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Ottawa’s Market Heats Up with Increased Listings and Cautious Buyers

A total of 617 homes were sold through the MLS® System of the Ottawa Real Estate Board (OREB) in January 2025, marking a 4.2% decline compared to January 2024.

Home sales fell 13% below the five-year average and 9.6% under the 10-year average for January.

“Ottawa’s market is seeing increased activity as more listings hit the market and buyers start to re-engage,” says OREB President Paul Czan. “Many buyers and sellers had been waiting for more conducive market conditions, but with the recent rate cut and potentially lower interest rates on the horizon, optimism is growing. While there’s more supply, the availability of suitable properties in various market segments remains tight. This is reflected in some homes selling quickly while others linger on the market. Sellers should be prepared to price competitively and present their homes in the best light to capture buyer interest in this evolving market."

“The recent Bank of Canada rate cut, introduction of U.S. tariffs, along with upcoming provincial and federal elections, introduce factors of variability,” adds Czan. “That said, confidence is growing, and more buyers are expected to return to the market in the coming months, leading to an increase in transactions.”

By the Numbers – Prices

The MLS® Home Price Index (HPI) provides a more precise measurement of price trends than average or median price calculations.

  • The overall MLS® HPI composite benchmark price stood at $649,900 in January 2025, reflecting a 5.2% increase from January 2024.

  • The benchmark price for single-family homes reached $713,000, up 2.3% year-over-year.

  • In contrast, the benchmark price for townhouse/row units declined 3.9% from the previous year to $448,000.

  • The benchmark price for apartments was $436,900, a 4.5% increase from January 2024.

  • The average sale price of homes in January 2025 was $670,258, a 5.8% rise from the previous year.

  • The total dollar volume of all home sales in January 2025 amounted to $413.5 million, reflecting a 1.3% increase compared to January 2024.

OREB advises that while the average sale price can highlight broader market trends over time, it should not be interpreted as an indicator of value changes for specific properties. The average price is derived from the total dollar volume of all sales, with prices varying across different neighbourhoods.

By the Numbers – Inventory and New Listings

  • New residential listings rose by 3.0% compared to January 2024, with 1,359 new properties hitting the market in January 2025. New listings were 14.1% above the five-year average and 9.3% higher than the 10-year average for January.

  • Active residential listings reached 3,312 units at the end of January 2025, marking a 57.3% increase from January 2024. Active listings were 90.6% higher than the five-year average and 48.9% above the 10-year average for January.

  • Months of inventory stood at 5.4 at the end of January 2025, compared to 3.3 in January 2024. This figure represents the number of months required to sell the current inventory at the existing rate of sales activity.

Thinking about buying or selling in Ottawa’s evolving market? Whether you're a buyer looking for the right opportunity or a seller wanting to position your home competitively, we're here to help you navigate the market with confidence.

Contact us today for expert advice and personalized guidance! Let's make your real estate goals a reality.

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Transform Your Bathroom on a Budget: Easy Updates That Make a Big Impact

When it comes to selling your home, first impressions are everything—and bathrooms are no exception. A tired, outdated bathroom can quickly turn potential buyers off, leaving them with a negative overall impression of your home. The good news? You don’t need to spend a fortune on a full renovation to make a bathroom shine. With a few simple updates, you can create a fresh, modern space that will impress buyers and boost your home's appeal.

Here are some budget-friendly ways to refresh your bathroom:

1. Update Hardware for Instant Modernization

One of the quickest ways to transform the look of a bathroom is by swapping out outdated cabinet knobs, drawer pulls, and faucets. Sleek metallic finishes, such as brushed nickel or matte black, are incredibly popular and easy to install. These small changes can make a big difference in modernizing your space.

2. Give Grout and Caulking a Refresh

Over time, grout can discolour, and caulking around your tub or sink may start to peel. These issues are often overlooked, but a quick clean and touch-up can restore the bathroom’s appearance. A fresh layer of caulking and properly cleaned grout will give the impression of a well-maintained, freshly updated bathroom.

3. Revamp Lighting for a Welcoming Glow

Lighting plays a critical role in setting the tone of any room, and your bathroom is no different. Swap out old, dated light fixtures for more modern ones. If you’re not ready to rewire, simply upgrading your bulbs to bright, energy-efficient options can create a warm and inviting atmosphere—perfect for buyers.

4. Refresh Your Shower Curtain and Bath Mats

Replacing worn-out shower curtains and bathmats is an affordable and easy way to give your bathroom a quick makeover. Opt for light-coloured or clear shower curtains to make the space feel larger and brighter. Fresh, neutral bathmats will tie the space together while adding a touch of comfort.

5. Accessorize for Style and Simplicity

Sometimes, all a bathroom needs is a few well-placed accessories. Consider investing in a new soap dish, toothbrush holder, or a stylish tray for your toiletries. Fresh, white towels can elevate the space without overwhelming it, and a couple of decorative touches like potted plants will bring in life and colour.

6. Frame Your Mirror for Extra Charm

If your mirror looks plain or has signs of wear, consider adding a simple frame. A wooden frame—stained or painted to match your bathroom's colour scheme—can instantly add character and complete the look of the space. This small update can make a world of difference in creating a polished, welcoming atmosphere.

Selling your home doesn’t have to mean spending a fortune on expensive renovations. Simple, affordable updates to your bathroom can have a huge impact, improving both its appearance and overall appeal. A little creativity and attention to detail can go a long way in making your bathroom a space that potential buyers will remember.

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Bank of Canada Lowers Interest Rate to 3%: Economic Growth and Stability on the Horizon

The Bank of Canada has announced a reduction in its target for the overnight rate to 3%, with the Bank Rate set at 3.25% and the deposit rate at 2.95%. Additionally, the Bank has outlined its plan to finalize the normalization of its balance sheet by ending quantitative tightening. Asset purchases will resume in early March, with a gradual approach to ensure the balance sheet stabilizes before experiencing modest growth in line with economic expansion.

The January Monetary Policy Report (MPR) highlights an increased level of uncertainty in its projections due to the rapidly shifting policy landscape, particularly regarding potential trade tariffs from the new U.S. administration. Because the extent and duration of a possible trade conflict remain uncertain, the report presents a baseline forecast that assumes no new tariffs.

According to the MPR, the global economy is projected to maintain growth at approximately 3% over the next two years. U.S. economic growth has been revised upward, primarily due to stronger consumer spending. In contrast, growth in the eurozone is expected to remain sluggish due to competitiveness challenges. In China, recent policy measures are supporting short-term demand and economic expansion, though structural challenges persist.

Since October, financial conditions have diverged internationally. U.S. bond yields have risen, driven by solid economic growth and persistent inflation. Meanwhile, Canadian bond yields have declined slightly. The Canadian dollar has weakened significantly against the U.S. dollar, largely due to trade uncertainty and overall strength in the U.S. currency. Oil prices have been volatile, rising by about $5 above the levels anticipated in the October MPR.

In Canada, previous interest rate cuts have already started stimulating the economy, and the momentum in consumption and housing activity is expected to continue. However, business investment remains weak, while exports are benefiting from expanded oil and gas export capacity.

The labour market remains soft, with the unemployment rate at 6.7% as of December. While job growth has improved in recent months, it had previously lagged behind labour force expansion for over a year. Wage pressures, which had been persistently high, are now showing early signs of easing.

The Bank anticipates that GDP growth will strengthen in 2025. However, given reduced immigration targets, both actual GDP growth and potential growth are expected to be more moderate than previous forecasts in October. Following an anticipated GDP growth rate of 1.3% in 2024, the Bank now projects GDP growth of 1.8% in both 2025 and 2026—a rate that slightly exceeds potential growth. Consequently, excess supply in the economy is projected to diminish gradually over time.

Inflation remains close to 2%, though fluctuations are occurring due to the temporary suspension of the GST/HST on certain consumer goods. While shelter price inflation remains high, it is gradually declining as anticipated. Various economic indicators, including inflation expectation surveys and price change trends within the CPI, suggest that underlying inflation is stabilizing around 2%. The Bank projects that CPI inflation will remain near its 2% target over the next two years.

Excluding potential U.S. trade tariffs, the economic outlook maintains a relatively balanced level of risks. However, the MPR warns that a prolonged trade dispute could result in lower GDP growth and higher consumer prices in Canada.

Given inflation stabilizing around 2% and an economy operating with excess supply, the Governing Council has decided to cut the policy rate by another 25 basis points to 3%. Since last June, the cumulative rate cuts have been significant. Lower interest rates are already stimulating household spending, and based on today's projections, the economy is expected to gradually strengthen while inflation remains stable. However, if significant trade tariffs were to be implemented, Canada's economic resilience would be put to the test.

The Bank will closely monitor economic developments and assess their impact on inflation and monetary policy. It remains dedicated to maintaining price stability for Canadians.

With the Bank of Canada lowering its policy rate to 3%, now is the time to assess your real estate plans. Whether you're buying, selling, or refinancing, lower rates could open new opportunities. Let’s discuss how this impacts your goals—contact us today!

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Flexible Showings: Why Adjusting Your Schedule Can Help Sell Your Home Faster

When selling your home, timing is everything. Many sellers automatically think of weekends as the prime time for property viewings, but buyers often prefer weekday evenings for their showings. This can be due to work commitments, travel plans, or just a better fit with their schedule. If you don't offer flexibility and only schedule showings during weekends, you could miss out on a potential buyer.

Being accommodating with your showing times is key. Here’s how you can make your home more accessible without disrupting your life too much.

1. Consider Using a Lock Box

If you’re unable to be present during weekday showings—perhaps because you’re away for the week—consider using a lock box. This secure box holds the key to your home, and only your real estate agent has access. If another agent wants to show your home, they can request access through your agent. This way, you’re not tied down to specific times but still offering a safe and secure option for interested buyers.

2. Offer Weekend Flexibility

If weekday appointments don’t work for you, make sure to offer flexibility on weekends. Consider scheduling showings at times that might be outside of the typical Saturday or Sunday hours, such as Sunday evenings at 7:00 PM. While it’s a bit of a trade-off, this can help you accommodate buyers who may be unavailable earlier in the weekend.

3. Create a Single Weekday Showing Slot

For some sellers, managing weekday showings can be challenging—especially for families with busy schedules or evening work shifts. But instead of completely closing off weekdays, consider setting aside just one window. For example, you could offer viewings every Wednesday from 5:00 to 7:30 PM. This strategy helps keep your life intact while still offering the flexibility that buyers may need.

4. The Key Takeaway

The goal is to make your home as accessible as possible to potential buyers. A small shift in your schedule could be the difference between a showing and a sale. Being flexible with viewing times, whether it’s on a weekday evening, weekend, or through a lock box, can help you secure more offers and sell your home faster—and for top dollar.

Want more tips to help sell your home quickly and at the best price? Contact us today!

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Protect Yourself from Mortgage Scams

Mortgage scams are more prevalent than you might think, targeting unsuspecting individuals with promises of financial relief or better loan terms. For many Canadians, their home is their most valuable asset, making it critical to remain vigilant. Mortgage scams can come in many forms, including:

  • False promises for better mortgage terms.

  • Wire fraud during the closing process, where scammers impersonate legal professionals to redirect payments.

  • Reverse mortgage fraud, which drains home equity.

  • Loan flipping, where borrowers are pressured into repeatedly refinancing loans so lenders can collect excessive fees.

To safeguard your finances and peace of mind, consider these tips to avoid falling victim to mortgage fraud:

  • Research Lenders Thoroughly: Shop around for qualified lenders and verify their credentials on trusted sites like the Better Business Bureau.

  • Understand Affordability: Your mortgage payment should ideally range between 28-32% of your gross monthly income. Be cautious of lenders willing to exceed this threshold—it’s a red flag.

  • Never Prepay Without a Contract: Only provide payment to a lender once you have a fully executed agreement in writing.

  • Guard Personal Information: Avoid sharing sensitive details, such as banking or personal information, in response to unsolicited offers.

  • Read All Documentation Carefully: Take your time to review and understand all documents before signing anything. Consult a professional for clarity if needed.

  • Monitor Your Credit Report: Regularly check your credit report to identify unauthorized transactions early.

  • Consult Professionals: Be cautious of lenders who discourage you from seeking advice from a financial advisor, lawyer, or real estate professional.

  • Watch for High-Pressure Tactics: Legitimate lenders will never bully or rush you into a decision.

A Final Word of Caution

If an offer sounds too good to be true, it almost always is. Scammers often prey on desperation or eagerness, so keep your guard up and trust your instincts. By staying informed and cautious, you can protect your financial future from those who aim to take advantage of it.

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December 2024 Market Recap

A total of 613 homes were sold in December 2024 via the MLS® System of the Ottawa Real Estate Board (OREB), representing a 7.9% increase from December 2023.

Despite this rise, home sales were 6.8% below the five-year average and 2.7% lower than the 10-year average for December. Year-to-date sales reached 13,526 units by December 2024, an 11.8% increase from the same period in 2023.

“A year of wait-and-see came to a close with the expected slowdown over the holiday season,” said OREB President Paul Czan. “The latter half of the year brought signs of more favourable market conditions with consecutive interest rate drops, higher insured mortgage limits, and extended amortizations. It’s early to assess the impact of these measures. And it’s an uphill battle against affordability and supply issues that persist.”

“Listing activity indicates that sellers anticipate improved conditions could spur more activity from buyers who have been keeping a close eye on the market but hesitant to make moves. Buyers are still limited in their selection of affordable inventory that can meet current demands, which stalls movement. While the improving market conditions are encouraging, the supply needs to be there. Coming political shifts are adding a layer of uncertainty but there is a trending optimism for more increased market activity in the months ahead.”

By the Numbers – Prices

The MLS® Home Price Index (HPI), which tracks price trends more accurately than average or median prices, highlighted the following:

  • The overall MLS® HPI composite benchmark price was $645,800 in December 2024, up 3.8% from December 2023.

    • Single-family homes: $729,300, an increase of 3.7% year-over-year.

    • Townhouse/row units: $533,200, up 11.3% from a year ago.

    • Apartments: $404,400, down 2.5% compared to December 2023.

  • The average sale price in December 2024 was $663,781, a 4.4% increase from December 2023.

  • Year-to-date, the average price was $679,067, rising 1.3% compared to 2023.

  • The total dollar volume of home sales in December 2024 was $406.9 million, up 12.7% year-over-year. For the entire year, the total dollar volume reached $9.2 billion, an increase of 13.3% from 2023.

OREB cautions that while average sale prices offer insight into market trends over time, they do not reflect changes in the value of individual properties. Average price calculations are derived from the total dollar volume of all properties sold, with prices varying significantly by neighbourhood.

By the Numbers – Inventory & New Listings

  • New listings: 603 new residential properties were added in December 2024, marking a 13.6% increase from December 2023. This was 3.5% above the five-year average but 2.7% below the 10-year average for December.

  • Active listings: Residential listings totalled 3,216 units at the end of December 2024, a surge of 58.7% compared to December 2023. Active listings were 90% above the five-year average and 51.4% above the 10-year average for the month.

  • Months of inventory: There were 5.2 months of inventory at the end of December 2024, compared to 3.6 months in December 2023. This metric reflects the time it would take to sell all current inventory at the current sales pace.

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Canadian Housing Market 2025: Stability Returns Amid Evolving Lending Rules & Political Changes

In recent years, the Canadian housing market has experienced significant disruptions. A global pandemic, surging interest rates, and economic challenges caused the market to deviate from typical patterns. However, 2025 is anticipated to see a return to conditions more aligned with long-term historical trends.

The Royal LePage Market Survey Forecast projects that the aggregate price of a home in Canada will rise by 6.0% year-over-year, reaching $856,692 in the fourth quarter of 2025. The median price of a single-family detached home is expected to grow by 7.0% to $900,833, while condominiums are forecasted to see a 3.5% increase, reaching $605,993.

“After several years of unusual volatility in the real estate market, key indicators point to a return to stability in 2025. The backlog of willing and able buyers continues to grow, and upcoming changes to mortgage lending rules will further enhance Canadians’ borrowing power,” said Phil Soper, president and chief executive officer, Royal LePage. “Most notably, the Bank of Canada’s shift from ‘inflation fighter’ to ‘economy booster’ has taken time to influence buyer behaviour. We saw a marked increase in market activity at the start of the fourth quarter, following the Bank of Canada’s 50-basis-point rate cut. Buyers now believe home prices have hit bottom and are eager to act before competition intensifies.”

New Lending Rules to Enhance Borrowing Power

New lending regulations taking effect this month will provide improved accessibility for first-time buyers and existing homeowners. Starting December 15th, eligibility for 30-year amortizations on insured mortgages will expand to include all first-time buyers and purchasers of new construction homes, an increase from the current 25-year limit. Additionally, the mortgage insurance cap will rise from $1 million to $1.5 million, enabling buyers with less than a 20% down payment to consider higher-value properties. These changes will be especially impactful in Canada’s most expensive real estate markets, where average home prices often exceed $1 million.

“Improved lending conditions, combined with declining interest rates, will unlock new housing opportunities for many Canadians in the new year. First-time buyers will be the primary beneficiaries of these initiatives, as their ability to borrow more for less with a smaller down payment will help bring them closer to their first home purchase,” said Soper. “We believe the return of buyers to the market will encourage builders and trigger a wave of new supply, which is very much needed.

“Addressing Canada’s critical housing shortage must remain a top priority for policymakers at every level of government. With our population growing rapidly through both natural increases and immigration, it is essential to stay focused on supporting the development of new homes if we hope to address housing affordability, be it for purchase or rent.”

Shifting Political Landscapes and Potential Housing Impacts

The year 2025 is expected to bring political changes in both Canada and the United States, with potential implications for the housing market. In Canada, a federal election may introduce new housing policies that could temporarily influence market activity in the latter half of the year.

“With an election approaching in Ottawa and a new administration preparing to take office in Washington, the housing market faces potential disruptions. Here at home, a federal election will see new housing policies that may temporarily impact market activity in the second half of 2025,” said Soper. “Meanwhile, south of the border, the incoming Trump administration’s trade policies and broader economic agenda have the potential to create ripple effects for Canada’s economy and housing market. While these impacts may take time to unfold, they could eventually affect consumer confidence and market dynamics on both sides of the border.”

Highlights from the 2025 Forecast

  • Greater Montreal Area is expected to lead with aggregate home price growth of 6.5%, outpacing Greater Toronto (5.0%) and Vancouver (4.0%).

  • Quebec City is forecasted to see the largest increase among major regions, with an 11.0% rise in aggregate home prices, followed by Edmonton and Regina at 9.0%.

  • Calgary, along with Ottawa, Halifax, and Winnipeg, is projected to experience a moderate 4.0% home price increase, following significant appreciation over the last two years.

  • The median price of a condominium in the Greater Toronto Area is anticipated to decline by 1.0%, reflecting the addition of thousands of new units to an already surplus supply.

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Bank of Canada reduces policy rate by 50 basis points to 3.25%

The Bank of Canada today reduced its target for the overnight rate to 3¼%, with the Bank Rate at 3¾% and the deposit rate at 3¼%. The Bank is continuing its policy of balance sheet normalization.

The global economy is evolving largely as expected in the Bank’s October Monetary Policy Report (MPR). In the United States, the economy continues to show broad-based strength, with robust consumption and a solid labour market. US inflation has been holding steady, with some price pressures persisting. In the euro area, recent indicators point to weaker growth. In China, recent policy actions combined with strong exports are supporting growth, but household spending remains subdued. Global financial conditions have eased and the Canadian dollar has depreciated in the face of broad-based strength in the US dollar.

In Canada, the economy grew by 1% in the third quarter, somewhat below the Bank’s October projection, and the fourth quarter also looks weaker than projected. Third-quarter GDP growth was pulled down by business investment, inventories and exports. In contrast, consumer spending and housing activity both picked up, suggesting lower interest rates are beginning to boost household spending. Historical revisions to the National Accounts have increased the level of GDP over the past three years, largely reflecting higher investment and consumption. The unemployment rate rose to 6.8% in November as employment continued to grow more slowly than the labour force. Wage growth showed some signs of easing, but remains elevated relative to productivity.

A number of policy measures have been announced that will affect the outlook for near-term growth and inflation in Canada. Reductions in targeted immigration levels suggest GDP growth next year will be below the Bank’s October forecast. The effects on inflation will likely be more muted, given that lower immigration dampens both demand and supply. Other federal and provincial policies—including a temporary suspension of the GST on some consumer products, one-time payments to individuals, and changes to mortgage rules—will affect the dynamics of demand and inflation. The Bank will look through effects that are temporary and focus on underlying trends to guide its policy decisions.

In addition, the possibility the incoming US administration will impose new tariffs on Canadian exports to the United States has increased uncertainty and clouded the economic outlook.

CPI inflation has been about 2% since the summer, and is expected to average close to the 2% target over the next couple of years. Since October, the upward pressure on inflation from shelter and the downward pressure from goods prices have both moderated as expected. Looking ahead, the GST holiday will temporarily lower inflation but that will be unwound once the GST break ends. Measures of core inflation will help us assess the trend in CPI inflation.

With inflation around 2%, the economy in excess supply, and recent indicators tilted towards softer growth than projected, Governing Council decided to reduce the policy rate by a further 50 basis points to support growth and keep inflation close to the middle of the 1-3% target range. Governing Council has reduced the policy rate substantially since June. Going forward, we will be evaluating the need for further reductions in the policy rate one decision at a time. Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

The next scheduled date for announcing the overnight rate target is January 29, 2025.

Source: bankofcanada.ca

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Bank of Canada Cuts Interest Rates Amid Optimistic Economic Outlook

Today, the Bank of Canada lowered its target for the overnight rate to 3.75%, with the Bank Rate set at 4% and the deposit rate at 3.75%. The Bank continues its balance sheet normalization efforts.

Globally, the economy is projected to grow at a steady 3% over the next two years. Growth in the U.S. is anticipated to be stronger than previously expected, while China’s outlook remains cautious. The euro area’s growth has been sluggish but is expected to improve modestly next year. Inflation in advanced economies has decreased recently, aligning with central bank targets. Since July, global financial conditions have eased, partly due to expectations of lower policy interest rates. Additionally, global oil prices are roughly $10 lower than projected in the July Monetary Policy Report (MPR).

In Canada, economic growth was around 2% in the first half of the year, with an anticipated 1.75% growth in the second half. While overall consumption has grown, it has decreased on a per-person basis. Exports have seen a boost from the opening of the Trans Mountain Expansion pipeline. The labor market remains subdued, with the unemployment rate at 6.5% as of September. Population growth continues to expand the labor force, but hiring has been moderate, impacting young people and newcomers the most. Wage growth remains high compared to productivity growth, indicating excess supply in the economy.

Looking ahead, GDP growth is expected to strengthen gradually as lower interest rates support economic activity. A modest increase in consumer spending per capita, along with slower population growth, is expected to drive this recovery. Residential investment is projected to rise, fueled by strong housing demand, while business investment should pick up as overall demand grows. Exports are likely to stay robust, supported by strong U.S. demand.

The Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. As the economy gains momentum, the excess supply will gradually be absorbed.

Consumer Price Index (CPI) inflation has dropped notably from 2.7% in June to 1.6% in September. While inflation in shelter costs remains high, it has begun to ease. Excess supply in the broader economy has lowered the prices of many goods and services, and the recent drop in global oil prices has driven down gasoline costs. These factors have collectively brought inflation down. The Bank’s core inflation measures are now below 2.5%. With inflation pressures no longer widespread, expectations from businesses and consumers have largely stabilized.

The Bank anticipates that inflation will hover around its target range throughout the forecast period. The upward pressure from shelter and services costs is expected to diminish, while downward pressures should ease as the economy absorbs the current excess supply.

With inflation nearing the 2% target, the Governing Council has decided to reduce the policy rate by 50 basis points to bolster economic growth and maintain inflation around the mid-point of the 1% to 3% target range. If the economy aligns with the Bank's forecast, additional rate cuts are anticipated. However, the timing and pace of any future reductions will depend on economic data and its implications for inflation. Decisions will be made on a meeting-by-meeting basis. The Bank remains dedicated to maintaining price stability for Canadians, keeping inflation close to the 2% target.

Source: bankofcanada.ca

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Elevate Your Home's Exterior: 5 Easy Ways to Boost Curb Appeal

Curb appeal refers to the visual attractiveness and overall charm of a property's exterior. It includes elements like landscaping, architectural details, cleanliness, maintenance, and design features, all of which shape the first impression that potential buyers or visitors will have of the home.

With each changing season, it's an opportunity to refresh your home's outdoor space. Whether you're preparing to sell or simply take pride in your well-maintained home, there are several easy ways to enhance your home's exterior this summer.

Here are five effective strategies to boost your curb appeal:

  1. Revamp the Driveway Your driveway is one of the first things noticed upon arrival, making it crucial for curb appeal. Start by pressure washing to remove dirt and debris. If you find any cracks or loose stones, repair or replace them as needed. For a fresh look and added protection, consider sealing the driveway.

Adding a rock garden or hedge can enhance the visual appeal, providing a natural and attractive border that complements your landscaping.

  1. Tend to Your Lawn and Gardens An overgrown lawn and weed-filled garden can be off-putting. Improve your lawn by seeding, fertilizing, and aerating, and ensure it's adequately watered. Refresh garden beds with new mulch and plants. If starting anew, use landscaping fabric to keep weeds at bay while allowing water and air to nourish the soil.

  2. Enhance Your Front Entrance Your front entryway sets the tone for your home. Start by cleaning the area, fixing any damage, and replacing burnt-out light bulbs. Paint your front door a vibrant color to brighten the facade and protect it from the elements. Add decorative touches such as hanging or potted plants, comfortable seating, and a seasonal wreath to create a warm and inviting entrance.

  3. Update Your Deck and Patio Clean your patio and deck with a pressure washer and apply a fresh coat of protective stain to the deck. Remove weeds between patio stones and consider cleaning the siding and windows while you're at it. Refresh or replace weathered patio furniture and arrange it for optimal enjoyment.

Add potted plants to your deck or patio for added privacy and aesthetics. Large plants can act as a barrier from neighbors while also attracting beneficial wildlife like bees, birds, and butterflies.

  1. Upgrade Your Lighting Outdoor lighting can dramatically enhance your home's appearance after dark. Install pot lights under the eaves to illuminate the exterior and create a grand effect. Solar-powered lights along the driveway or walkway provide both functionality and a welcoming ambiance. If space allows, add a pendant light to the front porch for a cozy touch. Lanterns or string lights can transform your patio, deck, or backyard into a charming space for relaxation and entertaining.

By making these updates, you can significantly boost your home's curb appeal. Even small changes can make a big difference, helping to create a welcoming and visually appealing exterior that reflects your personal style and pride in your home.

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Where was the Spring Market?
Despite strong sales in the first quarter, Canada’s spring housing market was subdued across many regions in Q2 of 2024. The Bank of Canada's first overnight lending rate cut in June sparked significant interest, but did not lead to a noticeable resurgence of homebuyers. This cautious stance contrasts with rising inventory levels, resulting in more balanced market conditions.Royal LePage® forecasts a 9.0% increase in the aggregate price of a home in Canada in Q4 2024 compared to the same quarter last year. Nationally, home prices are expected to see continued moderate appreciation throughout the year's second half.“Canada’s housing market is struggling to find a consistent rhythm, as the last three months clearly demonstrated,” said Phil Soper, president and CEO of 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 by 1.9% year-over-year to $824,300 in Q2 2024. On a quarter-over-quarter basis, the national aggregate home price increased by 1.5%, despite a slowdown in activity in the country’s most expensive markets.By housing type, the national median price of a single-family detached home increased by 2.2% year-over-year to $860,600, while the median price of a condominium increased by 1.6% year-over-year to $596,500. Quarter-over-quarter, the median price of a single-family detached home increased by 1.8%, while the median price of a condominium increased by 0.8%.


Sustained High Interest Rates Run Risk of Buyer Rush

Over the last two years, the national housing market has experienced fluctuations in home prices, with some regional exceptions, due to the impacts of higher interest rates. As the Bank of Canada balances lowering the key lending rate and controlling inflation, some housing market segments 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 new home construction. Builders, heavily reliant on lending, are finding it increasingly difficult to finance new projects, exacerbating the housing shortage as the population grows.“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 labor 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 needed to meet demand. This situation urgently needs innovative solutions to ensure Canadians have access to affordable housing options,” concluded Soper.


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 the prairie provinces and Quebec.
  • Quebec City records the highest year-over-year aggregate price increase (10.4%) in Q2 among the report’s major regions.
  • Royal LePage maintains its national year-end forecast, with prices expected to increase by 9.0% in Q4 2024 over the same period last year.
  • According to a Royal LePage survey conducted by Leger earlier this year, 51% of sidelined homebuyers said they would resume their search if interest rates reversed.
 
 

Source: Royal LePage Team Realty

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Navigating Mortgage Renewal: Key Considerations for Canadian Homeowners

More than half of Canadian mortgages are set to renew before the end of 2026. With the Bank of Canada reducing its key interest rate from 5.0% to 4.75% on June 5th, many homeowners are now contemplating whether to choose a fixed or variable rate upon renewal. Understanding the available options and anticipating changes is crucial to effectively managing today's dynamic mortgage landscape.

Current Situation

During the pandemic real estate boom, variable rates were historically lower, but this trend has reversed recently. Currently, the average five-year variable interest rate offered by mortgage lenders is around 6.7%, while fixed rates are typically at 5.6%. Variable mortgage rates depend on various economic factors, including the key overnight lending rate set by the Bank of Canada. Although the central bank recently cut its key rate for the first time in four years, it could change course if inflation rises in the coming months. Economists expect further cuts by the end of 2024, continuing into 2025 unless economic conditions shift significantly. Despite declining rates, the historically low rates of the past two decades are no longer expected.

Considerations for Variable Rates

For variable-rate mortgages, an increase in the prime rate, influenced by the Bank of Canada's overnight lending rate, leads to higher mortgage payments. However, variable loans with fixed-payment options keep monthly payments unchanged, adjusting the mortgage amortization period instead. This results in a smaller proportion of each payment going towards repaying the principal.

Understanding Your Needs

Choosing between a fixed- and variable-rate mortgage depends largely on the borrower's risk tolerance and personal situation. Variable rates fluctuate, so consider if your lifestyle can accommodate these changes. Even if interest rates begin to fall, numerous economic factors influence their direction throughout your mortgage term. The right mortgage product depends on your short- and medium-term situation. If you're in a period of transition (career change, separation, etc.), a fixed rate might offer more stability.

Strategic Options for Borrowers

  • Fixed-Rate Mortgage with a Shorter Term: Amid economic uncertainty, many borrowers are opting for shorter-term fixed-rate mortgages (one, two, or three years). This approach allows borrowers to lock in predictable monthly payments without committing to the same rate long-term.
  • Hybrid-Rate Mortgage: This option combines features of both variable and fixed rates — part of the mortgage has a fixed interest rate, and the other has a variable rate. This allows borrowers to benefit from both stability and potential rate decreases.
  • Convertible Mortgage: This loan allows borrowers to convert a variable interest rate into a fixed-rate mortgage, or vice versa, before maturity. This flexibility helps adapt mortgage strategies to changing market conditions.

Consult a Professional

Ready to navigate your mortgage renewal with confidence? Contact us today! We can connect you with one of our trusted and experienced mortgage professionals who are ready to help you explore your options and find the best solution tailored to your needs. Whether you're considering a fixed or variable rate, they will provide personalized guidance to ensure you make an informed decision. 


Source: CBD

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