Toronto Realtor Martina Brankovsky hosted an open house recently that was so slow she spent most of her time there wondering how other agents’ open houses are faring in this tricky market, where just the sight of a car slowing down outside can get your hopes up.

Brankovsky, who’s with Royal LePage, believes that open houses are still worthwhile (“all you need is one buyer”). But she’s finding that there’s often less traffic through them in her area than in previous years. After all, when sales are down, open house activity tends to fall off as well, although it can depend on the neighbourhood.

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

Different stories across the country

 

Post-pandemic-related changes must be considered as well. With homebuyers now having increased access to tools such as virtual tours, a lot of legwork can be done online, making a decline in open house activity seemingly inevitable.

But while this seems to be the case in certain pricy major centres, particularly Toronto and Vancouver, it’s a different story elsewhere, with some higher-performing markets seeing activity galore.

The latest data shows that “stark regional variations” have characterized the fall housing market, observes Ryan McLaughlin, an economist with Wahi, a Canadian digital real estate platform. According to RPS-Wahi’s latest house price index report, home prices continue to slide in the country’s most expensive cities. 

“But in select locales with better affordability conditions, gains are beginning to accelerate,” says McLaughlin. You could probably conclude that in these latter areas, it would make sense that there’s more open house action, he notes. 

Although the national numbers overall are suggestive of a market on pause, “that’s certainly not the case in cities in Quebec and Atlantic Canada, as well as certain parts of the Prairies, which may be heating up more,” McLaughlin explains.

While this latest fall data show Toronto and Vancouver housing prices dropping by at least four per cent from last year, quite a few cities with greater affordability have been experiencing stable performance and significant price growth. McLaughlin lists Winnipeg, Quebec City, Montreal and Regina among these, and to a lesser extent Calgary, Edmonton and Halifax.  

 

Canada’s easternmost city is ‘on fire’

 

 RPS-Wahi also has data not publicly included in its price index showing that year-over-year, home prices in St. John’s, N.L., have grown a whopping 12 per cent. 

Says Jim Burton, owner of ReMax Infinity in St. John’s: “Things are on fire here. It’s crazy busy. I’ve never seen a market like this. In a market currently not experiencing the best in some Canadian centres, 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’re a hardened crew, used to going out and nesting in the gale, surviving hard times,” says Burton. 

Today, inventory in St. John’s is down, and sales are up. Multiple offers and homes selling over-asking have become common, which is unusual for the province. 

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

 

Making a case for open houses

 

Far from feeling that open houses are an outdated tool, Burton continues to find them a cost-efficient way of marketing, promotion and lead generation – not to mention an industry standard which tends to be expected by clients.

But not to worry, in a competitive sellers’ market like St. John’s, there’s no need for agents to knock themselves out getting overly creative with their open houses, in his opinion.

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

 

Setting the mood

 

Then again, kicking it up a notch can’t hurt. 

At the open houses hosted by Calgary agent Renata Reid, senior vice-president of sales at Sotheby’s International Realty Canada, there may be live music, catered refreshments and games. Once, an Aston Martin was on display in all its glory. Buyers can’t get that experience – the aromas, the ambiance – online, she observes.

“It creates an atmosphere that makes people feel welcomed and want to linger. I take open houses to the next level.”

It’s hard to say what, if anything, would bring open house activity fully back to pre-pandemic levels Canada-wide. With Christmas less than two months away, it won’t be long before the seasonal slowdown hits. Many agents don’t do open houses on holiday weekends, focusing instead on family. But there are plenty of people visiting from out of town during holidays with time on their hands, who may be looking to move closer to relatives, Reid points out.

“Take a break if you need it. But it can be a great time for an open house.”

 Vancouver-based eXp Realty agent Tom Ikonomou agrees. 

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