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Changing Canadian Real Estate Markets Has Many Homeowners Questioning Home Values

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Published
11/18/2019

The Canadian Real Estate Market is rapidly changing, and these changes are making homeowners question the value of their current properties and what their house is worth.  Since the Canadian Real Estate Market is experiencing many ups and downs and is volatile right now, this is a serious concern, especially when a homeowner is considering a pending sale.  Homeowners do not know when or if to sell or when the market will stabilize.  Dozens of reports and statistics exist for both residential, commercial and new structure sales in Canada and every homeowner that is considering selling and wondering how much their house is worth should avail themselves of these statistics when making any type of decision to sell. 

Just like in every other country, there are many homeowners in Canada that try to sell their homes by themselves, offering “for sale by owner” residences.  While this saves the commission paid to a Canadian real estate agent, it can take longer to sell a home this way and many times the owners are unaware of the laws and regulations involved in sales of real estate within Canada.  This can cause unforeseen problems, and actually end up costing the seller more than would’ve been paid to a good Canadian real estate agent.  Homeowners in Canada can now list their own homes on the MLS (Multiple Listing Service), just like in the United States, but these individuals do have to do a ton of research and know how to market and evaluate their properties effectively.  The time and effort to do this can lead to a much-delayed sale of the Canadian property. 

Because of the volatility due to changes in the Canadian economy, Canadian real estate agents and the Canadian real estate industry as a whole are trying to adjust and meet the needs of their current customer base, the Canadian consumers, who are either buying or selling.  The most volatile markets in Canada at present seem to be Toronto and Ontario, and these provinces are seeing the most expansion in both residential and commercial real estate.  Values can go up, but also can drop precipitously without warning. Market pricing valuations and price caps come into play as well and wise homeowners and/or investors routinely check on surveys done within their areas to gauge the best times to buy and/or sell properties. 

Many reasons for the precipitous ups and downs of the Canadian Real Estate Markets, like all markets internationally, seem to be the unpredictability and volatility of the financial markets.  The financial markets have an impact on most other markets worldwide, and the rapid changes within the financial markets have homeowners in Canada constantly wondering how much their house is worth and when is a good time to buy and/or sell.  Tax matters can be difficult to comprehend and adjust to as well for homeowners, and even real estate investors in both the United States and Canada.  Governance over real estate matters and tax issues differs in each country and because of its differing provinces and territories, buying and selling real estate both privately and as an investor can be more difficult in the Canadian markets. 

It’s really difficult for any homeowner in Canada to genuinely predict how much their house is worth, since the market in Canada is predicted to drop by an astonishing 28% in 2020.  That would make it seem imperative that selling would be a good option before the end of 2019, but that also could be misleading.  The general area where a property is located, as well as what is known as neighbourhood “comparables” (homes nearby) are also something that is figured into the value of a home in Canada.  The differing provinces and territories also come into play in figuring out how much a Canadian house is worth, or any property for that matter.  Just as in the United States, many online home value estimate sources exist for homeowners that want to know what their house is worth in Canada.  By typing in a street address, and other location information, Canadian owners can quickly ascertain a certain figure that they can use to judge what their house is worth.  Other factors like size, number of bathrooms and other amenities also come into play, just as in any other part of the world, but a good starting point are these online site estimators.  Dozens exist and an individual can use them 24 hours a day 7 days a week and most do provide daily updates and “comparables” in the neighbourhood.

A homeowner needs to use whatever resources they can before selling to figure out what their house is worth and try to sell it at the best price.  Whether through a Canadian real estate agent or a private sale, knowledge is power in the real estate industry. 

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