Mixed signals: Why it's hard to tell if Canada's real estate market is hot or not right now

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The Financial Post asked realtors in Vancouver and Toronto to assess whether the housing markets are hot or not. Read more here.

Inspections

“There has been a lot of dialogue around inspections,” Heaps said. “It’s not that buyers are completely foregoing it. Sellers are just opting to have their own. Because of this, inspection clauses are just not that common anymore.” While it involved paying the cost upfront — something homebuyers might balk at — the risk can be worth it if you aren’t paying top dollar for the home.The use of offer dates — when a home is strategically priced to attract numerous bidders on a fixed date following a showing — was a hallmark of Canada’s hot real estate markets.

But Heaps said that while inventory is tight, the market dynamic has shifted because of rising interest rates.Advertisement 5“We’re aware of the impact of interest rates, and we’re strategically pricing to still create interest and bidding wars.”“The likelihood of receiving multiple offers in today’s market is not as high as before, perhaps one in 10 homes,” Dinani said.There were 3.2 months of inventory on a national basis at the end of July 2023, up slightly from 3.1 months in May and June.

 

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