A renovated home could help sell your house in this tricky market
In a softening housing market, a renovated home could be the key to selling your property. “In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
Some home renovations are worth more than others. A renovated kitchen hs the potential to add 20 per cent to the value of your home.
“In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
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In a softening housing market, a renovated home could be the key to selling your property. “In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
Some home renovations are worth more than others. A renovated kitchen hs the potential to add 20 per cent to the value of your home.
“In some niche markets that continue to see multiple offers, we are seeing properties that are renovated, the turnkey properties, especially with renovated kitchens and bathrooms continue to garner a lot of buyer interest”.
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Recent data indicates a changing housing market. In March, the Canadian Real Estate Association (CREA) reported a two per cent drop in the average national sale price from $816,720 in February to $796,000 in March. Year-over-year, the average price was still up 11 per cent. Sales in March also fell, CREA said.
The Toronto Regional Real Estate Board said Wednesday that Toronto home prices declined three per cent from March to April. Further, sales slowed 41 per cent year-over-year from last April and were down 27 per cent from March as rising interest rates started to crimp the housing market.
The survey of 340 real estate professionals found that a kitchen renovation is the “most worthwhile” improvement and, on average, can increase a home’s value by 20 per cent.
Kitchen renovations typically yield the greatest return on investment, as this space is most frequently used, and is perceived as the gathering place and the heart of the home. “When a potential buyer views a home for the first time, the one thing that will stand out — for better or worse — is what the kitchen looked and felt like.”
Bathrooms, another high-traffic part of every home, placed second on the list of most-valuable home improvements with survey respondents estimating that a new bathroom can add to the value by an average of 16 per cent.
Finishing a basement or adding a basement apartment placed third and fourth in the survey, respectively; both with the potential to increase home values by 15 per cent, according to respondents.
It was the first time in the survey’s history that basement apartments have ranked so high. “It was one of the biggest movers in terms of returns,” he said. That might be because renting a basement unit can help take the edge off of mortgage costs. The units also “appeal to newcomers looking for multigenerational homes”. “Having an additional fully livable unit allows for more privacy for those families.”
If you don’t have or don’t want to spend thousands on a new kitchen or bathroom, adding a fresh coat of paint to the walls is a good alternative and could increase the value of your home by 12 per cent, the survey said.
What about the outside of your house?
Window replacements ranked as a worthwhile renovation with the potential to increase a home’s value by 13 per cent followed by outdoor landscaping with an estimated return on investment of, on average, 10 per cent, the survey said.
Pools, the report noted, had the smallest potential return on investment.
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The Toronto Regional Real Estate Board said Wednesday that Toronto home prices declined three per cent from March to April. Further, sales slowed 41 per cent year-over-year from last April and were down 27 per cent from March as rising interest rates started to crimp the housing market.
The survey of 340 real estate professionals found that a kitchen renovation is the “most worthwhile” improvement and, on average, can increase a home’s value by 20 per cent.
Kitchen renovations typically yield the greatest return on investment, as this space is most frequently used, and is perceived as the gathering place and the heart of the home. “When a potential buyer views a home for the first time, the one thing that will stand out — for better or worse — is what the kitchen looked and felt like.”
Bathrooms, another high-traffic part of every home, placed second on the list of most-valuable home improvements with survey respondents estimating that a new bathroom can add to the value by an average of 16 per cent.
Finishing a basement or adding a basement apartment placed third and fourth in the survey, respectively; both with the potential to increase home values by 15 per cent, according to respondents.
It was the first time in the survey’s history that basement apartments have ranked so high. “It was one of the biggest movers in terms of returns,” he said. That might be because renting a basement unit can help take the edge off of mortgage costs. The units also “appeal to newcomers looking for multigenerational homes”. “Having an additional fully livable unit allows for more privacy for those families.”
If you don’t have or don’t want to spend thousands on a new kitchen or bathroom, adding a fresh coat of paint to the walls is a good alternative and could increase the value of your home by 12 per cent, the survey said.
What about the outside of your house?
Window replacements ranked as a worthwhile renovation with the potential to increase a home’s value by 13 per cent followed by outdoor landscaping with an estimated return on investment of, on average, 10 per cent, the survey said.
Pools, the report noted, had the smallest potential return on investment.
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Reverse mortgages take off in Canada as more seniors look to 'age in place'
Regulators are keeping an eye on growth of the loans, and say there are risks
More Canadian seniors have been tapping into their home equity for cash to fund their retirements over the course of the pandemic, giving an earnings boost to the lenders that offer reverse mortgages and other similar loans.
One of those, Equitable Bank Inc., reported a 262 per cent year-over-year surge in its reverse mortgage product in first-quarter 2022 earnings announced this week. Altogether, Equitable originated $304-million worth of the loans, up 23 per cent over the final quarter of 2021.
Reverse mortgages typically function like home equity lines of credit and allow Canadians to put up the equity in their home in exchange for a lump sum of cash or a consistent flow of payments.
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Regulators are keeping an eye on growth of the loans, and say there are risks
More Canadian seniors have been tapping into their home equity for cash to fund their retirements over the course of the pandemic, giving an earnings boost to the lenders that offer reverse mortgages and other similar loans.
One of those, Equitable Bank Inc., reported a 262 per cent year-over-year surge in its reverse mortgage product in first-quarter 2022 earnings announced this week. Altogether, Equitable originated $304-million worth of the loans, up 23 per cent over the final quarter of 2021.
Reverse mortgages typically function like home equity lines of credit and allow Canadians to put up the equity in their home in exchange for a lump sum of cash or a consistent flow of payments.
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Assignment Detached Home for Sale in Barrie
Top reason you will love this property!
- 4 Bed 🛏 4 Bath 🚿
- Asking price: $1,369,900
- 2,502 Sq.ft
- Lot Size: 38 x 99
- Upgrades worth 12K
- Deposit required 150K
- Closing in July 2023
- 5 mins to Hwy 400
- 3 mins to Go station
- 5 mins to Georgina College
- Mins to all shops, restaurants & parks
- Close to all amenities
Call Hojjatollah Izady at 647-772-9502 for more info.
hoizady@yahoo.com
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Top reason you will love this property!
- 4 Bed 🛏 4 Bath 🚿
- Asking price: $1,369,900
- 2,502 Sq.ft
- Lot Size: 38 x 99
- Upgrades worth 12K
- Deposit required 150K
- Closing in July 2023
- 5 mins to Hwy 400
- 3 mins to Go station
- 5 mins to Georgina College
- Mins to all shops, restaurants & parks
- Close to all amenities
Call Hojjatollah Izady at 647-772-9502 for more info.
hoizady@yahoo.com
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As Home Prices Fall, More Buyers Are Backing Out of Deals
In early February, a three-bedroom house in Clarington, Ontario sold for $1,035,000. It was on the market for just four days.
Cut to three months later, and that same house, came back on the market where it sat for 10 days before selling for just $850,000.
It’s no secret that home prices in the GTA are falling, with the outer suburbs fielding the brunt of this decline. Although this news is likely to set off alarm bells for would-be sellers hoping to cash out on their home in a red hot market, they’re not the only ones coming face-to-face with a bleaker financial outlook.
GTA real estate professionals across the board are reporting noticeably higher rates of buyers backing out of deals months after having their offers accepted and deposits submitted. Sellers, left with no buyer, are forced to re-list in a considerably cooler market where their home will inevitably fetch a lower price.
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In early February, a three-bedroom house in Clarington, Ontario sold for $1,035,000. It was on the market for just four days.
Cut to three months later, and that same house, came back on the market where it sat for 10 days before selling for just $850,000.
It’s no secret that home prices in the GTA are falling, with the outer suburbs fielding the brunt of this decline. Although this news is likely to set off alarm bells for would-be sellers hoping to cash out on their home in a red hot market, they’re not the only ones coming face-to-face with a bleaker financial outlook.
GTA real estate professionals across the board are reporting noticeably higher rates of buyers backing out of deals months after having their offers accepted and deposits submitted. Sellers, left with no buyer, are forced to re-list in a considerably cooler market where their home will inevitably fetch a lower price.
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Interest Rate Hikes Could Lower Canadian Home Prices By 10%
In a missive to clients on Monday, Stephen Brown, Senior Canada Economist at Capital Economics, wrote that home prices are usually the first domino to fall when interest rates rise and he expects things will be no different this time. Moreover, because home sales have begun falling, especially in Toronto, Montreal and Vancouver, Brown wonders not whether or not home prices will decrease but by how much.
Fixed mortgages rates have also been increasing for the last few months as a prolusion to rate hikes, and lately variable rates, which comprise over 50% of new mortgage originations, are rising in tandem with the prime rate.
Brown anticipates that home sales will halve from their first quarter peak, which would be around a 25% fewer than the average in 2019, because prices are so elevated that they have become radically divorced from market fundamentals. In the absence of red-hot sales, there’s nowhere for prices to go but down, Brown wrote.
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In a missive to clients on Monday, Stephen Brown, Senior Canada Economist at Capital Economics, wrote that home prices are usually the first domino to fall when interest rates rise and he expects things will be no different this time. Moreover, because home sales have begun falling, especially in Toronto, Montreal and Vancouver, Brown wonders not whether or not home prices will decrease but by how much.
Fixed mortgages rates have also been increasing for the last few months as a prolusion to rate hikes, and lately variable rates, which comprise over 50% of new mortgage originations, are rising in tandem with the prime rate.
Brown anticipates that home sales will halve from their first quarter peak, which would be around a 25% fewer than the average in 2019, because prices are so elevated that they have become radically divorced from market fundamentals. In the absence of red-hot sales, there’s nowhere for prices to go but down, Brown wrote.
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Getting a Fixed-Rate Mortgage? It’ll Cost Nearly $800 More a Month
Government of Canada bond yields are climbing ever higher, and they’re taking fixed mortgage rates along for the ride, as the nation’s big banks just passed another price hike along to borrowers.
Uninsured lowest five-year fixed rates from the Big Six hit the threshold of 4.39% this week (and 4.24% for preferred rates), as GoC five-year bond yields — which set the fixed cost of borrowing — spiked to a new decade high of 2.88% on May 6.
Bond yields have been steadily ratcheting higher since the second half of 2021, in anticipation of the Bank of Canada’s (BoC) fresh hiking cycle; year-to-date, they’ve increased 150.93 basis points (bps), up 107.8 bps in the last three months alone.
Government of Canada bond yields are climbing ever higher, and they’re taking fixed mortgage rates along for the ride, as the nation’s big banks just passed another price hike along to borrowers.
Uninsured lowest five-year fixed rates from the Big Six hit the threshold of 4.39% this week (and 4.24% for preferred rates), as GoC five-year bond yields — which set the fixed cost of borrowing — spiked to a new decade high of 2.88% on May 6.
Bond yields have been steadily ratcheting higher since the second half of 2021, in anticipation of the Bank of Canada’s (BoC) fresh hiking cycle; year-to-date, they’ve increased 150.93 basis points (bps), up 107.8 bps in the last three months alone.
Rate Hikes Hit Canada Housing With First Price Drop in Two Years
Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets.
Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.
The shift is coming as the Bank of Canada embarks on an aggressive campaign of rate increases to fight inflation running at a three-decade high. Markets are betting that the policy interest rate, which began the year at 0.25%, will have to rise to 3% over the next year.
The sharp jump in Canadian home prices since the pandemic -- they’re up 24% over the past 12 months -- was partly driven by emergency-low rates that helped the economy through the Covid-19 crisis. But now rate increases have left the nation’s housing market looking increasingly vulnerable.
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Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets.
Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the Canadian Real Estate Association. The number of sales, meanwhile, plunged 12.6%.
The shift is coming as the Bank of Canada embarks on an aggressive campaign of rate increases to fight inflation running at a three-decade high. Markets are betting that the policy interest rate, which began the year at 0.25%, will have to rise to 3% over the next year.
The sharp jump in Canadian home prices since the pandemic -- they’re up 24% over the past 12 months -- was partly driven by emergency-low rates that helped the economy through the Covid-19 crisis. But now rate increases have left the nation’s housing market looking increasingly vulnerable.
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Bidding war no more: How to make an offer in Canada’s cooling housing market
The apparent cooling in Canada’s housing market is leaving many buyers and sellers alike confused about how to price and bid on homes in the normally fervent spring market, real estate brokers say.
Those who spoke to Global News said the new market is resulting in negotiation power swinging back into the hands of buyers in many cases.
The difference between the mid-winter market — before the Bank of Canada started hiking interest rates — and today is “day and night.”
Back in January and February, properties across Ontario, be they cottages or in the urban core, were all seeing multiple offers and going well above asking.
“Every single house that went on the market was expecting and was getting multiple offers, really high demand”.
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The apparent cooling in Canada’s housing market is leaving many buyers and sellers alike confused about how to price and bid on homes in the normally fervent spring market, real estate brokers say.
Those who spoke to Global News said the new market is resulting in negotiation power swinging back into the hands of buyers in many cases.
The difference between the mid-winter market — before the Bank of Canada started hiking interest rates — and today is “day and night.”
Back in January and February, properties across Ontario, be they cottages or in the urban core, were all seeing multiple offers and going well above asking.
“Every single house that went on the market was expecting and was getting multiple offers, really high demand”.
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