The Top Three 2020 Buyer Trends in Canada

The Top Three 2020 Buyer Trends in Canada

Sellers
Last Updated: Sep 04, 2020

A year to remember and with a “new normal” comes renewed real estate goals. Whether you've decided this is the year you're going to sell your home or if you're just considering it, you need to know which buyer trends to expect in 2020.

I’ve laid out the most important trends for this year and how it could affect your decision as a seller.


Trend #1: Millennials are still on the move


Millennials are anyone born between the years 1981 and 1997 and the largest majority of them will be turning 30 in 2020. This year, older millennials will be starting to think about settling down, having kids and buying their first home.

With millennials looking to buy this year, most older generations such as the baby boomers and Generation X aren’t going to be making moves anytime soon. Most may still be raising kids or not ready to retire yet, which means they are staying put. So for 2020, it's all about millennial homebuyers.

What this means for sellers:

  • If you’re considering making upgrades to your home before you sell, know what millennials want. The features at top of their lists include a patio, hardwood front exterior, a laundry room, and a walk-in pantry.
  • Millennials are less concerned with how big a home is and more concerned with how far it is from work and what school district the home is in. According to NAR, most millennials are less willing to compromise on the quality of the neighbourhood and schools when buying a home.
  • Almost all millennials search online when looking for a home, and 80% of them actually found their home on their phone. Be sure that your online listing photos are high quality and your listing can easily be found on the major consumer search websites.  Facebook and Instagram are taking over as the number 1 place to advertise.  I use a proven advertising campaign to attract not hundreds but thousands of eyeballs to your property.  

Trend #2: Prices & iBuyer's are on the rise

According to The Canadian Real Estate Association, the national average price is projected to increase by 2.3%, which comes out to a little over $500,000.


The iBuyer trend is also predicted to increase this year. An iBuyer is a real estate company that makes an offer on a home within days. With companies like Properly starting to emerge in Canada, some sellers are looking to take an easy way out.

What this means for sellers:

  • With home prices still on the rise, you may make a profit on your home if you sell this year. It's also vital to keep in mind that some buyers may be priced out of the market, which potentially means fewer offers. Make your home really stand out and if you’re not in a hurry to sell, don’t be afraid to wait for the right offer.
  • Although "location, location, location" has been the slogan for the past few years, it seems that buyers (especially since millennials are now the largest group of homebuyers) are willing to comprise location for a more affordable option.
  • With iBuyer companies on the rise, it's important to know what you're up against. iBuyers basically take the human experience out of selling your home and you're likely to get a not-so-good offer. If you're not in an absolute rush, don't take the easy way out.

Trend #3: Mortgage interest rates are on the decline

Interest rates for mortgages have declined, according to The Canadian Real Estate Association. These rates include the benchmark five-year rate which is used by the largest banks in Canada to qualify applicants.  Although the decrease has been moderate, it does aid in providing access to financing for homebuyers. Just like anything in life, this isn’t a guarantee. Trade wars and tariffs could shift the economy causing an increase in interest rates to balance out the economy. But if mortgage rates do stay on the decline, this could be a motivation for more buyers.


What this means for sellers:

  • Lower interest rates means buyers will be more motivated to buy sooner rather than later. A mortgage is a huge financial commitment, so if someone has been thinking about buying and sees lower interest rates, this may push them to commit.
  • Nothing in life is certain so if rates do increase, be prepared for your home to be on the market longer than you expected.

 

Craving for more housing market trends and forecasts? Chat now with Fivewalls' professional real estate agents!

 

Written by a Fivewalls Certified Agent Jamie Black.

Looking to sell? Contact Jamie today to get an accurate home value report.


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Jamie Black

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