In first few weeks of summer, the real estate sector is experiencing an upturn in activity, according to a Canadian realtor, with both buyers and sellers navigating the evolving market.
“We’re seeing a huge uptick in housing inventory, lots of more for sale signs,” Toronto-based agent Erica Reddy told CTV Your Morning Wednesday.
The resurgence of the summer market means inventory is up by 28.4 per cent from a year ago, according to the Canadian Real Estate Association (CREA).
“With that uptick in inventory, you’re seeing more active buyers and active sellers,” Reddy said.
Despite “for sale” signs popping up more often, market forecasters say slower sales is another trend forecast for this summer.
While spring and summer months typically see a boom in the Canadian real estate market, the number of homes sold in May fell 5.9 per cent compared with a year ago, the latest available data from the CREA revealed. In a report released mid-June, the CREA said new residential listings were up 13.5 per cent nationally from May 2023, but in addition to a decrease in sales, prices were also down on average.
The impact of the Bank of Canada’s decision to lower its key interest rate to 4.75 per cent is yet to be felt, Reddy said.
“Consumers optimism and confidence is tied very closely to the Bank of Canada,” Reddy added.
It’s unclear how long it may take for a shift impacted by the first BoC rate cut in four years, and while the rate was lowered, it’s still much higher than it was when many homeowners locked in to their current mortgages.
Similar to Reddy, senior economist David McDonald said a throttling of growth in the market is possible. But, he said last month, the impacts are trickling down.
Tips for buyers and sellers
When it comes to what those looking to enter the market should do, Reddy had some advice.
For buyers, she recommends laying the groundwork and scouting what’s out there to find the right purchase. “You’ve got lots of options to look at,” Reddy said.
“It’s a great time to get out there and get your feet wet,” Reddy said.
For sellers, Reddy said advised adjusting their expectations and shifting their strategy.
“It might take you a little bit longer to sell. You might need to stage and have a plan that allows you to be in the house for three to four weeks to get it sold,” Reddy suggested, adding that sellers must be patient with showings.
Outdoor living spaces, whether a backyard or a balcony, are great summer features to highlight during the selling process.
And, Reddy said, buyers and sellers are trying to figure out what this summer market is all about. The pandemic has changed what we’ve traditionally known as a fall and spring market, she said.
“I think you’re going to see more of a blur. Market happens 365 [days a year],” she added.
With files from CTVNews.ca’s Patrick Rail
