May 19, 2023

Views On Real Estate Values More Positive Across Country, Nanos Research Finds; Coldwell Banker Canada Experts Share Perspectives

by Coldwell Banker Canada

May 19, 2023

Consumer confidence among Canadians continues its upward trend thanks in large part to the improving sentiment around the value of the real estate where they live.

That’s one key takeaway from the latest Bloomberg-Nanos Canadian Confidence Index.

“With a score above 50 points on the 100-point diffusion index, Canadian consumer confidence is in positive territory,” said Nik Nanos, Chief Data Scientist, in a released statement on May 15.

“Of note, this trend has primarily been driven by more positive views on the future value of real estate which is up 12 points in four weeks.”

The independent numbers from Nanos sparked comments across the Coldwell Banker Canada brokerage network, starting in:

Victoria

Mark Rice of Coldwell Banker Oceanside Real Estate said consumer sentiment in the Victoria market is running “quite a way further up the confidence track.”

Rice said the Bank of Canada’s recent decision to hit the pause button on interest rate hikes has meant a green light for the Victoria market.

“Don’t lock in, get yourself a variable mortgage and you’re buying at the low and then the value of the house is going up and the cost of borrowing for the house is going down,” said Rice. “I feel very much that’s what’s driving the market here now. As soon as the rates stopped moving, the second the Bank of Canada did not raise the rates, as soon as they stopped raising rates, the market took off.”

Rice said lower rates would see more sidelined buyers able to qualify and re-enter the market, but a stable rate, he said, even a stable rate at the relatively high level in place now, is key to maintaining momentum.

“No, it doesn’t have to go down, it just has to stay the same now,” he said, “because people can feel confident that it isn’t going up. When rates are changing, people are leery of the change.”

Rice said the prevailing sentiment in some parts of the Victoria market is that “if we’ve reached the top of the index regarding interest, then that argument could be taken to the next step to say we’re at the bottom of the price index. And as rates shift back down, purchase prices are going to go back up with it.”

Winnipeg

Jay Gajjar of Coldwell Banker Canada Elite Realty said he is seeing “more serious buyers coming out right now compared to the last six months.”

Gajjar, whose brokerage opened in February of 2023, said the keenest attitude toward the improving market is centered on available homes closer to the average price range of approximately $300,000 to $550,000.

Gajjar said an interest rate that does anything but rise will translate into more confidence in the Winnipeg market.

The expectation is that once there are more news reports about interest rates dropping, or stabilizing, there will be a big improvement in the market, he said.

Gajjar said the average house price in Winnipeg will increase. Faced by growing numbers of potential buyers not bound by interest rate jitters, sellers will “eventually start listing their homes at higher prices.”

On April 12, the Bank of Canada announced that it would hold steady at 4.50% its key interest rate. The central bank is scheduled to make its next policy interest rate decision on June 7.

Ottawa

Nick J. Kyte of Coldwell Banker First Ottawa Realty said growing confidence in buyers is tied to the perceived stabilization in interest rates, even in an environment of enduring low housing supply.

“The average residential sale price is expected to continue to rise,” said Kyte. “We are seeing low inventory, fewer properties being placed on the market, and buyers seeing an easing with interest rates, which are hovering around 4.49% for a five-year fixed mortgage.”

This is sparking the confidence that will help turn spectators into buyers of their next home or investment property, said Kyte.

“Ottawa remains a safe and stable economy for real estate investment,” he said.

Bloomberg-Nanos Expectations Index

The weekly Bloomberg-Nanos Expectations Index is based on surveys for the economy and real estate prices. The real estate question is: In the next six months, do you believe that the value of real estate in your neighbourhood will increase, stay the same or decrease?

In the current report, opinion about that question broke down like this:

Increase: 42.3%

Stay the same: 38.2%

Decrease: 15.8%

Unsure: 3.7%

One month ago, the Increase finding was at 30.4%, Stay the same was at 42.2%, Decrease was at 23% and Unsure was at 4.4%

The latest findings were based on a random telephone survey of 1,158 Canadians, 18 years of age and older in which the margin of error is plus or minus 2.9 percentage points, 19 times out of 20.

Coldwell Banker Canada

Coldwell Banker Canada market experts are part of a national brokerage system itself part of an international Coldwell Banker network with 100,000 agents, 3,000 offices and 40 locations. Dig into more of what Coldwell Banker Canada offers you.

Edmonton brokerage owner Steve Houle and business partner Karim Kennedy have acquired the master franchise rights for the Coldwell Banker brand in Canada.

Steve Houle has been with the network for four years as owner of Coldwell Banker Island Properties, operating 18 offices throughout Hawaii. Under his leadership, the company has grown to nearly 500 agents and increased its transaction volume by almost 500 per cent, the company says. Houle was born and raised in Edmonton.

Business partner Karim Kennedy is also from Edmonton and continues to reside in the city. He has a 25-year background in the financial sector working with major institutions such as The Business Development Bank of Canada and Scotiabank. The company says he has a strong track record of assisting companies with execution of their growth plans, particularly through mergers and acquisitions, and he will take on the role of CEO of Coldwell Banker Canada.

Andy Puthon, the current president of the Coldwell Banker Canadian operations and his Canadian team remain with the company, based in the Burlington, Ont. national office.

“This ownership change marks a new day for the Coldwell Banker brand in the Canadian marketplace,” says Liz Gehringer, chief operating officer of Coldwell Banker Real Estate. “This 100-per-cent Canadian ownership structure will provide the organization both flexibility and autonomy, while continuing to be a part of a global network. Steve and Karim have demonstrated the leadership and entrepreneurial expertise to grow the renowned Coldwell Banker brand in Canada. The Canadian team is looking forward to working with Steve and Karim as they explore new opportunities.”

“As the owner of a successful Coldwell Banker franchise operation, I understand the value that the brand offers its affiliates,” says Houle. “As a proud Canadian, I also know the tremendous potential that is present in the Canadian real estate market, so I am very excited by the opportunities that the future holds.”

Kennedy says, “The affiliates now have the access to leverage this team’s deep insight and expertise to exceed their business goals. Combined with our collective strength across a viable Canadian real estate landscape, many advantageous opportunities abound to help affiliates take their businesses to greater heights.

“We additionally value their input and will be engaging with brokers across the country as we build our vision for the future for Coldwell Banker in Canada, and its affiliates from coast to coast and provide a compelling destination for prospective franchisees.”

The brand first came to Canada with its first international franchises in 1989 and achieved dramatic growth through a joint venture with Canada Trust in 1992. The parent company of Coldwell Banker Real Estate LLC, based in Madison, N.J., acquired ownership of Coldwell Banker Canada in May 2007. The Coldwell Banker Canada network has independently owned residential and commercial franchised offices across Canada from coast to coast and also in the Yukon and Northwest Territories.

Views On Real Estate Values More Positive Across Country, Nanos Research Finds; Coldwell Banker Canada Experts Share Perspectives

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