Flourishing new technology and generative AI looks to offer professionals plenty of tools for success. Perhaps most paramount, however, is access to information and the ability to analyze that data, in order to make informed decisions. 

In real estate, with buyers and sellers seeking an edge to get the most value, those who are better equipped at data aggregation and analysis are poised to succeed, especially in times like now when markets are tense and chaotic.

As Jeremy Dawn, founder and CEO of SNFLWR Investment Corp. attests, technology and apps have revolutionized the real estate investor game, enabling investors to find properties that cash flow even in tough markets.

“One of the most significant shifts has been the availability of data. In the past, investors had to rely on traditional sources such as real estate agents and property managers for information about potential investments,” he notes. “Today, a wealth of data is available online, including property listings, rental rates and market trends. This data can be used to identify properties that are likely to generate positive cash flow.”

A desire for better information access and analysis methods to make sound investment decisions

When investor Liz Macey couldn’t find an ideal tool to identify money-generating properties based on her needs and parameters, she set out to create one.

Macey founded UnitIQ and explains the platform helps investors find and invest in properties that cash flow. “We’re able to take data from a whole bunch of different sources and make this search process a whole lot easier. We have active listings in the country with vacancy rates and rental prices, and we use financial analysis tools to find cash flow.”

Macey, whose diverse professional background includes an MBA and a pilot’s license, developed the platform after realizing how overwhelming it can be to know how and where to level up her investing. She wanted better access to information and improved ways to analyze what’s available to make savvy choices.

“(This) is a pain point for investors and realtors, especially when you’re looking at multiple communities. It’s a lot of data when you’re trying to find good opportunities.” She explains with UnitIQ, users can input their different parameters, such as budget or downpayment.

The tool will offer both a free model that allows for a basic search as well as a paid subscription tier aiming to serve agents. The latter option will incorporate advanced analytical tools: agents can create multiple profiles and specific searches for clients and have the ability to export data with custom branding.

Analytical systems and generative AI: Promising, useful tools to help clients

Eva Landreth champions such newfound tools as essential to success. A realtor with Century 21 Millennium Inc., Landreth has found success using analytical systems such as HouseSigma and AirDNA to connect clients with investment properties and secondary chalets in Ontario, with a focus on short-term rentals.

“It’s amazing,” she says of what’s possible. “Before you buy a property, you can see revenue, trends, occupancy and price strategy. You can compare similar properties on a street, look at property manager companies and really get to know the historical data, seeing if certain properties aren’t performing well,” she explains. 

Generative AI proves a promising tool as well, one that Landreth is also leveraging. “I think people are using the basics,” she says. “I don’t think people have unlocked all its potential. You have to feed it smart information to get out what you want. I think it’s just going to help our job, make things go a lot quicker — the mundane tasks, it will make easier.”

Dawn concurs, noting that tools and technologies have made it easier for investors to find and analyze potential investments, manage their properties and communicate with tenants. “They’ve also helped to level the playing field, giving (investors) access to the same data and tools that professional investors use,” he points out.

Tools and tech will never replace the human touch

Dawn feels that as technology continues to evolve, investors can expect to see even more innovation that makes it easier to find properties that cash flow and aid in decision making, saving time and money and ultimately achieving financial goals.

Still, Landreth believes you need that lived experience, wisdom and connection with clients in order to provide the best guidance. “The tools will help you get the market trends and find the hidden opportunities, but you still need that human touch. If you’re just looking at the data, you don’t have the human interaction and expertise in the local market.”

While a more diverse tool kit may prove useful for investors, there is concern about its effects on renters and those seeking to buy their first home. Macey notes some of UnitIQ’s users are prospective first-time homebuyers, and that potentially more data about property management companies will help improve the rental market.

“Investing in real estate is a tricky conversation to have when you’re considering everyone in the economy,” she says. “My hope is that we’re able to end up having more rental properties on the market, helping increase the supply so that hopefully you can find a home more easily.”

A Vancouver-based startup is changing the way realtors and buyers assess condominiums and townhomes, making the process more efficient and transparent.

Eli Report is an online tool powered by artificial intelligence (AI) that scans and summarizes condominium and strata documents, culling important information with speed and accuracy.

Aims to make understanding the health of a building and rules around living easy

“We wanted to help realtors save time on critical issues,” says Eli Report CEO Thomas Beattie. “This type of knowledge, when properly equipped, allows them to improve their negotiating position. It’s delivering value for them.”

Beattie describes it as a “breath of fresh air” from the client’s perspective. “It’s a single snapshot report about any lifestyle restrictions, critical issues and other things you wouldn’t be aware of in a new community.”

The Eli Report first started about six years ago, looking to solve a simple problem: to make understanding the health of a building and rules around living easy. It’s applied to condominiums, townhomes or any buildings or developments where a board issues rules to residents and owners collectively share responsibility for common areas.

A ‘huge time saver’ — strata or condo documents can be ‘fairly long and very convoluted’

“Strata documents are fairly long,” says Greg Zayadi, President of rennie, a company that provides real estate consulting to agents, developers and communities. “Some are very convoluted, with years worth of information basically about the health of a building. If you’re a realtor representing a buyer, that’s very important information to understand when you’re advising someone what they should pay, what they should value and if there’s liability.”

An early adopter, Vancouver-based agent Hani Faraj has been impressed not by just the efficiency of Eli Report, but the accuracy as well. 

“It’s a huge time saver,” he says. “When I started using it, I was blown away by how quickly I can pinpoint stuff.” Faraj notes it can cut some reading in half, down from many hours to only a few. “You still have to read, it’s not going to read it for you, but it’s fully transparent. My clients love it. It only adds professionalism to our industry. On our team, every realtor uses it.”

Faraj relayed a story about how a colleague was fined for failing to read a strata document and providing quality support for his client. He also noted he couldn’t think of a moment when the program was wrong. 

Accuracy of the report: ‘We’re very confident we are not going to hallucinate’

Beattie cited only one time in six years that a report raised a question; it wasn’t an inaccuracy, just something that wasn’t yet programmed by the team.

Its accuracy is due in part to the fact that Eli Report does not use generative AI — it’s not trying to create or speculate, but instead, extract.

“It’s designed to pull out anything that’s possibly relevant, even if it’s potentially irrelevant,” says Beattie, who notes his team also reviews the results. “We’re very confident we are not going to hallucinate. Everything you see that’s data-driven is manually approved and reviewed by me or my team. We check everything before it goes out.”

May give pause for sellers

Maria Senajova, also out of Vancouver, is another longtime user, citing Eli Report as a tool for efficiency as well as safety. She doesn’t depend on it completely, but it serves as useful information for clients as well as a third set of eyes on the documents. 

“It offers a quick snapshot,” she says. “It’s really helpful for clients to start getting engaged.”

Senajova only uses it for her buying clients, as due diligence is on the buyer. The transparency that Eli Report offers, however, may give pause for sellers.

“I can see why sellers or listing agents are a little more reluctant,” she says. “I highly recommend it to buying agents.”

Indeed, Faraj was able to leverage information about an upcoming building assessment in a report to take some money off the sale price for his client.

Zayadi wants to see more agents and boards using Eli Report. “We’re talking about consumer protection,” he says, adding there is value in the insurance world as well, as data aggregation and access to key information could help mitigate costs when determining the health of a building.

For Beattie, it has always been and continues to be about providing all the necessary information for clients when looking to buy a condominium or townhome. “It’s the biggest investment most of us make in our lives,” he says. “Whether it’s a starter home or an investment in our future, I certainly believe it should be easier than it has been.”

At the age of 62, Larry Anderson was ready to retire. With 30 years as a licensed agent, including 28 years as a brokerage owner, along with time as a builder before all of that, he was exploring options for his future. Having been with Sutton Realty since 2000, Anderson was preparing to move on.

“It was getting long in the tooth,” he says. Not long after those thoughts, however, came an exciting change that spurred him to keep going.

A new leader and vision

Ross McCredie, founder and past CEO of Sotheby’s International Realty Canada, bought Sutton in December 2023, promising to revitalize and reinvigorate the historic Canadian group. McCredie saw an opportunity in a company with a lengthy history and a vast network of agents and offices around the country.

Almost half a year after the purchase, McCredie spoke about empowering agents, facilitating access to better information and updating an older brand to something more fresh and dynamic.

“In five months we’ve moved the needle quite a bit,” he says. “It’s not easy to touch something that’s been around for 40 years.”

McCredie recently unveiled a new, updated version of the Sutton logo that’s meant to herald a new direction for the iconic name:

Source: Sutton

Empowering agents and advocating for homeowners

Among his main goals is to raise the profile of the real estate agent, allowing them to create a large footprint by being positioned as experts for not just the client’s financial present, but their future as well.

“The biggest thing is empowering agents to have access to data and information they don’t currently have and having them work with clients in advance,” he says, referencing countries like the United States and Australia where there’s more available relevant information, like market trends, net migration and capital appreciation, including the performance of buildings and highrises over a longer period of time. While he’s working with institutions and governments to gain access to more data, he also says, “Agents are going to do a lot more than they used to.”

“We’re advocating strongly for homeowners. The range of experience homeowners get is from amazing to horrible. We want to standardize a level of service. And I think we’re well on that way.”

Part of that endeavor means changing the mindset of agents and the brand as well. 

‘The agent is a true fiduciary, focusing on the client long-term’

McCredie wants to position Sutton as not just a real estate company, but a wealth management group that can work with clients over years. “It’s been a transactional business model in Canada for 70 years. People are reacting to situations, but they’re not proactive.”

“I think Sutton should be positioned as a wealth management company working with one of the most important assets you own,” he says. He talks of agents working with clients over many months and even years to save up money and purchase property at the ideal time, and then continuing to work with them long after the purchase is complete.

“The realtor is not going away, they just need to be a lot better,” he says. “The agent is a true fiduciary, focusing on the client long-term. The real estate agent of the future needs to act as a quarterback and needs to be actively working with the client.”

All of this is why Anderson is excited at the moment and hopeful for the future.

“Change is good,” he says. “I’m always up for change, and for challenges. I put off my retirement to do what I can, to do my part and help Ross and the team.”

Happy with the progress, looking forward to the future

Both McCredie and Anderson want to see the Sutton brand restored after what they feel was some stagnation. Anderson recalls Sutton being the first to give agents branded websites and personal emails and sees McCredie as taking those once innovative ideas and adding to them.

“Sutton did an amazing job when they started,” says Anderson. “The last 10 to 15 years, they’ve lost momentum I guess, I don’t know what caused it. That’s where Ross saw the opportunity to just add a bit more energy and turn it into a powerhouse.”

Anderson speculates he might work another five years now after considering walking away from the industry. “I’m excited,” he says. “I’m excited to be dealing with our marketing department, revamping my office, redoing my personal branding and following the new brands. It’s fun again.”

McCredie echoes the sentiment. He’s happy with the progress and looking to the future.

“We’ve reenergized offices (and) built a new website, we’re adding more people as we go and we’re having fun,” he says. “It’s been a hard five months, but we’re coming out the other side. The foundation has been cleaned up and we’re ready to build a house everyone will be proud of.”

Photo source: Sutton.com

As artificial intelligence (AI) becomes more readily available with widespread uses, the housing industry is looking at ways it can help agents and clients alike.

While there has yet to be an industry-wide mandate or initiative when it comes to AI, some agents have begun to embrace the technology, seeking ways to make work more efficient while also testing the limits of what it can currently do.

Cloning tool for lead-response videos

“It’s exciting and scary at the same time,” says Tom Storey, sales representative with Royal LePage Signature Realty, who has been using AI to create and enhance content and advertising materials. He conveniently has it as an app on the main screen of his phone.

Storey sees a lot of potential in using video generators such as HeyGen to connect with potential clients and send updates and timely information throughout the buying process.

“You can automatically have an auto-generated version of yourself reach out and introduce yourself,” he explains, adding that AI allows for personalization so that you can have the right name and phone numbers in the video.

Storey is referring to HeyGen’s cloning tool, in which you can create videos with your likeness and voice without having to actually perform in front of the camera each and every time. He feels the technology is close, but not quite there yet. “I wouldn’t feel comfortable yet sending an AI twin of me as an automation.” 

“That’s where I think it is really going,” he continues. “With a lot of the online leads, just how you can personalize an interaction is going to be mind-blowing.”

ChatGPT for marketing materials and feedback

While video generators look promising, there are plenty of practical AI uses taken up right now. Asif Khan, broker/owner at Re/Max Prime Properties, employs ChatGPT to help hone marketing materials and provide feedback. “A lot of our agents are using it as a ghostwriter and guide,” he says. “They use it for marketing and advertising pieces and virtual assisting, rather than relying on AI to simply replicate or duplicate.”

“Most of our team leaders are using it; they realized it’s something that can assist them and help clients to move forward, like any new technology. “

‘You really have to know what you’re asking for’

Both Storey and Khan admit there is a big learning curve, and most agents are learning on their own or in small groups. “I’ve definitely used it to create marketing pieces based on the web, but you’re going to get out of it what you put in,” says Khan.

“I create graphs or marketing materials, and then tweak results to form more of what the final product will be. You always have to add in the human element, take out stuff that isn’t relevant, make it so that it’s accurate.” But, “You really have to know what you’re asking for,” he cautions.

Like Khan, Storey finds AI useful in making tedious work a lot quicker and easier. ChatGPT, for example, can write video summaries and index longer content to make it more user-friendly. “I use ChatGPT like I used to use Google. I ask questions, and I’m using it a lot to get content ideas. It could write a script for the video.”

The hope: Help prospects better choose the right agent and buyers get insights and stats

While the technology is still relatively new, the hope is that by creating more easily accessible personalized interactions and content, potential clients will be better able to pick the right agent and make more informed choices faster. Prospective buyers can also use AI to find up-to-date market trends, statistics on a particular neighborhood and even predictions.

For pre-construction properties, Khan foresees the ability to create walkthroughs for clients before the finished space is ready.

“It’s so new, we’re still learning where we can use it appropriately,” he says. “We’ll see where it’s going to benefit us most, go through the next year or so, clarify that, and apply it.”

Neither sees any big problems for AI in the market at the moment, though they admit that’s in part because it doesn’t seem too popular right now. Khan also points out that the learning curve helps to differentiate those who have taken the time to understand AI best practices and those who are cutting corners. 

A tool to enhance rather than replace jobs

The pair also sees AI as a tool for assisting positions instead of an entity that will replace positions.

“I think the big fear is that it’s going to replace people,” says Khan. “But we’re finding out now it won’t really eliminate positions, but it will allow people who use it to help with marketing and creating graphics and charts.”

“It won’t replace your admin,” echoes Storey. “It’s a tool. There are some ways you can use it, and for me, it’s very clear. It simplifies my content creation and allows me to meet new buyers and help sellers sell.”

Alberta is calling not just residents, but real estate agents, too.

As Canadians continue to flock to the province in search of better value in the real estate market, so too have agents looking to profit off of the increased interest. The surge of not only residents but also licensed professionals is a mixed bag according to some local agents on the ground.

Dramatic rise in applications for Alberta licensing

“There’s an unbelievable amount of people currently in the system looking to get their license in Alberta,” says Brad McCallum, realtor and owner of the McCallum Group, which is with Real Broker and based in Calgary. “Five or six months ago, it was anywhere from 3,500 to 4,500 people, or maybe even a higher number, enrolled in some part of their process to get licensed in Alberta.” 

A rush of new agents is joined by those who are interested in transferring. From January 2018 to December 2020, the Real Estate Council of Alberta (RECA) received 399 mobility applications from agents, already licensed in one province, looking to get a license in Alberta. That number rose dramatically from January 2021 to February of this year, with 1,385 applications across both real estate and mortgage. The majority came from British Columbia and Ontario.

Calgary: A competitive market for both buyers and agents

“Being a brand new agent in this market is probably tough,” says McCallum. “There’s very low inventory in the city and only so many transactions. This year was a slightly slower start, but our team of five is catching up now. There are lots of deals going on conditionally. It’s atypical business.”

Alberta in general is trending alongside the rest of the country, with a 2024 buying season well underway, where inventory is minimal, sales are brisk and bidding wars continue to pop up on occasion. Calgary in particular remains a competitive market, drawing interest from those in Vancouver and Toronto especially. 

According to the Calgary Real Estate Board, compared to the year before, February saw sales increase (22.8 per cent) and the benchmark price increase (10.3 per cent). In the same period, average days on market decreased (26.8 per cent) and inventory decreased (14.2 per cent). It adds up to a competitive market not just for buyers, but for agents as well.

A ‘capitalistic’ strategy ‘based on a scarcity mindset’

John Carter, broker/owner of Re/Max River City in Edmonton, is wary of agents who are working in Alberta without physically being there. He sees it as selfish, with these out-of-towners looking to profit from an interest in the province without doing the hard work on the ground.

“It’s very capitalistic,” says Carter. “It’s not about serving clients. It’s based on a scarcity mindset.” He says the vast majority are “with some brokerage no one has ever heard of” and have a 647 or 416 area code. 

“They’re writing an offer sight unseen,” and, in his opinion, “There’s a lot of negligence … They’re not practicing to their realtor’s code in Alberta, and not cooperating well with realtor colleagues.”

Carter supports the idea of mobility among provinces: he was licensed in Ontario from 2011 to 2014 and has been licensed in Alberta since 2002. However, he wonders if the process is too simple and can be taken advantage of. 

“That’s failing right now,” he continues. “I like the idea of mobility, but we’re finding I would say less than 20 per cent of agents in my firsthand experience are relocating.” According to Carter, “The vast number of professionals feel the barrier of entry to be too simple, too easy.” As a result, he says, “There are too many that aren’t following the rules.” 

Carter references examples of agents from out of town without access to the local board who call the listing agent, as well as others who don’t want to refer clients so they don’t give up a commission. While he doesn’t necessarily think all of these actions are predatory, sometimes it’s a lack of knowledge about rules and competency on the part of the agent.

Some try to skirt RECA’s rules but ‘the low road isn’t going to raise your business’

Arthur Chan, real estate broker at Re/Max Hallmark Toronto, is among those who recently got licensed in Alberta. When asked about the main reason for doing so, he says, “To sell, promote pre-construction projects in Calgary. “I wanted to offer my clients and investors an entry-level price of homeownership that’s more affordable vs Toronto. I’ve relocated over six families in the past eight months.” 

Chan, who’s been an associate at Re/Max Central in Calgary for about 18 months, says he uses Zoom, Google Maps and other software to assist clients remotely, but he also makes sure to get on the ground. 

“As for my clients wanting to buy resale, I fly down with them and conduct showings in person. They can get a better sense and feel of the neighbourhood and dwelling before making the purchase, and that type of feeling can only be evoked in person.”

Chan does note there are those trying to skirt the rules. “Some agents have been channeling (hiding) through builder’s referral agreements. However, that’s circumventing RECA’s strict policy and a major violation.”

McCallum acknowledges that there may be some bad actors but that their way of doing business simply won’t succeed. “There’s always going to be those realtors in the marketplace, but the low road isn’t going to raise your business. Consumers are pretty smart and people are doing a lot of research.”

Being on the ground: A huge advantage

His group is particularly active on social media and YouTube and credits some of its success to attracting those from out of province to come to Calgary.  While McCallum has been in Calgary for many years, he’s happy to serve residents as well as those looking to move there. An increase in remote work and shifting social priorities make Calgary attractive to many in B.C. and Ontario, contributing to his success. “I’ve only got a business because the world is willing to change,” he points out.

Part of the reason the McCallum Group is doing well is that they’re on the ground, which is a huge advantage compared to agents working remotely. “If you’re not there, if you don’t have someone on the team in the marketplace, someone to turn off the lights, lock the door, be present for a showing, there are definitely challenges.”

In such a tight market, Carter sees the lack of presence as negligence, putting the client at a disadvantage and susceptible to overpaying more or losing out on bids entirely simply because they could be alone with a listing agent there to support the seller, not the potential buyer. “How can you do comparables, pricing and strategy?”

In addition to providing the best service to clients by being physically in Alberta, there’s another reason Chan doesn’t mind flying out to Calgary. “I find it’s more laid back,” he says. “No one seems to be in a major hurry.”

“We have the most affordable housing in all of Canada, pretty much any city,” Brian Jean, Alberta’s minister of jobs, economy and northern development, said in March 2023. “They can sell their house in Toronto or Vancouver, buy four houses here in Alberta and live in one and rent three.”

Over 100,000 migrated in four years, at least as many more expected by 2027

Many took up the offer. Statistics Canada reported from July 1, 2022 to July 1, 2023, Alberta’s population grew by 4 per cent, with over 55,000 more people moving in than moving out. In four years, Calgary’s Housing and Affordability Task Force believes that number surpassed 100,000, with another 110,000 coming in the next few years.

The negative consequences of such a campaign are being realized as those moving into Alberta are finding their dollar goes farther, while those in Calgary are seeing prices increase.

Migration seen as problematic for long-time Calgary residents waiting to buy

“My clients who have been here for 15, 20 years are trying to get into the market, and the down payment they had is not good enough anymore,” says Anthony Lewis, a Re/Max Real Estate (Central) agent.

A lifelong Calgarian and realtor of over 10 years, he points to the migration as a problem for those who have been living in Calgary and waiting to buy. “People from Ontario and B.C. are coming in, and now it’s too pricey for (my clients) who want a detached home. Now it’s a townhouse or condo apartment.”

More market tenacity from non-Albertans

The province in general and Calgary, in particular, are seeing the same trends as the rest of the country in anticipation of interest rates going down: low inventory and more competition as people ready to enter the market. This leads to more tenacity from some buyers, particularly from outside the province.

“I get a lot of people from Ontario and B.C. offering sight unseen,” says Lewis.”They want to buy an investment property in Calgary, so we have video calls. I’m seeing unconditional offers which may be normal in Ontario, but over here we’re like, ‘get the home inspection.’”

About the Alberta campaign and its marketing efforts to Ontario and British Columbia, Lewis feels it’s “not really doing any favours to home ownership in Calgary.”

Issue seeping into local rental market

It’s not just prospective homeowners who are feeling squeezed; Calgary is seeing their rental crisis exacerbate.

The February 2024 housing report by Rentals.com notes the average Canadian rental price for a one-bedroom unit rose by over 12 per cent. This follows a 19.2 per cent increase from the previous year. Notably, studio apartments, typically the cheapest rental option available, saw their average price rise by over 30 per cent — meaning those seeking out the least expensive option are finding it tougher than ever to secure a place to live.

What’s more, this year CBC reported a dim outlook by the Canadian Mortgage Housing Corporation (CMHC), with vacancy rates set to drop as prices increase and the market tightens. The CMHC January 2024 report noted the average price of a two-bedroom residence in Calgary is $1,695, an increase of 14.3 per cent in one year.

“Where is everyone going to live?” asks Lewis. “People are getting kicked out of their homes.”

More agents, more competition — including from outside Alberta

The influx of residents has increased the number of licensed agents in the province, as well. 

The Real Estate Council of Alberta reports that since January 2021, it received 1,385 mobility applications from real estate agents and mortgage brokers outside Alberta to become licensed in the province. The three-year period previously saw only 399 such applications.

In addition to the rise of licensed agents to deal with the increase in transactions, there’s more competition. So, Lewis and others must face being skipped over entirely.

“Builders here are marketing to people directly in Ontario,” he explains. “I had this problem two years ago, where I was trying to get a presale for this condo, but they weren’t marketing to Calgary real estate agents.”

Increased unaffordability a growing concern: “This is our reality”

While Lewis acknowledges there’s more money to go around for agents, he worries about the increase in people who can’t afford to live there.

“We need to slow down, we need to look at what’s happening,” he says. “It’s out there now that Calgary is a nice city, and that’s what brings everyone here, but I don’t think it can slow down, and I don’t think the government wants it to slow down.”

He does have some advice for fellow agents facing similar dilemmas: “All we can do for the buyers we have that aren’t out of province is paint the picture of how it’s going to be,” says Lewis. “You’re going to be competing against five other people, and three of the five will be from B.C. or Ontario and will go over asking. This is our reality.”

The 2024 buying season kicked off early this year, as hopeful homeowners all across Canada looked to take advantage of an opportunistic environment for the first time since the early pandemic.

With Bank of Canada interest rates holding for the fourth consecutive time, and the anticipation of a cut to come in the months ahead, viewings, purchases and even some bidding wars are on the rise. Many prospective buyers seemed to have predicted the rate hold, getting in early on the chance to finally acquire a home.

Someone “flips a switch” each year

“I don’t know how else to describe it, but every year it seems someone flips a switch,” says Lindsie Tomlinson, a Re/Max Select Realty agent in Vancouver. “We go from the slowness of the winter holiday season and then someone flips a switch, and it gets really active and busy. It usually happens later in January and into February or March.”

She says that this year, it happened “really early in January, even before the interest rate announcement.”

Tomlinson anticipates a busy spring season, particularly compared to last year, with Vancouver and the surrounding suburbs already seeing a lot of interest. She says she still has clients who have been waiting for months for the right opportunity.

She was one of several agents across Canada who spoke to REM about the current state of the market. They all noted that despite optimism for a busy season, one problem remains all over the country.

The consistent problem across Canada: Supply

“There’s limited inventory,” says Simon Hunt of Simon Hunt Realty in Calgary. “The market is going to be pretty tight.” He reminds us that inventory was limited in 2023, but sales were down; he also anticipates a busy season with sales already brisk and some bidding wars popping up.

There is a similar sentiment elsewhere in Alberta where Samantha Sajjad, an associate at MaxWell Devonshire Edmonton, is seeing plenty of bids and not a lot of options. “Our market seems to be doing extremely well along with Calgary,” she says. “Buyer confidence is high. We have lots of out-of-province buyers coming into Edmonton, either those who have been here for a bit and have been renting or those who are virtual.”

Potential buyers looking to get a deal moving to the Prairies or Atlantic Canada have likely missed the opportunity available during the pandemic.

The same trends are taking place in Nova Scotia, where agent Brenda K Kielbratowski of Keller Williams saw a busier month of January than the same time in 2023, with buyers and sellers attuned to the new normal. “We’ve acclimated to it now,” she says of the past interest hikes. Now that the Bank of Canada has been holding rates, “buyers are back out there looking.”

While she notes the days of the wild bidding wars are over, there simply aren’t a ton of options. “I don’t see the supply and demand balancing out. People aren’t selling their homes. It’s an inventory problem.”

Most sales at or just above list price

The consensus across the country is most sales end up at or just above list price. While bidding wars do exist, the number of parties involved isn’t as large as it had been, and the padded offers aren’t as outrageous.

In Ottawa, Chelsea Hamre has been busy. She saw people start buying as early as January 1, with clients prepared for an interest rate hold and ready to jump. “The market has been really good for us, as a team, as a whole, with a great amount of sales,” she says of the Hamre Real Estate Team. “Buyers are out buying, sellers are considering, but there is still an inventory crisis.”

More activity in the GTA, interest rate drop may not impact much

The GTA sees all the same opportunities and drawbacks as the rest of the country, with increased activity but limited inventory.

“After the interest rate announcement, the market started to heat up a bit, and with the possibility of the Bank of Canada reducing the rate in March or April, I think (it) sparked buyers to get in,” says Re/Max agent Anuja Kumarasamy. “There are more showings and offerings but in terms of prices, I haven’t seen a real increase. They are still according to market value.”

Kumarasamy, who is mostly in Durham and Scarborough, sees more people getting in once the interest rates officially decrease but does wonder if the announcement is more psychological than practical. “Some people are waiting for the announcement because they’re not confident enough yet,” she says. “Even if they drop it, it’ll be like 0.25 per cent. It isn’t really going to impact how much more you can qualify for.“

Other agents wondered that while interest rates may decline this year, this could result in list prices ticking up slightly.