Top 5 most Googled questions about real estate in Canada

Whether it’s about real estate, driving directions for your next weekend road trip, or a recommendation for where to go to dinner or what to watch on Netflix, when Canadians have questions, the vast majority of us turn to either Google or ChatGPT for the answers.

But while Google and ChatGPT can both be a great way to get a quick response, when it comes to things that really matter (like buying or selling your home!), the answers they provide aren’t always 100% accurate, trustworthy, or particularly relevant to Canadians.

So in the spirit of setting the record straight, here are our answers to the top 5 most Googled questions about real estate in Canada today.

Question #1: What’s the first step in the home buying process?

We may be a little biased, but the answer to this one is, of course, hire a REALTOR®!

In addition to walking you through every step in the process of buying or selling your home, a REALTOR® can answer any questions you have, fill you in on the latest trends and statistics in your neighbourhood, narrow down your search to only properties that meet your needs, help you negotiate the best possible deal, and connect you with their network of appraisers, home inspectors, lawyers, mortgage brokers and other housing professionals.

Not convinced? Check out our blog post on 10 reasons to work with a REALTOR®.

Question #2: How long does it take to buy a house?

The length of the homebuying process can depend on many different factors for many different buyers, from current market conditions and whether or not you’ve been pre-approved for a mortgage to how much time you have to make a decision.

There are also personal preferences to consider. For example, do you like to take your time and look at as many options as possible, so you can be sure you’re making the right choice? Or are you the type of person who falls in love with a property at first sight, and are ready to put in an offer before you even set foot inside?

On average, however, most home buyers in Canada take between two to six months to buy a home. This includes the time spent searching for the right home as well as putting in an offer, negotiating the deal, and closing on the property.

Question #3: What is a seller’s market vs. a buyer’s market?

The difference between these two terms comes down to one simple thing: supply and demand.

A seller’s market is when the demand for homes is greater than the supply. Because there are more buyers than sellers, prices tend to go up, buyers usually have to act more quickly and with fewer conditions, and bidding wars become more common.

A buyer’s market is the opposite. In a buyer’s market, there is an excess inventory of homes, meaning there are more people looking to sell a home than there are buyers ready to purchase. As a result, the power tends to switch to the buyer side of the equation, so buyers can take their time and be pickier, and there is more downward pressure on prices.

As a rule of thumb, most experts agree that a seller’s market occurs when the sales-to-new-listings ratio (SNLR) is above 60%. A buyer’s market happens when the SNLR falls below 40%.

(FYI – when the supply and demand of housing is roughly the same, it’s called a balanced market. In a balanced market, neither sellers nor buyers are in the driver’s seat, and conditions for both buying and selling are relatively equal and stable.)

Question #4: How much should I expect to pay for a down payment?

Again, the answer to this question can vary substantially depending on things like your financial situation, your credit score, the type of mortgage you’re getting, the purchase price of the home, and your own personal needs and goals. But on average, most Canadians save 5% to 20% of the purchase price of a home for the down payment.

One thing to keep in mind is that, in Canada, the minimum down payment that most banks will accept also depends on the purchase price of the home. For homes that cost $500,000 or less, the minimum down payment is 5%. For homes between $500,000 and $1.5 million, the minimum down payment is 5% of the first $500,000 and 10% of the remainder. For homes priced over $1,5 million, the minimum down payment is generally a flat 20%.

And don’t forget that if you want to avoid having to pay for mortgage insurance, your down payment must always be at least 20%, regardless of the price of the property you’re buying.

Question #5: Is now a good time to buy a home?

This is probably the most difficult question to answer. There are so many factors involved that can influence your decision of when (or whether) to buy a home, including everything from the latest real estate trends and forecasts, to why you want or need to move.

Last month, for example, Canada’s SNLR stood at about 52%, which would indicate we’re currently in a balanced market. But the latest figures seem to suggest that we may be headed closer to buyer’s market conditions in the coming months.

Ultimately, the choice of when to purchase a home is something every buyer has to make for themselves. Remember, for most Canadians, their home is the biggest and most important investment they’ll ever make.

So before deciding whether or not now is the right time for you, take the time to do your research, and talk to a professional REALTOR® who can help you sort through all the variables, analyze your wants and needs, bring you up to speed on the latest market info—and help you make the right decision for you and your family.

Bonus question: yours!

Forget about Google! Do you have any questions about buying, selling, or owning a home? Contact us for a free consultation, and we’ll do our best to get you the answers—without resorting to ChatGPT!