New RE/MAX report outlines consumers' sentiments
Despite persistent economic volatility, Canadian homebuyers and sellers are generally optimistic towards the potential of 2023 to bring about a more balanced market, according to a new study by RE/MAX.
In its 2023 Canadian Real Estate Industry Trends Report, RE/MAX said that this positive outlook offsets the various sources of anxiety for Canadians, of which 59% said that they have “at least one concern” related to their buying or selling plans this year.
Among the main concerns are the upward trend in inflation and living costs (34%), the lack of affordable housing options in their vicinity (25%), and the considerable gains seen in rent rates (25%).
Overall, an estimated 32% of Canadians are optimistic about the housing market moderating this year. For Christopher Alexander, president of RE/MAX Canada, these trends mean that the mortgage and real estate industry should focus on client service, education, and transparency.
“A moderating market could mean some major shifts in how brokers run their business,” Alexander said. “We may start to see some consolidation as brokerages adapt to the economic slowdown. On an individual level, part-time agents could have a harder time progressing, as they may not be able to meet the needs of Canadians, or their brokerages. And one-on-one, personalized meetings with clients will be more important than ever before.”
Another 22% of Canadians approve of new developments that would address the need for “missing middle” housing. Majority of Canadians (66%) believe that addressing the affordability and supply crisis should be a top priority for governments at all levels, with 41% saying that eradicating red tape in the development process is a key step in ensuring housing availability.
“The potential widespread impacts of our housing crisis can be mitigated, but challenges need to be tackled in a coordinated, strategic effort by all levels of government,” Alexander said. “For that to happen, some tough decisions need to be made.”
