Despite increasing inventory levels, many of Canada’s homebuyers have remained cautious this spring, leading to more balanced and less intense market conditions in the past month.

The latest report from the Canadian Real Estate Association (CREA) shows that home sales across Canadian MLS Systems decreased by 1.7% from March to April 2024. However, actual sales activity was 10.1% higher than in April of the previous year.

Meanwhile, newly listed homes saw a 2.8% increase in April 2024 compared to March. With slower sales and more new listings, the total number of homes on the market surged by 6.5%, reaching its highest point since just before the COVID-19 pandemic. This represents one of the largest monthly increases on record, second only to the market slowdown in early 2022.

James Mabey, Chair of CREA’s 2024-2025 Board of Directors, commented in the monthly report, "After a long hibernation, the spring market is now officially underway. The increase in listings is resulting in the most balanced market conditions we’ve seen at the national level since before the pandemic. Mortgage rates are still high, and it remains challenging for many to enter the market, but for those who can, it’s the first spring market in some time where they can shop around, take their time, and exercise some bargaining power. Given the demand, it's uncertain how long this will last."

With sales declining and new listings increasing in April, the national sales-to-new listings ratio dropped to 53.4%, slightly below the long-term average of 55%. By the end of April, there were 4.2 months of inventory nationwide, up from 3.9 months at the end of March. This is the highest level since the pandemic began and exceeds the long-term average of five months.

Shaun Cathcart, CREA’s Senior Economist, noted, "April 2023 saw a surge of buyers re-entering a market with new listings at 20-year lows, whereas this spring has been the opposite, with a healthier number of properties to choose from but less enthusiasm on the demand side."

The national average home price in April 2024 was $703,446, down 1.8% from April 2023. The National Composite MLS Home Price Index (HPI) remained unchanged from March to April, marking the third consecutive month of stable prices. Regionally, prices are mostly stable across the country, except in Calgary, Edmonton, and Saskatoon, where they have been steadily rising since the beginning of last year.

Source:https://blog.royallepage.ca

Preparing your cottage or cabin for the spring season is an eagerly anticipated task for many homeowners. As summer approaches swiftly, it's time to gear up for another season of relaxation and enjoyment away from urban life. Ensuring a smooth transition requires meticulous planning and execution. Here's a comprehensive checklist of the top 10 tasks to complete before opening your recreational property for the season.

1. Utility Restoration: Before your arrival, contact utility providers to reinstate electricity, gas, internet, and any other essential services after the winter hiatus.

2. Insurance Review: Ensure that your property, boats, ATVs, and trailers are adequately insured for the summer season to avoid any coverage gaps in case of accidents or natural calamities.

3. Property Inspection: Conduct a thorough inspection upon arrival, checking for weather damage such as missing shingles, clogged gutters, leaks, and debris from fallen branches.

4. Deck and Siding Assessment: Examine the condition of your deck and siding, cleaning outdoor areas and inspecting recreational equipment like barbecues and hammocks.

5. Interior Check: Upon entering, watch for signs of moisture, pest infestation, and unpleasant odors.

6. Ventilation: Open doors and windows to freshen up the interior and consider adding fragrances to combat stale odors. Laundering bedding can also help freshen up the space.

7. Mold Inspection: Check window sills and door frames for any mold growth due to moisture and condensation.

8. Water and Electricity Reinstatement: After thorough checks, restore water and electricity, ensuring pipes are free of leaks or frost damage.

9. Appliance and Electrical System Testing: Verify the functionality of all appliances and electrical systems once power is restored.

10. Replenish Supplies: Replace batteries in smoke and carbon monoxide detectors, clean or replace central ventilation filters, refill fire extinguishers, and restock first-aid kits.

By adhering to this comprehensive checklist, you can ensure your cottage or cabin is primed and ready for the summer season ahead!

Interested in learning more about the recreational market in Canada? Read the latest market trends and insights in Unveiling Opportunities: Spring 2024 Outlook for Canada’s Recreational Property Market

Adjustable-rate mortgages (ARMs) present borrowers with a distinctive opportunity to leverage fluctuating interest rates, offering flexibility and potential cost savings over the loan's duration. Nevertheless, ARMs also entail inherent risks and uncertainties that borrowers should carefully weigh before opting for this mortgage type. This article delves into the advantages and disadvantages of adjustable-rate mortgages, aiding you in discerning whether an ARM suits your homeownership requirements.

Understanding Adjustable-Rate Mortgages (ARMs)

An adjustable-rate mortgage (ARM) is a home loan type wherein the interest rate remains unfixed for the loan's entirety. Instead, it fluctuates periodically based on changes in an index, such as the prime rate or the London Interbank Offered Rate (LIBOR). Typically, ARMs commence with an initial fixed-rate period, succeeded by adjustable-rate intervals where the interest rate can vary annually or at specified intervals.

The Pros of Adjustable-Rate Mortgages

• Lower Initial Interest Rates: ARMs often initiate with lower interest rates compared to fixed-rate mortgages, appealing to borrowers seeking reduced monthly payments and potential savings during the initial fixed-rate phase.

• Potential for Lower Payments: Should interest rates decrease or remain stable, ARM borrowers may experience decreased monthly payments during adjustable-rate periods, enhancing affordability and cash flow flexibility.

• Short-Term Ownership Benefits: ARMs can prove advantageous for borrowers planning to sell or refinance their homes within a few years, allowing them to capitalize on the lower initial interest rates while avoiding prolonged exposure to interest rate fluctuations.

• Rate Caps and Limits: Most ARMs incorporate rate caps and limits, constraining the extent to which the interest rate can fluctuate during each adjustment period and throughout the loan's lifespan. This provision offers borrowers a level of protection against significant rate changes.

The Cons of Adjustable-Rate Mortgages

• Interest Rate Risk: The primary drawback of ARMs lies in the uncertainty surrounding future interest rate movements. If interest rates surge substantially during the adjustable-rate periods, borrowers may face heightened monthly payments and increased financial strain.

• Payment Shock: Swift increases in interest rates can result in payment shock for ARM borrowers, causing a sudden and substantial rise in monthly mortgage payments that may prove challenging to afford, particularly for borrowers with fixed incomes.

• Budgeting Challenges: The variable nature of ARM payments can pose challenges in budgeting and financial planning, necessitating borrowers to accommodate potential changes in housing expenses over time.

• Long-Term Costs: While ARMs may offer lower initial interest rates, borrowers holding onto their mortgages for extended durations might end up paying more in interest over the loan's lifespan if interest rates soar during adjustable-rate periods.

Is an ARM Right for You?

Determining whether an adjustable-rate mortgage aligns with your homeownership needs hinges on various factors, including your financial situation, risk tolerance, and future plans. Reflect on the following questions:

1. Are you comfortable with the possibility of fluctuating interest rates and payments?

2. Do you intend to reside in your home for an extended period or consider selling/refinancing within a few years?

3. How do prevailing interest rate trends and economic conditions influence your decision?

4. Have you thoroughly assessed and comprehended the terms, features, and risks associated with the ARM product?

Ultimately, reaching out to a qualified mortgage advisor or financial planner can provide invaluable support in assessing your options and deciding whether an ARM aligns with your financial goals and preferences. Don't hesitate to contact us for a list of our trusted mortgage advisors and financial planners who can assist you further.

With the arrival of warmer weather, Canadians eagerly await weekends filled with waterfront adventures and tranquil evenings around the fire pit. As prime time approaches in the recreational housing market, potential buyers are gearing up to secure their slice of lakeside tranquility or a cozy family retreat, intensifying competition amidst limited supply and driving property values upward.

The Spring 2024 Recreational Property Report forecasts a 5.0% increase in the median price of single-family homes in Canada's recreational regions, reaching $678,930. This projected rise is fueled by a resurgence in consumer confidence, enticing sidelined buyers back into the market.

The pandemic witnessed an extraordinary surge in demand for recreational properties nationwide, driven by remote work opportunities and a yearning for outdoor living. Though economic fluctuations post-pandemic tempered prices, the underlying demand for recreational properties remains strong, hinting at a resurgence in activity for 2024.

In 2023, the median price of single-family homes in recreational regions saw a slight decrease of 1.0% compared to the previous year, following a more substantial decline of 11.7% in 2022. Notably, waterfront properties experienced a 7.9% decrease in median price, while standard condominiums dipped by 1.5%.

Despite fluctuations in inventory levels, 64% of surveyed Royal LePage recreational real estate professionals report sustained or increased demand from buyers. This demand, coupled with potential interest rate cuts, is expected to exert upward pressure on prices in Canada’s recreational property market.

Experts anticipate a slight to significant increase in demand following interest rate reductions, highlighting the market’s resilience to mortgage rate fluctuations. A cut to the Bank of Canada’s key lending rate, anticipated later in the year, is poised to bolster consumer confidence and drive heightened activity in the recreational property sector.

Key highlights from the report include expectations of price appreciation across all provincial recreational markets in 2024, with Ontario leading at 8.0%. Additionally, condominiums in Atlantic Canada witnessed significant year-over-year price growth in 2023, soaring by 16.9%. Despite recent fluctuations, the national median single-family home price in Canada’s recreational real estate market remains substantially higher than 2019 levels, showcasing the enduring appeal of recreational living.

Take the leap into your dream recreational property today! With the Spring 2024 forecast predicting a surge in demand and property values, now is the time to secure your piece of lakeside serenity or cozy family retreat. Don't miss out on this opportunity to embrace the outdoor lifestyle you've been longing for. Contact us now to explore available properties and make your recreational living dreams a reality!