Open house trends shaping Canada’s uneven real estate market

Brankovsky, who works at Royal LePage, believes open houses are still worth it (“all you need is one buyer”). But she notices that in her area there is often less traffic passing through them than in previous years. Indeed, when sales decline, open house activity also tends to decline, although this may depend on the neighborhood.

“There’s nothing worse than sitting there for four hours with no one passing by. I think right now it’s less about the market and more about the economy. The cost of living is holding people back.”

Different stories throughout the country

Changes related to the pandemic should also be taken into account. With homebuyers now having more access to tools like virtual tours, a lot of prep work can be done online, making a decline in open houses seem inevitable.

But while this appears to be the case in certain expensive major centres, notably Toronto and Vancouver, it’s a different story elsewhere, with some better-performing markets seeing a glut of activity.

The latest data shows that “strong regional disparities” characterized the housing market in the fall, notes Ryan McLaughlin, an economist at Wahi, a Canadian digital real estate platform. Home prices in the country’s most expensive cities continue to fall, according to Wahi’s latest home price index report.

“But in certain regions with better affordability conditions, gains are starting to accelerate,” says McLaughlin. You could probably conclude that it would make sense for more open days to take place in these latter areas, he notes.

While national numbers generally point to a market on pause, “that is certainly not the case in cities in Quebec and Atlantic Canada, nor in certain parts of the Prairies, which may continue to warm,” McLaughlin explains.

While Wahi’s latest fall data shows that home prices in Toronto and Vancouver are down at least four percent from last year, quite a few cities with greater affordability have experienced stable performance and significant price growth. McLaughlin mentions Winnipeg, Quebec City, Montreal and Regina, and to a lesser extent Calgary, Edmonton and Halifax, among these.

Canada’s easternmost city is ‘on fire’

Wahi also has data that is not publicly included in its price index, showing that home prices in St. John’s, NL, have increased by as much as 12 percent year-over-year.

Jim Burton, owner of ReMax Infinity in St. John’s, says, “Business is on fire here. It’s crazy busy. I’ve never seen a market like it. In a market that isn’t currently experiencing the best in some Canadian centres, you have to be aware that other parts of the country are robust. And Newfoundland is one of them.”

This is a welcome change for the local real estate community. “We are a hardy team, used to going out and resting in the storm, and surviving tough times,” Burton said.

Today, inventory in St. John’s is down and sales are up. Multiple offers and oversold homes have become common, which is unusual for the county.

“We’re seeing a lot of capital coming in,” Burton notes. “There’s an abundance of buyers and few sellers. A lot of people are attending open houses. They’re excited.”

Making a case for open houses

Rather than feeling like open houses are an outdated tool, Burton continues to see them as a cost-efficient way of marketing, promotion and lead generation – not to mention an industry standard that is often expected by customers.

But don’t worry: In a competitive seller’s market like St. John’s, he says there’s no need for agents to get excessively creative with their open houses.

“Do your homework and be prepared,” he advises. Advertise well in advance. Take care of any necessary painting and repair work. “Put some rolls in the oven and create a warm atmosphere.”

Set the atmosphere

But then again, going the extra mile doesn’t hurt.

The open houses hosted by Calgary agent Renata Reid, senior vice-president of sales at Sotheby’s International Realty Canada, will feature live music, catered refreshments and games. Once upon a time, an Aston Martin was on display in all its glory. Buyers don’t get that experience – the smells, the atmosphere – online, she notes.

“It creates an atmosphere that makes people feel welcome and want to linger. I take open days to a higher level.”

It’s hard to say what would fully return open house activity across Canada to pre-pandemic levels. With Christmas less than two months away, it won’t be long before the seasonal slowdown hits. Many agents don’t hold open houses on holiday weekends, focusing instead on family. But there are plenty of people who come from out of town during the holidays and have time on their hands, who may want to live closer to relatives, Reid points out.

“Take a break if you need one. But it might be a good time for an open house.”

Vancouver-based eXp Realty agent Tom Ikonomou agrees.

“When people are trudging through the snow to an open house during a holiday, you know they are serious about buying.”