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I am sharing with you highlights of some of the hottest home design trends experts are seeing this year. I also offer information on the ways some homeowners are incorporating colour and natural materials to create a warm and relaxed luxe environment in their home.
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
The Bank of Canada has decided to maintain the overnight rate target at 4.5%, the Bank Rate at 4.75%, and the deposit rate at 4.5%. The Bank is also continuing its policy of quantitative tightening.
The global economic environment is consistent with the Bank's January Monetary Policy Report, with inflation decreasing due to lower energy prices and global growth continuing to slow.
In Canada, economic growth was flat in the fourth quarter of 2022, and there was a significant slowdown in inventory investment. Consumption, government spending, and net exports all increased, but household spending was impacted by restrictive monetary policy, and business investment weakened.
The labour market remains tight, with employment growth strong, but productivity has declined. Inflation decreased to 5.9% in January due to lower energy prices, but price increases for food and shelter remain high.
The Bank expects CPI inflation to come down to around 3% in the middle of this year. The Bank will continue to monitor economic developments and the impact of past interest rate increases, and is prepared to raise the policy rate further if necessary to restore inflation to the 2% target.
The Bank is committed to achieving price stability for Canadians.
Reach out with your questions about how this impacts your home buying or selling decision. And if you need a mortgage broker, I can connect to you a like-minded individual.
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
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Sitting down and planning a home renovation can quickly become overwhelming when costs start adding up. Even with a budget, you’ll likely find yourself going over which is why it’s crucial to add in that 10-20% contingency fund. It’s totally possible to renovate affordably if you invest a bit of time and effort. Here’s how to renovate your home on a budget without sacrificing quality.
Increase Efficiency, Not Size
Storage can be a problem and needing to renovate to gain more can be costly. Recognizing and equipping the room for maximum utility will save you from having to remove walls entirely. If it’s vital to enlarge the size of the room, inquire if it’s at all possible to remove a wall instead of creating an addition. This helps will that brand-new feeling and improves flow without costing a ton. Be sure to check if the wall you want to remove is wall-bearing (if so, it will be more difficult to move and will cost you).
Refinish Instead of Replace
As a homeowner, it’s easy to get caught up on the cosmetics and when something looks worn down and old, instinct is to rip it down and start over. There is, however, ways to refresh a space without completely redoing it. A fresh coat of paint goes a long way; you can add an accent wall with a splash of a fun colour or keep things neutral throughout with lively décor.
Kitchen backsplashes have become increasingly easier for homeowners to install themselves which would help revamp the space. A runner down the hallway or on stairs can hide large marks and give new life to high-traffic areas. Fresh caulking around a tub can go a long way in making your bathroom look new and old furniture can be spruced up by refinishing the wood or reupholstering the material. The possibilities truly are endless.
Reuse and Recycle
What you’re tired of in one space might refresh another. Kitchen cabinets can be used in a basement kitchenette or in the garage and knobs and light switches are easily interchangeable. Simple rearranging can completely change the look and feel of a room without costing a dime
If you are willing to put in a little time, to reap big savings, search online or thrift stores for items at a fraction the price.
Are there disadvantages of recycling? Several contractors will not work with salvaged items, or homeowner-supplied items in general, because they don’t want to assume the liability if something goes wrong. However, if you are doing most or all of the work yourself, you can find plenty of materials simply by looking around a little bit.
DIY When Possible
It’s always worth doing at least some of the work yourself. There are plenty of jobs that can be done, such as demolition, painting, sanding, or insulating to save yourself some money.
But before you begin, make sure you have a plan. If you are not specific about what you want both with yourself and any contractors, you will end up costing yourself more money by potentially performing renovations that you don’t end up loving.
Reach out with any questions anytime! It would be a privilege to serve as your Realtor.
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
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Source: How to Renovate Your House on a Budget | Re/Max | February 17th, 2023
For homeowners, a historic home is a unique opportunity to live in a local piece of history. They do, however, have issues that newly constructed homes do not have. Committing to a historic home is a big decision and you should be informed of the care that will be required.
What is a Historic Home?
They’re 50+-year-old residential buildings with some sort of heritage value and include private homes, commercial buildings that consist of residential units, landmarks, and entire districts or neighborhoods depending on criteria. The criteria is at least 50 years old (with some exceptions) and meet 1 of 4 criteria:
- It is connected to significant historical events.
- It is connected to the lives of one or more significant individuals.
- It is considered an embodiment of a particular master or historic style.
- It has provided or is likely to provide important historical information.
Historic buildings can be found everywhere and some neighborhoods are even designated as historic areas. They can be a competitive market so as a homebuyer you’ll want your finances in order prior to house hunting.
Benefits of Owning a Historic Home
Things to Consider Before You Buy
In recent years, home sellers have had the advantage but since the market conditions are expected to shift, questions may be arising about what a balanced market is. During the peak of the pandemic, cities across Canada experienced extremely high home prices, from single-family residential properties in highly populated areas to townhomes in rural communities.
Homebuyers had to overcome bidding wars which resulted in some buyers ditching best practices, including home inspections. The market swiftly changed to a seller’s market due to unprecedentedly low mortgage rates. The Bank of Canada (BoC) continues to raise interest rates and the housing market in Canada is moving towards a balanced market. So, what does this mean?
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
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Source: What Is A Balanced Market | Re/Max | January 14th, 2023
"The RE/MAX 2023 Canada Housing Barometer Report examined average price and new mortgage values published by CMHC-Equifax Canada in 12 major markets from British Columbia to New Brunswick, to compare loan-to-value (LTV) ratios between Q3 2012 and Q3 2022.
The report found that LTV ratios had declined in 67% of markets (8) over the past decade, with the greatest drops noted in London and Moncton (21%), Halifax (15%), Hamilton (14%), Toronto (10%) and Ottawa-Gatineau (9%). 4 markets, including Calgary, Edmonton, Saskatoon, and Regina, were up over 2012 levels, a trend that is set to reverse in the years ahead as Alberta and Saskatchewan’s economic engines gain momentum and drive home-buying activity.
The lowest loan-to-value ratios were found in the most expensive markets, including Vancouver (50%), Toronto (53%), and Hamilton (54%) while the highest loan-to-value ratios were found in Regina (88%) and Edmonton (83%). Nationally, loan-to-value ratios hovered at 57%."
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
Read More | Canada Housing Market Risk Low, Despite Short-Term Contraction | Re/Max
Most home sellers have two main objectives: to sell quickly and for the highest price. The beauty of owning real estate (whether it’s a principal residence or an investment property) is that historically, it has yielded solid returns to Canadians who are in it for the long haul. Indeed, equity gains in Canadian real estate have been notable in some particularly hot markets, with the proceeds used to fund everything from the purchase of a bigger and better home, to retirement, travel, an investment strategy, or life’s next big milestone – whatever that may be.
A number of major cities across Canada have experienced tight market conditions over the last few years, but a slew of interest rate increases in 2022 have eased demand, prompting a market shift in many Canadian regions. In fact, balanced conditions are expected to occur in 60% of Canadian housing markets this year. This means sellers are unlikely to see the same frantic buyer competition that defined Canadian housing markets during the pandemic.
There are many possible reasons houses don’t sell, ranging from broader economic and market conditions, right down to the condition of the property itself. Here are some of the most common reasons houses don’t sell, and how to avoid them.
Reasons Houses Don’t Sell
1. Wrong Listing Price
To you, your home may be priceless. After all, you have an emotional attachment to the place you call “home.” However, to a buyer, that is not the case. Ultimately, it doesn’t really matter what the homeowner, or even the listing agent, thinks a house is worth. The only thing that matters is what the buyer is willing to pay.
The right listing price will likely be a combination of a few factors, such as the market conditions, the home’s condition and the seller’s circumstances. Home Value Estimators are readily available online and are a great resource to give you a ballpark idea of what your home is worth. I will pull recent sales of comparable homes in the same neighbourhood. Then, based on the condition of the home and how desperate you are to sell, I will recommend a listing price.
The listing price is the first impression homebuyers will have of your home. When a buyer decides to start shopping for a new home, step one is creating a budget. With this number in hand, step two is to browse online listings. Within that price range. Success can come down to a few dollars over or below that specific threshold. This is why it’s important to be realistic when it comes to pricing the home.
While overpricing a home is a concern, so too is underpricing it. Buyers may wrongly assume that a home priced well below market value has something wrong with it, or that the seller is hoping for a bidding war – both turn-offs for homebuyers.
2. Bad Listing Photos
Believe it or not, bad listing photos can be a reason that your house is not selling. Although many homebuyers will still drive around on a Saturday or Sunday afternoon in search of “Open House” signs, most shoppers today take a more targeted approach to their home hunt. They hit the streets armed with a budget, their list of liveable locations, the features their future home should have, and specific addresses of homes for sale that are worth an in-person tour. So, how do you get on that list?
Enter the real estate photographer and this adage: a picture is worth a thousand words. I will arrange for listing photos that will show your home in the best possible light.
On the flip side, don’t be a catfish. Nothing is worse than falling in love with the listing photos and taking the time to attend a showing, only to discover that it isn’t as it's presented. Good and honest listing photos are a critical part of your selling strategy.
3. Didn’t Stage the Property
While it’s important to showcase your listing in a realistic way, it never hurts to do a little primping before putting up the “For Sale” sign. Some buyers have trouble seeing past what a home is and visualizing what it could be. Staging a home can help highlight its best features, minimize the worst, and give prospective homebuyers some inspiration as to how they can use the space.
Remember that as a home seller, you’re not only selling the property but you’re also selling the idea of “home.” This is why putting an empty house on the market can be a big mistake. An empty house may leave the impression that it is smaller than it actually is, or that it’s uncared for.
4. Unfavourable Market Conditions
When it comes to selling your home, there are many things within your control. Others are wild cards, as far as the seller is concerned. Factors such as a growing or declining population, economic conditions, interest rates, housing demand and supply, and even the weather can all be reasons why a home is not selling.
What you can control, however, is when you choose to sell your home. I can help you time the market. I have the market experience to speak to what is happening in the real estate landscape, and to predict what may happen down the road.
While you can’t control things like the job and housing markets, these are still important factors to consider when deciding if now is a good time to sell. Determine when your house is most appealing to homebuyers. The return of spring tends to rouse homebuyers out of hibernation. Similarly, keep your ear to the ground for other circumstances that may affect home-buying trends, such as an upcoming employment boom or new developments in your area that may increase housing demand.
Sometimes it can be tough to pinpoint why a home isn’t selling. At other times, it’s painfully clear. I'll provide important insight into what you’re doing (or not doing) that may help or hinder the sale.
5. Didn’t work with a professional.
Selling a home can be complicated, even under favourable market conditions. Know that market conditions can change quickly, impacted by everything from local, national and international economies, to population fluctuations and even the weather. Especially in uncertain times, a little professional help can go a long way.
While most homebuyers and sellers will only have a limited number of transactions under their belt, an experienced listing agent has handled hundreds of home sales under a variety of market conditions. Let me guide you through the twists and turns of the housing market.
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Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
Source: 5 Reasons Houses Don't Sell | Re/Max | January 20th, 2023
The target for the overnight rate increased to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. Quantitative tightening will continue. Inflation remains high and broadly based globally, but is trending down in several countries, reflecting lower energy prices and improvements to supply chains.
In the US and Europe, slowing economies are proving to be more resilient than at the time of the Bank’s October Monetary Policy Report (MPR). China’s lifting of COVID-19 restrictions revised the growth forecast and poses an upside risk to commodity prices. Russia’s war on Ukraine is still a source of uncertainty and financial conditions remain restrictive. The Canadian dollar has been relatively stable against the US dollar.
It’s estimated that the global economy grew about 3.5% in 2022, but will slow to about 2% in 2023 and then grow to 2.5% in 2024. Economic growth in Canada is stronger and the economy remains in excess demand. The labour market is tight as the unemployment rate is near historic lows. Businesses, however, are reporting ongoing difficulty finding workers. There’s evidence that the restrictive monetary policy is slowing activity, especially household spending. Services and business investments are expected too slow in addition to weaker foreign demand helping to allow supply to catch up with demand.
It’s estimated that Canada’s economy grew by 3.6% in 2022 but is expected to stall through to the middle of 2023, and then picking up again later in the year. GDP is expected to grow 1% in 2023 and 2% in 2024. Inflation has declined from 8.1% in June to 6.3% in December, reflecting lower gasoline prices and durable goods.
Canadians are still feeling the hardship of high inflation in their essential household expenses, with persistent price increases for food and shelter. Short-term inflation is expected to remain elevated but inflation is projected to come down significantly this year.
Governing Council decided to increase the policy interest rate by a further 25 basis points. Governing Council is prepared to increase the policy rate further if needed to return inflation to the 2% target, and remains resolute in its commitment to restoring price stability for Canadians.
Reach out with your questions in regards to how this impacts your home buying or selling decision.
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
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“The bulk of the downward adjustment to sales reacting to the sharp rise in borrowing costs may be in the rearview mirror,” says Shaun Cathcart, CREA’s Senior Economist, as home sales were up 1.3% on a month-over-month basis in December 2022.
Wondering how this impacts your home buying or selling decision? Are you interested in moving out of the province? Connect with me to discuss your options and for a trusted referral.
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
This month I am sharing a list of some of the more common terms you may hear regarding real estate transactions. If you have any questions on these or any other real estate-related concerns, please feel free to reach out to me. I’ll be happy to help you out!
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
www.danpetersen.ca
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