Is there an upcoming move in your future? Whether you’re relocating for a new career or just seeking a change in your life, moving can be a very exciting experience. However, you may have some big decisions ahead of you. The toughest by far is what to do with your existing home.

Selling might be the obvious choice. Housing prices remain high, even after falling somewhat since early 2022. If you purchased your property even a few years ago, you are almost certain to make a significant return on your investment. 

Then again, you’ve undoubtedly heard about the benefits of keeping an investment property for passive income and long-term equity growth. Perhaps you should hold on to your existing home and buy a second one. What is the best choice for you? Everyone’s situation is different, and selling or renting your existing home both have advantages and disadvantages. 

Keeping Your Home to Rent

Keeping your existing home as an investment can be one way to secure your financial future. Even when housing prices drop, they rarely stay low for long and the long-term trend is always up. Owning two or more properties can mean your equity grows faster as real estate values increase over time. 

With new immigration targets and a growing population, the demand for rental units could soon be greater than ever. Add monthly rental income to the equation, and the idea of becoming a real estate investor becomes even more appealing. What are the downsides?

It can be more expensive than you realize to keep a second home as a rental property. You must factor in the monthly carrying costs, especially when the house is vacant while you search for a tenant. 

There are also maintenance and repairs, insurance costs, and legal fees to consider. Collecting enough rental income to cover these expenses with some funds left over can prove challenging, especially with the high housing prices today. 

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Is investing the right decision for you? The following resources will help you be successful:

• A Guide to the Residential Tenancies Act for New Landlords
• What To Know Before Becoming a Landlord
• How to Sell an Investment Property

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Are You Ready to Be a Landlord?

Keeping your home can be a great option when you find the right tenant. Note the operative words – the right tenant. If you end up with someone who doesn’t pay rent on time or damages your property, you could be in for a world of headaches. You can try to evict them, but the process is often long and leaves you without rental income in the meantime. 

The fear of bad tenants is one of the biggest deterrents many people have to becoming landlords! However, vetting potential tenants thoroughly reduces this risk. Though there are no guarantees, performing background checks and talking with previous landlords are simple steps you can take to protect your investment.

Can You Finance a Second Property?

Holding on to your property can be even more expensive than you realize, something that becomes evident when purchasing a second home. In Canada, you need at least a 20% down payment on an income property, even if the price is $1 million or less. 

Although you could use your existing home as collateral for a second mortgage, not everyone wants to assume the risk.

Selling Your Home

If you don’t want the risk or the work that goes along with renting out your existing home, selling may be the best option. Still, the uncertainty of the market has some homeowners hesitant to let go of their property. What if you sell now only to see housing values rise in the coming months? It’s one of the questions we get asked most often, and there are three things to consider.

1. If you’re selling and then buying a house right away, a change in the market doesn’t affect you. If prices rise later, you will have earned more money from your sale. But your new house would also cost you more.
2. Housing prices might rise. But they could also drop even further, which means you earn less if you wait.
3. Even if prices fall, your loss is intangible. Unlike investing in real estate, where you stand to lose real money, selling your home is nearly risk-free. What does this mean? Imagine you bought a house in Burlington ten years ago for $500,000. During the housing boom of early 2022, average prices peaked at approximately $1.3 million. As of February 2023, they now stand at about $989,000. It might be tempting to look at what could have been. However, why not look at the gain instead? In ten years, the value of your house has almost doubled!

Selling your house after building years’ worth of equity can open many doors for you. You could upgrade to a larger home or downsize and pocket the difference. Alternatively, you can invest those extra funds in a new business venture or enroll in continuing education. The possibilities are endless!

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Depending on your situation, selling your home and moving on might be the best choice. In that case, these resources will help you get started:

• The Power of Staging When Selling Your Home
• Minor Upgrades, Maximum Results
• What’s Your House Really Worth?

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Achieving the Best Possible Results From Your Sale

If you decide selling your home is the right option, your next step is making a plan to help you get the best possible results. 

If you have time to spare, you can clean, declutter and make minor updates that catch the attention of potential buyers. Effective staging has also been shown to increase the final price and often leads to a faster sale.

If you need to sell quickly, you may not have time to handle the home preparations that can lead to the highest selling price. 

In either case, a full-service real estate team could handle all these details on your behalf. Local experts can help you earn the highest return on your investment with the least amount of effort on your part. This level of service and expertise is essential, especially when you have a busy schedule or family life.

Do you still have questions about selling your home or using it as an investment? We work with buyers, sellers, and investors all over Burlington, Hamilton, Waterdown, and Flamborough and are happy to help you weigh your options. Reach out to us right here or call 905-332-9223 to connect to our offices today. 

Selling your own family home is often associated with positive emotions and excitement for the next chapter of your life. Even though you may feel some stress during the process, your transition is still a life-changing event that you can look forward to. 

When selling for someone else, it can be a different story. You may be acting on behalf of an elderly or disabled relative who can no longer handle the transaction on their own. On top of a busy schedule, there are many details to attend to and the process can feel tiring. On top of everything else, there are legalities to be aware of.

What Does Power of Attorney Mean?

You cannot sell someone else’s property if your name isn’t on the title, and verbal permission from the owner is not enough. Before you can act on behalf of someone else, you will need POA (Power of Attorney) status. You can obtain this by speaking with your loved one ahead of time while they are still of sound mind and able to make critical decisions. Although you may be able to find documents online, it is always better if an experienced lawyer guides you through the process.

Here are the two types of POA to be aware of:

• Power of Attorney for Personal Care: This is where you will make decisions regarding medical care or health support on behalf of your loved one.
• Power of Attorney for Property: This designation allows you to make financial decisions for someone else, including selling a house.

Assigning Power of Attorney can be a sensitive subject, and many people prefer to avoid the discussion altogether. But life is full of twists and turns, and none of us knows what’s around the corner. Being prepared just makes sense. If you find yourself in the position of selling on behalf of someone else without POA, you’re in for a world of challenges and will likely have to go through the court system.

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Did you know that real estate contracts are legally binding? The posts below will help you stay on track:

• How Canada’s Newest Legislation Impacts Sellers
• What Real Estate Lawyers Do
• Conditions & Clauses on a Real Estate Purchase

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An Executor is Different From POA

You may hear talk of POA and Exectorship as if they are one and the same, but they are significantly different.

• POA grants you the ability to act on behalf of a relative while they are still living if they become unable or unwilling to manage their financial or health decisions. 
• If you need to enact the wishes of someone who has passed away, you must be an executor. 

While one person can perform both roles, each involves a level of responsibility, trustworthiness and ability to get things done. It may feel overwhelming when a relative asks this of you, but it shows you that they think highly of you!

Your Obligations as POA

Assigning POA can mean giving up a lot of autonomy, and someone has to have a lot of trust in you to put this kind of power in your hands. It’s your responsibility to take this role seriously and aim to always do right by them. It’s not just about not defrauding someone, which is obviously illegal. However, you should be mindful and considerate, doing everything possible to ensure your loved one feels that you are listening and acting in their best interests.

Even when you have POA privileges, it’s essential to keep the lines of communication open and let your loved one know what is happening to the best of their ability. You should respect their wishes if they are still capable and want to be involved in the process. In other words, having POA allows you to manage the legalities and details of selling a home for someone else. Still, you should only act with their permission and knowledge. 

In addition, you can’t use your authority to purchase the home for yourself unless you’ve previously come to a written agreement.

The Practical Side of Selling a House

Now that you know about your moral and legal obligations as POA, it’s time to take a look at the nuts and bolts of the selling process. It’s a little different than handling your own transaction. Ideally, you want plenty of time to prepare for a sale so you can earn the highest possible return on investment. 

However, selling a house for someone else often comes with challenges and limitations. For example, finding the time to clean, declutter, paint and update a home you don’t live in can be tricky. You may have even less time to prepare if you need to sell the house quickly.

Since your elderly relative may find living in a construction zone stressful, you are limited as to what updates or renovations you would have otherwise made. Instead, you’ll focus on the minor steps you can take that will impact the final price.

How to Make Your House Stand Out With Minimum Effort

• Going through the house with a fine-tooth comb to ensure every room is sparkling clean and clutter-free will help make a positive first impression on potential buyers.
• Focus on the outside of the home. The effect of curb appeal cannot be overstated, and there are so many improvements you can make that will not disrupt your relative. A well-manicured lawn, seasonal decor and even a flower garden can make the home look warm and welcoming before a potential buyer steps inside.
• Make minor repairs and updates that refresh and elevate the interior of the home. Fixing up any peeling paint and replacing worn-out hardware and light fixtures will go a long way toward maximizing the value of your sale.
• Staging can transform the appearance of the home with far less effort than you realize. Your real estate agent may even offer this service in the listing agreement.

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Looking for more tips to maximize the value of the sale without investing heavily in renovations? Our posts below will give you some ideas:

• Minor Upgrades, Maximum Results
• The Power of Staging When Selling Your Home
• How To Stand Out In A Changing Market

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A Local Real Estate Agent Can Help

Selling a house can be time-consuming, especially when you’re acting as a POA for someone else and juggling a busy career or family life. However, a local real estate agent can coordinate every aspect of the transaction, from pricing the home competitively for the market to knowing what updates to make for the best results. Above all, you’ll have an expert standing by with a friendly ear to provide you with non-stop support every step of the way.

Do you have questions or concerns about selling a home for yourself or someone else? Our experts are ready for anything and are here to help. Reach out right here or call 905-332-9223 to connect with us today.

In 2023, January 1st kicked off more than a host of New Year’s celebrations. It also marked the beginning of new legislation in the real estate market designed to make Canadian homes more affordable. Are these latest developments bad news if you plan on selling your home in the upcoming year? On the one hand, these new guidelines could impact your sale by making the pool of buyers smaller. However, there are other demographic changes taking place that might negate the effects of these new laws and even increase the demand for housing. Here are four new rules that all homeowners should be aware of, especially when planning to sell in the next year or two.

Two-Year Ban on Foreign Investors

For the next two years, foreign investors are banned from buying residential properties in Canada with very few exceptions. The penalty for contravening this ban could result in being forced to sell the property and a fine of up to $10,000. 

The intention is to make houses more affordable and available for Canadian residents and their families. For many, it’s welcome news in light of the critical housing shortage in the current market. 

Will the ban make a difference? Some experts think the effect will be minimal, given that foreign buyers only make up 6% of national homeownership as it is.

As a seller, this ban could remove some potential buyers who may be interested in your home. However, available listings are still lower than average, and plenty of local residents are still searching for suitable houses. 

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No matter how the market changes, some things will always stay the same! Check out some of our best tips for maximizing your sale at any time:

• The Power of Staging When Selling Your Home
• Minor Upgrades, Maximum Results
• How To Stand Out In A Changing Market

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Anti-Flipping Tax

While still legal, flipping a house for profit has become far more expensive. Until recently, it was possible to buy a property, make a few minor cosmetic improvements and then sell it at a massive profit. We may not know the extent of how much flippers have contributed to the housing supply and affordability crisis. All we know is that the government is finally stepping in with a hefty tax that makes flipping far less attractive. The proceeds were once considered to be capital gains, which meant only 50% of the profits were taxable. Under this new legislation, 100% of all profits will be taxed as business income on any property held for less than 12 months. Some exceptions will apply for extenuating circumstances, such as:

• Death of a family member
• Divorce or separation
• Job loss
• Illness, injury or disability

The new tax implications combined with softer market values make it much more challenging to make a quick profit by flipping houses. Real estate investors will have to adopt more long-term strategies to make their properties financially viable.

When selling a residential home, this new law will likely have minimal impact as the population increases and more people re-enter the real estate market. 

Still, you’ll want to do everything you can to achieve the best results. That may include staging your home and making minor updates to make it as visually appealing as possible. And, of course, don’t forget to work with a local real estate expert who can help you price and market your home effectively!

Vacant Home Tax

Though the entire province has faced a housing shortage, the City of Toronto has been hit particularly hard. The municipal and provincial government has been under intense pressure to take action. The result in 2023 is a new tax for homeowners in Toronto to contend with. Any residential property that sits vacant for six months out of the year will now be subject to an annual penalty of 1% of the appraised value. Exceptions will be in place in certain circumstances, including: 

• The principal resident goes into care
• The death of the registered owner
• Extensive renovations or repairs are being performed
• Transfer of ownership to an unrelated person or corporation
• A court order probits occupation
• The property is required for employment purposes where the owner has a primary residence outside of the GTA

The purpose of the Vacant Home Tax is to encourage existing homeowners to either sell or rent out their properties and free up much-needed housing for city residents. With the average house price in Toronto currently sitting at over $1 million, this tax could be a significant burden, especially with no rental income to help cover the carrying costs. The revenue collected will support affordable housing initiatives in the city.

How will this tax affect the real estate market in the GTA? Any homeowner wishing to avoid paying might rush to list their vacant property, which could result in a temporary influx of houses for sale. If you plan on listing your home in the next few months, you may need to work extra hard to stand out from competing sellers.

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You can’t discount the power of accurate information if you want to sell your home and get the best results. The resources below will help:

• What’s Your House Really Worth?
• Should You Wait Until the Timing is Better to Sell Your Home?
• How To Negotiate A Real Estate Contract

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Canada’s Immigration Targets

All of the above legislation may have worked to make housing more affordable. However, Canada’s new immigration targets may offset any benefit. One of the lasting effects of the pandemic was that a vast number of people permanently left the workplace. 

To assist businesses scrambling to fill staffing shortages, Canada will welcome approximately 1.5 million new residents to the country over the next three years.

Many of these newcomers will settle in or near the GTA, and all will need housing. As the population grows, we could soon see another surge in demand for both rentals and properties to purchase. If that happens, the market could become more competitive, with houses selling quickly and commanding higher prices.

Do you have questions about the selling process or how to maximize your results in the current market? Our trusted experts are standing by and happy to help! Reach out today right here or call our office at 905-332-9223.

Selling or buying a home is about more than finding a place to rest your head. It is a business decision as much as a personal one, involving many calculations to determine if a deal is viable. As a seller, understanding your buyer’s motivation is essential to everything you will do throughout the transaction. From deciding what home upgrades make the most financial sense to comparing the value of other homes in the neighbourhood, your research will help you enjoy the best outcome. However, you never want to lose sight of the fact that purchasing a home is also one of the most emotional moments of your buyer’s life. And that brings us to why staging is so important. 

Creating an Impactful First Impression

Prospective buyers often decide if they love your home before even getting out of the car. With effective staging, you can wow them the moment your house comes into view. By the time they reach the front door, they should already be imagining living in your home. Succeed in making that instant first impression, and you’ve accomplished the most challenging aspects of the sale. Everything from now on is about maintaining the momentum you have gained from that first moment.

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Staging is more about design and flow than renovating or upgrading your home. If you want even more ideas to maximize the value of your sale, check out the posts below:

• Minor Upgrades, Maximum Results
• What’s Your House Really Worth?
• Upgrades You Should Make to Your Home Before Selling

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Inspiring the Imagination

A good real estate agent knows how to talk and present the best highlights of any listing. But words pale in comparison to what potential buyers can see, feel, touch and sense for themselves. Hence the old saying, “A picture is worth a thousand words.” 

However, nothing is more valuable than the picture someone creates in their own imagination. As a seller, staging allows you to use this principle to increase the perceived value of your home. How you decorate and the fixtures you place in each room will have a dramatic effect on a buyer’s subconscious. 

When decorating to your own tastes, you’ll fill your home with your favourite personal belongings. Pictures of loved ones may smile at you from every wall. But staging to sell is different.

For example, you may have read about the importance of “depersonalizing” your home. That means removing all those personal touches that remind potential buyers that they are in your home. Instead, it should be beautiful but impersonal. That’s what allows them to fill in the details with their own imagination.

Staging is About the Whole Effect

Strategic renovations can help increase the value of your home, but staging takes it even further. Every decor item has a purpose, and everything is designed to flow seamlessly from one room to the next. Countless tiny details all come together for one stunning effect. For example, even something as simple as moving a tall cabinet to the furthest wall away from the window can help by increasing the natural light in the room. 

The before and after photos below show how transformational proper staging can be:

The Numbers Don’t Lie

Effective staging relies on an impeccable eye for design, which is why many sellers are willing to invest thousands of dollars in hiring a professional staging company. Each dollar spent comes back multiplied when the transaction closes. The effectiveness of staging is well documented. One study by the Real Estate Staging Association suggests that 85% of staged homes sold for 5% to 23% over their list price. The jury is out, and there is very little debate that staging works to help sell a house faster and for more money.

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Understanding the market is another key factor in your selling success. The articles below will help fill you in:

• Should You Wait Until the Timing is Better to Sell Your Home?
• How To Negotiate A Real Estate Contract
• Fact Vs Fiction About Working With A Real Estate Agent

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Your Staging Options

Should you stage your home yourself or hire in-house professionals to do it for you? The answer depends on your resources and whether or not you have the time and ability to do it well. Proper staging requires an eye for detail, design, and colour coordination. And remember, it’s not just about making your house look beautiful. Professional stagers know what buyers want to see and create your design for maximum impact. For the most part, allowing trained experts to handle the process for you will result in a more successful sale. On the other hand, it can also get expensive, especially when hiring a designer with a stellar reputation. If you have a flair for design and decide to do it for yourself, here are some tips to help:

• Try to imagine who your prospective buyer might be and plan your design in a way that appeals to them. For example, someone looking to downsize may prefer an old-fashioned look. In contrast, a first-time buyer might want something more modern and trendy.
• Clean and declutter your home, especially in the areas that get the most attention. Many buyers focus heavily on the living room, kitchen, bathroom and bedrooms. A sparkling clean house is the first step to wowing buyers and will help you achieve results–even if you do nothing else.
• Remember that less is more. Too much furniture or furniture that is too big for the room can make your house seem cramped. 
• Focus on maximizing the natural light in your home. Replace dark curtains with sheers that allow the sun to shine through. Place lamps strategically to light up naturally dark corners.

Don’t Forget the Outside

When dressing up your home for sale, don’t forget about the outside. The first impression begins at the end of the driveway. A clean front porch, well-kept lawn, and well-placed seasonal decor will go a long way to making your home seem welcoming and desirable!

At Woolcott Real Estate, we believe so strongly in these results that we offer free staging services to every listing we represent. Helping you achieve a stress-free sale at the highest amount possible is our top priority. Reach out to us right here or call 905-332-9223 for more information or to get started today.

When you first think about listing your home for sale, a million thoughts may run through your mind. There’s much to consider before the “For Sale” sign goes up. You’ve got to research the neighbourhood and determine what price will get the most attention. However, those details come later. The first thing you want to do is find out how to maximize the value of your property in the current market.  

It makes sense to make some upgrades to make your house more appealing. A few strategic renovations can potentially add thousands of dollars to your final selling price. Others can disrupt your lifestyle and cost far too much to be worthwhile. How do you know what is worth it and what is not?

Before investing in any updates, your first step should be to find out what your home is currently worth. You can book a home evaluation for free right here.

The General Rule of Home Renovations

For many years, the general rule was that you should expect to earn $10,000 for every $2,000 invested in home improvements. It wasn’t uncommon for house flippers to buy a fixer-upper, make a few cosmetic upgrades and then sell it at a huge profit. However, all bets are off in the current market. There are too many factors at play and no easy answers. 

Even if an upgrade adds value, it’s up to you to decide if the extra money is worth the time and effort of living in a construction zone. Extensive research will help ensure your renovations pay off before investing several months and thousands of dollars on something that doesn’t increase your selling price by a high margin.

Your best bet is to focus on the low-cost, minimally invasive upgrades that help make your home show well to potential buyers.

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Selling your home can be a complicated process, but it doesn’t have to be. Here are some other resources to take the stress away:

• Should You Wait Until the Timing is Better to Sell Your Home?
• How To Negotiate A Real Estate Contract
• How To Stand Out In A Changing Market

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Consider the Current Market

The current market is another factor that will influence the value of any upgrades you make. In a buyer’s market, homes take longer to sell because fewer people are searching. You may face a lot of competition from other sellers. In that case, you’ll have to pull out all the stops to make your house stand out. Still, we don’t recommend investing in a major overhaul of your home–unless the research shows it will pay off.

In a seller’s market, buyers have few listings to choose from. Multiple offer scenarios and bidding wars happen frequently. In these conditions, your home may sell quickly above your listing price with few, if any, upgrades.

The real estate market moves quickly, and what happens to the market overall isn’t the same everywhere. For example, houses may sell slowly in general but quickly in highly desirable neighbourhoods. The bottom line is that every situation is different, and you’ll always want the advice of a local real estate agent before investing in significant renovations.

Who Is Your Audience?

In any given market, you’ll have different profiles of buyers looking at your home. It could be a young professional who is a first-time buyer, a family looking to upgrade to a larger house or an empty nester looking to downsize. If you’re selling a condo or small townhouse, your listing will not likely attract a move-up buyer. 

On the other hand, a two-storey, four-bedroom home is probably out of reach for most first-time buyers. Why is it important to know this?

• Young first-time buyers may be unable to make upgrades themselves and will likely want something move-in ready. Any renovations should add functionality to the home, but you’ll want to avoid adding luxurious features that unnecessarily drive up the price.
• A downsizer who is selling their family home will have money to spend. They could hire a contractor to renovate the property to fit their needs. However, many would prefer to avoid the hassle altogether. A downsizer with money may appreciate your luxury upgrades much more than a first-time buyer!
• A family with dual income may be looking for a home with a modern touch. A few upgrades to smart technology and an energy-efficient HVAC system may be what you need to stand out.

Knowing who your most likely buyer will be will help you decide what renovations to make and how much to invest. 

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The right real estate agent can help you maximize the results of your sale and leave you with more money in the bank after your transaction closes. Find out more in our posts below:

• Fact Vs Fiction About Working With A Real Estate Agent
• Can a Local Agent Sell Your House For More Money?
• How Do Real Estate Agent Fees Work?

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Renovations to Avoid

When preparing your house for sale, it’s critical to understand that there’s a difference between renovating for enjoyment and upgrading to add monetary value. For example, adding a swimming pool may give your family years of happiness and fun, which is worth it at any price if you plan to stay in the home. But it doesn’t make any sense to pay $30,000 or more to install a pool that the new owner will remove. Renovations for your enjoyment can end up costing you when the time comes to sell. Other examples may include:

• Adding solar panels
• Installing carpets
• Installing a wine cellar
• Removing a bathtub in favour of a shower only
• Eliminating a bedroom to create an oversized room
• Too many customizations

Top Upgrades That Increase Your Home’s Value

Before deciding to invest any time or money, it is always wise to consult with your real estate agent. As we mentioned, every buyer is different, and conditions vary by neighbourhood. However, many updates almost always pay off, even if it’s just to help your home sell faster in a slow market. 

Your first step is to clean, clean, clean and then clean some more. A thorough cleaning and decluttering of your home costs you nothing but time. But this step alone can help you make a stunning impression on a prospective buyer! 

Here are some other minor updates you can perform that can add significant perceived value to your home:

• Refresh the paint, especially in the kitchen, bathroom, bedrooms and living room. 
• Replace light fixtures. 
• Install new handles on all cabinet and closet doors.
• Replace the silicone around the bathtub and showers.
• Clean up the front yard and add a few seasonal decorations.

When it comes to renovating and preparing your home for sale, less is sometimes more. Done right, a few strategic but minor updates will help you achieve the best results in the least amount of time.

Do you want expert guidance to prepare your home and maximize the value of your sale? Our dedicated professionals are committed to your success and are here to answer any questions you have. Reach out to us right here or call 905-332-9223 to get started. 

It seems unreal that another year is upon us already. However, here we are, just 19 days from welcoming 2023. What will the coming year look like for the real estate market?  

The recent softening of the market may have some people feeling discouraged. Still, there are many reasons to be cautiously optimistic about the year ahead. Let’s take a look at some of the top predictions for 2023.

What We Don’t Expect

Before we get into what we think will happen, let’s talk about one thing we don’t expect. With the sharp interest rate hike in July and the subsequent softening of the real estate market, a sense of fear began to set in. Will the market ever crash again like it did in 2008? While we can’t see that far into the future, no one expects that to happen any time soon.

Even though sales have slowed down, there is too much demand for housing for the market to crash. It isn’t just because the population is growing. In fact, Canada’s new immigration policy nearly assures us that the market will pick up again shortly.

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In an uncertain market, it can be difficult to make the decision to buy or sell a home. Here are some of our other resources that can help:

• Should You Wait Until the Timing Is Better to Sell Your Home?
• Tips for Buying Your First Home During a Changing Market
• How to Stand Out in a Changing Market

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Immigration Will Affect the Housing Market in 2023

The federal government has recently increased immigration targets, with a goal to bring in 1.45 million permanent residents over the next three years. As a result, we expect approximately 500,000 new immigrants in 2023 alone. Why would the government do this?

You may have noticed “Help Wanted” signs everywhere you go. The Canadian job market has exploded as many people left the workforce during the pandemic, either changing careers or retiring altogether. Currently, there is a shortage of workers across nearly every sector in the country. 

Increasing the number of immigrants is one way to fill these badly needed positions. 

Every single new resident will need accommodations, whether buying or renting. That’s why we believe that the new immigration policy will be a massive boost for the real estate market and the economy as a whole. For homeowners thinking of selling, this is fantastic news. However, buyers may soon begin to notice more competition for available listings.

The Government Will Double Down on Efforts to Build Affordable Housing

Available housing is already in short supply, which led to the real estate boom we experienced over the last two years. Bringing in 500,000 new immigrants will upset this supply and demand even further, putting pressure on provincial and federal governments to address the issue.

Already, there are policies in place to help make housing more available and affordable. The federal Housing Accelerator Fund aims to create 100,000 new homes over the next five years. And according to the Canadian Mortgage and Housing Corporation, Canada will have 19 million new housing units by 2030 if construction continues at the same pace.

Provincially, plans are in place to cut development costs and allow current property owners to build up to three residential units on a single lot.

Interest Rates Will Hit Their Peak

There is no question that rising interest rates were the catalyst for the sudden drop in housing sales. The Bank of Canada raised the rate by a full percentage point in July 2022 in an aggressive attempt to curb inflation.

The impact on the already slowing real estate market was immediate and drastic. Buyers put their plans on hold, and homeowners struggled to sell. However, these sharp interest rate hikes are likely at an end for the time being. At the very least, they will return to more traditional 0.25-point increments.

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Some aspects of real estate never change, regardless of the market or the economy. Here are a few things you should know that you can always count on:

• How to Negotiate a Real Estate Contract
• What Real Estate Lawyers Do
• 7 Amazing Benefits of Working With a Real Estate Agent

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Housing Prices Will Drop in the Short Term

After the rollercoaster ride of 2021 and 2022, many analysts predict that 2023 will usher in a return to more balanced conditions in the real estate market. The Re/Max 2023 Housing Market Outlook suggests housing prices will drop 3.3% from the 2022 average.

A report by Desjardins goes even further, suggesting that housing prices will drop 25% by the end of 2023.

Even with higher interest rates, that might be enough of a price dip to encourage would-be buyers to get back into the market. This leads us to our next prediction:

Housing Sales Volume Will Increase

Even with falling prices, real estate sales have been slow over the past six months. The fast and furious pace of interest rate hikes shocked the market, which simply needed time to adjust. Now, we are at the nine-month mark from when interest rates began to climb.

During that time, demand for housing hasn’t disappeared. People are still getting married, having babies, looking for larger homes and downsizing. 

A recent survey indicates that the intent to buy a home is back to pre-pandemic levels, with many potential buyers resuming their search in 2023. In October 2022, housing sales began to pick up slightly. Many experts believe that we are now at the “beginning of the end” of the slowdown.

Regardless of what happens, it will be interesting to see how these projections play out throughout 2023. In any case, the one thing we can count on is that the market is unpredictable. Even if every analyst is correct, there are too many variables, regions and micro-markets to base decisions on these predictions. As always, your best bet is to make your move when it is right for you. 

Do you have a move coming up in 2023? We can help you navigate the changing market to get the best possible results, whether buying or selling. Best of all, you can book a free consultation where we will answer any questions you may have. Reach out today right here or call 905-332-9223 to schedule your appointment.