Real Estate Talk:
Prepping for the spring market

Embrace the seasonal energy or hold for better conditions

By Joseph Marovitch

March 13, 2025

It is always good to hope for the best but plan for the worst. Today the Bank of Canada lowered the Canadian interest rate by .25 basis points to 2.75%, stating consumers must be cautious as the threat of tariffs rises and falls on the whim of the U.S. president, playing havoc with the Canadian economy. A prolonged tariff war can cause inflation to rise. The tariffs have been applied, and it will take a few weeks to feel the full effect on the economy.

Hoping for the best is knowing that since there is always reason to buy and sell property, preparing for the spring market is a must.

Tiff Macklem, the governor of the Bank of Canada, in today’s Financial Post, stated there may be another rate cut in the future; however, we cannot provide further guidance with the uncertainty of the current unstable economic conditions. Macklem also stated there is an expectation that inflation will rise conservatively by 2.5% in April, which can cause the Bank of Canada’s interest rate to rise as well.

The effect of higher inflation is rising prices for all goods and services. With a rise in inflation, consumer spending slows down and demand for property decreases. Lower demand causes an increased supply of homes which means property values decrease. This sounds good for buyers, except the cost of maintaining a home will increase as well unless certain precautions are taken. I could explain the precautions, but it would be better to speak with a real estate accountant.

The preceding commentary is planning for the worst and finding opportunities at the same time.

Hoping for the best is knowing that since there is always reason to buy and sell property, preparing for the spring market is a must. Spring and summer are when property shows best. The weather is warm, the heavy coats and boots are gone, and the smell of grass and earth makes everyone feel lighter.

Therefore, it is time to clean the house, plant flowers, prepare the lawn and effect repairs where required. For those in search of a new home, there will be plenty of inventory and, therefore plenty of competition in a buyer’s market due to the current economic conditions. That means the property must be prepped and pristine to outshow the competition and acquire the best price and terms possible.

Pricing must be strategically placed on the scale of lowest to highest priced comparative homes, to attract the most interest possible to acquire the best price and terms. The pricing strategy is called “Less is more”.

‘The property must be prepped and pristine to outshow the competition and acquire the best price and terms possible.’

The seller must know which demographic the property will appeal to the most, so the demographic can be targeted in the right papers, mailings, newsletters and social media. Depending on the demographic the script in the ads and Centris listings must be geared toward the proper buyers.

Finally, the seller or their broker cannot make mistakes. The market is unstable, inventory will increase due to tariffs. The buyers that are in the market will have plenty to choose from. The right forms must be used depending on the type of property. All required information must be submitted. Nothing can be left to interpretation in the inclusions and exclusions. The dates of all conditions must be adhered to. If the ‘T’ s are not crossed and the ‘I’s are not dotted, there are several ways to wreck the sale.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Expectations in a summer market

State of the market

We are in a market where one day we are told tariffs are coming and the next, tariffs are delayed. Then, only certain items will be taxed and then they are not. One might think the market was being manipulated so some investors can sell stock short and then buy up the best stocks followed by no tariffs being implemented, so the prices rise again. Who would do that? Probably not the case, however, in the meantime, the ridiculous trade war is playing poker with our economy.

‘There is an opportunity in the current market. Presently, property is selling at a good pace and with multiple offers.’

All we can do is roll with the punches and assume the worst so we can be prepared. However, there is an opportunity in the current market. Presently, property is selling at a good pace and with multiple offers. This can be due to low interest rates and a compulsion to purchase before applied tariffs affect the market. With a little creative financial planning, carrying costs can also be alleviated. With proper financial advice, there is opportunity in both the residential market and income property. For more info, look me up on Linkedin.

Have a great week!

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Feature image: Marijana Vasic – Unsplash

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