Selling your home quickly and at the right price takes more than just listing it online. To draw in potential buyers and secure top offers, your home needs to stand out. That’s where home staging comes in. By strategically preparing your home—through redecorating, repairing, and making it look its best—you can make a lasting impression and significantly increase its appeal.
The numbers speak for themselves: according to the U.S.-based National Association of Realtors, 81% of buyers’ agents report that staging makes it easier for potential buyers to envision themselves living in a home. Moreover, 44% of buyers’ and sellers’ agents say that staging can increase a home’s sales price, and 48% of sellers' agents agree it shortens the time a house spends on the market.
You can choose to stage your home yourself with advice from your real estate agent or work with a professional stager. Whichever route you take, here are seven essential strategies to transform your home into a buyer’s dream.
Step #1: Declutter and Depersonalize
The first step in staging is to declutter and depersonalize your home. A recent survey of real estate agents found that this simple step can increase your home’s sale price by 3-5%.
This creates a clean, neutral canvas where potential buyers can imagine their own lives. Remember that staging isn’t interior design—the goal isn’t to add personal, homey touches but to take them away. While you may love having plenty of comfy furniture, family photos, and unique knick-knacks, these items can distract potential sellers and make your home feel smaller. Be especially mindful to remove children’s toys and pet items.
The task can feel overwhelming, but consider it a head start on packing for your move — and an opportunity to clear out things you no longer need. If you have a lot of belongings, renting a storage unit might be a smart way to keep things tidy while your home is on the market.
Step # 2: Deep Clean and Repair
A sparkling clean home leaves a fantastic first impression. Deep clean every room, paying special attention to areas that are often overlooked, like baseboards, windows, and appliances. Even minor smudges, scrapes, or signs of pet hair can put off some buyers. Your goal? Make it look like no one has ever lived there!
Minor repairs are equally important. Fix slight imperfections like chipped paint, re-grouting tiles, and replacing worn hardware. These easy cosmetic updates make a big difference in how buyers perceive your home’s value.
Need help getting your home spic-and-span? I can recommend a professional who can help.
Step #3: Pick Up a Paintbrush
While buyers may repaint after they move in, the colour and condition of your walls still have a big impact on their impression of the home as a whole. Neutral tones like beiges and off-whites appeal to the widest range of buyers—and to the friends and relatives who are also weighing on purchasing decisions.
If your home features bold colours or striking wallpaper, consider a repaint before you list. When choosing paint colours, make sure to think about how they’ll appear in listing photos and videos. Light, neutral shades can make rooms look brighter and more spacious.
Repainting is especially important in high-traffic areas like the kitchen. Painting outdated cabinets in white or a soft gray can also modernize your space.
Step #4: Enhance Curb Appeal
First impressions matter, and your home's exterior is the first thing buyers will see. That’s why most real estate agents urge sellers to clean up their home’s exterior — and why curb appeal can drive up to 7% of a home’s sale price.
Boost your home’s curb appeal by power-washing the exterior and touching up your deck’s varnish. If your exterior paint is faded or chipped, consider hiring painters — or for a smaller project, repaint your front door and freshen up first impressions with new hardware and hanging plants.
And don’t forget landscaping! Keep your lawn tidy, remove dead or dying plants, and consider adding seasonal flowers. If you need assistance, I'm happy to offer a referral to landscapers in our area.
Step #5: Stage Key Rooms
When staging, concentrate on the rooms that matter most to buyers: the living room, primary bedroom, and kitchen. These spaces have the greatest influence on a buyer’s decision.
If you’re working with a professional stager, they may bring in furniture and decor. If not, make the most of what you have, and don’t worry about how you’d arrange furniture in real life. This is just about showing off the space.
Arrange furniture to create an open, inviting flow. Use large rugs to make rooms appear bigger and ensure artwork complements rather than overwhelms the space. Add pops of colour with fresh flowers or simple decor like pillows to bring warmth without personalizing the space too much.
Step #6: Put Your Home in Its Best Light
Lighting is key to creating a welcoming atmosphere in your home. Natural light in particular makes any room feel more airy and spacious, so it’s essential to make the most of it.
First, remove heavy curtains or blinds — if a room feels bare without a window treatment, hang sheer curtains or light-filtering shades to invite the outdoors in. Next, take a look at the landscaping surrounding your home. If overgrown hedges or trees block windows, especially on the ground floor, consider cutting them back or removing them entirely to let in the sunshine.
Of course, homes need more than just natural light — and it’s important to use a combination of types of lighting to suit different uses and moods. Experts recommend that each room have three light sources: ambient lighting (think ceiling lights or chandeliers), task lighting (like lamps or under-cabinet lights), and accent lights (like track lighting and picture lights). If needed, replace outdated fixtures with more modern options. Even swapping out lightbulbs can make a difference—opt for warm, 2700k bulbs to create an inviting glow.
Have hard-to-reach windows or need help installing new lighting fixtures? I'm happy to refer a professional who can help.
Step #7: Show Off Your Work with Photography
These days, most buyers will first see your home online, making high-quality photos essential. Most agents agree that professional photos are critical to marketing a listing.
Depending on your home and market, you may also benefit from marketing your property with videos, virtual tours, and even virtual staging, where photo editors swap out furniture and colours to show how your home would look with different decor.
Talk to your agent about what makes sense for your situation, and work with them to hire professionals who can capture your staged home in its best light. When it comes time, treat the photo shoot like an open house—everything should be spotless, well-lit, and arranged to show off your home’s best features.
BOTTOMLINE
Whether or not staging is worth the investment depends on your home’s condition, your desired sale timeline, and your local market. Before committing to professional help or cosmetic upgrades, reach out for a free consultation. I can help you assess the best path forward and connect you with the best professionals to make it happen.
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.
A recent survey found that 25% of Canadian homeowners have a renovation project planned in the coming year. If you’re among them, you know that embarking on home improvements can be both exciting and daunting. According to home services platform HomeStars, the national median renovation budget is around $12,000, so you're probably investing a significant amount—and you'll want to ensure your project’s success.
One of the most critical decisions you'll make is choosing the right contractor to bring your vision to life, however, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and sub-par results.
In this guide, we'll explore seven mistakes to avoid when hiring a contractor to ensure your project runs smoothly from start to finish.
1. SKIPPING THE RESEARCH PHASE
A common mistake homeowners make is rushing into hiring a contractor without proper research. To ensure the success of your renovation, it’s crucial to take time to meet with multiple candidates and educate yourself on best practices surrounding your project.
If you bypass the interview process, you miss the opportunity to evaluate different approaches, pricing, and expertise. This can result in overpaying or hiring someone whose skills and vision do not align with your needs.
Neglecting to research the processes and steps involved can also leave you vulnerable. Not only does it make it more difficult to ask the right questions, but you also risk hiring unqualified professionals or settling for sub-par work.
What To Do Instead:
- Educate Yourself — Read up or watch YouTube videos to gain a better understanding of best practices surrounding your project.
- Interview Multiple Contractors — Search for and interview at least three contractors who specialize in the type of work you need.
- Ask Specific Questions — Inquire about the processes and materials each candidate will utilize.
- Seek Recommendations — Get referrals from trusted sources like friends, neighbours, and real estate professionals. I’d be happy to share a list of referrals!
2. CHOOSING BASED SOLELY ON PRICE
Once you’ve interviewed candidates and reviewed their proposals, it’s time to choose your favourite, but don’t make the mistake of rushing to the lowest bid.
While it's natural to want to save money, selecting a contractor based entirely on price can be a costly mistake. Extremely low bids may indicate cut corners, sub-par materials, or hidden costs that will surface later.
When evaluating bids, make sure you’re comparing “apples” to “apples” and considering factors like quality, timeline, and scope. Are they fully licensed and insured? How long have they been in business? Do they warranty their work?
What To Do Instead:
- Consider Overall Value — In addition to price, look at experience, reputation, and quality of work.
- Ask for Detailed Breakdowns — Understand what's included and what's not in each bid.
- Be Wary of Low Bids – Bids that are significantly lower than others may be too good to be true.
- Invest in Quality — Remember that quality work comes at a fair price, and investing in a reputable contractor can save you money in the long run by avoiding costly mistakes or repairs.
3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE
When you’ve established a good rapport with a contractor, it’s natural to want to believe the best in them. Neglecting to check references and verify licensing and insurance could come back to haunt you.
Hiring an untrained or unlicensed contractor puts you at risk for safety and code violations, not to mention shoddy workmanship. Without proper insurance, you could be left footing the bill for costly repairs, legal issues, or even medical bills if someone gets hurt on the job.
Skipping out on a reference check can be equally problematic. It’s your best opportunity to ensure that their promises and your expectations line up with reality.
What To Do Instead:
- Verify Licensing and Insurance — Confirm that the contractor is licensed according to local requirements and verify insurance, including general liability and workers' compensation coverage.
- Check Reviews — Read online reviews and confirm that the business is in good standing with the Better Business Bureau and other relevant trade groups.
- Call References — When contacting references, ask questions and request to see photos of the contractor's completed projects.
- Visit Job Sites — If possible, visit a current job site to observe the contractor's work in progress and interaction with clients.
4. PROCEEDING WITHOUT A WRITTEN AGREEMENT
A handshake deal might seem friendly and straightforward, but it's a recipe for misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and leave room for miscommunication about project scope, timelines, and costs.
Instead, you should have a signed contract in place before any work begins. Paperwork can be tedious, but don’t skip the important step of carefully reading over your contract, asking questions, and pushing back on any terms that make you uncomfortable.
Don’t forget to ask for payment receipts and document any change orders or issues that arise throughout the project, as well.
What To Do instead:
- Insist on a Written Contract — Outline all aspects, including scope, materials, timeline, payment schedule, warranty information, and a process for handling change orders.
- Understand and Agree — Don't sign anything until you fully understand and agree to all terms.
- Keep Documentation — Once you’ve made your final payment, request a receipt marked “Paid in Full” to keep on file for legal and tax purposes.
5. PAYING TOO MUCH UPFRONT
Another common misstep is paying a large sum upfront or the full cost of the project before the work is completed. This can leave you vulnerable if the contractor fails to complete the work or disappears with your money.
Upfront deposits shouldn’t exceed 10% to 15% of the total project cost. The remaining payments should be tied to progress milestones outlined in your contract.
Legal experts caution against paying a greater share of the project cost than the percentage of the work that’s been completed. If you end up dissatisfied with the outcome, you’ll have much less leverage if you’ve already paid.
What To Do Instead:
- Be Cautious — Avoid contractors who demand large upfront payments or cash-only deals.
- Establish a Payment Schedule — Tie payments to project milestones and stick to them.
- Pay Only Upon Completion — Never pay in full until the project is completed to your satisfaction and all required inspections have been passed.
6. FAILING TO GET NECESSARY PERMITS
Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences. Without the proper permits, you risk running afoul of local building codes and regulations, which could result in fines, forced removal of work, or even legal action.
Additionally, unpermitted work might compromise the safety and structural integrity of your home, potentially leading to hazardous conditions or diminished resale potential. Homeowners may also find themselves without recourse if issues arise later, as insurance companies often exclude coverage for unpermitted renovations.
If you’re under the jurisdiction of a condominium or homeowners’ association, don’t forget to check its bylaws, as well. You may need prior approval to make modifications to your home or yard. Ignoring these restrictions can lead to fines or delays—so don’t skip this important step.
In additiion, with recent changes to legislation in Ontario, homeowners are required to disclose deficiencies, such as renovations done without permits.
What To Do Instead:
- Discuss Permits — Talk about permits and association requirements with your contractor before work begins.
- Include Permits in the Contract — Ensure that obtaining necessary permits and approvals is part of your contract.
- Verify Inspections — Make sure all required inspections are completed during the project.
- Keep Records — Keep copies of all permits and inspection reports for your records.
7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED
Sometimes a contractor can check all the right boxes—until the work begins. Unfortunately, red flags that are spotted mid-project can be especially challenging to address.
If you’ve already paid a substantial amount or had a portion of your home demolished, you may feel trapped in a bad situation. However, if there are major problems that the contractor is unwilling to address, ignoring them can make things exponentially worse.
Don’t be afraid to seek legal or professional advice if issues persist. Taking immediate, informed, and decisive action is crucial to safeguarding your investment and ensuring the project's ultimate success.
What To Do Instead:
- Review Your Contract — Make sure you thoroughly understand your rights and the agreed-upon terms.
- Document Issues — Keep detailed records, including dates, descriptions of problems, photographs of sub-par work or materials, and any communications with the contractor.
- Communicate Professionally — Arrange a meeting to discuss your concerns, ensuring you remain calm and professional while clearly expressing your expectations.
- Request a Resolution Plan — Ask for a plan to address the issues, set a timeline for resolution, and put everything in writing to ensure you’re both on the same page.
- Seek Advice — If the contractor is uncooperative or dismissive, consider seeking advice from a legal professional.
BOTTOMLINE
Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience.
Remember, taking the time to thoroughly vet contractors, communicate clearly, and plan carefully will pay off in the long run. Your home is likely your most significant investment, and it deserves the care and attention that comes with making informed, thoughtful decisions about who works on it.
If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation!
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.
Whether you’re putting your home on the market in a few weeks or a few years, strategic upgrades can make all the difference. But you don't have to embark on a major remodel to make a significant improvement.
Even minor updates can have a big impact on your home’s aesthetic, and certain renovations can even boost its future sale price.
From curb appeal to interior updates, here are seven weekend projects that will enhance your home’s current charm and long-term value.
- Freshen Your Front Door
Is your front door looking a little tired? A new coat of paint can make your home more inviting to today’s guests and tomorrow’s buyers.
But before you grab that paintbrush, think carefully about your choice of hue. According to a recent study, the colour of your front door can boost—or lower—your home's sale price by thousands of dollars.
Cement gray, for instance, was found to decrease purchase offers by an average of $3,365. Going too bold can also deter home shoppers. The safest bets? Classic black or a mid-tone brown are proven winners.
Need help choosing the perfect paint or stain for your front door? I'd be happy to offer advice or refer you to a design professional for assistance.
- Upgrade Your Hardware and Lighting
It's easy to overlook dated cabinet pulls or dingy light switches in your own home. Those seemingly minor details can leave a bad impression on visitors.
Swapping out old hardware for modern alternatives can easily and affordably elevate your space. New cabinet handles, for example, are relatively inexpensive and require just a few minutes and a screwdriver to install. To maximize the longevity of your update, consider classic shapes and finishes like brass knobs or nickel cup pulls.
Take a look at your light fixtures, too. Try replacing an out-of-style chandelier with a more contemporary option. Even just updating your lampshades and light bulbs can create a brighter, more welcoming space. Additionally, many experts agree that high-quality lighting can show off your property’s best features when it comes time to sell.
Uncomfortable changing a light fixture yourself? Contact me for a referral to a licensed electrician for help.
- Update Your Bathroom Fixtures
Bathrooms can show their age quickly, but a few inexpensive updates can take years off in just a few hours. And since many buyers will be more drawn to a home that feels clean and modern, even small changes can make a big difference.
According to one U.S.-based study, for every dollar you spend on minor cosmetic upgrades—like swapping out the bathroom mirror, upgrading hardware, or refinishing cabinets—you’ll see a $1.71 increase in your home’s value.
Bathroom hardware is a great place to start. Consider updating your faucets and shower heads (we recommend lower-flow options to save money and the environment), and don't forget about towel racks, toilet paper holders, and any other fixtures that look worn or discoloured.
According to hardware manufacturer Delta, black finishes are currently trending. Spa-like upgrades, like steam showers and luxury hand showers, are also in high demand.
If your existing vanity is in poor condition, installing a new one is a slightly bigger project, but it has a huge impact on the look and feel of the room. Reach out for a list of retailers who carry high-quality yet affordable prefabricated options.
- Give Your Kitchen Cabinets a Makeover
A recent study found that a kitchen renovation can boost a home’s sale price by up to 20%, making it one of the most valuable home improvement projects. It's no surprise that an updated kitchen is a top priority for Canadian homeowners and potential buyers alike.
If your kitchen cabinets are from another era, that’s probably the first place you’ll want to start. Fortunately, you don’t need to commit to the hassle and expense of installing new cabinets if your current ones are in good shape. Instead, consider painting them.
Not only is it more affordable and eco-friendly than replacement, but Better Homes and Gardens reports that this option typically offers a greater return on investment. When it comes to choosing the right colour, warm neutrals and shades of green and blue are especially on-trend.
Thinking about painting your cabinets yourself? Be sure to plan in advance and block out at least a couple of days for the project. You’ll need to take off all your cabinet doors and hardware and thoroughly cover your kitchen appliances and counters. You’ll also need to wait for the doors to dry before reassembling your kitchen.
If you’re not confident in your painting skills, hiring a professional will still be far less expensive than installing new cabinets. I'm happy to refer you to capable painters in my network.
- Look at Your Landscaping
First impressions matter, and putting some work into your home’s exterior can make a big difference in how your guests and neighbours view it. Curb appeal can also make or break a potential buyer’s perception of your home—and significantly impact their offer.
According to a study by the Journal of Real Estate Finance, curb appeal can account for 7% of a home’s sale price. And in some areas of Canada, it’s among the top three renovations offering the highest return on investment.
One of the best ways to improve curb appeal is through landscaping—and it doesn’t have to be elaborate. First and foremost, focus on keeping things neat, tidy, and welcoming. Mow your lawn, refresh any mulch, prune overgrown shrubs, and add pops of colour with flowers. To take things up a notch, add outdoor lighting and plant perennial flowers along the sides of your walkway.
When you’re ready to get started, reach out for a list of my favourite local garden centres where you can find all the necessary supplies.
- Refinish Your Wood Floors
For many buyers, wood floors are a huge selling point. Unfortunately, they also tend to get scuffed and worn over time, especially if you have kids or pets.
The good news? If your wood floors could use a touch-up, it’s well worth the time and cost. According to one U.S.-based study, it’s the project that pays off the most in terms of resale value, with an average 147% return on investment.
If you have a few days to devote to your floors, you can rent the necessary equipment from a local hardware store. While you’re there, pick up some basic supplies, like a putty knife, paintbrushes, sandpaper, and stain. And if you want to modernize your space, opt for a lighter wood tone, which is the current trend.
Of course, I'm also happy to provide the names of trusted professionals who can tackle the work for you.
- Clean or Replace Your Grout
Let’s face it: Whether it’s on a kitchen floor or a bathroom wall, grout gets grimy over time, even with regular cleaning. Fortunately, refreshing your grout is a relatively simple and affordable project that can yield impressive results.
According to Apartment Therapy, grout that’s in poor condition is often one of the first things a potential buyer notices when they tour a bathroom. Fresh, clean grout, on the other hand, makes your bathroom sparkle—and that can pay off in a big way in terms of buyer’s perceptions.
If your grout is simply stained, a focused cleaning session can make a big difference. Try a specialized product or a simple mix of baking soda, water, and hydrogen peroxide. If the grout is cracked, crumbling, or stained beyond repair, it’s time to replace it. Luckily, the right tools make that a very doable DIY project, even if it can get messy—and it’s a lot easier and less expensive than retiling.
No time to tackle it yourself? Reach out for a recommendation of a pro who can help.
CHOOSING THE PROJECT THAT’S RIGHT FOR YOU
Embarking on home improvements can be exciting, but it's essential to choose projects that align with your goals, budget, and skill level. Whether you're preparing to sell your home or simply want to enhance its value, there are projects to suit every homeowner.
If you're unsure where to start, don't hesitate to reach out for personalized advice and recommendations. With the right approach, you can unlock your home's full potential and enjoy the rewards for years to come.
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.
Once again, the number one story in real estate this summer is mortgage rates. But unlike last year, when a surprise series of rate hikes from the Bank of Canada sent skittish buyers back to the sidelines, all signs now point to the opposite scenario. Instead of market-chilling rate hikes, economists now expect market-quickening rate cuts— starting as soon as this month.
That means the housing market is likely to get interesting over the next few months. If fixed mortgage rates continue to drop in anticipation of a lower policy rate, more buyers are expected to show up looking for a deal before home prices take off in 2025 and 2026.
Listings are also on the upswing and homeowners are feeling increasingly optimistic that their home values will rise over the next year, per a new Canada Mortgage and Housing Corporation (CMHC) study. So we could see more sellers-in-waiting regain the confidence to list their homes at strong but realistic prices.
With pent-up demand continuing to build, housing market activity could pick up significantly. As TD Bank Economist Rishi Sondhi noted in an interview with The Canadian Press, Canada's housing market is “akin to a bit of a coiled spring.” Often when there's a market-moving event like a rate cut, home sales and prices jump quickly.
What does that mean for you? Read on for my take on this year's most important real estate news and get a sneak peek into what analysts predict is around the corner for 2024.
MORTGAGE BORROWERS SHOULD FINALLY GET SOME RATE RELIEF
After more than a year of shifting forecasts and delays, it's finally happening: the Bank of Canada's first rate cut since 2020 is here. The central bank is gearing up for two back-to-back meetings this summer to discuss monetary policy, plus three more meetings before year-end. We've seen our first rate cut on June 5.
But with inflation still elevated in the U.S. and the job market showing surprising gains here at home, the total number of rate cuts we'll see in 2024 is anyone's guess. Market watchers are nervously eyeing warmer-than-expected economic data from both sides of the border, with some now second-guessing whether rates will fall as much as hoped. Previously, many economists thought federal rates would fall by at least a point this year.
Sticky inflation down south is already putting pressure on bond yields, which help determine the fixed rates lenders charge. If the U.S. economy stays hotter than expected, the Bank of Canada may be forced to delay additional rate cuts, which could further impact mortgage rates.
As Bank of Canada Governor Tiff Macklem cautioned, Canada's central bank is ready and willing to cut rates before the U.S. Federal Reserve. But there's “a limit” to how much faster they can go. If too much daylight exists between the countries’ key interest rates, that could weaken the Canadian dollar and further boost inflation.
What does it mean for you? If Canadian homebuyers' past behaviour is any indication, any drop in the Bank of Canada’s policy rate—even a delayed one—is likely to fuel enthusiasm and spark competition. But with lenders already pricing in the first rate cut expected this summer, it could be a while before fixed mortgage rates drop further. If you're a buyer, ask for a referral to a mortgage broker so you can lock in a competitive rate. It's been a tough year for mortgage originations, so lenders are hungry for new business and may be more willing to cut you a deal.
PENT-UP DEMAND COULD SOON BURST INTO VIEW
With at least one quarter-point rate cut in the books and potentially a few more on the way, the last six months of 2024 are unlikely to mirror the first half of the year.
As the Canadian Real Estate Association (CREA) noted in a recent market forecast, housing markets throughout the country have been unusually “quiet” this year thanks to still-high rates and lingering uncertainty. But that doesn't mean home sales will stay soft going forward.
On the contrary, market activity is expected to pick up once rates recede. According to new research from BMO, aspiring homebuyers' financial readiness is looking up. But 72% say they're waiting for lower rates before they get serious about buying a home.
New federal measures could also juice the housing market by boosting demand from first-time buyers. New homebuyers, for example, can now borrow up to $60,000 from their RRSP to fund a down payment—$25,000 more than the Home Buyers' Plan previously allowed. Beginning August 1, first-time buyers with insured mortgages will also be allowed a 30-year mortgage term if they purchase new construction.
Affordability constraints will still be a major sticking point, though, for many Canadian homebuyers, which could dampen sales if buyers and sellers continue to butt heads over prices.
What does it mean for you? Get ready to move quickly. Increased competition almost always means faster home sales—and a need for quick decision-making. If you're a buyer, make sure your papers are in order and you have cash ready for a deposit. And if you're a seller, consider listing now before pent-up supply leads to an uptick in inventory. After all, budget-conscious home-buyers aren't the only ones who have been sitting on the sidelines for the past two years.
PROPERTY VALUES WILL CONTINUE TO INCREASE
The good news for home-buyers: Today's home prices are down significantly from where they were toward the tail end of the pandemic. The bad news: That's probably not going to last. Experts say that home prices have almost certainly bottomed out.
In fact, the CMHC thinks home values could return to peak levels as early as next year before hitting an all-time record high in 2026. As the CMHC notes, home prices and sales declined significantly after rates began to jump in 2022. But in the years since, Canada's population boomed at a record pace, while many people saw their incomes and savings increase. As a result, there's now a bigger pool of potential homebuyers.
That doesn't mean, though, that home sales will be so strong that sellers can expect the same level of price gains they saw before. As researchers at TD Bank note, rate cuts will help boost prices for now. But “affordability pressures will likely keep the gains from being even stronger.”
The CMHC projects that lower-priced homes will enjoy the fiercest competition. But overall sales activity will be more modest than in 2020 and 2021 when rock-bottom rates made mortgage payments more affordable.
What does it mean for you? Even with rate cuts, a typical mortgage payment will be difficult for the average household to absorb, so expect affordability issues to limit overall price growth. Sellers will need to be realistic with their asking price and negotiation tactics—especially if they're looking to close quickly. Buyers, on the other hand, might not want to wait long if they can afford to make a deal. Increased competition could lead to a bigger-than-expected price surge.
EVEN WITH MORE HOMES FOR SALE, INVENTORY WILL BE TIGHT
According to a winter survey by Dye and Durham Ltd., more than a quarter of Canadians have been holding out for a rate cut before buying or selling a home. So we could see a lot more homes go up for sale this year once rates decline.
Already, inventory is picking up as more sellers come to market, giving new buyers more choices when comparing homes. The spring market, in particular, saw a notable jump in listings.
But even if more homes come to market this summer and fall, the total number of Canadians who want to buy a home will still surpass the number of homes available. So both the resale market and new home market are likely to remain squeezed for some time.
In fact, TD Economics estimates that Canada will be short of more than 300,000 homes between 2023 and 2025. Adding to the problem: Housing construction continues to lag population growth and, despite some recent improvements, it is still far from catching up.
Persistently high rates are also discouraging builders from starting new projects. So the inventory of available homes is likely to get tighter. The CMHC expects housing starts to decline in 2024 and drop even more significantly in 2025.
What does it mean for you? With inventory increasing and many prospective homebuyers still priced out of the market, buyers who can afford it may be able to retain some bargaining power—especially for premium homes. However, total inventory is expected to remain tight, so sellers are still more likely to have the upper hand. Competition for more affordable homes will be especially steep.
I'M HERE TO GUIDE YOU
With nationwide news like rate cuts still playing a big role in today's housing market, it can be useful to get a high-level overview of what's happening across Canada. But the most important factors behind most real estate transactions are local. So on-the-ground expertise is essential.
As a local market expert, I can help you navigate your neighbourhood's housing market with ease and understand what's driving home values and sales. If you’re considering buying or selling a home, contact me for a free consultation so I can help you build a successful plan.
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.
- Sunday, May 5, 2024
- Marion Goard
- House and Home Buying and Selling
May is “Moving Month,” as designated by the Better Business Bureau and Canadian Association of Movers. It also happens to kick off the peak moving season, which generally runs from May through September.
According to a survey by Statistics Canada, respondents listed their top motivations for moving as “bigger or better housing” (28.0%) or “a more desirable neighbourhood” (16.8%). But no matter the reason, a relocation can feel stressful and overwhelming.
If you’re one of the many Canadians planning to relocate in the coming months, this guide is for you. I’ve outlined six steps to make your move easier. My hope is to alleviate some of the hassle of relocating—so you can focus on the adventure ahead!
1. CHOOSE A COMMUNITY
When planning a relocation, one of the first things you’ll need to decide is where you want to live. This could be as broad as an area of town, or you might narrow it down to a specific neighbourhood.
Depending on your priorities, you may want to start with communities that are close to work, friends, family and/or your preferred schools. If you commute, map out the route and check on the availability of public transportation, if you plan to use it. Then, if possible, try out the commute during rush hour to see what it’s like.
Next, it’s crucial to consider housing prices and cost of living so you don’t set your sights on an area that you can’t realistically afford. Don’t forget to look up local crime statistics to ensure the community is safe. Finally, visit any neighborhoods you’re considering to gauge the vibe and observe characteristics, like pedestrian accessibility, retail offerings, and population density.
Researching the ins and outs of various communities can be a time-consuming and sometimes difficult process, but we’re here to help! Give me a call to discuss your needs and aspirations, and I’d be happy to provide recommendations of neighbourhoods that may be a good fit for you.
2. FIND YOUR NEW HOME
Once you’ve chosen an area to settle, the next decision you’ll need to make is whether you want to rent or buy a home. Renting can be a good option if you’re new to town, especially if you’re still saving up for a down payment or you’re not ready to commit to a permanent location. Benefits include flexibility, less maintenance, and lower upfront costs.
But, if you want to avoid multiple moves—and you’re financially able—there’s no reason to delay the benefits of buying a home. Not only has homeownership been shown to increase your quality of life, but it’s also one of the best ways to protect and grow your wealth.
The value of real estate will typically appreciate over time, and owners can build equity as they pay down their mortgage. Homeowners and buyers may also be able to benefit from certain tax incentives.
But, perhaps most importantly, homeownership offers stability, as property owners aren’t subject to the mercy of their landlords each year. According to Rentals.ca, average asking rent prices in Canada rose nearly 30% between February 2021 and February 2024. In contrast, many homeowners enjoyed a fixed mortgage payment during that same period.
If you decide to purchase a home and you choose me to represent you, you can rest easy knowing that I will be there for you throughout the entire journey, working hard to make the experience as easy as possible. Or, if you’re moving to a new area, I can refer you to a local agent in my network who shares my commitment to client service.
For more information about buying a home and a timeline of the home buying process, reach out to request a free copy of my Home Buyer’s Guide.
3. SELL OR RENT OUT YOUR CURRENT HOME
If you already own a home, you’ll also need to start the process of either selling it or renting it out. I can help you evaluate your options based on current market conditions.
In many cases, my clients choose to sell so that they can use the equity in their current home to make a downpayment on their next one. But selling your home while simultaneously buying a new one can feel daunting to even the most seasoned homeowner.
Here are some of the most frequent concerns we hear from clients and tips for addressing them:
- What will I do if I sell my house before I can buy a new one?
Check out furnished apartments, vacation rentals, and month-to-month leases. You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighbourhood better.
- What if I get stuck with two mortgages at the same time?
Ask about conditions that can be included in your contracts. For example, it’s possible to add a condition to your purchase offer that lets you cancel the contract if you don't sell your current home. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.
- What if I mess up my timing or burn out from all the stress?
Enlist support as early as possible. It's my job to guide you and advocate on your behalf, so don't be afraid to lean on me throughout the process. I'm here to ease your burden and make your move as seamless and stress-free as possible.
In addition to answering your questions, I’ll give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one. Part of that process will include a plan to maximize your current home’s sale price. I utilize a proven strategy that’s designed to achieve an efficient sale while boosting your profits.
4. PLAN YOUR DEPARTURE
Preparing for a move can be both exhilarating and exhausting. Fortunately, you don’t have to do everything in a day. You don’t have to do it all alone, either. When you work with me, I’ll be there every step of the way to help you navigate this process with ease. To that end, here are some tips to help you plan for your departure.
If you have children, we typically advise that you start by sharing news about the move in an age-appropriate way. If possible, take them on a tour of your new home and neighbourhood. This can alleviate some of the mystery and apprehension around the move. Don’t forget to contact their current and future schools, as well, to arrange for transfer and enrollment.
Next, you’ll want to start packing. To maintain order and make unpacking easier, we recommend packing one room at a time. Clearly label each box with its contents and the room it belongs to. And remember, there’s no use taking extraneous items with you. Use this opportunity to purge or donate possessions that you no longer need.
If you will be using a moving company, start researching and pricing your options. Make sure you’re working with a reputable service, and try to avoid paying a large deposit before your belongings are delivered. Once you have a moving date scheduled, you should arrange to have your utilities turned off or, if possible, transferred into the new homeowner’s name.
Finally, if you will be leaving friends or family behind, schedule get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.
Parting with a home and community you love can be hard, so try to stay focused on the exciting opportunities ahead. Feel free to reach out for referrals to moving companies, packing services, cleaner, or any other resources that will make your move easier. I’d love to help.
5. PREPARE FOR YOUR ARRIVAL
While it’s tempting to get wrapped up in the departure details, don’t forget to plan ahead for your arrival at your new home. To make your transition go smoothly, you should start preparing well before moving day. Here are a few pro tips to help you get started.
First, think about the utilities that will need to be turned on, especially essentials like water, electricity, and gas. Be sure to notify any relevant parties—banks, credit cards, subscriptions, etc.—about your change of address so you don’t miss any important bills, notices, or deliveries. You’ll also want to notify the postal service and submit a mail forwarding request.
If you plan to remodel, paint, or install new flooring, it’s often easier to have it done before you bring in all of your belongings. You may also want to have the house professionally cleaned before moving in.
Don’t forget about the items you’ll need (think toothbrush, towels, bedsheets) to make it through the first night in your new home. Designate some boxes with “Open Me First!” labels. (Pro tip: Keep a tool kit front and center for all that reassembling.)
Finally, create a list of all the restaurants you want to try and places you want to visit around your newly purchased home. Having a to-explore list keeps everyone’s spirits high and gives you starting points to settle into the neighbourhood.
If you’re relocating to my area, I can help! I offer “VIP Relocation Assistance” to all my clients. Contact me for a list of favourite restaurants, retailers, cleaning services, contractors, and more!
6. GET SETTLED IN YOUR NEW SPACE
Studies show that moving can lead to feelings of loneliness and depression. However, there are ways to combat these negative effects. Here are a few strategies to help you and your family get settled in the new space.
If you have children, start by unpacking their rooms first. Seeing familiar items will help ease their transition and establish a “safe zone” where they can hang out away from the chaos of moving day. If possible, let them have a say in how their room is decorated.
Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favourite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.
Don’t forget to take care of yourself, too. Try to schedule breaks to get out of the house and investigate your new area. If you travel by foot or bicycle, you’ll gain the mood-boosting advantages of fresh air and exercise.
You can combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship, or volunteer for a cause. Don’t wait for friends to come knocking on your door. Instead, go out and find them.
To that end, make an effort to introduce yourself to your new neighbours, invite them over for coffee or dinner, and offer assistance when they need it. Once you’ve developed friendships and a support system within your new neighbourhood, it will truly start to feel like home.
LET’S GET MOVING
While moving is never easy, these steps offer an action plan to get you started on your new adventure. With a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.
I specialize in assisting home buyers and sellers with a seamless and “less-stress” relocation. Along with a referral network of moving companies, contractors, cleaning services, and other home service providers, I can help take the hassle and headache out of your upcoming move. Give me a call or message me to schedule a free, no-obligation 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.