RSS

Posted on by

Nationally, home prices increased 1.5% on a quarterly basis in Q2 despite activity slowdown in major markets

Morning sun a modern designed terrace with autumn plants

Despite a strong first quarter for sales, Canada’s spring housing market was muted in many regions across the country in Q2 of 2024. Although the first cut to the overnight lending rate by the Bank of Canada in June generated much buzz among Canadians, the long-awaited drop did not translate into a noticeable return of homebuyers to the market. This hesitant approach from purchasers contrasts against rising inventory levels, which has resulted in more balanced market conditions as of late. 

Royal LePage® is forecasting that the aggregate1 price of a home in Canada will increase 9.0% in the fourth quarter of 2024, compared to the same quarter last year. Nationally, home prices are forecast to see continued moderate price appreciation throughout the second half of the year.

“Canada’s housing market is struggling to find a consistent rhythm, as the last three months clearly demonstrated,” said Phil Soper, president and CEO, Royal LePage. “Nationally, home prices rose while the number of properties bought and sold sagged; an unusual dynamic. The silver lining: inventory levels in many regions have climbed materially. This is the closest we’ve been to a balanced market in several years.

“This trend dominates activity in two of the country’s largest and most expensive markets, the greater regions of Toronto and Vancouver, where sales are down yet prices remain sticky,” Soper continued. “There are exceptions. In the prairie provinces and Quebec, low supply and tight competition persist.”

Q2 reports modest uptick in home prices

According to the Royal LePage House Price Survey, the aggregate price of a home in Canada increased 1.9% year over year to $824,300 in the second quarter of 2024. On a quarter-over-quarter basis, the national aggregate home price increased 1.5%, despite a slowdown in activity in the country’s most expensive markets. 

When broken out by housing type, the national median price of a single-family detached home increased 2.2% year over year to $860,600, while the median price of a condominium increased 1.6% year over year to $596,500. On a quarter-over-quarter basis, the median price of a single-family detached home increased 1.8%, while the median price of a condominium increased 0.8%. 

Sustained high interest rates run risk of buyer rush

For the last two years, the national housing market has seen home prices fluctuate between modest declines and increases – with some regional exceptions – as a result of the impacts of higher interest rates. As the Bank of Canada cautiously navigates the delicate balance between lowering the key lending rate and keeping inflation in check, some segments of Canada’s housing market have stalled.

“Canada’s housing market faces pent-up demand after two stifling years of high borrowing costs. While inflation control is crucial, persistently high rates are increasing the risk of a surge in demand when buyers inevitably return. New household formation and immigration keep fueling the need for housing, and a sudden release could create much market instability. This highlights the need for a more nuanced approach that balances inflation control with economic vitality,” added Soper. 

Increased borrowing costs hamper new supply creation

Elevated borrowing rates are not only dampening housing market activity but also stifling the construction of new homes. Builders, who rely heavily on lending, are finding it increasingly difficult to finance new projects, exacerbating the country’s shortage of housing at a time when our population continues to grow.

“Canada’s housing market faces complex challenges. While raising interest rates was crucial to fighting inflation, it has unintentionally choked off the essential flow of new housing supply. Higher borrowing costs, coupled with labour shortages in the construction trades and rising material prices, have made it economically unsustainable for developers to launch new projects. This creates a perfect storm – our population is growing steadily, yet we’re building far fewer homes than what’s needed to meet that demand. This situation urgently needs innovative solutions to ensure Canadians have access to affordable housing options,” concluded Soper.

Read Royal LePage’s second quarter release for national and regional insights. 

Second quarter press release highlights:

  • Toronto and Vancouver report slower-than-usual market activity this spring as inventory builds, while demand continues to outpace supply in prairie provinces and Quebec  

  • Quebec City records highest year-over-year aggregate price increase (10.4%) in Q2 among report’s major regions

  • Royal LePage maintains national year-end forecast with prices expected to increase 9.0% in Q4 2024 over the same period last year 

  • According to a Royal LePage survey, conducted by Leger2 earlier this year, 51% of sidelined homebuyers said they would resume their search if interest rates reversed

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

At a glance (3 minute read)

  • BC landlords must use the Landlord Use Web Portal to create personal or caretaker use eviction notices starting July 18, 2024 and must include information on who is moving in.

  • Other changes to the personal or caretaker use eviction rules include a four-month notice period, 30-day dispute window, mandatory 12-month occupancy, and higher penalties for bad-faith evictions.

  • The portal aims to protect tenants from false evictions and provide a transparent process, with data used for better regulation and support for renters and landlords.

New rules around evictions require BC landlords looking to evict tenants for personal or caretaker use to use a new website to create Notices to End Tenancy starting July 18, 2024.

The Landlord Use Web Portal will require landlords to provide detailed information when issuing these notices, allowing the government to monitor eviction patterns and enforce penalties for violations.

“With this new tool, we’re taking action to better protect tenants from being evicted under false pretences and ensure that landlords who need to legitimately reclaim their units have a straightforward pathway to do so,” said Ravi Kahlon, minister of housing in a statement. “The portal will also provide government with a window to better understand when and how often these evictions occur so that we can continue to build on our work to improve services for renters and landlords.”

Issuing a Notice to End Tenancy

If a landlord is looking to evict a tenant for personal occupancy or caretaker use on or after July 18, they will first need a Basic BCeID.

Using the Basic BCeID, they’ll be able to log into the web portal to generate a Notice to End Tenancy for personal occupancy or caretaker use and include information about the person or persons moving into the home.

The generated notice will include a unique ID.

The information entered into the portal will be used by the Rental Tenancy Branch (RTB) to track these types of evictions, and in post-eviction compliance audits.

New rules and a more standardized, streamlined process

Alongside the portal’s launch on July 18, the provincial government is updating the rules around evictions for personal or caretaker use to streamline and standardize the process while making it more transparent.

Key changes include:

  • Landlords must provide four months' notice for personal-use or caretaker evictions (previously two months)

  • Tenants will have 30 days to dispute evictions (previously 15 days)

  • The person moving into the unit must live there for at least 12 months

  • Landlords evicting in bad faith may owe tenants 12 months' rent

What’s considered personal occupancy or caretaker use?

Under the Residential Tenancy Act, a landlord can evict a tenant for personal occupancy or caretaker use if the following people will be moving in:

  • The owner/landlord

  • Close family member (parent, spouse, or child)

  • Purchaser of the property or a close family member of the purchaser

  • Superintendent for the building

Questions about selling tenant-occupied properties

REALTORS® need to be aware of these new rules when representing clients who are buying or selling tenant-occupied properties if the buyer wants vacant possession (whether on the completion date or otherwise).

How does this affect homes sold on or after July 18?

Any notice to end a tenancy for the buyer’s personal use given to a tenant on or after July 18, 2024, can’t end the tenancy until after the expiration of the four-month notice period. 

How do the new requirements impact an offer on a home when rent is paid on the first of each month? 

If all contract subjects were satisfied or waived on July 22, 2024, a Four-Month Notice to tenants using the portal’s notice generator could be provided on or before July 31, 2024, and could require the tenant to vacate the home by November 30, 2024.

What if the tenant does not vacate the home?

As has always been the case with tenant-occupied properties, sellers and buyers should be advised to obtain legal advice to ensure they understand their rights and responsibilities in circumstances when a tenant does not comply with a notice to vacate and remains in the home after the date that the tenancy was supposed to end.

Ongoing transactions

We strongly advise anyone currently in the middle of a transaction involving a tenant-occupied property seek legal advice to navigate these new regulations.

Legal advice can help ensure compliance with the transition to the new rules and protect the interests of all parties involved by informing them of their rights and obligations arising under the new rules.

GVR’s response

Your association is working with the BC Real Estate Association and other boards and associations across the province to respond to the latest changes to the residential tenancy laws in BC.

We’ll provide more information in the coming weeks.

Resources and more information

Read

Posted on by

The City has many places for community members to beat the heat including cooled indoor spaces, outdoor pools and free spray parks. At all times, everyone is welcome to visit Coquitlam’s cooled public indoor spaces during regular business hours, including Coquitlam City Hall and all recreation centres. 

Outdoor Pools and Spray Parks

Eagle Ridge Outdoor Pool (2689 Guildford Way) and Blue Mountain Wading Pool (975 King Albert Way) are open for drop-ins. For information, hours and rates visit coquitlam.ca/OutdoorPools. (Note: Spani Outdoor Pool is closed to facilitate renovation.)

Coquitlam also has 10 free spray parks:

There are also many local parks that offer shaded areas and urban forest shade. To find park locations near you, visit coquitlam.ca/ParkFinder.

Libraries, malls, restaurants and retail shops are also great places to get out of the heat and support local businesses while enjoying air-conditioned spaces.

Staying Safe During Hot Weather

Excessive heat can be dangerous to your health and the health of your loved ones. But there are many things you can do to prepare for warmer weather or an extreme heat emergency. Follow these tips to help keep cool and ensure the safety of others: 

  • Avoid activities that require lots of effort such as exercising during the daytime when the weather is hottest.

  • Wear light clothing and a hat when in direct sun.

  • Stay hydrated with cool liquids especially water. (Note: Many City parks, including Town Centre Park and Mundy Park, have drinking water fountains.)

  • Find shelter in shaded areas such as parks and trails.

  • Check on people at risk and get them to a cool space or seek medical attention, if required.

  • Offer pets plenty of water and ways to stay cool, such as a cool damp towel to lay on.

  • Never leave pets or children in enclosed vehicles, even with windows open or in the shade.

Resources

Stay Informed

When necessary, the City may provide information about heat risks through public service advisories, website updates, and social media. 

You can also stay informed about weather forecasts by downloading Environment and Climate Change Canada's WeatherCAN app.

Read

Posted on by

Robert McLister: Measly 0.25% reduction not enough for legions of sidelined homebuyers

Bank of Canada governor Tiff Macklem

Bank of Canada governor Tiff Macklem makes the next interest rate announcement on July 24. PHOTO BY JUSTIN TANG /The Canadian Press

Article content

With national home prices treading water, real estate inventory growing and housing affordability still atrocious, last month’s quarter-point rate cut from the Bank of Canada, while helpful, was the economic equivalent of bringing a butter knife to a gunfight.

Canadian real estate and overleveraged borrowers need a bigger saviour. A measly 25-basis-point drop in average mortgage rates only translates into a little more than two per cent improvement in payment affordability (home buying power). Hence, the psychological boost from the bank’s initial cut of the cycle can only take the market so far.

What real estate really needs is to wake up the sleeping giants — sidelined buyers. And, make no mistake, they’re there. On top of domestic housing demand, Canada has seen its population rise by a record 1.27 million in the 12 months through June 30, 1.06 million in the period before that, and 0.54 million in the 12 months before that.

All told, we’ve added 2.87 million new housing seekers in three years. That’s more than the entire population of Manitoba and Saskatchewan combined, according to official estimates from Statistics Canada.

So, when will rates drop enough to save borrowers’ wallets and keep home prices buoyant?

For all economists know, average mortgage rates might need to drop 100-plus basis points (bps) to counterbalance economic headwinds like rising unemployment.

Since the dawn of inflation targeting, there have been five rate-cut cycles of at least 100 bps (in 2015, the Bank of Canada dropped only 50 bps). It’s an admittedly small sample, but in those instances, it took the central bank 3.2 months, on average, to ease 100 bps.

Typically, when the bank sees reason to cut, there’s ample cause for follow-through. But this time around, our central bankers are more wary due to sticky inflation.

It’s worth noting that a widening gap between Canadian and U.S. rates, while harmful for our loonie, is not enough reason to stop easing. History has shown that the Bank of Canada’s policy rate can veer off on its own path for several months. Our overnight rate was 250 bps below the Federal Reserve’s in 1997, for example, albeit under different circumstances.

Now, by no means should anyone rely on history repeating and Canadians getting 100 bps of cuts by September. It can’t be totally ruled out, but inflation is still too unpredictable, as evidenced by last week’s disappointing uptick in consumer price index growth. Forward rate data from CanDeal DNA show markets expecting that it could take until April of next year for the next 75 bps of cuts. That’s like waiting for spring in a Winnipeg winter — it’s going to come, but not as soon as you’d like.

What’s the holdup on cuts?

Unfortunately, the economy needs to slow further to get the rate relief that so many people are praying for. That takes time. In fact, with all the hangover from fiscal stimulus, lingering wage pressures, global trade frictions, sticky services inflation, and so on, it could take longer this cycle.

That makes Friday’s Canadian and U.S. unemployment reports all the more pivotal. The Bank of Canada and the Fed want to see a looser labour market for reassurance that consumption and price pressures will ease. And so far, that seems to be happening. On our side of the border, total full-time employment appears to be peaking for the key 25 and over demographic. That’s despite Canada’s immigration levels being higher than Snoop Dogg at a house party.

In the meantime, borrowers should batten down the hatches in case we need to ride out this rate storm longer than expected. Each month that goes by, however, heavily leveraged Canadians feel more squeeze from a policy rate that’s still 300 bps above its 20-year average. Barring another inflation shock — which is unanticipated but not impossible — slowing growth will ultimately force the Bank of Canada’s hand. Once the economy screams “uncle” they’ll have no choice but to provide more rate stimulus — whether that happens at the July 24 meeting, the Sept. 4 meeting or otherwise.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

Mortgage rates

The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

27% of renters say they are planning to buy a property within the next two years

Woman enjoying the evening view from her balcony while looking at the urban skyscraper cityscape at night with a cup of hot coffee

As affordability challenges and housing supply shortages persist in Canada’s real estate market, renters may be feeling that their transition from tenant to homeowner is taking longer than expected. For the one third of Canadians who rent, many are still eager to own a home in the near future, despite the hurdles of high borrowing costs, large down payments and tight competition in the market.

According to a recent Royal LePage survey, conducted by Hill & Knowlton,1 27% of Canadians who currently rent their home say they plan to purchase a property in the next two years. Among those aged 18 to 34, that figure jumps to 40%. Meanwhile, 69% of renters say they do not plan to buy a home in the near future. Among them, more than half (54%) do not feel their income will be sufficient to afford a property in the area where they wish to live (61% among respondents aged 18 to 34).   

“The rental sector is not immune to the significant affordability challenges stemming from Canada’s acute housing shortage. High mortgage rates have made it difficult for many to purchase a home, forcing some to move into, or remain longer than planned, in the rental market,” said Phil Soper, president and chief executive officer, Royal LePage. “Despite a short-lived decline in prices and demand for rental units during the height of the COVID-19 pandemic, the available supply of rental properties in most major markets remains ultra low.” 

Nearly a third of renters contemplated home purchase before signing their lease

Before signing or renewing their current lease, 29% of Canadian renters say they considered purchasing a property. Among them, 41% say the lack of a sufficient down payment led to their decision to rent instead. 

When asked about the motivating factors behind their decision to continue renting rather than buy, approximately one third of respondents said they were waiting for interest rates (33%) and property prices (30%) to decrease. Twenty-two per cent said they are continuing to rent while saving for a down payment, and 20% said they did not qualify for a mortgage. Respondents were able to select more than one answer. 

“While a third of Canadian adults are currently renting, and there are families who are perfectly content doing so, the desire for home ownership remains strong among a large portion of this segment of the population. Our latest research reveals that a material number of renters wish to transition to home ownership. Understandably, the greatest barrier to entry is the ability to drum up the initial capital for a down payment,” continued Soper.

For some Canadians, rental prices eat up 50% of take home pay 

Nearly four in ten Canadian renters (36%) spend up to 30% of their net income on monthly rental costs. Meanwhile, roughly the same amount of renters (37%) spend between 31 and 50% of their income on rent, and 16% spend more than 50%. In Canada’s most expensive housing markets, Vancouver and Toronto, the proportion of renters who spend more than half of their income on rental costs increases to 27% and 19%, respectively. That figure dips to 10% in Montreal. 

According to the latest Rental Market Report by the Canadian Mortgage and Housing Corporation (CMHC), the average rent nationally for a two-bedroom unit in October 2023 was 8.0% higher than a year prior.2 Vacancy rates sat at 1.5% and 0.9%, respectively, for purpose-built rental buildings and condominium apartments. 

“From coast to coast, Canadians are struggling with housing affordability in the wake of one of the most aggressive interest rate hike campaigns in history. Across many regions, rental demand vastly exceeds supply, making affordable housing a challenge. The housing industry and government must collaborate on innovative solutions to increase inventory, including rentals, and support those most impacted by these escalating market conditions,” concluded Soper.

Here are a few highlights from the Royal LePage 2024 Canadian Renters Report:

  • Of renters who say they plan to buy within the next two years, half (50%) say they will have a down payment of less than 20%

  • When asked how they will come up with their down payment, 53% of respondents said they will use savings accumulated over the years

  • 44% of renters planning to purchase in the next two years believe they will be able to afford a home in their current city of residence, while 37% do not 

  • In British Columbia, 25% of renters spend more than half of their net income on monthly rental costs, well above the national average of 16%

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

Metro Vancouver home sales registered on the MLS® remained below seasonal and historical averages in June. With reduced competition among buyers, inventory has continued to accumulate to levels not seen since the spring of 2019.

 

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,418 in June 2024, a 19.1 per cent decrease from the 2,988 sales recorded in June 2023. This was 23.6 per cent below the 10-year seasonal average (3,166).

 

“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their properties to market,” Andrew Lis, GVR’s director of economics and data analytics said. “This dynamic is bringing inventory levels up to a healthy range not seen since before the pandemic. This trend is providing buyers more selection to choose from and driving all market segments toward balanced conditions.”

 

There were 5,723 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in June 2024. This represents a 7 per cent increase compared to the 5,347 properties listed in June 2023. This total is 3 per cent above the 10-year seasonal average (5,554).

 

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,182, a 42 per cent increase compared to June 2023 (9,990). This total is 20.3 per cent above the 10-year seasonal average (11,790).

 

Across all detached, attached and apartment property types, the sales-to-active listings ratio for June 2024 is 17.6 per cent. By property type, the ratio is 13.1 per cent for detached homes, 21.1 per cent for attached, and 20.3 per cent for apartments.

 

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

 

“With an interest rate announcement from the Bank of Canada in July, there is a possibility of another cut to the policy rate this summer. This is yet another factor tilting the market in favour of buyers, even if the boost to affordability is modest,” Lis said. “But June’s lower-than-normal transaction volumes suggest many buyers remain hesitant, which has allowed inventory to accumulate and has kept a lid on upward price pressure across market segments. With that said, the transaction-level data do show that well-priced properties are still selling quickly, suggesting astute buyers are able to spot value and act when opportunities arise.”

 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,207,100. This represents a 0.5 per cent increase over June 2023 and a 0.4 per cent decrease compared to May 2024.

 

Sales of detached homes in June 2024 reached 694, a 18.2 per cent decrease from the 848 detached sales recorded in June 2023. The benchmark price for a detached home is $2,061,000. This represents a 3.7 per cent increase from June 2023 and a 0.1 per cent decrease compared to May 2024.

 

Sales of apartment homes reached 1,245 in June 2024, a 20.9 per cent decrease compared to the 1,573 sales in June 2023. The benchmark price of an apartment home is $773,400. This represents a 1 per cent increase from June 2023 and a 0.4 per cent decrease compared to May 2024.

 

Attached home sales in June 2024 totalled 456, a 16.6 per cent decrease compared to the 547 sales in June 2023. The benchmark price of a townhouse is $1,138,100. This represents a 3 per cent increase from June 2023 and a 0.6 per cent decrease compared to May 2024. 

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

Family help to get on the property ladder has become the norm in Canada with the size of gifts soaring

The amount of money parents are giving to their children to buy their first home has shot up 73 per cent from 2019 to an average of $115,000.

The amount of money parents are giving to their children to buy their first home has shot up 73 per cent from 2019 to an average of $115,000. PHOTO BY GETTY IMAGES

Parents giving money to their kids to buy a home took off during the pandemic when real estate went through the roof.

But has today’s cooler housing market changed that?

Not really, says a new study by CIBC Capital Markets economists Benjamin Tal and Katherine Judge.

Since 2015, the share of first-time homebuyers who received financial help from family members rose from 20 per cent to 31 per cent, and though that trend has levelled off in recent years, it has not declined.

“Homebuyers relying on a wealth transfer from their parents in order to purchase a home is becoming the norm in Canada,” said the economists.

Moreover, the amount of these gifts has continued to climb, rising 73 per cent higher than in 2019. The average gift nationally now sits at $115,000.

“While the benchmark home price has fallen by 14 per cent since its COVID-era peak, prices are still 33 per cent above pre-COVID levels, and that means that gifts have risen faster than home prices over that period,” said the study.

Parental support is especially apparent in Ontario and British Columbia, where high home prices have necessitated a higher reliance on family help.

In these provinces, 36 per cent of first-time homebuyers receive a helping hand, five percentage points higher than the national average.

The size of the gifts in British Columbia, Canada’s priciest market, has soared 90 per cent since 2019, well above the national increase of 73 per cent.

Parents here on average are giving their children $204,000 towards a first home.

Even Ontario is tame by comparison. The amount of gifts in this province — where real estate is far from cheap — rose just 52 per cent since 2019 and now sits at $128,000.

A recent study by Ratehub.ca on how much income is required to buy a home offers clues to why family gifts continue to rise.

Affordability worsened in 11 of the 13 cities the study covers between April and May as homebuyers faced higher mortgage rates and rising home prices in most cities.

In just one month, the income needed to buy a home in Victoria, B.C., rose $1,230 to $172,180 a year.

Vancouver’s required income hit $232,950, up $800.

Hamilton, Ont., saw the biggest increase, Homebuyers now need an income of $171,100 to afford a home here, up $1,550.

Toronto was the exception. The average home price here fell $5,900 between April and May, meaning that homebuyers required $1,250 less annual income.

But the $215,920 a year you need to afford a home in Canada’s biggest city is still out of reach for many.

Wherein lies the problem. Not everybody’s parents can afford to help their children onto Canada’s very expensive property ladder.

Tal and Judge point out that while the phenomenon of parental gifts is helping to ease the bite of housing inflation, it is also widening “the already wide wealth gap in Canada.”

AI readiness

IMF

The International Monetary Fund estimates artificial intelligence could endanger 33 per cent of jobs in advanced economies, 24 per cent in emerging economies and 18 per cent in low-income countries. At the same time it has “enormous potential” to boost productivity, create new jobs and even new industries.

Some countries, however, are more ready for the AI revolution than others. This IMF chart ranks that readiness assessing digital infrastructure, human capital and labour market policies, innovation and economic integration and regulation. Countries in the deeper shade of blue are the most prepared. The United States, for example, achieves one of the highest scores at 0.77, while Canada scores 0.71. Denmark tops the world at 0.78.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

“The market is at an interesting point with rising inventory and lower demand,” says NAR’s chief economist.

Housing stock

More homes are for sale, yet home buyers don’t appear to be in a rush. Pending home sales fell 2.1% in May, and are down nearly 7% from a year ago when home choices were much slimmer, according to the National Association of REALTORS®’ newly released Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings.

“The market is at an interesting point with rising inventory and lower demand,” says NAR Chief Economist Lawrence Yun. Total housing inventory at the end of May was up nearly 19% compared to a year ago, according to NAR’s latest existing-home sales report.

“Supply and demand movements suggest easing home price appreciation in upcoming months,” Yun says. Median existing-home sales prices in May surged to the highest price ever recorded—reaching $419,300, NAR reports.

The drop in home sales last month may have been a reaction to higher home prices and a surge in mortgage rates, which eclipsed 7% last month. Sales of newly built single-family homes fell 11.3% in May—reaching the lowest pace since November 2023. Home builders blamed mortgage rates for the sudden sales contraction.

“Persistently high mortgage rates in May kept many prospective buyers on the sidelines,” says Carl Harris, chairman of the National Association of Home Builders. “However, significant unmet demand exists, and we expect mortgage rates to moderate in the coming months, which will bring more buyers into the market.”

Mortgage rates have since fallen from their recent 7% highs. NAR predicts that rates likely will remain above 6% in 2024 and 2025.

Great Expectations for Sales, Home Prices

Despite monthly blips, economists predict a robust housing market for this year and next.

“The first half of the year did not meet expectations regarding home sales but exceeded expectations related to home prices,” Yun says. “In the second half of 2024, look for moderately lower mortgage rates, higher home sales and stabilizing home prices.”

NAR released its latest outlook for 2024 and 2025.

Existing-home sales forecast

  • 2024: 4.26 million (up from 4.09 million in 2023)

  • 2025: 4.92 million

Housing starts forecast

  • 2024: 1.38 million (up from 1.41 in 2023)

  • 2025: 1.49 million

Median existing-home prices forecast

  • 2024: $405,300 (up from $389,800 in 2023)—and reaching a record annual high

  • 2025: $412,000

Median new-home price forecast

  • 2024: $434,100 (up from $428,600 in 2023)

  • 2025: $441,200

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

Dr. Lee Davenport, Ph.D

In a perfect world, we will all buy low and sell high. In some places, home prices have increased by 47% since the start of the 2020 pandemic, meaning many should definitely be able to sell high. 

​Unfortunately, not all appraisals have kept up with such fast-rising values. As a result, some homeowners have had to enter long and tedious legal battles to realize what should have been a basic fair market valuation (like this example of a $340,000 home valuation difference, whew!). Although life’s not perfect, selling one’s home should easily command the current fair market value.

Thus, we all should be adamant that home sellers – BEFORE listing their homes for sale (or even refinancing) – understand what a fair appraisal encompasses.

Here are four insider tidbits real estate pros should arm homeowners/investors with to ensure maximum, fair market profitability from their real estate sales: 

#1 Investigate Area Comparables

Know sales comparables within the last quarter (6 months maximum). For most home sellers that are “informed neighbors” (I don’t call it being a nosey neighbor—we are simply informed), they already know which homes in the neighborhood sold recently and for how much. Truth be told, that’s usually part of the impetus for selling. Still, providing those comps is a “good agent 101” skill, so I know this needs no explanation since you are a real estate rockstar. 

#2 Check in With the Lender

When considering a prospective homebuyer’s offer, review with the homeowner who the loan is through—if it is not a cash offer—and that lender’s policies regarding appraisal issues. This kind of customer service is the difference maker that sets a committed, trusted professional apart (you) from someone with simply a sales license. 

Remember that under-appraisals (low appraisals) do happen at times. However, questions create options. 

The “O” in Fair Housing D.E.C.O.D.E.R. acronym means we real estate pros are “Options Brokers” — not from a stock trading standpoint but from an “asking the right questions” perspective. 

“The first sign of an educated person is that she asks more questions than she delivers” –Johnnetta B. Cole⁣⁣⁣⁣⁣, past president of Spelman College

Thus, before committing to a specific homebuyer or refinancing, the homeowner/investor should know what their lender’s process is if your client disagrees with the value by asking, or uncovering on the lender’s site, the following questions: 

  1. If there are concerns with the appraised value, will the lender offer a complimentary reconsideration of value (which we informally call a second appraisal)? If not, the additional cost may be an impediment to the homebuyer proceeding.

  2. Will that second appraisal be with a different appraiser (a fresh set of eyes) or can it only be with the same appraiser (who may not be amenable to new information)?

  3. Will the buyer’s rate be locked during the reconsideration process (since a rate change may make the home unaffordable for that specific buyer, making this an offbeat comedy of errors that create tears instead of laughs)?

  4. Based on the buyer’s loan type, does the appraisal value stay with the home? If so, for how long? For some loan types like a VA loan, for example, the appraisal value stays with the home for six months. Yeesh! If a particular lender does not have a robust policy in place to challenge an off valuation, then that’s a long time to be stuck with a problematic appraisal.

#3 Guide Homeowners Toward Help

If the homeowner is not happy with the above answers, or never heard back, but still wants to proceed with the prospective homebuyer’s offer—or re-fi—then be sure to have your local fair housing center on speed dial. There is also the Appraisal Complaint National Hotline (1-877-739-0096). Lock that number in because there is a limited time frame to file a complaint (one-year statute of limitations in many instances, yikes!).

#4 Have a Stable of Reputable Lenders Ready to Go

As a real estate professional, if you like extra credit and bonus points with your clients, create a list of the various lenders that serve your area with their policies for each of the questions above. Of course, have a disclaimer that the information was last updated on ____ date and that confirming all information is still accurate is the homeowner’s responsibility to verify as part of their due diligence period.

Humans – during all points of real estate transactions – can make mistakes, but the key is how robust of a policy is available to help correct and ensure appraisals are fair.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

From “Japandi” to “kid zones,” find out what’s generating the latest buzz in home design.

"Japandi"-style living room

© onurdongel - E+/Getty Images

Home designs are becoming a mishmash of many styles. On one end, there’s calming, Zen-like retreats in softer color palettes, while on the other end, it’s all about dark and moody colors that are bold and memorable.

Home remodeling site Houzz identified the top emerging home design trends(link is external) seeing an uptick in attention this summer based on surveys of homeowners, designers and contractors.

  1. Organic modern styles. “Organic modern design elements form a balanced mix of sleek lines and crisp white or neutral-colored surfaces, contrasted with natural forms and materials,” Houzz notes in its trend report. For example, Houzz reports that online searches have more than tripled year-over-year for “organic modern bedrooms.” Also, over the past year, “organic modern” searches for dining rooms, kitchens, bathrooms and living rooms also are rising significantly.

  2. Dark and moody colors. While some styles are getting more muted, others are getting bolder. Searches for “moody living rooms” and “moody kitchens” have doubled compared to a year ago, according to Houzz.  Also, searches for “dark ceiling” styles are up 60% compared to a year ago. The darker tones are in sharp contrast to the bright whites and light grays that have been dominating interiors in recent years. “We see designers on Houzz use dark and moody colors to help make spaces feel cozy and intimate, or bold and dramatic,” the study notes. For example, designers are layering in rich browns and deep reds for a “moody bedroom.”

  3. Reading rooms. “Dark academia” is a scholarly subculture style devoted to reading, writing and learning. It was a popular look in fashion and has now entered the home. Houzz reports that searches for “dark academia” home styles tripled in the first quarter of this year compared to a year earlier. For example, online searches are soaring for the British style “snug” as homeowners look to wall off a cozy area for reading or solitary relaxation. Searches also are rising for terms like “library wall,” “reading corner” and “book nook.”

  4. “Japandi” style. Japanese design is inspiring more home interiors, borrowing from its signatures of simplicity, natural elements and harmonious living spaces. “Japandi” is a term that relates to a hybrid design style of Japanese minimalism with Scandinavian functionality, Houzz notes. Online searches are growing for Japandi kitchens, bedrooms and bathrooms. Also, design aesthetics like “wabi-sabi” and “Zen garden” also are seeing an uptick in online searches, researchers note.

  5. Wellness. Wellness continues to be a top focus in home interiors, with “cold plunge,” “indoor saunas,” “home spas” and “backyard saunas” all gaining more attention from remodelers. Homeowners also want their renovations to bring in more natural light, such as with large windows and skylights, Houzz’s report notes.

  6. Leisure spaces. Hangout spaces are trendy: For example, online searches for “listening rooms” have more than doubled. Also, “living room pianos” are trending, another sign of a stronger desire for specialized areas to enjoy music within the home. Outdoor leisure activities also are gaining popularity, with searches for “bocce court” up 23% and indoor recreational spaces, such as a “bowling alley” and “game room," up 18% and 16%, respectively.

  7. Kid zones. Along with a growing desire for leisure spaces, areas in the home specially designed for children are growing in popularity. For example, “race car beds,” “Jack-and-Jill bathrooms,” “teen lounge” and “kids’ gaming bedroom” are all seeing an uptick in online searches, according to Houzz’s report.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

As the second half of 2024 comes into focus for small business owners, Greater Worcester entrepreneurs like those in the rest of the country are confident in their businesses. According to new Bank of America research, business owners anticipate revenue growth for the year ahead and are feeling confident in the overall economy, despite economic concerns.

Entrepreneurs’ concerns around several key economic factors remain elevated nationwide but are down from last year. While concerns around supply chain issues and a recession are down significantly, concerns around inflation and interest rates only slightly dropped, as the Federal Reserve holds interest rates at a 23-year high until inflation becomes more manageable. Additionally, the political environment and healthcare costs are top of mind for small business owners. Despite these concerns, the majority (65%) expect their revenue to increase in the next 12 months. 

So, how can business owners meet their revenue expectations as we head into the second half of 2024?

Conduct a SWOT analysis 

It’s always smart to conduct routine evaluations of your business, especially ahead of any upcoming shifts in the economy or impacts from the political environment. Consider finding time to analyze your business’ strengths, weaknesses, opportunities, and threats. A SWOT analysis not only helps evaluate the state of your business but will help identify what changes and tradeoffs are needed. In fact, 70% of small business owners say they have made tradeoffs to maintain profitability, including personal sacrifices, such as working more hours or reducing their own salary, and operational changes, such as increasing prices or reducing marketing costs. Before implementing any similar adjustments, make sure your decisions are informed by your SWOT results. 

Monitor your cash flow

By tracking current and anticipated revenue and comparing it with your business' expenses, you can anticipate when to adjust your business model to avoid unnecessary costs. Digital tools can be helpful to future-proof your business. According to our research, 71% of small business owners have digitally optimized their business and operations in the past 12 months, and over half of those small business owners are using mobile apps or business banking online. These digital tools enable easier financial tracking. When faced with economic uncertainty, this can be particularly useful, allowing for faster and more informed decision-making.

Reconnect with customers

A worrisome economy impacts your customers as well. Take time to connect with your customers and build brand recognition so they continue to show loyalty even when times are tough; 82% of small business owners have implemented tactics to engage with their clientele, whether personalizing interactions with customers, taking steps to implement customer feedback, or hosting community events. You can look to social media platforms to help humanize your business; 65% of small business owners use social media to interact with customers and promote their business through responding to comments, posting about themselves and their employees, and promoting upcoming sales.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read

Posted on by

27% of renters say they are planning to buy a property within the next two years

Woman enjoying the evening view from her balcony while looking at the urban skyscraper cityscape at night with a cup of hot coffee

As affordability challenges and housing supply shortages persist in Canada’s real estate market, renters may be feeling that their transition from tenant to homeowner is taking longer than expected. For the one third of Canadians who rent, many are still eager to own a home in the near future, despite the hurdles of high borrowing costs, large down payments and tight competition in the market.

According to a recent Royal LePage survey, conducted by Hill & Knowlton,1 27% of Canadians who currently rent their home say they plan to purchase a property in the next two years. Among those aged 18 to 34, that figure jumps to 40%. Meanwhile, 69% of renters say they do not plan to buy a home in the near future. Among them, more than half (54%) do not feel their income will be sufficient to afford a property in the area where they wish to live (61% among respondents aged 18 to 34).   

“The rental sector is not immune to the significant affordability challenges stemming from Canada’s acute housing shortage. High mortgage rates have made it difficult for many to purchase a home, forcing some to move into, or remain longer than planned, in the rental market,” said Phil Soper, president and chief executive officer, Royal LePage. “Despite a short-lived decline in prices and demand for rental units during the height of the COVID-19 pandemic, the available supply of rental properties in most major markets remains ultra low.” 

Nearly a third of renters contemplated home purchase before signing their lease

Before signing or renewing their current lease, 29% of Canadian renters say they considered purchasing a property. Among them, 41% say the lack of a sufficient down payment led to their decision to rent instead. 

When asked about the motivating factors behind their decision to continue renting rather than buy, approximately one third of respondents said they were waiting for interest rates (33%) and property prices (30%) to decrease. Twenty-two per cent said they are continuing to rent while saving for a down payment, and 20% said they did not qualify for a mortgage. Respondents were able to select more than one answer. 

“While a third of Canadian adults are currently renting, and there are families who are perfectly content doing so, the desire for home ownership remains strong among a large portion of this segment of the population. Our latest research reveals that a material number of renters wish to transition to home ownership. Understandably, the greatest barrier to entry is the ability to drum up the initial capital for a down payment,” continued Soper.

For some Canadians, rental prices eat up 50% of take home pay 

Nearly four in ten Canadian renters (36%) spend up to 30% of their net income on monthly rental costs. Meanwhile, roughly the same amount of renters (37%) spend between 31 and 50% of their income on rent, and 16% spend more than 50%. In Canada’s most expensive housing markets, Vancouver and Toronto, the proportion of renters who spend more than half of their income on rental costs increases to 27% and 19%, respectively. That figure dips to 10% in Montreal. 

According to the latest Rental Market Report by the Canadian Mortgage and Housing Corporation (CMHC), the average rent nationally for a two-bedroom unit in October 2023 was 8.0% higher than a year prior.2 Vacancy rates sat at 1.5% and 0.9%, respectively, for purpose-built rental buildings and condominium apartments. 

“From coast to coast, Canadians are struggling with housing affordability in the wake of one of the most aggressive interest rate hike campaigns in history. Across many regions, rental demand vastly exceeds supply, making affordable housing a challenge. The housing industry and government must collaborate on innovative solutions to increase inventory, including rentals, and support those most impacted by these escalating market conditions,” concluded Soper.

Here are a few highlights from the Royal LePage 2024 Canadian Renters Report:

  • Of renters who say they plan to buy within the next two years, half (50%) say they will have a down payment of less than 20%

  • When asked how they will come up with their down payment, 53% of respondents said they will use savings accumulated over the years

  • 44% of renters planning to purchase in the next two years believe they will be able to afford a home in their current city of residence, while 37% do not 

  • In British Columbia, 25% of renters spend more than half of their net income on monthly rental costs, well above the national average of 16%

PRESS RELEASE

DATA CHART

Royal LePage resources for aspiring homeowners

To help aspiring homeowners, Royal LePage has published a number of online resources available at the following links:

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Read
Newer posts : page 12 Older posts : page 14
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.