The purchasing power of households is being squeezed. Today’s homebuyers and sellers are navigating their real estate journey with mounting complexities, uncertainties and frustrations, from economic factors such as the rising cost of living and higher interest rates to the lack of affordable housing and beyond.
Factor in the transactional frustrations linked to the limited transparency in below-market value listing strategies in an already expensive market, and it’s evident why many Canadians are struggling in the current market.
According to Re/Max Canada, most Canadians have at least one concern when it comes to evaluating their homebuying or selling options (59 per cent).
Consumer concerns
Beyond the implications on Canadian homebuyers and sellers, various housing-related factors impacting consumers, such as affordability and inventory challenges, will undoubtedly have a trickle-down effect on the real estate industry and the broader economy.
According to Statistics Canada, the Real Estate and Rental and Leasing (RERL) sector weighs heavily on Canada’s gross domestic product (GDP), representing 13.5 per cent of our national economic vitality. With that, it’s important to recognize that a housing crisis is not restricted to the housing sector by any means.
It’s more critical than ever that Canadians receive professional, sound and strategic advice to both inform them and help them make the best decisions possible.
Amid the evolving housing market and industry, this means counselling homebuyers and sellers in navigating not just the national affordability and inventory challenges but regional factors such as neighbourhood liveability and their environmental/climate risks in the area they choose to call “home.” The stakes are high.
As an industry, what do we need to do?
Get back to basics: Professionalism
Given the critical importance of housing to the larger economy and Canadians individually, it’s time the real estate industry supports the practice of, and encourages consumers to work with, full-time professional real estate agents.
Real estate should not be a side hustle practiced by those looking to make a quick buck. This undermines the credibility of realtors who treat this as a legitimate career, delivering critical advice daily to their clients.
Canadians need to feel that they’re working with credible, third-party advisors who can best educate them on the process and the top trends likely to impact them and provide sound counsel on how to proceed.
Transparency in pricing
The industry also needs to look at more standards of transparency in the pricing of properties, specifically developing a fair and consistent bidding process for buyers and sellers.
It then continues within the offer process among prospective buyers and on the seller side to better manage their expectations. This transparency helps to remove any doubt that a realtor’s top priority is serving and advancing the diverse needs of their client.
Increase supply and affordability
Finally, we need to continue advocating for and supporting the development of an achievable and coherent national housing strategy that aims to increase supply and affordability in every town, city and community across the country.
Collaboration between our federal, provincial and municipal governments is the key to success – through long-term, sustainable solutions.
Specifically, governments should be expanding municipal zoning laws to allow for a greater diversity of housing, such as the missing middle; expanding capacity for laneway developments; and being more strategic and visionary in how we can use existing land to drive our housing supply in a way that doesn’t compromise the health and liveability of our environments.
Take accountability
When Canadians are confronting one of the most financially significant transactions of their lives, as realtors, it’s our duty to provide the best counsel possible. To do this consistently, we all need to get on the same page when it comes to industry standards.
Let’s take accountability, work to ensure that we maintain the high standards of a professional realtor and give Canadian homebuyers and sellers what they really deserve.
To dive deeper into the key economic and transactional trends that are likely to be most influential this year, please view Re/Max Canada’s 2023 Industry Trends Report here.
Christopher began his career as a Re/Max Sales Associate at an independently owned and operated brokerage in 2010 before joining sub-master franchise Re/Max Integra as a Franchise Sales Consultant in 2014. He then served as chief strategy officer and executive vice president of Re/Max Integra and was responsible for the day-to-day operations as well as developing and overseeing business strategies. He joined Re/Max, LLC as Senior Vice President of Re/Max Canada in July 2021 and was named president in November 2021. Christopher Alexander oversees operations for the company-owned Re/Max Canada region, which includes Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan. Additionally, he works closely with the leaders of the independent RE/MAX Quebec region to build a cohesive brand strategy across the country.
Hooray Chris!