There’s an old adage in real estate: location, location, location. But ever since the Bank of Canada began its series of inflation-fighting interest rate hikes last year, a new mantra has emerged: mortgage rates, mortgage rates, mortgage rates.

Higher rates had the immediate impact of cooling homebuyer affordability and demand. But when the Bank of Canada announced in early March that it would put additional rate changes on hold, the country's once-frozen housing market began to thaw. Since then, Canadian home sales have bounced higher than expected. 

However, many homeowners are still putting off listing. After successfully riding out the past year's turbulence, some homeowners are waiting for prices to more fully recover. Others are holding back because they are unable to port their mortgages and feel beholden to their existing, lower rates. As a result, real estate activity isn't nearly as robust this year as it might have been had more sellers listed their homes. 

As economist Shaun Cathcart of the Canadian Real Estate Association (CREA) notes, “With interest rates at a top, and home prices at a bottom, it wasn’t all that surprising to see buyers jumping off the sidelines and back into the market in April. Supply, on the other hand, has been sluggish, hence the price gains from March to April seen all over the country.”¹

So what can we expect from the Canadian real estate market in the coming months and years? Here are several key indicators that help to paint a picture of the market and where it’s likely headed.

HOME SALES ARE PICKING UP FASTER THAN EXPECTED

After an extra chilly fall and an arctic New Year, the spring real estate season has so far proved warmer than expected, with home sales picking up substantially in recent months.² 

Despite still-high mortgage rates and pinched affordability, a significant number of home buyers are showing up anyway and placing offers. As a result, home sales jumped by double digits in April, according to the CREA, climbing 11.3%.¹ So far, that's the third monthly increase CREA has recorded this year. In March, sales picked up by 1.4% after a 2.3% increase in February.³   

Even more notable: this year's sales numbers have been comparable to those recorded in 2018 and 2019—before pandemic-era rates helped supercharge the market.³  

Other supporting factors are also helping to push up sales this year, including historically fast population growth and a sharp increase in rent prices.^4,5 

But in addition to tight supply, one more factor is still weighing down market activity: buyers are continuing to face significant headwinds that limit their overall buying power, including comparatively high interest rates and a prohibitive mortgage stress test.⁶ As a result, a significant number are still struggling to get approved for large enough mortgages to compete.⁷ 

What does it mean for you?  The pace of sales is still slower than it was during the pandemic. Don't be surprised, though, if you find yourself competing with multiple offers. With a warming market, it's important to start your home search prepared. We can help you evaluate your options, strengthen your offer, and make an informed purchase. 

Many Canadian home buyers are still facing severe affordability challenges. If you plan to sell your home, it will be crucial to enlist the help of a skilled agent who knows how to draw in qualified buyers. Reach out for a copy of our multi-step Property Marketing Plan.

PROPERTY VALUES ARE STABILIZING

Prices are down, year-over-year, but they haven't fallen nearly as much as some analysts speculated. Instead, home prices have so far remained remarkably resilient. 

According to the CREA, the actual (not seasonally adjusted) national average sale price is down by just 12.3% compared to April 2022, when home prices were still near an all-time high.¹ 

Even more significant: prices are no longer dropping. Instead, they have moved higher as more buyers emerge from the sidelines. In April, the MLS® Home Price Index jumped on a month-over-month basis for the second time in more than a year, climbing by a healthy 1.6% in April after a 0.2% increase in March.^1,8  

A tight housing supply is also putting upward pressure on prices. So are sharply higher rents, which have helped make mortgage payments more attractive. As a result, the Canada Mortgage and Housing Corporation (CMHC) expects prices to remain above pre-pandemic levels.⁹ 

Prices probably won't climb too much higher, though: these days, Canadians need bigger down payments or incomes to keep up with the higher rates and prices. So if prices climb too far out of touch with buyers' finances, sellers could have a tough time attracting qualified prospects.⁹ 

What does it mean for you? Prices have softened in certain market segments compared to last year—and motivated sellers are out there and willing to make deals. We can help you find your next home and negotiate a great price. But keep in mind that your odds of affording a home may diminish in the coming months as high rates bump up against a firming market. So it's a good idea to get a mortgage pre-approval before you start your search. 

If you’re a homeowner, property values are picking up again thanks to demand outpacing supply. So you’re still likely sitting on a nice pile of equity. Reach out for a free assessment to find out how much your home is currently worth.

LISTING INVENTORY IS LOW, BUT NEW CONSTRUCTION IS ON THE RISE

Tight inventory is one of the biggest factors impacting the housing market, agree experts. In fact, the CREA says that inventory is tighter now than it's been in decades.¹ 

After dropping to a 20-year low, new supply picked up somewhat this spring, climbing on a month-over-month basis by 5.8% in March and by another 1.6% in April.¹ But it's still well below what's typical this time of year, making it tough for buyers to find a suitable home. 

One big reason for the trickle in existing homes for sale: reluctant sellers.¹⁰ Some would-be sellers with more restrictive mortgages are holding back from listing their homes because they are reluctant to give up their lower mortgage rates.¹¹ Others are waiting for prices to significantly increase. But since fear is a driving factor for many real estate holdouts, this year's warming market could offer some helpful reassurance.

Reluctant sellers aren't the only reason, though, for why inventory is so limited. Sluggish home building is also a major factor impacting supply. For example, new home inventories are at historic lows, deepening the housing crunch.¹² 

Housing starts have also been weak for much of this past year. But a springtime burst in activity led to a 22% jump in April, according to the CMHC, renewing hopes that builders may still be able to overcome this year's higher rates.¹³ As BMO's Douglas Porter noted, “New home building is also showing some signs of surprising resiliency.”² 

What does it mean for you?  Inventory is tight, but less frenzied competition compared to last year means more choice and negotiating power for buyers. If you’ve had trouble finding a home in the past, it may be time to take another look. We can help you explore both new and existing homes in our area.

Sellers are enjoying reduced competition right now, as well. However, the longer you wait to list, the more competition you’re likely to face. And if you feel locked in by your current, lower mortgage rate, consider this: If you roll your equity gains into a down payment on your next home, you could possibly lower your monthly payment. Reach out to discuss your options.

MORTGAGE RATES HAVE TRENDED DOWN

Average mortgage rates are still higher now than they have been in years, but they have generally trended down since the beginning of the year. As a result, buyers willing to commit to a three- or five-year fixed-rate mortgage are finding better deals. Some mortgage lenders are also offering seasonal promotions.¹⁴

But even with somewhat lower rates, many buyers are finding that they still can't qualify for mortgages at current prices. So pinched affordability is still a major factor influencing the housing market.¹⁰  

Canada's economic forecast is also fairly cloudy this summer, so the path for future rate changes is uncertain.  For example, the Bank of Canada's decision to pause rate hikes earlier in the year gave many borrowers some much-needed breathing room, helping to stabilize the housing market. But given how sticky inflation has remained, it's possible that Bank of Canada officials could change their minds and announce at least one more rate hike.  

Similarly, buyers hoping to see rates fall more significantly this year are likely to be disappointed.¹⁵ With the rate of inflation still well above central bankers' target range of 2%, the Bank of Canada is unlikely to cut its benchmark rate anytime soon (especially since borrowers have so far weathered this year's higher interest rates quite well).¹⁶ 

What does it mean for you?  Mortgage rates aren't nearly as high as they were this fall and winter, which is great news for buyers. But, a decrease in rates could correspond with an increase in competition and prices. If you start searching now, you’ll be prepared to make an offer when the time is right. We can help you negotiate a great deal and potential seller incentives.

If you’re planning to sell, this is good news for you, too. But, there are several factors to consider when determining the right time to list your home. Reach out for a consultation so we can help you chart the best course.

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, we 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, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals.

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: 

1. Canadian Real Estate Association (CREA) -
   https://www.crea.ca/media-hub/news/demand-continues-to-outpace-supply-as-canadian-home-sales-jump-in-april/ 
2. BMO Economics -
   https://economics.bmo.com/en/publications/detail/e182379e-0d22-4a7b-9374-96004f9c8019/ 
3. Canadian Real Estate Association (CREA) -
   https://www.crea.ca/media-hub/news/canadian-home-sales-rise-in-february-despite-drop-in-new-supply/ 
4. Real Estate Magazine -
   https://realestatemagazine.ca/canadas-record-population-growth-poses-challenges-for-housing-market/ 
5. Canadian Mortgage Trends -
   https://www.canadianmortgagetrends.com/2023/05/average-rent-in-canada-is-up-20-over-the-last-two-years-rentals-ca/ 
6. RBC Thought Leadership -
   https://thoughtleadership.rbc.com/game-on-for-canadas-housing-market/ 
7. Canadian Mortgage Professional (CMP) -
   https://www.mpamag.com/ca/mortgage-industry/industry-trends/how-much-additional-income-do-canadians-need-to-buy-a-home/443946 
8. Canadian Real Estate Association (CREA) -
   https://www.crea.ca/media-hub/news/canadian-home-sales-continue-to-rise-in-march-as-markets-tighten/ 
9. Canada Mortgage and Housing Corporation (CMHC) -
   https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/market-reports/housing-market/housing-market-outlook 
10. ​​RBC Thought Leadership -
    https://thoughtleadership.rbc.com/green-shoots-in-canadas-housing-market/?utm_medium=email&utm_source=salesforce
11. Realtor.ca -
    ​​https://www.realtor.ca/blog/then-vs-now-realtors-share-their-take-on-spring-buyers-pre-pandemic-vs-today/30999/1362 
12. Canada Mortgage and Housing Corporation (CMHC) -
    https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/market-reports/housing-market/housing-supply-report 
13. Canada Mortgage and Housing Corporation (CMHC) -
    https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-data/data-tables/housing-market-data/monthly-housing-starts-construction-data-tables 
14. CTV News -
    https://www.ctvnews.ca/business/as-the-bank-of-canada-pauses-rate-hikes-mortgage-rates-in-canada-creep-downward-1.6355742 
15. CBC -
    https://www.cbc.ca/news/business/bank-of-canada-april-decision-1.6807771
16. CIBC Capital Markets -
    https://cibccm.com/en/insights/articles/economic-insights-will-higher-rates-break-the-consumers-back/

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. We 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? We 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 We 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. We 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 We 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 WE 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. We will work with you to devise a plan to overcome your financial constraints. Then, we’ll help you find a home that not only excites you but also fits your budget and lifestyle. Give us a call to get started with a free exploratory consultation. 

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:

1. Financial Post -
   https://financialpost.com/executive/executive-summary/housing-affordability-crisis-canada-worse 
2. CBC -
   https://www.cbc.ca/news/canada/british-columbia/housing-investors-canada-bc-1.6743083 
3. MoneySense -
   https://www.moneysense.ca/spend/real-estate/income-properties/legal-secondary-suite-or-basement-apartment/ 
4. Statistics Canada -
   https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713a-eng.htm 
5. 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 
6. CIBC -
   https://economics.cibccm.com/cds?flag=E&id=9dc124d8-9764-4c1d-83b4-9e89a5d568b8 
7. Government of Canada -
   https://www.canada.ca/en/financial-consumer-agency/services/buying-home.html 
8. A Place to Call Home -
   https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive 
9. Statistics Canada -
   https://www150.statcan.gc.ca/n1/daily-quotidien/220921/dq220921b-eng.htm

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 we’ve rounded up our 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:

1. Designate a day of the week for each task—then, add them to your calendar so you can’t forget. 
2. 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.
3. 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 our 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:

1. 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
2. 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. 
3. 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.
4. 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 us a call for a list of our 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:

1. Store a broom, dustpan, and vacuum on each floor of your home so they’re easy to reach.
2. Stash containers of disinfecting and glass wipes under every sink for a mid-week wipe-down.
3. Place extra bags beneath the liner of your garbage pails, so you’ll have a replacement ready when you take out the trash.
4. 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.³ Here are a few ideas to get you started:

1. Install coat hooks and shoe racks in the entryway for easy access.
2. Add a key caddy or shelf for essential items to get you out the door.
3. Hang a letter bin to capture mail and newspapers as soon as you walk into the house.
4. 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:

1. 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.
2. 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.
3. 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. 
4. 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:

1. 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.
2. Load and run the dishwasher every night so you can empty it the next morning.
3. 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 we’ve found that using household items in innovative ways can help keep mess and clutter under control.⁵ Here are a few of our favourite swaps:

1. Place a magazine file in your kitchen for cookbooks, takeout menus, and meal kit cards.
2. Hang a pocket-style shoe organizer inside your pantry door to store granola bars, spice jars, and other small items.
3. Separate dress and athletic socks by turning an old shoe box into a drawer divider.
4. Repurpose jam jars by using them to store office supplies or bathroom essentials.
5. 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!

WE’RE 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, we’re not just here to help you buy or sell a home. We 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. 

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:

1. Healthline -
   https://www.healthline.com/health-news/5-health-benefits-of-spring-cleaning
2. Forbes -
   https://www.forbes.com/health/mind/mental-health-clean-home/  
3. My Domaine -
   https://www.mydomaine.com/house-cleaning-schedule 
4. Housewife How-Tos -
   https://housewifehowtos.com/clean/10-tips-to-keeping-a-clean-house/
5. Better Homes and Gardens -
   https://www.bhg.com/decorating/storage/projects/simple-solutions/

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! We’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 us a call! We’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.

1. 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.

2. 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 our complete Property Marketing Plan.

3. 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 we take on a new listing, we always walk through it with the homeowner and point out any repairs, updates, or decluttering that should be done to maximize its sales potential. We also share tips on how to prep the property before each showing.

In some cases, we 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. We can help you determine the appropriate budget and effort required to get your home sold.

4. 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. We are local market experts and have access to the latest market data and comparable sales in your neighbourhood. We 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!

5. 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. We 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. We 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? Our 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. We 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:
1. Financial Post -
https://financialpost.com/executive/executive-summary/bank-of-canada-interest-rate-impact-housing-mortgage
2. National Association of Realtors -
https://store.realtor/2022-nar-profile-of-home-buyers-and-sellers-download/
3. CREA -
https://www.creacafe.ca/is-home-staging-necessary-when-listing-a-property/
4. Money Sense -
https://www.moneysense.ca/spend/real-estate/what-home-sellers-should-know-about-staging/
5. The Globe and Mail -
https://www.theglobeandmail.com/real-estate/toronto/article-opportunistic-real-estate-buyers-step-to-the-stage-as-prices-decline/
6. Real Estate Magazine -
https://realestatemagazine.ca/putting-for-sale-by-owner-into-perspective/

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.

We’ve rounded up six trends that we think 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.

1. 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.

2. 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.

3. 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.⁵ Thinking 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.

4. 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.^7,8 Behr’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.

5. 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.

6. 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.

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. We’re happy to share our insights on the upgrades that will make it easier (or more difficult!) to sell your home. Give us a call for a free consultation!

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:

1. Realtor.ca -
https://www.realtor.ca/blog/design-trends-to-watch-out-for-in-2023/29256/1367
2. Sudbury.com -
https://www.sudbury.com/village-life/15-major-interior-design-trends-for-2023-6301745
3. Home Builder Canada -
https://www.homebuildercanada.com/news/news221123-Kitchen-trends.htm
4. Realtor.ca -
https://www.realtor.ca/blog/8-kitchen-trends-to-watch-for-in-2023/29442/1367
5. The Spruce -
https://www.thespruce.com/2023-lighting-trends-6891412
6. HGTV.ca -
https://www.hgtv.ca/2023-home-decor-trends/
7. Sherwin Williams -
https://www.sherwin-williams.com/content/colorforecast/colormix-2023/color-of-the-year-2023
8. Dulux -
https://www.dulux.ca/pro/colour/2023-paint-colour-design-trends
9. Behr -
https://www.behr.com/consumer/inspiration/2023-coty/

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 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 free 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 us to discuss your goals and budget. We 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 us 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 free 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, we 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 us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.

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:

1. 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#
2. Reuters -
   https://www.reuters.com/markets/bank-canada-set-hike-rates-may-signal-it-is-near-end-tightening-cycle-2022-12-07/
3. CBC -
   https://www.cbc.ca/news/business/bank-of-canada-1.6677004 
4. 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
5. Reuters -
   https://www.reuters.com/business/finance/bank-canadas-inflation-fight-made-harder-bond-yields-fall-2022-12-15/ 
6. Canadian Mortgage Professional -
   https://www.mpamag.com/ca/news/general/whats-the-bank-of-canada-rate-likely-to-be-in-2023/430755 
7. Global News -
   https://globalnews.ca/news/9341825/bank-of-canada-tiff-macklem-speech-dec-12/ 
8. CIBC Capital Markets -
   https://economics.cibccm.com/cds?id=6f402711-69b3-46a5-afc8-91ede34fe1fd&flag=E
9. BMO Capital Markets -
   https://economics.bmo.com/media/filer_public/04/01/040155ce-0cb2-49ac-b63e-def8e66d4c05/outlookcanada.pdf
10. Financial Post -
    https://financialpost.com/real-estate/mortgage-rates-soar-higher-interest-rate-increase
11. Financial Post -
    https://financialpost.com/real-estate/canada-house-prices-to-tumble
12. RBC Special Housing Reports -
    https://thoughtleadership.rbc.com/quiet-fall-housing-market-across-canada/
13. CBC News -
    https://www.cbc.ca/news/business/rent-inflation-november-1.6650777
14. CBC News -
    https://www.cbc.ca/news/canada/toronto/rental-costs-canada-1.6685602

You don't have to break the bank to celebrate the holidays in style—even in this season of inflation. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out extra savings.

For example, you can trim your energy bills by up to 20% just by sealing air leaks in your home.¹ Other small fixes—such as swapping old light bulbs for LEDs and plugging electronics into a powerstrip—can boost your yearly savings enough to pay off some of your holiday budget.

And thanks to a pandemic-era boom in online shopping, it is easier than ever to find deals on new and pre-owned furniture, thrifted gifts, DIY decor, and more. Even secondhand stalwarts like Goodwill have joined the digital fray, making it a cinch to score gently-used treasures at extra-low prices.² 

You won't be the only one bargain-hunting your way to a more financially-stable New Year. Multiple surveys have found that inflation is not only chilling people's spending, it's also prompting shoppers to search for better deals and creative ways to reduce their bills.³ 

Here are some strategies you can use to boost your holiday budget by trimming household expenses: 

1. Hunt for Deals on Groceries

If you're finding it harder than it used to be to serve your family dinner on a budget, you're not alone. With grocery prices rising at a record pace, many families are struggling to control costs on food staples, such as meat, dairy, produce, and grains.⁴ 

That's made pulling off holiday gatherings especially stressful lately. But don't despair: Even with inflation, retailers are still giving motivated shoppers plenty of opportunities to whittle down their bills. 

The key is to pay attention to the cost of each item on your shopping list—not just the most expensive—and look for easy swaps and discounts. For example, try buying non-perishable items in bulk, especially when they’re on sale, and only in-season produce. Or trade name-brand goods for less expensive options from a store's private label. As you tap into your inner bargain hunter, you could be surprised by what you save when you’re more mindful of your selections. 

And unlike in the old days, you no longer have to clip your way through paper flyers to snag a bargain. Instead, you can save both time and money by scouting for deals online, digitally clipping coupons, and earning cash back through special apps and browsers. For example, coupon aggregation sites, like Flipp, and shopping apps—such as Checkout 51 and Rakuten—make it easy to score discounts and cash back on a variety of purchases, including groceries.

Also, check to see if your neighbourhood grocer posts their weekly flyers online or if Save.ca has published flyers from other nearby stores. If you're hosting a holiday party, the markdowns you find can help you narrow your food and recipe choices, based on what's currently on sale.

2. Prep Your Home for Holiday Guests With Pre-Owned Finds

You don't have to sacrifice style for the sake of preserving your holiday budget either. If you're expecting company this year and would like to add some festive flair to your home, you can do so inexpensively—especially if you're willing to decorate with items that are secondhand. 

Thrifting is back in vogue, with an increasing number of shoppers preferring pre-owned furniture and home goods. The number of Canadians who shop secondhand has grown.⁵ In fact, one study found that nearly three-quarters of Canadians now buy pre-owned goods of some type. ⁶ Plus, buying used isn’t just a great way to save money, it also helps the environment by keeping reusable items out of landfills.

Fortunately, it’s become easier to score secondhand deals online. For example, you can scout consumer marketplaces on Facebook and Kijiji. Or you can take advantage of neighbourhood freecycles and “Buy Nothing” groups. And a number of thrift shops now have e-commerce sites, including major chains, like Goodwill. 

If you're handy with a paintbrush or have some basic carpentry skills, you can also modernize some of your existing furniture by upcycling it yourself. Or, if you enjoy crafting, search through your own recycling or sewing bin for raw material to make one-of-a-kind decorations.

Don't stress yourself out, though, if you don't have the time or money to dress your home the way you hoped. Your house can still feel festive and inviting, even if it's not completely done up.

3. Forgo Major Renovations in Favor of DIY Home Improvements 

Holidays are always a tricky time to undergo big renovations. But with ongoing worker and material shortages, now is an especially bad time to commit. Inflated costs can add thousands to your reno budget—and unnecessary stress to your holiday. 

Instead of suffering through an ill-timed remodel, you're better off saving this time of year for simpler, less expensive projects you can do yourself. 

One winter-perfect upgrade to consider: Build a DIY fire pit so that you and your guests can roast marshmallows and relax in the cozy comfort of your backyard. You can also add some extra ambiance by hanging energy-efficient LED outdoor string lights that change from white to colourful. These are festive enough for the holidays, but also versatile enough to use year-round.

Or, if you'd rather curl up by an indoor fire, channel your DIY energy into a fireplace upgrade. Adding a wooden beam to the top of your mantel can add an extra layer of coziness. Alternatively, re-tiling or painting your fireplace surround can lend contemporary flair. 

Just be sure to stick to DIY projects that you know you can do a quality job on—especially if your changes will be difficult to reverse. Feel free to reach out for a free assessment to find out how your planned renovations could impact your home’s resale value.

4. Invest in Home Maintenance Projects That Cut Your Utility Bills 

You can save money by completing basic home maintenance tasks, such as swapping your furnace filter and updating your lightbulbs. But if you really want to lower your bills this winter, consider projects that make your home more energy efficient. 

Research by the trade group NAIMA found that most homes in Canada are under-insulated, which wastes energy and money.⁷ The group estimates that Canadians can potentially save hundreds of dollars per year just by retrofitting their homes. Luckily, there are plenty of DIY insulation projects that you can complete in just a few days. For example, some projects you can do relatively quickly include:

• Insulating your attic or basement crawl space
• Weatherstripping doors and windows
• Sealing areas around the house that may be leaking air, including electrical outlets and fireplaces

The savings you get from these projects can really add up. Natural Resources Canada estimates that walls alone account for roughly 20% of heat loss in homes, so they’re a rich target for tackling costly sources of air leakage.⁸ And thanks to the Canada Greener Homes Initiative, you can also save a bundle this year by investing in certain energy-efficient upgrades and claiming a tax rebate.⁹ Be sure to check with us about any municipal or provincial rebates and incentives that may be available, too, before getting started on a project. 

5. Use Expense Tracking to Boost Your Holiday Budget 

To avoid overextending yourself during the holidays, one of the best things you can do is track your income and expenses. If your monthly budget is usually tight, you may need to make some adjustments to free up cash for holiday expenditures.

For example, here's a sample budget worksheet that we created. Start by adding in your expenses: Under the “Typical” column, you can list your standard expenses, and under the “Adjusted” column, list any areas where you could cut back on spending. 

Then consider how your standard wages may be adjusted this month by extra shifts, additional tips, or an end-of-year bonus. By decreasing your spending and/or increasing your income, you can build room in your budget for holiday gifts and gatherings.

Feel free to utilize this worksheet as a template that you can customize to your needs, or ask us for a PDF copy that you can print out and use right away. 

WE’RE HERE TO HELP

We would love to help you meet your financial goals now and in the year ahead. Whether you want to find lower-cost alternatives for home renovations, maintenance, or services, we are happy to provide our insights and referrals. 

And if you’re saving up to buy a new home, we can help with that, too. This is the perfect time to score a great deal because only the most motivated homebuyers and sellers are active in the market right now. So reach out to schedule a free consultation. We can fill you in on some of the exciting programs and incentives we’re seeing that help make homeownership more affordable.

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: 

1. CTV News -
   https://www.ctvnews.ca/lifestyle/8-tips-for-saving-on-your-home-heating-this-winter-1.6116384
2. CBC News -
   https://www.cbc.ca/news/world/goodwill-online-store-1.6605808 
3. MoneyWise -
   https://moneywise.ca/news/economy/canadians-plan-to-spend-less-as-retailers-brace-for-shopping-season
4. Statistics Canada -
   https://www150.statcan.gc.ca/n1/pub/62f0014m/62f0014m2022014-eng.htm
5. Statista -
   https://www.statista.com/statistics/998634/consumers-who-have-shopped-at-thrift-stores-canada/-​​ 
6. Retail Insider -
   https://retail-insider.com/retail-insider/2022/08/resale-going-mainstream-in-canada-with-consumers-particularly-valuing-brand-owned-resale-report/ 
7. NAIMA Canada -
   https://www.globenewswire.com/en/news-release/2016/10/27/1263857/0/en/New-Study-Reveals-Most-Homes-in-Canada-Are-Significantly-Under-Insulated.html
8. Natural Resources Canada -
   https://www.nrcan.gc.ca/energy-efficiency/homes/make-your-home-more-energy-efficient/keeping-the-heat/chapter-7-insulating-walls/15641
9. Government of Canada -
   https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/start-your-energy-efficient-retrofits/plan-document-and-complete-your-home-retrofits/eligible-grants-for-my-home-retrofit/23504