Despite tough rate hikes and competitive markets in big cities across the country, Canadians are buying homes. Only in 2023, buying a home in Canada looks a bit different.
The reasons for these shifts in consumer behaviour are multitudinous and complex. Still, we can pinpoint three critical factors: technology, demographic changes and – of course – the knock-on effects of a global pandemic.
With these three underlying factors in mind, let’s explore how Canadians are buying homes now. And hopefully, this encourages prospective homebuyers to experiment with how they view real estate transactions.
This trend is directly attributable to the pandemic. In the early phases of COVID, Canadian real estate markets witnessed “urban flight” and other broad migration switches. However, with restrictions on in-person viewings and domestic flights, buyers got creative – or courageous, depending on who you ask.
Sight-unseen sales skyrocketed, aided largely by advancements in immersive technology and streamlined practitioner/client communication channels. “Zoom Age” buyers transferred their penchant for remote meetings and digital evaluation onto real estate transactions. And despite the pandemic’s lessening influence, this remote approach appears to be sticking around.
With Algorithm-Vetted Agents
When Deloitte released its Fast 50 roundup of the fastest-growing tech companies in Canada this year, real estate experts were unsurprised to see Nobul at the top of the list. The real estate digital marketplace has fundamentally changed how clients and agents form relationships, shifting power to the consumer’s corner. On Nobul, a buyer or seller can vet various agents by inputting their criteria into a sophisticated algorithm. Agents may then compete for the consumer’s business by lowering commission rates, adding services, etc.
As CEO Regan McGee told Businesswire, “Every award Nobul receives validates our vision and inspires our team to continue providing a platform that brings radical transparency and empowerment to both the buyer and seller sides of the consumer experience in real estate.” The homegrown Canadian company has effectively disrupted the realty industry, changing how Canadians view homebuying.
Using Online Resources and Tools
Now is a good time to discuss demographic changes. According to NAR (The National Association of Realtors), 2022 marked the first year when millennials outpaced previous generations as the largest share of homebuyers.
With them, they bring a fondness for self-education and self-empowerment through digital resources. Judging by the volume of online listings services, affordability calculators, mortgage calculators, market conditions indicators, etc., it’s safe to say we’re living in an age where the average real estate consumer is fluent in – and comfortable with – doing their research.
Yes, rate hikes have put a damper on real estate enthusiasm over the past year and change. But the Bank of Canada has indicated that it may press pause soon. So, how are Canadians buying homes in 2023? With optimism – about the future, about the long-term health of local markets and their personal stake in Canadian properties.
The real estate industry in Canada is going through a period of massive upheaval, transformation and disruption. But buyers and sellers can remain optimistic that consumers will come out on top.As an Amazon Associate, Icy Canada earns from qualifying purchases.