Teranet Market Insights report March 2018 edition reported that condo demand continues to be high, particularly in Toronto. Not only that, but new condo development is also remaining strong.
According to the Canadian Press, some families are actually choosing smaller living over larger suburban dwellings. Families of five are living in 1,000 sq. ft. condos, or 950 sq. ft. houses. The right buyer might be tempted to consider some out-of-the-box housing arrangements.
BuzzBuzz News Canada reports that there is still more demand in the Canadian housing market than supply, meaning many real estate agents are seeing more buyers than sellers. If that’s the case for you, you can take advantage. Use property valuation tools to identify selling opportunities in your target area and identify new leads.
Another advantage of these changes is that real estate sales professionals aren’t the only ones dealing with them. Mortgage brokers and mortgage lenders also have to work with the same constrictions and they’re developing products to meet shifting demands. You can take advantage of this by making these industry connections. When you know how mortgage professionals are adapting, you can have more options to offer your clients who might be seeking financing.
It’s difficult to say exactly where the Canadian real estate market is headed in 2018, but you can find a way to adapt and perhaps profit even more from recent changes. Understanding your target market is key to identifying new opportunities. Technology, like GeoWarehouse, puts vital property data at your fingertips so you can quickly and efficiently access the information you need to know when you need to know it.
Not only that, but the GeoWarehouse store also provides important fraud detection resources, like Parcel Registers* and Instrument Images*. These tools let you find out whether there’s an encumbrance, such as a lien or an undisclosed mortgage, on a property so you’re not caught unaware.
Not a GeoWarehouse subscriber? You can become one today. It’s easy — just visit www.geowarehouse.ca to learn more.
* An official product of the Ontario government pursuant to provincial land registration statutes.