With inventory at a historical low, today’s real estate market can be challenging for new realtors. Cassidy Bast, rennie’s Director of Advisor Growth & Career Development, interviewed two rennie leaders, Stu Bell and Andy Mah, along with rennie’s Rookie of the Year, Carmen Hou, on how they help their clients navigate this market, how rennie keeps them competitive and more.
1. Many buyers are sitting on the sidelines, waiting for the market and/or interest rates to change before deciding to buy. Why might now actually be a good time to buy.
Andy: Down markets or balanced markets are the best time to look as you’re able to do so with ease and are more likely to get everything you want on your “must-have list.” Canada's Inflation rate just dropped to 5.9%, and interest rates are expected to slow or even pause. At this rate, we can expect the market to heat up again; and with such limited inventory, high immigration and rental rates, it’s best to start looking and shopping for deals now.
Stu: We are seeing excellent value, much less competition, and more motivated sellers. Buyers can find a great property, negotiate a fair deal, choose the ideal dates for their move, and conduct their due diligence carefully before subject removal.
Carmen: Because there’s pent-up demand and low inventory, now might actually be a good time to buy since prices have trended downward, and there is less competition. Economists predict home prices and sales are expected to bottom out in the first few months of 2023. Weren't we always taught to buy low and sell high?
2. Listings are at a historical low right now. Why might now actually be a good time to list?
Andy: It can be a perfect time to list especially if you’re in an area where there aren't many listings or competition. Listing in today's market can be advantageous with such limited supply, since your home has a chance to stand out in the area.
Stu: Some property types and price points are slow right now due to rising interest rates and BC’s foreign buyer's tax, and Canada's foreign buyer’s ban, while others are the opposite: red hot with multiple offers, with demand exceeding supply. I think it is a good time to sell as prices are still near the peak, the luxury market remains strong, immigration is high, millennials / young families want more space, baby boomers are downsizing, and inventory is extremely low.
Carmen: As I learned in Economics 101, it's the law of supply and demand. Inventory is on the lower side, there are buyers waiting on the sidelines, so now might actually be a good time to list. I do think sellers need to be realistic about the prices that their properties may fetch compared to the peak values that we saw a year ago.
3. What is it taking to successfully put a deal together in today’s market compared to the market we had a year ago? In what ways have you altered your approach, if any?
Andy: I let Rennie's data do most of the talking. The main thing we need to provide is an understanding of the data and how it compares to the different product types, areas and potential future growth in the marketplace.
Stu reworked: Today's market requires more patience as the frenzied pressure to buy quickly is gone. To succeed when selling, it is critical to price correctly as the market is very price sensitive; negotiate well as offers are less prevalent; and produce/distribute superb marketing material to catch the eyes of realtors and buyers alike. On the buy side, success comes from searching for opportunities, acting decisively when they arise, and utilizing good rapport and reputation to negotiate a great deal.
Carmen: As I learned in Economics 101, it's the law of supply and demand. Inventory is on the lower side, there are buyers waiting on the sidelines, so now might actually be a good time to list. I do think sellers need to be realistic about the prices that their properties may fetch compared to the peak values that we saw a year ago.
4. What advice would you give a realtor who is struggling in today’s market? Are there any best practices that have helped keep you on-track?
Andy: This is the best market to be in for a realtor at the early stages of growing their business. Typically, at that stage, you’re working with buyers, so if the real estate market is a hot seller's market, it is extremely tough to navigate your clients to win in multiple offer scenarios. In comparison, in today's market, you have a really good chance of connecting a deal here as you have the time to do your due diligence and help your buyers feel comfortable with the purchase and also show your worth by negotiating a deal.
Stu: I would suggest finding a mentor who you can learn the day-in and day-out intricacies of the business. I started in 2008 when nothing was selling after the financial collapse. I didn't make a lot, but I learned so much and developed hard-working habits that allowed me to succeed when the market recovered after the Olympics. Always write down your goals on paper. Shoot for the moon!
Carmen: When the market is slower, I focus on professional development and familiarize myself with new regulations. I keep a close eye on the market, look at what's going on in the Paragon hot sheet, and visit presentation centres to see what the developers are doing. If I have a good pulse on the market, for example, when developers are doing promotions or price drops, I can keep my clients in the know. I am basically preparing myself for when the market starts picking up, which eventually it will— It's just a matter of time.
5. In what ways has Rennie helped you stay competitive in today’s market?
Andy: Data! Nothing is stronger when you have comparable and knowledgeable data to help support your clients in making an informed decision when purchasing or selling a property.
Stu: rennie has an incredibly thoughtful corporate culture. The people, rspaces, head office, and brand are positive, innovative, fun, smart, supportive, and sharp. The amazing marketing support and close-knit community at rennie reinvigorated me to be the best Realtor I can be. We are proud to work at rennie, and we are excited to see our business evolve and thrive with rennie's support, data, and resources.
Carmen: As I mentioned above, it's so important for us to have a good pulse on the market to know what's going on. Rennie's intelligence is the gold standard, and we have front-of-the-line access. I've gone to open houses and when I meet realtors from other brokerages, they tell me that they rely on Rennie's publications for data and market analysis. We are so lucky to have access to this information. Rennie is marketing many projects with different developers, and we are first to know about new products or promotions, which is something that I can share with my network and clients. Rennie's intelligence and strong developer relationships are two of the most significant benefits to me for helping me stay competitive in today's market.
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