Do it all at once by adding these steps to your checklist.

Multitasking is never easy. Likewise, buying or selling a home can be daunting, even in the best circumstances. Doing both at once might mean stress overload unless you are prepared and have a plan B for when things go awry. Here are five tips to consider when buying and selling your home at the same time.

1. Assess your situation

Ideally, you want to move into your new place before you leave your old one. But to prepare for buying and selling your home at the same time, you need to know current real estate trends. The best place to start is with a reputable, experienced real estate agent. This person knows the market situation in your area and in the new area you are considering.

An agent will also know if it is a buyer’s or a seller’s market. This is important so you have a sense of how quickly homes are moving and for how much. That will help you with your timeline, your listing price and how much you can afford.

Make sure to choose the same agent for the buying and selling process. Having an agent who understands both ends will be invaluable. The only times this shouldn’t be the case is if you are moving out of province or if the agent is also working with the seller of your new home.

Remember, you have options when it comes to negotiating the length of your close, short-term rentals and other ways to bridge the time between buying and selling. Having an agent to help will make sure you get the best possible terms.

2. Know when to use contract contingencies

Another key is knowing if you need to sell your current home to make the down payment for your new home. If you do, you need to consider a contract contingency when purchasing or applying for a bridge loan.

Contract contingency or conditional sale means the purchase of the new home will depend on the sale of your existing home. This can be dangerous in a seller’s market and could cost you your dream home if you are not careful. If the market is competitive, the seller may not want to decrease their chances of selling by waiting for you to sell your home.

You’ll need to convince the seller your home is in a desirable market, priced right and will sell quickly. If there’s been no movement on the seller’s property and it’s been on the market for a while, they may agree to a contract contingency.

3. Consider a bridge loan

A bridge loan could be a great alternative to contract contingency. As the name implies, it bridges the time between moving into your new place and out of your old one. These loans let you own two homes at the same time by using the equity on your property to help with the down payment of your new house.

Usually, bridge loans are around six months long, but this can vary depending on how long you think you need to sell your home. Keep in mind a lender must still approve you for this loan, too. You’ll need a sale agreement setup for your current home to qualify. Once your old house sells, you can use the proceeds to help pay the bridge loan.

Always have back-up plans when buying and selling at the same time.

4. Factor in the financials

When setting the price of your home, consider what you want to spend on your new home and weigh this against the market value. Leave a cushion when calculating your new home budget. For example, if your current home is assessed at $900,000 and the new home you want is $850,000, then you know the least you’ll accept for your current place is $850,000. If you don’t get at least $850,000 for your current home, then you need to look for a cheaper new home. That is, make sure you cover your new home’s price with your current home’s sale. If you only know the general price range you want for your next purchase, talk with your agent about what you'll need to get from the sale of your current home to cover it.

Have a buffer and manage your expectations. Plus, if your current home was your principal residence for the entire time you owned it, you won’t have to pay capital gains tax when you sell. But if it wasn’t, factor this into the total amount available and work with your agent and an accountant.

Also, don’t assume you can upgrade to a bigger home because you have a current mortgage, have a down payment or are making more income. This is not always the case; know your limits. By having a pre-approved mortgage, you won’t be setting yourself up for disappointment after you find your dream home.

5. Cover yourself between buying and selling

Have a plan B. It’s rare for the new home to close at the same time as your existing home. A little off in either direction and you could be paying dual mortgages or be homeless.

Banks can take up to two to three days to transfer funds, and those transfers are usually done before 3 pm. So, don’t schedule your closing on a Friday and always choose the morning hours. Having this buffer in your schedule will help close the deal on schedule and as planned.

Set up an emergency fund for such a situation. You may find you are in a hotel for a week or two. You might want to consider short term rental options (like an Airbnb). Speaking with friends and family may also give you some options until your new place closes.

Another possibility is a rent-back agreement. This means you would rent your old home back from the buyer (now the owner) from the time of closing until you’re ready to move. The buyer does not have to agree to this, and their own buying and selling situation will likely determine if they agree. But it doesn’t hurt to ask. Have a back-up for this back-up plan, though.

Buying and selling a home at the same time requires coordinating many moving parts. But with some careful planning and a bit of luck, you can do it. Make sure to work with your agent every step of the way and always have other plans ready.

Words by Zak Khan Date 11.07.2024

source: rew.ca

link: https://www.rew.ca/guide/articles/6-tips-to-buying-and-selling-a-home-at-the-same-time

Rising concerns about Canada plunging into a recession are deterring prospective homebuyers, according to a new report.

The BMO Financial Group released its latest Real Financial Progress Index on Monday, revealing that many Canadians are taking a “wait and see” approach as the possibility of Canada descending into an economic recession increased from 60 per cent to 74 per cent from March to April 2025.

“Canada’s housing market remained under pressure heading into the spring, with sales and prices both weakening further,” said Robert Kavcic, senior economist at BMO Capital Markets.

“There is some clear underlying weakness as inventory builds and investors remain absent. Suffice it to say, homebuyers are losing confidence and motivation, especially in areas of B.C. and Southern Ontario.”

Elena Berd/Shutterstock

The BMO survey examined how concerns about the economy have impacted prospective homebuyers’ decisions.

It found that over two-thirds (67 per cent) of prospective homeowners are waiting for interest rates to drop before purchasing a home. Two in five (38 per cent) Canadians are waiting for rates to drop to three per cent or lower before buying or refinancing a home.

The Bank of Canada announced its first interest rate hold of the year in April, maintaining the 2.75 per cent policy rate.

“Two-thirds (66 per cent) of millennials feel they had missed their homebuying moment — more than any other generation,” reads the report.

While 59 per cent of Canadians see homeownership as one of their greatest life goals, half believe it is less attainable than it was 12 months ago. Two-thirds (66 per cent) are less confident that they will own a home in their lifetime compared to five years ago.

BMO found that 38 per cent of homebuyers plan on buying one in the near future, but only 14 per cent of those Canadians plan to do so in 2025, and a quarter (24 per cent) plan on doing so in 2026 or later.

More than half (52 per cent) of prospective homebuyers would consider moving to a different province or country to afford to buy a home.

And 43 per cent of people who bought in Canada say they could not have obtained their homes without assistance from family.

National Trending Staff|. May 5 2025,

source: dailyhive.com

link: https://dailyhive.com/vancouver/canada-recession-homebuyers

The British Columbia Real Estate Association has unveiled its latest housing forecast, highlighting a cautious outlook for the province’s real estate market amid ongoing economic uncertainties tied to international trade tensions.

In its second-quarter report, the provincial association predicts that home sales across B.C. will drop slightly by 1.1 per cent this year, totalling approximately 73,650 units. However, BCREA expects a rebound, with sales projected to increase by 8.8 per cent.

“Hopes for a return to normalcy in the B.C. housing market were swiftly dashed this year, upended by a pointless and mutually destructive trade war,” says BCREA Chief Economist Brendon Ogmundson. “While there is significant pent-up demand in the market, uncertainty about the direction of the economy is holding that demand back.”

Inventory levels continue to climb  

Despite recent drops in interest rates— with the Bank of Canada cutting its overnight rate from 5 per cent down to 2.75 per cent in the past year—BCREA notes that market confidence remains shaky. 

Inventory levels continue to climb, with resale listings expected to average over 40,000 units provincially for the first time in more than a decade. The uptick in available homes, combined with a surplus of unsold new builds, might place mild downward pressure on prices in certain markets, BCREA notes. But average prices across the province are largely anticipated to remain steady as sellers adopt a cautious approach, choosing to wait out current economic conditions.

Regionally, the picture varies:

• The Vancouver Island-Coast area is anticipated to see mixed performance, with sales slightly increasing in Victoria but declining elsewhere on the island.

• The Lower Mainland, including Greater Vancouver and the Fraser Valley, continues to grapple with affordability issues, forecasting a minor sales dip in 2025 before experiencing recovery next year.

• The Thompson-Okanagan region anticipates a slight decline in home sales this year, yet looks forward to a stronger recovery in 2026.

• Northern B.C. remains notably resilient in the face of economic challenges, expecting stable sales throughout 2025 and slight growth in 2026.

• The Kootenay region continues to perform well, bolstered by better affordability conditions, forecasting a healthy increase in sales this year.

BCREA underscores that while current economic challenges, particularly those stemming from international trade disruptions, are significant, gradual improvement and stability in the housing market are anticipated as clarity around economic and trade policies emerges.

REM Editorial Team | May 01, 2025 

Source: realestatemaazine.ca

link: https://realestatemagazine.ca/mutually-destructive-trade-war-puts-b-c-housing-market-recovery-on-hold

Why isn't Canada's housing market responding to lower interest rates?

The Bank of Canada opted to maintain its policy interest rate at 2.75% in April, citing escalating trade tensions and widespread economic uncertainty. However, the decision has drawn renewed attention to Canada’s faltering housing market, which continues to cool despite recent interest rate cuts.

The central bank’s Governing Council deliberated against a backdrop of heightened volatility, triggered by a new wave of US-imposed tariffs on imports, effective April 2. These measures have disrupted financial markets, weakened consumer confidence, and cast doubt on near-term economic growth. The effects are being felt acutely in Canada’s housing sector, where activity has cooled significantly.

“Housing activity also slowed considerably in the first quarter of 2025,” the Council noted, highlighting that resale activity—especially in the Toronto market—declined even as borrowing costs dropped.

Rate cuts fail to ignite

Since mid-2024, the Bank has implemented a series of rate cuts to stimulate economic growth and maintain inflation near its 2% target. Although these measures have brought mortgage rates down, the intended boost to the housing market has yet to materialize. Consumer sentiment remains subdued, with surveys showing confidence at historic lows.

Governing Council members acknowledged that “lower interest rates pulled down mortgage interest costs and rental prices moderated,” but this easing has not been sufficient to offset broader economic pressures. Slowing household spending, cautious business investment, and weakening employment are contributing to a climate of uncertainty that has discouraged homebuying and slowed construction.

Analysts warn that if trade conflicts deepen—particularly under the Bank’s more severe illustrative scenario where tariffs become permanent—the housing sector could face greater strain. In such a scenario, inflation might temporarily rise above 3%, even as the economy enters recession. The report notes that “lower demand for Canadian exports could affect business investment, employment, household spending and housing more than anticipated.”

Divided on further action

Despite these risks, the Bank chose not to cut rates further at its April meeting. While some members favoured another 25-basis-point reduction to support sectors like housing, others argued that previous rate cuts were still working their way through the economy and that more data was needed before taking further action.

Looking ahead, the Bank said it would closely monitor the dynamics around Canadian exports, particularly how it impacts business investment, employment, and household spending, and how inflation expectations evolve. Should the outlook deteriorate, the Bank said it remains prepared to act.

By Jonalyn Cueto 01 May 2025

source: mpamag.com

link: mpamag.com/ca/news/general/bank-of-canada-reveals-thinking-behind-april-rate-hold/534088