Canadian Real Estate Market Trends for 2017
To say that it's been a tough few years for the Canadian real estate market is quite an understatement. After a troubling 2015, the market finally began to improve steadily throughout 2016.
It was a year that many expected the bubble to burst, as cities offered incentives to those looking to buy a home.
But what should you expect the economic forecast to look like in 2017? Is it the best time to buy or sell a home, or should you wait? Were these incentives enough to breathe new life into Canada's beautiful cities?
Read on to get a clearer picture on the market trends to look for in 2017.
Canadian Real Estate Market Trends to Expect in 2017
Higher rates of employment should bring a healthier market
There is good news! Things aren't as doom and gloom for Canada's citizens as they have been.
In fact, quite the opposite.
It's been suggested that there's a healthy outlook for Canada's job market in 2017. As every good agent knows, with more employment comes a bigger demand for housing.
Thankfully, it seems to be great for the market, with the unemployment rates already dropping from 6.9% to 6.8%. Expect this to continue throughout the year.
Both buyers and sellers in the Canadian real estate market will want to be ready, so plan ahead.
The housing situation in GTA will remain in a state of flux
It's great that buyers are finally getting the chance to buy their dream home! But actually finding that home can be a challenge for those in the GTA.
It isn't exactly a secret that Toronto's housing market is finicky, and 2017 is going to be more of the same. If you're looking for a home in or directly outside Toronto, you may need to consider other options. Generally speaking, there don't seem to be many homes available.
Home sales in the GTA are expected to drop around 2.7% while prices will increase, making for a tumultuous year.
Toronto's massive condo market will continue to grow
If citizens of the GTA can't find a home they like, naturally they'd need to turn to condos. 2016 saw a huge boom in the city’s condo market, and it would appear that 2017 will be no different.
These condos will continue to be huge for the Canadian real estate market!
It's suggested that the condo market will continue to increase throughout the year. Therefore, tenants should expect to pay higher prices if they're looking to live in the city.
You may remember how we mentioned that it's generally a seller's market right now. This still rings true, and there's never been a better time to sell.
Buyers should be ready for some unexpected competition
Immigration is a hot topic right now around the world, and Canada is no exception. But the source of immigration may surprise you. Expect our neighbors from the US to steadily trickle in due to the 2016 election.
Naturally, this is expected to result in inflation. By an estimated 2.20% in fact!
It's impossible to ignore the impact this will have on the Canadian real estate market. Between NAFTA dealings and an already tough market, buyers may have a tough time in 2017.
Overall, it's looking to be a complicated year for the Canadian real estate market. If you're looking to buy a home, you'll want to know you're not paying too much.
Get in touch today for the best listings at the best prices, and keep your eyes on our blog to keep track of everything you need to know!
6 Modern Home Improvement Projects That Pay Off
In a single year, Canadians spend over $71 million on home renovations.
One of the biggest reasons for the renovations craze?
Modern home improvements can add serious value to your home or apartment.
But with over 10% of Canadians planning to renovate their homes within the next year, you need to know which modern home improvements will give the biggest boost to your home's value.
Here, we're showing you the top 6!
1. Curb Appeal
Your home's curb appeal should be at the top of your list. It gives your potential buyer first impression when they are approaching your property. Makes sure your driveway is clean and presentable and everything looks as spotless as possible.
2. Repaint Your Home
This is one of the most cost-effective ways to increase not just the value of your home, but also to make it attractive to buyers.
Think about it: would you buy a home with walls where the paint is peeling, faded, or just outdated?
Giving your walls a fresh coat of paint won't take much time, but it can do wonders for the value of your home.
3. Redo Your Front Door
Your front door is one of the first impressions you'll make on potential buyers. If it doesn't look good, people aren't likely to want to live there.
Consider installing a larger, more welcoming door and adding some potted plants to your doorstep. If you have stairs leading up to your door, ensure they're not cracked.
You may also consider installing a front door security camera to entice potential buyers.
4. Upgrade Your Windows
These days, every modern home puts a strong emphasis on natural lighting. Plus, many windows these days use energy-efficient, more modern glass.
Installing new windows - especially bay and bow windows, which can actually add square footage to your house - is a great way to up your selling price.
Even add a modern window seat underneath, which can also serve as an extra storage space!
5. Rethink Your Kitchen
Since today's families spend so much time in their kitchens, if yours looks dated, it's not going to do you any favors.
First, see if you can add any more modern, smart appliances - and upgrade your lighting plan.
Then, consider adding a cute breakfast nook in addition to your dining room, so families can eat in a more casual setting. Don't forget to make sure your hardwood floors or tiling still looks great!
6. Repair Broken Fixtures
Not only will things like leaky faucets and flickering lights turn buyers off, they could even pose a danger to those looking to purchase your home.
Always make sure that you fix anything that doesn't look its best before you put your home on the market. This includes fixing squeaky doors, old cabinet hinges, and pretty much anything else you can think of.
Replace old fixtures with smart appliances for a more modern touch.
Make These Modern Home Improvements Before You Sell Your House!
Thanks to this list, you're ready to make sure you get the most bang for your renovation/home improvement buck.
Looking for more tips on how to increase the selling value of your home?
Ready to put it on the market and need a real estate company you can trust?
Spend some time on our website to learn about how we can make your selling experience stress-free, easy, and lucrative.
Exploring the Future of the Canadian Condo Market
In November, after the American election, night, American citizens broke the Canadian immigration website. With so much talk of moving to Canada, what does this mean for the Canadian condo market?
Truth is, there's a lot of buzz going on in the market right now. Read on to find out whether or not it's worth it to take the risk in the current market.
Canadian condo market: crazy?
When it comes to the Canadian condo market, one thing is for sure: the seller is king.
It's a seller's market out there, which causes rents to skyrocket. Like other big cities, it's leaving potential buyers out in the cold.
This even translates into bully offers - when a buyer submits an offer well above the asking price well before the intended offer date.
Bully offers tend to be a double-edged sword. From the seller's point of view, you could be offered far more than you'd expect to be on the offer night. From the buyer's point of view, you're trying to get the house for well below what you think it would sell for.
Still, Canada's condo market is quite normal when compared to other cities in North America.
The average home price in Toronto is roughly $916,000 (April 2017) when calculated in Canadian dollars. Compared to Boston at $540,000, London at $746,000, and Hong Kong at $921,000, things look rather peachy.
Inflation is coming
The aftermath of the US election means that Donald Trump may actually boost the Canadian real estate market. With several United States citizens looking for a new home in Canada, the market is going to be busier.
However, Trump's plans are destined to cause inflation. He plans to increase the public debt, and while he promises to fix several things, this means one thing: inflation.
Does this impact real estate? Yes. Yes it does.
Most financial managers refer to real estate as "inflation sensitive." Going off of that, there's no denying that Canada's current housing market strongly resembles that of the US prior to the burst of the housing bubble.
In fact, they're slightly less affordable than America's houses were right before the crash. Currently, Canada's house prices are about 16 times the average income. In the US, they were 12.5 times higher than the average income before the crash.
Canada's household debt is also higher than America's was, resting at 96 percent, while America's sat at 94 percent.
Regardless of whether or not history's set to repeat itself, one thing is certain: Canadian real estate is hotter than ever. Increased demand means the money is going to keep flowing, and there's no sign of it letting up - especially in cities like Toronto.
Making an Offer on a House? Here's How to Stand Out
Prices are up, single-family homes are in short supply and real estate transactions are fast and quick.
When it comes to Toronto real estate, it's a sellers' market.
To stand out in this crowded field of buyers when making an offer on a house, here are some real estate tips to make sure your offer on a house gets taken.
When making an offer on a house, bring a preapproval letter
A preapproval letter shows you are serious. With a specific dollar amount detailed on an official preapproval letter, a seller knows you have the secured cash to back up your offer.
Yes, these letters take time to get. That's because they are essentially proof of securing a mortgage, a complex process.
Before you start the preapproval process, learn what sort of mortgage payments (including tax and insurance) you can make over the next several years.
Use this handy mortgage calculator to see your monthly payments and discover how closing costs and monthly expenses change your ability to pay.
Choose a real estate agent with proven experience at closing time
Making an offer on a house is something best left in hands of a seasoned real estate pro. We offer a unique "no pressure" approach for North Toronto real estate buyers and sellers.
What's that mean?
For buyers, we practice patience and diligence in securing properties that will meet your family's needs and dreams over the next several years. For first-time buyers, we offer extra help to walk you through appraisal, inspection, escrow and closing.
For sellers, we work to get your house aggressively marketed in a range of sales channels. We listen to your needs and help you vet offers from multiple buyers.
Come to the table with a security deposit
Any set of real estate tips will tell you a security deposit is a traditional show of consideration from buyer to seller.
If you plan on making an offer on a house, providing a larger down payment than your competing buyers makes you stand out in the crowded Toronto real estate market.
Plus, it's a not-so-subtle signal of your financial strength. And it's a way of showing the buyer that this is a sale that is going to close.
Remember, your buyer may have already been burned, one or more times by an offer that went under contract, only to unravel a few weeks later.
Learn the seller's needs —then work with them
Some sellers are in a hurry — they may have just bought a house themselves.
Other sellers may budge on a price if the buyer is willing to overlook a few minor improvements (new windows, wall paint, carpet, etc) that another buyer is trying to stipulate in their contract.
The speedier and more streamlined you can make the seller's next steps, the more likely they are to take your offer.
What should first-time buyers know about making an offer?
The Canadian government provides several incentives to first time buyers. Some first-time buyers programs offer down payment assistance as well as tax credits and rebates for first-time buyers.
These programs help new home buyers come to the table with a larger down payment and outside assurances that you can meet mortgage requirements.
So take advantage of these programs. And take advantage of our wealth of insider knowledge on making an offer on a house in the Toronto-area market.
Why 2017 Will Be Another Hot Year for Toronto Real Estate
2017 Will Be Another Hot Year for Toronto Real Estate
The Toronto real estate market just gets better and better. Here's what's in store for 2017, and why now is the time to jump in.
Keyword(s): toronto real estate
Whether you're looking to sell or buy into the market, 2017 is looking to be another great year for Toronto real estate.
The market has been hot for a number of years now, with 2017 predicted to be the third year in a row with over 100,000 house sales. Plus, the average price of a home is due to grow 10 and 16 percent to $825,000.
So what's driving this massive growth in the Toronto real estate market and sustaining it for so long? Read on to find out.
Massive Demand is Powering the Toronto Real Estate Market
Despite the massive sales predictions, experts are predicting that a lack of houses on the market is driving up prices.
The demand for housing in Toronto is so huge that even with steadily climbing prices and downpayment requirements, people are still competing to get into the market.
Low-Interest Rates and Government Programs are Helping Home Buyers
For years, interest rates have been at rock-bottom, making it way easier for buyers to get into the Toronto real estate market. This has contributed massively to the housing market boom.
Plus, government programs such as the first time home buyer credit have made it a lot more affordable for new buyers to enter the market. Many people who had previously only considered renting are making the jump to purchase their first home.
Vancouver's Market is Slowing Down
The Vancouver housing market, which has been so hot for so long, is slowing down.
Whether this is because of the foreign buyer's tax or for more complicated reasons, the real estate frenzy on the west coast has begun to cool slightly.
As Vancouver's market cools, Toronto's just keeps getting hotter.
Condo Purchasing is Driving Growth
It's no surprise that Toronto's condo market has been growing with incredible speed. The city skyline has been dotted with cranes for years now, with new condos springing up seemingly overnight.
By increasing the population density in different parts of the city, condo sales are helping make up for the lack of supply of housing. They're allowing more and more buyers to get into the market.
Migration and Immigration is Pushing Toronto's Rapid Population Growth
Toronto has long been Canada's biggest city, but in recent years its population has been growing rapidly. Much of this can be attributed to immigration, both from other countries and from other provinces and cities within Canada.
For example, the downturn of Alberta's oil industry has led many to move to Toronto to pursue other work opportunities.
With the Toronto real estate market so hot, 2017 will be a great year if you are looking to sell your home. The high demand and competitive bidding will make sure you get a good price.
If you're looking to buy, things could be trickier, but getting into the market now is a good investment as prices are projected to continue to rise. Make sure you calculate what mortgage you can expect before you start looking.
For sellers and buyers alike, 2017 will be another hot year for Toronto real estate. Make sure you don't miss out!