CanadianSME Small Business Magazine had the opportunity to interview Walter Melanson, Co-Founder and Lead Market Analyst at PropertyGuys.com. Walter opened up about his vital role and responsibilities within the firm amidst the backdrop of supply chain challenges and soaring costs in the market. He addressed concerns regarding the future of rebuilding homes and businesses in areas affected by fires, particularly given the context of high-interest rates and inflation. With the real estate market bracing for the impacts of delayed property closings, Walter shared insights on the ripple effects of these delays, ranging from 30 to 90 days, and offered strategic advice for both consumers and agents navigating through these uncertain times. He also unraveled the perplexing trend of skyrocketing property values in fire-stricken regions, providing valuable counsel to prospective buyers eyeing high-demand areas like the Columbia Shuswap Regional District. Discussing the forecasted rise in insurance prices in wildfire-prone zones, Walter reflected on the impending implications for property values and buyer decisions and highlighted how PropertyGuys.com is guiding its clientele in these areas. Additionally, he touched upon the wave of opportunistic buying post-wildfires, advocating for robust regulatory measures to protect distressed homeowners from predatory transactions while outlining PropertyGuys.com’s commitment to safeguarding the community.
Walter Melanson is a Co-Founder and Lead Market Analyst for PropertyGuys.com. PropertyGuys.com is the creator of a unique real estate marketplace and franchise system who delivers services across Canada and beyond. Walter’s domain expertise is in all things related to PropertyGuys.com’s user journey, service modelling, real estate technology (PropTech), brokerage, mortgage origination (FinTech), title & conveyancing, market analytics and franchising.
Walter Melanson is a Co-Founder and Lead Market Analyst for PropertyGuys.com. PropertyGuys.com is the creator of a unique real estate marketplace and franchise system who delivers services across Canada and beyond. Walter’s domain expertise is in all things related to PropertyGuys.com’s user journey, service modelling, real estate technology (PropTech), brokerage, mortgage origination (FinTech), title & conveyancing, market analytics and franchising.
About PropertyGuys.com
PropertyGuys.com Inc. is a private sale franchise network and marketplace. Each PropertyGuys.com franchise is independently owned and operated (collectively “Us” or “We”). We represent neither the buyer nor the seller and we are not licensed to trade in real estate. We neither warranty nor make any representations as to the outcome of a property sale. Our approach includes services which are performed for our users by third party service providers. Such services are not performed or provided by us. Licensed real estate services advertised over our platform are delivered by PG Direct Realty Ltd who is a member of CREA. Not all services depicted are available in all areas.
As an executive at Propertyguys.com, can you briefly describe your role and primary responsibilities within the company?
A part of my role as our Lead Market Analyst is helping our business navigate the different challenges and market opportunities within real estate’s forever changing landscape.
Given the supply chain issues and escalating costs, how does Propertyguys.com see the future of rebuilding homes and businesses in fire-affected areas, especially considering the high-interest rates and inflation?
Firstly, we recognize that it’s natural for people to want to rebuild quickly in order for things to return to normal. On the other, we sadly know that it will take years to rebuild and restore these communities.
Rebuilding structures in regions where wildfires are especially likely to strike again will prove to be even more complicated, will take even longer and will likely be more expensive than even the most diligent forecasts predict.
The Bank of Canada’s current monetary tightening strategy will not only continue to cause financial constraints on construction and rebuilding effortsThe – but it also creates a more restrictive lending environment that could not have happened at a worst time for those needing to access capital to rebuild.
If that wasn’t bad enough – and if some of today’s most economic challenges can be overcome – the ongoing skills shortages within the construction industry will be an even bigger issue facing those who need to rebuild.
Can you shed light on the anticipated impact of delayed property closings on the broader real estate market? What strategies should consumers and real estate agents adopt in light of potential 30 to 90-day delays or even transaction failures?
Delays and the possibility of failed transactions are inevitable given the size and scope of the destruction brought on by such catastrophes. All market participants need to ensure that they fully understand all the associated risks with transacting (buying and selling) within this environment. It’s especially important for consumers to seek outside advice from professionals like insurance providers, legal representatives and mortgage originators to ensure that they have all the necessary information to make the best decisions which should be based – to be effective – on their unique and particular situation.
How does Propertyguys.com interpret the paradox of rising property values in fire-affected regions, particularly in high-demand areas like the Columbia Shuswap Regional District? What advice would you offer to prospective buyers in these areas?
The market is so tight that even if demand decreases temporarily, an army of eager homebuyers are always watching from the sidelines to scoop up anything that could be considered a deal.
It’s not just a fire problem, it’s but another major thing that will negatively feed into the region’s already evolving housing crisis.
Regardless of wild fire loss – sought after areas in the Columbia Shuswap Regional District will remain desirable, and the overall supply of housing stock within those areas will remain scarce – having a likely effect of driving up housing prices which are already out of reach for so many.
With forecasts predicting a 5-15% increase in insurance prices in wildfire-prone regions, how do you think this will impact property values and buyer decisions? How is Propertyguys.com advising its clients in these regions?
Many buyers are already stretched thin vis-a-vis their purchasing budget. They should always consider the availability and price of property insurance before they make a commitment to purchase. Whether insurance coverage is limited, affordable or even available in higher risk areas is yet to be known. Buyers considering a purchase in a higher risk area should also consider seeking legal advice relating to their purchase and to seek counsel from their insurer to know exactly what’s available for them – and at what price.
How does Propertyguys.com view the surge in opportunistic purchasing following the wildfires? In terms of regulatory measures, what can be done to shield distressed homeowners from predatory deals, and how does Propertyguys.com position itself to assist in this protection?
In the aftermath of major catastrophes like wildfires, there’s surely potential that some real estate investors may try and capitalize on unsuspecting sellers. You can only imagine the stress these people are dealing with – they don’t need the added stress of receiving messages from folks that are reaching out saying things like:
“‘We want to buy your property and we’ll make all-cash offers and do a quick-closing”.
And although PropertyGuys.com doesn’t itself trade in real estate, it sometimes partners with real estate agents who do. While these types of offers may seem attractive at first, folks should be encouraged to entrust the right mix of professionals which could include a Professional Appraiser. That way, they’ll be better positioned to understand the value of their property regardless of its condition.
Because we’re not yet aware of this being a problem, it’s hard to imagine additional regulations being needed or what types of new regulations would prove to be effective in a free market environment. That said, people should be able to choose how and to whom they’ll sell their property. Sellers just need to be aware of all of their options and approach all offers with an abundance of caution.
