Well, that was a long time coming! For the first time in more than four years, the Bank of Canada has decreased its overnight policy rate — a sign that inflation is no longer running rampant and the economy is picking back up.
Of course, homeowners, buyers and sellers have been paying close attention to interest rates as it has major implications on mortgage payments. This latest cut could be a catalyst for a busy real estate market as Canadians feel more confident about how much home they can afford.
Are you prepared for what may happen next? Do you know all the ins and outs of what comes with a busy real estate market? This is why finding the right REALTOR® for you is such a crucial step in the process. Navigating the current real estate landscape is tricky in times of uncertainty, but luckily for you, your REALTOR® can help calm all your concerns. Here’s how.
Market Insights
Canadians far and wide have been waiting for this news to jump back into the market. If data from the Canadian Real Estate Association (CREA) is any indication, don’t be surprised to see multiple offers, prices going over asking and lineups at open houses once again should all this pent-up demand be released.
Remember, your REALTOR® has access to data pertaining to your local housing market and may have experience navigating hot markets in the past. They know the stakes are usually high and they know they need to act fast in a busy market. Managing showings, offers, conditions, negotiations, finances, moving companies, packing — it’s all too much! Let your REALTOR® help you!
For sellers, your REALTOR® can get information on comparable homes and see what they sold for and when, access the exclusive MLS® Home Price Index (HPI) — an advanced, highly accurate way to gauge prices and trends in specific areas — and know what buyers are looking for in your region.
For buyers, your REALTOR® is there to work for you and get the best home for you. They can advise you on what to expect in your local market, from commute times and proximity to amenities, to noise levels and municipal regulations you may have never heard about.
All real estate markets are local — what’s happening with national numbers may not be relevant for you. For example, buying a condo in Toronto is going to be a completely different experience than buying a century home in Winnipeg or a high-ranch in Halifax. Your REALTOR® will help you make sense of it all.
Negotiation Skills
It doesn’t matter if interest rates are at 5%, 10%, or 1% —at the end of the day, your REALTOR®’s top priority should be looking out for you and making sure you’re comfortable with whatever price you land on.
Of course, a buyer’s agent should know what their client is pre-approved for, and interest rates often affect how much home one can afford. Make sure you communicate your wants, needs and budget so your REALTOR® can properly advocate on your behalf. You can look for REALTORS® with a Certified Negotiation Expert designation or a Master Certified Negotiation Expert for those who have received extra training.
Financial Guidance
Did you know your REALTOR® can help you before you’re pre-approved? That’s right! With interest rates dropping, you may want to act fast. Consider reaching out to your REALTOR® to get a handle on how your local market is reacting to the latest news from the Bank of Canada.
Your REALTOR® can also provide you with a list of lenders they’ve worked with, not to mention offer some tips and tricks to help you solidify a better rate (like, make sure you shop around before signing!).
Before doing anything, have a look at the mortgage calculator at www.winnipegregionalrealestatenews.com to help you get a better idea about your finances.
Professionalism and Sense of Security
One of the biggest worries for Canadians on the move is the uncertainty of conducting a real estate transaction. There are so many variables (not just talking about interest rates here!) to think about. From land transfer taxes and lawyer fees, to dealing with complete strangers while trying to complete one of the largest financial transactions of your life—you have a lot on your plate if you’re buying or selling.
Also, the right REALTOR® for you will just get it. They won’t push you into something you’re uncertain about and can even help with market timing strategies should you want to try and make the current interest rate situation work better for you.
Home Buying and Selling MVP
We’ll say it again: your REALTOR® is your personal real estate MVP. While you’re figuring out financing, they can already get to work behind the scenes. If you’re buying, this means setting up searches for you, attending open houses on your behalf, and asking around to their connections about what might be coming available—hey, with interest rates dropping, anything you can do behind the scenes to get a leg up on your competition is worthwhile.
If you’re selling, your REALTOR® can get to work marketing your property right away, getting it ready for staging and compiling documentation, all without disrupting your routines too much.
By now you know interest rates impact the Canadian real estate landscape and that likely isn’t about to change any time soon. Making the right decision at the right moment seems like a lot of pressure when you don’t know where interest rates will be on a month-to-month basis.
Thankfully, REALTORS® monitor market trends and housing data to make sure, whether you’re buying or selling, your best interests are being kept top of mind. Don’t put it off any longer. Find your REALTOR® today along with the mortgage you can afford by scanning the QR code below.
— REALTOR.ca