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TORONTO, ONTARIO, August 6, 2024 – The Greater Toronto Area (GTA) housing market saw an increase in sales compared to July 2023. While this is positive news, buyers continue to have more options due to a significant rise in new listings. As a result, average selling prices have eased slightly.
TRREB President Jennifer Pearce attributes the sales uptick to recent Bank of Canada interest rate cuts and anticipates further sales growth as borrowing costs decrease. July sales reached 5,391, a 3.3% increase year-over-year, while new listings jumped 18.5% to 16,296. Despite these increases, both sales and new listings dipped on a month-over-month basis.
Average selling prices dropped 0.9% year-over-year to $1,106,617, and the MLS® Home Price Index Composite fell by approximately 5%. However, both measures saw slight increases compared to June on a seasonally adjusted basis.
TRREB Chief Market Analyst Jason Mercer predicts that home prices will remain relatively flat as buyers take advantage of lower mortgage payments and the ample inventory. However, he warns that market conditions could tighten as inventory is absorbed without a substantial increase in new home completions, potentially leading to renewed price growth.
TRREB CEO John DiMichele emphasizes the need for innovation in new home construction and applauds Toronto City Council’s decision to consult on adopting single egress stair requirements for multi-residential buildings up to four storeys. He also highlights the importance of public transit and expresses enthusiasm about the upcoming Crosstown LRT opening.
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The Bank of Canada today lowered its policy interest rate by 25 basis points. The overnight rate target is now 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank will continue to normalize its balance sheet.
Global Economy
Global economic growth is projected to remain steady at around 3% through 2026. While inflation is still elevated in most advanced economies, it is gradually declining. The US economy is slowing as expected, with consumer spending moderating and inflation easing. The euro area is recovering from a weak 2023. China’s economy is growing modestly,supported by exports despite weak domestic demand. Global financial conditions have improved, with lower bond yields,higher stock prices, and strong corporate borrowing. Oil prices and the Canadian dollar have remained relatively stable compared to the Bank’s April forecast.
Canadian Economy
Canada’s economy likely grew by about 1½% in the first half of 2024. However, with strong population growth, the economy is operating below capacity, leading to excess supply. Household spending, including on housing, has been weak. The labour market is softening, with rising unemployment, slower job growth, and longer job search durations.Wage growth is moderating but remains elevated.
Looking ahead, the Canadian economy is expected to strengthen, supported by rising exports and increased business and household spending as borrowing costs decline. Housing investment will also grow significantly. However, slower population growth in 2025 will temper economic expansion. Overall, GDP is forecast to grow by 1.2% in 2024, 2.1% in 2025, and 2.4% in 2026. This gradual strengthening will help reduce excess supply in the economy.
Inflation
Inflation eased to 2.7% in June, reflecting broader price pressures declining. The Bank’s core measures of inflation have been below 3% for several months, and the overall pattern of price increases is returning to normal levels. However,shelter costs, driven by rent and mortgage interest, continue to contribute significantly to overall inflation. Inflation in services related to wages, such as restaurants and personal care, is also elevated.
The Bank expects core inflation to slow to around 2½% in the second half of 2024 and continue to decline in 2025. Total inflation is forecast to fall below core inflation later this year due to temporary factors affecting gasoline prices. As these factors dissipate, inflation may rise slightly before stabilizing around the 2% target next year.
Monetary Policy Outlook
Given the easing of broad price pressures and the expected decline in inflation towards the 2% target, the Bank has reduced the policy interest rate by 25 basis points. While excess supply is helping to reduce inflation, price pressures in some areas, particularly shelter and certain services, are persistent. The Bank will carefully monitor these opposing forces and adjust monetary policy as needed to achieve the 2% inflation target.
Information Note
The next interest rate announcement is scheduled for September 4, 2024. The Bank will release its next full economic and inflation forecast on October 23, 2024.
Impact of the Bank of Canada’s Decision on Mortgage Qualifiers in the GTA
The recent interest rate cut by the Bank of Canada is generally positive news for Canadians looking to qualify for a mortgage. Lower interest rates typically mean lower mortgage payments, making it easier for potential homebuyers to meet the qualifying criteria.
However, the situation is more complex in the GTA, where housing prices remain exceptionally high. While a lower interest rate can improve affordability, it’s essential to consider the following factors:
Positive Impacts:
Lower Mortgage Payments: With lower interest rates, monthly mortgage payments will decrease, freeing up more disposable income for potential homebuyers.
Increased Borrowing Power: Lower rates can potentially increase borrowing capacity, allowing buyers to qualify for larger mortgages.
Challenges Persisting in the GTA:
High Housing Prices: Even with lower interest rates, the overall cost of purchasing a home in the GTA remains a significant barrier for many.
Stricter Mortgage Qualification Rules: While interest rates have decreased, the stress test for mortgage qualification remains in place, which can limit borrowing capacity.
Competition: The GTA housing market is highly competitive, and even with improved affordability, securing a home can be challenging.
Overall Outlook:
While the interest rate cut is a step in the right direction, it’s unlikely to dramatically change the housing market in the GTA. Prospective homebuyers will still face significant challenges due to high prices and competition.
To improve your chances of qualifying for a mortgage in the GTA:
Increase Your Down Payment: A larger down payment can significantly improve your mortgage affordability.
Improve Your Credit Score: A good credit score can help you secure better interest rates.
Shop Around for Mortgage Rates: Compare offers from different lenders to find the best deal.
Consider Alternative Housing Options: Explore options like condos or townhouses, which may be more affordable than detached homes.
It’s crucial to consult with a mortgage broker to assess your specific financial situation and explore your options. They can help you understand the impact of the interest rate change on your ability to qualify for a mortgage in the GTA.
This summary is for informational purposes only and should not be considered tax or legal advice. Always consult a qualified professional before making financial decisions based on this information.
Effective June 25, 2024, the capital gains inclusion rate will increase from 50% to 66.67% for trusts and corporations. For individuals, this higher inclusion rate applies only to annual capital gains exceeding $250,000. The 50% inclusion rate will continue for gains below this threshold.
Current Law:
Currently, half of a capital gain is included in computing a taxpayer’s income, which also applies to capital losses.
Impact:
A higher portion of capital gains will be subject to income tax, increasing the tax burden on real estate investments, property sales, and capital gains within corporations (e.g., personal real estate corporations).
Gains on Canadian residential property held for less than one year may be deemed business income (100% taxable) under the residential property flipping rule, unless an exception is met.
Increase to Lifetime Capital Gains Exemption (LCGE) for Entrepreneurs
Change:
The LCGE will rise to $1.25 million (from $1.016 million) for eligible capital gains, effective June 25, 2024.
Impact:
For those selling shares of qualified small business corporations (QSBC) or qualified farm and fishing property (QFFP), the increase in LCGE to $1.25 million will be beneficial.
Alternative Minimum Tax (AMT) Adjustments
Change:
Continued adjustments to AMT rules to align with changes in regular income tax calculations.
The AMT allows fewer tax credits, deductions, and exemptions than ordinary personal income tax rules.
Taxpayers pay the higher of regular tax or AMT.
Impact:
AMT considerations become crucial for planning capital gains realization and charitable contributions, influencing tax planning strategies.
Canadian Entrepreneurs’ Incentive
Introduction:
A new initiative beginning in 2025 reduces the capital gains tax rate to one-third on up to $2 million of qualifying shares.
This incentive provides a capital gains inclusion rate of half the prevailing rate on up to $2 million in capital gains per individual over their lifetime.
Impact:
While not applicable to professional corporations, this incentive promotes entrepreneurship by lowering the tax burden on qualifying share sales.
Strategic Planning Considerations
Immediate Action: Evaluate the potential benefits of realizing capital gains before June 25, 2024, to optimize tax efficiency under current rates.
Consultation: Engage with a tax advisor to navigate these changes effectively and tailor strategies to your specific financial situation.
Long-term Planning: Assess the implications for retirement planning, estate management, and future investment decisions in light of these regulatory adjustments.
As Budget 2024 reshapes tax policies affecting real estate professionals and their clients, proactive planning becomes paramount. This overview is a high-level summary, and TRREB strongly encourages all members to seek expert professional advice to safeguard their financial interests amidst these evolving fiscal landscapes.
The Toronto real estate market continued to see lower home sales in May 2024 compared to the previous year. This comes after a brief market upswing in the spring of 2023. Potential buyers are waiting for mortgage rates to come down before entering the market.
There’s some optimism, however. The number of new listings has increased significantly compared to last year. This suggests that existing homeowners are anticipating a future rise in demand, perhaps due to lower borrowing costs. With more properties available, buyers have more negotiating power when it comes to price.
The data confirms this. The average selling price in May 2024 was slightly lower than in May 2023. The MLS Home Price Index Composite benchmark also showed a year-over-year decrease. However, there was a small increase in average selling price compared to April 2024.
Experts believe that housing affordability will improve as mortgage rates go down. This will likely lead to more buyers entering the market, which could put upward pressure on prices again due to increased competition.
The Toronto Regional Real Estate Board (TRREB) is calling on all levels of government to work together to address the housing shortage in the Greater Toronto Area. They also emphasize the importance of timely completion of infrastructure projects to support population growth.
The Bank of Canada today reduced its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is continuing its policy of balance sheet normalization.
The global economy grew by about 3% in the first quarter of 2024, broadly in line with the Bank’s April Monetary Policy Report (MPR) projection. In the United States, the economy expanded more slowly than was expected, as weakness in exports and inventories weighed on activity. Growth in private domestic demand remained strong but eased. In the euro area, activity picked up in the first quarter of 2024. China’s economy was also stronger in the first quarter, buoyed by exports and industrial production, although domestic demand remained weak. Inflation in most advanced economies continues to ease, although progress towards price stability is bumpy and is proceeding at different speeds across regions. Oil prices have averaged close to the MPR assumptions, and financial conditions are little changed since April.
In Canada, economic growth resumed in the first quarter of 2024 after stalling in the second half of last year. At 1.7%, first-quarter GDP growth was slower than forecast in the MPR. Weaker inventory investment dampened activity. Consumption growth was solid at about 3%, and business investment and housing activity also increased. Labour market data show businesses continue to hire, although employment has been growing at a slower pace than the working-age population. Wage pressures remain but look to be moderating gradually. Overall, recent data suggest the economy is still operating in excess supply.
CPI inflation eased further in April, to 2.7%. The Bank’s preferred measures of core inflation also slowed and three-month measures suggest continued downward momentum. Indicators of the breadth of price increases across components of the CPI have moved down further and are near their historical average. However, shelter price inflation remains high.
With continued evidence that underlying inflation is easing, Governing Council agreed that monetary policy no longer needs to be as restrictive and reduced the policy interest rate by 25 basis points. Recent data has increased our confidence that inflation will continue to move towards the 2% target. Nonetheless, risks to the inflation outlook remain. Governing Council is closely watching the evolution of core inflation and remains particularly focused on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour. The Bank remains resolute in its commitment to restoring price stability for Canadians.
Information note
The next scheduled date for announcing the overnight rate target is July 24, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.
The Ontario government is taking significant steps to bolster consumer protections for homeowners and homebuyers through a series of legislative measures aimed at curbing harmful business practices. In addition to ensuring that homebuyers can make well-informed decisions, the province is also focusing on preserving its heritage while supporting housing and infrastructure development. This comprehensive approach aims to create a fairer, more transparent real estate market while honoring the historical significance of Ontario’s communities.
Banning Consumer Notices of Security Interest Registrations
A pivotal aspect of the new measures is the proposed ban on consumer Notices of Security Interest (NOSI) registrations. NOSIs are notices that businesses can register on the Land Registry when they rent, finance, or lease equipment installed on a property, such as water heaters, furnaces, or HVAC units. These registrations can complicate property sales and financing for homeowners, as they often discover these liens only when they attempt to sell their home or seek additional financing.
Since the early 2000s, the number of NOSIs registered annually has surged from approximately 2,000 to over 58,000 in 2023. Currently, there are about 350,000 consumer and commercial NOSIs registered on Ontario’s electronic Land Registry. Misuse of these registrations often pressures consumers into negotiating costly buyouts, which can result in significant financial burdens. The ban on NOSIs aims to protect homeowners from such predatory practices and ensure smoother property transactions.
Protecting Buyers of New Homes
10-Day Cooling-Off Period
To further safeguard homebuyers, Ontario proposes a statutory 10-day cooling-off period for purchases of new freehold homes. This cooling-off period allows buyers to thoroughly understand their commitments and back out of the purchase if they decide it is not in their best interest. Currently, purchasers of new condos already benefit from such a cooling-off period. The proposed change aims to align protections across different types of property purchases, ensuring that all new homebuyers have the time and tools to make confident, informed decisions.
Cancellation Disclosures
In an effort to boost homebuyer confidence, the government intends to introduce regulatory changes that would require public disclosure of a builder’s history of cancelling purchase agreements for new freehold homes. This follows public consultations conducted in summer 2023. Presently, buyers can access a builder’s record of cancelling condo purchase agreements on the Home Construction Regulatory Authority’s (HCRA) website. Extending this transparency to freehold homes will help buyers make better-informed decisions and trust in the reliability of their builders.
Combating Illegal Building and Selling
Ontario is also targeting illegal building and selling practices. Homes constructed by unlicensed builders who bypass necessary regulatory requirements often have more defects and pose higher risks to buyers. These homes are not enrolled with Tarion, the body overseeing Ontario’s new home warranty and protection program, leading to significantly higher claims. On average, Tarion pays out $45,928 per illegally built home compared to $19,563 for legally built homes.
The province plans to hold consultations in early 2025 to develop strategies to combat illegal building practices. These consultations will focus on creating a fairer market for compliant builders and ensuring better quality homes for buyers of new freehold homes.
Condominium communities, home to over a million Ontarians, often face unique challenges and disputes. The Condominium Authority Tribunal, which primarily resolves disputes between condo corporations and owners, is set to expand its jurisdiction. Ontario plans to initiate consultations on this expansion, beginning with issues related to owners’ meetings. This phased and thoughtful approach aims to address the evolving needs of condo communities.
Consultations for Condo Protections
The government will also consult on initiatives to strengthen protections for condo owners and buyers. These consultations will explore improvements to status certificates, disclosure statements, handling material changes during construction, and records access. The goal is to enhance operational and financial transparency for condo owners while minimizing the administrative burden on condo corporations.
Supporting Municipalities and Property Owners in Conserving Heritage
Ontario is committed to preserving its rich heritage while facilitating housing and infrastructure development. Proposed amendments to the Ontario Heritage Act would give municipalities until January 1, 2027, to complete the evaluation of properties on their municipal heritage registers. This extension aims to ease administrative pressures on municipalities, allowing them more time to focus on conserving historically significant properties.
Additionally, the proposed amendments would provide clarity on how legislated timelines and requirements apply to listed properties, offering greater certainty to both municipalities and property owners.
Building More Housing Near Transit
To capitalize on Ontario’s substantial investments in transit infrastructure, the province is proposing measures to make it easier and faster to build mixed-use housing near transit hubs. This initiative aims to maximize the benefits of transit-oriented communities, providing continued certainty for building partners and fostering the development of vibrant, accessible neighborhoods.
The proposed legislation would exempt designated transit-oriented community lands from certain provisions of the Planning Act related to minister’s zoning orders, facilitating quicker and more efficient development processes.
Conclusion
The Ontario government’s comprehensive approach to strengthening consumer protections, supporting heritage conservation, and facilitating housing development represents a significant step forward for homeowners and homebuyers. By banning harmful business practices like NOSI registrations, introducing cooling-off periods, enhancing transparency, and combating illegal building, the province aims to create a fairer and more transparent real estate market.
Moreover, the focus on preserving Ontario’s heritage and promoting transit-oriented development underscores a balanced approach to growth and conservation. These measures, combined with enhanced protections for condo owners and thoughtful expansion of the Condominium Authority Tribunal’s jurisdiction, reflect Ontario’s commitment to supporting its residents and ensuring a thriving, equitable housing market.
For more detailed information and ongoing updates, homeowners and buyers are encouraged to refer to official resources at Ontario.ca or consult with real estate professionals and legal experts. Staying informed is the best way to navigate these changes and make confident, well-informed decisions in Ontario’s dynamic real estate landscape.
TORONTO, ONTARIO, April 3, 2024 – The latest report on March 2024 home sales, facilitated through TRREB’s MLS® System, reveals a slight dip compared to the same period in 2023. This decrease can be attributed in part to the timing of the statutory holiday Good Friday, which fell in March this year as opposed to April last year. Despite a more robust market with increased inventory compared to the previous year, a moderate uptick in average home prices was observed due to significant competition among buyers.
In March 2024, Greater Toronto Area (GTA) REALTORS® recorded 6,560 sales via TRREB’s MLS® System, reflecting a decrease of 4.5 percent from March 2023. However, there was a notable 15 percent increase in new listingsduring the same period. On a seasonally adjusted monthly basis, sales saw a marginal decrease of 1.1 percent, while new listings dropped by three percent compared to February. The first quarter concluded with a promising 11.2 percent year-over-year increase in sales and an even greater annual rise of 18.3 percent in new listings.
Jennifer Pearce, President of TRREB, remarked, “We have observed a gradual enhancement in market conditions over the past quarter, with buyers adjusting to the higher interest rate environment. Concurrently, homeowners appear to be anticipating a springtime improvement in market conditions, as evidenced by the significant surge in new listings this year. Assuming a forthcoming decrease in borrowing costs, we anticipate further growth in sales, absorption of new listings, and tighter market conditions that will propel selling prices upwards.”
The MLS® Home Price Index (HPI) Composite benchmark exhibited a modest 0.3 percent increase year-over-year, with the average selling price rising by 1.3 percent to $1,121,615. On a seasonally-adjusted month-over-month basis, the MLS® HPI Composite and the average selling price experienced increases of 0.2 percent and 0.7 percent, respectively, compared to February.
Jason Mercer, Chief Market Analyst at TRREB, commented, “As we progressed through the first quarter of 2024, the average selling price saw a slight uptick compared to the previous year. We anticipate accelerated price growth during the spring and particularly in the latter half of the year, as sales growth aligns with listings growth, leading to seller-friendly market conditions in numerous neighborhoods. Lower borrowing costs in the foreseeable future are expected to fuel heightened demand for homeownership.”
John DiMichele, CEO of TRREB, emphasized the critical importance of addressing housing supply concerns amidst increasing demand for both ownership and rental properties. DiMichele stressed the necessity for governmental focus on innovative solutions to boost housing supply, including the removal of obstacles to non-traditional arrangements such as co-ownership models. Encouraging gentle density, including multiplexes, is deemed essential to meeting housing supply targets, particularly in high-demand areas like the Greater Golden Horseshoe.
TORONTO, ONTARIO, March 5, 2024 – Greater Toronto Area (GTA) home sales and new listings were up on an annual and monthly basis in February 2024. Selling prices also edged upward compared to a year earlier. Population growth and a resilient regional economy continued to support the overall demand for housing. Higher borrowing costs kept home sales below the February sales record reached in 2021.
“We have recently seen a resurgence in sales activity compared to last year. The market assumption is that the Bank of Canada has finished hiking rates. Consumers are now anticipating rate cuts in the near future. A growing number of homebuyers have also come to terms with elevated mortgage rates over the past two years. To minimize higher monthly payments, some buyers have likely saved up a larger down payment, chosen to purchase a less-expensive home type and/or looked to a different location in the GTA,” said TRREB President Jennifer Pearce.
REALTORS® reported 5,607 GTA home sales through TRREB’s MLS® System in February 2024 – an increase of 17.9 per cent compared to February 2023. Even after accounting for the leap year effect, sales were up by 12.3 per cent year- over-year. New listings were up by an even greater annual rate than sales in February, pointing to increased choice for buyers. On a seasonally adjusted month-over-month basis, February sales were lower following two consecutive monthly increases while new listings were flat. Monthly figures can be somewhat volatile, especially when the market is approaching a transition point.
Home selling prices in February 2024 remained similar to February 2023. The MLS® Home Price Index Composite benchmark edged up by 0.4 per cent. The average selling price of $1,108,720 increased by a modest 1.1 per cent. On a seasonally-adjusted monthly basis, both the MLS® HPI Composite and the average selling price edged upward.
“As we move through 2024, an increasing number of buyers will re-enter the market with adjusted housing preferences to account for higher borrowing costs. In the second half of the year, lower interest rates will further boost demand for ownership housing. First-time buying activity will also be a contributing factor, as many renters look to trade high monthly rents for a long-term investment in which they can live and build equity,” said TRREB Chief Market Analyst Jason Mercer.
“Population growth has been at a record pace and with the anticipated lower borrowing costs, the demand for housing – both ownership and rental – will also increase over the next two years. Unaffordable housing not only has a financial impact but also a social impact. Recent research conducted for TRREB by CANCEA in our 2024 Market Outlook and Year in Review report underscores the negative impact of unaffordable housing on peoples’ mental health and life satisfaction. It’s comforting to see that there has been some real building happening in the GTA and that the provincial government is rewarding those municipalities that are working to eliminate the red tape and meet those homeownership needs,” said TRREB CEO John DiMichele.
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The deadline for new or updated submissions for the First-Time Home Buyer Incentive is midnight ET on March 21, 2024.
For new and resubmitted First-Time Home Buyer Incentive applications
All new applications and resubmissions for previously cancelled or declined applications must reach the Program Administrator by March 21, 2024 (midnight ET).
In cases where an application was previously cancelled or declined, it must be resubmitted and received by the Program Administrator before the March 21, 2024 (midnight ET) deadline.
If an application is submitted on or before the March 21, 2024, deadline (midnight ET) and is declined due to an application error, the mortgage loan insurer is responsible for rectifying the issue and resubmitting the application.
Applications resubmitted after March 21, 2024 must undergo a manual review. Requests for such reviews must be submitted no later than March 25, 2024 (midnight ET).
The Program Administrator will process applications received before the deadlines promptly. No new approvals will be granted after March 31, 2024.
For approved applications
The Program Administrator will continue to consider post-approval changes, following the guidance outlined in the Operational Policy Manual (PDF) available on the Place to Call Home website (refer to section 6.3).
The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens.
The First-Time Home Buyer Incentive is a shared-equity mortgage with the Government of Canada, which offers:
5% or 10% for a first-time buyer’s purchase of a newly constructed home
5% for a first-time buyer’s purchase of a resale (existing) home
5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home
The shared equity component of the incentive means that the government shares in both the upside and downside of the property value, up to a maximum gain or loss equal to 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment.
By obtaining the Incentive, the borrower may not have to save as much of a down payment to be able to afford the payments associated with the mortgage. The effect of the larger down payment is a smaller mortgage, and, ultimately, lower monthly costs.
The homebuyer will have to repay the Incentive based on the market value of the home at the time of repayment equal to the percentage (for example, 5% or 10%) of the original home value used to determine the Incentive, up to a maximum repayment amount equal to:
(i) where the home’s value has appreciated, the Incentive plus a maximum gain of 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment; or
(ii) where the home’s value has depreciated, the Incentive minus a maximum loss of 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment.
The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first. The homebuyer can also repay the Incentive in full any time before, without a pre-payment penalty.
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First Time Home Seller – Here are The 5 Top Considerations When Selling your First Home
Purchasing your first home is an exciting adventure, isn’t it? It’s rather straightforward – You find a home you love, make an offer, and finalize the deal. But, when it comes to selling your first home and purchasing your second, things get a little more complex. Now, you not only have to find a new home to love but also need to sell your current one. There are many things you need to think about when selling your first home.
Let’s go through 5 of the top things you should consider.
1. Know Your Numbers
Consulting with a mortgage professional can give you clarity by helping you understand your current financial position, including knowing your current mortgage details, potential penalties, and the overall financial implications of your sale. They will assist you in estimating your equity, which can be used for the down payment on your new home, and help you understand your budget for your purchase: like costs associated with selling and buying a home, including porting a mortgage and arranging bridge financing if closing dates don’t align. This step is crucial to make sure you understand your financial readiness and to help you set realistic goals for selling your home and buying the next one.
2. Understand the Market
As a realtor, I can’t stress enough the importance of understanding the local real estate market when you’re planning to sell your home. We will start by familiarizing you with key market dynamics: Are we in a buyer’s or seller’s market right now? What are homes like yours selling for, and how long are they typically on the market? We will consider recent changes in interest rates and any new government or banking regulations that might affect buyer motivation. We will also discuss whether it is better to sell or buy first. By the end of it, you will feel confident in taking on selling your first home.
3. Prepare, Prepare, Prepare
First impressions count. As your realtor, I will guide you in preparing your home to ensure it’s ready to impress potential buyers. Together, we’ll focus on decluttering, thorough cleaning, and carrying out essential repairs. This doesn’t always mean undertaking major renovations; often, a simple, fresh coat of paint or fixing minor issues like a leaky faucet can significantly enhance the appeal of your home. Working together with a home stager, we will make your home inviting to a wide array of buyers, enabling them to envision themselves living there easily. Together, we’ll enhance your home’s appeal by highlighting its best features with personalized advice and strategic staging, ensuring it stands out in the market.
4. Set a Realistic Price
Now that your home is looking its best and ready to list, it’s the perfect time to have a detailed conversation about pricing strategy. As your real estate agent, I will guide you through this critical part of the process, ensuring your property is showcased effectively to attract the right buyers. We will review recent neighbourhood sales and competition to set a price for your home that meets your financial needs and matches market trends. Avoiding overpricing or underpricing, we’ll find the right price based on market knowledge and your home’s value. As your real estate agent, my aim is to set a realistic and competitive price to ensure a successful sale.
5. Strategically Navigating Offers for a Successful Home Sale
Last but not least, it’s important to carefully consider each offer on your home, focusing not just on the highest bid, but on what best meets your needs. Look at the buyer’s reliability and the specifics of the offer. I’m here to help you through these decisions and guide you in the negotiation and closing process. I’ll also explain the different types of offers you might receive, whether they’re in-person, via email, or part of a bidding war. With my support, you’ll be well-prepared for every stage of the sale, be it understanding offers or navigating complex bidding scenarios.
While this list doesn’t quite cover every detail of the home selling process, it highlights the most crucial aspects of selling your first home. Remember, with the right advice, preparation, and guidance, selling your home doesn’t have to be stressful.
See the graphic below for all the smaller details of selling your home. And if you’re ready to sell your first home, I am ready to guide you through the process.
Mortgage Corner
Whether you are a first-time homebuyer, looking to refinance your existing mortgage, or have any other mortgage related questions, we are here to help. Our expertise in the field, combined with a commitment to providing personalized attention and exceptional service, means you can trust us to guide you through the mortgage process with ease.
Click the link below to contact us and learn more about how we can assist you with your mortgage needs.
In the intricate dance of real estate transactions, where myriad factors influence the choice of a new abode, one element consistently emerges as a critical determinant: the kitchen.
Often hailed as the heart of the home, the kitchen holds sway over buyers’ minds and hearts, transcending its traditional role as a mere cooking space. In this extended exploration, we delve deeper into the multifaceted significance of the kitchen in the realm of homebuying.
Functionality and Efficiency:
At the core of the kitchen’s allure lies its functionality and efficiency. Homebuyers, keen on finding a sanctuary where daily routines seamlessly unfold, prioritize kitchens designed for optimal usability. A well-laid-out kitchen, equipped with ergonomic features such as ample counter space, strategically positioned appliances, and intelligently planned storage solutions, offers more than just a venue for culinary endeavors.
It becomes a sanctuary where the symphony of meal preparation unfolds effortlessly, transforming mundane tasks into moments of culinary creativity and familial bonding. For the discerning buyer, the kitchen represents a haven of efficiency, where the harmony of form and function orchestrates daily rituals with ease.
Aesthetics and Design:
Beyond its utilitarian purpose, the kitchen serves as a canvas for artistic expression and design innovation. Buyers, attuned to the visual harmony that pervades their living spaces, gravitate towards kitchens that exude aesthetic allure. From sleek, modern designs characterized by clean lines and minimalist sensibilities to cozy, rustic retreats infused with warmth and charm, the spectrum of kitchen aesthetics is as diverse as the individuals who inhabit them.
Meticulously chosen finishes, stylish fixtures, and thoughtfully curated accents converge to create a visual symphony that resonates with the buyer’s sense of style and sensibility. In the pursuit of their dream home, buyers seek kitchens that transcend mere functionality, offering an immersive sensory experience that tantalizes the eye and uplifts the spirit.
Social and Entertaining Spaces:
In an era marked by the celebration of social connectivity and communal living, the kitchen emerges as a nexus of social interaction and conviviality. Buyers, envisioning a lifestyle characterized by vibrant gatherings and cherished moments shared with loved ones, prioritize kitchens designed for entertaining. Open-concept layouts seamlessly integrate the kitchen with adjoining living spaces, fostering a sense of connectivity and inclusivity that transcends physical boundaries.
From casual brunches with friends to elaborate dinner parties that unfold with theatrical flair, the kitchen serves as a stage for culinary artistry and social engagement. In the eyes of the discerning buyer, a well-appointed kitchen isn’t merely a functional space—it’s a dynamic hub of social activity and shared experiences, where the tapestry of life unfolds in all its richness and complexity.
Investment Potential:
Beyond its intrinsic value as a living space, the kitchen holds considerable investment potential for both buyers and sellers alike. Recognizing the pivotal role that kitchens play in shaping buyer perceptions and driving purchasing decisions, sellers are increasingly inclined to invest in kitchen renovations and upgrades. From modernizing outdated fixtures to incorporating state-of-the-art appliances and premium finishes, strategic enhancements can significantly elevate a property’s market value and desirability.
Savvy buyers, attuned to the transformative power of kitchen renovations, view such investments not as expenses, but as strategic opportunities to enhance their quality of life and maximize their return on investment. In this symbiotic relationship between buyer and seller, the kitchen emerges as a focal point of negotiation and investment, where the promise of future returns converges with the pursuit of personal fulfillment and domestic bliss.
In the grand tapestry of homebuying decisions, the kitchen stands as a luminous thread that weaves together disparate elements of functionality, aesthetics, social connectivity, and investment potential. Beyond its role as a mere culinary workspace, the kitchen embodies the essence of home—a sanctuary where daily rituals are imbued with meaning, and cherished memories are forged amidst the warmth of familial bonds.
As buyers embark on their quest for the perfect abode, they find themselves inexorably drawn to kitchens that transcend the ordinary, offering a sanctuary where the art of living unfolds in all its splendor and grace. In the timeless dance of real estate transactions, the kitchen reigns supreme as a beacon of comfort, creativity, and domestic harmony—a testament to the enduring significance of home in the human experience.
First impressions matter, especially when it comes to your home. Enhancing your property’s curb appeal not only adds aesthetic charm but also increases its value. From simple upgrades to more significant renovations, investing in your home’s exterior can yield significant returns. Here are some tips to help you elevate your home’s curb appeal and make it stand out in the neighbourhood.
Landscaping forms the foundation of your home’s exterior aesthetics. Start by maintaining a well-manicured lawn, trimmed hedges, and neatly pruned trees. Add pops of color with seasonal flowers and plants to create a welcoming ambiance. Consider investing in professional landscaping services for a polished look that complements your home’s architecture.
A fresh coat of paint can breathe new life into your home’s exterior. Choose colours that complement your surroundings while reflecting your style. Pay attention to details like the front door, shutters, and trim, as these accents can make a significant impact. Don’t forget to prep the surfaces properly for long-lasting results.
The front door is the focal point of your home’s facade. Consider upgrading to a stylish, energy-efficient door that enhances both security and aesthetics. Opt for bold colours or unique designs to make a statement and create a memorable first impression. Complete the look with complementary hardware and lighting fixtures.
Well-placed outdoor lighting enhances safety and adds a touch of elegance to your home’s exterior. Install fixtures along pathways, near the front door, and around landscaping features to create visual interest and highlight architectural details. Choose energy-efficient LED lights for cost-effective and environmentally friendly solutions.
The garage door often occupies a significant portion of the home’s facade. Replace outdated or worn garage doors with modern, stylish options that complement your home’s architecture. Choose materials and finishes that blend seamlessly with the overall aesthetic while prioritizing functionality and durability.
Regular cleaning and maintenance are essential for preserving your home’s exterior surfaces. Pressure wash siding, decks, and driveways to remove dirt, grime, and mildew buildup. Repair any cracks or damage to stucco, brick, or wood surfaces promptly to prevent further deterioration and maintain curb appeal.
Architectural details can add character and charm to your home’s exterior. Consider installing decorative trim, moulding, or brackets to enhance the visual interest and break up large expanses of siding. Incorporate elements like window boxes, pergolas, or awnings to create depth and dimension.
Small details like the mailbox and address numbers can make a big difference in your home’s curb appeal. Choose stylish, durable mailbox designs that complement your home’s style and colour scheme. Ensure that address numbers are prominently displayed and easy to read from the street for added convenience.
Outdoor living spaces are increasingly popular and can significantly enhance your home’s curb appeal. Create inviting areas for relaxation and entertainment with comfortable seating, dining areas, and outdoor kitchens. Incorporate landscaping elements like pergolas, fire pits, or water features to create a tranquil oasis.
The entryway sets the tone for the rest of your home. Make it inviting and welcoming with stylish furniture, accessories, and decor. Add a welcoming doormat, seasonal wreath, or potted plants to add warmth and personality. Consider upgrading the porch flooring or adding a porch swing for added charm.
Every home has its flaws, but strategic solutions can help conceal or minimize them. Hide unsightly features like air conditioning units, utility boxes, or trash bins with clever landscaping, fencing, or decorative screens. Create visual distractions with focal points like water features or garden art to draw attention away from problem areas.
Once you’ve enhanced your home’s curb appeal, don’t forget to document it with professional photography. High-quality images can showcase your property’s best features and attract potential buyers or renters. Highlight architectural details, landscaping, and outdoor living spaces to create a compelling visual narrative that resonates with viewers.
Elevating your home’s curb appeal is a worthwhile investment that pays dividends in both aesthetic appeal and property value. By implementing these tips and paying attention to detail, you can create a welcoming exterior that leaves a lasting impression on visitors and passersby alike. Remember that even small changes can make a big difference in enhancing your home’s overall appeal and making it stand out in the neighbourhood.
TRREB: Tighter Market Conditions in January 2024 When Compared to the Previous Year
TORONTO, ONTARIO, February 6, 2024 – Home sales were up in January 2024 in comparison to January 2023. This annual increase came as some homebuyers started to benefit from lower borrowing costs associated with fixed rate mortgage products. New listings were also up year-over-year but by a lesser annual rate compared to sales. The resulting tighter market conditions when compared to the same period a year earlier, potentially points toward renewed price growth as we move into the spring market.
“We had a positive start to 2024. The Bank of Canada expects the rate of inflation to recede as we move through the year. This would support lower interest rates which would bolster home buyers’ confidence to move back into the market. First-time buyers currently facing high average rents would benefit from lower mortgage rates, making the move to homeownership more affordable,” said TRREB President Jennifer Pearce.
There were 4,223 sales reported through TRREB’s MLS® System in January 2024 – an increase of more than one-third compared to January 2023. The number of new listings was also up year-over-year but by a lesser annual rate of approximately six percent. Stronger sales growth relative to listings suggests buyers experienced tighter market conditions compared to a year ago.
On a month-over-month seasonally adjusted basis, both sales and new listings were up. Sales increased more than listings which means market conditions tightened relative to December 2023.
“Once the Bank of Canada actually starts cutting its policy rate, likely in the second half of 2024, expect home sales to pick up even further. There will be more competition between buyers in 2024 as demand picks up and the supply of listings remains constrained. The end result will be upward pressure on selling prices over the next two years,” said TRREB Chief Market Analyst Jason Mercer.
The MLS® Home Price Index Composite in January 2024 was down by less than one per cent year-over-year in January. The average selling price was down by one per cent year-over-year to $1,026,703. On a month-over-month seasonally adjusted basis, both the MLS® HPI Composite and the average selling price also trended lower.
“While housing market conditions are expected to improve with lower borrowing costs, there are still a number of policy issues that need to be addressed. At the federal level, more reflection on the Office of the Superintendent of Financial Institution (OSFI) mortgage stress test is required, especially to its application at different points in the interest rate cycle. The focus for the Province needs to remain on building 1.5 million new homes. At the municipal level, raising property taxes without consistent support from the federal and provincial governments won’t eliminate Toronto’s structural deficit. Helping first-time homebuyers get into the ownership
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