1. Be budget conscious.
As a buyer, it is always wise to decide on your budget and stick with it.
2. Finalize your finances.
Be certain you have your financing secured and preapproved prior to making an offer.

How should buyers prepare and maximize their potential in a shifting market?

The Canadian housing market continued to see price growth during the first six months of this year.
The increases were particularly notable in suburbs and smaller communities outside metropolitan centres.
Long-term growth is also expected to continue, despite fears surrounding higher interest rates.
The highest point of the boom may have passed, but the trend is still toward higher prices.

Canadian house values remain on a strong growth trend

Canadian home prices remain on a strong growth trend

The aggressive approach by the BoC increasing rates, will send more buyers to the sidelines, especially in BC and Ontario.
The Bank of Canada’s aggressive approach to combating inflation recently led to a 1% rate hike, bringing Canada’s benchmark borrowing rate to 2.5%.It is forecast the overnight rate will increase to 3.25% by October.

What is the inflation impact in Canada

The latest rate-hike could have a big impact on people’s finances, especially when it comes to the type of debt people carry.
People with variable debt such as credit cards, lines of credit and variable mortgages have interest rates tied to the BOC’s rates.Household debt is expected to ↑, with experts anticipating mortgage payments to ↑ 30% by 2027.

Time to budget and negotiate loan in Canada

Time to budget and negotiate loans in Canada

Experts predict that Canada’s market will likely cool down in 2023 with the rising inflation rates. 
Many Canadians have had to downgrade to renting or switch from a larger to a smaller unit to save money.
With increased mortgage rates and a lack of affordable housing, many people are looking for smaller homes and apartments. 
The housing market in Canada is ever-changing, but all the experts are predicting a slow shift into lower-priced homes.

High demand for rentals in Canada makes the case for investing

Here are the different ways to calculate the market value of a property.
Comparable sales method
Look at the price/sq-ft for similar or comparable properties to get an apples-to-apples comparison.
Income method
It divides the net operating income (NOI) by its capitalisation rate.

How to calculate the market value of a property

Canada's Immigration Department is going to admit 950K-1.26M new permanent residents over the next few years.Despite available jobs for newcomers, rapidly rising housing costs and housing shortages are a lethal combination.
Ontario needs to build 1M homes, and Vancouver 156K, over the next decade.

Canada needs to build more inexpensive housing for newcomers

Canada needs to build more affordable housing for newcomers

The mortgage stress test in Canada has ↑ after a recent interest rate hike.
The annual income needed to buy a home across Canada ↑, even in places where housing prices ↓.From March to June 2022, Canadian homebuyers had to earn from $8.6K to $35.7K more annually, to afford a home depending on their location.
The stress test rate could be as high as 7.21% in the current market.

Here’s what increase in stress test means for the market

The BOC is currently started a more aggressive course that is believed to take its policy interest rate to restrictive levels by the fall.
More buyers will be sent to the sidelines, especially in British Columbia and Ontario, where affordability is extremely stretched.The downturn is expected to deepen in the coming months, with both resale activity and home prices reaching lower levels than previously anticipated.Home resales are forecast to ↓ ~23% in 2022 and ↓ 15% in 2023 in Canada.

Historic correction underway in Canada, but there won’t be a crash

As interest rates continue to rise, it's getting harder and harder for Canadians to buy a home.
In just 4-mo, the required income to pass the mortgage stress test ↑ $18K in major Canadian cities.
However, the stress test numbers tend to come back a little better for variable rate mortgages, at ~ 6%.

Variable rates are easier to qualify

National home sales ↓ 5.6% MoM in June.
Actual monthly activity ↓ 23.9% Yearly.
The number of newly listed properties ↑ 4.1% MoM.
The Home Price Index (HPI) ↓ 1.9% MoM, but still ↑ 14.9% Yearly.
The actual national avg sale price ↓ 1.8% Yearly in June.

It’s the best time to purchase in Canada

It’s the best time to buy in Canada

National home sales ↓ 5.6% MoM and ↓ 23.9% yearly in June. (CREA)
Sales were down in 75% of all local markets, led by Canada's biggest cities.
In June, with new listings ↑ 4.1% MoM, the sales-to-new listings ratio eased back to 51.7%.
There were 3.1-mo of inventory on a national basis at the end of June.

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How should buyers prepare and maximize their potential in a shifting market?

Canadian home prices remain on a strong growth trend

What is the inflation impact in Canada

Time to budget and negotiate loans in Canada

High demand for rentals in Canada makes the case for investing

How to calculate the market value of a property

Canada needs to build more affordable housing for newcomers

Here’s what increase in stress test means for the market

Historic correction underway in Canada, but there won’t be a crash

Variable rates are easier to qualify

It’s the best time to buy in Canada

Canadian home sales declines are getting smaller

Localized Real Estate Videos to Win Leads using Kelowna real estate Social Media Content

Sign Up to Add Your Branding to Social Media-Ready Real Estate Videos

How should buyers prepare and maximize their potential in a shifting market?

Canadian home prices remain on a strong growth trend

What is the inflation impact in Canada

Time to budget and negotiate loans in Canada

High demand for rentals in Canada makes the case for investing

How to calculate the market value of a property

Canada needs to build more affordable housing for newcomers

Here’s what increase in stress test means for the market

Historic correction underway in Canada, but there won’t be a crash

Variable rates are easier to qualify

It’s the best time to buy in Canada

Canadian home sales declines are getting smaller

Localized Real Estate Videos
to Win Leads using Kelowna real estate Social Media Content

Sign Up to Add Your Branding to Social Media-Ready
Real Estate Videos