CANADA EDITION 1st BIANNUAL 2020 - The Inglis Team
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CANADA EDITION 1st BIANNUAL 2020
Welcome to 2020! Since the start of the new millennium,
the real estate business has changed rapidly. The internet
and social media now grant access to a whole world of
information with just the tap of a screen. Yet even with all
of this information, we still need a bit of help from time-
to-time cutting through the noise and figuring out which
trends really apply to our lives. With this in mind, Buffini &
Company produces its biannual real estate market report
– carefully curated with relevant, up-to-date information
that will enhance your market
TABLE OF
knowledge. Dive into this guide to
learn all you need to know about CONTENTS
what’s happening in your national
scene and with the industry in general. State of the Market 3
Mortgage Stats 4
HELOC vs. Mortgage 5
The Cost of Homeownership 6
Today’s Buyer Profile 7
Today’s Seller Profile 8
The State of the Agent 9
Why I Work by Referral 10
2 Brian Buffini’s Real Estate Report CANADA EDITION
STATE OF
THE MARKET
66.3% Average MLS®
Home Price:
Approximately
The state of the market will differ
of Canadians 463,000
depending on where you live. Still,
you’ll want to pay attention to a few
own homes* $525,125 units were
sold in 2019
national trends.
INVENTORY SNAPSHOT
4.4 Months How long it would take
for all homes on the market to sell.
• This is the lowest level since April 2017,
but inventory is still fairly balanced.
• Long-term average: 5.3 months
INVESTMENT IN CONSTRUCTION IS
UP YEAR-OVER-YEAR**
+4.3% +13.0% +5.1% Condo
Semidetached Row and rental
homes homes apartments
-6.0% Single-family *As of January 2018. **Not seasonally adjusted, as of
October 2019. SOURCES: Trading Economics, CREA,
homes Royal Bank of Canada, Statista, Statistics Canada
3 Brian Buffini’s Real Estate Report CANADA EDITION SOURCE: US Census Bureau, NAR
MORTGAGE STATS
Obtaining a mortgage is a critical piece of the homebuying process. When financing a home or
refinancing a current mortgage, consult with a trusted lender to review the best options.
4.77% 4.56%
Median 4.23% 4.37% 4.27%
4.13% 4.02% 3.73% 3.69% 3.74%
Five-Year
Fixed
Mortgage
Rate
10 11 12 13 14 15 16 17 18 19
20 20 20 20 20 20 20 20 20 20
5% 33% of Most common mortgage for
Minimum down
buyers made homebuyers and refinancers:
payment by law:
a down • Fixed interest rate.
payment • Five-year renewal term.
Down payments under 20% require purchase that was less
• 25-year amortization period.
of mortgage default insurance than 20%
61% of homebuyers impacted
by the stress test purchased a
An increase
compared
to 47%
55% of refinancers
did so about 10 years
home that was smaller or less in 2018 after their original home
expensive as a result purchase
4 Brian Buffini’s Real Estate Report CANADA EDITION
SOURCE: Statistics Canada, Bank of Canada (November 2019), 2019 CMHC Mortgage Consumer Survey
HELOC VS. MORTGAGE
Home Equity Line
of Credit (HELOC) —
Buyers with Combo of HELOC HELOC A loan in which the lender/
Mortgage Only and Mortgage Only bank uses the home as a
guarantee that money will be
paid back.
• Requires higher equity or
76% 17% 5% minimum down payment
if used instead of a
traditional mortgage.
Buyers who obtained a Buyers who obtained a
HELOC by recommendation HELOC with the intention
of their bank, lawyer or of using it as a safety or
broker increased: emergency fund decreased:
56%
26% 48%
11%
2018 2019 2018 2019
5 Brian Buffini’s Real Estate Report CANADA EDITION SOURCE: 2019 CMHC Mortgage Consumer SurveyTHE COST OF National
HOMEOWNERSHIP Average
Home Price:
$525,125
Average Price by Province:
Yukon: $450,275
Northwest Territories: $352,086
British Columbia: $722,700
Alberta: $378,035
Saskatchewan: $278,546
Manitoba: $285,013
Ontario: $631,844
Quebec : $334,599
Newfoundland and Labrador: $248,396
New Brunswick: $180,383
Prince Edward Island: $249,325
Nova Scotia: $248,059
6 Brian Buffini’s Real Estate Report CANADA EDITION SOURCE: CREA (October 2019)TODAY’S
This
decreased
47% 56%
from
BUYER PROFILE of buyers
in 2018
are first-time
Many buyers — especially those new to the
buyers Ontario has the
market — are looking to their real estate agent
to help them find the best home at the greatest highest proportion
value. Here’s a snapshot of where buyers stand in of first-time buyers
the market and what they want to see. Trend to watch: under age 34
The national First-time
Homebuyers Incentive could
attract more new buyers into
Price/Affordability the market in 2020
Top Three
Buyer Right Number of Rooms
“Must-Haves” Main Buyer Concerns
Close to Public Transit Nearly half of homebuyers worry about the following:
Unforeseen Living Paying too
housing with home much for a
costs expenditures home
Homebuyers confident that
87% their purchase is a sound
long-term investment A great real estate pro will use their skills and
knowledge to address these concerns and score
you the best deal.
7 Brian Buffini’s Real Estate Report CANADA EDITION SOURCES: 2019 CMHC Mortgage Consumer SurveyTODAY’S
SELLER PROFILE
TOP 5
HOTTEST
MARKETS TO
WATCH
People sell
their homes for many
different reasons.
Whether they’re upgrading,
1
downsizing, moving closer 4
to family or relocating for Sales-to-new 5
listings ratio hit 3
work, understanding the 2
latest trends makes the
process a bit easier. 63.7%
in 2019, leaning toward 1. Vancouver: Population growth and a strong economy are
a seller’s market drawing buyers back in after a market correction in 2019.
Home resales nationally 2. Toronto: Strong economic growth and stabilizing home prices
shot up nearly make for a healthy market.
13.0%
year-over-year*
Still, the amount
of new listings
has decreased,
3.
4.
Ottawa: Population is quickly increasing as Toronto residents
seek more affordable housing.
Halifax: Economy climbing steadily with record job growth
in late 2019 tightening over the past few years.
inventory of 5. Montreal: Stable and continued yet stable economic growth
existing homes with a market catering toward retirees and millennials.
*As of October 2019
SOURCES: CREA, RBC Economics (November 2019), Royal LePage National
8 Brian Buffini’s Real Estate Report CANADA EDITION Price Composite (October 2019), PwC Emerging Trends in Real Estate 2020THE STATE OF
THE AGENT
The common disruption in
Top Qualities of
today’s real estate industry an Excellent Real
typically stems from Estate Professional
dissatisfied customers. To
succeed in the real estate • Exceptional Sales Skills
• Expert Industry
market, an exceptional
Knowledge
agent must stand out from
• Superior Levels
the crowd and provide an of Service
unparalleled level of service.
Generational THE POWER OF REFERRALS
Breakdown: • 91% of customers say they’d give referrals, but only
11% of salespeople ask for them.
Reward Good Customer
Service with Customer Loyalty • Salespeople who actively seek out referrals earn 4
Boomers: 62% to 5 times more than those who don’t.
Gen Z: 65%
• 47% of top performers ask for referrals consistently,
Gen X: 68% versus only 26% of non-top performers.
Millennials: 78%
9 Brian Buffini’s Real Estate Report CANADA EDITION SOURCES: Closer IQ, HubSpot, Statista 2018WHY I WORK
BY REFERRAL
Relationships are more important
than transactions.
My business is built on relationships, so I work
to provide my clients with outstanding service
and care during and long after a transaction.
You control my business.
Your referrals are the foundation of
my business, so I aim to exceed your
expectations every step of the way.
Service that continues after the sale.
I am devoted to serving your needs even
after the sale is complete. If you need a
referral for a contractor, helpful advice or
an agent for your friend or family member,
I am here to help.
“There is no lead more
powerful than one
MORE THAN 80% 90% & 73% referred from someone
you know — someone
of all transactions are conducted OF BUYERS OF SELLERS who knows you, trusts
through a sphere of influence — the would use their agent again you and will put their
existing relationship leads to the sale or refer them to others
name to you.”
— BRIAN BUFFINI
10 Brian Buffini’s Real Estate Report CANADA EDITION SOURCES: 2019 CMHC Mortgage Consumer SurveyYou can also read
