Strong First Quarter for BC Housing Markets, But Risin

The British Columbia Real Estate Association (BCREA) reports that a total of 11,463 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in March 2022, a decrease of 24.1 per cent from a record March 2021. The average MLS® residential price in BC was $1.096 million, a 15.7 per cent increase from $946,813 recorded in March 2021. Total sales dollar volume was $12.6 billion, a 12.1 per cent decline from the same time last year.

“Home sales in the province continue to moderate from record highs of this time last year,” said BCREA Chief Economist Brendon Ogmundson. “Given the sharp rise in Canadian mortgage rates and expected tightening from the Bank of Canada, activity will likely slow further in the second half of this year.”

 Provincial active listings were 12.4 per cent lower than this time last year with the total inventory of homes for sale in the province at under 20,000 units. That level of inventory remains well below the roughly 40,000 listings needed for a balanced market. 

 Year-to-date, BC residential sales dollar volume was down 4.1 per cent to $28.8 billion, compared with the same period in 2021. Residential unit sales were down 20.1 per cent to 26,577 units, while the average MLS® residential price was up 20 per cent to $1.086 million.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  BCrea

Bank of Canada hikes benchmark interest rate to 1%

 

Biggest one-time increase in central bank's rate since 2000

Tiff Macklem, governor of the Bank of Canada, said that higher interest rates are going to be necessary to bring down high inflation

The Bank of Canada hiked its benchmark interest rate by half a percentage point to one per cent on Wednesday in its latest move to rein in high inflation.

The bank's rate impacts Canadian businesses and consumers by influencing the rates they pay and receive on things like mortgages, GICs and savings accounts.

The bank slashed its rate to barely above zero in March of 2020 when the pandemic began.

While the move helped the economy to weather the unprecedented uncertainty of COVID-19, in recent months, inflation has come roaring back to its highest level in decades, prompting the central bank to start unwinding all that cheap credit.

"Inflation is too high," Bank of Canada governor Tiff Macklem said at a press conference announcing the news. "We need higher interest rates."

It's the second time in as many months that the bank has ratcheted its rate higher, and as such Wednesday's move is both the bank's first back-to-back rate hike since 2017, as well as its biggest single hike since the year 2000.

Economists were expecting the move, and with inflation flirting with six per cent, they expect more to come, at least until the central bank's rate gets up to two per cent — and possibly beyond.

Selling off bonds, too

The rate hike isn't the only thing the bank is doing to remove stimulus from the economy,

Previously in the pandemic, the bank began a program to buy up bonds as a way to keep money flowing and borrowing costs low. Known as "quantitative easing," the bank has been signalling for a while that the bond-buying program may be coming to an end, and on Wednesday the bank announced it is now moving in the opposite direction, getting rid of all those bonds on its books as they expire.

"Maturing Government of Canada bonds on the bank's balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time," the bank said.

That will add to the cost of borrowing, since the the central bank being removed as a guaranteed buyer of all those bonds will force those who issue them to have to pay a higher rate to borrow money.

Those rates were headed higher even before the bank's decision. The yield on a five-year bond topped 2.7 per cent this week, the highest rate since 2013. Barely a month ago, it was less than 1.5 per cent, and at one point earlier in the pandemic, it bottomed out at below 0.5 per cent.

The bank's decision to implement a "quantitative tightening" program will push those yields up even further, making fixed-rate mortgages more expensive.

Variable-rate loans, meanwhile, are pegged to the bank's rate, so they too will be headed higher as a result. Within hours of the central bank's decision, all five of Canada's biggest lenders — RBC, TD, Scotiabank, CIBC and BMO — had raised their prime rate by 50 points to match the central bank's rate hike.

Harder to buy

Anyone on a fixed rate loan is immune from higher rates for now because they've locked in, but anyone on a variable rate loan will feel their rate go up likely as soon as their next payment.

And those in the market for a loan face a steeper hill to climb now. One of the biggest impacts of this rate hike will be on first-time buyers, because higher rates will raise the bar for the stress test that calculates how much they are allowed to borrow.

A mortgage broker with Lowestrates.ca says that the exact amount will depend on people's situations, but in general, every 25-point move in the bank's rate results in a loss of about $12,000 of purchasing power. Wednesday's 50-point hike is twice that.

"Because of this people are going to qualify for a little less money than they used to qualify for," they said in an interview.

While home loans are the most obvious way that interest rates affect Canadians, anyone with debt is likely to feel the pinch.

Other debt more expensive, too

In Edmonton, Michelle and Candace Lister know first-hand how debt loads are usually manageable, right up until they aren't. While they both make good incomes and own their home, their stable financial life started to unravel after a car accident totalled their vehicle in 2019.

They owed more money on their written-off van than it was worth, so that debt got rolled into a new car loan in 2020.

Then they both contracted COVID-19 in 2021, which resulted in them not being able to work for a while, which caused their incomes to temporarily plummet to the point where they couldn't stay on top of the payments.

"We ended up going further and further into the credit cards, and then it was really difficult to get out," Michelle told CBC News.

The couple are currently negotiating a settlement with their creditors, but they feel compelled to share their story as a cautionary tale to others about how easy it is to drown in a high-rate environment.

"I think there's more people than one might imagine … in the same situation," Michelle said.

Rate hikes 'good and bad'

Changes to the bank rate may be bad news for borrowers but they also have a positive impact on the other side of the ledger, too. Toronto resident Paul Fotia is a retiree on a fixed income, and he says anyone trying to live off savings will welcome higher rates.

"The people that are affected negatively by it certainly outstrip the others," he told the CBC in an interview, "but hopefully it'll do what it's supposed to do with the inflation rate."

He recalls a time when something as simple as keeping money in a bank could net a saver 14 per cent or more. "Now you've got to look for places to put it and to scratch out ... a couple of percentage points."

That's part of why for consumers, rate hikes are "good and bad," according to Bruce Sellery, CEO of Credit Canada Debt Solutions.

Brace yourself: Interest rates could be headed up even faster and higher than we thought

"They are bad in that it's going to cost you more to borrow money, but they are good in that they are the action that a central bank can take to try and control inflation," he told CBC News in an interview.

Canada's inflation rate hit 5.7 per cent last month, and the price of everything from food to housing to gasoline is going up at its fastest pace in decades. "Something needs to be done so that we're not paying such ridiculous prices for things," Sellery said.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  CBC

The Federal Government Doubles Down on Housing Affordability

In the April 7th release of the 2022 Federal Budget, Ottawa highlighted housing affordability on page one as the primary focus of the new spending plan. With housing prices across the country increasing by 62% between Jan 2020 to Feb 2022 Canadians are calling on all levels of government to cool the red hot real estate market.  Ontario has seen some of the largest increases in pricing in areas like London, Windsor-Essex and Niagara where prices have all exceeded 80% growth in the past two years. While the Ontario Provincial government released plans last week, Ontarians and home buyers from across the country are hoping for more from the Trudeau government to combat the dream of owning a home becoming increasingly out of reach.  The federal government outlined in A Plan to Grow Our Economy and Make Life More Affordable, a doubling the pace of home construction, a tax-free way for new home buyers to save, a temporary ban on foreign buyers and a tax on property flippers amongst other initiatives.

Ottawa promising to double the amount of new homes built

At the heart of the housing price boom are a few key arguments, one is the need for more supply.  With the sales-to-new-listings (SNLR) being firmly in a sellers market for the majority of the pandemic with points of historically low supply, weary home searchers will tell you there is just not enough out there to buy.  Fundamentally, Canadians need access to a larger supply of various home types to meet the needs in both urban and rural areas of the country.  In the past 10 years approximately 1.9 million homes have been constructed in Canada.  With this budget, the government has ear-marked $10 Billion across various initiatives to help double those targets.  Most notably, $4B for the CMHC to create 100,000 new units, an additional $1.5B to new affordable housing units, $3B for repairs to existing units.  While the influx of new homes may have an important and positive long term impact, it won’t be a quick fix for those in the market for a home today. 

 

 More supports and tax breaks for first time home buyers

The strain on supply is an important factor that has led to some of the fastest growth in home pricing in Canadian history.  The Trudeau government hopes to help young Canadians to fulfill their dreams of home ownership with a new tax-free savings account for first time home buyers.   Starting next year, Canadians will be entitled to contribute up to $8,000 per year to a Tax-Free First Home Savings Account program up to a lifetime limit of $40,000.  While this is a welcome program to those who can afford to save; with rising inflation, some economists say that this program will be out of reach for a segment of the population for the foreseeable future.  It is difficult to save with the strain of increased prices across other areas like gas and food.  With the ability to save more money tax-free, there is risk that this program will not deter price growth but rather potentially increase prices as buyers may have more in their coffers for down payments available. With the introduction of this program coming next year, this is also not an immediate quick fix for today’s competitive market conditions.

Foreign buyers not welcome here, at least for the next two years

Like many provincial jurisdictions, Ottawa is taking aim at the foreign buyers by limiting speculation through a proposed two-year ban on purchases of residential real estate by people and companies who aren’t citizens or permanent residents.  Minister Freeland also outlined the enforcement of tax on “flippers” or anyone buying or selling a property within a year to be fully taxed on their profits. 

Any immediate cooling effects

Many are encouraged that more levels of government, including the Federal level, are attempting to tackle the sky-high housing prices and lack of available inventory.  However, for those facing acute issues right now with inflation, saving and supply in key markets, it makes it difficult to have a significant impact in the short term.  Analysts are now expecting rising interest rates to have the most immediate effect on slowing the price growth in most major markets across the country.  The Bank of Canada is expected to announce additional rate hikes next week. 

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  RE/MAX

Richmond home sales and listings fell in April, said real estate board

Some realtors pointed out that the slowdown was due to increased rates hikes, but the News found that the home sales dropped way before the interest rate hikes.

Real estate activity in Richmond seems to have dropped again after the Bank of Canada raised interest rates to curb inflation.

Listings and completed sales continued to drop in Richmond in April – as well as across the region – all the while home prices continued going up, according to the latest report from the Real Estate Board of Greater Vancouver (REBGV).

The benchmark price for a single-family in Richmond was about $2.18 million in April – up less than one per cent from March but up by almost 16 per cent from a year ago.

All residential homes – single-family, townhouses and condos - in Richmond were up on average 18.2 per cent from a year ago with the benchmark price at about $1.25 million.

Some realtors told the Richmond News that the slowdown in sales probably started because the Bank of Canada increased interest rates on April 13 in order to curb inflation.

However, the News noted that home sales slowed down even before the interest rate hikes.

For example, the total number of home sales in Richmond was 555 in March, a significant decline compared with March 2021 when 761 home sales were completed.

The REBGV also reports that home sales in the Greater Vancouver region totalled 4,344 this past March, a 23.9 per cent decrease from the 5,708 sales recorded in March 2021.

The Bank of Canada noted the ongoing Russian invasion of Ukraine and supply disruptions caused by the war are the primary drivers prompting the increase in interest rates.

Home listings and sales down

Listings of all different homes types in Richmond dropped from 878 in March to 750 in April.

Furthermore, 20 fewer home sales were completed in April (425 sold) compared to March (455 sold).

And this isn’t an isolated situation.

For example, home sales in North Vancouver also dipped from 343 in March to 275 in April. Burnaby showed the same trend with total home sales decreasing from 525 in March to 388 in April.

The real estate board said residential home sales in the region totalled 3,232 in April, down by about 1,100 sales the month before, and down by almost 1,700 from a year ago.

Listings across the region also decreased by 8.5 per cent in April, with 6,107 homes listed for sale in April. This is more than 23 per cent fewer listings than a year ago.

"So far this spring, we’ve seen home sales ease down from the record-breaking pace of the last year,” said Daniel John, Chair of REBGV.

 “While a small sample size, the return to a more traditional pace of home sales that we’ve experienced over the last two months provides hopeful home buyers more time to make decisions, secure financing and perform other due diligence such as home inspections.”

Are you looking to buy or https://www.michaelcowling.com/sellers/ property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  Richmond News

Fraser Valley approves plan for massive ski resort expansion

 

The long-envisioned plan to provide Sasquatch Mountain Resort (SMR) with a massive expansion has reached a major approval milestone.

The Fraser Valley Regional District has green-lighted the official community plan for the Hemlock Valley, which will guide the five-phased expansion into an all-season destination resort.

It is located on the west side of Harrison Lake, just northwest of Harrison Hot Springs.

Local hospitality firm Berezan Group acquired the resort in 2006 and began planning for the expansion in 2008. The master plan was approved by the provincial government in 2016.

The area will be transformed into “a unique cutting-edge, four-season mountain resort, catering to local, regional and destination guests in a dynamic fashion, offering an easily accessible refuge and escape from the city.” This is expected to be a $2.5 billion investment.

Wintertime activities entail downhill skiing and snowboarding, as well as cross-country skiing, ski touring, and tubing, while summertime activities include hiking, mountain biking, sightseeing, ziplining, golfing, and boating.

Sasquatch Mountain Resort, previously known as Hemlock Resort up until 2017, will exponentially grow its controlled recreation area from 855 acres to 15,746 acres.

“The approved controlled recreation area expansion and the agreement with the Province will see the resort expand out of the existing footprint in all directions into surrounding valleys and to the east down to Harrison Lake foreshore,” reads the master plan.

The skiable terrain would reach over 2,700 acres with 283 runs supported by 23 lifts — up from the current size of 363 acres with 35 runs and four lifts.

This would expand the carrying capacity of the ski facilities from the existing capacity of about 1,150 skiers/boarders per day to 13,400 skiers/boarders per day.

Upon full buildout, Sasquatch Mountain Resort would be in a comparable sphere to Whistler Blackcomb, which has over 8,000 acres of skiable terrain, 200 runs, and a capacity for 18,000 skiers/boarders per day.

Like Whistler Blackcomb, SMR will also have a significantly sized mixed-use village component within multiple and expanded base areas, and on various other sites approved for building development. This even includes a lakeshore village, linked to the rest of the resort by a lift near the lakefront.

The resort master plan at full buildout calls for 280,000 sq ft of restaurant, retail, and commercial service spaces and 19,969 beds, with 40% available to the public for nightly rental, 45% privately held and used, and 15% dedicated for employee housing. This is an increase from the existing 16,200 sq ft of commercial space and 1,072 beds, contained within 262 resort residential units in a single base lodge with limited amenities and facilities.

“As defined in the Master Plan, phased implementation of the expansion plan includes the infill of the existing base area and six new base area developments, designed to be in balance with the recreational capacities recognizing environmental and other limits to growth. Each phase is designed as a finished, well-balanced project to stand on its own and not dependent upon subsequent phases,” reads the master plan.

“Proposed built space features to meet the needs and expectations of the resort’s visitors include restaurants, bars, commercial and retail outlets, rental and repair shops, guest services, ski school, patrol and first aid, day care, lockers, resort administration and employee facilities, and future additional visitor-oriented built space broadened to provide for guests staying for extended visits include a greater variety of restaurants, retail outlets, convention, seminar and retreat facilities, theatre, spas, and recreation facilities.”

Each development phase will require various further approvals and must meet conditions from several government entities. The full buildout of the resort is anticipated to take decades.

New and improved road connections will be developed by the resort and the provincial government.

Berezan Group is working with the Sts’ailes First Nation on partnerships and economic opportunities for its members. Both the developer and the First Nation are working towards a joint venture agreement for the development in the Hemlock North neighbourhood of the master plan.

The area’s earliest ski recreation history dates back to the 1950s, when loggers in the area created the first rudimentary ski tours. Public skiing was established in 1969, when the facilities were opened as Hemlock Valley Recreation — initially consisting of a single rope-tow lift and an old school bus equipped with a wood-burning stove that served as the ski lodge.

Last year, another entity submitted an application to the provincial government’s Mountain Resorts Branch to build Bridal Veil Mountain Resort — a major all-season resort on 11,500 acres of mountain terrain immediately southwest of Chilliwack in the Fraser Valley. The resort would be able to handle about 11,000 skiers/snowboarders at a time.

Bridal Veil Mountain Resort would have a significant residential, accommodations, and commercial hub at its Valley Base Village, near the Trans-Canada Highway. Two arterial gondola lines would link the Valley Base Village to two alpine village areas and year-round recreational activities. The specific details of the project are still being planned, given that the proposal is in an early stage.

Just northeast of Squamish, Aquilini Investment Group and Northland Properties Corporation have been planning the Garibaldi at Squamish all-season resort for years. The Whistler Blackcomb-sized resort would include 1,635 acres of skiable terrain on 131 trails and 21 lifts capable of hosting 15,250 skiers/snowboarders.

In addition to winter and summer recreational activities, Garibaldi at Squamish would see 22,000 beds, including 1,300 hotel rooms, 2,200 condominium homes, 840 townhomes, and about 1,200 single-family homes. Several village clusters are planned, including a 62-acre, pedestrian-oriented main village at an elevation of 1,100 metres — the same elevation as the top of the Grouse Mountain Skyride — with hotels and 250,000 sq ft of retail, restaurants, and amenities.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  BIV

The Best 10 Cities to Live in British Columbia

 British Columbia is a beautiful province that is located between the Pacific Ocean and the Rocky Mountains. It is Canada’s westernmost province and has the third highest population after Ontario and Quebec.

The geographical features of B.C. are very diverse, and include sandy beaches, majestic mountain ranges, lush forests, inland deserts, and grassy plains. All of these features combine to make this province one of the most popular destinations to visit in Canada, and the high standard of living, as well as the exceptionally low unemployment rate, make this province a much sought after place to settle down and establish roots.

The list below outlines the best 10 cities to live in this magnificent province.

Vancouver

Population: 2,606,351

Top 3 Neighbourhoods: Central, The West End, Kitsilano

Perhaps the most well known city in British Columbia, Vancouver is the largest in population and is consistently named as one of the best cities in the world in terms of liveability and quality of life.

Not only does Vancouver boast some of the most amazing views of nature, with the Rocky Mountains and the harbourfront that are able to be seen from almost everywhere in the city, it also is known for having a mild climate all year round, with little to no snow in the winter.

However, if you’re someone that loves winter and the snow, there is no need to worry. There are several world class ski resorts that are only 2 to 4 hours away from the heart of downtown, so you can still participate in winter activities, even in the summer!

Kelowna

Population: 131,581

Top 3 Neighbourhoods: Black Mountain, Shannon Lake, North Glenmore

This gorgeous city is located in the Okanagan Valley, which is well-known for having some of the best vineyards in the country that account for over 90% of British Columbia’s wine production, as well being home to the stunning Okanagan Lake.

With the winters being mild in Kelowna, the lake never freezes over, meaning that you will often find people out and about on the lake all year round. Beyond the recreational activities that are in abundance in this city, there is also great healthcare, education, and entertainment available to the residents that live here.

Victoria

Population: 92,141

Top 3 Neighbourhoods: Oak Bay and the Uplands, James Bay, Fairfield and Gonzales

Victoria is the capital of B.C. and is located on the very tip of Vancouver Island. This charming city is the oldest city in western Canada, meaning that it has a ton of historical sites, such as Canada’s oldest Chinatown, and a deep rooted sense of culture and heritage.

Victoria’s number one industry is the technology industry, and with over 900 tech companies situated in the city, it has even been nicknamed “Tectoria”.

Victoria attracts all types of people and has a wide age demographic and a ton of job opportunities, in addition to its warm climate and beautiful sights. So whether you’re looking to retire, or to start a family here, there are amazing opportunities for everyone that decides to live in Victoria.

Surrey

Population: 518,467

Top 3 Neighbourhoods: Guildwood, Fleetwood Tynehead, West Newton

Surrey is the perfect place to live if you have a growing family, as there are so many things to do in the area, as well as being only 23 kilometers from downtown Vancouver.

As it stands, Surrey is the second most populated city in British Columbia, and is constantly growing. Because of this, new developments are always popping up, so there are many places to move to in this city. Housing in Surrey is much more affordable than in Vancouver, but is close enough that many people are opting to move to Surrey and commute to work instead.

Along with being in a prime location, Surrey is also home to beautiful forests, as well as 600 parks and 277 trails to explore. Living in Surrey means there will always be something for you and your family to do, whether it’s going on a family hike or picnic or attending one of their many festivals throughout the year.

Nanaimo

Population: 162,727

Top 3 Neighbourhoods: Lower Lantzville, Central Nanaimo, Uplands

Nanaimo is located on Vancouver Island and their official nickname is “The Harbour City”, coined by Prince Charles and Princess Diana during a visit to the city in 1986.

With a great community of people, tons of outdoor activities to do, and affordable housing, it’s no wonder why so many people are choosing to relocate to Nanaimo every year!

Related Post: The 10 Best Small Towns To Live In BC

Whistler

Population: 11,854

Top 3 Neighbourhoods: Emerald, Whistler North, Whistler South

Whistler is most well known for its famous ski resorts that attract people from all over the world. Despite being known as a tourist town, there are plenty of opportunities to settle down and call this small town home.

Not only is Whistler a place with an abundance of outdoor activities, it is also a place where you will find yourself deeply connected with nature. And even though you’ll be located amongst the mountains, away from the city life, Vancouver is only 2 hours away, so you can still visit anytime to get your fix of the big city action.

Burnaby

Population: 232,755

Top 3 Neighbourhoods: Government Road, Vancouver Heights, Willingdon Heights

Burnaby is British Columbia’s third most populated city, and is only 15 minutes away from downtown Vancouver by SkyTrain.

This city is absolutely beautiful and has a ton of trails, parks, freshwater lakes, and mountains, providing lots of outdoor activity options for those who love to be in nature.

For people who are looking for an education, Simon Fraser University is located in Burnaby itself, while UBC is less than 40 minutes away by SkyTrain.

Richmond

Population: 224,425

Top 3 Neighbourhoods: Central West, McLennan, Hamilton

Richmond is a great city to live in with a richly diverse population and has an abundance of job and education opportunities. It is centrally located and is not far from

Vancouver and Burnaby, as well as being home to the Vancouver International Airport.

On top of being located on a beautiful waterfront, it also has a large number of trails and parks, which makes it easy for residents to go out and enjoy nature.

Ashcroft

Population: 1,558

Top 3 Neighbourhoods: North Ashcroft, Downtown Ashcroft, Ashcroft Mesa

Despite being located along the Thompson River, Ashcroft’s climate is one of the driest in Canada. The summers are long and hot, and the winters are short and never get unbearably cold. In fact, residents will rarely have to bring out their shovel as it hardly ever snows in Ashcroft. This small town has a very laid back mentality and is a great place to raise a family or to retire in.

Coquitlam

Population: 139,284

Top 3 Neighbourhoods: Burke Mountain, Westwood Plateau, North Coquitlam

Located in the heart of Metro Vancouver, Coquitlam is a modestly populated municipality that is home to theme parks, shopping centres, great restaurants, and several parks and trails. In addition to lots of recreational activities, there are some fantastic schools in this city, with many schools offering French immersion. Coquitlam is a unique place that offers an endless amount of things to do, in rain or shine, winter or summer.

No matter which neighbourhood you choose to relocate to, you’ll be sure to be greeted with gorgeous scenery, access to the ocean and the mountains, richly diverse culture and history, and friendly citizens. With all of these factors, plus the high quality of living and ample job opportunities, it’s no wonder British Columbia is consistently rated among the best places in the world to live!

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  Vancouver Sun

Cost-Effective Exterior Renovations that Could Help Sell a Home

 

Investing in the exterior of your home is important. Not only can exterior home renovations like adding a new roof, windows, or doors add immediate benefits and curb appeal, they have the potential to increase the value of your home and give you a greater return on investment (ROI) when you decide to sell.

A 2021 Canadian Real Estate Renovation Trends report from RE/MAX, which used data collected by Leger marketing firm, said more than half of Canadians renovated their home during the pandemic for personal or “non-ROI” purposes. According to the report, 29% chose to renovate for non-essential “lifestyle” reasons, such as recreation-inspired projects, while 16% of Canadians renovated to increase the market value of their home to sell within in the next one to three years.

Similar to interior home renovations, not all exterior renovations are created equal, with some costing  much more up front, while others are relatively more cost-effective. If budget is a concern, read on to learn about some of the most cost-effective exterior home renovations that could help increase your ROI when it comes time to sell.

Why is curb appeal important?

The way your home looks from the outside—or its curb appeal—gives potential home buyers their first impression of the property even before they step inside. This is why exterior renovations that help boost curb appeal are important, as the aesthetic look of a home’s exterior can give the buyer a sense of what they can expect to find once they walk through the front door. In other words, if your home presents itself well, the yard is nicely kept, the paint is vibrant, the siding is aging well, and the roof is in good shape, prospective buyers could be more inclined to look inside if they like what they see on the outside.

What are the current trends in exterior renovations?

If you’ve been thinking about completing an exterior home renovation project this year, My Design Home Studio suggests while “farmhouse vibes are here to stay,” five other exterior design trends will gain popularity in 2022, including “a shift toward natural textures, a stronger connection to the outdoors, and a minimalist approach to architecture.” 

These trends are:

Natural textures: Blonde woods, hand-sawn beams, and aged brick are popular, but you can recreate these looks at a lower cost with wood-like siding or stone-like accents.

Dark exteriors: Pairing lighter siding and brick with moodier blacks and charcoals is becoming a trend, so if you’re looking to sell soon it might be worth the investment now.

Black accents: External features—like door handles, door frames, locks, shutters, etc.—are being swapped out for matte black instead of classic brass or silver. It’s a more modern look without requiring a total overhaul.

All-season outdoor entertaining: Adding a patio or deck to your yard can help increase curb appeal, especially when equipped for year-round usage. Covered areas for places with a lot of snow, or lounge areas with an outdoor fireplace (depending on your municipal bylaws) for places that remain relatively dry during the winter, are great additions to help extend patio season.

Natural light: Large panoramic windows that will flood your home with natural light are definitely a bigger investment than say, a door handle, but they’re a hot commodity as buyers are looking for homes with more natural light.

Top exterior renovations to help your ROI

While trying the latest renovation trends is a great way to ensure your home fits the modern look, there are tried and trusted exterior renovations that are not only cost-effective, but also known to help increase a home’s ROI.

The best cost-effective exterior renovations would be functional over the cosmetic. Taking a good look at what’s necessary to fix will be the most important when it comes to selling your home in the future. Common items may be drainage, grading, deteriorated items or heating/cooling efficiency problems like making sure windows and chimneys are sealed properly.

However, once the functional exterior renovations are complete, cost-effective and cosmetic upgrades to improve your home would be painting and tidying up landscaping. Plus, both of those can be done yourself inexpensively.

Other things to look at would be your roof, garage door, front door (steel and fibreglass are becoming popular materials), and siding. The average cost to install an asphalt roof in Canada is around $4,750 (depending on the scale of the project), while replacing a double-car garage door can cost between $1,300 and $3,500. If you’re trying to stay on budget, you can also revamp your home’s exterior by swapping out old furnishings for newer pieces and adding potted plants and annual flowers for a pop of colour.

The best way to assess what your home needs is by enlisting the help of a REALTOR® who will be able to give you insights into what buyers are currently looking for in your neighbourhood and what renovations may help sell your home quicker—and for a better price.

Your REALTOR® can also provide you with contacts for roofers, painters, contractors, etc. to help you find the best person for the job.

Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!

Source:  CREA