The annual inflation rate in Canada is currently around 5.1%โthe highest itโs been in 30 years. It doesnโt matter if youโre a cashier, lawyer, plumber, or retiree; if you spend Canadian dollars, inflation impacts you.ย
Thereโs a lot to consider when selling your home, from market conditions and appraisals to where youโll go next. Donโt forget, however, the importance of design. Itโs often one of the first things buyers notice when they walk into a home, and itโs also a detail that you, as a seller, can easily control.
According to Realtor.caโs 2022 housing market forecast, October of 2021 saw record home sales.1 Even with the pandemic igniting new restrictions in some provinces, the Canadian housing market is expected to remain hot. This means, if youโre looking to sell in the near future, now is the time to consider how you can stand out.
Updating your home design is one way to do that. Changes like eco-friendly fixtures or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.
Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate a property, give us a call. We can help you realize your vision and maximize the impact of your investment.
Eco-Friendly Fixtures
Canadaโs largest demographic, millennials, has been a driving force in the countryโs real estate market for the past few years. One thing that remains top of mind for this cohort is sustainable living features.ย A recent Deloitte survey found that one-third of millennials initiate or deepen their consumer investment in products or services that help the environmentโthis also includes the houses they choose to live in.2
Here are a few eco-friendly design features that will be attractive to these millennial buyers in 2022. Bonus: they can net a significant return on investment (ROI) for you, as a seller, too.
Wellness Retreat Nooks
As many of our homes became โall-purposeโ territory for the entire family, interior zoning efforts were in full effect. From designated offices to closed-door playrooms, everyone needed their own space. Add in mental health concerns, competing schedules, and reduced access to health and wellness facilities, and the result is a huge prioritization of personal care spaces.
At-home wellness amenities, which were once viewed as luxuries, are now on many homeownersโ must-have lists. Intrigue buyers and improve your quality of life in your home with reading nooks, spa-inspired bathrooms, and exercise or meditation spaces. Even if your house doesnโt have the square footage to section off an entire room for relaxation, making simple tweaks to natural light, air purifiers, and indoor plants can help you feel better in your home now, while enabling future buyers to see the opportunity for their own space.
Calming Paint Colours
Paint colors that produce a calming atmosphere will also be a key selling point in 2022. Soft earth tones and natural hues will prevail this year, including various shades of blue, green, brown, and beige. Recent research suggests steering clear of trendy paint colors in favor of a more classic palette to bring the feel of nature indoors in a subtle and soothing way.6
A survey of American homebuyers found that a certain paint colour was able to increase a homeโs value by 1.6%.6 If we Canadians see even a 1% increase, thatโs $7,208 more for the average home, which is priced at $720,850, according to the Financial Post.7
A crowd-pleasing hue to refresh the walls with is BEHRโs 2022 paint colour of the year, known as Breezeway.8 This shade of green with silver undertones was created to mimic sea glass. As the BEHR website describes it, Breezeway โevokes feelings of coolness and peace, while representing a desire to move forward and discover newfound passions.โ
Outdoor Living Updates
Donโt forget to think about your yard when considering design changes for your home. As interiors become more productive, many Canadians are looking to the outdoors for a break. HGTV predicts the โexterior living roomโ trend will continue in 2022, so making outdoor upgrades in the spring when the ground thaws could reap serious benefits.9 Whether your exterior square footage looks like a balcony, small patio, or expansive yard, it only takes some imagination and effort to turn it into a comforting oasis.
Front porches, in particular, are seeing a big revival, says Greenhouse Canada.10 Power-washing your siding; adding a fresh coat of paint on the door, brick, or floorboards; and finishing it off with some exterior lighting will go a long way in upping the curb appeal.11 Donโt forget to add window boxes, big planters, and young trees that require minimal maintenance but add more life to the space.
Finish off the space with some comfortable outdoor furniture to make the outdoors as well-designed as the indoors. If you need help deciding how to update your outdoor area, let us guide you.
Designated Work Spaces
It may come as no surprise that after the pandemic is over, 80 percent of new teleworkers want to continue to work at least half of their hours from home, according to Statistics Canada.12 However, this desire needs to be weighed against the availability of space in a home.
If you can, try turning a bedroom or den into a work-from-home office. When designing the space, make it both functional and aesthetically pleasing. Position a desk near the window for natural light, install a bookshelf unit, arrange a few succulents on the work surface, and hang a few framed posters or a cork bulletin board on the wall. You want the space to foster productivity as well as be a place in your home you enjoy spending time.
When you get ready to sell, we can help you highlight your designated workspace. Given the high demand for this design feature, it can help you interest more buyers and attract more competitive offersโif marketed creatively.
Plus, Canadians who transitioned to working from home because of the pandemic may be eligible to claim a $500 deduction for home office expensesโmaking this renovation that much more feasible.13
Luxury Kitchen Retouches
The kitchen has always been a main focal point of interior design, and thatโs no different in 2022. Families will always need this space to come together in their own homes.
This yearโs buyers want a kitchen with new upgrades and retouches, but you donโt have to renovate the entire kitchen to make an impact. If youโre not sure where to start, here are a few tips on how to create a kitchen that buyers will love without spending too much money on renovations:
Unique Accent Walls
An accent wall gives a home character while balancing it with the calming feel of natural- and neutral-coloured walls. But, weโve seen accent walls before, so bolder moves are expected for 2022. Here are some on-trend options that go above and beyond a solid-colour accent wall:
If youโre planning to sell in the next year, talk to us before adding an accent wall. Depending on your target buyer, it may be a design feature that actually hurts your homeโs value. We can run a free Comparative Market Analysis on your home to help you understand what would resell best in your neighbourhood.
Exterior Siding Updates
An exterior siding refresh can make an old home feel entirely new and have a big impact on its resale value. This primarily affects curb appeal, but itโs also an important factor in keeping interiors warm and protected from Canadaโs harsh winters. The average cost for new siding ranges from $4.80 – $51.60 per square foot.16 That variation depends on which of the many siding materials you choose, from fiber-cement to brick, wood, vinyl, metal, or stone.
While all these options can infuse the exterior with character and curb appeal, there are a few other factors to consider before taking on this kind of project. While brick adds more sophistication, it is on the pricier end and is susceptible to salt erosion, making it a less enticing option for those on the coasts. On the other end of the cost spectrum, vinyl is a very popular option that does not fade, is easy to maintain, and comes in many colour options.17 However, vinyl will crack over time after facing harsh Canadian winters.
Give your home this simple and attractive facelift before putting it on the market. If youโre not sure how to get started yourself, our team can connect you with a trusted vendor to guide you through the process.
Keep These Home Design Features on Your Radar in 2022
These design features can infuse personality into your home while helping to close the deal if you plan to sell in 2022. The average buyer knows just what theyโre looking for in a space they plan to call home, so with some investment and foresight, you can give your house an edge over the competitionโand boost resale value in the process.
However, you donโt need to make all these changes to attract more buyers. We can help you determine which design features you should add to your home by sharing insights and tips on how to maximize the return on your investment. We can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact us to schedule a free consultation!
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Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that led to a record number of home sales and a historically-high rate of appreciation, as prices soared by a national average of 19.9% year over year, according to the Canadian Real Estate Association.1
There were signs in the second quarter that the red-hot housing market was beginning to simmer down. In June, the pace of sales slowed while the average sales price dipped 5.5% below the springtime peak.2
But just when the market seemed to be cooling, home prices and sales volume ticked up again in the fall, leading the Royal Bank of Canada to speculate: โCanadaโs housing market run has more in the tank.โ3
So whatโs ahead for the Canadian real estate market in 2022? Hereโs where industry experts predict the market is headed in the coming year.
MORTGAGE RATES WILL CREEP UP
The Bank of Canada has signalled that it plans to begin raising interest rates in the โmiddle quartersโ of this year.4 What does that mean for mortgage rates?
Expect higher variable mortgage rates to come. In fact, according to industry trade blog Canadian Mortgage Trends, some lenders have already begun raising their variable rates in preparation. And according to the site, โCurrent market forecasts show the Bank of Canada on track for seven quarter-point (25 bps) rate hikes by the end of 2023, with Scotiabank expecting eight rate hikes.โ5
Since September, fixed mortgage ratesโwhich follow the 5-year Bank of Canada bond yieldโhave also been climbing.5 Fortunately, economists believe the housing sector is well-positioned to absorb these higher interest rates.
Derek Holt, Scotiabank vice president and head of capital markets economics, told Canadian Mortgage Professional magazine in November, โThe large increase in cash balances that occurred over the pandemic combined with the record-high amount of home equity on Canadian balance sheets, to me, paints a picture of a household sector that can manage the rate shock weโre likely to get.โ4
What does it mean for you? Low mortgage rates can reduce your monthly payment, make it easier to qualify for a mortgage, and make homeownership more affordable. Fortunately, thereโs still time to take advantage of historically-low rates. Weโd be happy to connect you with a trusted lending professional in our network.
VOLUME OF SALES WILL DECREASE
A record number of homes were sold in Canada last year. The Canadian Real Estate Association estimates that 656,300 home purchases took place, which is an 18.8% increase over 2020.6 So itโs no surprise that the pace of sales would eventually slow.
The association predicts that, nationally, the number of home sales will fall by 12.1% in 2022, which would still make 2022 the second-best year on record.1
It attributes this relative slowdown to affordability challenges and a lack of inventory but expects sales volume to remain high by historical standards. โLimited supply and higher prices are expected to tap the brakes on activity in 2022 compared to 2021, although increased churn in resale markets resulting from the COVID-related shake-up to so many peopleโs lives may continue to boost activity above what was normal before COVID-19.โ6
What does it mean for you? The frenzied market we experienced last year required a drop-everything commitment from many of our clients, so a slower pace of sales should be a welcome relief. However, buyers should still be prepared to compete for the best properties. We can help you craft a compelling offer without compromising your best interests.
THE MARKET WILL BECOME MORE BALANCED
In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus, a shift to remote work, and economic stimulus triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labour shortages hindered new construction.ย
This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to Abhilasha Singh, an economist at Moodyโs Analytics, โalmost all indicators of housing market activity shot through the roof.โ But, she continued, โThe housing market is now showing signs of returning to earth.โ7
The Royal Bank of Canada expects to see demand soften gradually as rising prices and interest rates push the cost of homeownership out of reach for many would-be buyers.3 And while the supply of available homes continues to remain low, according to Singh, โthe pace of building in Canada remains elevated compared with historical averages thanks to low interest rates.โ7
What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Softening demand could make it easier to finally secure the home of your dreams. If youโre a seller, itโs still a great time to cash out your big equity gains! And with less competition and a slower pace of sales, youโll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.
HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE
Nationwide, home prices rose an average of 19.9% in 2021. But the rate of appreciation is expected to slow down in 2022. The Canadian Real Estate Association forecasts that the national average home price will increase by 5.6% to $718,000 in 2022.6ย
Singh of Moodyโs Analytics agrees that price growth will slow this year and could โreach a near standstill in late 2022 but avoid any significant contractions.โ7
However, some experts caution against a โwait and seeโ mentality for buyers. โAffordability is unlikely to improve [this] year as prices should march higher, even as interest rates creep upwards as well,โ Rishi Sondhi, an economist at TD Economics, told Reuters. โWe think rate hikes will weigh on, but not upend, demand, as the macro backdrop should remain supportive for sales.โ8
What does it mean for you? If youโre a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. We can help you get the most for your money in todayโs market.
WEโRE HERE TO GUIDE YOU
While national real estate numbers and predictions can provide a โbig pictureโ outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighbourhood.ย
If youโre considering buying or selling a home in 2022, contact us now to schedule a free consultation. Weโll work with you to develop an action plan to meet your real estate goals this year.
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Every year, it seems the holidays sneak up on usโand every year, that brings with it the dreaded last-minute gift panic. Finding a present that hits all the right notes can be surprisingly stressful, even when it comes to people youโve known for years.
But have no fear! Weโve lined up a list of gifts for every โtypeโ on your list. And since we work in real estate, theyโre all centred around home life. From the coffee snob to the sports enthusiast, these presents are the perfect way to bring beauty, function or a touch of whimsy to your loved oneโs home this holiday season.
FOR THOSE WHO ARE ALWAYS IN THE KITCHEN
We all know someone whose kitchen is their happy placeโbut once all the basics are covered, it can be hard to find the perfect present. These gifts will be a treat for the chef, baker, or food lover on your list, no matter how well equipped they are.
FOR THOSE WHO WOULD RATHER BE IN THE BACKYARD
For many of us, time outdoors is the ultimate source of rejuvenation. The nature-lover on your list is sure to appreciate these presents that help them maximize that joy in their daily lives.
FOR THOSE WITH THEIR NOSE TO THE GRINDSTONE
Like it or not, most of us spend a good chunk of our lives workingโwhether at a job or on projects and chores around the house. These gifts are designed to make that work a bit easier and more enjoyable.
FOR THOSE MOST PASSIONATE ABOUT THEIR HOBBIES
Of course, thereโs a lot more to life than work. If youโre gifting a friend or family member who really lights up when they talk about their hobbies, weโve got you covered.
FOR THOSE WHO PUT FAMILY FIRST
For many of us, the greatest joy in life comes from our relationship with our family. Help your recipient strengthen and celebrate those all-important connections with these thoughtful gifts.
READY TO GIVE YOURSELF THE ULTIMATE GIFT?
We want to be your real estate consultants through every season of life. So please donโt hesitate to reach out with questions or to ask for recommendations or referrals any time of year. And when youโre ready to give yourself the gift of a new home, contact us to talk about your options. From finding the right neighbourhood to identifying the amenities that will make the biggest difference to your quality of life, weโre always eager to help.
Homebuyers today are facing a huge dilemma. There simply arenโt enough homes for sale.
According to the FBI, more than one million burglaries are committed in the United States each year, with victims suffering an estimated $3 billion in combined property losses.1 Fortunately, there are some proven tactics you can use to decrease your likelihood of a home invasion.
Selling your home when you still need to shop for a new one can feel daunting to even the most seasoned homeownerโโespecially when the demand for new homes keeps rising, but the supply feels like it’s dwindling.ยน You’re not alone either if you’re already feeling drained by the complex logistics of trying to sell and buy a new home all at once.
In a July release, the Canadian Real Estate Association reported that home sales had fallen for three months in a row after reaching an all-time high in March.1 So could one of the worldโs hottest real estate markets finally be headed for a downturn?
FAMILY DREAM HOME at PARKSIDE ESTATES! Rarely available by award winning Tier Sher, this 1,185SF 3BED/2.5BATH townhouse is in an EXCEPTIONAL location โ situated BETWEEN Anderson Elementary and MacNeill Secondary SCHOOLS and SOUTH FACING yard LOOKING OVER THE PARK.
If you are buying Canadian real estate it is important to know whether the seller is a โresidentโ of Canada or not. If the seller is a non-resident of Canada, you may be required to make a withholding from the payment of the purchase price to the seller, and to remit the amount withheld to the Canada Revenue Agency (โCRAโ).
© 2024 Tammy Sharp, Team 3000 Realty Ltd., North Vancouver Real Estate. All rights reserved.
