Reflecting on Market Summer Chills
As we end the dog days of summer a chill has settled over real estate in Canada’s two hottest markets. The anecdotal reports over the last couple of months – that pointed to the federal government’s new mortgage rules – have been confirmed by the latest figures from the Vancouver and Toronto real estate boards.
In Vancouver, July sales were down more than 11% from June and more than 18% from a year earlier. The benchmark price in the Vancouver is $616,000, up 0.6% from last year, but down 0.7% from June. With a sales-to-active-listings ratio of 11.6%, the real estate board says Vancouver has turned the corner to a buyers’ market.
In Toronto, the closely watched condo market led the decline as July home sales fell 1.5% year-over-year and about the same month-over-month. The new federal rules and Toronto’s land transfer tax get the blame from the city’s real estate board. The average home price in Canada’s biggest city is just shy of $477,000, up 4% year-over-year. But there is a growing inventory of unsold condos building up in the city.
Client Centric Tips
Remain focused on clients’ needs. For many clients, understanding the complexities of mortgage packages is confusing and difficult. A mortgage broker that takes the time to explain, indicate advantages and disadvantages and answer queries is more likely to gain the trust and secure the business of prospective clients. A good referral makes you look good.