Marian Keriakos : Blog : Latest Blog Posts

Is Buying a Home Together Right for Your Family? How to Approach Multigenerational Living

Wed, 01 Apr 2026 17:34:53 GMT

For a long time, multigenerational living had a reputation problem. It was the option families turned to when something had gone wrong — a job loss, a divorce, a health crisis. Moving back in with your parents, or having your parents move in with you, meant something hadn't worked out.

That story has changed pretty significantly.

Today, families are choosing this arrangement on purpose — not as a fallback, but as a deliberate decision to share costs, stay connected, and build something that actually works for how their lives are structured right now. The latest Statistics Canada data shows that nearly 1 in 5 Canadians lives in an intergenerational household made up of parents and adult children — and that number has been growing. [1] These aren't people making the best of a bad situation. They're rethinking what "home" needs to do.

If this is something you're considering — or something a family member has brought up — here's what's worth knowing before you start the search.

Why More Families Are Going This Route

The honest answer is: it's rarely just one thing.

For most families, cost is somewhere in the mix. With the national average home price sitting above $650,000 and nearly half of Canadians reporting serious concerns about housing affordability, buying together has become a practical response to a market that makes solo homeownership increasingly hard to pull off. [2][3] More people on the mortgage means more income to qualify with, and more people splitting costs means the monthly number gets a lot more manageable.

There's also a wrinkle specific to how mortgages work in Canada that doesn't get talked about enough in this context. Mortgage terms typically renew every four or five years, and the Bank of Canada has flagged that roughly 60% of outstanding mortgages will renew in 2025 or 2026 — with many borrowers facing meaningfully higher payments than they had before. [4] For some families, buying together isn't just about getting in. It's about staying in comfortably when renewal comes around.

Caregiving is the other big driver that doesn't always make it into the conversation upfront. Canada now has over 8 million people aged 65 and older, and the question of how families want to handle aging parents isn't one most people want to outsource entirely. [5] For the families who've actually made multigenerational living work, being close enough to help — and being helped — is often what they're most grateful for in hindsight.

Remote work has also quietly shifted the geography of family life. When you're not tethered to an office five days a week, being near family becomes less of a professional sacrifice. About 1 in 4 employed Canadians is now in either a fully remote or hybrid arrangement, which means more families can actually act on the instinct to live closer together. [6]

And then there's the harder-to-quantify stuff — the daily support, the shared routines, the sense that you're not navigating things alone. If you find yourself drawn to this idea, your reasons are probably more layered than just the numbers.

What to Actually Look for in a Property

This is where a lot of families get tripped up. They find a house they love, start imagining how it could work, and convince themselves the layout is more flexible than it really is. Then six months into living together, they realise what they actually needed was a separate entrance — not just a second bathroom.

The properties that work best for multigenerational living tend to share a few things in common.

They take privacy seriously. Not just in theory, but in the layout. Dual primary suites, separate entrances, a finished basement with its own living area, or a self-contained secondary suite — these aren't luxury features, they're what make the arrangement actually sustainable. If each household can't fully decompress, host their own guests, and keep their own rhythm, the togetherness part gets old fast.

They're built — or can be converted — for flexibility. Secondary suites, laneway homes, and garden suites have become a much bigger part of this conversation as municipalities across Canada loosen their rules around additional units. If a self-contained space isn't already in place, it's worth asking whether the lot and local zoning would make one possible down the road. That kind of optionality has real value.

They work for the long game. Think about where everyone in the arrangement will be in ten or fifteen years. First-floor suites, wider hallways, zero-step entries, and rooms that can adapt as needs change aren't just nice to have — they're what make a multigenerational home function well over time rather than just right now. StatsCan data shows that home adaptations are already a reality for a significant share of older Canadians, and that need only grows. [7]

The short version: the best multigenerational properties support both togetherness and independence. If a home checks one but not the other, keep looking.

The Conversations Most Families Skip

Here's the part that tends to get glossed over, because the emotional pull of the idea is strong and the practical details feel like they can wait. They can't.

Start with the financial structure early. If multiple people will be on the mortgage, everyone needs to understand what that actually means. Combining incomes can help qualify for more, but it also means everyone on the mortgage shares legal responsibility for the debt — and everyone is exposed to renewal risk together. That's a meaningful commitment worth sorting out before you fall in love with a property. [4]

Define ownership clearly. Title can be held as joint tenancy or tenancy in common, and those aren't just legal technicalities — they affect what happens if someone wants to sell, if a relationship changes, or if one owner passes away. Equal contributions don't automatically mean equal ownership makes sense, and unequal contributions don't mean anyone is getting a bad deal. But these things need to be spelled out explicitly, not assumed.

Don't overlook closing costs. Land transfer tax varies by province and, in some cities, stacks with a municipal layer on top. If first-time buyers are part of the purchase, it's also worth a conversation about tools like the First Home Savings Account, the Home Buyers' Plan, and the Home Buyers' Amount — real savings that are easy to leave on the table if nobody brings them up. [8][9][10]

Get it in writing. A verbal agreement between family members feels fine when everyone is on the same page. It gets complicated when circumstances change — and circumstances always change eventually. A written agreement covering shared expenses, maintenance responsibilities, use of common areas, and how an exit would be handled gives everyone protection, and honestly, usually makes the conversations easier because you've already had them.

Talk through the "what-ifs" before closing. Job changes, caregiving shifts, a marriage, someone wanting to sell, or payments rising at the next mortgage renewal — these aren't worst-case scenarios, they're just life. Who carries the renewal risk, and what happens to the arrangement if carrying costs go up? Getting those answers sorted before you sign is much easier than trying to work it out once you're already living together.

One more thing worth knowing: if the arrangement involves creating a self-contained unit for an eligible family member, the Multigenerational Home Renovation Tax Credit can cover qualifying renovations up to $50,000, with a refundable credit of up to $7,250 per claim. [11] It's not the reason to do this — but it's worth knowing it exists.

This stuff isn't fun to work through. But families who do it upfront tend to have far smoother experiences than those who assume it'll all work itself out.

Is This Actually the Right Move?

That depends on a few honest questions.

Is everyone genuinely choosing this, or is someone going along with it? The families who thrive in multigenerational arrangements almost always went in with shared intent — everyone wanted it, everyone understood what they were agreeing to. That's different from one party tolerating it because the math made sense or because it felt like the easier thing to say yes to.

Are the financial expectations clear and actually fair? Not just the down payment, but ongoing contributions, equity stakes, closing costs, and what happens if someone needs to exit. These things are much easier to define before the purchase than to renegotiate afterward.

Does everyone have a realistic picture of what shared space feels like day-to-day, long-term? Not on a good weekend when everyone's happy to be together — but on a random Tuesday when someone's had a bad day, the kids are loud, and you just want your home to yourself for an hour.

If the answers to those questions are honest and mostly positive, multigenerational living can be genuinely great. Plenty of Canadian families have made it work extremely well.

BOTTOMLINE

Multigenerational living has moved from fallback plan to deliberate strategy for a growing number of Canadian families — and it's easy to understand why. The affordability pressure is real, the caregiving benefits are real, and with mortgage renewal cycles adding a layer of financial uncertainty that's worth planning around, sharing a home has become a genuinely smart option for a lot of households.

What makes it work is going in with eyes open: the right property, the right legal structure, and honest conversations before anyone signs anything.

If this is something your family is exploring — or if it's on the horizon and you're not sure where to start — that's exactly the kind of conversation a good local agent, lender, and lawyer or notary can help you think through together. Getting the strategy right early makes everything that follows a lot smoother.

Reach out anytime — even if you're just starting to think it through.

Sources

[1] Statistics Canada, Adulting together: Parents and adult children who co-reside
https://www150.statcan.gc.ca/n1/pub/91f0015m/91f0015m2025002-eng.htm

[2] Statistics Canada, The Daily — Social geography: A special edition of Insights on Canadian Society
https://www150.statcan.gc.ca/n1/daily-quotidien/250129/dq250129a-eng.htm

[3] Canadian Real Estate Association (CREA), National Statistics — February 2026
https://stats.crea.ca/en-ca/

[4] Bank of Canada, Financial Stability Report — 2025
https://www.bankofcanada.ca/2025/05/financial-stability-report-2025/

[5] Statistics Canada, Older adults and population aging statistics
https://www.statcan.gc.ca/en/subjects-start/older_adults_and_population_aging

[6] Statistics Canada, The Daily — Labour Force Survey, November 2024
https://www150.statcan.gc.ca/n1/daily-quotidien/241206/dq241206a-eng.htm

[7] Statistics Canada, Aging in the community: Factors associated with home adaptations
https://www150.statcan.gc.ca/n1/pub/82-003-x/2025007/article/00002-eng.htm

[8] Canada Revenue Agency, First Home Savings Account (FHSA)
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

[9] Canada Revenue Agency, The Home Buyers' Plan (HBP)
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/avoid-common-home-buyers-plan-mistakes.html

[10] Canada Revenue Agency, Line 31270 – Home buyers' amount
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31270-home-buyers-amount.html

[11] Canada Revenue Agency, Multigenerational Home Renovation Tax Credit (MHRTC)
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-45355-mhrtc.html

What Actually Makes a Listing Stand Out in 2026

Thu, 05 Mar 2026 17:31:38 GMT

The playbook for selling a home has changed fast. Buyers have more options, more leverage, and they are using it.

According to the Canadian Real Estate Association (CREA), active listings on Canadian MLS® Systems were up 7.4% year-over-year at the end of 2025.¹ At the same time, the national MLS® Home Price Index declined 4% year-over-year by December 2025, with benchmark prices falling for seven consecutive months.²

What does that mean for sellers? It means the days of snapping a few photos, putting the home online, and waiting for offers are over. Today's buyers are more informed, more cautious, and more willing to walk away. The listings that win are the ones that eliminate friction at every stage — from the first scroll to the final offer.

Here is what that actually looks like.

Know What the 2026 Buyer Is Filtering For

Before we talk strategy, it helps to understand what is driving buyer decisions right now. It is not just about bedrooms and bathrooms anymore. Today’s buyer is thinking about what a home will cost them after they buy it.

Layout and Function Over Size

According to Better Homes & Gardens Real Estate’s 2026 Design Trends Report, 86% of buyers say flexible layouts help them see past square footage. Dedicated home offices, walk-in pantries, multipurpose rooms — these features outweigh raw size. Nearly half of buyers in that same study said they will not buy a home that does not feel right the moment they walk in.³

Move-In Ready Is Increasingly Non-Negotiable

Home inspections remain one of the leading reasons conditional sales fall apart. In a market where buyers have more choices and tighter budgets, surprise repair costs are a deal-breaker. Financially stretched buyers are not looking to absorb risk — they are looking for reasons to walk away.

The tolerance for deferred maintenance has evaporated. Buyers are already stressed about affordability. When a buyer sees deferred maintenance, they do not see “potential.” They see risk. Agents across the country report that buyers are increasingly requesting price reductions or closing cost credits based on inspection findings — and in a balanced-to-buyer’s market, they have the leverage to get them.

Energy Efficiency as a Financial Filter

Energy efficiency is being evaluated as a financial hedge — against utility costs, against climate risk, against future insurability. Canada’s EnerGuide rating system, backed by the Government of Canada through Natural Resources Canada, gives buyers a standardised way to compare the energy performance of homes.⁴ An EnerGuide label is increasingly becoming part of the buying conversation, and programmes like the Canada Greener Homes Initiative have raised awareness of what energy efficiency actually means in dollars saved.

Sellers who understand this can position features like updated HVAC systems, new windows, or solar panels not as nice-to-haves, but as cost-saving assets.

The bottom line: sellers who understand this mindset can position their listing to meet it head-on.

Win the Screen Before You Win the Showing

The online listing is the first showing. By the time a buyer walks through the front door, they have already decided they are interested — or they have scrolled past.

The First Photo Is Everything

85% of homebuyers consider listing photos the most critical factor when evaluating a property online.⁵ Not the price. Not the description. The photo.

Listings with professional photography receive up to 61% more views and sell 32% faster.⁵ In a market where inventory is rising and buyers are choosier, professional photography is an enormous opportunity for sellers who take presentation seriously.

Go Beyond Standard Photography

Going above and beyond can garner even more attention for your home. Twilight photos used as the primary listing image average 76% more views.⁵ Homes with aerial or drone photos can often sell faster.⁶ Listings with video get 403% more inquiries.⁶

These are not small edges. In a market where buyers have more options, these are the differences that help a listing generate momentum.

3D Tours Are Becoming Expected

Virtual tours do two things at once. They filter out unqualified buyers before they waste anyone’s time. And they give serious buyers the confidence to move faster when they do show up in person. In fact, listings with 3D virtual tours sell up to 31% faster and for up to 9% more.⁷·⁸

The visual package for a listing is doing the work of an open house before anyone sets foot in the property. If the first photo does not stop the scroll, the square footage and the price will never get a chance to matter.

Remove Every Reason to Say “No”

In a slower market, uncertainty creates lower offers or no offers. Every unanswered question is a reason to negotiate down or walk away.

The smartest move? Answer the scary questions before they are asked.

That starts with a pre-listing inspection. For $300 to $700, a seller can identify and address issues on their own timeline and terms — before a buyer’s inspector turns a minor finding into a deal-killing negotiation.⁹ More agents and brokerages across Canada are actively encouraging this approach, recognising that a pre-listing inspection gives sellers the opportunity to address repairs, set a fair price, and build buyer confidence before the listing even goes live.¹⁰

Beyond the inspection, consider providing the ages of major systems (HVAC, roof, water heater), a 12-month utility cost history, and documentation of any recent repairs. This is not about over-sharing. It is about removing the discount that buyers are mentally applying for risk and uncertainty.

Photos win hearts. Data wins brains. A winning listing needs both.

Price It Right or Pay the Price

Everything above — understanding the buyer, presenting beautifully, being transparent — leads here. Pricing. Overpriced listings do not just sit longer. They sell for less than if they had been priced correctly from the start.

The Overpricing Trap

In 2025, the national MLS® Home Price Index fell 4% year-over-year, with Ontario and British Columbia seeing benchmark declines of 5.6% and 6.4% respectively.² Sellers who made price concessions to close before year-end pulled those numbers further down.¹

When a listing sits, days on market climb and buyers start to assume something is wrong — even when the only issue was the price. That stigma is real and hard to undo. Buyers begin to wonder what they are missing.

The First Two Weeks Are Everything

A listing’s visibility and buyer interest peak immediately after launch. Pricing high to see what happens is dangerous — every week of inactivity makes the next correction less effective.

Pricing competitively from the start can attract multiple offers and often results in a higher final sale price. The goal is not to leave money on the table by underpricing. The goal is to price with precision, right at the point where serious buyers recognise value and act fast.

One Bold Move Beats Death by a Thousand Cuts

Multiple small reductions signal desperation and train buyers to wait for the next drop. A single strategic correction, aggressive enough to restart the clock, is almost always more effective.

Homes with repeated small reductions typically sell for significantly less as a percentage of original list than those with one well-timed adjustment. The market reads hesitation as weakness.

Pricing correctly from day one is not conservative. It is strategic. And it is one of the most valuable things a good agent brings to the table.

The New Definition of a Winning Listing

The 2026 winner is not the cheapest or the biggest. It is the most ready.

Prepared with the buyer’s mindset in mind. Presented with scroll-stopping professional media. Supported by transparency that builds confidence. Priced with precision from day one.

That is the new bar. Meet it, and your listing competes. Miss it, and you are watching it sit.

If you are thinking about selling or if you have a listing that is not performing the way you expected — let’s talk. The difference between a home that moves and one that sits often comes down to strategy, not the property itself.

Sources

1. CREA – “Home Sales in Canada End 2025 Quietly” https://www.crea.ca/media-hub/news/home-sales-in-canada-end-2025-quietly/

2. WOWA – Canadian Housing Market Report, January 2026 https://wowa.ca/reports/canada-housing-market

3. Better Homes & Gardens Real Estate – 2026 Design Trends Report (via HousingWire) https://www.housingwire.com/articles/better-homes-and-gardens-real-estate-details-2026-homebuyer-trends/

4. Natural Resources Canada – EnerGuide Energy Efficiency Home Evaluations https://natural-resources.canada.ca/energy-efficiency/product-energy-ratings/energuide/energuide-energy-efficiency-home-evaluations

5. PhotoUp – “Hot Real Estate Photography Statistics You Need to Know in 2025” https://www.photoup.net/learn/real-estate-photography-statistics

6. RubyHome – “Real Estate Photography Statistics” https://www.rubyhome.com/blog/real-estate-photography-stats/

7. Matterport – “With 3D Tours, Properties Sell Up to 31% Faster and at a Higher Price” https://matterport.com/blog/3d-tours-properties-sell-31-faster-and-higher-price

8. Matterport – “New Study Shows Property Buyers and Sellers Overwhelmingly Prefer Listings with 3D Tours” https://matterport.com/news/new-study-shows-property-buyers-and-sellers-overwhelmingly-prefer-listings-3d-tours

9. nesto.ca – “Home Inspection Fees & Services in Canada” https://www.nesto.ca/home-buying/home-inspection-fees-services-in-canada/

10. AmeriSpec of Canada – “Pre-Listing Inspection” https://www.amerispec.ca/service/general-home-inspections-canada/pre-listing-inspection

The True Cost of Homeownership: What You Pay Beyond the Mortgage

Mon, 02 Feb 2026 19:16:08 GMT

When many new Canadian homebuyers calculate whether they can afford a new home, they focus almost exclusively on one number: the monthly mortgage payment. It's the figure lenders use for the mortgage stress test, the number real estate agents discuss during showings, and the benchmark buyers use to determine their budget.

However, the mortgage is only the starting line. Homeowners also pay for property taxes, insurance, utilities, strata special levies, surprise repairs, and ongoing maintenance. According to housing cost breakdowns from Ratehub, these non-mortgage expenses can easily add $1,500 or more per month on top of the mortgage, depending on the home and location. When you factor in these costs, a $3,000 monthly mortgage can quickly push total housing expenses well beyond $4,500 per month.¹

So while qualifying for a mortgage answers one question, "Can a bank trust you with this loan?", it doesn't answer the more important one: "Can you comfortably maintain this lifestyle?"

In today’s market, about one in four Canadian homebuyers report experiencing at least some post-purchase regret.² While most homeowners remain satisfied, research shows that regret often emerges when the true cost of ownership—such as maintenance, repairs, and ongoing living expenses—was higher than expected. To reduce the risk of buyer’s remorse, it’s critical for homebuyers to plan not just for the mortgage payment, but for the full cost of living in the home.

The Predictable Ongoing Costs

Property Taxes

Property tax bills have been rising in many Canadian cities as municipalities work to fund infrastructure and services. In 2024, the median year-over-year change in property tax rates among 24 major Canadian cities was about 4.9 percent, with some regions experiencing even greater increases.³

Property taxes aren’t fixed. Reassessments and rate changes happen regularly, and as neighbourhood values rise, so do tax bills even when the rate stays the same.

Home Insurance

As of 2026, home insurance premiums in Canada have entered a “new normal.” Record weather-related losses in 2024, combined with higher rebuilding and replacement costs, continue to push insurers to raise rates and reassess risk across many regions.⁴

In provinces like Alberta, home insurance premiums have increased by nearly 90% over the past decade, with similar upward pressure emerging nationwide.⁵ As insurers recalibrate risk at the postal-code level, homeowners can see their premiums rise $100–$200 per month in a single year—even without making a claim or changing coverage.

Condo and Strata Fees

For buyers entering the condo market, monthly fees typically range from $0.60 to $1.00 per square foot, depending on the building and amenities.⁶ These fees are mandatory and are used to fund day-to-day operations as well as long-term reserve funds for major repairs.

Unlike the US where HOA fees are often optional community amenities, Canadian condo fees are mandatory contributions that prevent catastrophic special assessments later.

Utilities

Homeowners should budget between $250 to $600 monthly for utilities including electricity, heating, water, internet, and phone services, with costs varying based on your home's size and location.1

These expenses often come as a surprise to first-time buyers, particularly those transitioning from apartment living where some utilities may have been included in rent. Larger homes naturally require more energy for heating and cooling, while properties with outdoor spaces may see higher water usage during warmer months.

The "Commuter Tax"

There's also what might be called "the commuter tax." Moving to suburban markets for a cheaper house can increase gas and transit costs that often negate the mortgage savings. That $300,000 price difference disappears quickly if you're spending an extra $400 monthly on GO Transit or gas.

Routine Maintenance

Beyond emergencies, Canadian homes require ongoing care: lawn service, gutter cleaning, pest control, HVAC servicing, snow removal, and seasonal tasks. These aren't luxuries for many households—they're practical solutions to time constraints and property upkeep in Canada's demanding climate. Collectively, these services can add $200-400 monthly to ownership costs.

The Irregular—but Inevitable—Expenses

Major System Replacements

This is where many Canadian homeowners get caught off guard. Maintenance and repairs aren’t a matter of if but when—and rising labour and material costs have made these repairs significantly more expensive in recent years.

According to Statistics Canada and industry cost reports, home repair and maintenance costs have increased materially since 2018, driven by construction inflation and labour shortages.7 As a result, homeowners are commonly advised to budget 1%–2% of their home’s value annually for maintenance and long-term repairs.8

Major system replacements can add up quickly:

Roof replacement: $8,000–$15,000 (9)
HVAC (furnace or heat pump): $5,000–$12,000 (10)
Water heater: $1,200–$2,500 (11)
Foundation repairs: $4,000–$15,000 (12)

These aren’t hypothetical expenses—they’re inevitable over time, with uncertain timing and rising costs.

Use the inspection as a planning tool. A 15-year-old furnace or aging roof signals $8,000-15,000 in likely expenses within the first few years. That's not a deal-breaker—it's a budget roadmap. Buyers who understand these timelines can plan strategically instead of scrambling when systems fail.

Canada's climate makes this worse. The "freeze-thaw" cycle destroys Canadian roofs, driveways, and foundations faster than most international climates. A roof that might last 25 years in Arizona needs replacement after 15-18 years in Winnipeg.

Newer isn't maintenance-free. Newer builds offer a temporary reprieve, but systems still age, warranties expire, and eventually every home requires major capital improvements.

Emergency repairs happen at the worst times. An HVAC failure during a prairie cold snap, a burst pipe in winter, or ice dam damage to the roof—these scenarios happen when it's least convenient and most expensive. Without liquid reserves, a single emergency can derail finances entirely.

Ownership Costs That Creep Up Over Time

Here's what surprises many first-time Canadian buyers: the so-called "fixed costs" of homeownership aren't actually fixed.

While a locked-rate mortgage provides payment stability for your term (typically 5 years in Canada), the other components—taxes, insurance, and condo fees—can climb significantly year over year due to inflation, climate risk, and local policy changes. A mortgage payment that felt comfortable at closing can feel tight three years later, even without lifestyle changes.

The "2026 Renewal Wall" presents a significant challenge for Canadian homeowners. Approximately 60% of all outstanding mortgages in Canada are expected to renew in 2025 or 2026, with many owners facing substantial payment increases.13 Unexpected costs go beyond just maintenance and repairs. Many homeowners will experience sticker shock when their mortgage payments reset at higher rates upon renewal.

The same gradual creep affects utilities, maintenance services, and every other aspect of homeownership.

Planning Smarter: How Canadian Homeowners Can Stay Ahead

The encouraging news: buyer's remorse is largely preventable. The issue isn't buying the wrong house—it's buying without adequate financial preparation for what homeownership entails.

Create a Dedicated House Repair Fund

Separate from emergency savings, this fund exists solely for home maintenance and repairs. Treat it like a non-negotiable monthly bill—set up automatic transfers so it happens without thinking about it.

The old rule of saving 1% of your home's value annually for repairs? It's proving insufficient for some homeowners, particularly those with older properties or homes experiencing extreme weather. Aim for 2% if possible. For a newer home with recent updates, less might suffice. For an older property or one with systems nearing end-of-life, you’ll likely need to plan for greater costs.

Don't Drain Your Savings at Closing

Cash reserves protect against surprises and prevent forced debt when repairs arise. If possible, keep a liquid emergency repair fund after closing rather than putting every available dollar into the down payment or immediate renovations. That breathing room matters more than most buyers realize.

Invest in Preventative Maintenance

Annual furnace servicing, gutter cleaning, and seasonal inspections catch small problems before they become expensive emergencies. A modest service call that prevents a major system failure is always worthwhile.

Create a seasonal maintenance calendar: HVAC checkups in spring and fall, gutter cleaning before winter, roof inspections after major storms. Consistency prevents costly surprises.

Leverage Canadian Tax Advantages

Consider leveraging Canadian tax advantages to build these reserves. First-time buyers should keep their FHSA (First Home Savings Account) open after purchase, or use the tax refund generated by it to seed their repair fund. The tax benefits you received while saving for the down payment can continue working for you as a homeowner.

Know Your Home's Systems and Timelines

Understanding when major systems were last replaced helps predict future expenses. A 15-year-old water heater isn't an emergency today, but it signals a likely expense within the first few years of ownership. Planning beats scrambling.

Why Homeownership Still Makes Sense

Despite the expenses, homeownership remains one of the most powerful wealth-building tools available to Canadian families—when approached correctly.

Long-Term Equity Building

Mortgage payments build equity with every payment. Unlike rent, ownership creates a forced savings mechanism that compounds over decades. In most markets, homes appreciate over time, multiplying the wealth-building effect.

Stability and Control

Homeowners control their living environment. Want to renovate the kitchen, paint the walls, landscape the yard, or install solar panels? Ownership provides autonomy that renting never will. That control has both lifestyle and financial value.

Predictability vs. Rent Volatility

While ownership costs rise gradually over time, rent increases can be sudden and dramatic. A fixed-rate mortgage provides a level of predictability that the rental market cannot match.

Yes, taxes and insurance increase, but the principal and interest portion—typically 60-70% of the total payment—remains locked for your term. Renters face volatility on 100% of their housing costs.

Lifestyle Benefits

Beyond finances, homeownership offers intangible benefits: deeper community roots, stability for families, space for hobbies, and the pride of building something that's truly yours. These benefits have real value, even if they don't appear on a balance sheet.

The key is ensuring the financial foundation supports the lifestyle, not undermines it.

A Better Way to Think About Affordability

The true measure of affordability isn't what a lender will approve—it's what allows you to sleep well at night when the furnace fails or your mortgage comes up for renewal.

The smartest buyers calculate affordability as "mortgage plus carrying costs" from the start. This might narrow the price range slightly, but it creates breathing room and peace of mind that makes a house feel like a home.

Home ownership remains one of the most powerful wealth-building tools available to Canadian families, but only when approached with financial realism rather than maximum leverage. Having an honest conversation about what affordability truly looks like isn't about limiting dreams—it's about making sure those dreams don't become financial nightmares.

Sources:

Ratehub — Additional Monthly Costs of Homeownership
https://www.ratehub.ca/additional-monthly-costs
Wahi 2024 Homeowner Happiness Survey — Wahi
https://wahi.com/ca/en/learning-centre/real-estate-101/buy/wahi-2024-no-regrets-homebuyer-survey/
Zoocasa, Canada’s Property Taxes 2024 National Snapshot
https://www.zoocasa.com/blog/canadas-property-taxes-2024/
Harvard Western Insurance — Weather Damage Drives House Insurance Rates Up in Canada
https://harvardwestern.com/weather-damage-drives-house-insurance-rates-up-in-canada
Pembina Institute — How Governments and Insurers Can Help Lower Soaring Home Insurance Costs
https://www.pembina.org/blog/how-governments-insurers-can-help-lower-soaring-home-insurance-costs
Precondo — Maintenance Fees for Condos in Canada
https://precondo.ca/maintenance-fees-for-condos/
Statistics Canada — Which households need repairs, and how much more do they cost?
https://www.statcan.gc.ca/o1/en/plus/7347-which-households-need-repairs-and-how-much-more-do-they-cost
Ratehub — How Much Should You Budget for Home Maintenance?
https://www.ratehub.ca/blog/how-much-does-home-maintenance-cost/
Homestars — Roof Replacement Costs in Canada
https://www.homestars.com/cost-guides/roofing/roof-replacement-cost/
Custom Contracting — How Much Does HVAC Installation Cost in Ontario?
https://www.custom-contracting.ca/blog/how-much-does-hvac-installation-cost-in-ontario
HomeAdvisor (Canada) — Water Heater Installation Cost
https://www.homeadvisor.com/cost/plumbing/install-a-water-heater/
Homestars — Foundation Repair Costs
https://www.homestars.com/cost-guides/foundations/foundation-repair-cost/
Bank of Canada — How Will Mortgage Payments Change at Renewal? (Staff Analytical Note 2025-21)
https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/

2026 Canada Housing Market Forecast: Will Buyers Finally Re-Enter the Market?

Mon, 05 Jan 2026 16:17:50 GMT

Will 2026 be the year Canadian buyers stop waiting? Most major housing forecasters believe activity will finally pick up after two muted years, but expectations vary on how strong that rebound will be and where it will show up first. After a sluggish and uncertain 2025, the Canadian housing market appears positioned for gradual normalization rather than a sharp recovery.

The Canadian Real Estate Association (CREA) now forecasts national home sales of roughly 509,000 transactions in 2026, representing about 7–8% growth year over year.¹,² That would place activity above 2025 levels, though still below long-term historical averages. Average prices are expected to return close to the $700,000 range, reflecting modest appreciation rather than a renewed surge.¹,³

Nearly every major Canadian forecaster agrees on the direction of sales activity—more transactions in 2026 than in 2025—but opinions diverge on prices and the pace of recovery.¹,⁴,⁷,⁹ Where opinions diverge is on the pace. Some expect buyers to re-enter steadily as rates stabilize. Others believe affordability constraints will continue to cap transaction volumes, particularly in higher-priced regions. As in the U.S., the key question is behavioural: when do buyers and sellers finally accept that current conditions represent the new normal?

The 2025 Context: A Delayed Recovery, Not a Breakdown

In early 2024, CREA projected that 2025 would mark a meaningful rebound year for Canada’s resale market, driven by pent-up demand and easing interest rates.¹ By late 2024, that recovery appeared to be forming. Under that forecast, national home sales were expected to exceed 500,000 transactions, with average prices climbing back toward $700,000.

That momentum stalled in early 2025. Trade uncertainty, broader economic unease, and affordability pressures pushed many buyers back to the sidelines, prompting CREA to downgrade its outlook⁴. Sales activity softened most noticeably in British Columbia and Ontario, while prices in several major urban markets came under renewed pressure.⁴,¹⁰

Importantly, the market did not deteriorate further. Beginning in spring 2025, CREA data showed a showed continued improvement in sales activity, suggesting that demand was delayed rather than destroyed.⁵ The result is a downward revision to 2025 forecasts, but solid upward momentum heading into 2026, with last year’s 2025 expectations now effectively pushed out one year.¹,⁴

2026 Forecasts: Where Canadian Forecasters Agree and Disagree

Sales Activity: Gradual Thaw, Not a Flood

Sales forecasts for 2026 cluster more tightly in Canada than in the U.S., but uncertainty remains. CREA’s national forecast implies high-single-digit growth, bringing sales back into the low-500,000 range.¹,² RE/MAX Canada similarly expects increased activity, citing improving consumer confidence and buyers adjusting to current financing realities.⁹

The central uncertainty is not economic capacity but psychology. Many Canadian buyers spent the past two years waiting for more aggressive rate cuts or price declines. As those expectations fade, the decision to re-enter the market increasingly hinges on life events—job changes, family needs, downsizing, or relocation—rather than market timing.³,⁷

Unlike the pandemic rebound, 2026 is unlikely to bring a surge of speculative or urgency-driven buying. Instead, forecasters expect incremental increases in transaction volume, market by market, price tier by price tier.⁹,¹⁴

Home Prices: A Tug-of-War Between Growth and Correction

Price forecasts for 2026 reveal a rare divergence among Canada’s top housing analysts, signaling a market in transition. While the consensus points to stability, experts disagree on whether the national average will tick up or drift slightly lower.

CREA projects the national average home price to rise roughly 3.2% in 2026, returning close to the $700,000 mark.¹,² This aligns with Royal LePage’s outlook, which forecasts aggregate price growth of approximately 1%, supported by steady demand in more affordable provinces.⁷

However, not all outlooks are positive. RE/MAX Canada stands as a notable outlier, forecasting a national average price decline of roughly 3.7%, despite rising sales activity.⁹ This bearish view highlights the heavy weight of inventory buildup in Canada’s most expensive markets.

The "Two-Speed" Market Continues Regardless of the national average, all forecasters agree on a widening regional gap:

The Correction Markets: Higher-priced regions like Greater Toronto and Greater Vancouver are expected to see flat to negative price movement. Here, affordability ceilings have been hit, and listing inventory is rising faster than sales.⁷,⁸
The Growth Markets: In contrast, affordable regions—specifically Alberta, Quebec, and Atlantic Canada—are forecast to outperform. These markets continue to attract inter-provincial migration and offer entry points that first-time buyers can actually afford.⁷,⁸

The data suggests that "national" price trends are becoming less relevant than local dynamics. Supply remains structurally constrained long-term, but in 2026, pricing power is increasingly localized.¹⁰,¹¹

Interest Rates and Affordability: Stability Over Relief

Unlike the U.S., Canadian mortgage expectations hinge on Bank of Canada policy rather than long-term bond-market forecasts. Current consensus suggests the policy rate is nearing a plateau, with rate cuts largely behind us and borrowing costs expected to remain relatively stable into 2026.¹²,¹³

For buyers and sellers, this means rate stability matters more than rate relief. While borrowing costs may ease modestly, affordability improvements are expected to come gradually through income growth and slower price appreciation rather than dramatic financing changes.³,¹³

The practical implication mirrors the U.S. experience: waiting for a return to 2020–2021 conditions is increasingly unrealistic. The market is adjusting to a higher-rate baseline, and participants must plan accordingly.³,⁷

What This Means for Buyers

For buyers, 2026 offers improved conditions compared with the past two years—but not a buyer’s market across the board. Inventory has increased modestly, competition has cooled, and bidding wars are less common outside of the most desirable properties and locations²,⁴.

At the same time, prices are not expected to fall meaningfully at the national level. Waiting may result in slightly better selection or marginally lower borrowing costs, but not dramatically cheaper homes.1,3,7 As a result, the advantage in 2026 lies with prepared buyers: those with financing in place, realistic expectations, and flexibility on timing or location.

First-time buyers continue to face the steepest challenges. High upfront costs and qualifying constraints remain barriers, particularly in major metros.14 However, slower price growth and calmer competition give first-time buyers more room to negotiate and plan than during the pandemic surge.⁹

What This Means for Sellers

For sellers, 2026 is likely to feel more balanced—and more demanding—than recent years. The automatic leverage sellers enjoyed during the pandemic has faded. Outcomes will depend heavily on pricing accuracy, property condition, and local supply-demand dynamics.⁷,¹⁰

Overpricing carries greater risk in a market where buyers are patient and well informed. Homes that are priced correctly and well prepared should still sell efficiently, while those anchored to peak-era expectations may linger.7,10 Concessions and strategic preparation are once again meaningful differentiators rather than optional extras.10

The lock-in effect remains a consideration for homeowners with very low mortgage rates, but life events and accumulated equity increasingly outweigh rate comparisons.11,14 As in the U.S., sellers are slowly recalibrating to the reality that today’s rates are durable, not temporary.

Renters and the Rent-vs-Buy Decision

For renters, 2026 remains a pragmatic decision year rather than a forced transition point. Renting often continues to offer lower short-term costs and flexibility, particularly in high-priced markets.14,15 At the same time, modest price appreciation suggests that waiting indefinitely may not yield better entry points.¹,³

For those planning to buy in the future, 2026 is best viewed as a preparation window—strengthening credit, building savings, and identifying target markets—rather than a year of dramatic opportunity or risk.15

Conclusion: A Market Returning to Rhythm

The 2026 Canadian housing market is defined less by recovery than by normalization. Sales activity is expected to rise modestly. Prices should increase slowly, with wide regional variation. Interest rates are stabilizing rather than collapsing. The extremes of the pandemic era are firmly behind us.

Success in 2026 will not come from timing the market perfectly, but from adapting to it. Buyers gain more choice and negotiating room but face ongoing affordability challenges. Sellers retain advantages in undersupplied markets but must price and prepare carefully. Renters balance flexibility against long-term ownership goals.

As the market settles into a more sustainable rhythm, realistic expectations and local expertise matter far more than bold predictions.

1. Canadian Real Estate Association (CREA).
CREA Updates Resale Housing Market Forecasts for 2025 and 2026.
https://www.crea.ca/media-hub/news/crea-downgrades-resale-housing-market-forecast-amid-tariff-uncertainty-and-economic-uncertainty/

2. CREA.
Quarterly Canadian Housing Market Forecasts.
https://www.crea.ca/housing-market-stats/canadian-housing-market-stats/quarterly-forecasts/

3. Yahoo Finance Canada.
Home prices expected to tick higher in 2026 as sales rebound.
https://ca.finance.yahoo.com/news/home-prices-expected-tick-higher-090007704.html

4. Mortgage Professional Canada (MPA).
CREA trims 2025 home sales forecast as buyers delay return.
https://www.mpamag.com/ca/mortgage-industry/market-updates/crea-trims-2025-home-sales-forecast-as-buyers-delay-return/553264

5. CREA.
Canadian home sales edge up again following third interest rate cut.
https://www.crea.ca/media-hub/news/canadian-home-sales-edge-up-again-following-third-interest-rate-cut/

6. CBC News.
Canadian home sales rise as buyers slowly return.
https://www.cbc.ca/news/business/crea-home-sales-october-9.6981575

7. Royal LePage.
Canada’s housing market poised for a reset in 2026.
https://www.royallepage.ca/en/realestate/news/canadas-housing-market-poised-for-a-reset-in-2026-with-modest-price-growth-and-increased-activity/

8. Royal LePage Blog.
A reset is in store for Canada’s housing market in 2026.
https://blog.royallepage.ca/a-reset-is-in-store-for-canadas-housing-market-in-2026/

9. RE/MAX Canada.
Canadian Housing Market Outlook.
https://blog.remax.ca/canadian-housing-market-outlook/

10. Real Estate Magazine.
CREA downgrades housing market forecast.
https://realestatemagazine.ca/crea-downgrades-housing-market-forecast/

11. Real Estate Magazine.
Five years of market swings set the stage for 2026.
https://realestatemagazine.ca/opinion-5-years-of-market-swings-set-the-stage-for-2026/

12. Reuters.
Bank of Canada seen holding rates as housing stabilizes.
https://www.reuters.com/world/americas/bank-canada-done-cutting-rates-least-until-2027-house-prices-rebound-soon-2025-12-05/

13. Bank of Canada.
Monetary Policy Reports & Rate Announcements.
https://www.bankofcanada.ca/core-functions/monetary-policy/

14. Mortgage Professional Canada (MPA).
Buyers could edge back to Canada’s housing market in 2026, says Royal LePage.
https://www.mpamag.com/ca/mortgage-industry/industry-trends/buyers-could-edge-back-to-canadas-housing-market-in-2026-says-real-estate-giant/559474

15. Real Estate Magazine.
Real estate trends for 2026: Why Canada’s future may be brighter than it looks.
https://realestatemagazine.ca/real-estate-trends-for-2026-why-canadas-future-may-be-brighter-than-it-looks/

Planning Your 2026 Real Estate Moves: A Guide to the Best Buying and Selling Seasons

Mon, 08 Dec 2025 17:08:51 GMT

Timing isn’t everything in real estate, but it can still be the difference between saving real money or paying a premium, selling in 30 days or sitting for three months, and negotiating from a position of strength or uncertainty. As we look toward 2026, that timing question matters even more in Canada. CREA is calling for a modest pickup in activity into 2026 as rates ease and confidence returns, which means we’re heading back into a more “normal” seasonal market, not the anything-goes conditions of the pandemic years.1 Knowing when to make your move can have a real impact on the outcome.

The challenge? Not everyone gets to wait for the “perfect” month. Job relocations still happen in January. Military, government and corporate transfers often target late spring. Families want to be settled before school starts in September. So instead of chasing a mythical best week, it’s smarter to understand how each Canadian season behaves—and then work inside your timeline.

Spring: Peak Selling Season (March–May)

Spring isn’t called peak season by accident. The Canadian market quite literally wakes up after winter. National brokerages like RE/MAX and Royal LePage say the same thing every year: spring is the most desirable time to list because homes simply show better, buyer traffic is higher, and many buyers want to close in time to move over the summer.3,4 A 2024 analysis from Zoocasa looking at several major Canadian markets showed the same pattern—activity typically ramps up in March, peaks through April and May, and in some years even starts a touch earlier as buyers try to get ahead of the spring rush.2

Buyer psychology helps. Longer daylight means more evening showings. Melting snow and fresh landscaping make detached homes look their best. And families with school-aged kids start shopping in March and April so they can move in July or August. In years when inventory is tight in Toronto, Vancouver, Ottawa/Gatineau or Victoria, this spring surge can still create multiple-offer situations—especially on well-priced, well-located properties. That will be even more likely if 2025’s softer prices tempt more buyers back in 2026.

The Competition Factor

Of course, spring’s upside comes with a trade-off: everyone else knows it’s a good time too. More listings hit the market, so sellers have to do the basics well—accurate pricing, strong photos, pre-list prep, and real marketing—to stand out. Buyers benefit from more choice, but they also face the most competition for the “nice” listings. In hot pockets of the GTA, Calgary, Halifax or parts of the Lower Mainland, that can still mean acting quickly and writing tighter offers than you would in October.

Summer: Extended Peak Season (June–August)

As spring rolls into summer, the Canadian market usually keeps much of its momentum. June is often one of the busiest closing months of the year, and in Quebec there’s an extra push because so many leases turn over on or around July 1—“moving day”—which keeps trucks, buyers, and sellers active.6

Summer lines up perfectly with family life. Kids are out of school, weather is predictable, cottages are opening, and people have time to tour. Outdoor features also show at their absolute best—decks, patios, rooftop terraces, west-facing balconies in Vancouver, even small yards in Toronto. Buyers will often pay a convenience premium here because moving in July is simply easier than moving in January.

By late August, however, you can feel things shift. Early-summer listings that were too ambitious on price can start to look “stale.” Families are turning their attention back to school. Serious buyers are still around, but urgency eases—good news if you were beaten out in June.

A Note on Moving Costs

There’s a very Canadian practical piece people forget: it literally costs more and is harder to book a move in peak season. In Quebec, July 1 is so busy that moving companies advise booking months in advance, and local news outlets report higher rates around that date because demand is intense.6 If your timing is flexible, a late-fall or winter move can save you money.

Fall: Underrated Opportunity Season (September–November)

Fall might be real estate’s best-kept secret—on both sides of the transaction. After summer vacations, a lot of qualified buyers come back into the market, but there are usually fewer new listings than in April or May. That combination gives good properties room to stand out. Royal LePage and Global News have both been noting that fall 2025 is showing more balance and a bit more negotiating room, and if that pattern continues, fall 2026 could be an excellent time for buyers who want value without spring’s bidding wars.4,5

For sellers, fall has another quiet advantage: buyers are more serious. Casual browsers drop off once school resumes and weather cools. People shopping in October usually want to be in before snow and holidays. That natural year-end urgency—close before winter, avoid carrying costs over the holidays, move before the deep freeze—helps deals get done.

This is also when price gaps from summer can show up. As activity cools and more listings sit, buyers can sometimes negotiate a bit more, especially in markets where 2025 softness hasn’t fully cleared out by early 2026. You may not see a giant discount in downtown Toronto or central Vancouver, but you can often get better terms.

Winter: Value Season (December–February)

Winter gets a bad reputation in Canadian real estate because showings are harder, curb appeal is lower, and nobody loves moving in slush. But for buyers with flexibility, winter is often the best value play of the year. Fewer people list when it’s -15°C, so the buyers who are out have more leverage—days on market are longer, and sellers who have to sell are more negotiable. CREA’s 2025 numbers already show a market that’s sensitive to confidence and rates; if that softer tone spills into early 2026, winter buyers will be in a good position.1

Winter also tells you the truth about a property. You can see how the home actually handles a Canadian winter—drafts, windows, ice dams, heating—information you can’t always get from a May showing. That’s powerful for inspections and negotiations.

There are trade-offs, of course. Sellers face the lowest foot traffic of the year, holiday distractions, and limited daylight for showings. Curb appeal is just harder when everything is under snow. But fewer competing listings can work in your favour if you price realistically and present well. Serious buyers will still come out in January—especially job relocations.

Regional Differences: Not All Canadian Markets Are Equal

One thing we have to say in a Canadian version of this post: where you live matters a lot. Seasonal swings are sharpest in places with real winters and short construction/moving seasons—think the Prairies, Atlantic Canada, and most of Quebec—because everyone tries to cram listing, selling, and moving into a six- or seven-month window. In those places, spring and summer really do carry most of the year’s volume.

In contrast, the BC Lower Mainland and much of Southern Ontario can support more year-round activity because weather is milder and buyers stay engaged. Those markets can have excellent fall seasons, and even winter sales don’t fall off a cliff the way they do in January in Winnipeg.

That’s why your local board stats (TRREB, REBGV, OREB, ACI, Nova Scotia Association of REALTORS®, etc.) and your agent’s read on inventory will always beat national averages. CREA and Royal LePage are both projecting more balance and slightly better affordability into 2026, but how that shows up in Halifax versus Calgary versus Montreal won’t be identical.1,7

Pricing Strategies by Season

Pricing strategy has to move with the season. What works in May doesn’t always work in December.

In spring and early summer, when demand is highest, you can afford to be a little more ambitious—especially if your home shows beautifully and there isn’t an identical property for sale on your street. Canadian buyers are used to seeing sharp, competitive pricing in April. A well-marketed, fairly priced listing can still attract multiple offers in 2026 if rates have eased and buyers have come back, as most forecasts suggest.

In fall, it’s smart to price the market you actually have, not the one you remember from May. Slightly more realistic pricing pulls in the serious buyers who came back after summer and want to be in before winter. And in winter, you have to be the most compelling option in your price band. A 5–10% difference in asking price can be the difference between sitting and selling when there are only a handful of active buyers in your segment.

Buyer Offer Strategies by Season

On the buy side, spring and early summer are when you need to be the most organized. Get pre-approved, have your documents ready, and be willing to move fast on the right property. In hotter submarkets, you may still need to improve terms—flexible possession, fewer minor asks, or a slightly stronger price—to beat other buyers.

Fall and winter, by contrast, are when you can ask for more. Smaller buyer pools mean more leverage: closing-cost help, small repairs, longer condition periods, even winter move-in credits if snow removal or storage is an issue. Motivated sellers tend to be most flexible late in the year.

Bottom Line

Seasonality still matters in Canada. Spring and early summer deliver the best visibility and fastest sales. Fall is quieter but often smarter. Winter rewards flexible buyers. But your personal timeline, your province’s climate, and 2026’s rate path should drive the decision more than a calendar myth.

If you tell me which market you’re in—GTA, Lower Mainland, Calgary/Edmonton, Atlantic, or Quebec—I can tighten this even further to match your board’s typical seasonal pattern for 2026.

References

Canadian Real Estate Association. “CREA updates resale housing market forecasts for 2025 and 2026.” Oct. 16, 2025. https://www.crea.ca/media-hub/news/crea-downgrades-resale-housing-market-forecast-amid-tariff-uncertainty-and-economic-uncertainty/
Zoocasa. “Spring’s Impact on Canadian Home Sales.” https://www.zoocasa.com/blog/springs-impact-on-canadian-home-sales/
RE/MAX Canada. “Is Now the Best Time to Sell?” https://blog.remax.ca/best-time-to-sell-a-house/
Royal LePage. “Slight uptick in activity as fall housing market gets underway, price growth lags behind.” Oct. 15, 2025. https://blog.royallepage.ca/slight-uptick-in-activity-as-fall-housing-market-gets-underway-price-growth-lags-behind/
Global News. “Fall housing market moving towards a ‘balance.’” Oct. 15, 2025. https://globalnews.ca/news/11477731/fall-housing-market-balance/
North Shore News (Canadian Press). “Quebec’s traditional moving day arrives as thousands still looking for new homes.” July 1, 2025. https://www.nsnews.com/national-business/quebecs-traditional-moving-day-arrives-as-thousands-still-looking-for-new-homes-10888112
Royal LePage. “Canadian home sales ease in September after five-month streak of gains.” Oct. 16, 2025. https://blog.royallepage.ca/crea-monthly-housing-report-september-2025/

Can You Really Trust Online Home Valuations?

Mon, 17 Nov 2025 18:27:53 GMT

For millions of Canadians, the home‑search journey often starts on REALTOR.ca — Canada’s largest real estate platform — and continues across consumer portals and brokerage sites. Along the way, many homeowners encounter online valuation widgets (AVMs) from data apps and brokerages (e.g., HouseSigma, Zolo, and others) that promise an instant estimate of value. The appeal is obvious: quick, free, and convenient.

A quick caution before we go further: even the best‑known U.S. portals frame their AVMs as starting points, not appraisals — and high‑profile misses have made headlines.1 The lesson applies in Canada too: an automated number is helpful for curiosity, but risky as a pricing strategy.

In this article, we'll examine how these powerful algorithms work, reveal the data behind their wildly varying accuracy rates, identify what they systematically miss, and show why local human expertise remains irreplaceable when precision — and your equity — matters most.

How These Algorithms Actually Calculate Your Home's Value

Automated Valuation Models are algorithms designed to crunch massive amounts of data in seconds.3 Think of them as sophisticated calculators—impressive in computational power, but limited by the quality and completeness of their inputs.

These systems analyze public records, tax assessments, recent comparable sales, and basic property characteristics like bedrooms, bathrooms, and square footage.4 For standard properties with plenty of recent comparable sales, this data-driven approach can produce reasonable estimates.

But here's the fundamental limitation that shapes everything else we'll discuss: these models rely purely on historical data and never actually visit your property. They're backward-looking by design, using what sold yesterday to predict what might sell tomorrow, and while an algorithm can tell you that your home has three bedrooms, it cannot tell you that the primary suite has stunning morning light that makes buyers fall in love.

Accuracy and When Online Estimates Miss the Mark

Now for the numbers that every homeowner needs to understand.

When discussing AVM accuracy, you'll encounter the term "median error rate." This measures how far the estimate typically deviates from the actual sale price—specifically, half of all estimates fall within this percentage, and half fall outside it.2 Lower is obviously better, but context is everything.

The U.S. Benchmark: Zillow and Redfin

While Canada’s leading portals — such as REALTOR.ca, HouseSigma, and Zolo—do not publish their own first-party accuracy data, their U.S. counterparts do. These figures provide a useful benchmark for understanding the potential variability of automated estimates:

Platform	On-Market Error	Off-Market Error
Zillow	1.94% median²	7.06% median²
Redfin	1.98% median⁵	7.72% median⁵

Canadian Context

In Canada, popular home search platforms like HouseSigma and Zolo provide home estimates but do not publicly disclose error rates or accuracy metrics. That means there’s no transparent standard for how close those estimates typically come to actual sale prices. Based on industry experience and the same underlying data constraints, Canadian AVM accuracy is likely to vary just as much—or more—than the U.S.

This is especially true in markets with low inventory, unique properties, or rapidly shifting conditions, where algorithms have fewer comparable sales to draw from.

What This Means in Actual Dollars

Let's make this tangible for Canada. On a $400,000 home, a 7% median error translates to ±$28,000 or more–and remember, that's the median, meaning half of all estimates miss by even more than that. For a $600,000 property, you're looking at potential discrepancies exceeding $40,000. For luxury homes, the gap can easily reach six figures. The difference between an accurate valuation and an algorithm's best guess can be immense–so it’s important to understand their limitations.

The Algorithm's Blind Spots: What Online Estimates Cannot See

If AVMs have access to so much data, why do they miss by such significant margins? The answer lies in what they can't measure.

The Condition Conundrum

This is the AVM's Achilles heel. Every algorithm must assume your home is in "average condition." Your newly renovated kitchen with custom cabinetry? Average. Your finished basement adding 600 square feet? Average. Your brand-new HVAC system? Average. Flip it around—deferred maintenance, a crumbling driveway, outdated bathrooms—all get the same treatment. This isn't minor—condition often accounts for significant price variations between otherwise identical properties.

Location Nuances and Human Appeal

Algorithms understand neighborhoods but struggle with subtleties. Two identical homes—one on a quiet cul-de-sac, another backing a busy road. Same value to an algorithm, vastly different to buyers.

Market Lag and Unique Properties

Because AVMs depend on historical sales data, they lag behind current conditions. In rapidly moving markets, this lag can render estimates nearly useless. For custom homes, luxury properties, or anything unique, AVMs often fail completely—there simply aren't comparable sales to analyze.

The Solution: Why a CMA Is the Indispensable Tool

A Comparative Market Analysis (CMA) is the professional valuation tool that real estate agents provide. It's the bridge between raw data and real-world value—combining analytical power with human expertise and local knowledge.

What Makes a CMA Superior

Physical Inspection: Unlike an algorithm, your agent actually walks through your home. They see the quality of updates, evaluate floor plan flow, notice natural light, and assess the overall "feel" that influences buyer psychology. They identify value-adding features no database captures.

Micro-Local Knowledge: Micro-local effects (e.g., street-by-street premiums in Toronto’s TRREB area or Vancouver’s REBGV area) are hard for national algorithms to capture—and are exactly what a local CMA is built to adjust for. Agents live and breathe their local markets. They explain not just what your home is worth, but why—and how to position it strategically.

Real, Adjusted Comparables: Your agent doesn't just pull recent sales—they analyze and adjust them. They can justify why your home is worth $20,000 more than one down the street: "Their kitchen had 1990s oak cabinets; yours has modern shaker style buyers want, justifying a $15,000 adjustment. They had builder-grade carpet; you have refinished hardwood, worth another $10,000."

Feature	AVM (Zestimate/Redfin)	CMA (Agent Valuation)
Who provides it	Automated algorithm	Licensed local agent
Property Inspection	No physical walk-through	Yes, condition is assessed
Neighborhood Nuance	Limited (based on ZIP/broad area)	Deep local insight (street, school zones, micro-market)
Update Frequency	Automated (can lag behind market shifts)	Real-time human context
Accuracy	~2% (on-market), ~7% (off-market)	Typically closer to final sale price
Pricing Strategy	None (provides only a number)	Tailored strategy (under-list, market positioning)
Best Use	Rough, initial estimate	Serious pricing & selling decisions

Why Pricing Correctly From Day One Matters

For sellers, an accurate CMA prevents the two most expensive mistakes. Overpricing based on an inflated estimate leads to your home sitting stagnant—each week without offers damages your negotiating position and ultimately results in selling for less than if you'd priced correctly initially. Underpricing based on a conservative algorithm means leaving tens of thousands on the table. In real estate, you rarely get a second chance at a first impression. The initial listing price sets market perception, and getting it right requires the precision only a CMA provides.

When Online Valuations are Useful

For Sellers: Never set your listing price based solely on an online estimate. Use it as a conversation starter, but rely on your agent's CMA to build a strategic, defensible pricing plan.

For Buyers: Use online estimates to establish a general ballpark before you start searching, but trust your agent's analysis of recent comparable sales when crafting offers. The algorithm doesn't know that three other buyers are submitting offers this weekend—your agent does.

BOTTOMLINE: Technology Is a Tool, Not a Guide

Online home valuations are impressive tools for satisfying curiosity, but they remain prone to significant error—especially for off-market properties where median error rates of 7-8% translate to tens of thousands of real dollars. The blind spots around condition, location nuances, and market timing aren't minor technical limitations—they're fundamental gaps that only human expertise can fill.

When it comes to your largest financial asset and a decision that will impact your life for years, technology can give you a ballpark, but only a professional CMA can give you the strategic precision you need.

Ready to know what your home is really worth? Contact me today for a complimentary Comparative Market Analysis — a personalized, in-person valuation that examines your specific property, incorporates current market dynamics, and provides the strategic guidance the internet simply cannot match.

Sources

Inman -
https://www.inman.com/2016/05/18/zillow-ceo-spencer-rascoff-sold-home-for-much-less-than-zestimate/
Zillow Zestimate Accuracy -
https://www.zillow.com/z/zestimate/
Rocket Mortgage: Automated Valuation Model -
https://www.rocketmortgage.com/learn/automated-valuation-model
Experian: What Is an Automated Valuation Model -
https://www.experian.com/blogs/ask-experian/what-is-automated-valuation-model/
Redfin -
https://www.redfin.com/redfin-estimate

How to Spot Real Estate Scams (and Protect Your Investment)

Thu, 02 Oct 2025 13:47:08 GMT

Real estate scams are targeting more victims than ever before, and they're becoming increasingly sophisticated. Canadians reported losing $638 million to fraud in 2024, with authorities warning that only 5–10% of incidents are reported at all¹. Even more concerning, Canadian lawyers, title insurers and regulators have flagged a rise in identity-based title and mortgage fraud during real estate closings, where large deposits and tight timelines create opportunities for criminals².

These aren't isolated incidents targeting the naïve or unprepared—they're professional operations that can fool experienced investors and savvy consumers alike. Scammers have adapted to modern technology and remote transactions, making their schemes harder to detect and more financially devastating than ever.

The shift to digital communications and remote closings has created new vulnerabilities that criminals actively exploit. Whether you're a first-time home buyer, seasoned investor, property owner, or renter, understanding these threats and knowing how to protect yourself is essential. From wire-transfer hijacking to fake listings, title theft, and impostor agents, real estate scams come in many forms. Here's how to recognize and protect yourself from the most common threats.

Wire Transfer Fraud: The Costliest Threat

Wire fraud strikes at closing when buyers are most vulnerable. Criminals hack or spoof emails from real estate professionals or law firms, then send fake wiring instructions directing your down payment to their accounts. The setup appears completely legitimate—the email looks official, uses proper terminology, and creates urgency around closing deadlines.

In Canada, deposits are typically handled through lawyers'/notaries' trust accounts, but that doesn't eliminate risk. CREA and Canadian practitioners warn that wire transfers are designed to be irreversible, and once funds leave your account, recovery is unlikely³. For many Canadian homebuyers, typical losses can reach six figures, representing their entire life savings and down payment.

Critical warning signs include:

Last-minute wiring instruction changes labelled "urgent" or citing a "closing emergency"
Email address anomalies with letters off or different domains (e.g., titlle-co.ca instead of title-co.ca)
Pressure tactics demanding immediate action to avoid delays

Protection requires verification. Always confirm trust account details in person or by calling verified phone numbers found independently (not from the email thread). Many Canadian firms now include explicit wire-fraud warnings and require verbal confirmation of transfer instructions before funds are sent.

If fraud occurs, contact your bank immediately, then report to local police and the Canadian Anti-Fraud Centre (CAFC) without delay.

Rental Listing Scams: Too Good to Be True

Rental scams use fake listings or fraudulent "landlords" to collect upfront payments for properties that don't exist or aren't actually available. Scammers copy real listings with gorgeous photos and below-market rents to lure victims—especially in tight rental markets.

Urgency tactics can be persuasive. The emotional manipulation is deliberate—scammers create urgency by claiming multiple interested renters or limited availability. They often pose as property managers or landlords who are conveniently out of the province, overseas for work, or on missionary trips.

Red flags include:

Unusually low rent for the area or property quality
"Landlords" who claim they're out of the province/country and can't meet in person
Upfront payment requests (e-transfer, wire, crypto, gift cards) before viewing or signing

Never send money for rentals you haven't verified. Insist on inspecting properties before paying anything and verify ownership via your provincial land registry. Use trusted channels and beware of pressure to "hold" the unit with a deposit.

Homeowners can also be targeted when scammers impersonate owners to illegally rent out vacant homes. If you own vacant property, monitor for fake rental ads using your address.

Title and Deed (Land Title) Fraud: Stealing Your Home

Title fraud involves criminals forging transfer documents and/or using stolen identities to take out mortgages or even sell your home without your knowledge. Vacant homes, investment properties, and mortgage-free homes are prime targets because fraud is less likely to be detected quickly.

One insurance investigator documented at least 30 homes sold through total title fraud in the Greater Toronto Area over an 18-month period⁵. In one documented case, an Etobicoke couple who moved overseas for work discovered criminals had fraudulently sold their home while they were abroad. The couple only learned about the sale months later when strangers were found living in their house⁶.

Warning signs include:

Unusual mail, such as notices of new mortgages you didn't initiate
Stopped property tax bills or deed/ownership notices you don't recognise
Unexpected default, power-of-sale, or foreclosure notices

Protect yourself:

Check your title periodically via your provincial land registry office and consider title insurance
Set up title/activity alerts where available
Guard your personal information carefully; identity theft is often the gateway to title fraud

Fake Buyers, Sellers, and Real Estate Professionals

Identity scams involve criminals impersonating transaction parties or real estate professionals.

Fake buyer scams target home sellers with attractive cash offers, then send bogus bank drafts/certified cheques for deposits, often overpaying and asking sellers to wire back the difference.

Seller impersonation has surged across Canada, with criminals posing as property owners to list and sell properties without authorization. Impostor agents/brokers create phoney profiles, sometimes stealing legitimate agents' names and photos. In May 2025, a Brampton man was charged with fraud for allegedly collecting nearly $170,000 in deposits from nine homebuyers for pre-construction homes he had no right to sell⁷.

Always verify identities and licences through your provincial regulator (e.g., RECO in Ontario, BCFSA/RECBC in BC, RECA in Alberta)⁹. Ask for government-issued photo ID and independently verify property ownership through the land registry.

Bait-and-Switch Schemes

These scams promise attractive deals, then switch to inferior terms once you're hooked.

Rental bait-and-switch advertises great properties that are suddenly "unavailable," then pushes less desirable alternatives at higher prices.

"We Buy Houses" schemes offer inflated purchase prices, then renegotiate last-minute or assign contracts to other buyers, often leaving sellers with well-below market outcomes.

Mortgage bait-and-switch promises unrealistic rates requiring upfront fees, then switches to higher rates. In Canada, claims that sidestep the federal mortgage stress test are red flags.

Trust your instincts when deals change suddenly or seem too good to be true. Get all offers in writing and avoid non-refundable upfront fees.

Best Practices: Your Defence Strategy

Work with licensed professionals. Use reputable real estate agents, lawyers/notaries, and mortgage brokers. Verify licences with your provincial regulator.

Verify all identities. Ask for photo ID and confirm credentials independently. Meet in person when possible, and confirm trust account details by phone using a verified number.

Protect personal information. Use strong passwords, enable two-factor authentication, and never email sensitive financial data.

Avoid pressure tactics. Legitimate deals don't require bypassing verification safeguards or making instant deposits.

Use secure payment methods. Deposits should go to verified lawyer/notary or brokerage trust accounts. Avoid cash, gift cards, crypto, or e-transfers to individuals.

Monitor your property. Regularly check land title records and set up alerts or use title insurance where available.

Report suspected fraud. Contact your bank and local police, then report to the Canadian Anti-Fraud Centre (CAFC)⁸.

BOTTOM LINE

Real estate scams exploit trust and urgency, but the warning signs are consistent: bypassed safeguards, pressure tactics, unverified identities, and deals too good to be true. Protection comes from verification, patience, and working with experienced Canadian professionals who can spot red flags.

Whether you're buying, selling, or renting, take time to properly vet every aspect of your transaction. If something feels wrong, pause and investigate—it's better to lose a "great" deal than become a fraud victim.

Planning a real estate transaction in Canada? Let's discuss how to protect your investment while achieving your goals. An experienced Canadian agent can help you navigate the process safely and spot potential scams before they become costly problems.

Sources

Competition Bureau Canada - https://www.canada.ca/en/competition-bureau/news/2025/02/fraud-prevention-month-to-focus-on-impersonation-fraud-one-of-the-fastest-growing-forms-of-fraud.html
CityNews - https://www.ctvnews.ca/business/homeowners-realtors-should-take-steps-to-protect-against-title-fraud-experts-1.6810853
Canadian Real Estate Association - https://www.crea.ca/cafe/what-realtors-should-know-about-wire-transfer-fraud/?category=53794
Canada Mortgage and Housing Corporation - https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/market-reports/rental-market-reports-major-centres
Maclean's - https://macleans.ca/economy/realestateeconomy/homeowner-scam-canada-total-title-fraud/
CBC News - https://www.cbc.ca/news/canada/toronto/couple-toronto-home-sold-says-system-failed-them-1.6726043
CBC News - https://www.cbc.ca/news/canada/toronto/brampton-man-charged-fraud-alleged-real-estate-deposit-scam-1.7531181
Financial Consumer Agency of Canada - https://www.canada.ca/en/financial-consumer-agency/services/real-estate-fraud.html
Richmond RCMP - https://voiceonline.com/richmond-rcmp-warn-public-about-rental-deposit-scams/

What Makes a Great Long-Term Rental Property? A Checklist for Smart Investors

Mon, 08 Sep 2025 15:07:16 GMT

Real estate remains among Canada’s top choices for building long-term wealth. A recent survey found that 87% of Canadians feel more confident investing in real estate than in publicly traded stocks. This isn't just sentiment; 76% of the Canadian real estate investors surveyed own properties beyond their primary residence.1

The truth is, real estate offers unique advantages that traditional investments can't match. A rental property provides multiple income streams, delivering monthly rent payments while simultaneously building equity and appreciating in value. Plus, leverage amplifies returns: Even if you put down 20%, you’ll benefit from 100% of the property's appreciation gains. Tax deductions on rental expenses can further boost profitability.3

When executed wisely, rental properties can deliver steady cash flow today and significant wealth tomorrow. But success starts with preparation—knowing how rentals make money, who is best suited to invest, what to look for, and where to start.

How Rental Properties Build Wealth

Great rental properties create wealth through three primary channels that work together to compound returns over time:

Cash Flow represents net monthly income after expenses. The formula: Total rent minus all expenses (mortgage, taxes, insurance, maintenance, management fees, etc.). A duplex renting for $3,300 monthly with $2,700 in expenses generates $600 monthly positive cash flow—money for profit or reinvestment.
Appreciation refers to property value increases over time. According to Canadian MoneySaver, nationally, the housing market has averaged 6% yearly appreciation since 1975.4 A 6% annual appreciation on a $400,000 house adds $24,000+ to your equity annually from market gains alone.
Equity growth also occurs as mortgage payments reduce loan principal. Ideally, tenant rent effectively covers these payments, so tenants are purchasing the property for you incrementally. If $500 monthly goes toward principal, you gain $6,000 in equity annually.

The total return combines all three elements. While individual components might not create overnight wealth, together they compound impressively for patient investors.

Who Should Invest in Rentals?

Rental property investing isn’t for everyone. The most successful investors tend to share a few traits:

Long-term wealth builders with financial stability and risk tolerance typically succeed. Investment properties require substantial down payments (minimum of 20% in Canada) plus cash reserves for maintenance and vacancies.2 You need stable finances with emergency funds before investing, as real estate is illiquid.
Detail-oriented, patient investors often find the greatest success navigating Canada's provincial regulations. Smart investors educate themselves about tax implications, landlord-tenant laws, and analyze numbers carefully.
Hands-on, resourceful owners who can handle basic maintenance, repairs, and tenant management themselves also have an advantage. These investors can save thousands each year on property management and service fees, boosting overall returns.

If you align with these traits, rental property investing can be a powerful tool for building lasting wealth.

Where to Begin Your Investment Journey

The first step is to contact an investment-savvy real estate broker, who can be an invaluable partner in finding and securing great properties by offering:

Access to MLS data and off-market deals that you can’t find on your own. I have extensive networks and can sometimes help you uncover properties before they are publicly listed.
Expert market knowledge to help you choose the right property. I know which neighbourhoods, property types, and home features are the most desirable to renters in our area.
Deal analysis assistance to maximize your returns. I can help you estimate cash flow, cap rates, and return on investment.
Ongoing network support that extends beyond closing. I maintain networks of reliable contractors, property managers, investor-friendly lenders, and insurance brokers.

With the right guidance from day one, you can move forward with confidence and start building a portfolio that works for you.

Your Rental Property Evaluation Checklist

Not all rental properties offer equal investment potential. Smart investors use systematic criteria to identify truly great opportunities:

Location & Market Analysis

Location determines everything—tenant quality, rental demand, and appreciation potential. Focus on areas with strong rental demand near employment centers, universities, or transit systems, ensuring steady tenant pools.

Research local vacancy rates carefully. High neighbourhood vacancy signals low demand, while low vacancy allows rent increases. Investigate safety and school quality—properties in low-crime areas with good schools attract stable, long-term tenants.5

Evaluate regional economic and immigration trends beyond immediate neighbourhoods. Growing employment opportunities drive housing demand. Research major employers that are expanding but avoid areas dependent on single industries. Check government infrastructure plans—new transit or development projects can boost values, but excessive new development might increase competition.5

Financial Analysis

Perform detailed cash flow analysis for every potential property. Calculate expected rent and subtract all expenses: mortgage payments, property taxes, insurance, fees, management costs, maintenance reserves (budget 10% of rent), and vacancy allowances.

Run sensitivity analysis: What happens if rents drop 5% or expenses increase 10%? Great properties remain profitable under various conditions.

Property Condition & Carrying Costs

Physical condition directly impacts returns. Older homes with outdated systems may require frequent, costly repairs. Schedule professional inspections focusing on major components: roof, foundation, electrical, plumbing, and HVAC systems.

Consider property layout—standard configurations like 3-bedroom/2-bathroom homes appeal to broader tenant bases than unusual layouts. Factor in capital expenditure timelines for major items needing replacement every 15-30 years.

Research property tax rates carefully, as they vary significantly by province and municipality, with some jurisdictions offering different rates for investment versus principal residence. Get insurance quotes before purchasing, especially for properties in disaster-prone areas requiring expensive additional coverage.

Property Type Selection

For most investors, single-family homes or condominiums offer the best starting point. Single-family homes typically attract longer-term tenants who treat the property as their home, resulting in steadier income.5

Unless you’re planning to use your property as a short-term or vacation rental, avoid highly specialized properties like luxury mansions or tiny studios targeting niche markets with higher vacancy risks. “Bread and butter” 2-4 bedroom homes in middle-class neighbourhoods form successful long-term rental portfolio foundations.5

Due Diligence Requirements

Verify all numbers independently. Research comparable rents for similar nearby properties, ensuring realistic projections.6 Check sales comparables to avoid overpaying. Schedule professional inspections and read reports thoroughly—unexpected problems can transform great deals into money pits.

Understand local landlord-tenant laws covering eviction processes and deposit rules. Consult professionals, as needed, for valuable guidance.

If this checklist seems overwhelming, don’t worry! I can help with each of these items. By following this checklist, we’ll separate high-performing rental opportunities from costly mistakes and position you for long-term success.

BOTTOM LINE

Great rental properties aren't found by chance—they're identified through systematic evaluation. Properties that build lasting wealth combine healthy cash flow, solid locations, sound physical condition, and strong growth potential.

Success requires patience, proper analysis, and the right team. While markets fluctuate, well-chosen properties consistently reward investors through income, appreciation, and equity growth, creating real wealth over time.

Ready to start building wealth through rental property investment? The fundamentals outlined provide your foundation, but local market expertise and deal analysis make the difference between mediocre and exceptional investments. Let's discuss how these principles apply to current opportunities in your target market.

Sources

Real Estate Magazine -
https://realestatemagazine.ca/survey-shows-87-of-canadians-choose-real-estate-investing-over-stocks-for-extra-income-in-2024/
RBC -
https://www.rbcroyalbank.com/mortgages/what-to-know-before-buying-a-rental-property.html
Government of Canada -
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/completing-form-t776-statement-real-estate-rentals/rental-expenses-you-deduct.html
Canadian MoneySaver -
https://www.canadianmoneysaver.ca/articles/3842
Investopedia -
https://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp
Investopedia - https://www.investopedia.com/articles/mortgages-real-estate/11/how-to-value-real-estate-rental.asp

10 Hidden Home Maintenance Tasks That Could Save You Thousands

Mon, 18 Aug 2025 14:11:12 GMT

As a homeowner, you’re likely diligent about the basics—mowing the lawn, touching up paint, and cleaning regularly. But what about the critical home maintenance tasks you don’t see every day?

Research shows that home maintenance frequently takes a backseat, even with the best intentions. In fact, a recent survey found that 60% of homeowners have postponed necessary maintenance or repairs, while 40% admit to paying for a major home repair that could have been avoided with better upkeep.1

Still, it’s not just about avoiding costly emergencies—it’s also about maximizing the return on your biggest investment. According to research by Thumbtack, homeowners who do put in the extra care are rewarded: Well-maintained homes sell for an average of 10% more.2

Let’s explore 10 often overlooked home maintenance tasks and how they can save you thousands in long-term costs.

1. Gutter Cleaning: Your First Line of Protection

Clogged gutters can cause water to overflow and seep into your home’s foundation, attic, or siding. Left unchecked, this can lead to foundation damage, rot, and even flooding.

The real cost of neglect: While professional gutter cleaning averages $212, it’s far less than the potential repair bills.3 The average cost to repair a flooded basement, for example, is a whopping $43,000 according to the Government of Canada.4

Your action plan:

Clean gutters at least twice annually—in spring and fall.
Use a gutter scoop or hose to remove debris.
Consider investing in gutter guards to reduce future clogs.

This small task prevents major structural damage and prolongs the life of your home’s exterior.

2. HVAC Filter Replacement: Small Task, Major Impact

A dirty HVAC filter reduces airflow, causes your system to work harder, and increases energy use. It can also lead to health concerns from trapped contaminants circulating in your home’s air.

The hidden costs: Natural Resources Canada confirms that routine maintenance, including replacing clogged filters, can reduce energy consumption by 10-20%.5 Neglected maintenance, on the other hand, can lead to higher utility bills and costly repairs.

Your maintenance routine:

Replace filters every 1–3 months, depending on filter type, usage, and the number of pets in your home.
Opt for MERV 8–13 filters for efficiency and air quality balance.
Schedule annual professional servicing (around $100-$250) to catch hidden issues early.6

This simple task protects both your monthly utility bills and your HVAC system's lifespan.

3. Water Heater Flushing: Preventing Sediment Buildup

Over time, sediment accumulates in your water heater tank, reducing efficiency and shortening the unit's lifespan. Left unchecked, this buildup can cause leaks or complete tank failure.

The financial reality: Regular flushing prevents early replacement and may be required to maintain your water heater’s warranty. You can do it yourself or hire a professional.7

Your annual process:

Turn off power and water supply to the unit
Attach a hose to the drain valve and empty the tank completely
Check your anode rod; it may need to be replaced every 3–5 years.

This simple routine extends your water heater’s life and preserves energy efficiency.

4. Dryer Vent Cleaning: A Critical Safety Task

Lint-clogged dryer vents aren't just an efficiency problem—they're a common cause of house fires in Canada.8 They also force your dryer to work harder and longer for each load.

The cost factor: Professional cleaning averages $100-$200 nationally, while fire-related damage can run into the tens of thousands.9

Your safety protocol:

Clean dryer vents every six months using a brush kit, or call in a professional.
Replace plastic ducts with rigid metal ones, which resist lint clogs.
Monitor drying times—longer than usual may signal a blockage.

This potentially life-saving task improves both safety and appliance efficiency.

5. Refrigerator Coil Cleaning: The 35% Energy Drain

Your refrigerator’s coils help expel heat. When coated in dust, they force the compressor to work harder, increasing energy bills and shortening appliance lifespan.

The efficiency impact: Dirty coils can increase energy use by up to 35% and, over time, can lead to costly repairs or replacement.10

Your simple solution:

Check your manufacturer’s guidelines; many recommend cleaning every six months.
Locate coils behind or at the bottom of the unit and use a vacuum or coil brush to remove dust and debris.
Keep condenser fan areas unobstructed.

This $0 DIY task can trim your electricity bill—and prevent early breakdown.

6. Garage Door Lubrication: Prevents Costly Repairs

A squeaky garage door means friction—and friction leads to wear on moving parts, costly spring damage, and failed openers.

The mechanical reality: A new garage door can cost around $2000, while a can of lubricant only costs about $10.11

Your annual routine:

Check the manufacturer’s guidelines to choose the right lubricant for your garage door.
Prioritize safety: Ensure the door is fully closed and cut the electricity.
Check for any signs of damage before proceeding, and call in a pro if needed.12

This simple task eliminates squeaks and avoids expensive repairs.

7. Sump Pump Testing: Your Basement's Guardian

Your sump pump quietly protects your basement from water damage—but it needs testing to ensure it works when you need it most.

The flood prevention factor: Sump pump failure during a storm can result in tens of thousands of dollars in cleanup costs.4

Your quarterly test:

Pour water into the pit to ensure the float triggers the pump.
Confirm pump and drainage are working correctly.
Clean the inlet screen once per year to avoid clogs.

This 10-minute check gives peace of mind and avoids major flood damage.

8. Chimney Cleaning: Preventing House Fires

Creosote buildup in chimneys is a common cause of Canadian house fires in the fall and spring.13

The fire prevention imperative: Professional cleaning can cost a few hundred dollars, but it’s crucial for anyone burning wood. The cost of ignoring this task includes chimney repairs and fire damage that can devastate homes.14

Your annual safety check:

Hire professionals for a thorough inspection and sweeping.
Use only seasoned wood to reduce creosote buildup.
Install a chimney cap to block debris and critters.

Professional chimney maintenance is a non-negotiable safety investment.

9. Roof Inspection: Protecting Your Shelter

Missing shingles, damaged flashing, or small leaks can quickly escalate into structural damage and mould problems if left unaddressed. Canada's harsh weather conditions make regular roof inspections particularly crucial.

The structural stakes: Roof inspections can cost a few hundred dollars, while full replacements typically cost $4-$7 per square foot for an asphalt shingle roof.15

Your inspection process:

Twice per year, perform a DIY inspection for missing shingles, cracked flashing, and sagging areas.
Check your attic for stains or leaks after rainfall.
Consider a professional inspection every 1-2 years, depending on your risk factors.16

Early intervention prevents thousands in repairs and helps retain resale value.

10. Water Pressure Monitoring: Protecting Your Plumbing

Many homeowners never check their home’s water pressure, but levels above 80 psi can damage pipes, appliances, and fixtures throughout your home, leading to premature failures and leaks.

The pressure problem: Water pressure that’s too high can damage your pipes and lead to expensive repairs or flooding. Pressure that’s too low can impact the performance of your faucets and appliances.17

Your annual check:

Use a water pressure gauge connected to an outdoor faucet.
Ideal pressure: 40-60 psi. Install a regulator if it runs high.
Monitor for sudden changes that could signal a plumbing issue.17

This small check helps you avoid hidden damage to your entire plumbing system.

Creating Your Home Maintenance Schedule

Rather than reacting to emergencies, create a proactive plan. Here's a maintenance chart that puts it all in one place:

Task	Frequency	Key Tools/Materials
Gutter cleaning	Every 6 months	Gutter scoop, hose
HVAC filter change	1–3 months	MERV 8–13 filters
Water heater flush	Annual	Hose, wrench
Dryer vent cleaning	Every 6 months	Brush kit
Refrigerator coil clean	Every 6 months	Vacuum, coil brush
Garage door lubrication	Annual	Lubricant
Sump pump testing	Quarterly	Bucket of water
Chimney cleaning	Annual	Professional tools
Roof inspection	Every 6 months (DIY); 1-2 years (professional)	Binoculars, ladder
Water pressure test	Annual	Water pressure gauge

BOTTOM LINE

Proactive home maintenance isn’t optional—it’s essential. The ten tasks above are often overlooked, but they’re critical to preserving your home’s safety, energy efficiency, and resale value.

Ultimately, your home is an investment. Consistent upkeep helps you avoid emergencies, save on utilities, and protect your equity for the long term.

Ready to create a tailored maintenance plan for your home? I can connect you with trusted local service pros and show you how proactive upkeep contributes to your home's market value. Let’s talk about keeping your home in peak condition—and protecting one of your most valuable investments.

Sources

Finance Buzz -
https://financebuzz.com/homeowner-maintenance-repairs-survey
Thumbtack -
https://blog.thumbtack.com/investing-in-home-maintenance-pays-off-yet-the-majority-of-homeowners-are-under-budgeting-84426995b6c5
Bark -
https://www.bark.com/en/ca/gutter-cleaning-repairs/gutter-cleaning-cost/
Government of Canada -
https://www.canada.ca/en/campaign/flood-ready/know-the-risks/cost-floods.html
Natural Resources Canada -
https://natural-resources.canada.ca/energy-efficiency/energy-star/energy-efficiency-reference-guide-compressed-air#
FurnacePrices.ca -
https://www.furnaceprices.ca/posts/annual-hvac-maintenance/
Home Depot -
https://www.homedepot.com/c/ah/how-to-flush-a-water-heater/9ba683603be9fa5395fab901d7efffcd
CBC -
https://www.cbc.ca/news/canada/nova-scotia/fire-hazard-clothes-dryer-1.4400429
1CleanAir -
https://1cleanair.ca/duct-cleaning/dryer-vent-cleaning/cost-canada/
U.S. Department of Energy -
https://www.energy.gov/energysaver/purchasing-and-maintaining-refrigerators-and-freezers
NerdWallet -
https://www.nerdwallet.com/ca/mortgages/garage-door-replacement-cost-in-canada
Lowes -
https://www.lowes.com/n/how-to/how-to-lubricate-garage-door
Firefighting in Canada -
https://www.firefightingincanada.com/trainers-corner-tactics-and-tips-for-chimney-fires/
Government of Canada -
https://publications.gc.ca/site/archivee-archived.html?url=https://publications.gc.ca/collections/Collection/M144-93-1-2005E.pdf
NerdWallet -
https://www.nerdwallet.com/ca/mortgages/roof-replacement-cost-in-canada
Angi -
https://www.angi.com/articles/how-much-does-roof-inspection-cost.htm
The Spruce -
https://www.thespruce.com/testing-water-pressure-in-your-home-2718692

Real Estate Market Update: What Mid-Year Indicators Mean for Your Next Move

Fri, 04 Jul 2025 14:01:04 GMT

July 1st isn’t just Canada Day—it also serves as a pivotal checkpoint for assessing how 2025 has unfolded so far and what might be coming in the months ahead.

Canada’s real estate market remains shaped by economic uncertainty, fluctuating interest rates, and global trade tensions. However, a recent rise in existing home sales suggests a more positive shift may be underway.1

Whether you’re considering buying a home, selling, or simply evaluating your next steps, understanding today’s market is essential. In this comprehensive market update, I examine four key factors influencing today's housing market and provide actionable strategies for navigating these evolving conditions.

MARKET REMAINS SUBDUED, BUT THERE ARE EARLY SIGNS OF RECOVERY

After declining in the first part of the year—primarily due to market uncertainty and an ongoing trade dispute with the U.S.—Canadian home sales rose 3.6% between April and May, marking the first monthly gain in national activity since November 2024, according to the Canadian Real Estate Association (CREA).2,3 This subtle but significant uptick was largely driven by increased sales in Toronto, Calgary, and Ottawa.3

“May 2025 not only saw home sales move higher at the national level for the first time in more than six months, but prices at the national level also stopped falling,” said CREA Senior Economist Shaun Cathcart. “It’s only one month of data … but there is a sense that maybe the expected turnaround in housing activity this year was just delayed for a few months by the initial tariff chaos and uncertainty.”3

What it means for you: While it's too early to declare a full rebound, this shift could signal renewed momentum heading into the summer and fall. Buyers may want to act before prices begin to climb again, while sellers should be prepared for a potentially more competitive market in the months ahead. I can help you assess the right time to make a move.

FIXED MORTGAGE RATES OFFER SOME STABILITY

Heading into the second half of 2025, mortgage rates remain top-of-mind for many Canadians. A growing number are opting for fixed-rate mortgages over variable options, not because they’re dramatically cheaper—but because they offer predictability during an uncertain time.4

“We all hoped that rates would be a lot lower by now, but with Trump in office there’s just too much uncertainty,” notes Victor Tran, a mortgage and real estate expert with RATESDOTCA. “People don’t want to deal with that, and going for a fixed rate could be a safer bet.”4

Economists’ predictions are mixed as to whether the Bank of Canada will cut its overnight rate again before the end of the year. Persistent inflation, along with trade-related economic risks, may continue to limit the scope and speed of any reductions.5

What it means for you: For buyers or homeowners considering refinancing, now is a critical time to speak with a mortgage advisor. Understanding your borrowing power and options can help you act with confidence. I’d be happy to refer you to a trusted mortgage professional in my network.

A RETURN TO BALANCED INVENTORY IN SOME AREAS

After several years of tight inventory conditions, Canada is slowly seeing a more robust supply of homes hit the market—though the story varies by region. There were 201,880 properties listed for sale in May, a 13.2% year-over-year increase, though still about 5% below the long-term average.3

With a national inventory of 4.9 months, Canada’s real estate market is currently balanced. This means there’s no strong tilt toward either buyers or sellers nationally, but significant regional differences remain.3

“If you’re looking to buy or sell a property heading into the second half 2025, you’ll need to understand how national trends are or are not playing out locally, so contact a REALTOR® in your area today,” advises CREA Chair Valérie Paquin.3

What it means for you: Whether you’re house hunting or planning to list your home, local market conditions matter more than ever. Having a knowledgeable agent by your side can help you understand supply and demand in your area—and strategize accordingly.

For buyers, I can help identify hidden gems and guide strong offers. For sellers, I can develop marketing strategies to move your home efficiently, even in a competitive landscape.

HOME PRICES PAUSE—BUT NOT ACROSS THE BOARD

Home prices nationally stabilized in May, with the MLS® Home Price Index down just 0.2% month-over-month—a notable slowdown after three consecutive months of 1% declines. However, prices are still down 3.5% from May 2024, and the national average sale price of $691,299 reflects a 1.8% year-over-year dip.3

However, the story differs among regions. According to the Royal Bank of Canada, high-priced markets like Southern Ontario and parts of British Columbia remain especially soft.6

Elsewhere in the country, price trends appear more stable. Prairie cities such as Edmonton, Saskatoon, and Regina, along with markets in Quebec and Atlantic Canada like Quebec City and St. John’s, have held up relatively well. While not entirely insulated from broader economic uncertainty, these areas have thus far avoided the steeper price corrections seen in the most expensive regions.6

What it means for you: If you're a buyer with flexibility around property type and location, this shifting market could present valuable opportunities—particularly in areas seeing price corrections.

For sellers, understanding local supply and demand is essential, and a tailored strategy may be needed to stand out. I’m here to help you make sense of the data and navigate these conditions with confidence.

LET’S MAKE YOUR NEXT MOVE A SMART ONE

While national housing reports can give you a “big picture” outlook, much of real estate is local. And as a local market expert, I know what's likely to impact sales and drive home values in your particular neighbourhood.

For buyers, this could be the most favourable environment in years. For sellers, the right strategy, price, and timing are more important than ever. And for homeowners, understanding your property’s value in a shifting market can help with decisions about refinancing, renovating, or investing.

The best decision is an informed one, and that’s where a trusted real estate professional comes in. I have the local insight, negotiation skills, and market knowledge to help you succeed—whether you're buying your first home, selling your third, or simply weighing your next move. Reach out today to start a conversation about your goals and how the current market can work for you.

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

RBC Economics -
https://www.rbc.com/en/thought-leadership/economics/canadianhousing/monthly-housing-market-update/canadas-housing-market-finds-a-footing-in-may/
Global News -
https://globalnews.ca/news/11181839/canada-home-sales-april/
Canadian Real Estate Association -
https://stats.crea.ca/en-CA/
Canadian Mortgage Professional -
https://www.mpamag.com/ca/mortgage-industry/industry-trends/dont-expect-canadian-mortgage-rates-to-see-a-big-decline-anytime-soon/537204
Yahoo! Finance -
https://ca.finance.yahoo.com/news/what-will-the-bank-of-canada-do-next-economists-forecasts-are-all-over-the-place-155451996.html
Royal Bank of Canada -
https://www.rbc.com/en/thought-leadership/economics/canadianhousing/special-housing-reports/early-signs-of-renewed-housing-market-confidence-emerge-in-canada/

Ready to Buy or Sell a Home? Here Are 5 Key Factors in Choosing the Right Agent

Mon, 16 Jun 2025 20:44:21 GMT

Navigating the real estate market without guidance is like starting an expedition without a map. Whether you're selling your cherished family home or searching for your dream property, having the right real estate agent by your side can make all the difference.

According to a 2024 report from the U.S.-based National Association of Realtors, agent-represented homes sold for nearly 14.5% more than those sold by owners alone.1

But home sellers aren’t the only ones who can benefit. A study by the Consumer Federation of America found that homebuyers can save significantly by working with an agent dedicated to their interests.2

While it’s easy to see the advantages of working with a real estate professional, it can be challenging to find the right representative whose expertise, service, and terms align with your specific needs. This comprehensive guide presents five factors to consider when choosing a real estate agent who can deliver results while streamlining the process.

Buyer’s Agent vs. Listing Agent: What’s the Difference?

A buyer’s agent represents the interests of the homebuyer. Their role includes helping you find properties that meet your criteria, coordinating viewings, negotiating offers, and guiding you through inspections and closing. They are your advocate throughout the purchasing process.

A listing agent, on the other hand, represents the seller. They are responsible for pricing the home competitively, marketing the property, managing showings, and negotiating with buyers on your behalf. Their job is to sell your home with the best possible terms.

In most cases, homeowners who are selling their current property and buying a new one can work with the same agent for both transactions. This offers convenience and consistency, as your agent will have a full understanding of your timeline, financial goals, and property preferences. However, if you’re relocating to a different city or province, you may need to work with two separate agents—one to list and sell your current home and another with local expertise in your new area to assist with your purchase.

1. Credentials & Reputation

A well-qualified agent brings more than just enthusiasm; they bring training, experience, and a proven track record.

First, ensure your agent holds a valid licence through your provincial real estate council or board. Canadian real estate agents must complete provincially mandated education, pass licensing exams, and adhere to strict ethical standards, especially if they are members of the Canadian Real Estate Association or a local real estate board.3

Next, inquire about the agent’s continuing education. Real estate designations and certifications indicate additional training and a commitment to excellence in specific areas of real estate.

When it comes to reputation, don’t hesitate to ask for references and check online reviews. Past clients can provide insight into the agent’s communication style, negotiation skills, and ability to manage complex transactions. Prioritize any feedback you receive from trusted family and friends.

Additionally, take time to visit the agent’s website and social media channels to see if they regularly share useful and relevant real estate information, such as market updates, home buying and selling tips, or neighbourhood insights. A well-maintained online presence not only reflects their commitment to staying engaged in the industry but also shows they are a resource for their clients before, during, and after a transaction.

2. Local Market Knowledge

One of the most valuable assets a real estate agent can offer is in-depth knowledge of the local market. Whether you're buying or selling, working with someone who understands the neighbourhoods, pricing trends, school districts, amenities, and zoning regulations in your target area can give you a significant edge.

A local market expert can help sellers price their home competitively, attract the right buyers, and highlight community features that add value. For buyers, a locally knowledgeable agent can identify hidden gems, alert you to upcoming developments that may impact property values, and advise on which areas offer the best long-term investment potential.

They also tend to have established relationships with local lenders, inspectors, contractors, and other professionals, which can make the entire process smoother and more efficient. When choosing your agent, ask how long they’ve worked in the area and what insights they can offer about your specific neighbourhood or region.

3. Service & Value Proposition

Not all real estate agents offer the same level of service, so it’s important to understand what sets one apart from another. Take time to evaluate an agent’s unique value proposition—what they promise to deliver that others may not. This can help you choose someone whose approach and strengths align with your specific needs.

If you're selling a home, ask for a written copy of their marketing plan. What steps will they take to reach qualified buyers? Find out how they determine pricing and how actively they will communicate with you throughout the transaction.

For buyers, consider how the agent searches for properties, how quickly they can schedule showings, and whether they can help you compete in a competitive market. Do they offer guidance on financing, local insight on neighbourhoods, or access to off-market listings?

An effective agent should be able to clearly articulate the value they bring, backed by experience, data, and a commitment to personalized service. Ask for a breakdown of their services upfront to ensure you understand what to expect from the partnership.

4. Terms of Representation

Before committing to an agent, it’s essential to understand the terms of your working relationship. Clarify who will be your primary contact and how and when they will communicate with you throughout the process. The best real estate agents establish clear communication protocols and consistently meet or exceed expectations throughout the relationship.

Most agents will ask you to sign a contract that outlines their duties, your obligations, and the scope of services provided. Take time to review the terms carefully and ask questions.

For sellers, the agreement may include the listing price, compensation terms, and the duration of the contract.4 Buyers typically sign a representation agreement, which confirms the agent is working in their best interest during the home search and purchase process.5

Always thoroughly review any buyer or seller agency agreement for termination clauses and commission obligations before signing. Trustworthy agents are transparent about their compensation structure and willing to explain how it aligns with your goals.

5. Ongoing Support

Exceptional agents continue to provide support long after closing. A top-tier real estate professional offers ongoing support, ensuring you have a trusted resource long after the transaction is complete.

Some agents are willing to provide post-purchase assistance, such as recommending reliable contractors, helping you understand your property tax assessments, or offering periodic home value analyses. For sellers, they may provide advice on reinvestment options or an agent referral if you’re planning to move to a new area.

This continued relationship can be especially valuable if you’re new to the area or plan to buy or sell again in the future. Ask potential agents how they stay in touch with past clients and whether they offer any resources or services to support you after closing. An agent who sees the relationship as long-term is one who genuinely values your trust and satisfaction.

READY TO MAKE YOUR MOVE? LET’S TALK.

Choosing a real estate agent is one of the most important decisions you'll make when buying or selling a home. The right partner can make the process easier to navigate and more rewarding, both financially and emotionally.

If you're looking for an experienced, locally knowledgeable agent who prioritizes clear communication, personalized service, and proven results, I’d love the opportunity to earn your trust.

Schedule a free, no-obligation consultation today to discuss your goals, ask questions, and find out how I can help you navigate your next move with confidence. Let’s turn your real estate goals into a successful reality—together.

Sources:

National Association of Realtors -
https://www.nar.realtor/magazine/real-estate-news/fsbos-reach-all-time-low-more-sellers-rely-on-agents
Forbes -
https://www.forbes.com/sites/tedknutson/2019/01/14/home-buyer-could-lose-big-by-not-working-with-agent-serving-them-solely-warns-consumer-federation/
Canadian Real Estate Association -
https://www.crea.ca/who-we-are/the-realtor-difference/become-a-realtor/
Canadian Real Estate Magazine -
https://www.canadianrealestatemagazine.ca/expert-advice/listing-agreement-tips/
Canadian Real Estate Magazine -
https://www.canadianrealestatemagazine.ca/expert-advice/what-is-the-buyer-representation-agreement-bra/

Selling Your Home In 2025? Here's What Buyers Want (And How To Deliver)

Thu, 08 May 2025 14:13:20 GMT

Thinking about listing your home in 2025? If so, you're smart to start planning ahead. With housing inventory rising in many market segments, today’s sellers need more than just a “for sale” sign to stand out.1

The good news? You can still make a strong impression and command top dollar—if you know what today’s buyers are really looking for.

I’ve outlined five of the top homebuyer priorities in 2025, along with a clear action plan to help you position your property for success. Whether you're weeks or months away from listing, these insights will help you attract serious offers and maximize your return.

BUYER PRIORITY #1: Move-In-Ready Condition

Buyers want homes that are ready to enjoy from day one. A recent survey found that 64% of Canadians would prefer to buy a renovated property.2 Homes that feel fresh and well-maintained are far more likely to attract competitive offers.

Seller Action Plan:

Refresh your interior.
This might include painting rooms in neutral, contemporary colours and swapping outdated fixtures for more modern alternatives. We may also recommend that you take down heavy drapery or dated blinds to brighten your space and clean or replace flooring to create a clean and cohesive look.
Fix anything that’s broken.
If something isn’t working quite right, repair it now. Provide maintenance records, if you have them, and consider a pre-listing inspection to identify potential issues early—helping avoid delays or negotiations later.3 We can advise you on the best course of action given your circumstances and your home’s condition.
Strategically enhance your kitchen.
A modern kitchen is a major selling point for many buyers. According to the Canadian Home Builders’ Association, buyers rank a kitchen island and hardwood/wood-look kitchen flooring among their top 10 most-desired features.4 We can help you decide if an investment in your kitchen is worthwhile.

My team can help you identify and prioritize strategic improvements that will maximize your home's appeal and market value. Contact us for a free evaluation!

BUYER PRIORITY #2: Flexible Closing Timelines

Many of today’s buyers are juggling complicated schedules and circumstances, especially if they need to time the sale of their current home with the purchase of their new one. If you are able to offer a flexible closing timeline, it can deliver an advantage.

Seller Action Plan:

Define your ideal timeline and explore your level of flexibility.
We can discuss your goals and expectations for a closing timeline and consider how much flexibility you might be able to offer buyers. This will depend on your specific circumstances, but additional leeway can be helpful.
Make a plan to get out of your home quickly, if needed.
Some buyers need to move out of their current home quickly or relocate by a certain date to start school or a new job. Therefore, they may require an accelerated closing timeline. These buyers will be particularly interested in finding sellers who are willing and able to accommodate a fast closing.
Leverage your real estate agent’s negotiation expertise.
Closing dates can be tricky to navigate. As experienced professionals, we can help you work through the details to arrive at a mutually beneficial arrangement for you and the buyer.

Trying to figure out a plan for your move? Schedule a free consultation to discuss your specific selling timeline and explore flexible closing options.

BUYER PRIORITY #3: Curb Appeal

A well-maintained and visually appealing exterior, often referred to as “curb appeal,” is essential for generating interest and bringing buyers in the door. According to a 2020 study by the Journal of Real Estate Finance, curb appeal can account for as much as 7% of a home’s sale price.5

Seller Action Plan:

Maintain an immaculate exterior.
Ensure your landscaping is well maintained while it’s on the market, with your lawn mowed, hedges trimmed, and flower beds weed-free. If this isn’t your strong suit, invest in a professional service. When it comes to your home itself, a welcoming entrance with a clean, freshly painted front door and updated hardware can make a big difference.
Address visible exterior elements.
Inspect and touch up any peeling or faded paint on the siding or trim, and repair or replace any damaged siding or roofing. Check that your walkways and driveway are in good condition and that your outdoor lighting is sufficient and in working order.
Keep things clean.
Thoroughly power wash the siding, walkways, driveway, and any other exterior surfaces to remove dirt, grime, and mildew. Clean all windows and screens, both inside and out, to maximize natural light and improve the overall appearance of your home.

I’m happy to offer specific recommendations to enhance your property's curb appeal and to refer you to landscapers, painters, and other professionals for help.

BUYER PRIORITY #4: Functional Spaces

Today's buyers often prioritize properties that offer flexibility and function to meet their evolving needs, ranging from entertaining to storage space to convenient parking.

Seller Action Plan:

Showcase outdoor spaces.
According to a recent survey, 81% of Canadians consider a backyard to be either “important” or “very important” when choosing a home.2 Be sure to highlight outdoor spaces in your listing and prep and stage them to look their best.
Highlight finished basements and storage solutions.
Functional living isn’t just about primary spaces—it’s also about smart storage. Showcase your finished basement, walk-in closets, and other storage solutions that help keep the home organized and clutter-free.2,4 This gives buyers a sense of ease and livability.
Keep parking in mind.
Convenient parking is a top priority for many buyers. A garage is on the list of “must-haves” for many single-family home buyers, while parking garages and access to visitor parking rank high amongst condo purchasers.2,4

My team can help you stage your home to attract more potential buyers. Reach out for our recommendations!

BUYER PRIORITY #5: Energy Efficiency & Sustainability

With rising utility costs and a focus on environmental responsibility and clean living, buyers are looking for homes with eco-friendly features.4 A few small changes can help you make the most of that desire and draw in conscious buyers.

Seller Action Plan:

Incorporate and highlight sustainable materials.
Buyers are increasingly drawn to homes that feature eco-conscious design choices. If you’ve used sustainable materials—like bamboo flooring, recycled glass countertops, low-VOC paints, or reclaimed wood accents—make sure to highlight these details. They not only enhance your home’s aesthetic but also signal a thoughtful, environmentally responsible approach to design.
Install energy-efficient features.
While it isn’t always cost-effective to add these features solely to sell your home, if you plan on making any upgrades to windows, systems, or appliances, keep energy efficiency in mind. You may also want to consider upgrades like a smart thermostat that can both help cut utility bills and show potential buyers that your home is loaded with the latest technology.
Take steps to reduce energy loss throughout the home.
Simple upgrades like sealing gaps around doors and windows, adding weather stripping, or insulating the attic can significantly improve a home’s energy efficiency. These improvements may seem small, but they can lower utility bills and demonstrate to buyers that the home has been well maintained with long-term savings in mind.

I can help you identify the most impactful energy-efficient upgrades and highlight your home’s sustainable features to attract today’s eco-conscious buyers.

Partnering for Success: Your Strategic Advantage in Today's Market

Successfully selling your home in today’s competitive and ever-evolving market requires more than luck—it demands insight, preparation, and expert strategy. By aligning your listing with the priorities of today’s buyers, you’ll position your property to stand out and sell faster, for top dollar.

My team is here to guide you every step of the way. From personalized recommendations and trusted vendor referrals to strategic pricing and marketing, I’m committed to helping you achieve a smooth and profitable sale.

Ready to take the next step? Contact me today for a complimentary home value assessment and customized sales plan designed to make your property shine. Let’s work together to turn your real estate goals into reality!

Sources:

Better Dwelling -
https://betterdwelling.com/canadian-real-estate-prices-rise-sales-make-the-sharpest-drop-in-years/
Real Estate Magazine -
https://realestatemagazine.ca/what-canadians-really-want-in-their-homes-in-2025-according-to-a-new-survey/
Global News -
https://globalnews.ca/news/10502859/home-inspections-cost-condition-housing-market/
Canadian Home Builders’ Association -
https://www.chba.ca/home-buyer-preferences/
Spruce -
https://www.sprucemagazine.ca/the-real-deal-on-curb-appeal/

5 ROADBLOCKS TO AFFORDABLE HOMEOWNERSHIP

Tue, 15 Apr 2025 21:19:11 GMT

(AND WAYS TO MOVE PAST THEM)

Dreaming of a new home but feeling priced out? You’re not alone! A 2024 survey by Royal LePage found that 46% of Gen-Z and millennial Canadians who don't already own a home have doubts as to whether they’ll ever be able to afford one.1

According to data from Canada Mortgage and Housing Corporation (CMHC) and Equifax, average monthly payments for new mortgage loans have risen 47% since the second quarter of 2020.2

Nevertheless, homeownership remains a significant value for Canadians, with 84% of 18 to 34-year-olds agreeing that buying a home is a worthwhile investment.1 And if you’re among that number, there are plenty of ways to make your homeownership dreams a reality.

In this guide, we’ll explore five common roadblocks to affordable homeownership and actionable solutions to help you overcome them. Let’s break down those barriers so you can finally get the home of your dreams!

ROADBLOCK #1: I Don't Have Enough Saved For A Down Payment

Many prospective buyers believe they need a 20% down payment to buy a home. But in reality, there are ways to purchase a home in Canada with as little as 5% down.3 For buyers who qualify, there are a number of programs that can help make a home purchase more accessible.

Government-Backed Mortgage Insurance
CMHC mortgage insurance is a great option for buyers who are short on cash. This insurance allows for down payments as low as 5% for homes that cost $500,000 or less. If the home costs between $500,000 and $1.5 million, you’ll need a minimum of 5% down on the first $500,000 and 10% on the remainder.3 This can make homeownership more affordable for those who haven't saved up enough for a large down payment.

Utilize a Tax-Free First Home Savings Account (FHSA)
If you open an FHSA, you can reduce your taxable income while you save for a down payment. This type of account, which is only available to first-time homebuyers, allows you to save up to $8,000 tax-free the first year, with contribution limits in subsequent years depending on your individual situation. You can save up to $40,000 in an FHSA in total.4

Maximize the Home Buyers' Plan (HBP)
The HBP is a government program that allows first-time homebuyers to withdraw up to $60,000 from their registered retirement savings plans (RRSPs) to buy or build a qualifying home.5 This can be a significant boost to your down payment savings. Be sure you understand the repayment rules and deadlines to avoid any tax penalties.

Explore Provincial Programs
In addition to the HBP, some areas offer programs to assist with down payments, ranging from cash assistance to interest-free loans.6 We can help you research the programs available to see if you qualify.

Family Gifts

Parental support has become increasingly common in Canada. A recent study found that 31% of first-time buyers receive financial help from a family member.7 If you're fortunate to have family support, be sure to follow the proper procedures to document the gift and ensure it complies with Canada Revenue Agency guidelines.

Existing Home Equity

If you already own a home, you may have more equity than you realize. This equity (or difference between your home’s current value and what you owe on your mortgage) could go toward a down payment on a new property. Wondering how much equity you have in your current home? Reach out for a free home value assessment.

ROADBLOCK #2: I Can't Afford the Monthly Payment

Worried about those monthly mortgage payments? High interest rates and rising costs can make mortgage payments feel daunting. But there are strategies to reduce your monthly burden.

Choose an Extended Amortization Period
The traditional 25-year amortization period for a mortgage isn’t your only option. First-time homebuyers and buyers of new builds qualify for 30-year mortgage amortization, which can help lower your monthly payments, though it also means you’ll be paying off your home longer and will pay more in interest.8

Co-Buy with Family or Friends

A growing number of homebuyers are returning to multigenerational living or are even buying a home with friends.9 This arrangement enables you to cut costs significantly while sharing both the time and financial responsibilities of homeownership. We can help you search for homes that are well suited for your group.

Purchase a Home with Income Potential

You can generate extra income to offset your mortgage payments by purchasing a duplex, renting out a room or an accessory dwelling unit (like a garage apartment), or even listing your property on Airbnb. We work with investors and can help you find a property to meet your goals.

ROADBLOCK #3: I Can't Qualify for a Mortgage

Qualifying for a mortgage can be a stressful process, especially if you have previously faced financial challenges. But you might be pleasantly surprised—there’s a lot you can do to improve your chances of success.

Boost Your Credit Score
Your credit score is foundational when it comes to getting a mortgage. A higher score typically means a lower interest rate and more options. Take steps to improve your credit by paying bills on time, reducing debt, and checking your credit report for errors.10 Even a small improvement in your score can make a big difference. Pro tip: Avoid opening or closing credit cards or taking out other loans (like car or personal loans) if you plan to start home shopping in the near future.

Lower Your Debt Service Ratios
Lenders want to be sure that you can afford your monthly mortgage payment alongside any other debts. That’s why they calculate both your gross debt service ratio, or GDS (the percentage of your income that will go towards the cost of a particular property), as well as your total debt service ratio, or TDS (the percentage of your income that goes to all loan payments, including mortgage, car loans, credit cards, etc.)11 Paying down other types of debt, like your car loan, will leave more space in your budget for a monthly mortgage payment.

Consider Getting a Co-Signer
Having a co-signer with a stronger credit history or more income can strengthen your application, but make sure you (and they) understand the risks and responsibilities involved.12

ROADBLOCK #4: I Can't Find a Home in My Price Range

Feeling frustrated by the lack of affordable homes on the market? Unfortunately, this is a common problem. But with a little flexibility and guidance, it’s possible to find a great property to fit most budgets.

Expand Your Home Search

You may need to search outside your target area. In many markets, home prices vary drastically within the span of miles. Being open to exploring alternative neighbourhoods or those farther from the city centre can open up surprising possibilities. As local market experts, we can help you discover hidden gems and up-and-coming neighbourhoods. Reach out for a complimentary consultation.

Revisit Your Must-Haves

Take a close look at your “must-have” list. Are there any features you can compromise on to expand your options and find a more affordable property? For example, do you really need two bathrooms, or could you settle for a single bathroom with space to add a second one in the future? These types of compromises can sometimes shave tens of thousands off your purchase price. We’re happy to offer our thoughts on the features that you’re likely to find within your budget.

Consider Fixer-Uppers

Looking to cut purchase costs? Don't shy away from homes that need a little TLC. Fixer-uppers usually come with a lower price tag, and you can personalize the renovations to your taste.13 Just be sure to factor in the cost of repairs and renovations when determining your budget—and to be realistic about your own home repair skills! If you’re interested in exploring fixer-upper opportunities, we can help you identify properties with potential and connect you with reliable contractors.

ROADBLOCK #5: I'm Overwhelmed by the Process

Buying a home can feel like navigating a maze. Between searching for properties, securing financing, negotiating contracts, and handling paperwork, the process can quickly become overwhelming. But you don’t have to do it alone! We can simplify every step, helping you stay organized, informed, and confident in your decisions.

Find the Right Home Faster

The sheer number of listings on the market can be daunting, and homes that meet your criteria may not always be easy to find. Our team can:

Save you time by narrowing down homes that fit your budget, needs, and lifestyle.
Get you access to off-market and pre-listing properties that aren’t widely advertised.
Provide insights on local market trends to help you make a competitive offer.

Navigate Financing & Paperwork With Ease

Real estate transactions involve complex contracts, legal documents, and lender requirements. One misstep could delay your purchase—or even cost you your dream home. We will:

Help you find down payment assistance that you may not be aware of.
Explain mortgage options and connect you with reputable lenders.
Ensure all purchase documents are accurate and deadlines are met.

Score the Best Deal

Many buyers worry about overpaying for a home or getting stuck with costly repairs, but we know how to:

Use expert negotiation tactics to secure the best possible price.
Identify hidden costs so you aren’t caught off guard at closing.
Negotiate repairs or seller concessions to save you money.

Streamline Inspections & Closing

The home inspection and closing process can bring last-minute surprises. We avoid these by:

Helping you interpret inspection reports and advising on necessary repairs.
Coordinating with your lender and other parties to keep everything on track.
Preparing you for closing day so you know exactly what to expect.

Benefit From Ongoing Support

Our relationship doesn’t end once you get the keys. We always go the extra mile to:

Recommend trusted contractors for renovations and repairs.
Help you make strategic upgrades through complimentary real estate consultations.
Provide market updates in case you want to refinance or sell later.

The bottom line? You don’t have to navigate this process alone. When you work with me, you’ll have a trusted partner to handle the complexities, answer your questions, and ensure everything goes smoothly from start to finish.

LET’S TURN ROADBLOCKS INTO STEPPING STONES TOWARD YOUR DREAM HOME

Buying a home may come with challenges, but none of them are impossible to overcome. With the right strategies, resources, and expert guidance, you can navigate these obstacles with ease.

Whether you're worried about saving for a down payment, qualifying for a mortgage, or finding the right home in your price range, there are solutions available to help you move forward. The key is to stay informed, explore all your options, and work with professionals who can guide you every step of the way.

I’m here to help you find the right home, secure the best financing, and negotiate the best deal—without the stress and uncertainty of doing it all yourself. Let’s turn your homeownership dreams into reality. Contact me today to get started!

SOURCES:

Home-Related Tax Deductions

Wed, 12 Mar 2025 15:01:33 GMT

Owning a home is a significant milestone — and one bonus is that it can come with significant tax savings! However, making the most of offerings like the Principal Residence Exemption can be tricky, and you may not be aware of all available tax-saving strategies. This guide rounds up the information you need about common Canadian home-related tax savings options and requirements for eligibility.

Buying a Home: Tax Benefits and Programs

The Canadian government offers several programs to make a home purchase more affordable. These include:

Home Buyers' Amount (HBA)

The HBA is a non-refundable tax credit for first-time home buyers and individuals with disabilities purchasing a home. You can claim up to $10,000 in expenses to get a federal tax credit of up to $1,500 (15% of $10,000). This credit can help offset some costs associated with buying a home, such as legal fees and land transfer taxes. To be eligible, you must be considered a first-time home buyer (generally, someone who hasn't owned a home in the past four years) or meet specific criteria related to disabilities. The home must be your primary residence. If you purchase a home with a spouse or partner, only one of you may claim the credit.

GST/HST New Housing Rebate

If you purchase a newly built home or substantially renovate your existing home, you might be eligible for a GST/HST new housing rebate. The maximum federal rebate is $6,300, and the amount you qualify for varies depending on the home’s purchase price or fair market value (for substantial renovations) and other factors. Eligibility criteria and rebate amounts vary by province/territory, and some provinces offer substantial additional rebates. For example, Ontario offers rebates of up to $24,000, and does not require the home’s value to be under $425,000 (as is the case for federal rebates).

Home Buyers' Plan (HBP)

The HBP isn't a tax deduction or credit, but it allows you to withdraw up to $60,000 (increased significantly in recent years) from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home without immediate tax penalties. If you are buying a home as a couple, you can each withdraw up to $60,000 for a total of $120,000. However, you must repay the withdrawn amount to your RRSP over a 15-year period.
Note that this program is only available to first-time homebuyers or homebuyers with disabilities, and you must already have a written agreement to buy or build a qualifying home at the time of withdrawal.

Homeownership and Taxes

Once you own your home, you may be eligible for specific deductions and credits based on your personal situation. These include:

Home Accessibility Expenses

If you make renovations to your home to improve accessibility for a resident family member who is eligible for the Disability Tax Credit or is over the age of 65, you may be able to claim the Home Accessibility Tax Credit. This is a non-refundable tax credit on eligible expenses up to $20,000. The maximum credit you can claim is 15% of eligible expenses, up to a maximum of $20,000. Qualifying expenses can include wheelchair ramps, stair lifts, grab bars, and other modifications that improve mobility or reduce the risk of injury.

Rental-Related Expenses

If you rent out a portion of your home, you must report the rental income on your tax return. However, you can also deduct eligible expenses related to the rental property. While you can’t generally deduct mortgage interest payments from your taxes in Canada for your primary residence, if you rent out part of your home, you can deduct a proportional part of your mortgage interest related to the rental portion. You can also deduct a proportionate amount of other eligible expenses, such as repairs, utilities, property taxes, and home insurance, again, only related to the rental portion. It's critical to keep accurate records of rental income and expenses.

Deductible expenses can include:

Mortgage Interest: Proportionate mortgage interest for the rented area
Property Taxes: Proportionate property taxes for the rented area
Home Insurance: Proportionate home insurance premiums for the rented area
Utilities: Proportionate costs for electricity, heating fuel, and water used by the tenant
Repairs: Cost of repairs to the rented area (e.g., fixing a leaky faucet, repairing a broken window)
Maintenance: Regular maintenance costs for the rented area (e.g., cleaning, snow removal)

Non-deductible expenses can include:

Mortgage Principal: Mortgage principal payments are not deductible
Personal Expenses: Expenses not directly related to the rental activity (e.g., personal use of utilities)
Capital Improvements: Expenses that improve or add value to the property (e.g., adding a new deck, renovating the kitchen)
Land Transfer Tax: Land transfer tax paid when you purchased the property
Depreciation (CCA):While you can claim Capital Cost Allowance (CCA) to deduct a portion of the cost of the building over time, it is not a direct deduction from rental income and and requires complex calculations

Home Office Expenses

If you work from home, you may deduct the proportion of eligible expenses that relate to your workspace, such as electricity, heating, maintenance, and repairs. Note that you can deduct repairs to your home office (and a portion of other eligible home expenses), but you cannot deduct improvements to your home office that increase the value of your property (those would be capital expenses and impact your cost base).

You must meet specific criteria for your workspace to be considered a home office, such as being required to work from home by your employer (which can include voluntarily entering into a formal telework arrangement with your employer), working more than 50% of the time from the work space for at least 4 consecutive weeks, among other requirements.https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/who-claim/detailed-method.html

Selling Your Home and the Principal Residence Exemption (PRE)

In Canada, capital gains from the sale of your principal residence are generally protected thanks to the principal residence exemption (PRE). If you buy a home for $300,000 and sell it for $500,000, the $200,000 gain is generally tax-free. However, the gains are only fully tax-free if the home was your primary residence for every year that you owned it. If you rented it out for some years, or if you have designated a different property as your principal residence for certain years, you will likely owe some capital gains tax on the portion of time it was not your principal residence. Designating a property as your principal residence can have complex implications, especially if you have owned multiple properties. It's crucial to understand the rules and seek professional advice if needed.

Provincial/Territorial Tax Credits and Grants

Many provinces and territories offer their own tax credits and grants for homeowners. These can include incentives for energy-efficient renovations, property tax rebates, or assistance for first-time home buyers. Check your province or territory's government website for specific programs.

Record-Keeping Tips for Homeowners

Organized records are essential. Keep documents like mortgage statements, property tax bills, and receipts for home improvements readily accessible. Keep both physical and digital copies (scan and save!). Keep all home-related records for as long as you own the home — and it’s always safest to keep digital copies indefinitely. This is especially important for capital improvements as these records are essential for calculating your adjusted cost base when you sell.

Conclusion

Understanding the tax aspects of homeownership is crucial. This guide provides a starting point, but consulting with a tax professional is strongly recommended for personalized advice to ensure you are maximizing your benefits and complying with all tax requirements.

Call to Action: Have questions about real estate or need a referral to a trusted tax advisor? Contact me today!

Note: This information is intended for general guidance only. Tax regulations are subject to change.

National Real Estate Market Update for 2025

Wed, 08 Jan 2025 13:43:25 GMT

The chill in Canada's housing market could be thawing sooner than expected.

Interest rates are dropping.¹ Pent-up demand is building.² Sales are starting to heat up.³ And a potentially electrifying set of mortgage rules just went into effect, making it easier than it 's been in years for first-time buyers with smaller down payments to qualify for a higher priced home.⁴

As a result, some experts now project that competition for new homes could start tightening sooner than anticipated.⁵ "It's game on for home buyers," wrote NerdWallet's mortgage and real estate expert Clay Jarvis after the Bank of Canada announced its latest jumbo rate cut in December. "The combined impact of lower rates and less-stringent lending guidelines could be a game-changer –– for some buyers, anyway."⁴

Even the Bank of Canada acknowledged last month that a confluence of factors that are now widely expected to come together in 2025 could help to rekindle Canada's long frozen housing market. "There are some mortgage rule changes to come," noted Bank of Canada senior deputy governor Carolyn Rogers at a December press conference. Plus, "another 50-basis-point cut. We know housing is very sensitive to interest rates, so we do expect more pickup."⁶

What does this mean for you? Read on for my take on what to expect for 2025.

MORTGAGE RATES WILL BOTTOM OUT

With the Bank of Canada's policy rate now at its lowest point since 2022, both fixed and variable rate mortgages are more affordable than they have been in years.⁷

Mortgage rates could slide further still. The Bank of Canada is still widely expected to cut its key rate by another percentage point or more this year, which will push the prime rate below 5%.⁸

But don't expect fixed mortgage rates to fall too much more in the coming months, if they drop at all. In fact, BMO Senior Economist Robert Kavcic thinks fixed rates may have already hit bottom. That's because today's rates not only reflect previous rate cuts. They're also influenced by anticipated rate changes, with the Bank of Canada's upcoming rate cuts already baked in.⁹

Fixed mortgage rates are also based on changes to Canadian bond yields, which have been extra volatile lately as market watchers nervously eye a potential trade war with the U.S. and sticky core inflation. As a result, fixed rates could move higher if bond yields increase.¹⁰

Variable mortgage rates, on the other hand, are more likely to keep dropping in tandem with the prime rate.¹⁰ However, they might not fall as quickly as some borrowers might hope: after two back-to-back jumbo rate cuts last fall, the Bank of Canada has now signaled that rate cuts going forward are likely to be more gradual. In other words: no more half-point rate cuts.¹¹

What it means for you:

If you're a buyer, now's a good time to get pre-approved for a mortgage so that you can lock in a competitive interest rate and shop around with confidence. Ask me for a referral to a trusted mortgage professional who can help you understand your budget and buy a home when ready.

If you're a seller, good news: your pool of eligible buyers is likely to expand. But keep in mind that affordability concerns will still be top of mind for many home buyers.

DEMAND COULD RAMP UP QUICKLY

If there's one thing about Canada's housing market that most experts seem to agree on this year, it's this: the stage is set for a real estate revival in 2025, particularly this spring.¹² But with home ownership already becoming more accessible than it's been in years, some experts now think that we will see the housing market thaw further well before the weather gets warmer.¹³

According to Shaun Cathart, chief economist at the Canadian Real Estate Association (CREA), for example, mortgage rates have already fallen low enough this winter to spark renewed interest from home buyers. In fact, an off-season pop in home sales last quarter suggests that some budget-minded buyers are already eyeing what's available and bidding while they can.¹⁴

"Normally we might expect this market rebound to take a pause before resuming in the spring," noted Cathart in a news release announcing CREA's most recent home sales data. "However, the Bank of Canada's latest 50-basis-point cut together with a loosening of mortgage rules could mean a more active winter market than normal."¹⁴

According to Rates.ca's mortgage expert Victor Tran, the Bank of Canada's latest rate cuts could also have a psychological effect on homebuyers. "We could see a turning point in buyer psychology that could drive a busy winter season," said Tran in an interview with Bloomberg.¹⁵

That's what happened last fall when mortgage rates declined and sales picked up significantly, surprising analysts who predicted fewer transactions. As analysts at RBC noted at the time: "Interest rate cuts are finally boosting housing market activity in a visible way across Canada."¹⁶

Experts say that Canada's latest batch of mortgage rules, which make it easier for borrowers with smaller down payments to buy a home, could also juice demand this year.¹⁷

What it means for you:

If you're a buyer, plan ahead for extra competition. As of December 15, first-time home buyers can now stretch their mortgage amortization to 30 years, even if their down payment is less than 20%. Previously, amortization periods for insured mortgages were capped at 25 years.⁴

The government of Canada also relaxed requirements for buying a home in the million dollar range. Borrowers who put down less than 20% can now buy a home priced up to $1.5 million.⁴

If you're a seller, you may see more offers and activity later this year. But with more buyers trickling into the market this winter, listing your home now could give you an advantage.

HOME PRICES WILL INCREASE

As real estate competition increases, experts widely predict that home prices will also edge up.¹⁸

Average home prices still have a long way to go before they reach their pandemic-era peak.

Inventory built up significantly last year as more homeowners tested the market and budget-constrained home buyers chose not to jump. That, in turn, helped dampen prices.¹⁹

But prices could pick up quickly as buyers reenter the market and start to compete for what's available. As Bank of Canada Governor Tim Macklem noted last fall: “It wouldn’t be surprising that, as interest rates come down …you see some pickup in housing prices."²⁰

Experts are divided, though, on just how high home prices will go. For example, analysts at Desjardins expect price growth to be relatively subdued. "Our forecast is for the advance in existing home sales and prices to remain modest despite falling interest rates."¹⁹

But other analysts are more bullish, pointing to additional factors impacting home prices, such as pent-up demand, still-limited inventory, and relaxed mortgage rules for some home buyers.²¹

In fact, analysts at TD Bank think that Canada's new mortgage rules could have a particularly potent effect on home prices. "These measures will add a secondary tailwind to a market that's already sprung back to life from lower interest rates and household income resilience," wrote TD analysts. As a result, "Canadian home prices are likely to see an upgrade in our upcoming forecast for 2025 –– an 9% annual average gain versus 6% in our September projection."¹⁷

What it means for you:

If you're a buyer still sitting on the sidelines, you might not want to wait too much longer to jump into the market –– especially if you're on a budget. Although some buyers may already be testing the market, winter is traditionally a slow period for real estate. So it is often a great time to snag some early deals.

If you're a seller, you may see stronger offers this year than you would have received in 2024. But squeezed affordability is still a major issue for many buyers. So you'll want to be careful not to overprice. Reach out for a free consultation so I can help you set an ideal home price.

INVENTORY MAY EASE

Canada's historic housing crunch is far from solved. But home buyers have been enjoying more choices lately as a larger number of homes, including freeholds and condos, go up for sale.²²

Inventory is expected to keep easing through 2025, particularly in the spring when more sellers list their homes.²³ According to National Bank Financial Markets economist Daren King, many sellers have been holding back their listings –– but only temporarily. As King noted in an interview with Real Estate magazine: "I think they want to sell in a market that has some momentum." So once the market thaws, sellers may take their chance and list their homes.²⁴

Even with rising inventory, though, Canada's notoriously limited supply of available homes is still likely to pose challenges –– especially since there continue to be far more people who need homes in Canada than there are available residences.²⁵

New home construction may also weaken this year as builders face ongoing challenges with persistently high building costs and other issues. As a result, "homebuilding activity is expected to be soft in 2025," say Desjardins analysts, which could worsen the housing crunch over time.²⁶

What it means for you:

If you're a buyer, more homes for sale in certain markets could give you an edge, especially if you start looking for a home before competition heats up in the spring. But listings overall will still be relatively tight: so you'll need to be realistic about what you can get.

If you're a seller, you may want to consider listing your home when competition with other sellers is more muted. Home prices tend to rise when there are fewer available homes for sale and decrease when inventory significantly goes up. I can help you determine the best strategy for selling your home while keeping nearby competition in mind.

I'M HERE TO GUIDE YOU

This year is likely to be a memorable one for real estate. But with a fair amount of economic uncertainty still on the horizon, the housing market could also shift extremely quickly. That's why it's important to have an experienced professional you can trust to help you navigate the twists and turns. Contact me for a free consultation so I can help you map out an ideal strategy.

Sources:

NerdWallet - https://www.nerdwallet.com/ca/mortgages/bank-of-canada-december-2024-rate-cut-game-on-for-home-buyers
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/market-updates/rbc-economist-sees-housing-market-recovery-picking-up-pace/516993
Canadian Real Estate Association - https://www.crea.ca/media-hub/news/canadian-home-sales-continue-to-climb-in-november/
Global News - https://globalnews.ca/news/10916945/insured-mortgage-cap-amortization-changes-canada/
Wealth Professional - https://www.wealthprofessional.ca/news/industry-news/bank-of-canada-rate-cut-drives-early-spring-housing-market-projections/387847
The Globe and Mail - https://www.theglobeandmail.com/business/article-bank-of-canada-expects-home-sales-to-pick-up-with-latest-rate-cut-new/
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/market-updates/improved-affordability-in-canadas-housing-market-comes-with-caveats/514287
Financial Post - https://financialpost.com/news/economy/latest-inflation-numbers-mean-bank-of-canada
Global News - https://globalnews.ca/news/10915042/bank-of-canadas-rate-cut-mortgage-impact/
TD Stories - https://stories.td.com/ca/en/article/bank-of-canada-lending-rate-cut-december-2024
CBC News - https://www.cbc.ca/news/business/bank-of-canada-dec-11-1.7407231
Financial Post - https://financialpost.com/real-estate/bank-of-canada-rate-cut-boost-housing-market
Wealth Professional - https://www.wealthprofessional.ca/news/industry-news/bank-of-canada-rate-cut-drives-early-spring-housing-market-projections/387847
Canadian Real Estate Association (CREA) - https://www.crea.ca/media-hub/news/canadian-home-sales-edge-up-again-following-third-interest-rate-cut/
BNN Bloomberg - https://www.bnnbloomberg.ca/business/real-estate/2024/11/18/mortgage-brokers-expect-more-competition-as-buyers-re-enter-housing-market/
RBC - https://thoughtleadership.rbc.com/october-sales-gains-an-inflection-point-for-canadas-housing-markets/
TD - https://economics.td.com/ca-questions-answers
BNN Bloomberg - https://www.bnnbloomberg.ca/business/real-estate/2024/12/11/how-will-the-bank-of-canada-rate-cut-impact-real-estate/
Desjardins - https://www.desjardins.com/qc/en/savings-investment/economic-studies/canada-home-sales-nov-2024.html
Financial Post - https://financialpost.com/real-estate/mortgages/rate-cuts-mortgages-most-searched-google-topic-since-pandemic
CIBC - https://economics.cibccm.com/cds?ID=90686de1-1fe2-49b9-a48a-a0e2a568e6ad&TYPE=E
Canadian Real Estate Association (CREA) - https://stats.crea.ca/en-CA/
Canadian Mortgage Trends - https://www.canadianmortgagetrends.com/2024/10/crea-lowers-housing-market-forecast-for-2024-amid-holding-pattern-for-home-sales/
Real Estate Magazine - https://realestatemagazine.ca/cancelled-listings-surge-as-sellers-await-market-shift/
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/market-updates/resale-homes-to-see-renewed-demand-in-2025-cibc/517189
Desjardins - https://www.desjardins.com/qc/en/savings-investment/economic-studies/housing-outlook-october-31-2024.html

Tech the Halls: Smart Home Gadgets for a Stress-Free Holiday Season

Mon, 02 Dec 2024 14:47:38 GMT

The holidays are a time for joy, family, and celebration, but they also bring added responsibilities. Between decorating, hosting, and just keeping up with your daily routines, your home can quickly start to feel more like a neverending to-do list rather than your haven.

That’s where smart home technology comes in. It can help you streamline holiday tasks to focus on what matters most—spending time with loved ones and enjoying the season's magic.

And there are more upsides to upgrading your home tech: doing so can also enhance the overall value and appeal of your property. Current research suggests that buyers are more likely to make an offer — and a higher one at that —- on a home that already has smart home features installed.¹

So whether you're thinking about selling in the near future or just want to enjoy your home to the fullest this season, adding smart gadgets is an investment that pays off. Read on for some of the best smart home solutions to simplify your holidays (and just maybe make your home more marketable down the road, too).

ENTERTAINING MADE EASY

Spending time with friends and family is the highlight of the holiday season — but entertaining can be a lot of work. These tools can help turn any gathering into a celebration to remember without all of the fuss.

Make cooking easier with digital recipe access

Holiday cooking often means late nights and multiple trips to the store. Instead of juggling old recipe cards, let smart-home displays keep you organized with easy menu planning and grocery lists.

High-end: Google Nest Hub Max
Among its many capabilities, this smart display offers an easy-to-use recipe mode with step-by-step guidance from the Google Assistant. Imagine having a sous chef right on your countertop!

Mid-range: LG - 27" Smart Monitor
Looking for a nice big screen to watch cooking shows or YouTube videos or to pull up your favorite recipe? This smart TV can be perched on your kitchen counter or mounted on the wall — and in addition to using its apps, you can cast content from your iPhone or Android directly to the screen.

Budget pick: Amazon Echo Show 8
With a Food Network integration and recipe assistance, this countertop model offers plenty of features in a less-expensive package perfect for the budget-conscious cook who still wants a little help in the kitchen.

Set the mood with smart lighting

The right ambiance can elevate any gathering. Control colors, brightness, and temperatures remotely with these smart lighting options.

High-end: Philips Hue Play HDMI Sync Box
Watching a holiday movie? Sync your smart lightbulbs to adapt their colors to what’s on the screen for the ultimate festive movie experience.

Mid-range: Lutron Caseta Wireless Bridge
Use this small internet-controlled device to set up automations for your smart bulbs, so you can dim all your lights at once with a swipe on your smartphone. No more running around to get the lighting just right!

Budget-friendly: Govee Lightbulbs
Just getting started with smart bulbs? This affordable option allows you to control color and brightness using your Alexa or Google Home device, offering a simple and cost-effective way to add some holiday cheer to your lighting.

Amplify your holiday spirit with smart speakers

From carols to party playlists, music sets the tone for the holidays. These smart speakers will get everyone in the mood to sing along.

High-end: Bose Smart Speaker 500
This powerful speaker delivers room-filling sound — and Google Assistant and Alexa are both built-in. It’s perfect for audiophiles who want the best possible sound quality for their holiday music.

Mid-range: Amazon Echo Studio
The best device for Amazon loyalists who care about sound, music comes through loud and clear on this speaker. Enjoy your favorite holiday playlists with impressive clarity and depth.

Budget-friendly: Google Nest Mini
This diminutive speaker gives you voice-controlled playback at an entry-level price. A great option for adding voice control and holiday music to any room without breaking the bank.

TRADITIONS WITH A TWIST

Decorating your home and popping on a holiday film gets everyone in the holiday spirit — but the setup can get overwhelming. These tech solutions make things easier and give you more time to enjoy the fun.

Watch holiday favorites in style

Level up your holiday movie traditions with smart projectors that turn any room in your home—or even your backyard—into a movie theater.

High-end: Epson Home Cinema LS1100
This 4K projector is a serious investment, but it delivers cinema-quality performance and a laser light source that won't require replacement bulbs. It's also easy to set up and adjust. Perfect for serious cinephiles who want the ultimate home theater experience.

Mid-range: Samsung Freestyle 2nd Gen Smart Portable Projector
Use this feature-packed battery-powered projector nearly anywhere — it's designed to automatically level and focus your video and to scale to the size of your space. It's equipped with all the streaming apps you need and is compatible with voice assistants. A great option for flexibility and portability.

Budget-friendly: Vankyo Performance V700W
This 1080p projector offers a nice, bright picture, high-quality audio, and the portability to move it from room to room (plus outside). In addition to plugging in a computer or USB, you can cast directly from an iPhone or Android device.

Shine bright with smart plugs

Tired of clambering behind furniture to get to a hard-to-reach plug for your decorations? Invest in smart plugs, and you can control all of your electrified holiday decor (plus anything else you might plug in!) easily from your phone.

High-end: Meross Smart Power Strip
With 4 AC outlets plus two USB C and one USB A port, this smart power strip will allow you to keep the lights on while charging all of your guests’ phones! Each outlet can be operated individually, and the power strip is compatible with Apple HomeKit, Amazon Alexa, and Google Home.

Mid-range: Enbrighten Wifi Smart 2-Outlet Plug
This smart plug turns one wall outlet into two smart outlets, so you can plug your standard lamp and a string of holiday lights in together. Control the plug using an app or with Google or Alexa voice assistants.

Budget-friendly: Kasa Smart Plug Ultra Mini
These inexpensive plugs are designed to take up minimal wall space yet offer plenty of features. Plus, they’re compatible with Google and Amazon home ecosystems.

Create a winter wonderland with smart outdoor lighting

Whether you want to wow the neighborhood with an eye-catching display or simply add a touch of outdoor holiday charm, setting up lights doesn’t have to be a daunting task. Smart outdoor lighting makes it simple to illuminate your home’s exterior with minimal effort or planning.

High-end: Govee Permanent Outdoor Lights
Tired of climbing around on the roof every year? Install these permanent outdoor lights on your home and celebrate year-round with app-controlled color and effects options for every holiday you can think of.

Mid-range: Twinkly Icicle Lights
Drape your home in any color you can think of with these easy-to-use, app-controlled icicle-style lights. True to the name, there are plenty of twinkling options to choose from!

Budget-friendly: Brizled Smart Christmas Lights
String up these nearly 200-foot-long indoor-outdoor lights wherever you’d like to enjoy customizable colors and effects, or sync the bulbs with music for a truly eye-catching outdoor display.

SIMPLIFIED HOME MANAGEMENT

There’s plenty to manage at the holidays as it is—make things easier for yourself by automating some basic home tasks and functions. Less time spent on tedious chores means more time making memories with your family.

Keep your home spotless with robot vacuums

The holidays can create a lot of mess — stay on top of it with smart vacuums that clean up all of those cookie crumbs and bits of wrapping paper for you.

High-end: Roomba Combo J9 Plus
Say goodbye to vacuuming and mopping with this high-tech robot, which comes complete with AI obstacle avoidance to keep it from banging into your furniture.

Mid-range: Roborock Q5 Max+
This powerful robot vacuum is highly customizable — use the app to set up cleaning preferences like a second pass through high-traffic rooms or to block off areas you’d like left alone. Plus, it empties its own bin!

Budget-friendly: Shark Ion
This robot vacuum may not come with all the bells and whistles, but it does a great job keeping dirt and pet hair off the floor. You can control it with Amazon Alexa or the Google Assistant in addition to a dedicated app.

Manage deliveries and greet guests with smart doorbells

The holidays tend to bring a lot more people than usual to your door. Keep track of who’s coming and going, and keep your home safe with smart video doorbells.

High-end: Eufy Dual+ Security Video Doorbell
This large video doorbell offers a much wider field of view than most competitors, plus high resolution and night vision. It’s compatible with both Amazon Alexa and Google Home devices and can be set up wired or wireless.

Mid-range: Google Nest Doorbell Camera
This sleek doorbell camera is easy to set up and control from a distance and offers fast notifications and the ability to respond by voice or with preset messages. Advanced features include package detection and facial recognition.

Budget-friendly: Arlo Video Doorbell
This doorbell offers a wide field of view, high-resolution images, and the ability to zoom in, and is compatible with multiple smart-device ecosystems. However, some of its features, like recordings, require a monthly subscription.

Protect your home while you travel

Unfortunately, the holidays tend to bring higher rates of home break-ins. Whether you’re traveling or staying local, these tech solutions can help keep your home and family safe.

High-end: Ring Alarm Pro
Ring is well-known for video doorbells, but they also offer full home security systems, complete with professional monitoring (for a monthly fee). With high-performing devices and a built-in router to ensure working wifi, this system lets you keep an eye on things no matter where you are.

Mid-range: eufy Security 5-Piece Home Alarm Kit
This easy-to-install kit doesn’t require a monthly subscription, keeping costs low. It includes a hub device, digital keypad, motion sensor, and two entry sensors, all of which you can keep an eye on using the system’s app.

Budget-friendly: August Smart Lock
Lots of visitors coming and going this holiday season? This smart lock upgrades your existing deadbolt, allowing you to give access to trusted family and friends. Best of all, it attaches to the lock on the inside of your door, so it won’t impact your curb appeal or draw unwanted attention.

ENJOY A MORE RELAXING AND FESTIVE HOLIDAY SEASON WITH SMART HOME TECH

Incorporating smart home technology can help make this holiday season more relaxing—and it can also be a great investment that adds value to your property in the long run. From energy-efficient lighting to reassuring security systems, these gadgets do more than just make life easier; they enhance your home’s appeal to future buyers.

If you're curious about how upgrading your home’s tech might impact its value, I’d love to help. Reach out for a free consultation to learn more about the latest trends in smart home technology and how it can align with your real estate goals. Whether you’re looking to sell soon or simply upgrade your lifestyle, I'm here to guide you every step of the way.

Sources

Zolo - https://www.zolo.ca/blog/smart-homes-save-money

Multigenerational Home Buying: How to Find a Home That Fits Your Whole Family

Fri, 01 Nov 2024 16:17:48 GMT

For many homebuyers, multigenerational living used to be considered an option of last resort: it was a route families took only when they needed to ride out a financial storm or care for ailing family members. But that mindset is on the decline: A growing number of families now say that they are embracing multigenerational living and moving in together by choice.

In fact, the share of homes occupied by three or more generations or by cohabiting households has jumped 45% in the last 20 years, according to Statistics Canada. By the time the 2021 census was recorded, over half a million kids lived with both parents and grandparents.¹

Living with extended family has become especially popular in recent years as younger generations face higher home costs and seniors embrace aging in place. With average home prices continuing to outpace median incomes in Canada, first-time home buyers have become more open-minded about co-buying a home with friends or family.²

Indigenous and immigrant families are especially likely to embrace multigenerational living—often for cultural reasons.³ With multigenerational homes more common in other parts of the world, newcomers from those regions often prefer living with extended family, says Dr. Shimi Kang, a psychiatrist and parenting expert. "As Canada, in particular, is getting more multicultural, we see [multigenerational homes] are becoming a norm, not just for financial reasons."⁴

For many families, the benefits are substantial, said Kang to HuffPost Canada. "Pooling finances, pooling childcare, pooling household responsibilities, having a support system built-in."⁴ Plus, research shows that people who live in multigenerational homes are healthier and tend to live longer. They also enjoy more financial security.⁵

That's not to say that multigenerational living is easy: It can also be stressful—especially if you choose a home that isn't suited for a larger family. The key to making it work is to pick a home that can accommodate young and old alike without requiring you to sacrifice comfort or privacy.^{2, 6}

Here's a closer look at multigenerational living, along with tips for finding a home that's suitable for a diverse group.

WHAT TO CONSIDER BEFORE SHOPPING FOR A MULTIGENERATIONAL HOME

Before starting your house hunt, take the time to discuss your house plans as a family so that you're all on the same page. Have you hashed out what you're looking for in a new home? Can you agree on potential compromises? Are there any unaddressed concerns about the move?

You may also find it helpful to articulate your "why" for buying a multigenerational home and how each of you might benefit. For some families, multigenerational living is all about caring for relatives and sharing responsibilities. But for others, the goal is to pool resources so that you can purchase a more desirable property or cut down on expenses, like childcare or senior living.

For homeowner Jennifer Durocher, co-owning a home with her husband's parents allowed them to live in a family-friendly neighbourhood that would have otherwise been out of reach. She and her husband had originally planned to buy their own home separately. "But it was difficult to come up with a substantial down payment," said Durocher to Today's Parent. Meanwhile, Dorucher's in-laws were ready to downsize. By joining forces, both households saved money.⁶

Homeowner Surjit Singh says he immigrated to Canada in 2018 and bought a home with his extended family in 2021, just before inflation caused prices to surge. Owning one home helped the family cope, said Singh to the CBC. "Living together, you can share everything."⁷

In addition to talking over your short-term wants and needs, you'll also want to weigh long-term issues that could crop up in the future, like accessibility or money concerns. For example, if some family members are nearing retirement, accessibility issues (such as extra-steep stairs or a narrow hallway) could become a problem over time. Similarly, a more luxurious home with extra amenities like a pool may appeal to buyers who have gathered a lot of cash upfront, but it may also require a bigger long-term budget for maintenance and supplies.

If you haven't had these discussions yet, set a date in your calendar so that you can talk it over as a group. I can help by interviewing family members individually and advising you on what you can realistically find in today's housing market.

WHAT TO LOOK FOR IN A MULTIGENERATIONAL HOME

Once you've settled on what you want and need from a new home, your next step should be to jointly draft a budget so that you'll know what you can afford. To ensure that no one in your family gets accidentally overextended, think holistically when planning your new housing budget and determine what you would need to buy the home––and maintain it.

In addition to budget, you'll also want to consider a home's size and what kind of layout you might need. In general, homes that offer ample space for solitude and privacy are thought to be more practical for multigenerational living––especially if there will also be young children.⁶

However, the ideal layout for your family and the amount of square footage you'll need to be happy long-term will also depend, in part, on family members' personalities. Some people don't mind sharing a bathroom or having bedrooms situated close to one another. But others may find that they need something more separate to relax. Different housing options to consider include:

A large home with plenty of rooms and at least one or more ensuite bathrooms.
A home with an accessory dwelling unit (ADU), such as a basement apartment.
A multifamily unit, such as a duplex.

Architect Allison Holden-Pope recommends units with separate entrances if possible. That way, each generation feels like they're living in their own space. "Having a sense of identity in your own place is still very important," said Holden-Pope to Today's Parent.⁶

For buyers looking to age in place, a home that offers a separate ground-floor unit, such as a garden home, could be the most comfortable (and the most practical) option. But if that's not possible, then you may at least want to prioritize a first-floor bedroom and bathroom. Some families may also want to consider the needs of future caregivers, said Holden-Pope.⁶

Another possibility to consider would be a home you could add onto or retrofit into multiple units. Building a brand-new unit or renovating an existing space can be pricey. However, you may qualify for a Multigenerational Home Renovation Tax Credit to help offset your expenses.⁸

When visiting a property, I'll help you weigh potential costs and estimate whether it's a good investment. I can also connect you with a trusted contractor who specializes in renovations.

HOW TO BUY A MULTIGENERATIONAL HOME

Buying a home with family can be complicated––especially if you plan to jointly apply for a mortgage. However, depending on your financial resources, you may be surprised to find that it's sometimes easier to qualify for certain mortgages as a group than if you tried to go it alone.⁹

You don't necessarily have to split the mortgage evenly, either. A tenants-in-common mortgage allows you to customize the amount of property each family member owns. For example, one household member could assume responsibility for two-thirds of the mortgage, while another could pay for just one-third of the home.⁹

With a joint tenancy mortgage, by contrast, the mortgage is divided equally between co-borrowers and each borrower will be liable for the same amount.⁹

Talk it over with a mortgage lender or broker and ask for advice on what's best for your situation. We'd be happy to connect you with a professional who understands the nuances of co-buying.

Your credit will also be an important factor in determining your mortgage qualifications and what you can buy, so have everyone check it as soon as possible. Pulling your credit report and score will not only tell you where you stand. It will also alert you to correctable issues with your credit, such as mistakes on your credit reports or too much debt on your cards.¹⁰

As you discuss your homebuying budget and strategy, jointly consider the following:

Who will be on the mortgage?
What about the title?
Would including everyone on the mortgage be beneficial for your mortgage rate?
For those who don't qualify for the mortgage or have a lower credit score, can you make other arrangements so that they can still financially contribute?

Next, consider potential tax and estate planning implications of your home purchase, as well as worst-case scenarios. For example, if some family members want out of the arrangement, you'll be required to refinance your home purchase, and you may not get as favourable a rate.⁹

To ensure you make an informed decision, it's best to speak with a credentialed professional. Ask me for a referral to a legal professional or an accountant who can advise you.

BOTTOMLINE

Multigenerational home buying has grown more popular for a reason: it's a great way to combine resources and buy a supportive home for more than just your immediate family. It can also be a smart lifestyle choice, helping reduce loneliness and promote health and well-being.⁵

If you're wondering whether multigenerational living is right for you, call me for a consultation. I'd be happy to walk you through potential options and help you envision your own full house.

Sources:

Statistics Canada -
https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713a-eng.htm
The Walrus -
https://thewalrus.ca/multigenerational-living-often-makes-sense-that-doesnt-make-it-easy/
Vanier Institute of the Family -
https://vanierinstitute.ca/resource/sharing-a-roof-multigenerational-homes-in-canada-2021-census-update/
HuffPost Canada -
https://www.huffpost.com/archive/ca/entry/three-generation-homes_ca_5cd4f84ce4b07bc729739712
SSM - Population Health -
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5769098/
Today's Parent -
https://www.todaysparent.com/family/family-life/multi-generational-homes/
CBC -
https://www.cbc.ca/news/canada/british-columbia/canada-bc-multi-generational-housing-affordable-1.7134448
Realtor.ca -
https://www.realtor.ca/blog/understanding-canadas-multigenerational-home-renovation-tax-credit/30088/1362
The Globe and Mail -
https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-multi-generational-living-is-getting-more-common-heres-how-to-share/
Financial Consumer Agency of Canada -
https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score.html

Stage to Sell: 7 Proven Steps to Attract Buyers and Boost Offers

Thu, 03 Oct 2024 14:29:34 GMT

Selling your home quickly and at the right price takes more than just listing it online. To draw in potential buyers and secure top offers, your home needs to stand out. That’s where home staging comes in. By strategically preparing your home—through redecorating, repairing, and making it look its best—you can make a lasting impression and significantly increase its appeal.

The numbers speak for themselves: according to the U.S.-based National Association of Realtors, 81% of buyers’ agents report that staging makes it easier for potential buyers to envision themselves living in a home. Moreover, 44% of buyers’ and sellers’ agents say that staging can increase a home’s sales price, and 48% of sellers' agents agree it shortens the time a house spends on the market.¹

You can choose to stage your home yourself with advice from your real estate agent or work with a professional stager. Whichever route you take, here are seven essential strategies to transform your home into a buyer’s dream.

Step #1: Declutter and Depersonalize

The first step in staging is to declutter and depersonalize your home. A recent survey of real estate agents found that this simple step can increase your home’s sale price by 3-5%.²

This creates a clean, neutral canvas where potential buyers can imagine their own lives. Remember that staging isn’t interior design—the goal isn’t to add personal, homey touches but to take them away.³While you may love having plenty of comfy furniture, family photos, and unique knick-knacks, these items can distract potential sellers and make your home feel smaller.⁴ Be especially mindful to remove children’s toys and pet items.

The task can feel overwhelming, but consider it a head start on packing for your move — and an opportunity to clear out things you no longer need. If you have a lot of belongings, renting a storage unit might be a smart way to keep things tidy while your home is on the market.

Step # 2: Deep Clean and Repair

A sparkling clean home leaves a fantastic first impression. Deep clean every room, paying special attention to areas that are often overlooked, like baseboards, windows, and appliances. Even minor smudges, scrapes, or signs of pet hair can put off some buyers. Your goal? Make it look like no one has ever lived there!⁵

Minor repairs are equally important. Fix slight imperfections like chipped paint, regrouting tiles, and replacing worn hardware. These easy cosmetic updates make a big difference in how buyers perceive your home’s value. For example, replacing your floors can offer a return on investment of 100-150%.⁶

Need help getting your home spic-and-span? Let me recommend a professional who can help.

Step #3: Pick Up a Paintbrush

While buyers may repaint after they move in, the colour and condition of your walls still have a big impact on their impression of the home as a whole. Neutral tones like beiges and off-whites appeal to the widest range of buyers—and to the friends and relatives who are also weighing on purchasing decisions.⁷

If your home features bold colours or striking wallpaper, consider a repaint before you list. When choosing paint colours, make sure to think about how they’ll appear in listing photos and videos. Light, neutral shades can make rooms look brighter and more spacious.

Repainting is especially important in high-traffic areas like the kitchen. Painting outdated cabinets in white or a soft gray can also modernize your space.⁸

Step #4: Enhance Curb Appeal

First impressions matter, and your home's exterior is the first thing buyers will see. That’s why most real estate agents urge sellers to clean up their home’s exterior — and why curb appeal can drive up to 7% of a home’s sale price.⁹

Boost your home’s curb appeal by power-washing the exterior and touching up your deck’s varnish.⁵ If your exterior paint is faded or chipped, consider hiring painters — or for a smaller project, repaint your front door and freshen up first impressions with new hardware and hanging plants.¹⁰

And don’t forget landscaping! Keep your lawn tidy, remove dead or dying plants, and consider adding seasonal flowers. Even standard lawn service can lead to a 217% return on investment.¹¹ If you need assistance, I'm happy to offer a referral to landscapers in our area.

Step #5: Stage Key Rooms

When staging, concentrate on the rooms that matter most to buyers: the living room, primary bedroom, and kitchen. These spaces have the greatest influence on a buyer’s decision.¹

If you’re working with a professional stager, they may bring in furniture and decor.³ If not, make the most of what you have, and don’t worry about how you’d arrange furniture in real life. This is just about showing off the space.

Arrange furniture to create an open, inviting flow.⁵ Use large rugs to make rooms appear bigger and ensure artwork complements rather than overwhelms the space.⁹ Add pops of colour with fresh flowers or simple decor like pillows to bring warmth without personalizing the space too much.

Step #6: Put Your Home in Its Best Light

Lighting is key to creating a welcoming atmosphere in your home. Natural light in particular makes any room feel more airy and spacious, so it’s essential to make the most of it.

First, remove heavy curtains or blinds — if a room feels bare without a window treatment, hang sheer curtains or light-filtering shades to invite the outdoors in. Next, take a look at the landscaping surrounding your home. If overgrown hedges or trees block windows, especially on the ground floor, consider cutting them back or removing them entirely to let in the sunshine.

Of course, homes need more than just natural light — and it’s important to use a combination of types of lighting to suit different uses and moods. Experts recommend that each room have three light sources: ambient lighting (think ceiling lights or chandeliers), task lighting (like lamps or under-cabinet lights), and accent lights (like track lighting and picture lights).¹³ If needed, replace outdated fixtures with more modern options.¹⁴Even swapping out lightbulbs can make a difference—opt for warm, 2700k bulbs to create an inviting glow.⁷

Have hard-to-reach windows or need help installing new lighting fixtures? I'm happy to refer a professional who can help.

Step #7: Show Off Your Work with Photography

These days, most buyers will first see your home online, making high-quality photos essential. According to the U.S.-based National Association of Realtors, 89% of agents agree that professional photos are critical to marketing a listing.¹

Depending on your home and market, you may also benefit from marketing your property with videos, virtual tours, and even virtual staging, where photo editors swap out furniture and colours to show how your home would look with different decor.

Talk to your agent about what makes sense for your situation, and work with them to hire professionals who can capture your staged home in its best light. When it comes time, treat the photo shoot like an open house—everything should be spotless, well-lit, and arranged to show off your home’s best features.

BOTTOMLINE

Whether or not staging is worth the investment depends on your home’s condition, your desired sale timeline, and your local market. Before committing to professional help or cosmetic upgrades, reach out for a free consultation. I can help you assess the best path forward and connect you with the best professionals to make it happen.

References:

National Association of Realtors - https://www.nar.realtor/sites/default/files/documents/2023-profile-of-home-staging-03-30-2023.pdf
Homelight - https://www.homelight.com/blog/how-to-clean-out-a-house-to-sell/
National Association of Realtors - https://www.nar.realtor/blogs/styled-staged-sold/6-things-home-stagers-wish-real-estate-pros-knew-about-staging
Coldwell Banker - https://blog.coldwellbanker.com/home-staging-mistakes-to-avoid/
Zillow - https://www.zillow.com/learn/how-to-stage-house-to-sell/
HGTV - https://www.hgtv.ca/common-renovating-costs-flooring/
House Beautiful - https://www.housebeautiful.com/design-inspiration/real-estate/a61712558/how-to-make-your-house-sell-over-asking-according-to-professional-home-stagers/
HGTV - https://www.hgtv.com/lifestyle/real-estate/15-secrets-of-home-staging-pictures
Spruce Magazine - https://www.sprucemagazine.ca/the-real-deal-on-curb-appeal/
HGTV - https://www.hgtv.ca/landscaping-ideas-to-increase-property-value/
National Association of Realtors - https://cdn.nar.realtor//sites/default/files/documents/2023-03-remodeling-impact-outdoor-features-03-17-2023.pdf
RE/MAX - http://download.remax.ca/PR/REMAXHomeStagingGuide.pdf
Martha Stewart - https://www.marthastewart.com/2126982/how-to-layer-your-lighting
Martha Stewart - https://www.marthastewart.com/outdated-lighting-trends-8421744

7 Mistakes to Avoid When Hiring a Contractor

Wed, 11 Sep 2024 13:12:47 GMT

A recent survey found that 25% of Canadian homeowners have a renovation project planned in the coming year.¹ If you’re among them, you know that embarking on home improvements can be both exciting and daunting. According to home services platform HomeStars, the national median renovation budget is around $12,000, so you're probably investing a significant amount—and you'll want to ensure your project’s success.²

One of the most critical decisions you'll make is choosing the right contractor to bring your vision to life. However, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and subpar results.

In this guide, we'll explore seven mistakes to avoid when hiring a contractor to ensure your project runs smoothly from start to finish.

1. SKIPPING THE RESEARCH PHASE

A common mistake homeowners make is rushing into hiring a contractor without proper research. But to ensure the success of your renovation, it’s crucial to take time to meet with multiple candidates and educate yourself on best practices surrounding your project.

If you bypass the interview process, you miss the opportunity to evaluate different approaches, pricing, and expertise. This can result in overpaying or hiring someone whose skills and vision do not align with your needs.

Neglecting to research the processes and steps involved can also leave you vulnerable. Not only does it make it more difficult to ask the right questions, but you also risk hiring unqualified professionals or settling for subpar work.

What To Do Instead:

Educate Yourself — Read up or watch YouTube videos to gain a better understanding of best practices surrounding your project.

Interview Multiple Contractors — Search for and interview at least three contractors who specialize in the type of work you need.

Ask Specific Questions — Inquire about the processes and materials each candidate will utilize.

Seek Recommendations — Get referrals from trusted sources like friends, neighbours, and real estate professionals. I’d be happy to share a list of referrals!

2. CHOOSING BASED SOLELY ON PRICE

Once you’ve interviewed candidates and reviewed their proposals, it’s time to choose your favourite. But don’t make the mistake of rushing to the lowest bid.

While it's natural to want to save money, selecting a contractor based entirely on price can be a costly mistake. Extremely low bids may indicate cut corners, subpar materials, or hidden costs that will surface later.

When evaluating bids, make sure you’re comparing “apples” to “apples” and considering factors like quality, timeline, and scope. Are they fully licensed and insured? How long have they been in business? Do they warranty their work?³

What To Do Instead:

Consider Overall Value — In addition to price, look at experience, reputation, and quality of work.

Ask for Detailed Breakdowns — Understand what's included and what's not in each bid.

Be Wary of Low Bids – Bids that are significantly lower than others may be too good to be true.

Invest in Quality — Remember that quality work comes at a fair price, and investing in a reputable contractor can save you money in the long run by avoiding costly mistakes or repairs.

3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE

When you’ve established a good rapport with a contractor, it’s natural to want to believe the best in them. But neglecting to check references and verify licensing and insurance could come back to haunt you.⁴

Hiring an untrained or unlicensed contractor puts you at risk for safety and code violations, not to mention shoddy workmanship. Without proper insurance, you could be left footing the bill for costly repairs, legal issues, or even medical bills if someone gets hurt on the job.⁴

Skipping out on a reference check can be equally problematic. It’s your best opportunity to ensure that their promises and your expectations line up with reality.

What To Do Instead:

Verify Licensing and Insurance — Confirm that the contractor is licensed according to local requirements and verify insurance, including general liability and workers' compensation coverage.

Check Reviews — Read online reviews and confirm that the business is in good standing with the Better Business Bureau and other relevant trade groups.

Call References — When contacting references, ask questions and request to see photos of the contractor's completed projects.

Visit Job Sites — If possible, visit a current job site to observe the contractor's work in progress and interaction with clients.

4. PROCEEDING WITHOUT A WRITTEN AGREEMENT

A handshake deal might seem friendly and straightforward, but it's a recipe for misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and leave room for miscommunication about project scope, timelines, and costs.⁵

Instead, you should have a signed contract in place before any work begins.⁶ Paperwork can be tedious, but don’t skip the important step of carefully reading over your contract, asking questions, and pushing back on any terms that make you uncomfortable.

Don’t forget to ask for payment receipts and document any change orders or issues that arise throughout the project, as well.

What To Do instead:

Insist on a Written Contract — Outline all aspects, including scope, materials, timeline, payment schedule, warranty information, and a process for handling change orders.

Understand and Agree — Don't sign anything until you fully understand and agree to all terms.

Keep Documentation — Once you’ve made your final payment, request a receipt marked “Paid in Full” to keep on file for legal and tax purposes.

5. PAYING TOO MUCH UPFRONT

Another common misstep is paying a large sum upfront or the full cost of the project before the work is completed. This can leave you vulnerable if the contractor fails to complete the work or disappears with your money.

Upfront deposits shouldn’t exceed 10% to 15% of the total project cost.⁷The remaining payments should be tied to progress milestones outlined in your contract.

Legal experts caution against paying a greater share of the project cost than the percentage of the work that’s been completed.⁸ If you end up dissatisfied with the outcome, you’ll have much less leverage if you’ve already paid.

What To Do Instead:

Be Cautious — Avoid contractors who demand large upfront payments or cash-only deals.

Establish a Payment Schedule — Tie payments to project milestones and stick to them.

Pay Only Upon Completion — Never pay in full until the project is completed to your satisfaction and all required inspections have been passed.

6. FAILING TO GET NECESSARY PERMITS

Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences. Without the proper permits, you risk running afoul of local building codes and regulations, which could result in fines, forced removal of work, or even legal action.⁹

Additionally, unpermitted work might compromise the safety and structural integrity of your home, potentially leading to hazardous conditions or diminished resale potential. Homeowners may also find themselves without recourse if issues arise later, as insurance companies often exclude coverage for unpermitted renovations.⁹

If you’re under the jurisdiction of a condominium or homeowners’ association, don’t forget to check its bylaws, as well. You may need prior approval to make modifications to your home or yard. Ignoring these restrictions can lead to fines or delays—so don’t skip this important step.¹⁰

What To Do Instead:

Discuss Permits — Talk about permits and association requirements with your contractor before work begins.

Include Permits in the Contract — Ensure that obtaining necessary permits and approvals is part of your contract.

Verify Inspections — Make sure all required inspections are completed during the project.

Keep Records — Keep copies of all permits and inspection reports for your records.

7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED

Sometimes a contractor can check all the right boxes—until the work begins. Unfortunately, red flags that are spotted mid-project can be especially challenging to address.

If you’ve already paid a substantial amount or had a portion of your home demolished, you may feel trapped in a bad situation. However, if there are major problems that the contractor is unwilling to address, ignoring them can make things exponentially worse.

Don’t be afraid to seek legal or professional advice if issues persist. Taking immediate, informed, and decisive action is crucial to safeguarding your investment and ensuring the project's ultimate success.¹¹

What To Do Instead:

Review Your Contract — Make sure you thoroughly understand your rights and the agreed-upon terms.

Document Issues — Keep detailed records, including dates, descriptions of problems, photographs of subpar work or materials, and any communications with the contractor.

Communicate Professionally — Arrange a meeting to discuss your concerns, ensuring you remain calm and professional while clearly expressing your expectations.

Request a Resolution Plan — Ask for a plan to address the issues, set a timeline for resolution, and put everything in writing to ensure you’re both on the same page.

Seek Advice — If the contractor is uncooperative or dismissive, consider seeking advice from a legal professional.

BOTTOMLINE

Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience.

Remember, taking the time to thoroughly vet contractors, communicate clearly, and plan carefully will pay off in the long run. Your home is likely your most significant investment, and it deserves the care and attention that comes with making informed, thoughtful decisions about who works on it.

If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation!

Sources:

FinanceIt -
https://www.financeit.io/2024-canadian-homeowner-reno-report/
HomeStars -
https://go.homestars.com/l/209902/2023-09-19/3knlc8/209902/16954201083uIFaZeZ/Reno_Report___2023_final.pdf
Canadian Home Builders’ Association -
https://www.chba.ca/finding-a-renovator/
The Globe and Mail -
https://www.theglobeandmail.com/life/home-and-garden/before-starting-work-check-your-liability/article571895/
Forum Law -
https://www.forumlaw.ca/do-verbal-contracts-hold-up-in-court/
Canadian Home Builders’ Association -
https://www.chba.ca/legal/
HGTV Canada -
https://www.hgtv.ca/kenny-brain-advice-on-hiring-a-general-contractor/
The Washington Post -
https://www.washingtonpost.com/home/2024/07/08/how-to-find-good-honest-contractor/
HUB SmartCoverage -
https://www.hubsmartcoverage.ca/blog/what-do-i-risk-if-i-dont-get-permit-during-renovations/
Condo Strategies -
https://condostrategis.ca/en/blogue/condo-renovation/
Angi -
https://www.angi.com/articles/how-complain-contractors-effectively.htm

Top 4 Factors to Consider When Choosing Your Mortgage

Fri, 16 Aug 2024 22:12:37 GMT

With home prices and rates still relatively high, securing a mortgage can feel daunting––even to the most experienced borrowers. But don't let that deter you: If other homebuyers’ experiences are any indication, odds are you'll eventually find a home loan that works well for you.

In fact, research from the Real Estate and Mortgage Institute of Canada (REMIC) found that even after the Bank of Canada pushed rates to a 22-year high, most homeowners still felt satisfied with their mortgages. According to an online survey, only a small fraction regretted the mortgage that they'd chosen because they felt “locked in at ‘a bad rate.’” Fewer than a third said they would have picked another property if they'd known their mortgage rates would climb.¹

Now that the Bank of Canada's policy rate has finally moved lower, this is an ideal time to compare mortgages and get pre-qualified so you can confidently scout for deals. That way, you'll be ready to jump fast if you spot an opportunity.

To help you get started, I've rounded up four of the most important factors to consider when narrowing your list of potential mortgage options.

Your Credit Score

That three-digit number that credit scoring companies like FICO assign not only influences your interest rate, but it also helps determine the type of mortgage you can get.²

The best-priced mortgages typically go to borrowers with scores of at least 720 or more. But if your credit score is lower, you still have options.³

To qualify for an insured mortgage with less than 20% down, you or a co-borrower will likely need at least a 600 credit score, unless you're a Canadian newcomer. Canada Mortgage and Housing Corporation (CMHC) reduced the minimum required score for a typical CMHC-insured mortgage from 680 to 600, but the private insurers Sagen and Canada Guaranty Mortgage set their own thresholds and may require a higher score.^4,5,6

New Canadians, on the other hand, may qualify for an insured mortgage even if they have little to no Canadian credit history. Many conventional lenders offer special loans called “newcomer mortgages” to immigrants who have landed within the past five years.⁷

However, if your score is low because you have a history of missed payments or a high credit utilization ratio (which is the amount of debt you have relative to your credit limit), then you may not qualify for a conventional mortgage and may need to look to alternative lenders.⁸

Nonbank lenders known as “B lenders” specialize in serving nontraditional borrowers, such as self-employed homebuyers, so their standards are usually more relaxed. You'll probably still need a minimum score of around 600, though, as well as a down payment of 20% or higher.⁹

If your score is well below 600, then your options are more limited. Some home sellers offer owner-financed mortgages. Alternatively, private investors who specialize in subprime loans (known as “C lenders”) may work with you.¹⁰ But if you can afford to wait for a higher score, you may be better off paying down your existing debt instead. The interest you save with a more competitively priced loan could enable you to buy a more desirable home.¹¹

Your Income and Expenses

The amount of money you make, as well as how much you owe, will also influence your mortgage options.

Lenders like to see that you still have plenty of income left over after paying your expenses. So when evaluating your creditworthiness and ability to pass a stress test, a mortgage lender will look at your current pay and outstanding debts, like student loans and credit card balances.¹²

They will also compare your expected income to the total amount of debt you'll carry once you've bought the home. This is called your total debt service (TDS) ratio and lenders consider it a key indicator of whether you can afford a particular mortgage.¹²

The Financial Consumer Agency of Canada caps the recommended TDS ratio for a mortgage from a federally regulated entity, such as a bank or federal credit union, at 44% of a borrower's income. However, some nonbank lenders may still work with you if your TDS ratio is higher.¹³

In addition to outstanding debts, lenders take into account other expenses unique to a home, such as property taxes, heating costs, and 50% of condo fees, if applicable. To pass Canada's mortgage stress test (which is necessary for any federally regulated lender), your total housing costs should eat up no more than 39% of your qualifying income. This is called your gross debt service (GDS) ratio, and it's a key figure to keep in mind when comparing potential homes.¹²

In general, the lower your TDS and GDS ratios are, the better your odds will be of securing a competitive mortgage. That's especially true now that Canada's top bank regulator, the Office of the Superintendent of Financial Institutions (OFSI), has announced more stringent rules for federally regulated lenders that work with “highly indebted” mortgage borrowers.¹⁴

Unregulated lenders have more flexibility and so may be more forgiving. However, they could still require you to pass a mortgage stress test.¹⁵

Your Expected Down Payment

The size of your down payment will also impact the type of mortgage you can get.

You don't have to put down 20% to qualify for a competitively-priced mortgage from a conventional lender. (In fact, interest rates are often lower for insured mortgages than they are for uninsured ones.¹⁶) But you will need a significant amount.¹⁷

The lowest down payment amount you can get away with is usually 5%. However, depending on your income and credit history, a lender may require more to fund the home you want.¹⁷

Since conventional mortgages with down payments below 20% automatically require mortgage default insurance, you'll also want to take into account the added expense. Depending on the size of your down payment, it could cost you as much as 0.6% to 4% of your loan amount.¹⁸

In most cases, mortgage amortization will also be capped at a maximum of 25 years if you opt for an insured mortgage.A shorter amortization schedule, such as a 10 or 15-year mortgage, will save you money on interest. However, your monthly mortgage payment will also be higher.¹⁹

With an uninsured mortgage, by contrast, you could extend your mortgage amortization to 30 years, or possibly even longer with some mortgage lenders. That could help make your monthly payments more affordable. But to be approved, you'll typically need substantial home equity.²⁰

If you're a first-time homebuyer, you'll have even more options. For example, you may be able to get a 30-year uninsured loan if you buy a brand-new property.²¹

Keep in mind, though, that mortgages with smaller down payments not only cost more over time. They may also be harder to get––especially if there's a major gap between your qualifying income and typical home prices. In that case, you'll likely need a healthy down payment to help make up the difference. An extra big down payment above 25% to 35% could also help you qualify for mortgages you wouldn't get otherwise.¹⁷

Your Lifestyle and Risk Tolerance

In addition to your budget, one of the most important factors to consider when comparing mortgage options is your temperament. The key to finding the right mortgage for you is to look for a loan that will fit comfortably into your daily life. For example, I recommend asking yourself questions such as: Are you a natural risk taker, or do you prefer firm plans and predictability? Can you afford a bigger mortgage payment if interest rates increase, or are your anticipated home expenses already stretching your monthly budget?

Similarly, consider your ideal payment schedule. If you like the idea of making lots of extra payments and paying off your mortgage early, then you may prefer an open mortgage. However, a closed mortgage will typically offer a lower rate.²²

Term lengths and mortgage rates are also important factors to consider. But given the economy's uncertainty, it can be tricky to predict the most optimal mortgage type.

For example, choosing a shorter-term mortgage, such as a three-year fixed rate mortgage, or opting for a more flexible variable rate one can give you some valuable wiggle room in case interest rates decrease. But if rates unexpectedly pick up, you could be caught off guard by a higher monthly payment. Term lengths can also impact the mortgage rates you're offered.²³

Five-year fixed rate mortgages, on the other hand, may feel more comfortable to risk-averse borrowers. They are also the most common type of mortgage in Canada and are often a great choice for those who prefer to set-it-and-forget-it. But locking yourself into such a long mortgage could also be risky. With a longer term mortgage, you not only risk overpaying rates go down, you also risk getting stuck with a loan that requires a big multi-year commitment.^{23, 24}

BOTTOMLINE

Regardless of the loan you choose, it pays to shop around and carefully compare terms. According to a recent survey by Mortgage Professionals Canada, most homebuyers risk leaving money on the table by failing to negotiate and sticking with the first interest rate offer they receive.²⁵

Fortunately, I have a vetted list of mortgage professionals who can explain your options, answer your questions, and help you find the best loan to meet your needs. I can also develop a custom plan for securing a great home that fits your budget. Reach out when you're ready to get started.

Sources:

Real Estate and Mortgage Institute of Canada (REMIC) - https://www.newswire.ca/news-releases/real-estate-regrets-over-a-third-of-canadians-regret-their-current-mortgage-situation-834450472.html
Globe and Mail - https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-how-mortgage-shoppers-can-weave-their-way-through-the-credit-score/
Rates.ca -
https://rates.ca/resources/does-your-credit-score-affect-your-mortgage-rate
CMHC -
https://www.cmhc-schl.gc.ca/media-newsroom/notices/2021/cmhc-reviews-underwriting-criteria
Sagen -
https://www.sagen.ca/ups/product-specific-underwriting-guidelines/
Canada Guarantee -
https://www.canadaguaranty.ca/products-at-a-glance/
Wowa -
https://wowa.ca/newcomers-mortgage
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/guides/whats-the-right-credit-score-to-buy-a-house-in-canada/443717
Nerdwallet -
https://www.nerdwallet.com/ca/mortgages/understanding-b-lender-mortgages
Ratehub -
https://www.ratehub.ca/private-mortgage-loans
Ratehub -
https://rates.ca/resources/does-your-credit-score-affect-your-mortgage-rate
Financial Consumer Agency of Canada - https://www.canada.ca/en/financial-consumer-agency/services/mortgages/preparing-mortgage.html
Nerdwallet -
https://www.nerdwallet.com/ca/mortgages/what-are-debt-service-ratios
Office of the Superintendent of Financial Institutions -
https://www.osfi-bsif.gc.ca/en/news/loan-income-limit
Lowest Rates - https://www.lowestrates.ca/resource-centre/mortgage/difference-between-a-lenders-and-private-mortgage-lenders-canada
Globe and Mail - https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-insurance-mortgage-save-money/
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/guides/down-payment-on-a-house-in-canada-what-you-need-to-know/435534
Ratehub -
https://www.ratehub.ca/cmhc-mortgage-insurance
Financial Consumer Agency of Canada - https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-terms-amortization.html
Global News - https://globalnews.ca/news/9815405/mortgage-amortization-risks-costs-interest-rate-canada/
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/market-updates/first-time-buyers-can-save-thousands-with-cmhcs-30-year-mortgages-says-ratehub/493319
Financial Consumer Agency of Canada - https://www.canada.ca/en/financial-consumer-agency/services/mortgages/choose-mortgage.html
MoneySense - https://www.moneysense.ca/spend/real-estate/mortgages/3-years-versus-5-year-mortgage-term/
MPA Magazine - https://www.mpamag.com/ca/mortgage-industry/guides/the-types-of-mortgage-in-canada-you-can-choose-from/436516
Canadian Mortgage Trends - https://www.canadianmortgagetrends.com/2024/06/canadians-leaving-money-on-the-table-by-not-negotiating-their-mortgage-renewal-rates

7 Weekend Projects to Boost Your Property Value

Fri, 12 Jul 2024 16:34:51 GMT

Whether you’re putting your home on the market in a few weeks or a few years, strategic upgrades can make all the difference. But you don't have to embark on a major remodel to make a significant improvement.

Even minor updates can have a big impact on your home’s aesthetic, and certain renovations can even boost its future sale price.

From curb appeal to interior updates, here are seven weekend projects that will enhance your home’s current charm and long-term value.

Freshen Your Front Door

Is your front door looking a little tired? A new coat of paint can make your home more inviting to today’s guests and tomorrow’s buyers.

But before you grab that paintbrush, think carefully about your choice of hue. According to a recent study, the colour of your front door can boost—or lower—your home's sale price by thousands of dollars.¹

Cement gray, for instance, was found to decrease purchase offers by an average of $3,365. Going too bold can also deter home shoppers. The safest bets? Classic black or a mid-tone brown are proven winners.¹

Need help choosing the perfect paint or stain for your front door? We'd be happy to offer advice or refer you to a design professional for assistance.

Upgrade Your Hardware and Lighting

It's easy to overlook dated cabinet pulls or dingy light switches in your own home. But those seemingly minor details can leave a bad impression on visitors.

Swapping out old hardware for modern alternatives can easily and affordably elevate your space. New cabinet handles, for example, are relatively inexpensive and require just a few minutes and a screwdriver to install. To maximize the longevity of your update, consider classic shapes and finishes like brass knobs or nickel cup pulls.²

Take a look at your light fixtures, too. Try replacing an out-of-style chandelier with a more contemporary option. Even just updating your lampshades and lightbulbs can create a brighter, more welcoming space. Additionally, many experts agree that high-quality lighting can show off your property’s best features when it comes time to sell.³

Uncomfortable changing a light fixture yourself? Contact me for a referral to a licensed electrician for help.

Update Your Bathroom Fixtures

Bathrooms can show their age quickly, but a few inexpensive updates can take years off in just a few hours. And since many buyers will be more drawn to a home that feels clean and modern, even small changes can make a big difference.

According to one U.S.-based study, for every dollar you spend on minor cosmetic upgrades—like swapping out the bathroom mirror, upgrading hardware, or refinishing cabinets—you’ll see a $1.71 increase in your home’s value.⁴

Bathroom hardware is a great place to start. Consider updating your faucets and showerheads (I recommend lower-flow options to save money and the environment), and don't forget about towel racks, toilet paper holders, and any other fixtures that look worn or discoloured.⁵

According to hardware manufacturer Delta, black finishes are currently trending. Spa-like upgrades, like steam showers and luxury hand showers, are also in high demand.⁶

If your existing vanity is in poor condition, installing a new one is a slightly bigger project, but it has a huge impact on the look and feel of the room. Reach out for a list of retailers who carry high-quality but affordable prefabricated options.

Give Your Kitchen Cabinets a Makeover

A recent study found that a kitchen renovation can boost a home’s sale price by up to 20%, making it one of the most valuable home improvement projects.⁷ So, it's no surprise that an updated kitchen is a top priority for Canadian homeowners and potential buyers alike.⁸

If your kitchen cabinets are from another era, that’s probably the first place you’ll want to start. Fortunately, you don’t need to commit to the hassle and expense of installing new cabinets if your current ones are in good shape. Instead, consider painting them.

Not only is it more affordable and eco-friendly than replacement, but Better Homes and Gardens reports that this option typically offers a greater return on investment.⁹When it comes to choosing the right colour, warm neutrals and shades of green and blue are especially on-trend.¹⁰

Thinking about painting your cabinets yourself? Be sure to plan in advance and block out at least a couple of days for the project. You’ll need to take off all your cabinet doors and hardware and thoroughly cover your kitchen appliances and counters. You’ll also need to wait for the doors to dry before reassembling your kitchen.¹¹

If you’re not confident in your painting skills, hiring a professional will still be far less expensive than installing new cabinets. I'm happy to refer you to capable painters in our network.

Look at Your Landscaping

First impressions matter, and putting some work into your home’s exterior can make a big difference in how your guests and neighbours view it. Curb appeal can also make or break a potential buyer’s perception of your home—and significantly impact their offer.

According to a study by the Journal of Real Estate Finance, curb appeal can account for 7% of a home’s sale price.¹² And in some areas of Canada, it’s among the top three renovations offering the highest return on investment.¹³

One of the best ways to improve curb appeal is through landscaping—and it doesn’t have to be elaborate. First and foremost, focus on keeping things neat, tidy, and welcoming. Mow your lawn, refresh any mulch, prune overgrown shrubs, and add pops of colour with flowers. To take things up a notch, add outdoor lighting and plant perennial flowers along the sides of your walkway.

When you’re ready to get started, reach out for a list of our favourite local garden centres where you can find all the necessary supplies.

Refinish Your Wood Floors

For many buyers, wood floors are a huge selling point. Unfortunately, they also tend to get scuffed and worn over time, especially if you have kids or pets.

The good news? If your wood floors could use a touch-up, it’s well worth the time and cost. According to one U.S.-based study, it’s the project that pays off the most in terms of resale value, with an average 147% return on investment.¹⁴

If you have a few days to devote to your floors, you can rent the necessary equipment from a local hardware store. While you’re there, pick up some basic supplies, like a putty knife, paintbrushes, sandpaper, and stain.¹⁵ And if you want to modernize your space, opt for a lighter wood tone, which is the current trend.¹⁶

Of course, I'm also happy to provide the names of trusted professionals who can tackle the work for you.

Clean or Replace Your Grout

Let’s face it: Whether it’s on a kitchen floor or a bathroom wall, grout gets grimy over time, even with regular cleaning. Fortunately, refreshing your grout is a relatively simple and affordable project that can yield impressive results.

According to Apartment Therapy, grout that’s in poor condition is often one of the first things a potential buyer notices when they tour a bathroom.¹⁷ Fresh, clean grout, on the other hand, makes your bathroom sparkle—and that can pay off in a big way in terms of buyer’s perceptions.

If your grout is simply stained, a focused cleaning session can make a big difference. Try a specialized product or a simple mix of baking soda, water, and hydrogen peroxide.¹⁷If the grout is cracked, crumbling, or stained beyond repair, it’s time to replace it. Luckily, the right tools make that a very doable DIY project, even if it can get messy—and it’s a lot easier and less expensive than retiling.¹⁸

No time to tackle it yourself? Reach out for a recommendation of a pro who can help.

CHOOSING THE PROJECT THAT’S RIGHT FOR YOU

Embarking on home improvements can be exciting, but it's essential to choose projects that align with your goals, budget, and skill level. Whether you're preparing to sell your home or simply want to enhance its value, there are projects to suit every homeowner.

If you're unsure where to start, don't hesitate to reach out for personalized advice and recommendations. With the right approach, you can unlock your home's full potential and enjoy the rewards for years to come.

Sources:

Zillow -
https://www.zillow.com/learn/what-color-paint-front-door/
Martha Stewart -
https://www.marthastewart.com/kitchen-hardware-trends-8563764
Realtor.ca -
https://www.realtor.ca/blog/lighting-tips-to-help-sell-your-home/5375/1363
Zillow -
https://www.zillow.com/learn/roi-for-bathroom-remodel/
Forbes -
https://www.forbes.com/home-improvement/bathroom/easy-quick-bathroom-updates/
Delta Canada -
https://www.deltafaucet.ca/design-innovation/inspiredliving/6-bathroom-trends-for-2024#
Royal LePage -
https://royallepageleadingedge.ca/just-released-royal-lepages-home-renovation-roi-report/
Zolo -
https://www.zolo.ca/blog/what-home-buyers-want
Better Homes and Gardens -
https://www.bhg.com/kitchen/remodeling/planning/kitchen-upgrades-cost-value/
House Beautiful -
https://www.housebeautiful.com/room-decorating/colors/g46105350/kitchen-paint-color-trends-2024/
HGTV -
https://www.hgtv.com/design/rooms/kitchens/best-way-to-paint-kitchen-cabinets
Spruce Magazine -
https://www.sprucemagazine.ca/the-real-deal-on-curb-appeal/
HGTV Canada -
https://www.hgtv.ca/home-renovations-highest-return-on-investment-2021/
National Association of Realtors -
https://www.nar.realtor/magazine/real-estate-news/stub-for-148394
Architectural Digest -
https://www.architecturaldigest.com/story/refinishing-hardwood-floors
Houzz -
https://www.houzz.com/magazine/5-new-trends-in-flooring-for-2024-stsetivw-vs~173560747
Apartment Therapy -
https://www.apartmenttherapy.com/outdated-bathroom-features-37131219
Better Homes and Gardens -
https://www.bhg.com/how-to-regrout-tile-7554710

Mid-Year Market Update for 2024: What Buyers and Sellers Need to Know

Mon, 17 Jun 2024 14:35:22 GMT

Once again, the number one story in real estate this summer is mortgage rates. But unlike last year, when a surprise series of rate hikes from the Bank of Canada sent skittish buyers back to the sidelines, all signs now point to the opposite scenario. Instead of market-chilling rate hikes, economists now expect market-quickening rate cuts—already starting as soon as this month.¹

That means the housing market is likely to get interesting over the next few months. If fixed mortgage rates continue to drop in anticipation of a lower policy rate, more buyers are expected to show up looking for a deal before home prices take off in 2025 and 2026.²

Listings are also on the upswing and homeowners are feeling increasingly optimistic that their home values will rise over the next year, per a new Canada Mortgage and Housing Corporation (CMHC) study. So we could see more sellers-in-waiting regain the confidence to list their homes at strong but realistic prices.^3,4

With pent-up demand continuing to build, housing market activity could pick up significantly. As TD Bank Economist Rishi Sondhi noted in an interview with The Canadian Press, Canada's housing market is “akin to a bit of a coiled spring.” Often when there's a market-moving event like a rate cut, home sales and prices jump quickly.⁵

What does that mean for you? Read on for my take on this year's most important real estate news and get a sneak peek into what analysts predict is around the corner for 2024.

MORTGAGE BORROWERS SHOULD FINALLY GET SOME RATE RELIEF

After more than a year of shifting forecasts and delays, it's finally happening: the Bank of Canada's first rate cut since 2020 is here. The central bank is gearing up for two back-to-back meetings this summer to discuss monetary policy, plus three more meetings before year-end. Most experts think we'll see our first rate cut as early as June 5 or in late July.⁶

But with inflation still elevated in the U.S. and the job market showing surprising gains here at home, the total number of rate cuts we'll see in 2024 is anyone's guess.⁶ Market watchers are nervously eyeing warmer-than-expected economic data from both sides of the border, with some now second-guessing whether rates will fall as much as hoped.^6,7 Previously, many economists thought federal rates would fall by at least a point this year.⁸

Sticky inflation down south is already putting pressure on bond yields, which help determine the fixed rates lenders charge.⁷ If the U.S. economy stays hotter than expected, the Bank of Canada may be forced to delay additional rate cuts, which could further impact mortgage rates.⁹

As Bank of Canada Governor Tiff Macklem cautioned, Canada's central bank is ready and willing to cut rates before the U.S. Federal Reserve. But there's “a limit” to how much faster they can go. If too much daylight exists between the countries’ key interest rates, that could weaken the Canadian dollar and further boost inflation.⁹

What does it mean for you? If Canadian homebuyers' past behaviour is any indication, any drop in the Bank of Canada’s policy rate—even a delayed one—is likely to fuel enthusiasm and spark competition. But with lenders already pricing in the first rate cut expected this summer, it could be a while before fixed mortgage rates drop further. If you're a buyer, ask me to refer you to a mortgage broker so you can lock in a competitive rate. It's been a tough year for mortgage originations, so lenders are hungry for new business and may be more willing to cut you a deal.

PENT-UP DEMAND COULD SOON BURST INTO VIEW

With at least one quarter-point rate cut in the cards and potentially a few more on the way, the last six months of 2024 are unlikely to mirror the first half of the year.

As the Canadian Real Estate Association (CREA) noted in a recent market forecast, housing markets throughout the country have been unusually “quiet” this year thanks to still-high rates and lingering uncertainty. But that doesn't mean home sales will stay soft going forward.¹⁰

On the contrary, market activity is expected to pick up once rates recede.^2,7According to new research from BMO, aspiring homebuyers' financial readiness is looking up. But 72% say they're waiting for lower rates before they get serious about buying a home.¹¹

New federal measures could also juice the housing market by boosting demand from first-time buyers. New homebuyers, for example, can now borrow up to $60,000 from their RRSP to fund a down payment—$25,000 more than the Home Buyers' Plan previously allowed. Beginning August 1, first-time buyers with insured mortgages will also be allowed a 30-year mortgage term if they purchase new construction.¹²

Affordability constraints will still be a major sticking point, though, for many Canadian homebuyers, which could dampen sales if buyers and sellers continue to butt heads over prices.¹³

What does it mean for you? Get ready to move quickly. Increased competition almost always means faster home sales—and a need for quick decision-making. If you're a buyer, make sure your papers are in order and you have cash ready for a deposit. And if you're a seller, consider listing now before pent-up supply leads to an uptick in inventory. After all, budget-conscious homebuyers aren't the only ones who have been sitting on the sidelines for the past two years.

PROPERTY VALUES WILL CONTINUE TO INCREASE

The good news for homebuyers: Today's home prices are down significantly from where they were toward the tail end of the pandemic. The bad news: That's probably not going to last. Experts say that home prices have almost certainly bottomed out.^{14, 15}

In fact, the CMHC thinks home values could return to peak levels as early as next year before hitting an all-time record high in 2026.As the CMHC notes, home prices and sales declined significantly after rates began to jump in 2022. But in the years since, Canada's population boomed at a record pace, while many people saw their incomes and savings increase. As a result, there's now a bigger pool of potential homebuyers.¹⁶

That doesn't mean, though, that home sales will be so strong that sellers can expect the same level of price gains they saw before. As researchers at TD Bank note, rate cuts will help boost prices for now. But “affordability pressures will likely keep the gains from being even stronger.”¹⁵

The CMHC projects that lower-priced homes will enjoy the fiercest competition. But overall sales activity will be more modest than in 2020 and 2021 when rock-bottom rates made mortgage payments more affordable.¹⁶

What does it mean for you? Even with rate cuts, a typical mortgage payment will be difficult for the average household to absorb, so expect affordability issues to limit overall price growth. Sellers will need to be realistic with their asking price and negotiation tactics—especially if they're looking to close quickly. Buyers, on the other hand, might not want to wait long if they can afford to make a deal. Increased competition could lead to a bigger-than-expected price surge.

EVEN WITH MORE HOMES FOR SALE, INVENTORY WILL BE TIGHT

According to a winter survey by Dye and Durham Ltd., more than a quarter of Canadians have been holding out for a rate cut before buying or selling a home. So we could see a lot more homes go up for sale this year once rates decline.¹⁷

Already, inventory is picking up as more sellers come to market, giving new buyers more choices when comparing homes. The spring market, in particular, saw a notable jump in listings.^3,15

But even if more homes come to market this summer and fall, the total number of Canadians who want to buy a home will still surpass the number of homes available. So both the resale market and new home market are likely to remain squeezed for some time.¹⁸

In fact, TD Economics estimates that Canada will be short of more than 300,000 homes between 2023 and 2025. Adding to the problem: Housing construction continues to lag population growth and, despite some recent improvements, it is still far from catching up.¹⁸

Persistently high rates are also discouraging builders from starting new projects. So the inventory of available homes is likely to get tighter. The CMHC expects housing starts to decline in 2024 and drop even more significantly in 2025.¹⁶

What does it mean for you? With inventory increasing and many prospective homebuyers still priced out of the market, buyers who can afford it may be able to retain some bargaining power—especially for premium homes. However, total inventory is expected to remain tight, so sellers are still more likely to have the upper hand. Competition for more affordable homes will be especially steep.

I'M HERE TO GUIDE YOU

With nationwide news like rate cuts still playing a big role in today's housing market, it can be useful to get a high-level overview of what's happening across Canada. But the most important factors behind most real estate transactions are local. So on-the-ground expertise is essential.

As a local market expert, I can help you navigate your neighbourhood's housing market with ease and understand what's driving home values and sales. If you’re considering buying or selling a home, contact us for a free consultation so we can help you build a successful plan.

Sources:

The Ultimate Relocation Guide: From Finding a House to Feeling at Home

Fri, 03 May 2024 14:27:08 GMT

May is “Moving Month,” as designated by the Better Business Bureau and Canadian Association of Movers.¹ It also happens to kick off the peak moving season, which generally runs from May through September.²

According to a survey by Statistics Canada, respondents listed their top motivations for moving as “bigger or better housing” (28.0%) or “a more desirable neighbourhood” (16.8%).³ But no matter the reason, a relocation can feel stressful and overwhelming.

If you’re one of the many Canadians planning to relocate in the coming months, this guide is for you. I’ve outlined six steps to make your move easier. My hope is to alleviate some of the hassle of relocating—so you can focus on the adventure ahead!

CHOOSE A COMMUNITY

When planning a relocation, one of the first things you’ll need to decide is where you want to live. This could be as broad as an area of town, or you might narrow it down to a specific neighbourhood.

Depending on your priorities, you may want to start with communities that are close to work, friends, family and/or your preferred schools. If you commute, map out the route and check on the availability of public transportation, if you plan to use it. Then, if possible, try out the commute during rush hour to see what it’s like.

Next, it’s crucial to consider housing prices and cost of living so you don’t set your sights on an area that you can’t realistically afford. Don’t forget to look up local crime statistics to ensure the community is safe. Finally, visit any neighborhoods you’re considering to gauge the vibe and observe characteristics, like pedestrian accessibility, retail offerings, and population density.

Researching the ins and outs of various communities can be a time-consuming and sometimes difficult process, but I'm here to help! Give me a call to discuss your needs and aspirations, and I’d be happy to provide my recommendations of neighbourhoods that may be a good fit for you.

FIND YOUR NEW HOME

Once you’ve chosen an area to settle, the next decision you’ll need to make is whether you want to rent or buy a home. Renting can be a good option if you’re new to town, especially if you’re still saving up for a downpayment or you’re not ready to commit to a permanent location. Benefits include flexibility, less maintenance, and lower upfront costs.

But, if you want to avoid multiple moves—and you’re financially able—there’s no reason to delay the benefits of buying a home. Not only has homeownership been shown to increase your quality of life, but it’s also one of the best ways to protect and grow your wealth.⁴

The value of real estate will typically appreciate over time, and owners can build equity as they pay down their mortgage. Homeowners and buyers may also be able to benefit from certain tax incentives.⁵

But, perhaps most importantly, homeownership offers stability, as property owners aren’t subject to the mercy of their landlords each year. According to Rentals.ca, average asking rent prices in Canada rose nearly 30% between February 2021 and February 2024.⁶ In contrast, many homeowners enjoyed a fixed mortgage payment during that same period.

If you decide to purchase a home and you choose me to represent you, you can rest easy knowing that I will be there for you throughout the entire journey, working hard to make the experience as easy as possible. Or, if you’re moving to a new area, I can refer you to a local agent in our network who shares my commitment to client service.

For more information about buying a home and a timeline of the home buying process, reach out to request a free copy of my Home Buyer’s Guide.

SELL OR RENT OUT YOUR CURRENT HOME

If you already own a home, you’ll also need to start the process of either selling it or renting it out. I can help you evaluate your options based on current market conditions.

In many cases, my clients choose to sell so that they can use the equity in their current home to make a downpayment on their next one. But selling your home while simultaneously buying a new one can feel daunting to even the most seasoned homeowner.

Here are some of the most frequent concerns I hear from clients and my tips for addressing them:

What will I do if I sell my house before I can buy a new one?

Check out furnished apartments, vacation rentals, and month-to-month leases. You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighbourhood better.

What if I get stuck with two mortgages at the same time?

Ask me about conditions that can be included in your contracts. For example, it’s possible to add a condition to your purchase offer that lets you cancel the contract if you haven't sold your previous home. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.

What if I mess up my timing or burn out from all the stress?

Enlist support as early as possible. It's my job to guide you and advocate on your behalf, so don't be afraid to lean on me throughout the process. I'm here to ease your burden and make your move as seamless and stress-free as possible.

In addition to answering your questions, I’ll give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one. Part of that process will include a plan to maximize your current home’s sale price. I utilize a proven strategy that’s designed to achieve an efficient sale while boosting your profits.

For a thorough breakdown of the technologies and marketing activities I use to get you the most money for your home sale, ask me for a copy of my Market Edge Package.

PLAN YOUR DEPARTURE

Preparing for a move can be both exhilarating and exhausting. Fortunately, you don’t have to do everything in a day. You don’t have to do it all alone, either. When you work with me, I’ll be there every step of the way to help you navigate this process with ease. To that end, here are some of my top tips to help you plan for your departure.

If you have children, I typically advise that you start by sharing news about the move in an age-appropriate way. If possible, take them on a tour of your new home and neighbourhood. This can alleviate some of the mystery and apprehension around the move. Don’t forget to contact their current and future schools, as well, to arrange for transfer and enrollment.

Next, you’ll want to start packing. To maintain order and make unpacking easier, I recommend packing one room at a time. Clearly label each box with its contents and the room it belongs to. And remember, there’s no use taking extraneous items with you. Use this opportunity to purge or donate possessions that you no longer need.

If you will be using a moving company, start researching and pricing your options. Make sure you’re working with a reputable service, and try to avoid paying a large deposit before your belongings are delivered. Once you have a moving date scheduled, you should arrange to have your utilities turned off or, if possible, transferred into the new homeowner’s name.

Finally, if you will be leaving friends or family behind, schedule get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.

Parting with a home and community you love can be hard, so try to stay focused on the exciting opportunities ahead. Feel free to reach out for referrals to moving companies, packing services, housekeepers, or any other resources that will make your move easier. I’d love to help.

PREPARE FOR YOUR ARRIVAL

While it’s tempting to get wrapped up in the departure details, don’t forget to plan ahead for your arrival at your new home. To make your transition go smoothly, you should start preparing well before moving day. Here are a few pro tips to help you get started.

First, think about the utilities that will need to be turned on, especially essentials like water, electricity, and gas. Be sure to notify any relevant parties—banks, credit cards, subscriptions, etc.—about your change of address so you don’t miss any important bills, notices, or deliveries. You’ll also want to notify the postal service and submit a mail forwarding request.

If you plan to remodel, paint, or install new flooring, it’s often easier to have it done before you bring in all of your belongings. You may also want to have the house professionally cleaned before moving in.

Don’t forget about the items you’ll need (think toothbrush, towels, bedsheets) to make it through the first night in your new home. Designate some boxes with “Open Me First!” labels. (Pro tip: Keep a tool kit front and center for all that reassembling.)

Finally, create a list of all the restaurants you want to try and places you want to visit around your newly purchased home. Having a to-explore list keeps everyone’s spirits high and gives you starting points to settle into the neighbourhood.

If you’re relocating to my area, I can help! I offer “VIP Relocation Assistance” to all of my clients. Contact me for a list of our favourite restaurants, retailers, cleaning services, contractors, and more!

GET SETTLED IN YOUR NEW SPACE

Studies show that moving can lead to feelings of loneliness and depression.⁷ However, there are ways to combat these negative effects. Here are a few strategies to help you and your family get settled in the new space.

If you have children, start by unpacking their rooms first. Seeing familiar items will help ease their transition and establish a “safe zone” where they can hang out away from the chaos of moving day. If possible, let them have a say in how their room is decorated.

Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favourite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.

Don’t forget to take care of yourself, too. Try to schedule breaks to get out of the house and investigate your new area. If you travel by foot or bicycle, you’ll gain the mood-boosting advantages of fresh air and exercise.

You can combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship, or volunteer for a cause. Don’t wait for friends to come knocking on your door. Instead, go out and find them.

To that end, make an effort to introduce yourself to your new neighbours, invite them over for coffee or dinner, and offer assistance when they need it. Once you’ve developed friendships and a support system within your new neighbourhood, it will truly start to feel like home.

LET’S GET MOVING

While moving is never easy, these steps offer an action plan to get you started on your new adventure. With a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.

I specialize in assisting home buyers and sellers with a seamless and “less-stress” relocation. Along with my referral network of moving companies, contractors, cleaning services, interior designers, and other home service providers, I can help take the hassle and headache out of your upcoming move. Give me a call or message me to schedule a complimentary, no-obligation consultation!

Sources:

Canadian Association of Movers -
https://www.mover.net/may-is-moving-month
United International Removals -
https://www.unitedremovals.com/canada/best-time-to-move-to-canada/
Statistics Canada -
https://www.statcan.gc.ca/o1/en/plus/3333-canadians-move
Canadian Association of Realtors -
https://www.realtor.ca/blog/health-and-happiness-the-societal-benefits-of-homeownership/20531/1361
Turbo Tax -
https://turbotax.intuit.ca/tips/tax-deductions-canadian-homeowners-need-to-know-about-15718
Rentals.ca -
https://rentals.ca/national-rent-report
Psychology Today -
https://www.psychologytoday.com/us/blog/is-where-you-belong/201607/why-youre-miserable-after-move

6 Strategies to Save on Home Insurance Premiums

Thu, 04 Apr 2024 16:01:01 GMT

From extreme cold to wildfires and floods, the past few years have brought a historic number of devastating climate and weather events to Canada. In 2023 alone, unusually harsh weather and a string of natural disasters caused more than $3.1 billion in insured damages, according to the Insurance Bureau of Canada, making it the fourth most expensive weather year on record.¹

These events delivered a huge influx of home insurance claims, and analysts expect the increase in both catastrophes and claims to continue. Adding to the problem, construction labour and supply costs have risen, making it more expensive to repair affected homes. Consequently, homeowners' insurance rates have surged: In 2024, My Choice Financial reports that premiums are already up 7.66% since last year and are likely to climb further still.^2,3

In disaster-prone regions, the situation is even more challenging. According to Public Safety Canada, flooding is especially common now, accounting for roughly $2.9 billion a year in residential damages. Yet, a rising number of Canadian homes are located in areas so flood-prone that owners can't get affordable protection.^4,2

For most homeowners, comprehensive home insurance coverage is crucial for financial security—but massive rate increases can turn a once-affordable home into a financial burden. They can also pose a serious challenge for sellers. Although homebuyers who are willing to risk inadequate coverage may be able to skip optional add-ons, such as flood protection, a standard home insurance policy is still required for most mortgages. In some hard-hit regions, we’re also seeing homes sit longer on the market or decline in value because climate risks are higher.^5,6

But don’t panic! While these broader trends may be out of your control, there’s still plenty you can do to save. Here are our top six strategies to slash insurance premiums while maintaining the protection you need.

SHOP AROUND

Getting multiple quotes is a smart move for many major purchases, including home insurance. I recommend reviewing at least three estimates before you commit to a policy. You can get quotes either by reaching out to insurers directly or by working with an independent insurance broker.⁵ You’ll need to provide detailed information about the property you’re insuring and your claims history.

Make sure you read policies carefully before you choose. Sometimes, a policy can look like a better deal at first glance but turn out to have important coverage gaps. Be sure to consider how much the policy will pay out to repair or replace your home and review caps on personal possession and liability claims. It’s also smart to read reviews from policyholders (Trustpilot is a good place to start) and ratings published by organizations like the Better Business Bureau and J.D. Power.

For help choosing the right policy, reach out to me for a list of trusted insurance professionals.

INCREASE YOUR DEDUCTIBLE

The size of your deductible—which is the amount you pay before your insurance coverage kicks in on a claim—is a major factor in your insurance cost.

A low deductible, such as $500, comes with higher premiums, while a higher deductible, like $2,500 or even $5,000, costs less on a monthly basis. In some cases, you may be able to customize your insurance further by designating a different deductible for add-on coverage.

If you are confident that you have enough in savings to cover that initial outlay if needed, choosing a higher deductible can help you save significantly over the long term. According to Ratehub, raising your deductible from $500 to $5,000, for example, could save you an estimated 15% each year.⁷

BUNDLE MULTIPLE TYPES OF INSURANCE

Insurers want to get as much of your business as possible, so most offer significant discounts if you bundle your home and auto insurance, meaning that you package the two policies together. With some insurers, you can get even higher savings by bundling more than home and auto—RV, boat, jewelry, and life insurance are potential options to consider.

According to Ratehub, insurers typically offer customers who bundle home and auto insurance up to 25% or more in savings on monthly premiums.This approach also has other advantages: It cuts down on your paperwork, and in some cases—like if a storm damages both your home and car—you may be able to pay just one deductible instead of two when you file a claim.⁸

However, before you sign on the dotted line, remember strategy #1 and be sure to shop around. In some cases, bundling isn’t the cheaper option, and bundling deals vary between companies. It’s also critical to carefully check that the bundled coverage offers everything you need.

ASK ABOUT AVAILABLE DISCOUNTS

Did you know that being a non-smoker might qualify you for a home insurance discount?⁹ Some insurers offer some surprising incentives for policyholders who pose a statistically lower risk of filing a claim. In the case of non-smokers, that’s because of the decreased risk of a home fire.

Some carriers also offer discounts to first-time homebuyers, “mature” homeowners, or affiliated group members, such as college alumni or union workers. Sometimes, you can also save by upgrading your home's protective systems, paying off your mortgage, or paying your premiums for a full year upfront.⁹

Since available discounts vary significantly between insurers, the best strategy is to simply ask a representative for the full list of available discounts so you can see what cost savings might be available to you.

AVOID MAKING SMALL CLAIMS

Worried that your premiums will rise significantly in the future? Try to avoid making a claim unless truly necessary. Many insurers offer discounted rates to policyholders who go a certain number of years without filing a claim, and filing multiple claims often results in big increases. If you file too many, you may even risk nonrenewal of your policy.^10,11

Since the cost of even a small premium increase can add up significantly over time, if you have minor damage to your home—for example, if a few shingles blew off your roof in a windstorm—it may be a wiser long-term financial decision to pay out of pocket instead of filing a claim.

If the cost of the repair is less than your deductible, it never makes sense to file, and if it’s just slightly above your deductible, it’s also usually best to pay for the repairs yourself. Additionally, always be sure to review your policy before you make a claim. Even claims that are denied can count against you, so it’s not worth filing if the damage is clearly excluded from coverage.¹¹

If you find yourself in this situation, feel free to reach out for a list of reasonably-priced professionals who can help with home repairs.

BE STRATEGIC ABOUT HOME IMPROVEMENTS

Insurance premiums alone may not be the deciding factor for a home improvement project, but it’s important to know how renovations could impact your rates—for better or worse.

For example, some upgrades and repairs can reduce your premiums by making your home safer or less prone to certain types of damage. These include:¹⁰

Upgrading your electrical system
Updating your plumbing
Installing a monitored security system
Investing in a sewer backup valve and sump pump
Replacing the roof

On the other hand, some upgrades can raise premiums significantly, either because they increase the value of your home (and therefore the cost to replace it) or because they pose a hazard. These include:¹²

Installing a swimming pool or other water features
Building an extension or expanding your living space
Upgrading materials, like flooring or countertops
Adding a fireplace or wood stove

Whether or not your planned renovations are on either of these lists, it’s wise to inform your insurer about changes you make to your home—otherwise, you may risk gaps in coverage. And you’re always welcome to check with me before you begin any home improvement project to find out how it could impact the value and resale potential of your home.

BOTTOMLINE: Protect Your Investment Without Sacrificing Enjoyment of Your Home

Getting the coverage you need for financial security without overpaying can be a tricky balance, especially in today’s environment. But remember, while it’s important to find the best deal you can, home insurance isn’t an area to skimp on.

For advice on your specific risks and the type of coverage you need, I recommend consulting with a knowledgeable insurance professional. I'm happy to connect you with a trusted adviser in our network. And if you’re considering a home renovation, feel free to reach out for a free consultation on how it might affect your property value (and your premiums).

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, insurance, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

Insurance Bureau of Canada -
https://www.ibc.ca/news-insights/news/severe-weather-in-2023-caused-over-3-1-billion-in-insured-damage
MoneySense - https://www.moneysense.ca/spend/insurance/home-insurance/how-climate-change-affects-home-insurance/
My Choice Financial - https://www.newswire.ca/news-releases/home-insurance-rates-increase-7-66-in-canada-in-2024-876966380.html
Public Safety Canada -
https://www.publicsafety.gc.ca/cnt/rsrcs/pblctns/2023-nrp-pnr/index-en.aspx
Nerdwallet Canada -
https://www.nerdwallet.com/ca/mortgages/what-is-home-insurance
Waterloo Climate Institute - https://uwaterloo.ca/climate-institute/news/homes-sell-82-cent-less-after-catastrophic-floods
Ratehub.ca -
https://www.ratehub.ca/blog/how-home-insurance-deductibles-work/
Ratehub.ca -
https://www.ratehub.ca/insurance/home-and-auto-bundle
LowestRates.ca - https://www.lowestrates.ca/resource-centre/home-insurance/12-home-insurance-discounts-can-help-you-save-money
MoneySense -
https://www.moneysense.ca/spend/insurance/how-to-get-lower-home-insurance/
Rates.ca -
https://rates.ca/guides/home-insurance/claims
CREA -
https://www.creacafe.ca/can-housing-upgrades-affect-insurance/

Downsize Your Home, Rightsize Your Life: How to Choose the Ideal Smaller Home

Mon, 04 Mar 2024 14:31:02 GMT

When you've lived somewhere for many years, it can be tough to say goodbye. But if you (or a loved one) currently have a home that is bigger than necessary or is too high maintenance, it may be time to trade unused square footage for a smaller, more manageable space.

Take it from the downsizers who’ve been there: Although living small might require some adjustments, it can also be liberating––especially if you're in a stage of life where past responsibilities have given way to new possibilities and adventures.

In fact, many downsizers report feeling invigorated by the change, according to real estate journalist and author Sheri Koones. “It scares people to think of moving into a smaller space,” said Koones to the Associated Press. “But every single person I interviewed who has made the transition says they are so happy they did.”¹

The key is to find somewhere you can live well and move around comfortably, without feeling overly restricted. If you like the idea of aging in place or are already in your golden years, you may also want to look for signs that a new home can conveniently age with you.

With that in mind, I recommend focusing your search around three key factors: desired lifestyle, optimal design, and long-term accessibility. Read on for specific tips, then call us for a free consultation. I can help you identify the types of homes that are best suited to living large with less.

Do you have a loved one whose housing needs have changed?
Share this information to help start a conversation about the benefits of downsizing.

DESIRED LIFESTYLE

The best part of downsizing is the lifestyle you unlock when you trade square footage for convenience. With fewer chores and home maintenance tasks to worry about, you can instead channel your energy into other pursuits.

For example, instead of spending your afternoons working in the yard or cleaning, you can catch up on the news, read a bestseller, start a new craft project, or pursue other hobbies. You may even be able to travel or spend more time with friends and family.

Research shows that individuals over the age of 65 report more life satisfaction when they have the opportunity to spend time around children, talk with friends, socialize in community centers, volunteer, or engage in hobbies. But that can be hard to do regularly when you've got a home that needs constant attention or you live far from your community.²

As you compare potential homes, keep in mind the type of lifestyle you envision. Do you plan to travel? If so, a home with extra security, such as a condominium or gated community, may give you some welcome peace of mind. Or do you plan to have friends and family stay overnight? In that case, you may want to look for a floor plan with flex space or a property that has access to separate guest suites.

Alternatively, a senior community that offers catered meals and housekeeping may be a better choice if you or a spouse need extra support.

Action item: Grab a pen and take some time to envision what your ideal future might look like. Write down the activities and hobbies you hope to add to your life or continue with going forward, as well as the chores and responsibilities you'd love to drop. We can use those answers to help shape your house hunt.

OPTIMAL DESIGN

Even though your new home will be smaller, that doesn't mean it has to feel cramped. As Koones explains, “The key is to have a home that is efficiently designed, both in terms of energy use and in terms of space.”¹

Look for features that can help make a space feel bigger, like high ceilings, large windows, and an open layout.

Built-in shelving that extends all the way to the ceiling can also make a small room feel more expansive by helping to draw the eye upward. The same goes for highly placed window treatments and striped or mural-style wallpaper, says interior designer, Kati Greene Curtis. “You’ll feel like you’re walking into the scene,” said Curtis to the Washington Post.³

Efficient layouts with flexible, multi-purpose rooms and few, if any, hallways work especially well for small-scale living. You can also limit dead space in a home by steering clear of layouts with awkward corners, unusable nooks, and other space-eating design elements.

In addition, look for features that support a simpler, lower-maintenance lifestyle, such as easy-care floors, durable countertops, and bare walls with little, if any, crown molding.

Don’t write off a home too soon, though, if it feels narrow or congested because of outdated design or poor staging. Cosmetic issues that visually shrink a space are often easy to fix.

For example, you can instantly make a room feel bigger just by painting it a lighter shade. Adding mirrors and swapping out heavy curtains for sheer ones can also be effective. Plus, utilizing multipurpose furniture with hidden storage is a great way to maximize space.

Action item: Make a note of your must-keep furniture and other items. Then pull out a measuring tape and write down the dimensions. Once it's time to visit homes, we'll have a more accurate sense of what will fit and how much space you’ll need.

To get your creative juices flowing, you may also want to flip through some design magazines that specialize in compact living or catalogs that feature space-saving furniture and accessories. If you give me a list of your favorite features, I can use it to pinpoint homes that are a good match.

LONG-TERM ACCESSIBILITY

Buying a home that you can age well in can be a great way to boost your health prospects and happiness. According to the U.S. Department of Housing and Urban Development (HUD), homeowners who age in place instead of in an institutional environment not only save money over time, they also enjoy greater health and emotional benefits.⁴

Aging in place is also popular. According to survey findings from the National Poll on Healthy Aging, the vast majority of adults between the ages of 50 and 80 would prefer to age in their own homes.⁵

But even though many adults want to age in place, only 34% of surveyed adults currently live in a home with the features to make it possible.⁵

If you're already in the second half of your life, then it's smart to prioritize accessibility now, even if you're highly mobile.

Choosing an accessible home will improve your odds of staying put for longer. Plus, you never know when you might need an accessible light switch, handrails in the bathroom, or a seat in the shower, says Sheri Koones. “Yes, older people with disabilities need them, but even younger people break a leg skiing, or have situations where they want a barrier-free shower.”¹

As you consider your options, try to imagine what your needs might be as you get older and be proactive in identifying potential obstacles, recommends the National Council on Aging (NCOA).⁶

For example, a single-level home or one with wide enough stairs for a stair lift or access to an elevator may be a more practical choice than a home with lots of narrow stairs. Alternatively, a home with at least one ground-level bedroom and bathroom may also work well for you.

Consider your needs outside the home, as well: If you frequently visit the doctor, grocery store, or community center, for example, then you may benefit from choosing a property nearby.

Action item: Review the checklist below, adapted from the National Institute on Aging’s home safety worksheet, or download the full version from the agency’s website.⁷ Highlight the items that are most important to you. We can reference these guidelines as we consider potential homes and suggest ways to adapt a property to meet your current or future requirements.

HOME SAFETY CHECKLIST ⁷

If a walker or wheelchair is needed, can the entrances to the house be modified — perhaps by putting in a ramp to the front door?
Are there any tripping hazards at exterior entrances or inside the house?
Are the hallways and doorways wide enough to accommodate a wheelchair if needed?
Does the home have at least one ground-floor bedroom and bathroom?
Are there any staircases, and if so, could they accommodate a stair lift?
Is the house well-lit, inside and out, particularly at the top and bottom of stairs?
Could handrails be installed on both sides of the staircase?
Is there at least one stairway handrail that extends beyond the first and last steps on each flight of stairs?
Are outdoor steps sturdy and textured to prevent falls in wet or icy weather?
Are there grab bars near toilets and in the tub or shower?
Have a shower stool and hand-held shower head been installed to make bathing easier?
Is the water heater set at 120° F to avoid scalding tap water?
Are there safety knobs and an automatic shut-off switch on the stove?
Have smoke and carbon monoxide alarms been installed near the kitchen and in all bedrooms?
Are there secure locks on all outside doors and windows?

BOTTOMLINE

You don't have to compromise on comfort to downsize successfully. I can help you strategize your next move and identify the best new home for you—whether that's a smaller home for rent or another one to call your own. I take pride in offering a full-service real estate experience and assisting my clients through all stages of the real estate journey. And I’ll go the extra mile to maximize your current home's sales price so that you’re set up for financial security.

Sources:

Associated Press (AP) -
https://apnews.com/article/lifestyle-f094372b46bae82020c174907eb953c0
Healthcare (Basel) -
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10671417/
Washington Post -
https://www.washingtonpost.com/home/2023/02/07/make-small-room-appear-larger/
HUD User -
https://www.huduser.gov/portal/periodicals/em/fall13/highlight2.html
National Poll on Healthy Aging - https://www.healthyagingpoll.org/reports-more/report/older-adults-preparedness-age-place
National Council on Aging (NCOA) - https://www.ncoa.org/adviser/medical-alert-systems/downsizing-for-aging-in-place/
National Institute of Health (NIH) - https://www.nia.nih.gov/sites/default/files/2023-04/worksheet-home-safety-checklist_1.pdf

Upgrade Your Home With These 2024 Design Trends

Fri, 02 Feb 2024 14:57:17 GMT

One of the best parts of owning a home is the freedom to make it truly your own with design choices that reflect your personality and lifestyle. Whether you lean toward contemporary design or a farmhouse aesthetic, your home is your canvas.

Even so, it’s always smart to think about the long-term impact those decisions might have on your home’s value. Choosing over-personalized or unpopular materials and finishes could make your home less appealing to future buyers. And selecting out-of-style or overly-trendy elements could cause your home to feel dated quickly.

To help inspire your design choices, I’ve rounded up some of the top trends I'm watching in 2024. Keep in mind, not all of these will work well in every house. If you plan to list or renovate your property, give me a call. I can help you realize your vision and maximize the impact of your investment.

Spa-Like Bathrooms

We could all use a little more relaxation in our lives—so why not bring the spa into your home? In 2024, more homeowners will remodel their bathrooms to turn them into personal oases.^1,2

If you’re undertaking a renovation, consider upgrading fixtures and materials. Handmade tile and custom cabinetry can add a touch of style and luxury. Trade stark whites for warm neutrals to create a more relaxed feel—think light wood tones, creams, and beiges.³Complete the look with soft ambient lighting from a backlit mirror or pair of decorative sconces.^2,3

If you want to maximize the mind-body benefits of a relaxing bathroom (and have the budget to spare), you might consider installing a steam shower, infrared sauna, or cold plunge tub. Not looking to spend as much? Even minor upgrades like a massaging showerhead or heated towel bar can add some pampering to your morning routine.³

But remember, if you’re modifying your bathroom, it’s always wise to work with experienced and licensed professionals to avoid water damage that could lead to costly repairs. I can refer you to a trusted contractor for help.

Photo by - Browse bathroom photos

Maximalist Decor

In 2024, maximalism is back in vogue, contrasting the neutral aesthetic that dominated design in recent years.⁴ While maximalism can be summed up as “more is more,” there’s nothing sloppy or cluttered about this look. Instead, it’s all about intentional curation.⁵

Hallmarks of maximalist style include rich and saturated colours, bold wallpaper, statement rugs and furniture, and lots of art. And forget matching—maximalist interiors often include plenty of contrasting colours, textures, and patterns selected to complement one another.⁵

If you’re trying to embrace maximalism on a budget, check out thrift stores. They’re often a great place to find unique furniture, colourful rugs, and interesting art or collectibles. Before you invest in rolls of vintage wallpaper, though, it’s important to note—if you plan to sell your home in the near future, the maximalist look won’t appeal to every buyer.

I typically advise sellers to remove clutter and personal items to help buyers imagine their own future lives within the home. Sometimes, that means repainting or redecorating in a more neutral palette. Of course, this shouldn’t stop you from embracing your own style now—just be aware that you may need to walk back your aesthetic prior to selling. I can advise you when the time comes.

Photo by Noz Design - Search living room design ideas

Japandi Style

Not quite ready to embrace maximalism? Japandi style, which blends Japanese and Scandinavian influences, offers a more subdued approach that still has plenty of character. The look dates back about 150 years to a time when many Scandinavian designers were travelling to Japan for inspiration.⁶

Japandi style brings together clean lines, simplicity, and a focus on natural elements and light. It emphasizes the beauty in imperfection, or “wabi sabi,” and a deep connection to Mother Earth. And like Scandinavian decor, the look prioritizes comfort and a sense of sanctuary in the home.⁶

Interested in playing with Japandi? Common features include calming colour palettes and organic materials like raw wood and bamboo. Try softening harsh edges with softer textures, like cozy blankets and ceramic pieces.

The look also minimizes clutter, but that doesn’t mean you need to be a minimalist. Instead, Japandi style embraces storage solutions like baskets, folding screens, and sofas with built-in storage to give everything a place.⁷ If you’d like some help implementing Japandi-style organization in your home, contact me for a list of recommended professionals.

Photo by Eric Miller Interiors - Discover bedroom design inspiration

Mixed Metals

Mixing metals used to be a “no-no.” But in 2024, it’s definitely a “yes.”

According to designers, mixing the colours and finishes of metal fixtures and hardware can bring visual interest to a room—as long as you go about it the right way.^1,8

The most important rule to keep in mind is to stay away from near matches, like brass and gold—that’s more likely to look accidental than intentional. Instead, go for bold contrast: Think polished nickel and matte black.⁸

Some designers recommend using each metal at least twice in a room to make it look cohesive. Another good rule of thumb is to stick to two types of metals in a small room and two to three in a larger space.⁸

Finally, you might think about playing with undertones (brass is warm, chrome is cool) to change the “temperature” of a room. And don’t be afraid of a little shine—many designers predict that a retro, high-polished look will replace matte finishes in 2024.⁹

Want some help sourcing fixtures and hardware in a variety of finishes? Reach out for a list of my favourite retailers.

Photo by Jessica Koltun Home - More bathroom photos

Wood Cabinetry And Accents

The all-white kitchen has been ubiquitous in recent years. But in 2024, classic wood cabinetry is back in a big way.¹⁰In fact, industry professionals surveyed by the National Kitchen & Bath Association predict that wood cabinets will be more popular than white in the next three years.¹¹

Natural wood tones offer a sense of warmth and natural beauty. And today’s cabinets aren’t anything like the heavy, dated versions of the past. Instead, light to medium versions—like white oak and walnut—and warmer undertones are trending.¹²

The addition of wood-grain accents to painted kitchen cabinets—like with a contrasting island or range hood—is another popular option. And wood continues to be a favoured choice for flooring. A recent survey found that 40% of homeowners opted for either hardwood or engineered wood when renovating their kitchen floors.¹³

You can also expect to see more wood in bathrooms in 2024. According to Houzz, last year, wood vanities surpassed white in popularity for the first time in recent years, and designers expect the trend to continue.¹⁴While white countertops and walls still dominate bathrooms, a wood-grained vanity brings a relaxed, organic element into the space.

Dreaming about new cabinets or hardwood floors? I’d be happy to share a list of recommended trade professionals who can help.

Photo by Great Rooms Building Group - Look for kitchen pictures

Timeless Renovations

In its latest Kitchen Trends Study, Houzz found that “nearly half of homeowners (47%) opt for a timeless design as a sustainable choice during renovations.” Respondents cited long-term cost-effectiveness and environmental consciousness as their main motivators.¹⁵

In a rapidly changing, technology-driven world, it’s no surprise that homeowners want a nurturing space with lasting appeal—especially if they plan to stay in their homes for years to come.¹⁴

Traditional materials and quality craftsmanship lie at the core of timeless design, which some designers are calling “quiet luxury.”¹⁶Think of enduring classics, like hardwood floors, hand-crafted tiles, and marble countertops.¹⁴ A timeless colour palette will also often include warm neutrals and muted shades of blue and green.¹⁷

If you’re thinking about remodelling, it’s wise to incorporate as many classic elements as you can. These stylistic choices tend to hold up well over time, which can prolong the life of your investment and make it easier to sell your home down the road. If you’d like advice on an upcoming project, contact me for a free consultation.

Photo by REFINED LLC - More entryway photos

BEAUTIFY YOUR HOME WHILE BOOSTING ITS VALUE

If you’re thinking about making design changes—whether that’s repainting or a full remodel—it’s important to be informed about how your choices could impact your home’s resale potential. Buyer preferences can vary significantly based on your home’s neighbourhood and price point. Before you begin your project, reach out to discuss your plans and how they could impact the value of your home.

Sources:

HGTV -
https://www.hgtv.com/design/decorating/design-101/2024-home-and-garden-design-trends
The Spruce -
https://www.thespruce.com/2024-design-trends-8411457
The Spruce -
https://www.thespruce.com/2024-bathroom-design-trends-8380169
Calgary Real Estate Board - https://www.creb.com/News/CREBNow/2024/January/interior_design_trends_2024/
Homes and Gardens -
https://www.homesandgardens.com/interior-design/maximalist-decor-ideas
The Spruce -
https://www.thespruce.com/japandi-design-4782478
House Beautiful -
https://www.housebeautiful.com/room-decorating/a45851530/japandi-interior-design-style/
The Spruce - https://www.thespruce.com/4-rules-designers-say-you-should-follow-or-ignore-when-mixing-metals-in-a-room-5199031
The Spruce -
https://www.thespruce.com/2024-lighting-trends-8365056
Toronto Sun -
https://torontosun.com/life/homes/2024-trends-youll-see-everywhere
Good Housekeeping -
https://www.goodhousekeeping.com/home/decorating-ideas/a45576463/wood-kitchen-cabinet-trend-2023/
Better Homes and Gardens -
https://www.bhg.com/2024-kitchen-trends-840656
Houzz -
https://www.houzz.com/magazine/10-kitchen-trends-to-watch-in-layouts-features-and-more-stsetivw-vs~165050822
Houzz -
https://www.houzz.com/magazine/28-home-design-trends-that-will-define-2024-stsetivw-vs~172317389
Houzz -
https://www.houzz.com/magazine/2023-u-s-houzz-kitchen-trends-study-stsetivw-vs~164970160
Better Homes and Gardens -
https://www.bhg.com/quiet-luxury-home-trend-7554026

Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024

Tue, 02 Jan 2024 00:49:00 GMT

Home buyers surprised everyone last spring when they shook off higher borrowing costs and showed up to new home sales in droves. The surge in competition for a still-limited pool of properties helped home prices pop and renewed sellers' confidence in their ability to get top dollar for a home. But experts caution that the 2024 housing market could unfold quite differently, especially if Canada's economy experiences another dip later this year.¹

Ever since the Bank of Canada hiked interest rates last summer, home sales have dropped in many areas as buyers and sellers alike struggle to close deals.² Canada’s economy has also softened, prompting some home buyers to move forward more cautiously.³ But with the Bank of Canada now widely expected to cut rates in the spring, competition could reheat quickly.⁴

Not every neighbourhood is cooling at the same rate either, making the familiar adage that “all real estate is local” especially relevant.⁵ With a market this fluid, the home buyers and sellers with an edge will be those who proactively leverage a real estate agent’s on-the-ground expertise and stay flexible so that they can quickly adapt to hyper-local changes.

What does that mean for you? Read on to learn more about the current state of the Canadian housing market, the potential opportunities for buyers and sellers, and economists’ predictions for the coming year.

MORTGAGE RATES MAY DROP SOONER THAN EXPECTED

The best news we've got incoming for 2024? The extra high mortgage rates that have weighed heavily on Canadian real estate for some time may finally be headed south.

Citing a global economic slowdown and improving inflation, policymakers at the Bank of Canada opted to leave the central bank's key rate unchanged in December after pushing rates to a 22-year high last summer.⁶ The feds cautioned that another rate hike was still possible in 2024. But now that Canada's economy is slowing down, market watchers widely predict that the central bank is more likely to cut rates instead—possibly as soon as March.⁷

Fixed mortgage rates could slide even more quickly. Market expectations have a big impact on bond yields. So, if traders expect a rate cut from the feds, bond yields are likely to drop even further. “It's all about expectations,” said Ratehub CEO James Laird to Global News.⁸

Already, the bond market has cooled significantly since autumn. As a result, Canadians with great credit may now be able to secure rates closer to 5% than 6%—and possibly even lower.⁹

If rates fall as expected, that could have an energizing effect on the housing market. As mortgage expert Clay Jarvis told Nerdwallet in 2023: “If fixed rates dip below 5% next year—and we’re not in a full-blown recession—it’s likely Canadians will return to the market fairly enthusiastically. The pent-up demand and FOMO will be too strong for many to resist.”¹⁰

What does it mean for you? If you're a prospective home buyer, declining mortgage rates could give you the opening you've been waiting for to purchase a home with a more affordable monthly payment. And if you buy before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask me to refer you to a mortgage broker who can negotiate a competitive mortgage rate.

Sellers also have reason to celebrate buyers' lower interest rates: As the barriers for entry to the housing market decline, sellers could enjoy more or better offers. Reach out to discuss how I can help you maximize your home’s sales potential.

DESPITE LOWER RATES, A WEAKENING ECONOMY COULD CHILL DEMAND

As pent-up demand continues to build, surveys show that Canadians are still deeply interested in real estate. For example, a recent survey by Dye and Durham found that a growing number of Canadians are thinking seriously about buying a home in 2024.¹¹

But with interest rates so high, buyers with typical household incomes often need either a substantial amount of cash saved or a lot of home equity to buy at today's prices. And the softening economy may be shaking buyers' confidence. According to the Conference Board of Canada, Canadians are feeling more pessimistic about their employment and finances.¹²

Meanwhile, many home sellers remain stuck in the recent past and are slow to let go of outdated prices. As a result, home buyers and sellers in many regions are locked in a persistent stalemate and the volume of home sales has dropped considerably.⁵

According to the Canadian Real Estate Association (CREA), new listings are now outpacing purchases in some of the country's biggest housing markets as market loosening spreads.¹³ However, the softening is uneven, with some areas still highly competitive.⁵

As rates continue falling, experts predict that demand for housing will increase, helping fuel a tighter market. But a slowdown in Canada's economy could complicate that scenario. “We now think that most major markets will experience softer sales and prices through the spring months, as weakness has spread significantly,” forecast economists at Desjardins.¹⁴

What does it mean for you? The days of easy home sales with minimal, if any, prep work are long gone––at least until the market rebounds. Instead, home sales are more likely to take some legwork and planning to stand out from the competition. I can help you maximize your home’s appeal to attract serious buyers.

Home buyers, on the other hand, will have a distinct advantage in the coming months––especially if they jump into the market early while competition is limited. Call me for a consultation so I can help you plot your strategy.

HOME PRICES WILL FACE HEADWINDS, BUT MAY CLIMB WITH LOWER RATES

Home buyers who have faced both persistently high prices and historically high rates may finally get a much-needed break this year.

With Canada's economy cooling, experts are now actively revising their pricing forecasts. For example, economists at TD predicted in November that home prices would drop 10% in the first quarter of 2024 compared to the third quarter of 2023––twice what they had previously forecast.¹⁵

As sales dwindle, the home buyers who are still around “are taking advantage of their stronger bargaining position,” said economists from RBC. “They’ve successfully extracted price concessions from sellers.” As a result, the MLS Home Price Index is slipping.¹⁶

Analysts still expect home prices to remain higher than they were before the pandemic. However, fewer sales amid rising levels of inventory could dampen prices in some regions.¹⁶In fact, eagle-eyed home buyers may find the best bargains in previously hot neighbourhoods that had overheated amid frenzied competition.

But with Canada’s historic supply crunch still ever-present, home buyers who wait too long to score a deal could wind up settling for a bigger mortgage in the future. As CIBC's Tal put it: “A year to two years from now when things will be back to normal—and they will be back to normal, with one million newcomers and non-permanent residents—guess what will happen? The supply will not be there, the demand will be there. The market will be crazy.”¹⁷

What does it mean for you? Homeowners with a property to sell may want to put it on the market sooner than later while there are relatively few homes for sale. I can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.

Meanwhile, savvy buyers with an eye for opportunity will be thrilled to know that the affordability challenges that have made home buying so difficult are expected to ease significantly. In fact, there could be a brief window when mortgage rates and home prices are both on the decline, giving home buyers who are ready to pounce a rare opportunity. Contact me if you’re ready to begin your home search.

BUYERS SHOULD HAVE MORE CHOICES, BUT A SUPPLY SHORTAGE WILL PERSIST

Home buyers who are eager for options should have more homes to choose from this year than they did in 2023. The share of existing homes for sale is already up in many regions as new listings outpace purchases, and more inventory could be added to the market in the coming months.¹³

Many sellers out there have been sitting on the sidelines, waiting for rates to fall or for the market to pick up. If a greater share of those sellers decide they can no longer wait, the number of resale homes on offer could quickly increase.

In addition, a growing number of Canadian mortgage holders are expected to experience some payment shock in the coming year as they renew with rates that are several points above their current rates.¹ If more homeowners then default on their loans or choose to list because they can no longer afford their monthly payments, that could also lead to an uptick in homes for sale.

But given Canada's severe housing supply crunch, the chances of a market oversaturation are low. As economists at TD Bank note: “Canada could be short over 300,000 housing units from 2023-2025 as population growth collides with a slower pace of homebuilding.”¹⁸

What does it mean for you? With the market cooling this winter, there's more supply opening up. In the short term, buyers who can afford to jump quickly should benefit from this winter's temporary buyer's market. Contact me to discuss your goals and budget, and I can help you make an informed decision about the right time to buy.

While sellers will continue to benefit from the overall supply shortage, they should be prepared for increased competition. I can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers.

WE'RE HERE TO GUIDE YOU

While national real estate forecasts can give you a “big picture” outlook, real estate is local. As a local market expert, I know what's most likely to impact sales and drive home values in your neighbourhood. As a trusted partner in your real estate journey, I'll keep my ear to the ground so that I can guide you through the market's twists and turns.

If you’re considering buying or selling a home in 2024, contact me now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals.

Sources:

Financial Post -
https://financialpost.com/news/economy/canada-mortgage-math-means-crisis-looming
Financial Post -
https://financialpost.com/news/canada-housing-market-sales-prices-fall-further
Global News -
https://globalnews.ca/news/10068567/statistics-canada-jobs-report-oct-2023/
Canadian Mortgage Trends - https://www.canadianmortgagetrends.com/2023/12/bank-of-canada-preview-rate-hold-expected-as-attention-shifts-to-rate-cuts/
Global News -
https://globalnews.ca/news/10098594/canada-housing-market-home-sellers-fall-2023/
Bank of Canada -
https://www.bankofcanada.ca/2023/12/fad-press-release-2023-12-06/
The Globe and Mail - https://www.theglobeandmail.com/business/article-bank-of-canada-interest-rate-live-december/
Global News -
https://globalnews.ca/news/10142334/bond-yields-canada-mortgage-interest-rates/
Canadian Mortgage Trends - https://www.canadianmortgagetrends.com/2023/12/mortgage-rates-under-5-theyre-coming-back-as-lenders-slash-fixed-rates/
Nerdwallet -
https://www.nerdwallet.com/ca/personal-finance/financial-trends-that-could-shape-2024
Dye and Durham - https://dyedurham.ca/new-data-shows-canadians-remain-concerned-about-looming-recession/
Conference Board of Canada - https://www.conferenceboard.ca/focus-areas/canadian-economics/housing-market-update/
CREA - https://www.crea.ca/media-hub/news/canadian-home-sales-see-downward-trend-continue-in-october/
Desjardins - https://www.desjardins.com/en/savings-investment/economic-studies/canada-housing-outlook-nov-2023.html
Global News -
https://globalnews.ca/news/10110607/canada-real-estate-td-housing-price-forecast/
RBC -
https://thoughtleadership.rbc.com/ontario-leads-canadas-housing-market-cooldown/
RENX -
https://renx.ca/interest-rates-are-coming-down-soon-benjamin-tal
TD Economics -
https://stories.td.com/ca/en/article/canada-housing-supply

REAL ESTATE MARKET REPORT - APRIL 2023: TORONTO REGION

Thu, 18 May 2023 18:49:00 GMT

How to Become a Homeowner on a First-Time Buyer’s Budget

Mon, 01 May 2023 13:55:23 GMT

It's not easy being a first-time home buyer right now. At the end of last year, housing affordability hit an all-time low.¹ Additionally, mortgage rates have risen significantly since 2021, while inventory remains tight for many property categories, but especially for starter homes. Even lower-priced condos are harder to snag these days, as investors and downsizers muscle out first-timers by offering stronger, often cash-heavy bids.²

As a result, many first-time home buyers are finding that they need to get creative to afford a home or risk renting for longer than they planned. If you, too, are struggling to afford homeownership, here are some workarounds to consider as you plot your first home purchase.

1. Try House Hacking

“House hacking” is a real estate investment strategy in which participants use their homes to generate income in order to offset their expenditures.

For example, renting out a basement apartment or accessory dwelling unit (ADU)—such as a detached garage that's been outfitted with a washroom and small kitchen—counts as house hacking. So does splitting housing costs with a roommate or converting a part of your home into an Airbnb.

House hacking isn’t new. But, it’s grown in popularity as a new crop of digital platforms has entered the market and made it easier than ever for homeowners to generate income from their property.

In some cases, house hacking may make it possible for you to qualify for and afford your first home. A lender, for example, may approve you for a larger mortgage if you purchase a home with immediate income potential, such as a legal duplex or a property with a secondary suite that has a kitchen and full washroom.³

In addition, house hacking could help you pay your mortgage once you move in. Here are just a few of the ways you could use your home to earn some extra cash if your neighbourhood or municipality allows it:

Offer paid parking in your driveway on a site like CurbFlip or SpotHero.
Rent out your swimming pool for a few hours on Swimply.
Make your home available for photoshoots or events on Giggster or Peerspace.
Turn your backyard into a pay-by-the-hour dog park on Sniffspot.
List your garage space on Kijiji.

But before you make plans to house hack, make sure you fully understand an area's bylaws and homeowner restrictions. I can help you find a property with income potential in a neighbourhood with more flexible rules or less restrictive zoning.

2. Team Up With Friends or Family

If you aren't wild about the idea of welcoming strangers to your home, you may want to consider co-purchasing with a friend or family member instead. This unconventional housing arrangement is also growing more popular as friends and family members cope with higher living costs by pooling resources.

According to Statistics Canada, multigenerational households in Canada have nearly doubled since 2001. Meanwhile, the number of households shared by roommates has grown even more rapidly, climbing by more than 50% during the same period.⁴

Arrangements can be customized to fit your circumstances. For example, you could purchase a home and then rent a portion of it to a loved one. Or you might consider co-buying a home with friends or family members so that you can step onto the property ladder and start building equity together.

Co-ownership could work out especially well for you long-term if it helps you to buy a home that's bigger, has more investment potential, or is located in a high-demand area and so appreciates at a faster rate. Plus, you'll get to see your loved ones more often and enjoy the coziness of shared living with people you like having around.

On the other hand, sharing a big financial responsibility, like a mortgage, with friends or family could get messy—especially if you don't create a clear-cut co-ownership agreement beforehand that outlines your mutual expectations. So plan carefully before you proceed.

In addition, you may need to rethink the type of home you pursue. For example, a smaller home might be cheaper, but do you really want that much togetherness all the time? I can help you set priorities and search for a suitable property.

3. Tap Your Network for Help With Funding

Another established method for affording a first home is to lean on family or friends for financial help. Getting assistance with the down payment or other borrowing costs can go a long way toward making your homeownership dreams come true.

As long as you don't mind asking for help, a free-and-clear gift that's intended for your down payment is an ideal arrangement, since it will allow you to borrow less overall. Or, if that’s too big an ask, your loved ones could pitch in toward closing or moving costs.

Alternatively, your loved ones could help by co-signing your loan. For example, if their credit score is a lot higher than yours, it could enable you to secure a lower interest rate so that your monthly payment is more affordable.

You certainly wouldn't be the only one leaning on family to help afford a home at today's prices. According to the Canada Mortgage and Housing Corporation's latest Mortgage Consumer Survey, around a third of recent home buyers used gift money to help buy their homes. What's more, 22% admitted that they wouldn't have been able to afford to buy without it.⁵ Meanwhile, a CIBC study from 2021 found that many parents are gifting increasingly large amounts to their children to help fund down payments.⁶

Just be sure your parents or other generous loved ones are aware they're giving a gift, not a loan, and are willing to put that in writing. A lender will want proof that this money isn't adding to your debt burden and may require documentation from your benefactors.

Another way to tap your network for help is to crowdfund part of your down payment or ask for monetary gifts instead of tangible ones. For example, if you're getting married soon, you could skip the wedding gift registry and ask guests to contribute funds to your hoped-for home purchase instead.

4. Look for Special Programs and Assistance

You could also cut some of your upfront mortgage costs by taking advantage of government programs, tax rebates, and other funding opportunities.

For example, the Government of Canada's new First Home Savings Account (FHSA) initiative could help you trim your next year's tax bill as you gather money for your down payment. When you open an FSHA, you can route up to $8,000 per year of income to the account, tax-free (up to a maximum of $40,000).⁷ And if you co-buy with a partner and you both open FHSA accounts, you can squirrel away a combined $16,000 per year.

You may also be eligible for a First Time Home Buyers' Tax Credit up to $1,500, as well as other home buyer rebates, depending on the type of home you buy and where you move. For example, you could get a substantial rebate on some of the GST/HST taxes you pay when you buy a newly-constructed or heavily-renovated home.⁷

First-time home buyers can also borrow up to $35,000 tax-free from their individual Registered Retirement Savings Plans (RRSPs) to help beef up their down payments.⁷ And eligible buyers can take advantage of the Government of Canada's First-Time Home Buyer's Incentive, which offers 5% to 10% of a new home's purchase price in exchange for a cut of the home's equity.⁸ I can connect you with a lender or mortgage broker who can educate you about your options and help shepherd you through the process.

5. Expand Your Home Search

If you’re having trouble finding a home within your budget, consider broadening your search criteria. You may be surprised by the kinds of deals that are available when you're willing to compromise.

For example, if you're struggling to find an affordable home in your target neighbourhood, expand your search area and consider homes that are further out of town or that are located in up-and-coming areas with lower starting prices. I would be happy to introduce you to some great but lesser-known neighbourhoods that we consider hidden gems.

You could also save money on your home purchase simply by dropping or revising some of your must-haves and settling for OK-to-haves instead. For example, do you really need two washrooms and a large backyard? Or could you settle for a single washroom with space to add a second one in the future? And would a small garden, cozy balcony, or rooftop terrace still give you the outdoor time you crave? These types of compromises can sometimes shave tens of thousands off your purchase price.

Similarly, if you don't mind rolling up your sleeves or working with a contractor on minor jobs, you can look for homes that need a little TLC. Just because a house looks dated doesn't mean it's destined to stay that way or that it will take a ton of money to spruce up. In fact, a home with good bones but cosmetic flaws could be a perfect match: With less competition, you'll have a better chance of purchasing the home at an affordable price. You can then take your time to save more and fix it up to your taste.

Keep in mind, starter homes are rarely forever homes, but merely a first step onto the property ladder. By gaining a foothold in the real estate market now, you can set yourself up to afford a more expensive property in the future.

According to Statistics Canada, the net worth of a typical Canadian homeowner has more than doubled since the start of the new millennium, climbing from $323,700 in 1999 to $685,400 by 2019. The average renter's net worth, by contrast, grew far more slowly during the same period, rising from $14,600 to just $24,000.⁹ I can help you find an affordable first home so you can start building equity to reach your long-term financial and real estate goals.

YOU CAN DO IT—AND I CAN HELP

Buying a first home is challenging, but it's not impossible—especially when you have a savvy real estate professional in your corner. I will work with you to devise a plan to overcome your financial constraints. Then, I’ll help you find a home that not only excites you but also fits your budget and lifestyle. Give me a call to get started with a free exploratory consultation.

Sources:

Financial Post - https://financialpost.com/executive/executive-summary/housing-affordability-crisis-canada-worse
CBC -
https://www.cbc.ca/news/canada/british-columbia/housing-investors-canada-bc-1.6743083
MoneySense - https://www.moneysense.ca/spend/real-estate/income-properties/legal-secondary-suite-or-basement-apartment/
Statistics Canada -
https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713a-eng.htm
Canada Mortgage and Housing Corporation (CMHC) - https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-research/surveys/mortgage-consumer-surveys/survey-results-2022
CIBC -
https://economics.cibccm.com/cds?flag=E&id=9dc124d8-9764-4c1d-83b4-9e89a5d568b8
Government of Canada -
https://www.canada.ca/en/financial-consumer-agency/services/buying-home.html
A Place to Call Home -
https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
Statistics Canada -
https://www150.statcan.gc.ca/n1/daily-quotidien/220921/dq220921b-eng.htm

Stress-Free Home Cleaning: 27 Practical Tactics for Busy Households

Wed, 05 Apr 2023 18:46:45 GMT

Keeping a clean and orderly home is a challenge for many of us. Between busy work schedules, social obligations, and family commitments, it’s tough to keep up with daily chores—let alone larger seasonal tasks.

The effort is worthwhile, however. A sanitary environment can keep you and your family healthier by minimizing your exposure to germs and allergens.¹ Plus, researchers have found that organized, uncluttered homes have quantifiable mental health benefits, too, including reduced stress, improved emotional regulation, and increased productivity.²

The reality is, we enjoy our homes more when they are in good order. It’s much easier to relax without piles of unopened mail or a messy kitchen reminding us of work to be done. And don’t we all feel more inclined to entertain family and friends when our homes are well-kept?

That’s why I’ve rounded up my favourite tactics—from overall strategies to little tips and tricks—for keeping things tidy without spending all our spare time cleaning.

Set a Schedule for Daily and Weekly Cleaning

We’ve all been there—you put off vacuuming or mopping your floor for a few days, only to realize that weeks have passed. Creating a cleaning schedule that works for you is the best way to stay on top of things and avoid overwhelm. Here are a few of our favourite strategies:

Designate a day of the week for each task—then, add them to your calendar so you can’t forget.
Create a shared schedule that assigns specific responsibilities to each member of the household. Post it in a prominent place, like on the refrigerator, or create a shared digital calendar.
Carve out 15 minutes a day for cleaning and decluttering. Set a timer on your phone and get as much done as you can before it goes off.

It may take some trial and error to find the tactics that work best for you. The most important thing is to make a habit of cleaning so that clutter and grime don’t have a chance to build. And if you’d like some professional help, reach out for a referral to one of my favourite cleaning services!

Tackle Bigger Chores Seasonally

Many home care tasks are seasonal by nature and only need to be completed once or twice a year. But when we don’t have a plan to tackle them, it’s all too easy to put them off. Here are a few tips to stay on top of these chores:

Mark days on your calendar in advance to attend to annual or semi-annual chores, like cleaning gutters, washing windows, turning mattresses, and shampooing carpets
Schedule just one primary task each weekend instead of blocking out a full two days. This will help ensure a good balance between chores and relaxation.
Designate a date two to four times a year, depending on your lifestyle, to put away out-of-season items like clothes, holiday decorations, and sporting goods.
Take some time to sort through your seasonal items when you pack them away. Then you can toss, sell, or donate things that you no longer need or enjoy.

Remember—breaking down these larger tasks can make them less overwhelming. If you space them out so that you can handle them one by one, even the most time-consuming chores become a lot more manageable.

And since all your time is valuable, don't hesitate to delegate these larger home care tasks to professionals. Give me a call for a list of my recommended service providers.

Reduce the Barriers to Cleaning

Set yourself up for success by ensuring you have the tools on hand to tackle small tasks with ease. Here are a few ways to make your cleaning supplies more accessible:

Store a broom, dustpan, and vacuum on each floor of your home so they’re easy to reach.
Stash containers of disinfecting and glass wipes under every sink for a mid-week wipe-down.
Place extra bags beneath the liner of your garbage pails, so you’ll have a replacement ready when you take out the trash.
Keep a paper shredder and recycling bin handy so you can dispose of unwanted mail as it’s opened.

By strategically placing your tools and supplies in the locations where you’re most likely to need them, you’ll make cleaning less of a chore and more of a habit.

Stop the Clutter Before It Starts

From coats to shoes to mail, it’s all too easy to find clutter taking over your home. Once these piles start to form, they can feel overwhelming—which only makes it harder to address them.

To avoid this problem, stop the clutter before it starts. Assign every item a home and create storage spaces and “drop zones” in key locations.³Here are a few ideas to get you started:

Install coat hooks and shoe racks in the entryway for easy access.
Add a key caddy or shelf for essential items to get you out the door.
Hang a letter bin to capture mail and newspapers as soon as you walk into the house.
Place a donation box in each closet for items you no longer want or need.

It can take a little time to get in the habit of returning items to their assigned space. But once you do, staying on top of clutter will become far more manageable.

Are you considering a larger organizational upgrade, like a custom closet or pantry system? Reach out for a free consultation to find out how the investment could impact the value of your home!

Tackle Small Tasks Right Away

Sometimes, the mental load of thinking about a chore you need to do is worse than the chore itself. Plus, handling small tasks right away can reduce the need for lengthy cleaning sessions.³

Try working these changes into your routine:

Learn to clean as you cook, rather than piling it all up for later. As you wait for water to boil or food to cook through, wash the bowls and utensils you used for prep.
Hang bath towels on a bar immediately after use. By allowing them to properly air dry, you can cut down on the frequency of laundering.
Bring items with you when you leave a room. For example, return plates and cups to the kitchen right away rather than letting them stack up in your home office.
Take out the trash when you leave for work, school drop-off, or errands. This will save you the time and hassle of a second trip.

If you implement these small changes, your home will stay neater—and you’ll minimize the number of dedicated cleaning sessions you need to take on each week.

Embrace an Evening “Shutdown” Routine

Kitchens can get dirty and cluttered fast. But a few minutes spent cleaning up each evening can prevent the mess from getting out of control.⁴

Imagine your kitchen is a restaurant and you’re tidying it up before closing down for the night. These simple steps will prepare you for the morning rush:

Wipe down all surfaces, including countertops, stove, microwave, and sink. Then toss your soiled washcloth in the hamper and lay out a fresh one for tomorrow.
Load and run the dishwasher every night so you can empty it the next morning.
Prepare for breakfast by programming your coffee pot and setting out some grab-and-go options.

We all know it can be hard to find the energy for chores in the evening. But if you complete these small tasks each night, you’ll start the next day off right in a tidy, clean kitchen.

Think Outside of the Box When It Comes to Storage

Most of us have limited storage space. Unfortunately, without the right spots to stash our items, it’s easy to become disorganized.

But I’ve found that using household items in innovative ways can help keep mess and clutter under control.⁵ Here are a few of my favourite swaps:

Place a magazine file in your kitchen for cookbooks, takeout menus, and meal kit cards.
Hang a pocket-style shoe organizer inside your pantry door to store granola bars, spice jars, and other small items.
Separate dress and athletic socks by turning an old shoe box into a drawer divider.
Repurpose jam jars by using them to store office supplies or bathroom essentials.
Store out-of-season clothes inside rarely-used suitcases, so all that space doesn’t go to waste.

A little creativity goes a long way when it comes to making the most of your space. Just be sure that you’re creating systems you can stick with and not putting things where you might forget about them later!

I'M HERE TO HELP YOU MAKE THE MOST OF YOUR HOME

Keeping your home clean and organized can be a continuous struggle—there’s no need to feel ashamed of that. But taking the time to implement systems that work for you can make life more pleasant and less stressful in the long run.

Remember, I'm not just here to help you buy or sell a home. I want you to love living in it, too. Reach out if you need referrals for house cleaners, window washers, or other service providers that can help you make the most of your space.

Sources:

Healthline - https://www.healthline.com/health-news/5-health-benefits-of-spring-cleaning
Forbes - https://www.forbes.com/health/mind/mental-health-clean-home/
My Domaine - https://www.mydomaine.com/house-cleaning-schedule
Housewife How-Tos - https://housewifehowtos.com/clean/10-tips-to-keeping-a-clean-house/
Better Homes and Gardens - https://www.bhg.com/decorating/storage/projects/simple-solutions/

My Home Didn’t Sell! Now What?

Wed, 01 Mar 2023 17:41:02 GMT

When it comes to listing your home, most home sellers want three things: 1) to make a lot of money, 2) to put in minimal time and effort, and 3) to sell quickly. But the reality is, selling a home is rarely that simple. And homeowners who try to do it themselves—or receive bad advice—can end up stuck (months later) with a property that hasn’t sold.

If that’s you, don’t panic! I’ve outlined the top five reasons a home doesn’t sell—and action steps you can take to overcome each of these issues.

Not sure why your property didn’t sell? If you’re not already working with an agent or your listing has expired or been withdrawn, give me a call! I’d be happy to offer a free, no-obligation assessment and create an action plan to get your home SOLD.

This marketing piece is not intended as a solicitation for properties currently in an exclusive agreement with another Broker.

BAD TIMING

If your home didn’t sell after several months on the market, timing could’ve been a factor. Markets are driven by the law of supply and demand, and real estate is no exception.

When there are a lot of people who want to buy homes (demand) and a shortage of inventory (supply), it’s considered a seller’s market. During a seller’s market, listings tend to get snapped up quickly. In a buyer’s market, however, there are more homes for sale than active buyers. This can cause homes to sell for less money and to sit on the market for a longer period of time before receiving an offer.

What causes the shift between a seller’s market and a buyer’s market? Economic factors like interest rates, affordability, domestic growth, and the unemployment rate can all impact buyer demand. Over the past year, for example, higher mortgage rates have not only made it harder for some borrowers to qualify for a home loan, they have also sharply pushed up homebuyers' anticipated monthly payments.¹ So even if a buyer was interested in your home, they may have passed on it if they couldn’t qualify for a mortgage at your asking price.

Seasonal factors like weather, holidays, and school schedules can also increase or dampen the activity and motivation of buyers. Additionally, unexpected events, such as a natural disaster or a stock market crash, can cause some buyers to put their purchasing plans on hold until conditions normalize.

Now What?

If timing does appear to be a factor, it may be advisable to delay relisting your property. Of course, that’s not feasible (or desirable) for every seller.

In most cases, buyers can be motivated to act with a combination of improvements, incentives, and pricing. Where there’s a will to sell, there’s usually a way. Fortunately for sellers, people will always need a place to live, and there will be a percentage of the population that is motivated to buy quickly.

If you suspect timing played a role in your inability to sell, consult with a knowledgeable real estate agent. We’re in the field every day and have access to the latest market data. We can estimate how long a home like yours should take to sell given current market conditions and help ensure that your asking price is competitive.

INEFFECTIVE MARKETING

Did your home get a steady stream of showings when it was on the market? If not, you may need to try a new promotional strategy.

Take a look at the listing description. Did it entice buyers to visit your property? A well-written description should be clear and compelling while highlighting your home’s most desirable features. Additionally, it should have utilized best practices for search engine optimization (SEO) to ensure that it was found by buyers who were looking for homes online.

And how well did the listing photos showcase your property? Many buyers use photos of a home to decide whether or not to visit it in person. In fact, in an American survey, 85% of buyers who browsed online found photos “very useful” in their home search.² Poor quality or a low quantity of listing photos could have kept potential buyers from stepping through your door.

Another factor to consider is whether your listing reached the right audience. This can be especially important if you have a unique or highly-customized home. Working with your agent to make your listing available through your local Multiple Listing Service® System is a great place to start, but some properties require a more robust marketing approach.

Now What?

If you suspect ineffective marketing, consider turning to a skilled professional with a proven approach. We employ a strategic Property Marketing Plan that uses the latest technologies to seed the marketplace, optimize for search engine placement, and position your home for the best possible impression right out of the gate.

For example, we know what buyers in this market want and can craft a persuasive description to pique their interest. And since good listing photos are so crucial, we work with the top local photographers to ensure each shot is staged to your home’s advantage.

We also know how to get your listing in front of the right audience—one that will appreciate its unique features. By utilizing online and social marketing platforms to connect with consumers and offline channels to connect with local real estate agents, your property gets maximum exposure to your target market.

Want to learn more about our multi-step marketing strategy? Reach out for a copy of my complete Property Marketing Plan.

POOR IMPRESSION

If your property received a lot of foot traffic but no offers, you may need to examine the impression you made on buyers who visited your property.

Start with your home’s structure and systems. Are there large cracks in the foundation? How about doors and windows that don’t properly close? Are there water stains on the walls or ceiling that could signal a leak? These can be major “red flags” that scare away buyers.

Next, examine your curb appeal. Does the yard need mowing or do the hedges need trimming? Are there oil stains on the driveway? Any peeling paint or rotted siding? If your home’s exterior looks neglected, buyers may assume the entire house has been poorly maintained.

Now move on to the interior of your home. Is it clean? Is there a noticeable odour? Have you taken the time to depersonalize and declutter each room? Buyers need to be able to picture their items in your home, but that’s difficult to do amongst your family photos and personal collections. And oversized furniture and packed closets can make a space seem small and cramped.

Now What?

When I take on a new listing, I always walk through it with the homeowner and point out any repairs, updates, or decluttering that should be done to maximize its sales potential. I also share tips on how to prep the property before each showing.

In some cases, I will recommend that you utilize staging techniques to highlight your home’s best features and help buyers envision themselves living in the space. Home staging is one of the hottest trends in real estate—because it works! According to stagedhomes.com, for example, staging could cut in half the amount of time it takes to sell and bump up your sale price by as much as 20%.³ In addition, a survey of American real estate agents suggests that staging not only helps spark buyers' imaginations, it can also inspire higher quality offers.⁴

Some sellers choose to hire a professional home stager, while others opt to do it themselves, using guidance from their agent. I can help you determine the appropriate budget and effort required to get your home sold.

PRICE IS TOO HIGH

Many homeowners are reluctant to drop their listing price. But the reality is, buyers may not seriously consider your property if they think your home is overpriced.

Attitudes have changed since the Bank of Canada started hiking interest rates. Many of today's homebuyers are no longer willing or able to pay as high a price on a new home as they might have when borrowing costs were lower.⁵ If your home’s original asking price was set using sales data from the market's peak, then you may need to rethink your pricing strategy.

Economic factors aren't the only reasons, though, for why a home's asking price might not match its market value. Pricing a home can be tricky, regardless of the economic climate, because so many factors can impact how much buyers are willing to pay. For example, unique, highly customized, and luxury properties are particularly difficult to price because there aren’t a lot of comparable homes with which to compare them.

Regardless, if your home sat on the market for months without an offer, then chances are good that your asking price needs to be reevaluated.

Now What?

If you aren’t in a rush to sell your home, adjustments to timing or marketing may bring in a new pool of potential buyers. And repairs, upgrades, and staging can increase the perceived value of your home, which may be enough to bring a buyer to the table at your original list price.

However, if you need to sell quickly, or you’ve already exhausted those options, a price reduction may be necessary to get your home the attention it needs to sell.

I am a local market expert and have access to the latest market data and comparable sales in your neighbourhood. I can help you determine a realistic asking price for your home given today’s market conditions. Just reach out for a free home value assessment!

YOU HIRED THE WRONG AGENT (OR WORSE, NO AGENT AT ALL)

If you suspect that your previous real estate agent didn’t do enough—or used the wrong approach—to sell your home, you’re not alone. Many sellers whose listings languish until they expire or are withdrawn feel this way.

While most agents have the best of intentions, not all of them have the skills, experience, instincts, or local market expertise to devise a winning sales strategy in this challenging market.

Or, perhaps you chose not to hire a listing agent at all and have been trying to sell your home yourself. This can be an equally frustrating endeavour.

Although selling your home independently can help cut some costs, it can also be extremely risky and may even lose you money in the long run. For example, research by the Canadian real estate intelligence firm, Insightt, found that For Sale By Owner (or FSBO) homes took more than twice as long to sell in some real estate markets as homes represented by an agent. Insightt's data also showed that FSBO homes were more likely to sell for less than asking price.⁶

Now What?

If either of these scenarios sounds familiar, you need to ask yourself: “Would I still be interested in selling my home if I could get the right offer?”

If so, we should talk. I understand how frustrating it can be when you’ve put a lot of time, money, and effort into prepping your property for the market and it doesn’t sell. I also empathize with how disruptive a delayed home sale can be to your life.

By now, don’t you owe yourself more than the status quo when it comes to your real estate representation? My multi-step Property Marketing Plan can help you sell your home for the most money possible, and in the process re-connect you with the excitement you originally felt upon first listing. It’s time for a new agent, new marketing, new buyers, and most of all…new possibilities.

READY TO MAKE A MOVE?

Let's talk. I can help you figure out why your home didn’t sell and how to revise your sales strategy and set your home up for success.

The housing market has experienced a shift and the waters may be choppier than usual for a while. But there's still plenty of opportunity in the current market: You just need a guide who knows where to look and how to find it.

This marketing piece is not intended as a solicitation for properties currently in an exclusive agreement with another Broker. The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.

Sources:

Financial Post - https://financialpost.com/executive/executive-summary/bank-of-canada-interest-rate-impact-housing-mortgage
National Association of Realtors - https://store.realtor/2022-nar-profile-of-home-buyers-and-sellers-download/
CREA - https://www.creacafe.ca/is-home-staging-necessary-when-listing-a-property/
Money Sense - https://www.moneysense.ca/spend/real-estate/what-home-sellers-should-know-about-staging/
The Globe and Mail - https://www.theglobeandmail.com/real-estate/toronto/article-opportunistic-real-estate-buyers-step-to-the-stage-as-prices-decline/
Real Estate Magazine - https://realestatemagazine.ca/putting-for-sale-by-owner-into-perspective/

Top 6 Home Design Trends To Watch in 2023

Wed, 01 Feb 2023 15:09:40 GMT

Over the past few years, many of us have spent extra time at home—and that means we appreciate the personal design touches that make a house cozy and comfortable more than ever. Some of us have adapted our dwellings in new ways, from creating functional home offices to upgrading the appliances we use most.

But while it’s important to make your home your own, it’s also smart to think about the long-term impact your renovations could have on its value. Choosing highly-personalized fixtures and finishes can make it harder for future homebuyers to envision themselves in the space. Even if you don’t plan to sell your home soon, investing in popular design choices that are likely to stand the test of time will make things easier down the road.

And if you’re in the market for a new home, it’s wise to keep an eye out for features that might need to be updated soon so you can factor renovation costs into your budget.

I’ve rounded up six trends that I believe will influence interior design in 2023, as well as ideas for how you might incorporate them in your own home. Remember, before taking action, it’s always wise to consult with a real estate professional to understand how specific updates and upgrades will affect your property’s value in your local market.

Separate Kitchen, Dining and Living Areas

For years, home design has been dominated by open-concept floor plans, particularly for kitchen, dining, and living areas. However, as the pandemic forced families to work and study from home, many struggled to find the privacy and separation they needed. As a result, designers report that more families are choosing to bring back walls to break up the space and create quieter areas.¹

That doesn’t mean that we’re returning to an era of dark and cramped spaces, however. Even as walls make a return, it’s important to take care to retain a sense of flow and openness within the home and to prioritize natural light.

If you’re buying or building a new home, consider how you will use the space and whether or not an open floor plan will suit your needs. If you already live in a home with an open floor plan and it isn’t working for you, try rearranging furniture and strategically placing pieces like bookshelves, room dividers, or rugs to create distinct areas within the home and reduce noise.

Photo by LDa Architecture & Interiors

Nature-Inspired Design

In the past few years, we’ve seen the “biophilia” trend explode, and there are no signs that it will be any less popular in 2023. This trend is all about bringing the outside in by adding natural touches throughout your home.²

This year, design experts predict that natural, sustainable materials like bamboo, cork, and live-edge wood will lend character without being overwhelming. Natural-wood cabinets and accents are also back in vogue.³ Designers emphasize that you shouldn’t be afraid to mix contrasting tones, like white oak and rich walnut, to create a custom and inviting look.¹

Colours inspired by nature (think mossy greens and desert hues) will also play into this trend and will blend seamlessly with wood tones. We’re also seeing a return to natural stone countertop materials like quartzite, marble, and soapstone.⁴

If you’re planning to add new shelving or redo your kitchen, consider turning to these materials to embrace the biophilic look. Or, incorporate elements of the trend by choosing nature-inspired paint colours and adding to your houseplant collection.

Photo by Savant Design Group

Lighting as a Design Feature

Spending more time at home has shown us the importance of having the right lighting for specific tasks and times of the day. As a result, many homeowners are reconsidering the ways they light their homes and using light fixtures to change the usability and mood of their spaces.

In particular, homeowners are rejecting bright, flat overhead lighting and replacing it with lamps and task-specific options. A layered approach to lighting—such as using a combination of under-cabinet, task, and ambient lighting in a kitchen—enables homeowners to tweak the level of light they’re using based on the time of day and what they are doing^.4

In 2023, we expect to see more statement chandeliers, pendants, and wall sconces in a variety of shapes and materials.⁵Thinking about switching up the lighting in your home? Start by adding floor or table lamps and swapping out fixtures before you invest in rewiring your space. Take note of what works and what doesn’t and watch how the light in your home changes throughout the day. You can then use that information to make lighting decisions that require a bigger investment.

Photo by The Brooklyn Studio

More Vibrant Colour Palettes

After the long dominance of whites and grays, more vibrant colours are coming back as a way to add character and dimension to homes.

This year, warm and earthy neutrals, jewel tones, and shades of red and pink are particularly popular.⁶ If your style tends toward the subtle, consider options like light, calming greens, blues, and pastels.

Major paint brands have responded to these homeowner preferences with their newest releases. Sherwin William’s 2023 colour of the year, Redend point, is an earthy blushing beige, while Dulux is embracing jewel tones with Vining Ivy, a rich teal.^7,8Behr’s choice of the year, Blank Canvas, is a creamy off-white that's a warmer version of the stark whites that have been trending over the past few years.⁹

If you’re planning to put your home on the market soon, it’s better to play on the safer side and avoid extremely bold or bright colour choices when it comes to paint or fixed finishes like tile and countertops. Instead, try incorporating pops of colour through throw pillows, art, and accessories.

Photo by Touch Interiors by Bronwyn Poole

Curved Furniture and Architectural Accents

Goodbye, sharp corners. In 2023, arches and curves lend a sleek feel that draws on classical design and retro trends while remaining modern.⁶ Rounded corners feel more relaxed and natural than sharp edges, lending more of a sense of flow and comfort to a home.

If you want to incorporate the trend into your new build or remodelling plans, curved kitchen islands and bars and arched alcoves are all good options—or you can take it a step further with arched windows and doorways. You can also carry this trend through to your light fixtures by incorporating a bubble chandelier or globe pendants.

It’s easy to embrace this look without renovations, too. Look for a softer feel in furniture, with sofas, chairs, and tables that showcase curved edges. Or, break up your space with an arched folding screen and a circular rug.

Photo by Wilson Lighting

Art Deco Revival

Art Deco, the architecture and design style that took hold in the 1920s and ’30s, is enjoying a resurgence.¹

As a style, Art Deco is marked by bold geometry, textures, and colours, as well as an emphasis on art. But the 2023 interpretation of this style is likely to be a bit less splashy than its historical roots. Designers predict that instead of incorporating all of the elements of the style, which could feel overwhelming, homeowners will pick bursts of colour or bold accessories to bring some whimsy to their space.

Keep an eye out for vintage mirrors, lamps, or vases that bring a touch of Art Deco glam to your home, or embrace bold colours and fabrics like velvet. Choose pillows and throw blankets in bright colours and geometric patterns to nod to the look without diving in all the way.

Photo by Favreau Design

DESIGNED TO SELL

Are you thinking about remodelling or making significant design changes to your home? Wondering how those changes might impact your future resale value?

Buyer preferences vary significantly based on your home’s neighbourhood and price range. I'm happy to share my insights on the upgrades that will make it easier (or more difficult!) to sell your home. Give me a call for a complimentary consultation!

Sources:

Realtor.ca - https://www.realtor.ca/blog/design-trends-to-watch-out-for-in-2023/29256/1367
Sudbury.com - https://www.sudbury.com/village-life/15-major-interior-design-trends-for-2023-6301745
Home Builder Canada - https://www.homebuildercanada.com/news/news221123-Kitchen-trends.htm
Realtor.ca - https://www.realtor.ca/blog/8-kitchen-trends-to-watch-for-in-2023/29442/1367
The Spruce - https://www.thespruce.com/2023-lighting-trends-6891412
HGTV.ca - https://www.hgtv.ca/2023-home-decor-trends/
Sherwin Williams - https://www.sherwin-williams.com/content/colorforecast/colormix-2023/color-of-the-year-2023
Dulux - https://www.dulux.ca/pro/colour/2023-paint-colour-design-trends
Behr - https://www.behr.com/consumer/inspiration/2023-coty/

2023 Real Estate Market Outlook (And What It Means for You)

Mon, 09 Jan 2023 14:18:55 GMT

Last year, one factor drove the real estate market more than any other: rising mortgage rates.

In March 2022, the Bank of Canada began a series of interest rate hikes in an effort to pump the brakes on inflation.¹ And while some market sectors have been slow to respond, the housing market has reacted accordingly.

Both demand and home prices have softened, as the primary challenge for buyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many Canadians, it should ultimately lead to a more stable and sustainable real estate market.

So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While no one can forecast the future with certainty, here’s what several industry experts predict will happen to the Canadian housing market in the coming year.

MORTGAGE RATES WILL EVENTUALLY STOP CLIMBING

Over the course of 2022, we saw the benchmark rate rise at a record pace—a whopping 400 basis points in just nine months. Fortunately, there are signs that the central bank’s series of rate hikes may be coming to an end.²

After last month’s half-point rate increase, Bank of Canada officials struck a noncommittal tone about future rate hikes, prompting economists to speculate that the central bank may pause hiking rates by early spring, if not sooner.³

According to Stephen Brown, a senior economist at Capital Economics, the central bank is likely to hike rates at least one more time before it shifts gears. “We would not rule out a final 25 basis point interest rate hike in January,” said Brown in a client note. “But the Bank is very close to the end of its tightening cycle.”³

What impact will this have on mortgage rates? Variable mortgage rates could finally stabilize. However, buyers hoping for a big drop later in the year may be disappointed. Although some market analysts are betting on lower rates, CIBC economist Benjamin Tal thinks that's unlikely as long as inflation remains a factor. “I think that the Bank of Canada is determined to make sure that they will not touch interest rates in terms of cutting them before inflation is totally dead,” said Tal in an interview with Canadian Mortgage Professional.⁴

Fixed mortgage rates, on the other hand, could continue to trend lower as bond yields crumble.⁵ James Laird, co-CEO of Ratehub.ca, predicts that Bank of Canada’s benchmark rate will hold steady through 2023, but fixed mortgage rates may tick down because of bonds. “Bond yields will decrease throughout the year, allowing fixed rates to follow suit,” said Laird in an interview with Canadian Mortgage Professional.⁶ However, those rate decreases may be fairly muted as long as banks’ borrowing costs stay higher overall.

It's also possible that rates on both variable and fixed-rate mortgages will climb instead. Bank of Canada Governor Tiff Macklem has made clear that the central bank is prepared to keep hiking rates aggressively if inflation fails to dissipate. “If high inflation sticks, much higher interest rates will be required to restore price stability,” said Macklem in a recent speech to business leaders.⁷

What does it mean for you? While no one can predict the future of mortgage rates with certainty, an end to interest rate hikes could bring some much-needed relief for borrowers. If you have plans to buy a home or renew your mortgage in the coming year, you’ll want to weigh your options carefully when deciding between a variable or fixed rate. Reach out to me for a referral to a mortgage professional who can help.

BUYERS WILL RETURN TO THE MARKET

The pace of home sales fell steeply last year as higher mortgage rates priced would-be buyers out of the market. However, some industry experts predict that the Canadian housing market is poised to turn a corner.

Although many buyers and sellers are currently in a stalemate over housing prices, market dynamics may shift this spring as more homes go up for sale.

“Zooming in on demand and supply conditions, the drop in unit sales has been the steepest on record, but the pace of the decline is starting to slow,” write CIBC economists, Benjamin Tal and Katherine Judge, in a recent forecast.⁸ Douglas Porter, chief economist at BMO Capital Markets, projects that existing home sales will fall through the first half of 2023 and then reverse course and begin to rise in Q3.⁹

Victor Tran, mortgage expert at Ratesdotca, also speculates that a stabilization in mortgage rates will bring home buyers back out. He told the Financial Post in a December interview: “We may be seeing the bottom of the housing market trough before buyers begin to enter the market in spring of 2023.”¹⁰

Buyers’ purchasing power will still be constrained by higher mortgage rates, though, as well as by a stringent mortgage stress test for uninsured mortgages and a hefty monthly payment for insured ones. So a buyer’s ability to participate in the market will depend, in part, on a seller’s willingness to negotiate.

What does it mean for you? If you’re a buyer who has been waiting for conditions to normalize, now may be an ideal time to start your home search. As more buyers begin to enter the market, you’ll face steeper competition and reduced negotiating power.

And if you’ve delayed selling your home, this could be the year to make a move. Reach out to schedule a complimentary consultation and home value assessment.

HOME PRICES WILL STABILIZE LATER THIS YEAR

Canadian home prices have fallen roughly 10% from their peak, and analysts expect they could fall further before moderating in the second half of this year.¹¹

A Reuters poll of industry experts found a wide range of predictions. But on average, the analysts surveyed project that home prices could fall another 7.5% or so. However, the majority report that the risk of a market crash is low.¹¹

A nationwide housing shortage is expected to prop up prices even as sales volume falls. According to Robert Kavcic, senior economist at BMO Capital Markets, “We have a unique situation where demand has cracked and buyers can’t qualify for, or afford, early-year prices. But, outside some areas, there’s not a bounty of listings to choose from, and sellers are still able to say ‘no thanks.’”¹¹

Economists at CIBC speculate that home prices will hit a floor in the coming months: “A lower 5-year rate and pent-up demand amplified by demographics will work to establish a bottom in prices by the spring of 2023,” write Benjamin Tal and Katherine Judge.⁸

RBC Assistant Chief Economist Robert Hogue offers a similar projection: “We expect prices will keep falling until a bottom [this] spring. Our forecast calls for the national benchmark price to drop 14% from (quarterly) peak to trough.”¹²

What does it mean for you? It can feel scary to buy a home when there’s uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we’re experiencing right now. Contact me to discuss your goals and budget. I can help you make an informed decision about the right time to buy.

And if you’re planning to sell this year, you’ll want to chart your path carefully to maximize your profits. Contact me for recommendations and to find out your home’s market value.

RENT PRICES WILL CONTINUE TO CLIMB

While home prices have fallen, rent prices have surged—rising around 12% year-over-year, according to data from Rentals.ca.¹³

The average monthly cost to rent a home in Canada is now higher than ever and some analysts are growing increasingly concerned that renters won't be able to keep up with the higher payments. “We're getting close to a point where rents are just simply becoming unaffordable for renters,” said Urbanation president, Shaun Hildebrand, to CBC News.¹⁴

But that's not stopping landlords from collecting higher rents. In 2023, affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing are expected to continue driving up rent prices in much of the country.

“Interest rates are actually working to elevate rent inflation because many people are not buying, so they are renting more,” CIBC Economist Benjamin Tal told CBC News.¹³

And according to Tal, the higher rates have also disincentivized builders and developers from investing in rental properties. That, in turn, has exacerbated the undersupply of available units.¹³

It's possible rent prices could ease if Canada's economy deteriorates, says Urbanation's Hildebrand. “But over the medium and longer term with aggressive immigration targets and rental construction that's been stalling recently due to high costs, it's pretty clear that rents are going to continue to rise higher.”¹⁴

What does it mean for you? Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a complimentary consultation to discuss your options.

WE’RE HERE TO GUIDE YOU

While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, I can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighbourhood.

If you’re considering buying or selling a home in 2023, contact me now to schedule a complimentary consultation. I’ll work with you to develop an action plan to meet your real estate goals this year.

Sources:

CP24 News -
https://www.cp24.com/news/the-bank-of-canada-has-raised-rates-again-here-s-a-timeline-of-how-we-got-here-1.6125268#
Reuters -
https://www.reuters.com/markets/bank-canada-set-hike-rates-may-signal-it-is-near-end-tightening-cycle-2022-12-07/
CBC -
https://www.cbc.ca/news/business/bank-of-canada-1.6677004
Canadian Mortgage Professional - https://www.mpamag.com/ca/mortgage-industry/market-updates/bank-of-canada-could-be-done-on-hikes-for-now-cibcs-tal/430005
Reuters - https://www.reuters.com/business/finance/bank-canadas-inflation-fight-made-harder-bond-yields-fall-2022-12-15/
Canadian Mortgage Professional - https://www.mpamag.com/ca/news/general/whats-the-bank-of-canada-rate-likely-to-be-in-2023/430755
Global News -
https://globalnews.ca/news/9341825/bank-of-canada-tiff-macklem-speech-dec-12/
CIBC Capital Markets -
https://economics.cibccm.com/cds?id=6f402711-69b3-46a5-afc8-91ede34fe1fd&flag=E
BMO Capital Markets -
https://economics.bmo.com/media/filer_public/04/01/040155ce-0cb2-49ac-b63e-def8e66d4c05/outlookcanada.pdf
Financial Post -
https://financialpost.com/real-estate/mortgage-rates-soar-higher-interest-rate-increase
Financial Post -
https://financialpost.com/real-estate/canada-house-prices-to-tumble
RBC Special Housing Reports -
https://thoughtleadership.rbc.com/quiet-fall-housing-market-across-canada/
CBC News -
https://www.cbc.ca/news/business/rent-inflation-november-1.6650777
CBC News -
https://www.cbc.ca/news/canada/toronto/rental-costs-canada-1.6685602

7 Tips to Maximize Your Home’s Sale Price

Tue, 08 Nov 2022 16:56:05 GMT

Over the past few years, a real estate buying frenzy bid up home prices to eye-popping amounts. However, as mortgage rates have risen, buyer demand has cooled.¹Consequently, home sellers who enter the market today may need to reset their expectations.

The reality is, it’s no longer enough to stick a “for sale” sign in the yard and wait for buyers to bang down the door. If you want to net the most money possible for your property in today’s market, you’ll need an effective game plan and a skilled team of professionals to implement it.

Fortunately, I’ve developed a listing strategy that combines my proven approach to preparation, pricing, and promotion—all designed to help you get top dollar for your home. But you will play an important role in the selling process, as well.

Here are some crucial steps you can take to set yourself up for success as a home seller in this market:

1. Make Strategic Repairs and Improvements

When you sell something, it’s important to consider what your customer wants to buy. And according to a recent survey, 83% of Canadians view “affording necessary renovations” as a major hurdle to buying a home.²If you can present buyers with a move-in-ready option, they will feel more confident in making an offer.

Before your home goes on the market, I’ll conduct a thorough walk-through to identify any problems that could prevent it from selling. In some cases, I may recommend a professional pre-listing inspection. Finding and addressing issues like leaks, rot, and foundation problems up front can pay off in the final sale price. Plus, it prevents sales from falling through because of a red flag on the home inspection, a scenario no seller wants to face.

Beyond repairs, I’ll also help you identify the simple upgrades that offer the highest return on your investment. For example, new paint can give your home a fresh look at a reasonable cost. And according to a recent report, it’s one of the top renovations for return at resale.³ Similarly, minor landscaping improvements can pay off in a major way. A healthy lawn offers an estimated 256% ROI.⁴

2. Declutter and Depersonalize

When buyers look at a home for sale, they’re trying to envision themselves living there. That’s hard to do if it’s chock-full of the current owner’s family photos, children’s artwork, and souvenir collections. Plus, cluttered homes look smaller, and older items can make them feel dated.

Decluttering before you put your home up for sale will help you in the long run—after all, you’ll need to move all your things to your new home eventually. Now is the time to shred, digitize, or organize old documents, donate old clothes, or move bulky furniture into storage. At a minimum, you’ll want to pack away excess items neatly before potential buyers view the home. Remove personal photos and other trinkets to create a blank slate that viewers can imagine decorating with their own prized possessions.

If you feel overwhelmed by this process, I’d be happy to make recommendations or refer you to a local service provider who can help.

3. Stage Your Home for Success

Just as you take care to dress professionally for a job interview, you should always ensure your home looks its best for potential buyers. Home shoppers today are used to scrolling through Instagram and Pinterest, and they want to see the same wow factor when touring a home.

The process of making your home look its best and appeal to potential buyers is called staging, and it can be a game changer. According to the International Association of Home Staging Professionals, an average priced staged home sells 5 to 11 times faster than its unstaged counterpart. Even better, the majority of staged homes sell for 4% to 20% over list price!⁵

Some sellers hire a professional stager, who may bring in furniture and decor to increase the home’s appeal. Others choose to stage their homes themselves. I can help advise you on which route to choose and how much to invest in the process.

It’s also important to consider what buyers in your neighbourhood are likely to be looking for in a home. I can help guide your staging choices with our local market insights. For example, in neighbourhoods where a large share of residents work from home, it may be effective to stage one room as an office space so potential buyers can envision their day-to-day routine.

4. Prep for Each Showing

Most of us don’t live picture-perfect lives, and our homes reflect that (sometimes messy) reality. But when your home is on the market, it’s important to ensure that it is always ready for viewers, even on short notice. A missed showing is a missed opportunity to sell your home!

Before your home hits the market, it may be worth hiring professional cleaners to get in all the nooks and crannies. After, try your best to keep things spic and span. Just a few minutes a day wiping down counters, sweeping the floors, and vacuuming can make a big difference.

It’s also worth noting that most buyers will open cabinets, drawers, and closets—so try to make sure everything is as neat and organized as possible. Keep toiletries and small appliances off countertops, and secure valuables and sensitive documents in a safe or off-site.

Want help finding a cleaning service to make your home shine for buyers? Reach out for a referral!

5. Price Your Home Correctly From the Start

In the past few years, you may have seen homes in your neighbourhood sell for shocking amounts and wondered if you could get a similar price for your property. The temptation to list your home on the high side can be strong, but it’s best to be realistic from the start. Even in a strong market, some homes will sit for months. And the longer a property is listed, the more buyers worry that something is wrong with it.

Of course, you also don’t want to set your price too low and lose out on potential profit. That’s why it’s essential to work with real estate agents who know the ins and outs of our local market and what buyers are willing to pay today. In a quickly-evolving market, comparable sales from a few months ago can lag the current market reality.

Fortunately, if you’ve owned your home for several years, chances are good that it’s worth much more today than you paid for it. That means you stand to walk away with a handsome profit.

6. Avoid Acting on Emotion

The past few years of over-asking-price offers with few conditions have set certain expectations for many sellers. It’s only natural to feel hurt or even offended if an offer comes in lower than what you think your home is worth.

However, it’s important to keep in mind that those market conditions were unprecedented, and we are now returning to a more typical market. Home sellers who act rationally, rather than emotionally, are going to get the best results.

Remember: You can always counter a low offer. The same goes for repair requests and conditions—everything is negotiable. However, it’s important to accept that the market is adjusting and flexibility is key. Keep your expectations reasonable, and remain open-minded. And you can rest assured knowing that I’ll be by your side every step of the way to help you navigate the process and negotiate a great deal.

7. Work With a Local Market Expert

The economics impacting mortgage rates may be national, but real estate markets are hyperlocal. That’s why working with a professional agent who understands your neighbourhood’s dynamics is essential. Through my experience, I’ve gathered insights that can help position your home for success in this market. Plus, I have the resources to connect with qualified buyers searching for a home like yours.

Working with a knowledgeable agent is also the secret to getting as much money as possible for your home. I have access to extensive data on recent sales in your neighbourhood, which we will use to price and promote your property. That’s one reason why homes sold by agents draw much higher prices than those sold by their owners alone. The U.S.-based National Association of Realtors found that for-sale-by-owner homes went for a median price of $260,000 in 2020, while the median for homes sold by agents was $318,000.⁶ That’s a difference of $58,000—and money you don’t want to leave on the table.

YOUR AGENT AND ADVOCATE

Selling a home in a fast-changing market can be stressful. You’re likely to hear conflicting advice and opinions from people in your life, and decisions like what colour to paint your front door or how much to list your home for can be overwhelming.

That’s where I come in. The market may be adjusting, but I'm here to help you make the most of it. I'm a listing professional in our area, and I know what steps you need to take for a smooth, profitable transaction.

If you’re considering buying or selling a home, I invite you to reach out to schedule a free consultation. I'm happy to talk through your specific situation and goals and help you identify your next steps.

Sources:

1. Global News - https://globalnews.ca/news/8833692/canada-housing-prices-bidding-offers/

2. Chartered Professional Accountants Canada - https://www.cpacanada.ca/en/news/canada/housing-survey

3. RE/MAX Blog - https://blog.remax.ca/renovations-that-pay-off-on-resale-according-to-re-max-brokers/

4. Angi - https://www.angi.com/articles/smart-landscaping-tips-can-increase-home-value.htm

5. International Association of Home Staging Professionals - https://pages.iahsp.com/home-staging-statistics/

6. National Association of Realtors - https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#purchased

8 Strategies to Secure a Lower Mortgage Rate

Mon, 12 Sep 2022 15:23:28 GMT

Interest rates have risen rapidly this year, triggered by the Bank of Canada’s efforts to curb inflation. And the July MNP Consumer Debt Index found that 59% of Canadians “are already feeling the effects of interest rate increases.”¹

Why has the impact been so widespread? In part, due to the rising popularity of variable rate mortgages. According to the Canada Mortgage and Housing Corporation, in the latter half of last year, the majority of mortgage borrowers opted for a variable over a fixed interest rate.²

Variable mortgages are typically pegged to the lender’s prime rate, which means they are immediately affected by rising interest rates. Homeowners with fixed mortgages aren’t impacted as quickly because their interest rate is locked in, but they will face higher rates, as well, when their mortgages are up for renewal. And many homebuyers are finding it increasingly difficult to afford or even qualify for a mortgage at today’s elevated rates.

Fortunately, there are steps you can take to strengthen your position if you have plans to buy a home or renew an existing mortgage. Try these eight strategies to help secure the best available rate:

1. Raise your credit score.

Borrowers with higher credit scores are viewed as “less risky” to lenders, so they are offered lower interest rates. A “good” credit score typically starts at 660 and can move up into the 800s.³ If you don’t know your score, you can access it online from Canada’s two primary credit bureaus, Equifax and Transunion.⁴

Then, if your credit score is low, you can take steps to improve it, including:⁵

● Correct any errors on your credit reports, which can bring down your score. You can request free copies of your reports through the Equifax and Transunion websites.

● Pay down revolving debt. This includes credit card balances and home equity lines of credit.

● Avoid closing old credit card accounts in good standing. It could lower your score by shortening your credit history and shrinking your total available credit.

● Make all future payments on time. Payment history is a primary factor in determining your credit score, so make it a priority.

● Limit your credit applications to avoid having your score dinged by too many inquiries. If you’re shopping around for a car loan or mortgage, minimize the impact by limiting your applications to a two-week period.

Over time, you should start to see your credit score climb — which will help you qualify for a lower mortgage rate.

2. Keep steady employment.

If you are preparing to purchase a home, it might not be the best time to make a major career change. Unfortunately, frequent job moves or gaps in your résumé could hurt your borrower eligibility.

When you apply for a new mortgage, lenders will typically review your employment and income history and look for evidence that you've been financially stable for at least two years.⁶ If you’ve earned a steady paycheck, you could qualify for a better interest rate. A stable employment history gives lenders more confidence in your ability to repay the loan.

That doesn’t mean a job change will automatically disqualify you from purchasing a home. But certain moves, like switching from corporate employment to freelance or self-employment status, could force you to delay your purchase, since lenders will want to see proof of steady, long-term earnings.⁶

3. Lower your debt service ratios.

Even with a high credit score and a great job, lenders will be concerned if your debt payments are consuming too much of your income. That’s where your debt service ratios will come into play.

There are two types of debt service ratios:⁷

1. Gross debt service (GDS) — What percentage of your gross monthly income will go towards covering housing expenses (mortgage, property taxes, utilities, and 50% of condo maintenance fees)?

2. Total debt service (TDS) — What percentage of your gross monthly income will go towards covering ALL debt obligations (housing expenses, credit cards, student loans, and other debt)?

What’s considered a good debt service ratio? Lenders typically want to see a GDS ratio that’s no higher than 32% and a TDS ratio that’s 40% or less.⁷

Low debt service ratios will also help you pass a mortgage stress test, which is required by all Canadian banks and some other types of lenders. The stress test is designed to help ensure you can continue to afford your mortgage payments even if interest rates rise. You can use the government of Canada's Mortgage Qualifier Tool to calculate how much you can afford to borrow.

If your debt service ratios are too high, or you can’t pass a mortgage stress test, you may need to consider purchasing a less expensive home, increasing your down payment, or paying down your existing debt. A bump in your monthly income will also help.

4. Increase your down payment.

Minimum down payment requirements vary by loan size and property type. But, in some cases, you can qualify for a lower mortgage rate if you make a larger down payment.

Why do lenders care about your down payment size? Because borrowers with significant equity in their homes are less likely to default on their mortgages. That’s why you will be required to purchase mortgage default insurance if you put down less than 20%.⁸

It’s important to note that some lenders offer discount rates for borrowers who put down less than 20% – because the required default insurance protects them from any potential loss. However, the cost of CMHC or private mortgage default insurance will typically exceed any interest savings. You'll also have to pay interest on that insurance if you add it to your mortgage.⁹ The bottom line: you’ll save money in borrowing costs if you can afford a larger down payment.

Fortunately, there are a couple of government-initiated resources designed to help eligible first-time home buyers with a down payment, including:⁹

● Home Buyers’ Plan (HBP) – Buyers may withdraw up to $35,000 (tax-free) from their Registered Retirement Savings Plan(RRSP). The money must be used to build or purchase a qualifying home and repaid to the RRSP within 15 years.

● First-Time Home Buyer Incentive – Buyers can take advantage of a shared-equity mortgage with the Government of Canada. Essentially, the Government will put 5% or 10% towards your down payment, interest-free, in exchange for a limited equity share of your property. The repayment is due in 25 years or when you sell your home.

I’d be happy to discuss these and other programs, tax rebates, and incentives that might help you increase your down payment.

5. Weigh interest rate options.

All mortgages are not created equal, and some may be a better fit than others, depending on your priorities and risk tolerance. For starters, there are several interest rate options to choose from:¹⁰

● Fixed — You’re guaranteed to keep the same interest rate for the entire length of the loan. Many buyers prefer a fixed rate because it offers them predictability and stability. However, you’ll pay a premium for it, as these mortgages typically have a higher interest rate to start. And if rates fall, you’ll be locked into that higher rate.

● Variable — Your interest rate will rise or fall along with your lender’s prime rate. You can choose either an adjustable or a fixed monthly payment. However, if you opt for a fixed payment, the amount that goes towards principal and interest each month will fluctuate depending on the current rate. Variable-rate mortgages typically offer lower interest rates to start but run the risk of increasing.

● Hybrid – Can’t decide between a fixed or variable rate? Hybrid mortgages attempt to address that dilemma. A portion of the mortgage will have a fixed rate and the remainder will have a variable rate. The fixed gives you some protection if rates go up, while the variable offers some benefit if rates fall.

What’s the best choice if you’re looking for the lowest mortgage rate? The answer is…it depends. If mortgage rates don’t rise much higher, or drop back down in a couple of years, you could win by opting for a variable rate. However, if they continue to climb, you may be better off with a fixed rate.

Keep in mind that the spread between variable and fixed rates has narrowed as rates rise.¹¹ However, it's still easier to meet the stress-test requirements for a variable mortgage, since the threshold is lower.¹² So, your choice may be limited by your ability to qualify.

6. Compare loan terms.

A mortgage term is the length of time your mortgage agreement is in effect. At the end of the term, a mortgage holder will need to either pay off their mortgage or renew for another term.

There are three major types of mortgage terms:¹³

● Shorter-term – These can range from 6 months to 5 years, and they are the most popular type in Canada. Borrowers can choose between a fixed or variable interest rate.

● Longer-term – These are longer than 5 years but generally no more than 10 years in length. Longer-term mortgages are more likely to feature fixed-interest rates and hefty prepayment penalties.

● Convertible – Offers the option to extend a shorter-term mortgage to a longer-term mortgage, typically at a different interest rate.

Which loan term offers the lowest rate? A shorter-term mortgage will typically feature a lower interest rate than a longer-term mortgage. However, the rate on a 1-year or a 3-year mortgage could be higher or lower than a 5-year mortgage depending on the current economic climate and whether it’s fixed or variable.

Many lenders offer especially attractive rates for 5-year mortgages due to their popularity.¹⁴ But to find the best rate, you’ll need to compare your options at the time of purchase or renewal.

7. Get quotes from multiple lenders.

When shopping for a mortgage, be sure to solicit quotes from several different lenders and lender types to compare the interest rates and fees. Depending upon your situation, you could find that one institution offers a better deal for the type of loan and term length you want.

Ideally, you should begin this process before you start looking for a home. If you get preapproved for a mortgage, in most cases, you can lock in the mortgage rate for 90 to 120 days. This is especially important when interest rates are rising.¹⁵

Some borrowers choose to work with a mortgage broker. Like an insurance broker, they can help you gather quotes and find the best rate. They’re paid a commission by the lender, so it won’t cost you anything out of pocket to use a broker. However, make sure you find out which lenders they work with and contact more than one so you can compare their recommendations.¹⁶

Don’t forget that I can be a valuable resource in finding a lender, especially if you are new to the home buying process. After a consultation, I can discuss your financing needs and connect you with loan officers or brokers best suited for your situation.

8. Ask for a discount.

When shopping for a mortgage, don’t be afraid to negotiate. In Canada, it’s commonplace for lenders to discount their advertised interest rates, which are called posted rates. And in many cases, all you have to do is ask. Of course, the strength of your application will come into play here – so don’t neglect strategies 1 through 4 above.¹⁷

Keep in mind that interest rates aren’t the only thing on the table. You can negotiate other contract terms, as well, like prepayment options and rebates. And if you get a great offer from one lender, you can leverage it by asking your preferred institution to match or beat it.¹⁷

Getting Started

Unfortunately, the rock-bottom mortgage rates we saw during the height of the pandemic are behind us. However, today’s 5-year fixed rates still fall beneath the historical average — and are well below the all-time peak of 20.75% in 1981.¹⁸

And although higher mortgage rates have made it more expensive to finance a home purchase, they have also ushered in a more balanced market. Consequently, today’s buyers are finding more homes to choose from, a better value for their investment, and sellers who are willing to negotiate.

If you have questions or would like more information about buying or selling a home, reach out to schedule a free consultation. I’d love to help you weigh your options, navigate this shifting market, and reach your real estate goals!

Sources:

1. MNP Consumer Debt Index -
https://mnpdebt.ca/en/resources/mnp-consumer-debt-index

2. Global News -
https://globalnews.ca/news/8970237/canada-mortgages-variable-fixed-cmhc/

3. Loans Canada -
https://loanscanada.ca/mortgage/minimum-credit-score-required-for-mortgage-approval/

4. Government of Canada -
https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/order-credit-report.html

5. Government of Canada - https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/improve-credit-score.html

6. RATESDOTCA -
https://rates.ca/resources/how-long-at-job-before-applying-mortgage

7. NerdWallet -
https://www.nerdwallet.com/ca/mortgages/what-are-debt-service-ratios

8. Royal Bank of Canada -
https://www.rbcroyalbank.com/mortgages/mortgage-default-insurance.html

9. Government of Canada - https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html#toc2

10. Government of Canada -
https://www.canada.ca/en/financial-consumer-agency/services/mortgages/choose-mortgage.html

11. Canada Mortgage Professional -
https://www.mpamag.com/ca/mortgage-industry/industry-trends/what-do-falling-bond-yields-mean-for-fixed-rates/416463

12. The Globe and Mail -
https://www.theglobeandmail.com/business/article-the-best-mortgage-strategies-for-a-rising-interest-rate-environment/

13. Government of Canada -
https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-terms-amortization.html

14. WOWA.ca -
https://wowa.ca/mortgage-rates

15. NerdWallet -
https://www.nerdwallet.com/ca/mortgages/what-is-mortgage-pre-approval

16. Government of Canada -https://www.canada.ca/en/financial-consumer-agency/services/mortgages/preapproval-qualify-mortgage.html

17. NerdWallet -
https://www.nerdwallet.com/ca/mortgages/negotiating-mortgage-fees

18. RateHub.ca -
https://www.ratehub.ca/5-year-fixed-mortgage-rate-history

7 Costly Mistakes Home Sellers Make (And How to Avoid Them)

Sun, 10 Jul 2022 01:48:00 GMT

No matter what’s going on in the housing market, the process of selling a home can be challenging. Some sellers have a hard time saying goodbye to a treasured family residence. Others want to skip ahead to the fun of decorating and settling in a new place. Almost all sellers want to make the most money possible.

Whatever your circumstances, the road to the closing table can be riddled with obstacles — from issues with showings and negotiations to inspection surprises. But many of these complications are avoidable when you have a skilled and knowledgeable real estate agent by your side.

For example, here are seven common mistakes that many home sellers make. These can cause anxiety, cost you time, and shrink your financial proceeds. Fortunately, I can help you avert these missteps and set you up for a successful and low-stress selling experience instead.

MISTAKE # 1: Setting An Unrealistic Price

Many sellers believe that pricing their home high and waiting for the “right buyer” to come along will net them the most money. However, overpriced homes often sit on the market with little activity, which can be the kiss of death in real estate — and result in an inevitable price drop.¹

Alternatively, if you price your home at (or sometimes slightly below) market value, your home can be among the nicest that buyers have seen within their budget. This can increase your likelihood of receiving multiple offers.²

To help you set a realistic price from the start, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price, based on the amount that similar properties have recently sold for in your area.

Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). I can help you find that sweet spot that will draw in buyers without undercutting your profits.

MISTAKE #2: Trying To Time The Market

You’ve probably heard the old saying: “Buy low and sell high.” But when it comes to real estate, that’s easier said than done.

Delaying your home sale until prices are at their peak may sound like a great idea. But sellers should keep these factors in mind:

1. Predicting the market with certainty is nearly impossible.

2. If you wait to buy your next home, its price could increase, as well. This may erode any additional proceeds from your sale.

3. If mortgage rates are rising, your pool of potential buyers could shrink—and you will have to pay more to finance your next purchase.

Instead of trying to time the market, choose your ideal sales timeline, instead. This may be based on factors like your personal financial situation, shifting family dynamics, or the seasonal patterns in your particular neighbourhood. I can help you figure out the best time to sell given your individual circumstances.

MISTAKE #3: Failing To Address Needed Repairs

Many sellers hope that buyers won’t notice their leaky faucet or broken shutters during a home showing. But minor issues like these can leave buyers worrying about more serious — and costly — problems lurking out of sight.

Even if you do receive an offer, there’s a high likelihood that the buyer will hire a professional home inspector, who will flag any defects in their report. Neglecting to address a major issue could lead buyers to ask for costly repairs, money back, or worse yet, walk away from the purchase altogether.

To avoid these types of disruptions, it’s important to make necessary renovations before your home hits the market. I can help you decide which repairs and updates are worth your time and investment. In some cases, I may recommend a professional pre-listing inspection.

This extra time and attention can help you avoid potential surprises down the road and identify any major structural, system, or cosmetic faults that could impact a future sale.³

MISTAKE #4: Neglecting To Stage Your Home

Staging is the act of preparing your home for potential buyers. The goal is to “set the stage” for buyers to help them envision themselves living in your home. Some sellers opt to skip this step, but that mistake can cost them time and money in the long run. A 2021 survey by the Real Estate Staging Association found that, on average, staged homes sold nine days faster and for $40,000 over list price.⁴

Indoors, staging could include everything from redecorating, painting, or rearranging your furniture pieces to removing personal items, decluttering, and deep cleaning. Outdoors, you might focus on power washing, planting flowers, or hanging a wreath on the front door.

You may not need to do all of these tasks, but almost every home can benefit from some form of staging. Before your home hits the market, we can refer you to a professional stager or offer our insights and suggestions if you prefer the do-it-yourself route.

MISTAKE #5: Evaluating Offers On Price Alone

When reviewing offers, most sellers focus on one thing: the offer price. And while dollar value is certainly important, a high-priced offer is worthless if the deal never reaches the closing table. That’s why it’s important to consider other factors in addition to the offer price, such as:

● Financing and buyer qualifications

● Deposit size

● Contract contingencies

● Closing date

Depending on your particular circumstances, some of these factors may or may not be important to you. For example, if you’re still shopping for your next home, you might place a high premium on an offer that allows for a flexible closing date.

Buyers and their agents are focused on crafting a deal that works well for them. I can help you assess your needs and goals to select an offer that works best for you.

MISTAKE #6: Acting On Emotion Instead Of Reason

It’s only natural to grow emotionally attached to your home. That’s why so many sellers end up feeling hurt or offended at some point during the selling process. Low offers can feel like insults. Repair requests can feel like judgments. And whatever you do — don’t listen in on showings through your security monitoring system. Chances are, some buyers won’t like your decor choices, either!

However, it’s a huge mistake to ruin a great selling opportunity because you refuse to counter a low offer or negotiate minor repairs. Instead, try to keep a cool head and be willing to adjust reasonably to make the sale. I can help you weigh your decisions and provide rational advice with your best interests in mind.

MISTAKE #7: Not Hiring An Agent

There’s a good reason 90% of homeowners choose to sell with the help of a real estate agent. Homes listed by an agent sold for 22% more than the average for-sale-by-owner home, according to a recent US-based study.⁵

Selling a home on your own may seem like an easy way to save money. But in reality, there is a steep learning curve. And a listing agent can:

● Skip past time-consuming problems

● Use market knowledge to get the best price

● Access contacts and networks to speed up the selling process

If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission.

I can navigate the ins and outs of the housing market for you and make your selling process as stress-free as possible. You may even end up with an offer for your home that’s better than you expected.

BYPASS THE PITFALLS WITH A KNOWLEDGEABLE GUIDE

Your home selling journey doesn’t have to be hard. When you hire us as your listing agent, I’ll develop a customized sales plan to help you get top dollar for your home without any undue risk, stress, or aggravation. If you’re thinking of buying or selling a home, reach out today to schedule a free consultation and home value assessment.

Sources:

1. Realtor.ca -
https://www.realtor.ca/blog/postpage/2666/1362/the-importance-of-having-a-realtor%C2%AE-price-your-home/

2. Royal Bank of Canada -
https://www.rbcroyalbank.com/mortgages/sellers-vs-buyers-market.html

3. Canadian Association of Home & Property Inspectors -
https://www.cahpi.ca/en/blog/3-reasons-you-should-hire-a-cahpi-inspector

4. Real Estate Staging Association -
https://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548

5. National Association of Realtors -
https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

Higher Rates and Short Supply: The State of Real Estate in 2022

Fri, 03 Jun 2022 16:05:32 GMT

Canada's housing market hit a boiling point last year as homebuyers clambered for real estate in regions with significantly more demand than supply. But now that homeowners and buyers alike are feeling the pinch of rising interest rates and record inflation, the market appears to finally be simmering down.

That, in turn, could create a welcome opening for shoppers to be more selective with their searches. However, buyers hoping for a major downturn in prices may be left disappointed. Although home values in some segments are beginning to sag under the weight of higher borrowing costs, a persistent housing shortage is expected to keep prices high.

Read on for a closer look at some of the top factors impacting Canada's real estate market and how they could affect you.

RISING MORTGAGE RATES ARE COOLING AN OVERHEATED MARKET

Over the past couple of years, homebuyers have faced record-high price appreciation and intense competition—in part due to historically low mortgage rates that were a result of the Bank of Canada’s efforts to keep the economy afloat during the COVID-19 pandemic.¹

According to the Canadian Real Estate Association (CREA), in 2021, both the number of sales and average home price hit at an all-time high, with demand for new homes far exceeding supply.² This trend continued through early 2022, despite widespread predictions that the Bank of Canada was gearing up to increase interest rates.³

But now that the central bank has officially begun pushing its key interest rate back up from emergency levels, the housing market is responding, with the pace of home sales cooling in March and April.⁴ The Canada Mortgage and Housing Corporation (CMHC) predicts that the housing market will continue to moderate in the coming year.⁵

The feds plan to keep raising interest rates as necessary to fight inflation, which means target rates could rise by another 1 to 2% or more over the next year.⁶That, in turn, will cause both fixed and variable mortgage rates to rise.

As Senior Deputy Governor Carolyn Rogers noted in May: “We need higher rates to moderate demand, including demand in the housing market. Housing price growth is unsustainably strong in Canada.”⁷

What does it mean for you?

If you’re shopping for a new home, expect mortgage rates to keep rising into 2024.⁸ So, you’ll need to act fast if you want to get in at a lower rate. However, the cooling effect should make for a less competitive market. I can help you chart the best path.

If you’ve been thinking about selling, higher mortgage rates may shrink your pool of potential buyers, so don’t wait too long to list. And if you are up for a renewal, you should also act quickly or risk paying a higher rate. Contact me to discuss your options.

DEMAND AND PRICES ARE STARTING TO SOFTEN IN SOME SEGMENTS

Nationally, home prices soared a record 26.6% last year, an unsustainable rate of appreciation by any measure.⁹ But now that the Bank of Canada has put rock-bottom rates in the rear view window, sales have begun to slow.

Soon after the Bank of Canada began raising interest rates in early March, the real estate market responded. According to the CREA, in March, home sales fell by 5.4% on a month-over-month basis and the Aggregate Composite MLS® Home Price Index (HPI) ticked up just 1%, “a marked slowdown from the record 3.5% increase in February.”¹⁰By April, home sales dropped by another 12.6% over the previous month as homeowners and buyers continued adjusting to higher rates.^.“Following a record-breaking couple of years, housing markets in many parts of Canada have cooled off pretty sharply over the last two months, in line with a jump in interest rates and buyer fatigue,” said CREA Chair Jill Oudil. Meanwhile, prices are still rising in some markets, but are sagging in others, causing the HPI to dip in April for the first time since 2020.¹¹

As the Bank of Canada continues pushing up rates, more buyers may give up on their homeownership dreams if they feel too squeezed by the combination of high rates and high prices. Still, many experts say a major downturn in prices is unlikely. That's in part due to the fact that there still aren't enough homes available to meet the demands of a growing population, says CREA CEO Michael Bourque. “The supply of new homes is not even close to keeping up with demographic changes and population growth.”¹² As long as housing remains a scarce asset, prices will remain relatively elevated.

What does it mean for you?

If you’ve been waiting to buy a home, now may be the perfect time to jump in the market. There are deals to be found if you know where to look. But don’t wait too long, or higher mortgage rates will erode any cost savings. I can help you find the best opportunities in today’s market.

For homeowners, the outlook is still bright. Governmental interventions are being put in place to stabilize the market–not crash it. And demand for housing and a strong job market should help protect your investment.

INVENTORY REMAINS TIGHT

According to the CMHC, housing starts trended higher in April after a small downturn in March. Overall, new homes are still being built at a faster clip today than in the past, but at a slower pace than we saw in 2021, noted CMHC Chief Economist Bob Dugan.¹³ Homebuilders are facing a wide range of challenges, including persistent inflation, rising rates, and ongoing labour shortages.

Increased federal investment could help counteract at least some of those challenges. The federal government recently announced plans to help double the pace of housing construction over the next decade by funding significantly more new and affordable housing. It also announced additional relief measures, including a temporary ban on foreign investment, doubling first-time buyers' tax credit, and halting blind bidding wars.¹⁴

In addition to fewer homes being built, new listings are also down, according to the CREA’s sales report. But a decrease in demand is offsetting the impact in some areas. “A little more than half of local markets were balanced markets…a little less than half were in seller's market territory.”¹¹

What does it mean for you?

While supply remains at historically low levels, even a modest bump in inventory can help take pressure off of buyers. If you’ve had trouble finding a home in the past, give me a call to discuss what we’re currently seeing in your target neighbourhood and price range.

If you’re a homeowner, it’s still a great time to sell and cash out those big equity gains. Contact me to find out how much your home is worth in today’s market.

HERE TO GUIDE YOU

While national real estate trends can provide a “big picture” outlook, real estate is local. And as a local market expert, I can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighbourhood.

If you’re considering buying or selling a home, contact me to schedule a free consultation. I can help you assess your options and make the most of this unique real estate landscape.

Sources:

1. Bank of Canada - https://www.bankofcanada.ca/2020/03/press-release-2020-03-27/

2. Global News - https://globalnews.ca/news/8516543/canada-home-sales-record-crea/

3. CBC - https://www.cbc.ca/news/business/crea-housing-february-1.6385274

4. Canadian Real Estate Association - https://www.crea.ca/housing-market-stats/stats/

5. Canada Mortgage and Housing Corporation - https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2022/housing-markets-moderate-historic-2021-levels

6. Bank of Canada - https://www.bankofcanada.ca/press/press-releases/

7. Reuters - https://www.reuters.com/world/americas/bank-canada-says-strong-demand-risks-higher-inflation-2022-05-03/

8. Better Dwelling - https://betterdwelling.com/canadian-mortgage-rates-to-surge-demand-will-be-slowest-in-recent-history-moodys/

9. CBC - https://www.cbc.ca/news/business/crea-housing-december-1.6317503#

10. Canadian Real Estate Association - https://www.crea.ca/news/march-home-sales-and-new-listings-ease-back-following-surge-in-february/

11. Canadian Real Estate Association - https://www.crea.ca/news/home-sales-drop-in-april-as-mortgage-rates-shoot-higher/

12. Global News - https://globalnews.ca/news/8716412/canada-housing-market-cooling-bubble-interest-rate/

13. Canada Mortgage and Housing Corporation - https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2022/canadian-housing-starts-trend-higher-april

Office of the Prime Minister of Canada, Justin Trudeau - https://pm.gc.ca/en/news/news-releases/2022/04/13/helping-young-people-get-housing-market

5 Ways to Write a Winning Offer in Today’s Real Estate Market

Mon, 02 May 2022 20:10:24 GMT

Our nation is in the midst of a shifting real estate market. But even as the buying frenzy begins to slow, many properties are still receiving multiple offers.¹

So what’s the best way to compete as a buyer–especially if you’re wary about overpaying?

While a high offer price gets attention, most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.

I can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm.

1. Demonstrate Solid Financing

The reality is, no one gets paid if a home sale falls through. That’s why sellers (and their listing agents) favour offers with a high probability of closing.

Sellers particularly love all-cash offers because there’s no chance of financing issues cropping up at the last moment. But all-cash offers are rare, and if sellers are assured that financing will come through, buying with a mortgage doesn’t have to be a disadvantage.

The most important step you can take as a buyer is to get pre-approved before you start looking for homes. A pre-approval letter shows sellers that you are serious about buying and that you will be able to make good on your offer.²

It’s also important to consider the reputation of your lender. While sellers may not know or care about a lender’s reputation, their agents often do. Some lenders are much easier to work with than others. If you’re unsure who to choose, I am happy to refer you to reputable lenders known for their ease of doing business.

2. Put Down a Sizeable Deposit

Buyers can show sellers that they’re serious about their offer and have “skin in the game” by putting down a large deposit. This, however, is not the same as a down payment.

The deposit is typically held in a trust account by the seller’s brokerage or lawyer.³ If the purchase goes through, it is applied to the down payment and closing costs. If the sale falls through, however, the buyer could lose some or all of that deposit, depending on the contract terms.

Deposit amounts vary, but offering a higher deposit can help demonstrate to the buyer that you are serious about the property. I can help you determine an appropriate deposit to offer based on your specific circumstances.

3. Ask for Few (or No) Conditions

Most real estate offers include conditions, which are clauses that allow one or both parties to back out of the agreement if certain requirements are not met. These conditions appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.

Two of the most common conditions are:⁴

● Financing: A financing condition gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.

● Inspection: An inspection condition gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.

Since conditions reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. The more conditions that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive or exclude certain conditions.

However, it’s very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection condition may find out too late that the home requires extensive renovations. If you back out of a home purchase without the protection of a condition, you could lose your deposit.⁵ I can help you assess the risks and benefits involved.

4. Offer a Flexible Closing Date

When it comes to selling a house, money isn’t everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may appreciate an option to advance or postpone their closing date.

This flexibility can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.

Of course, the value of these terms depends on the seller’s situation. I can reach out to the listing agent to find out the seller’s preferred terms, and then collaborate with you to write a compelling offer that works for both parties.

5. Work With a Skilled Buyer’s Agent

In this real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. I will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk.

Plus, I know how to write offers that are designed to win over both the seller and their listing agent. The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer’s agents who are professional, communicative, and courteous.

Once your offer is accepted, I’ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you’ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.

Helping You Get to the Right Offer

In many cases, a competitive offer doesn’t need to be condition-free or significantly above asking price. But if you’re serious about buying a home in today’s market, it’s important to consider what you can do to sweeten the deal.

If you’re a buyer, I can help you compete in today’s market without getting steamrolled. And if you’re a seller, I can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.

Sources:

1. Bloomberg - https://www.bloomberg.com/news/articles/2022-04-12/home-prices-could-start-to-cool-in-canada-s-hot-housing-market

2. NerdWallet - https://www.nerdwallet.com/ca/mortgages/what-is-mortgage-pre-approval

3. Nesto - https://www.nesto.ca/mortgage-basics/house-deposit-vs-down-payment/

4. Real Estate Council Alberta - https://www.reca.ca/2020/02/05/conditional-sales/

5. Loans Canada - https://loanscanada.ca/mortgage/what-happens-when-you-walk-away-from-your-offer-on-a-house/

Seller’s Checklist: A Timeline to Prep Your Home for Sale

Fri, 01 Apr 2022 20:33:58 GMT

We’re still in a seller’s market, but that doesn’t mean your home is guaranteed to easily sell.¹ If you want to maximize your sale price, it’s still important to prepare your home before putting it on the market.

Start by connecting with your real estate agent as soon as possible. Having the eyes and ears of an insightful real estate professional on your side can help you boost your home’s appeal to buyers. What’s more, beginning the preparation process early allows you to tackle repairs and upgrades that can increase your property’s value.

Use the checklist below to figure out what other tasks you should complete in the months leading up to listing your home. While everyone’s situation is unique, these guidelines will help you make sure you’re ready to sell when the time is right. Of course, you can always call us if you’re not sure where to start or what to tackle first. We can help customize a plan that works for you.

AS SOON AS YOU THINK OF SELLING

Some home sellers want to plan their future move far in advance, while others will be required to pack up on very short notice. Whatever your circumstances, these first steps will help assure you’ll be ahead of the listing game.

● Contact Your Real Estate Agent

We go the extra mile when it comes to servicing our clients, and that includes a series of complimentary, pre-listing consultations to help you prepare your home for the market.

Some sellers make the mistake of waiting until they are ready to list their home to contact a real estate agent. But we’ve found that the earlier we’re brought into the process, the better the result. That often means a faster sale—and more money in your pocket after closing.

We know what buyers want in today’s market, and we can help devise a plan to maximize your property’s appeal. We can also connect you with our trusted network of contractors, vendors, and service professionals, so you’ll be sure to get the VIP treatment. This network of support can alleviate stress and help ensure you get everything done in the weeks or months leading up to listing.

● Address Major Issues and Upgrades

In most cases, you won’t need to make any major renovations before you list. But if you’re selling an older home, or if you have any doubt about its condition, it’s best to get us involved as soon as possible so we can help you assess any necessary repairs.

In some instances, we may recommend a pre-listing inspection. Although it's less common in a seller's market, a pre-listing inspection can help you avoid potential surprises down the road. We can discuss the pros and cons during our initial meeting.

This is the time to address major structural, systems, or cosmetic issues that could hurt the sale of your home down the line. For example, problems with the frame, foundation, or roof are likely to be flagged on an inspection report. Issues with the HVAC system, electrical wiring, or plumbing may cause the home to be unsafe. And sometimes outdated or unpopular design features can limit a home’s sales potential.

Remember, when you’re dealing with major repairs or renovations, it’s best to give yourself as much time as possible. Given rampant labour and material shortages, starting right away can help you avoid costly delays.² Contact us so we can guide you on the updates that are worth your time and investment.

1 MONTH (OR MORE) BEFORE YOU LIST

Once any large-scale renovations have been addressed, you can turn your attention to the more minor updates that still play a major role in how buyers perceive your home.

● Make Minor Repairs

Look for any unaddressed maintenance or repair issues, such as water spots, pest activity, and rotten siding. This is the time to take care of those small annoyances like squeaky hinges, sticking doors, and leaky faucets, too.

Many of these issues can be handled by going the DIY route and using a few simple tools. Tackle the ones you can and be sure to call a professional for the ones you’re not comfortable doing yourself. We can refer you to local service providers who can help.

Remember that it’s easy to overlook these small issues because you live with them. When you work with us, you get a fresh set of eyes on your home—so you don’t miss any important repairs that could make a big difference to buyers.

● Refresh Your Design

This is a great time to think about some simple design updates that can make a significant impression on buyers. For example, a fresh coat of paint is an easy and affordable way to spruce up your home. A recent survey of Canadian agents found that paint and landscaping were two upgrades that offered the highest return on investment.³

HGTV landscape designer Carson Arthur agrees. According to Arthur, landscaping is the best place to invest your money and has the potential to increase your home’s value by up to 7%.⁴ If weather permits, lay fresh sod where needed, plant colourful flowers, and add some new mulch to your beds.

Even just repositioning your furniture can make a huge difference to buyers. A survey published by the International Association of Staging Professionals found that staged homes often sell faster and for more than their list price.⁵ We can refer you to a local stager or offer our insights and suggestions if you prefer the DIY route.

● Declutter and Depersonalize

Doing a little bit of decluttering every day is a lot easier than trying to take care of it all at once right before your home hits the market. A simple strategy is to do this one room at a time, working your way through each space whenever you have a bit of free time.

Start by donating or discarding items that you no longer want or need. Then pack up any seasonal items, family photos, and personal collections you can live without for the next few weeks. Bonus: This will give you a head start on packing for your move!

1 WEEK BEFORE YOU GO TO MARKET

With just one week before your home is available for sale, all major items should be crossed off your to-do list. Now it’s time to focus on the small details that will really make your home shine. Here are a few key areas to focus on during this last week.

● Check-In With Your Agent

We’ll connect again to make sure we’re aligned on the listing price, marketing plan, and any remaining prep. We will be there every step of the way, ensuring you’re fully prepared to maximize the sale of your home.

● Tidy Your Exterior

You’ve already done the major landscaping—now it’s time to tackle the last few details. Make sure your lawn is freshly mowed, hedges are trimmed, and flower beds are weeded.

In addition, now is the time to clean your home’s exterior if you haven’t already. Power wash your siding, empty the gutters, and wash all your windows and screens.

● Deep Clean Your Interior

Your house should be deep cleaned before listing, including a thorough deodorizing of the home’s interior and steam cleaning for all carpets. Consider hiring a professional cleaning company to ensure the space smells and looks as fresh as possible.

In addition to cleaning, take some time to tidy up. Buyers will look inside your closets, pantries, and cabinets, so make sure they are neat and organized. Small appliances and toiletries should be cleared off the countertops.

DAY OF SHOWING

Now you’re all set to go and there are just a few small things you need to handle on the day of showings or open houses. Do a final walk-through and take care of these finishing touches to give potential buyers the best possible impression.

● Pre-Showing Prep

Happy and comfortable buyers are more likely to submit offers! Make them feel at home by adjusting the thermostat to a comfortable temperature. Open any blinds and curtains throughout the house, and turn on all lights so buyers can see all the potential in your home.

Then tidy up by vacuuming and sweeping floors, emptying (or hiding) trash cans, and wiping down countertops. In the bathrooms, close toilet lids and hang clean hand towels.

Don’t forget to secure jewelry, sensitive documents, prescription medications, and any other items of value in a safe or store them off-site.

Finally, it’s best to have pets out of the house during showings. If possible, you should also remove evidence of pets (litter box, dog beds, etc.), which can be a turn-off for some buyers.

DON’T WAIT TO PREP YOUR HOME FOR SELLING

If you want to get top dollar for your home, don’t put it on the market before it’s ready. The right preparation can make all the difference when it comes to maximizing the offers you get. The upgrades and changes you need to make will depend upon your home’s condition, so don’t wait to speak with a broker.

Call me if you’re thinking about selling your home, even if you’re not sure when. It’s never too early to seek the guidance of your real estate broker and start preparing your home to sell.

Sources:

1. RBC -
https://thoughtleadership.rbc.com/a-turning-point-more-sellers-enter-canadas-housing-market-in-february/

2. ConstructConnect -
https://canada.constructconnect.com/canadata/forecaster/economic/2021/07/labour-shortages-high-material-costs-strong-demand-more-pressure-on-house-prices

3. RE/MAX -
https://blog.remax.ca/canadian-real-estate-renovation-trends/

4. National Post -
https://nationalpost.com/life/homes/curb-appeal-in-the-business-of-home-ownership-a-little-landscaping-can-go-a-long-way

5. International Association of Staging Professionals -
https://d3oaxt0bwkjnjn.cloudfront.net/documents/home-staging-industry-statistics-2020-min.pdf

Hedge Against Inflation With These 3 Real Estate Investment Types

Sat, 26 Feb 2022 02:12:00 GMT

The annual inflation rate in Canada is currently around 5.1%—the highest it’s been in 30 years.¹ It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend Canadian dollars, inflation impacts you.

Economists expect the effects of inflation, like a higher cost of goods, to continue.² Luckily, an investment in real estate can ease some of the financial strain.

Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help.

WHAT IS INFLATION AND HOW DOES IT IMPACT ME?

Inflation is a decline in the value of money. When the rate of inflation rises, prices for goods and services go up. Therefore, a dollar buys you a little bit less with every passing day.

The consumer price index, or CPI, is a standard measure of inflation. Based on the latest CPI data, prices increased 5.1% from January 2021 to January 2022. In comparison, the CPI increased 1.0% from January 2020 to January 2021.³

How does inflation affect your life? Here are a few of the negative impacts:

● Decreased Purchasing Power

We touched on this already, but as prices rise, your dollar won’t stretch as far as it used to. That means you’ll be able to purchase fewer goods and services with a limited budget.

● Increased Borrowing Costs

In an effort to curb inflation, the Bank of Canada is expected to raise interest rates.⁴ Therefore, consumers are likely to pay more to borrow money for things like mortgages and credit cards.

● Lower Standard of Living

Wage growth tends to lag behind price increases. Even as labour shortages persist in Canada—which would typically trigger pay raises—wages are not increasing at the same pace of inflation.⁵ As such, life is becoming less affordable for everyone. For example, inflation can force those on a fixed income, like retirees, to make lifestyle changes and prioritize essentials.

● Eroded Savings

If you store all your savings in a bank account, inflation is even more damaging. As of February, the national average deposit interest rate for a savings account was around 0.067%, not nearly enough to keep up with inflation.⁶

One of the best ways to mitigate these effects is to find a place to invest your money other than the bank. Even though interest rates are expected to rise, they’re unlikely to get high enough to beat inflation. If you hoard cash, the value of your money will decrease every year and more rapidly in years with elevated inflation.

REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION

So where is a good place to invest your money to protect (hedge) against the impacts of inflation? There are several investment vehicles that financial advisors traditionally recommend, including:

● Stocks

Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months.⁷

● Commodities

Commodities are tangible assets, like gold, oil, and livestock. The theory is that the price of commodities should climb alongside inflation. But studies show that this correlation doesn’t always occur.⁸

● Inflation-Protected Bonds

Real Return Bonds (RRBs) are inflation-protected bonds issued by the Canadian government that are indexed to the inflation rate. Bonds are considered low risk, but returns have not been rising at the same rate of inflation, making them suboptimal investments.⁹

● Real Estate
Real estate prices across the board tend to rise along with inflation, which is why so much Canadian capital is flowing into real estate right now.¹⁰

We believe real estate is the best hedge against inflation. Owning real estate does more than protect your wealth—it can actually make you money. For example, home prices rose 20% from 2021 to 2022, nearly 15% ahead of the 5.1% inflation that occurred in the same timeframe.¹¹

Plus, certain types of real estate investments can help you generate a stream of passive income. In the past year, property owners didn’t just avoid the erosion of purchasing power caused by inflation; they got ahead.

TYPES OF REAL ESTATE INVESTMENTS

Though there are a myriad of ways to invest in real estate, there are three basic investment types that we recommend for beginner and intermediate investors. Remember that we can help you determine which options are best for your financial goals and budget.

● Primary Residence

If you own your home, you’re already ahead. The advantages of homeownership become even more apparent in inflationary times. As inflation raises prices throughout the economy, the value of your home is likely to go up concurrently.

If you don’t already own your primary residence, homeownership is a worthwhile goal to pursue.

Though the task of saving enough for a down payment may seem daunting, there are several strategies that can make homeownership easier to achieve. If you’re not sure how to get started with the home buying process, contact us. Our team can help you find the strategy and property that fits your needs and budget.

Whether you already own a primary residence or are still renting, now is a good time to also start thinking about an investment property. The types of investment properties you’ll buy as a solo investor generally fall into two categories: long-term rentals and short-term rentals.

● Long-Term (Traditional) Rentals

A long-term or traditional rental is a dwelling that’s leased out for an extended period. An example of this is a single-family home where a tenant signs a one-year lease and brings all their own furniture.

Long-term rentals are a form of housing. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality of long-term rentals can help to provide stable returns in uncertain times, especially when we have high inflation.

To invest in a long-term rental, you’ll need to budget for maintenance, repairs, property taxes, and insurance. You’ll also need to have a plan for managing the property. But a well-chosen investment property should pay for itself through rental income, and you’ll benefit from appreciation as the property rises in value.

We can help you find an ideal long-term rental property to suit your budget and investment goals. Reach out to talk about your needs and our local market opportunities.

● Short-Term (Vacation) Rentals

Short-term or vacation rentals function more like hotels in that they offer temporary accommodations. A short-term rental is defined as a residential dwelling that is rented for 30 days or less. The furniture and other amenities are provided by the property owner, and today many short-term rentals are listed on websites like Airbnb and Vrbo.

A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of daily, hands-on management. With a short-term rental, you’re not just entering the real estate business; you’re entering the hospitality business, too.

Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself and your family!

Contact us today if you’re interested in exploring options in either the long-term or short-term rental market. Since mortgage rates are expected to rise, you’ll want to act fast to maximize your investment return.

WE’RE INVESTED IN HELPING YOU

Inflation is a fact of life in the Canadian economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. Owning a primary residence or investing in a short-term or long-term rental will help you both mitigate the effects of inflation and grow your net worth, which makes it a strategic move in our current financial environment.

If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact us. Our team can help you find a primary residence or investment property that meets your financial goals.

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Reuters -
https://www.reuters.com/world/americas/canadas-annual-inflation-rate-hits-51-january-2022-02-16/

2. MacLeans -
https://www.macleans.ca/economy/inflation-worsening-2022-canada/

3. Statistics Canada -
https://www150.statcan.gc.ca/n1/daily-quotidien/220216/dq220216a-eng.htm

4. Bloomberg -
https://www.bloomberg.com/news/articles/2022-01-25/canada-set-to-raise-rates-in-inflation-fight-decision-guide

5. The Globe & Mail -
https://www.theglobeandmail.com/business/article-the-stealth-pay-cut-wages-arent-keeping-up-with-inflation/

6. Trading Economics -
https://tradingeconomics.com/canada/deposit-interest-rate

7. Reuters -
https://www.nasdaq.com/articles/canada-stocks-tsx-down-after-hot-inflation-data-dismal-shopify-forecast

8. Research Gate -
https://www.researchgate.net/publication/350016324_Gold_and_Inflation_in_Canada_A_Time-Varying_Perspective

9. Maple Money -
https://maplemoney.com/inflation-protection-are-real-return-bonds-or-tips-the-answer/

10. Storeys -
https://storeys.com/canadians-using-real-estate-outrun-inflation/

11. WOWA -

https://wowa.ca/reports/canada-housing-market

8 Popular Home Design Features for 2022

Wed, 02 Feb 2022 16:51:46 GMT

There’s a lot to consider when selling your home, from market conditions and appraisals to where you’ll go next. Don’t forget, however, the importance of design. It’s often one of the first things buyers notice when they walk into a home, and it’s also a detail that you, as a seller, can easily control.

According to Realtor.ca’s 2022 housing market forecast, October of 2021 saw record home sales.¹ Even with the pandemic igniting new restrictions in some provinces, the Canadian housing market is expected to remain hot. This means, if you’re looking to sell in the near future, now is the time to consider how you can stand out.

Updating your home design is one way to do that. Changes like eco-friendly fixtures or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.

Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate a property, give us a call. We can help you realize your vision and maximize the impact of your investment.

Eco-Friendly Fixtures

Canada’s largest demographic, millennials, has been a driving force in the country’s real estate market for the past few years. One thing that remains top of mind for this cohort is sustainable living features. A recent Deloitte survey found that one-third of millennials initiate or deepen their consumer investment in products or services that help the environment—this also includes the houses they choose to live in.²

Here are a few eco-friendly design features that will be attractive to these millennial buyers in 2022. Bonus: they can net a significant return on investment (ROI) for you, as a seller, too.

Energy-Efficient Windows: Windows and doors account for up to 25 percent of home heat loss, according to nrcan.gc.ca.³ Therefore, upgrading to energy-efficient windows can help homeowners save money.
Low-Flow Water Fixtures: National Resources Canada also recommends replacing your water-consuming fixtures like showerheads, toilets, and faucets with ones that have flow rates of about 7.6 L/minute, 4.8L/flush, and 4L/minute, respectively.⁴ If you want to take it a step further, ENERGY STAR® certified appliances like dishwashers and washing machines will also make a dramatic difference in water bill savings.
Native Landscaping: Perhaps unexpectedly, another eco-friendly ‘fixture’ is native flora. Local greenery helps combat biodiversity loss, creates a better habitat for wildlife, and has a greater resistance to pests, according to HGTV.⁵ These benefits of native plants add to the eco-friendly appeal of your home.

Wellness Retreat Nooks

As many of our homes became “all-purpose” territory for the entire family, interior zoning efforts were in full effect. From designated offices to closed-door playrooms, everyone needed their own space. Add in mental health concerns, competing schedules, and reduced access to health and wellness facilities, and the result is a huge prioritization of personal care spaces.

At-home wellness amenities, which were once viewed as luxuries, are now on many homeowners’ must-have lists. Intrigue buyers and improve your quality of life in your home with reading nooks, spa-inspired bathrooms, and exercise or meditation spaces. Even if your house doesn’t have the square footage to section off an entire room for relaxation, making simple tweaks to natural light, air purifiers, and indoor plants can help you feel better in your home now, while enabling future buyers to see the opportunity for their own space.

Calming Paint Colours

Paint colors that produce a calming atmosphere will also be a key selling point in 2022. Soft earth tones and natural hues will prevail this year, including various shades of blue, green, brown, and beige. Recent research suggests steering clear of trendy paint colors in favor of a more classic palette to bring the feel of nature indoors in a subtle and soothing way.⁶

A survey of American homebuyers found that a certain paint colour was able to increase a home’s value by 1.6%.⁶ If we Canadians see even a 1% increase, that’s $7,208 more for the average home, which is priced at $720,850, according to the Financial Post.⁷

A crowd-pleasing hue to refresh the walls with is BEHR’s 2022 paint colour of the year, known as Breezeway.⁸ This shade of green with silver undertones was created to mimic sea glass. As the BEHR website describes it, Breezeway “evokes feelings of coolness and peace, while representing a desire to move forward and discover newfound passions.”

Outdoor Living Updates

Don’t forget to think about your yard when considering design changes for your home. As interiors become more productive, many Canadians are looking to the outdoors for a break. HGTV predicts the “exterior living room” trend will continue in 2022, so making outdoor upgrades in the spring when the ground thaws could reap serious benefits.⁹ Whether your exterior square footage looks like a balcony, small patio, or expansive yard, it only takes some imagination and effort to turn it into a comforting oasis.

Front porches, in particular, are seeing a big revival, says Greenhouse Canada.¹⁰ Power-washing your siding; adding a fresh coat of paint on the door, brick, or floorboards; and finishing it off with some exterior lighting will go a long way in upping the curb appeal.¹¹ Don’t forget to add window boxes, big planters, and young trees that require minimal maintenance but add more life to the space.

Finish off the space with some comfortable outdoor furniture to make the outdoors as well-designed as the indoors. If you need help deciding how to update your outdoor area, let us guide you.

Designated Work Spaces

It may come as no surprise that after the pandemic is over, 80 percent of new teleworkers want to continue to work at least half of their hours from home, according to Statistics Canada.¹² However, this desire needs to be weighed against the availability of space in a home.

If you can, try turning a bedroom or den into a work-from-home office. When designing the space, make it both functional and aesthetically pleasing. Position a desk near the window for natural light, install a bookshelf unit, arrange a few succulents on the work surface, and hang a few framed posters or a cork bulletin board on the wall. You want the space to foster productivity as well as be a place in your home you enjoy spending time.

When you get ready to sell, we can help you highlight your designated workspace. Given the high demand for this design feature, it can help you interest more buyers and attract more competitive offers—if marketed creatively.

Plus, Canadians who transitioned to working from home because of the pandemic may be eligible to claim a $500 deduction for home office expenses—making this renovation that much more feasible.¹³

Luxury Kitchen Retouches

The kitchen has always been a main focal point of interior design, and that’s no different in 2022. Families will always need this space to come together in their own homes.

This year’s buyers want a kitchen with new upgrades and retouches, but you don’t have to renovate the entire kitchen to make an impact. If you’re not sure where to start, here are a few tips on how to create a kitchen that buyers will love without spending too much money on renovations:

Repaint the kitchen, keeping the calm and nature-inspired colours in mind that are most popular right now. Taking a kitchen from dark to light by painting cabinets and walls can make all the difference.
Update the hardware. These kitchen “accessories” stand out and add personality to an otherwise standard kitchen.
Update light fixtures to bring in more light while also adding a fresh look and feel in the space.

Unique Accent Walls

An accent wall gives a home character while balancing it with the calming feel of natural- and neutral-coloured walls. But, we’ve seen accent walls before, so bolder moves are expected for 2022. Here are some on-trend options that go above and beyond a solid-colour accent wall:

Jewel or metallic tones
Textured wallpaper
Painted ceilings
Built-in shelves
Wood paneling¹⁴
Sprawling wall tiles ¹⁵

If you’re planning to sell in the next year, talk to us before adding an accent wall. Depending on your target buyer, it may be a design feature that actually hurts your home’s value. We can run a free Comparative Market Analysis on your home to help you understand what would resell best in your neighbourhood.

Exterior Siding Updates

An exterior siding refresh can make an old home feel entirely new and have a big impact on its resale value. This primarily affects curb appeal, but it’s also an important factor in keeping interiors warm and protected from Canada’s harsh winters. The average cost for new siding ranges from $4.80 - $51.60 per square foot.¹⁶ That variation depends on which of the many siding materials you choose, from fiber-cement to brick, wood, vinyl, metal, or stone.

While all these options can infuse the exterior with character and curb appeal, there are a few other factors to consider before taking on this kind of project. While brick adds more sophistication, it is on the pricier end and is susceptible to salt erosion, making it a less enticing option for those on the coasts. On the other end of the cost spectrum, vinyl is a very popular option that does not fade, is easy to maintain, and comes in many colour options.¹⁷ However, vinyl will crack over time after facing harsh Canadian winters.

Give your home this simple and attractive facelift before putting it on the market. If you’re not sure how to get started yourself, our team can connect you with a trusted vendor to guide you through the process.

Keep These Home Design Features on Your Radar in 2022

These design features can infuse personality into your home while helping to close the deal if you plan to sell in 2022. The average buyer knows just what they’re looking for in a space they plan to call home, so with some investment and foresight, you can give your house an edge over the competition—and boost resale value in the process.

However, you don’t need to make all these changes to attract more buyers. We can help you determine which design features you should add to your home by sharing insights and tips on how to maximize the return on your investment. We can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact us to schedule a free consultation!

Sources:

Realtor.ca –

https://www.realtor.ca/blog/what-2021s-housing-market-looked-like-and-whats-to-come/23723/1361

Deloitte –

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf

NRCAN –

https://www.nrcan.gc.ca/energy-efficiency/homes/make-your-home-more-energy-efficient/keeping-the-heat/section-8-upgrading-windows-and-exterior-doors/15643

National Resources Canada –

https://www.nrcan.gc.ca/energy-efficiency/homes/make-small-changes-add/21850

HGTV –

https://www.hgtv.ca/green-living/photos/native-plants-in-canada-by-province-1938068/

Zillow
http://zillow.mediaroom.com/2021-07-15-Homes-With-Light-Blue-Bathrooms,-Dark-Blue-Bedrooms-Could-Sell-for-Up-to-4,698-More-Than-Expected
Financial Post –

https://financialpost.com/real-estate/average-home-price-in-canada-hits-all-time-high-of-720850

Behr -
https://www.behr.com/colorfullybehr/behr-announces-2022-color-of-the-year-and-trends-palette/
HGTV –

https://www.hgtv.ca/decorating/photos/biggest-home-decor-trends-

2022-1952424/#currentSlide=4

Greenhouse Canada -

https://www.greenhousecanada.com/garden-trends-report-sees-a-definite-shift-in-consumer-

tastes/

Toronto Sun –

https://torontosun.com/life/homes/front-porches-make-a-comeback

Statistics Canada –

https://www150.statcan.gc.ca/n1/pub/45-28-0001/2021001/article/00012-eng.htm

Government of Canada –

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses.html

Accent Walls –

https://www.homedepot.ca/en/home/ideas-how-to/decor/diy-wall-panelling.html

Accent walls -

https://www.homedepot.ca/en/home/ideas-how-to/decor/accent-wall-ideas.html

Reno Assistance -

https://www.renoassistance.ca/en/siding/house-siding-costs/

D’Angelo and Sons –

https://dangeloandsons.com/best-exterior-siding-for-canadian-winter/

A Return to ‘Normal’? The State of Real Estate in 2022

Mon, 03 Jan 2022 17:51:34 GMT

Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that led to a record number of home sales and a historically-high rate of appreciation, as prices soared by a national average of 19.9% year over year, according to the Canadian Real Estate Association.¹

There were signs in the second quarter that the red-hot housing market was beginning to simmer down. In June, the pace of sales slowed while the average sales price dipped 5.5% below the springtime peak.²

But just when the market seemed to be cooling, home prices and sales volume ticked up again in the fall, leading the Royal Bank of Canada to speculate: “Canada’s housing market run has more in the tank.”³

So what’s ahead for the Canadian real estate market in 2022? Here’s where industry experts predict the market is headed in the coming year.

MORTGAGE RATES WILL CREEP UP

The Bank of Canada has signalled that it plans to begin raising interest rates in the “middle quarters” of this year.⁴ What does that mean for mortgage rates?

Expect higher variable mortgage rates to come. In fact, according to industry trade blog Canadian Mortgage Trends, some lenders have already begun raising their variable rates in preparation. And according to the site, “Current market forecasts show the Bank of Canada on track for seven quarter-point (25 bps) rate hikes by the end of 2023, with Scotiabank expecting eight rate hikes.”⁵

Since September, fixed mortgage rates—which follow the 5-year Bank of Canada bond yield—have also been climbing.⁵ Fortunately, economists believe the housing sector is well-positioned to absorb these higher interest rates.

Derek Holt, Scotiabank vice president and head of capital markets economics, told Canadian Mortgage Professional magazine in November, “The large increase in cash balances that occurred over the pandemic combined with the record-high amount of home equity on Canadian balance sheets, to me, paints a picture of a household sector that can manage the rate shock we’re likely to get.”⁴

What does it mean for you? Low mortgage rates can reduce your monthly payment, make it easier to qualify for a mortgage, and make homeownership more affordable. Fortunately, there’s still time to take advantage of historically-low rates. I’d be happy to connect you with a trusted lending professional in our network.

VOLUME OF SALES WILL DECREASE

A record number of homes were sold in Canada last year. The Canadian Real Estate Association estimates that 656,300 home purchases took place, which is an 18.8% increase over 2020.⁶ So it’s no surprise that the pace of sales would eventually slow.

The association predicts that, nationally, the number of home sales will fall by 12.1% in 2022, which would still make 2022 the second-best year on record.¹

It attributes this relative slowdown to affordability challenges and a lack of inventory but expects sales volume to remain high by historical standards. “Limited supply and higher prices are expected to tap the brakes on activity in 2022 compared to 2021, although increased churn in resale markets resulting from the COVID-related shake-up to so many people’s lives may continue to boost activity above what was normal before COVID-19.”⁶

What does it mean for you? The frenzied market we experienced last year required a drop-everything commitment from many of our clients, so a slower pace of sales should be a welcome relief. However, buyers should still be prepared to compete for the best properties. I can help you craft a compelling offer without compromising your best interests.

THE MARKET WILL BECOME MORE BALANCED

In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus, a shift to remote work, and economic stimulus triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labour shortages hindered new construction.

This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to Abhilasha Singh, an economist at Moody’s Analytics, “almost all indicators of housing market activity shot through the roof.” But, she continued, “The housing market is now showing signs of returning to earth.”⁷

The Royal Bank of Canada expects to see demand soften gradually as rising prices and interest rates push the cost of homeownership out of reach for many would-be buyers.³ And while the supply of available homes continues to remain low, according to Singh, “the pace of building in Canada remains elevated compared with historical averages thanks to low interest rates.”⁷

What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with less competition and a slower pace of sales, you’ll have an easier time finding your next home. Reach out for a free consultation so I can discuss your specific needs and goals.

HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE

Nationwide, home prices rose an average of 19.9% in 2021. But the rate of appreciation is expected to slow down in 2022. The Canadian Real Estate Association forecasts that the national average home price will increase by 5.6% to $718,000 in 2022.⁶

Singh of Moody’s Analytics agrees that price growth will slow this year and could “reach a near standstill in late 2022 but avoid any significant contractions.”⁷

However, some experts caution against a “wait and see” mentality for buyers. “Affordability is unlikely to improve [this] year as prices should march higher, even as interest rates creep upwards as well,” Rishi Sondhi, an economist at TD Economics, told Reuters. “We think rate hikes will weigh on, but not upend, demand, as the macro backdrop should remain supportive for sales.”⁸

What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. I can help you get the most for your money in today’s market.

WE’RE HERE TO GUIDE YOU

While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as an experienced local market expert, I can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighbourhood.

If you’re considering buying or selling a home in 2022, contact me to schedule a free consultation. I’ll work with you to develop an action plan to meet your real estate goals this year.

Sources:

1. Toronto Sun -
https://torontosun.com/life/homes/real-estate-market-on-track-to-break-records

2. National Post -
https://nationalpost.com/life/homes/the-great-real-estate-cool-down-has-come

3. Royal Bank of Canada -
https://thoughtleadership.rbc.com/canadas-housing-market-run-has-more-in-the-tank/

4. Canadian Mortgage Professional Magazine -
https://www.mpamag.com/ca/mortgage-industry/industry-trends/how-likely-is-a-canada-housing-crash/315742

5. Canadian Mortgage Trends -
https://www.canadianmortgagetrends.com/2021/11/fixed-rate-increases-costing-todays-homebuyers-over-10000-more-in-interest/

6. Canadian Real Estate Association -
https://www.crea.ca/housing-market-stats/quarterly-forecasts/

7. Moody's Analytics -
https://www.moodysanalytics.com/-/media/article/2021/10-canada-housing-market-outlook.pdf

8. Reuters -
https://www.reuters.com/article/canada-property-poll-idCAKBN2IM06V

20 Unique Home Gifts for Every Person on Your List

Wed, 01 Dec 2021 21:29:12 GMT

Every year, it seems the holidays sneak up on us—and every year, that brings with it the dreaded last-minute gift panic. Finding a present that hits all the right notes can be surprisingly stressful, even when it comes to people you’ve known for years.

But have no fear! I’ve lined up a list of gifts for every “type” on your list. And since I work in real estate, they’re all centred around home life. From the coffee snob to the sports enthusiast, these presents are the perfect way to bring beauty, function or a touch of whimsy to your loved one’s home this holiday season.

FOR THOSE WHO ARE ALWAYS IN THE KITCHEN

We all know someone whose kitchen is their happy place—but once all the basics are covered, it can be hard to find the perfect present. These gifts will be a treat for the chef, baker, or food lover on your list, no matter how well equipped they are.

1. The Coffee Snob

Glass Pour-Over Coffeemaker - $75

Have a java lover on your list who just can’t get their brew right at home? This high-end pour-over system makes a smooth brew that can even be refrigerated and reheated so your recipient can enjoy a perfect cup at any time.

2. The Foodie

Pink Oyster Mushroom Growing Kit - $65

Help your favourite gourmand create restaurant-quality meals with this kit, which allows them to grow delicious mushrooms right in their cupboard. All they’ll need to do is soak the package and then mist it with water for a few days, and voila—delicious organic mushrooms!

3. The Baker

Vintage Etched Cake Stand - $87

If you’re lucky enough to have a fabulous home baker on your list, give a gift that reflects the joy their treats bring to others. This lovely glass cake stand is the platform that a beautifully decorated dessert deserves.

4. The Tea Aficionado

Flowering Tea Set - $35

Your favourite tea lover may have tried all of the herbal blends out there, but we bet they haven’t seen tea like this. This set contains two “blossoms” of tea leaves hand-sewn around flowers that bloom when you place them in the included glass teapot and add hot water.

FOR THOSE WHO WOULD RATHER BE IN THE BACKYARD

For many of us, time outdoors is the ultimate source of rejuvenation. The nature-lover on your list is sure to appreciate these presents that help them maximize that joy in their daily lives.

5. The Gardener

Large Garden Tote - $66

Dedicated gardeners all need a great bag to carry their gear. This tote is attractive and sturdy and will help them keep their home’s exterior beautiful and welcoming.

6. The Flower Lover

Monthly Flower Subscription - starting at $60/month

If your loved one prefers to enjoy their flora without all the work, a delivery of farm-fresh flowers is sure to surprise and delight. And you can keep the joy blossoming year-round with a weekly, semi-monthly or monthly subscription.

7. The Environmentalist

Reusable Stainless Steel Straws - $14

Know someone who is trying to bring less plastic into their home? This set of reusable metal straws means they’ll never have to buy a box of plastic straws again. And the assortment of sizes ensures that they’ll work with anything from a tall glass of water to a to-go mug.

8. The Outdoor Adventurer

Solar Phone Charger - $50

Have a camper or adventurer on your list? This solar-powered phone charger, which comes with a built-in flashlight and compass, is a must-have. It will also make a great addition to their home emergency kit.

FOR THOSE WITH THEIR NOSE TO THE GRINDSTONE

Like it or not, most of us spend a good chunk of our lives working—whether at a job or on projects and chores around the house. These gifts are designed to make that work a bit easier and more enjoyable.

9. The Remote Worker

Home Office Lap Desk - $45

Working at home can be great—in part because you can work from anywhere in the house. The remote worker on your list will appreciate this lap desk with a built-in mouse pad and phone slot, which will allow them to work comfortably from the couch or the bed without overheating their computer.

10. The Back-to-The-Office Worker

Bento Lunch Box - $35

If your loved one is heading back to the office, it doesn’t mean they have to give up the healthy habit of a home-cooked meal. Send them to work with this stylish lunch box packed full of nutritious food.

11. The Do-It-Yourselfer

Laser Measure - $35

The handy person on your list can say goodbye to unwieldy tape measures with this nifty device. It’s perfect for DIY projects of any size.

12. The Clean Freak

UV Sanitizer and Charger - $70

In the COVID-19 era, we’ve all become a little germaphobic. This UV smartphone sanitizer kills bacteria while it charges. Plus, its clever design enables you to hear your phone notifications while the device is in use.

FOR THOSE MOST PASSIONATE ABOUT THEIR HOBBIES

Of course, there’s a lot more to life than work. If you’re gifting a friend or family member who really lights up when they talk about their hobbies, we’ve got you covered.

13. The Sports Enthusiast

Hockey Stick BBQ Set - $61

Looking for a gift for the sports enthusiast in your life that isn’t another jersey? These BBQ tools made from repurposed hockey sticks are a great pick. Perfect for cooking up food to watch with the game!

14. The Bookworm

The Book Lover’s Journal - $19

Know someone who loves to curl up on the couch with a good book? This journal will help the book-lover on your list keep track of what they’ve read, as well as their ever-growing “to-read” list.

15. The Runner

Marathon Map Hydration Bottle- $49

Help the runner you love to stay hydrated (and motivated) with a water bottle inscribed with their favourite race route. It’s perfect for runs around the neighbourhood or just toting around the house.

16. The Tourist

Travel Backpack - $120

Make it easy for the travel lover on your list to bring back souvenirs. This lightweight backpack folds flat so it’s easy to pack but sturdy enough to carry their new treasures all the way home.

FOR THOSE WHO PUT FAMILY FIRST

For many of us, the greatest joy in life comes from our relationship with our family. Help your recipient strengthen and celebrate those all-important connections with these thoughtful gifts.

17. The New Parent

4-in-1 Baby Food Maker - $230

It’s hard to know what to buy for new parents once their registry is cleared out, but if they’re interested in making baby food at home, this tool is a must-have. It makes the process, from steaming to mixing, fast and easy.

18. The Genealogy Fan

DNA Kit - $129

Know someone interested in reconnecting with their ancestral home? This DNA kit can help them trace their geographical heritage and uncover their family history.

19. The Dog Person

Custom Printed Socks - $28

Is your friend’s dog their favourite family member? These adorable socks are sure to put a smile on their face as they cozy up on the couch with their pup. And since you can feature up to two pets on each pair of socks, no one needs to feel left out.

20. The Documentarian

Mini Link Printer - $130

We all have that relative who snaps a million photos at every family event. Help them capture each precious moment with this unique gadget that essentially transforms a smartphone into a Polaroid camera. It makes it easy to customize and print out snapshots to display around the house or insert into a scrapbook for posterity.

READY TO GIVE YOURSELF THE ULTIMATE GIFT?

I want to be your real estate consultant through every season of life. So please don’t hesitate to reach out with questions or to ask for recommendations or referrals any time of year. And when you’re ready to give yourself the gift of a new home, contact me to talk about your options. From finding the right neighbourhood to identifying the amenities that will make the biggest difference to your quality of life, I'm always happy to help.

New Build or Existing Home: Which One Is Right for You?

Mon, 01 Nov 2021 18:08:16 GMT

Homebuyers today are facing a huge dilemma. There simply aren’t enough homes for sale.¹

Nationwide, the number of newly listed homes dipped slightly in September, down 1.6% from August. According to the Canadian Real Estate Association, that’s only about 2.1 months of inventory, which is far less than the five to six months that is generally needed to strike a healthy balance between supply and demand.²

Given the limited number of available properties, if you’re a buyer in today’s market, you may need to expand your search to include both new construction and resale homes. But it can feel a little like comparing apples to oranges.

Let’s take a closer look at some of the factors you should take into account when choosing between a new build or an existing home.

TIMEFRAME

How quickly do you want (or need) to move into your next home? Your timeframe can be a determining factor when it comes to choosing between a new build or resale.

New Build

If you opt for new construction, you may be surprised by how long you have to wait to get the keys to your new digs. Nationally, the average timeline has more than doubled over the past 20 years from 9 to 21 months.¹ And according to a survey by the Canadian Home Builders’ Association, nearly 60% of builders are reporting delays—averaging six weeks—due to supply-chain disruptions brought on by the pandemic.³

These supply shortages have led to soaring prices, causing some builders to cancel contracts or demand more money from unsuspecting homebuyers long after agreements were signed.⁴ Unfortunately, this scenario can throw a major wrench in your moving plans and delay your timeline even further.

To minimize these types of surprises, it’s crucial to have a real estate agent represent you in a new home purchase. We can help negotiate contract terms and advise you about the potential risks involved.

Existing Home

If you're in a hurry to move into your next residence, then you may want to stick to shopping for an existing home.

You can typically move into a resale home on your closing date.⁵ While closing on an existing home can take anywhere from a few weeks to a few months, it’s almost always faster than the time it would take to build a new one.

If you need to move even sooner, it’s sometimes possible to close faster, especially if you’re a cash buyer. In fact, many sellers prefer a quick closing, so it can give you an advantage in a competitive market.

LOCATION

From commute to construction to walkability, there’s a lot to consider when choosing your next neighbourhood.

New Build

Canada is currently undergoing a major residential construction boom, and rural and smaller urban communities have been the first to benefit—primarily because the single-detached homes located in those areas take less time to build.⁶ That means, if you opt for a new single-family home, you could be facing a longer commute and ongoing construction for some time.

If you prefer a multifamily unit, there should be an increased supply coming on the market soon. Over the past year, condos and apartments have accounted for 55% of the housing starts. A growing number of these are located in master-planned communities that combine residential, retail, restaurants, and office space—enabling residents to live, work, and play in a single space.⁷

Existing Home

An existing home is more likely to be located in a neighbourhood with mature trees, established schools, and a deeply-rooted community. As a result, you may find the neighbourhood's trajectory to be more predictable than an up-and-coming area.

But the amenities may be lacking and the infrastructure dated when compared to newer communities. And while some homebuyers love the charm and eclectic feel of an older neighbourhood, others prefer the sleek and cohesive look of a newer development.

MAINTENANCE

Are you a DIY enthusiast, or do you prefer a low-maintenance lifestyle? Set realistic expectations about how much time, effort, and money you want to devote to maintaining your next home.

New Build

When you build a home, everything is brand new. Therefore, in the first few years at least, you can expect less required maintenance and repairs. A 2019 survey found that millennials' homebuying regrets often came down to maintenance issues, rather than other concerns.⁸ So if you would rather spend your weekends exploring your new neighbourhood than fixing a leaky faucet, you may be happier buying a turnkey build.

That doesn't mean, though, that a new home will be entirely maintenance-free. In fact, depending on the builder, you could find yourself repairing more than you expected. Some home builders have reputations for shoddy construction and subpar materials, so it's important to choose one with a solid reputation. We can help you identify the quality builders in our area.

Existing Home

No matter how good a deal you got when you purchased it, you could come to regret buying an older home if it later costs you heavily in unexpected maintenance and repairs. For example, according to the home service professional network HomeStars, the average price to replace an HVAC system is $4,995. And you can expect to pay a similar amount ($4,750) for a new asphalt shingle roof.⁹

Fortunately, there are ways to prepare for these large expenditures ahead of time. We always recommend that our buyers hire a certified home inspector, whether they buy a new or existing home. Once we have the inspector’s report, we can negotiate with the seller on your behalf for reasonable repairs or concessions.

ENVIRONMENTAL IMPACT

On a quest for greener living? If so, there are several factors to consider when deciding on your next home.

New Build

There’s a growing demand for energy-efficient housing, and many builders are rising to the challenge. Currently, more than one million homes in Canada have received an EnerGuide Rating, which measures a home’s energy performance against a benchmark.¹⁰ While all newly-constructed housing must meet the National Building Code requirements, there are a number of certifications that homes can earn if they receive an EnerGuide rating that exceeds these minimum standards.

Examples include the Net Zero label from the Canadian Home Builders’ Association, which is awarded to homes that are 80% more energy efficient than conventional homes and utilize a renewable energy system to fulfill their remaining energy needs. ENERGY STAR and R-2000 are other well-regarded certifications that can be earned by homes that meet certain performance standards. So if energy efficiency is a top priority, a new home with a low EnerGuide rating or recognized designation may be a good choice for you.¹⁰

Existing Home

Of course, a basic tenant of sustainable living is: reduce, reuse, recycle. And since a resale home already exists, it automatically comes with a lower carbon footprint. Research has also shown that remodelling or retrofitting an older home is often greener than building one from scratch.¹¹

With some energy-conservation effort and strategic upgrades, environmentally-conscious consumers can feel good about buying an existing home, as well.

DESIGN

Double vanity? Kitchen island? Whirlpool tub? Must-have design features could drive your decision to build or buy resale.

New Build

With a new home, you can bet that everything will look shiny and perfect when you move in. Builders tend to put a lot of emphasis on visual details and follow the latest design trends. For example, newly-built homes are likely to include features that the majority of today’s buyers want, such as double bathroom sinks, kitchen islands, and walk-in pantries. They’re also less likely to include home theatre rooms or whirlpool tubs, both of which have lost mass appeal.¹²

However, some buyers complain of the cookie-cutter feel of new homes since they are often built with a similar aesthetic. That doesn't mean, though, that you can't incorporate your own style. We can help you negotiate custom features and upgrades to personalize the space and make it feel like your own.

Existing Home

In some of the most coveted neighbourhoods, an older home with classic styling and character can be highly sought after. But unless the previous homeowners have invested in tasteful updates, an existing home is also more likely to look dated.

While some buyers prefer the traditional look and character of an older home, others prefer something more modern. If that’s the case, we can help you find a resale home that leaves enough room in your budget to renovate it to your liking.

WHICHEVER PATH YOU CHOOSE, WE CAN HELP

When it comes to choosing between a new build or an existing home, there’s no one-size-fits-all answer. There are numerous factors to consider, and you may have to make some compromises along the way. But the homebuying process doesn’t have to feel overwhelming.

We’re here to help. And in many cases, our homebuyer guidance and expertise are available at no cost to you! That’s because the home seller or home builder may compensate us with a commission at closing.

Some new-construction homebuyers make the mistake of visiting a builder’s sales office or even purchasing a home without their own real estate representative. But keep in mind, the builder’s agent or “sales consultant” has their best interests in mind—not yours.

We are knowledgeable about both the new construction and resale home options in our area, and we can help you make an informed decision, negotiate a fair price, and avoid mistakes that can cost you time and money. So give us a call today to schedule a free, no-obligation consultation—and let’s start searching for your next home!

Sources:

1. RBC -
https://thoughtleadership.rbc.com/home-builders-are-tackling-canadas-housing-supply-shortage/

2. Canadian Real Estate Association -
https://creastats.crea.ca/en-CA/

3. Financial Post -
https://financialpost.com/real-estate/homebuilders-have-been-busy-during-the-pandemic-but-canada-still-needs-more-housing

4. Better Dwelling -
https://betterdwelling.com/canadian-home-builders-are-asking-buyers-for-more-money-to-finish-building/#_

5. Legal Line -
https://www.legalline.ca/legal-answers/when-can-you-move-into-your-newly-purchased-home/

6. Financial Post -
https://financialpost.com/real-estate/there-has-never-been-more-housing-under-construction-in-canada-but-the-city-that-needs-it-the-most-is-missing-the-boom

7. BC Business -

https://www.bcbusiness.ca/2021-Real-Estate-Report-With-a-push-from-COVID-the-BC-property-market-enters-new-territory

8. Bankrate -

https://www.bankrate.com/real-estate/homebuyer-regret-survey-may-2021/

9. HomeStars -
https://homestars.com/cost-guides/

10. Canadian Home Builders’ Association -

https://blog.chba.ca/2021/05/14/are-all-energy-efficient-homes-the-same/

11. Advanced Materials Research - https://www.researchgate.net/publication/271358381_Comparative_Study_of_New_Construction_and_Renovation_Project_Based_on_Carbon_Emission

12. Canadian Home Builders’ Association -

https://blog.chba.ca/2020/11/26/todays-new-home-buyers-preferences/

9 Tips for Buying and Selling Your Home at the Same Time

Wed, 01 Sep 2021 17:46:02 GMT

Selling your home when you still need to shop for a new one can feel daunting to even the most seasoned homeowner––especially when the demand for new homes keeps rising, but the supply feels like it's dwindling.¹ You're not alone either if you're already feeling drained by the complex logistics of trying to sell and buy a new home all at once.

Searching for a new home can be exciting, but many homebuyers admit that it can also be stressful, especially if you live in an unpredictable market with plenty of competitors. Unfortunately, waiting out a competitive housing market isn’t always the best idea either since homes are in notoriously short supply across Canada, and listings are expected to remain limited in the most coveted neighbourhoods for some time.²

That doesn't mean, though, that you should just throw up your hands and give up on moving altogether. In fact, as a current homeowner, you could be in a better position than most to capitalize on a seller’s market and make a smooth transition from your old home to a new one.

We can help you prepare for the road ahead and answer any questions you have about the real estate market. For example, here are some of the most frequent concerns we hear from clients who are trying to buy and sell at the same time.

“WHAT WILL I DO IF I SELL MY HOUSE BEFORE I CAN BUY A NEW ONE?”

This is an understandable concern for many sellers since the competitive real estate market makes it tough to plan ahead and predict when you'll be able to move into your next home. But chances are, you will still have plenty of options if you do sell your home quickly. It may just take some creativity and compromise.

Here are some ideas to make sure you're in the best possible position when you decide to list your home:

Tip #1: Flex your muscles as a seller.

In a competitive market, buyers may be willing to make significant concessions in order to get the home they want. In some cases, a buyer may agree to a sell and lease back agreement (also known as a "sell house and rent back" option) that allows the seller to continue living in the home after closing for a set period of time and negotiated fee.

This can be a great option for sellers who need to tap into their home equity for a downpayment or who aren’t logistically ready to move into their next home. If you're dealing with an investor rather than a traditional buyer, you may even be able to negotiate a lengthy lease and lower rent payment than your current mortgage.³

However, leaseback agreements can be complex, with important legal, financial and tax issues to consider.⁴ At minimum, a carefully-worded contract and security deposit should be in place in case of any property damage or unexpected repairs that may be needed during the leaseback period.

Tip #2: Open your mind to short-term housing options.

While it can be a hassle to move out of your old home before you’re ready to move into your new one, it’s a common scenario. If you’re lucky enough to have family or generous friends who offer to take you in, that may be ideal. If not, you’ll need to find temporary housing. Check out furnished apartments, vacation rentals and month-to-month leases. If space is an issue, consider putting some of your furniture and possessions in storage.

You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighbourhood better—and lead to a more informed decision about your upcoming purchase.

Tip #3: Embrace the idea of selling now and buying later.

Instead of stressing about timing your home sale and purchase perfectly, consider making a plan to focus on one at a time. Selling before you’re ready to buy your next home can offer a lot of advantages.

For one, you’ll have cash on hand from the sale of your current home. This will put you in a much better position when it comes to buying your next home. From budgeting to mortgage approval to submitting a competitive offer, cash is king. And by focusing on one step at a time, you can alleviate some of the pressure and uncertainty.

“WHAT IF I GET STUCK WITH TWO MORTGAGES AT THE SAME TIME?”

This is one of the most common concerns that we hear from buyers who are selling a home while shopping for a new one, and it’s realistic to expect at least some overlap in mortgage payments. But unless you have a large enough income to comfortably carry two mortgages, you may not pass Canada's beefed up mortgage stress test until you have a contract on your first home. (You can use the Financial Consumer Agency of Canada's Mortgage Qualifier Tool to check your odds.⁵)

Assuming you can secure financing, however, it's still a good idea to examine your budget and calculate the maximum number of months you can afford to pay two mortgages before you jump on a new home. Potential stopgap solutions, such as bridge financing, can also help tide you over if you qualify.

If you simply can’t afford to carry both mortgages for any amount of time, or if you are concerned about passing the mortgage stress test, then selling before you buy may be your best option. (See Tip #3 above.) But if you have some flexibility in your budget, it is possible to manage both a home sale and purchase simultaneously. Here are some steps you can take to help streamline the process:

Tip #4: As you get ready to sell, simplify.

You can condense your sales timeline if you only focus on the home renovations and tasks that matter most for selling your home quickly. For example, clean and declutter all of your common areas, refresh your outdoor paint and curb appeal and fix any outstanding maintenance issues as quickly as possible.

But don't drain unnecessary time and money into pricey renovations and major home projects that could quickly bog you down for an unpredictable amount of time. We can advise you on the repairs and upgrades that are worth your time and investment.

Tip #5: Prep your paperwork.

You'll also save valuable time by filing as much paperwork as possible early in the process. For example, if you know you'll need a mortgage to buy your next home, get pre-approved right away so that you can shorten the amount of time it takes to process your loan.⁶

Similarly, set your home sale up for a fast and smooth transition by pulling together any relevant documentation about your current home, including appliance warranties, renovation permits, and repair records. That way, you're ready to provide quick answers to buyers' questions should they arise.

Tip #6: Ask us about other conditions that can be included in your contracts.

Part of our job as agents is to negotiate on your behalf and help you win favourable terms. For example, it’s possible to add a contract condition known as a "subject to sale" or "sale of property" (SOP) condition to your purchase offer that lets you cancel the contract if you haven't sold your previous home.⁷ This tactic could backfire, though, if you're competing with other buyers. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.

“WHAT IF I MESS UP MY TIMING OR BURN OUT FROM ALL THE STRESS?”

When you're in the pressure cooker of a home sale or have been shopping for a home for a while in a competitive market, it's easy to get carried away by stress and emotions. To make sure you're in the right headspace for your homebuying and selling journey, take the time to slow down, breathe and delegate as much as possible. In addition:

Tip #7: Relax and accept that compromise is inevitable.

Rather than worry about getting every detail right with your housing search and home sale, trust that things will work out eventually––even if it doesn't look like your Plan A or even your Plan B or Plan C. Perfecting every detail with your home decor or timing your home sale perfectly isn't necessary for a successful home sale and compromise will almost always be necessary. Luckily, if you've got a good team of professionals, you can relax knowing that others have your back and are monitoring the details behind the scenes.

Tip #8: Don't worry too much if your path is straying from convention.

Remember that rules-of-thumb and home-buying trends are just that: they are estimates, not facts. So if your home search or sale isn't going exactly like your neighbours' experience, it doesn't mean that you are doomed to fail.

It's possible, for example, that seasonality trends may affect sales in your neighbourhood. So a delayed sale in the summer or fall could affect your journey––but not necessarily. According to the Canadian Real Estate Association, the housing market used to be more competitive during the fall and spring and less competitive during the winter. But it's not a hard and fast rule and real estate markets across Canada have seen major shifts in recent years.⁸ Every real estate transaction is different. That's why it's important to talk to a local agent about your specific situation.

Tip #9: Enlist help early.

If possible, call us early in the process. We'll not only provide you with key guidance on what you should do ahead of time to prepare your current home for sale, we'll also help you narrow down your list of must-haves and wants for your next one. That way, you'll be prepared to act quickly and confidently when you spot a great house and are ready to make an offer.

It's our job to guide you and advocate on your behalf. So don't be afraid to lean on us throughout the process. We’re here to ease your burden and make your move as seamless and stress-free as possible.

BOTTOMLINE:COLLABORATE WITH A REAL ESTATE PROFESSIONAL TO GET TAILORED ADVICE THAT WORKS FOR YOU

Buying and selling a home at the same time is challenging. But it doesn't have to be a nightmare, and it can even be fun. The key is to educate yourself about the market and prepare yourself for multiple scenarios. One of the best and easiest ways to do so is to partner with a knowledgeable and trustworthy agent.

A good agent will not only help you evaluate your situation, we will also provide you with honest and individually tailored advice that addresses your unique needs and challenges. Depending on your circumstances, now may be a great time to sell your home and buy a new one. But a thorough assessment may instead show you that you're better off pausing your search for a while longer.

Sources:

1. Canadian Real Estate Association (CREA) National Statistics -
https://creastats.crea.ca/en-CA/

2. Scotiabank Global Economics Housing Note - https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing-note--may-12-2021-.html

3. CBC News -
https://www.cbc.ca/news/canada/toronto/housing-real-estate-toronto-market-sell-stay-rent-1.4075093

4. Appraisal Institute of Canada - https://www.aicanada.ca/article/possible-valuation-issues-with-life-lease-housing/

5. Financial Consumer Agency of Canada -
https://itools-ioutils.fcac-acfc.gc.ca/MQ-HQ/MQ-EAPH-eng.aspx

6. Government of Canada - https://www.canada.ca/en/financial-consumer-agency/services/mortgages/preapproval-qualify-mortgage.htm

7. RBC Bank -
https://www.rbcroyalbank.com/mortgages/selling-buying-home.html

8. Canadian Real Estate Association - https://www.realtor.ca/blog/are-spring-and-fall-housing-markets-a-thing-of-the-past/20405/1361

5 Factors That Reveal Where The Real Estate Market Is Really Headed

Tue, 03 Aug 2021 14:27:45 GMT

In a July release, the Canadian Real Estate Association reported that home sales had fallen for three months in a row after reaching an all-time high in March.¹ So could one of the world’s hottest real estate markets finally be headed for a downturn?

We wouldn’t bet on it. That’s because even though sales have slowed, it was still the strongest June on record—and 13% higher than last year.¹

"Don't be fooled — this is still an extremely strong level of demand," Bank of Montreal Economist Robert Kavcic told CBC News. "Home sales have backed off extreme levels seen in recent months, but demand is still historically strong and driving strong price growth. We believe that sales activity will continue to gradually cool in the year ahead, but it's going to take higher interest rates to soften the market in a meaningful way."¹

So what can we expect from Canadian real estate? Here are five factors that illustrate where the housing market is today and is likely heading tomorrow.

HOME PRICE INCREASES MAY LEVEL OFF NEXT YEAR

The Canadian Real Estate Association predicts the national average home price will reach $677,774 by the end of 2021, which would be a 19.3% increase over last year. “While market conditions have eased a little in recent months, they nonetheless continue to favour sellers to some extent in virtually all local markets,” the association says.²

But for the remainder of 2021 and into 2022, the association anticipates pricing trends will head toward more normal territory. “Limited supply and higher prices are expected to tap the brakes on activity in 2022 compared to 2021,” according to the association.²

That translates into the association’s forecast of only a 0.6% uptick, to $681,500, in the national average home price for 2022.² If that happens, it could prompt some buyers who had been reluctant to make purchases this year to enter the market next year.

What does it mean for you?

If you’re a homeowner, now might be the time to look at selling. That’s because the number of available homes continues to be relatively low, and price appreciation has begun to slow. We can help you prepare and market your home to take advantage of the current seller’s market.

HOME SALES ARE TAPERING OFF

If the 2021 home market in Canada is a wildfire, then 2022 could be more like a campfire. The Canadian Real Estate Association anticipates a slowdown in home sales activity in 2022 following an extremely busy 2021.³

An estimated 682,900 properties are expected to trade hands through Canadian Multiple Listing Service systems in 2021, which would be an increase of 23.8% from 2020, the association says.³

Next year is shaping up to be much less active, with national home sales forecast to decline 13% to around 594,000 properties in 2022.³

“This easing trend is expected to play out across Canada,” the association says, “with buyers facing both higher prices and a lack of available supply, while at the same time the urgency to purchase a home base to ride out the pandemic continues to fade alongside the virus itself.”³

The “easing trend” is already happening. Across the country, a record-high 69,702 homes were sold in March. But just a month later, the national number of homes sold slipped 12.5% to 60,967.⁴ Home sales volume dropped another 7.4% in May to 56,156.⁵

“One of the world’s [most active] housing markets appears to be slowing down,” the Bloomberg news service proclaimed in June in a report about the Canadian home market.⁶

What does it mean for you?

Are you struggling to buy a home in today’s highly competitive market? If so, 2022 might be a good time to pursue a purchase because you may face less competition. However, one drawback of waiting is that mortgage rates are expected to go up. We can help put you on the right path toward homeownership, whether you want to buy now or next year.

SUPPLY OF HOMES REMAINS LOW

The housing shortage in Canada persists.

Before the pandemic, the number of available homes nationally sat at a 14-year low and the number of months of inventory had fallen below four months, according to the Canadian Real Estate Association.³

Inventory below four months puts the supply in “seller’s market territory,” the association says.³Inventory refers to the number of months it would take for the current supply of homes on the market to be sold at the existing pace.⁷

In June, the Canadian Real Estate Association reported the national inventory of available homes was close to two months, reflecting an “unprecedented imbalance of supply and demand.”³ National inventory hit a record low of 1.7 months in March, compared with the long-term average of more than five months.⁷

“At a time where so many markets are struggling with historically low inventory, sales activity depends on a steady stream of new listings each month,” the association says.⁷

What does it mean for you?

A tight supply of available homes puts sellers in a strong position as long as demand stays high. So, if you’re a homeowner, placing your home on the market when demand exceeds supply could bring you a higher price. We can help you figure out when to sell so that you extract the maximum value from your home.

HOME CONSTRUCTION ON THE VERGE OF STABILIZING

Newly built homes add, of course, to the supply of homes available to buyers. And it appears that home construction in Canada is on the upswing.⁸

For all of 2021, construction is projected to begin on as many as 230,000 new homes in Canada, up from a little over 217,800 in 2020, according to the Canada Mortgage and Housing Corp. (CMHC). Even more homes could get underway in 2022 (as many as 234,500) and 2023 (231,900).⁸

“Housing starts will stabilize at levels consistent with household formation by the end of 2023,” according to CMHC.⁹

What does it mean for you?

More newly built homes coming on the market could mean an opportunity for buyers, as construction boosts the supply of available properties and eases the strain on demand. Bottom line: An influx of new homes may open more doors to homeownership. We can give you a hand in locating a new or existing home that fits your budget and your needs.

MORTGAGE RATES ARE SET TO RISE

Low mortgage interest rates help entice buyers to make a home purchase. That’s certainly been the case in Canada in recent months. However, mortgage rates are poised to creep up this year and next year, and even into 2023.¹⁰

An analysis from Mortgage Sandbox indicates five-year Canadian mortgage rates are expected to remain low by historical standards, but they are expected to continue rising in 2022 and 2023. The analysis indicates the fixed rate for a five-year mortgage could climb to 3% in the third quarter of 2022.¹¹

Low mortgage rates typically make it easier for homebuyers to qualify for a mortgage, as well. But on June 1, the Office of the Superintendent of Financial Institutions raised the mortgage “stress test” qualifying rate from 4.79% to 5.25%.¹²

According to the Toronto Sun, “It was intended in part to slow down the overheated housing market and likely in part because inflation (and higher interest rates) are on the horizon.”¹²

In a recent report, the British Columbia Real Estate Association forecast, “rising Canadian inflation — and the extent to which that inflation is a temporary phenomenon — is set to shape how rates evolve over the next year.”¹³

What does it mean for you?

Given the prospect that Canadian mortgage rates may go up during the rest of this year and into 2022, now might be the right time to think about borrowing money to buy a home. When interest rates rise, you pay more to borrow money. Whether you’re buying a new home or up for a renewal, you can lower your risk by locking in a fixed-rate rather than variable-rate mortgage.

ARE YOU THINKING OF BUYING OR SELLING?

It can be tough to sort out the Canadian housing market—where are home prices heading, are mortgage rates going up, is it the right time to buy or sell? We can help you answer all of those questions, and more. We then can work with you to come up with a plan tailored to your unique situation. Let us be your partner in the homebuying or home-selling journey.

Sources:

1. CBC -
https://www.cbc.ca/news/business/crea-june-stats-1.6103715

2. Canadian Real Estate Association -
https://www.crea.ca/housing-market-stats/quarterly-forecasts/

3. Canadian Real Estate Association - https://www.creacafe.ca/quarterly-forecast-housing-activity-to-continue-easing-over-second-half-of-2021-and-into-2022/

4. Global News -
https://globalnews.ca/news/7868251/canada-home-sales-down-april/

5. Global News -
https://globalnews.ca/news/7950863/canada-home-sales-may-crea/

6. Bloomberg - https://www.bloomberg.com/news/articles/2021-06-15/canada-housing-worlds-second-bubbliest-market-starts-to-look-fatigued

7. Canadian Real Estate Association -
https://creastats.crea.ca/en-CA/

8. Canada Mortgage and Housing Corp. - https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/housing-markets-data-and-research/market-reports/housing-market/housing-market-outlook/2021/housing-market-outlook-61500-spring-2021-en.pdf

9. Canada Mortgage and Housing Corp. - https://www.cmhc-schl.gc.ca/en/blog/2021/housing-markets-expected-moderate-risks-remain

10. Global News -
https://globalnews.ca/news/7962282/rising-interest-rates-canadas-housing-market/

11. Mortgage Sandbox -
https://www.mortgagesandbox.com/mortgage-interest-rate-forecast

12. Toronto Sun -
https://torontosun.com/opinion/columnists/wild-new-stress-test-rate-makes-it-more-difficult-for-home-buyers-to-qualify-for-mortgage

13. British Columbia Real Estate Association - https://www.bcrea.bc.ca/wp-content/uploads/mortgagerateforecast.pdf

How to Bridge the Appraisal Gap in Today’s Real Estate Market

Fri, 09 Jul 2021 16:43:48 GMT

If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs,¹ the appraisal process—historically a standard part of a home purchase—is receiving more attention than ever.

That’s because some sellers are finding out the hard way that a strong offer can fizzle quickly when an appraisal comes in below the sales price. Thus, many sellers favour buyers who can guarantee their full offer price—even if the property appraises for less. For the buyer, that could mean a large down payment or extra cash on hand to cover the gap.

Whether you’re a buyer or a seller, it’s never been more important to understand the appraisal process and how it can be impacted by a quickly appreciating and highly competitive housing market. It’s also crucial to work with a skilled real estate agent who can guide you to a successful closing without overpaying (if you’re a buyer) or overcompensating (if you’re a seller). Find out how appraisals work—and in some cases, don’t work—in today’s unique real estate environment.

APPRAISAL REQUIREMENTS

An appraisal is an objective assessment of a property’s market value performed by an independent licensed appraiser. Mortgage lenders use appraisals to lower their risk of loss in the event a buyer stops paying their loan. It provides assurance that the home’s value meets or exceeds the amount being lent for its purchase.

In certain circumstances, an appraisal can be avoided. For example, when a buyer purchases mortgage insurance because they have a down payment of less than 20%. In that instance, the mortgage insurance would cover the lender’s loss in a case of default. Or, if a buyer makes a large down payment, a lender may waive their right of appraisal.²

Additionally, sometimes a lender will use an automated valuation model (AVM) to estimate a property’s value. According to the Appraisal Institute of Canada, “AVMs are computer programs that provide real estate market analysis and estimates of value.” If the sales price falls comfortably within the AVM’s range of value, a lender may skip the formal appraisal.³

However, in the event a formal appraisal is required, it will need to be conducted by a licensed and authorized appraiser. In most cases, the appraiser will analyze the property’s condition and review the value of comparable properties that have recently sold. Using this information, they will determine the home’s current market value.Mortgage borrowers are usually expected to pay the cost of an appraisal.²

APPRAISALS IN A RAPIDLY SHIFTING MARKET

Problems can arise when the appraisal comes in lower than the sales price. And while low appraisals are not common, they are more likely to happen in a rapidly appreciating market, like the one we’re experiencing now.⁴ That’s because appraisers use comparable sales (commonly referred to as comps) to determine a property’s value. These could include homes that went under contract weeks or even months ago. With home prices rising so quickly, today’s comps may be lagging behind the market’s current reality. Thus, the appraiser may be basing their assessment on stale data, resulting in a low valuation.⁵

According to Kevin Lonsdale, Executive Director of the Canadian National Association of Real Estate Appraisers, the best valuations should be based on “data, not emotion. This emotional process where people are outbidding each other creates a disconnect and that then becomes a comparable six months down the road. It’s very difficult to value properties based on what the market wants to pay for them.”⁶

HOW ARE BUYERS AND SELLERS IMPACTED BY A LOW APPRAISAL?

In a balanced market, a financing condition is a standard inclusion in a home purchase offer. It enables the buyer to make the closing of the transaction dependent on their ability to secure a mortgage. And in many cases, the loan is contingent on a satisfactory appraisal, wherein the value of the property is at or near the purchase price.

But in today’s market, sellers often hold the upper hand because the current demand for homes exceeds the available supply. That’s why many buyers are choosing to exclude the financing condition altogether, as a way to sweeten their offer in a competitive bidding process.⁵

However, this approach can leave a buyer vulnerable if the appraisal comes back lower than expected. Without a financing condition, the buyer will be obligated to come up with enough cash to bridge the gap between the contract price and the appraised value—or be forced to walk away from the transaction and potentially lose their deposit.

It may seem, then, that a buyer carries the sole risk of a low appraisal. However, the sellers will have wasted time and money with little to show for it. And they run the risk that the market may have cooled or interest in their home may have waned by the time they relist.

Sellers should keep this in mind when evaluating offers. The offer price should never be the sole consideration. We weigh a range of factors when advising our clients, including a buyer’s conditions, mortgage qualifications, financial resources, and deposit size, among others.

According to Lonsdale, overheated blind bidding in Canadian real estate means that there is additional pressure on everyone involved in the transaction. With a tight timeline, there’s not always enough time for proper due diligence, putting stress on the transaction and on the buyer and seller involved.⁶

MITIGATE YOUR RISK WITH THE BEST REPRESENTATION

There’s never been a market quite like this one before. That’s why you need a master negotiator on your side who has the skills, instincts, and experience to get the deal done...no matter what surprises may pop up along the way. If you’re a buyer, we can help you compete in this unprecedented market—without getting steamrolled. And if you’re a seller, we know how to get top dollar for your home while minimizing hassle and stress. Contact us today to schedule a complimentary consultation.

Sources:

1. Financial Post -
https://financialpost.com/real-estate/canadian-home-sales-prices-surge-to-new-record-in-march

2. Mortgages.ca -
https://mortgages.ca/what-you-should-know-about-home-appraisals

3. Appraisal Institute of Canada -
https://professional.sauder.ubc.ca/re_creditprogram/course_resources/courses/content/452/AVMPositionPaper.pdf

4. Teranet–National Bank House Price Index™ -
https://housepriceindex.ca/#maps=c11

5. The Globe and Mail -
https://www.theglobeandmail.com/business/article-rapid-increase-in-home-prices-puts-buyers-in-bind-when-appraisals-dont/

6. Personal Interview: Kevin Lonsdale, Executive Director, Canadian National Association of Real Estate Appraisers. 4 Jun 2021.

Could Rising Home Prices Impact Your Net Worth?

Tue, 01 Jun 2021 15:40:08 GMT

Learn how to determine your current net worth and how an investment in real estate can help improve your bottom line.

Among its many impacts, COVID-19 has had a pronounced effect on the housing market. Low home inventory and high buyer demand have driven home prices to an all-time high.¹ This has given an unexpected financial boost to many homeowners during a challenging time. However, for some renters, rising home prices are making dreams of homeownership feel further out of reach.

If you’re a homeowner, it’s important for you to understand how your home’s value contributes to your overall net worth. If you’re a renter, now is the time for you to figure out how homeownership fits into your short-term goals and your long-term financial future. An investment in real estate can help you grow your net worth, build wealth over time, and gain a foothold in the housing market to keep pace with rising prices.

What is net worth?

Net worth is the net balance of your total assets minus your total liabilities.Or, basically, it is what you own minus what you owe.²

Assets include the cash you have on hand in your chequing and savings accounts, investment account balances, salable items like jewelry or a car and, of course, your home and any other real estate you own.

Liabilities include your total debt obligations like car loans, credit card debt, the amount you owe on your mortgage, and student loans. In addition, liabilities would include any other payment obligations you have, like outstanding bills and taxes.

How do I calculate my net worth?

To calculate your net worth, you’ll want to add up all of your assets and all of your liabilities. Then subtract your total liabilities from your total assets. The balance represents your current net worth.

Total Assets – Total Liabilities = Net Worth

Ready to calculate your net worth? Contact us to request an easy-to-use worksheet and a free assessment of your home’s current market value!

Keep in mind that your net worth is a snapshot of your financial position at a single point in time. Your assets and liabilities will fluctuate over both the short term and long term. For example, if you take out a loan to buy a car, you decrease your liability with each payment. Of course, the value of your asset (the car) will depreciate over time, as well. An asset that is invested in stocks or bonds can be even less predictable, as it’s subject to daily fluctuations in the market.

As a homeowner, you enjoy significant stability through your monthly real estate investment, also known as your home mortgage payment. While the actual value of your home can fluctuate depending on market conditions, your mortgage payment will decrease your liability each month. And unlike a vehicle purchase, the value of your home is likely to appreciate over time, which can help to grow your net worth. Right now, your asset may be worth significantly more than it was this time last year.³

If you’re a homeowner, contact us for an estimate of your home’s market value so that you can factor it into your net worth calculation. If you’re not a current homeowner, let’s talk about how homes in our area have appreciated over the last several years. That way, you can get an idea of how a home purchase could positively affect your net worth.

How can real estate increase my net worth?

When you put your real estate dollars to work, it’s possible to grow your net worth, generate cash flow, and even fund your retirement. We can help you realize the possibilities and maximize the return on your investment.

Property Appreciation

Generally, property appreciates in one of two ways: either through changes to the overall market or through value-added modifications to the property itself.

1. Rising prices

This type of property appreciation is the one that many homeowners are enjoying right now. Buyer demand is at an all-time high due to a combination of low interest rates and limited housing inventory.⁴At other times, rising home prices have been attributed to different factors. Certain local conditions—like a new commercial development, influx of jobs, or infrastructure project—can encourage rapid growth in a community or region and a corresponding rise in home values. Historically, home prices have been shown to experience an upward trend punctuated by intermittent booms and corrections.⁵

2. Strategic home improvements

Well-planned and executed home improvements can also impact a home’s value and increase homeowner equity at the same time. The type of home improvement should be appropriate for the home and in tune with the desires of local buyers.

For example, a tasteful exterior remodel that is in keeping with the preferences of local home buyers is likely to add significant value to a home, while remodelling the home to look like the Taj Mahal or a favourite theme park attraction will not. A modern kitchen remodel tends to add value, while a kitchen remodel that is overly expensive or personalized may not provide an adequate return on investment.

Investment Property

You may be used to thinking of investments primarily in terms of stocks and bonds. However, the purchase of a real estate investment property offers the opportunity to increase your net worth both upon purchase and year after year through appreciation. In addition, rental payments can have a positive impact on your monthly income and cash flow. If you currently have significant equity in your home, let's talk about how you could put that equity to work by funding the purchase of an investment property.

1. Long-term or traditional rental

A long-term rental property is one that is leased for an extended period and typically used as a primary residence by the renter. This type of real estate investment offers you the opportunity to generate consistent cash flow while building equity and appreciation.⁶

As an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

2. Short-term or vacation rental

Short-term rentals are often referred to as vacation rentals because they are primarily geared towards recreational travellers. And as more people start to feel comfortable travelling again, the short-term rental market is poised to become a more popular option than ever in certain markets. In fact, with travellers continuing to seek out domestic options in lieu of international travel, this may be the perfect time to consider an investment in a short-term rental property.⁷

Investing in a short-term rental offers many benefits. If you purchase an investment property in a top tourist destination, you can expect steady demand from travellers while taking advantage of any non-rented periods to enjoy the home yourself. You can also adjust your rental price around peak demand to maximize your cash flow while building equity and long-term appreciation.

To reap these benefits, however, you’ll need to understand the local laws and regulations on short-term rentals. We can help you identify suitable markets with investment potential.

WE’RE HERE TO HELP

Ready to calculate your personal net worth? Contact us for an easy-to-use worksheet and to find out your home’s current value. And if you want to learn more about growing your net worth through real estate, we can schedule a free consultation to answer your questions and explore your options. Whether you’re hoping to maximize the value of your current home or invest in a new property, we’re here to help you achieve your real estate goals.

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Financial Post -
https://financialpost.com/real-estate/canadian-home-sales-prices-surge-to-new-record-in-march

2. Forbes -
https://www.forbes.com/advisor/investing/what-is-net-worth/

3. Global Property Guide -
https://www.globalpropertyguide.com/North-America/Canada/Price-History

4. Canadian Real Estate Association -
https://creastats.crea.ca/en-CA/

5. Trading Economics -
https://tradingeconomics.com/canada/housing-index

6. Canadian Apartment -

https://www.reminetwork.com/articles/hopeful-outlook-for-canadas-rental-market/

7. MoneySense -
https://www.moneysense.ca/spend/real-estate/is-now-the-time-to-buy-a-vacation-home/

Market Report - April 2021

Sat, 08 May 2021 16:40:57 GMT

FINDING A NEW HOME FOR YOUR NEXT STAGE OF LIFE

Sat, 01 May 2021 14:26:54 GMT

Imagine the first place you lived as a young adult. Now imagine trying to fit your life today into that space. Not pretty, right?

For most of us, our housing needs are cyclical. A newly independent adult can find freedom and flexibility in even a tiny apartment. That same space, to a growing family, would feel stifling. For empty nesters, a large home with several unused bedrooms can become impractical to heat and clean. It’s no surprise that life transitions often trigger a home purchase.

While your home-buying journey may not look like your neighbour’s or friend’s, broad trends can help you understand what to keep in mind as you house hunt. No one wants to regret their home purchase, and taking the time now to think about exactly what you need can save a lot of heartache later.

The Newly Married or Partnered Couple

The financial and legal commitment of both traditional and common-law marriage has provided a springboard to homeownership for centuries. And while the average age of first marriage in Canada is around 30, the average age of first home purchase has shifted even later to 36.^1,2 No matter your age, there are some key factors that you should consider when you are ready to enter into your first home purchase together.

Affordability is Key

There’s no doubt about it—with home prices that just keep climbing, many first-time buyers feel that the deck is stacked against them when it comes to homeownership. But stepping onto the property ladder can be more doable than many realize, especially in today’s low mortgage rate environment.

While many buyers are holding out for their dream home, embracing the concept of a starter home can open a lot of doors. In fact, that’s a popular approach for first-time homebuyers to take. Fifty percent of first-time Canadian buyers report that they plan to eventually upgrade to a larger home.³

Chosen carefully, a starter home can be a great investment as well as a launchpad for your life together. If you focus on buying a home you can afford now with strong potential for appreciation, you can build equity alongside your savings, positioning you to trade up in the future if your needs change.³

Taking Advantage of Low Mortgage Rates

Canadian mortgage rates hit record lows in summer 2020, and while they are gradually creeping back up, now is still an ideal time to purchase your first home together.⁴ A lower interest rate can save you a bundle over the life of your loan, which can significantly increase the quality of home you can get for your money.

But what if both halves of a couple don’t have good credit? You still have options. First, boosting a credit score can be easier than you think—simply paying your credit cards down below 35% of your limit can go a long way.⁵ But if that’s not enough to raise your score, you might consider taking out the mortgage in only the better-scoring partner’s name. The downside is that applying for a mortgage with only one income will reduce your qualification amount. And if you take that route, make sure you understand the legal and financial implications for both parties should the relationship end.

Commute and Lifestyle Considerations

Whether you’ve lived in a rental together for years or are sharing a home for the first time, you know that living together involves some compromises. But there are certain home features that can make life easier in the future if you identify them now. The number of bathrooms, availability of closet space, and even things like kitchen layout can make a big difference in your day-to-day life and relationship.

Your home’s location will also have a significant impact on your quality of life, so consider it carefully. What will commuting look like for each of you? And if you have different interests or hobbies—say, museums vs. hiking—you’ll need to find a community that meets both your needs. Need some help identifying the ideal location that fits within your budget? We can match you with some great neighbourhoods that offer the perfect mix of amenities and affordability.

The Growing Family

Having kids changes things—fast. With a couple of rowdy preteens and maybe some pets in the mix, that 1,600 square foot home that felt palatial to two adults suddenly becomes a lot more cramped. Whether you’ve just had your first child or are getting to the point where your kids can’t comfortably share a bedroom any longer, there’s plenty to consider when you’re ready to size up to a home that will fit your growing family.

The Importance of School Districts

For many parents, the desire to give their kids the best education—especially once they are in middle and high school— surpasses even their desire for more breathing room. In fact, homebuyers report that school district is one of their top concerns.⁶ Of course, homes in the best-rated districts tend to be more expensive and harder to nab. But when push comes to shove, many buyers with kids prefer to sacrifice a bit of space to find a home in their desired location.

When you’re moving to a new community, it can be tough to figure out what the local schools are actually like—and online ratings leave a lot to be desired. That’s why talking to a local real estate agent can be a gamechanger. We don’t just work in this community; we know it inside and out. We’ll be happy to share our first-hand knowledge of the local schools and which neighbourhoods are most welcoming to families.

Lifestyle Considerations

For many families, living space is a key priority. Once you have teenagers who want space to hang out with their friends, a finished basement or a rec room can be a huge bonus (and can help you protect some quieter living space for yourself).

A good layout can also make family life a lot easier. For example, an open plan is invaluable if you want to cook dinner while keeping an eye on your young kids playing in the living room. And if you think that you might expand your family further in the future, be sure that the home you purchase has enough bedrooms and bathrooms to accommodate that comfortably.

Functionality

Try to think about how each room will fit into your day-to-day. Are you anticipating keeping the house stocked to feed hungry teenagers? A pantry might rise to the top of the list. Dreading the loads of laundry that come with both infants and older kids (especially if they play sports)? The task can be much more bearable in a well-designed laundry room. Imagine a typical day or week of chores in the house to identify which features will have the biggest impact.

Chances are, you won’t find every nice-to-have in one home, which is why identifying the must-haves can be such a boon to the decision-making process. We can help you assess your options and give you a sense of what is realistic within your budget.

The Empty Nesters

When we talk about empty nesters, we usually think about downsizing. With kids out of the house, extra bedrooms and living space can quickly become more trouble than they’re worth. While the average buyer with young kids is most likely to trade up to a larger home, older buyers often sell the family home and move into a smaller, less expensive home. In fact, more than half of Canadian Baby Boomers consider the area where they live too expensive for retirement.⁷

Maintenance and Livability

What factors are driving your decision to move? Identifying those early in the process can help you narrow down your search. For example, do you want to have space for a garden, or would you prefer to avoid dealing with lawn care altogether? What about home maintenance? In many cases, a newer home will require less maintenance than an older one and a smaller one will take less time to clean. It’s not surprising that condos are among the most popular types of homes for Baby Boomers given they require less upkeep than single-family homes.⁷

Lifestyle Considerations

Many empty nesters have retired or are nearing retirement age. This could be your chance to finally pursue hobbies and passions that were just too hard to squeeze into a 9-5. If you’re ready to move, consider how you’d like to spend your days and seek out a home that will help make that dream a reality. For some, that might mean living near a golf course or a beach. For others, being able to walk downtown for a nice dinner out is the priority. And with more time to spend as you wish, proximity to a supportive community of friends and family is priceless.

Ability to Age in Place

Let’s face it—we can’t escape ageing. If you’re looking for a home to retire in, accessibility should be top-of-mind. This may mean a single-story home or simply having adequate spaces on the first floor to rearrange as needed. While buying a home that you plan to renovate from the start is a viable option, being forced into renovations (because of the realities of ageing) a few years down the road could seriously dig into your nest egg. Location matters, too—if your family will be providing support, are they close by? Can you easily reach necessities like grocery stores and healthcare? While it’s tempting to put it out of our minds, a few careful considerations now can make staying in your home long-term much more feasible.

Finding the Right Home for Right Now

One thing is for sure—life never stands still. And your housing needs won’t, either. In fact, the average Canadian homeowner will own 4.5 to 5.5 houses over their lifetime.⁸ At each milestone, a careful assessment of your housing options will ensure that you are well-positioned to embrace all the changes to come.

Whatever stage you’re embarking on next, we’re here to help. Our insight into local neighbourhoods, prices, and housing stock will help you hone in on exactly where you want to live and what kind of home is right for you. We’ve worked with home buyers in every stage of life, so we know exactly what questions you need to ask. Buying a home—whether it’s your first or your fifth—is a big decision, but we’re here to support you every step of the way.

Sources:

1. The Canadian Encyclopedia -
https://www.thecanadianencyclopedia.ca/en/article/marriage-and-divorce

2. Mortgage Broker News -
https://www.mortgagebrokernews.ca/news/sorry-gen-z-the-average-firsttime-buyer-in-canada-is-36-years-old-335685.aspx

3. Savvy New Canadians -
https://www.savvynewcanadians.com/starter-home-vs-permanent-home/

4. Mortgage Broker News -
https://www.mortgagebrokernews.ca/news/are-the-days-of-low-interest-rates-coming-to-an-end-for-canadian-homebuyers-338140.aspx

5. Government of Canada -
https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/improve-credit-score.htm

6. Housing Sentiments and Trends Report 2017 -
https://marketing.zoocasa.com/zoocasa-housing-trends-report-2017.pdf

7. Royal LePage -
https://www.newswire.ca/news-releases/more-than-14-million-boomers-across-canada-expect-to-buy-a-home-in-the-next-five-years-690334391.html

8. Zolo -
https://www.zolo.ca/blog/how-many-homes-will-you-buy