BCREA 2022 Second Quarter Housing Forecast MLS® residential sales in the province are forecast to decline 22% from a record high 2021 to 97,240 units this year. In 2023, MLS® residential sales are forecast to fall an additional 12.4% to 85,150 units.   “After a strong first quarter, BC markets are now adjusting to a much different interest rate environment,” said BCREA Chief Economist Brendon Ogmundson. “With mortgage rates surpassing 4 per cent for the first time in over a decade, the housing market over the next two years may have very little resemblance to the housing market of the past year.”  On the supply side, we have begun to see active listings move from record lows and re-sale inventories trend back toward balance. However, because inventories reached such low levels over the past year, the journey back to balance may take up to a year or more in some areas.   THOMPSON-OKANAGAN Housing market activity in the Thompson-Okanagan region has moderated from the elevated highs of spring 2021 and home sales are currently trending somewhat above longrun average levels. We expect further moderation in the remainder of 2022 and into 2023. A major theme observed during the pandemic has been the relocation of buyers into less densely populated areas of the province. That trend is evident in how demand has evolved over the past year in the Interior. We are forecasting that MLS® home sales will decline 19% to 11,500 in 2022 and by another 14.8% to 8,800 in 2023. This brings sales back to more historically normal levels for the region. While sales are moderating, demand remains strong in the region due to migration. According to Statistics Canada, from 2016 to 2021 Kelowna was the fastest-growing Census Metropolitan Area (CMA) in Canada, growing by 14% over the period. The broader Thompson Okanagan region is currently growing at about 1.6% per year, hitting 620,000 in 2021 and adding roughly 10,000 new residents annually. As a result of this demand, inventory of homes for sale in the Interior continues to sit near all-time lows in both the Okanagan and Kamloops. Despite these stark figures, there are some signs of easing. Although the sales-to active listings ratio in Kamloops and the Okanagan is also at the lowest level since early 2021, it is still very firmly in seller’s territory. Consequently, even with sales moderating back ton long-run trends, market conditions in the region are historically tight. As a result, MLS® average prices are forecast to be up for 2022 and to a lesser extent in 2023. With strong economic growth and high inflation, the central bank is raising rates quickly, which is dampening demand. Nevertheless, prices continue to rise in the Thompson Okanagan. Given current trends, we are forecasting the MLS® average price will rise 21% in the Interior, before slowing to a growth rate of 1.6% apiece in 2023. Source: BCREA

When looking for a place to call home, it’s easy to get sidetracked by thinking with your heart rather than your head. Although it takes less than seven seconds to make a first impression, a quick decision could lead to an unavoidable case of buyer’s remorse. In order to avoid this, we have listed a checklist for the top ten house hunting tips you need to know before you attend a viewing.

Location

There are many things that can be changed, upgraded, or improved after you have purchased a home, but the location isn’t one of them. You need to think about the proximity to work, schools, and other attractions you frequently visit and also research any new developments or upcoming changes to the area in the future.

Smells

While air fresheners and open windows can clear out certain scents, it’s important to pay attention in order to sniff out other potential issues. For example, if you notice a damp smell, it could mean the home has poor ventilation or issues with mold.

Floors

Noticing a slanted floor is one of the major hints that there could be a large structural issue with the home. If you do notice something, you can ask your Agent to inquire with the owners or make note of it for the home inspection if you decide to go that far in the purchase process.

Lighting

Natural lighting is something that is often overlooked in your house hunt, especially if you are viewing a home at night, or in the middle of winter. Think about how important natural lighting is to you and plan your viewing times around when the lighting will be optimal.

Shape & Size of Rooms

It is important to take a good look at the layout to make sure not only you but also your furniture can fit comfortably in the space.

Parking

Is there enough space for everyone in your household to park? Additionally, if there is parking available, will your vehicle fit?

Laundry

If there is laundry in the home, you need to make sure it is in an accessible location. If there is no laundry, is it in a convenient location you can easily get to with or without a car?

Storage Space

Depending on how creative you can get with your storage, you will want to make sure that there is enough room to store your belongings without things becoming cluttered or unliveable.

It looks perfect, but are you missing something?

Professional staging can sometimes fool buyers into thinking a property is perfect while diverting their eyes away from potential issues. Don’t let the professional décor and scent of fresh baked cookies take your attention away from the things that matter.

Assess the kitchens and bathrooms

The kitchen and bathroom are two of the most costly rooms in a home. Make sure you pay special attention to these rooms to avoid getting stuck with unwanted repairs or updates after purchasing the home.

While a home inspection will help advise you of any potential issues, it is still a good idea to pay attention to these things in the initial stages of your home search. This will also help ensure you don’t waste money on unnecessary home inspections. Remember to keep a list of everything for each house you view so you don’t forget days, or weeks later!

 

Source: RE/MAX Blog

Whether you’re planning to stay there or sell, the topic of money arises quickly upon deciding to upgrade your home. It’s well known that home renovations can be costly. 

Here are 8 of the best ways to finance major home renovations:

1. Home Equity Line of Credit

When buying a home, most people apply for a mortgage. Your home equity is the portion of your home that you have already paid off.

As long as interest rates remain low, tapping into your home equity to take out a Home Equity Line of Credit (HELOC) can be a great way to fund a renovation. With a HELOC, you can use as little or as much as you need, paying back only what you use, at a rate that is lower than those of credit cards or personal loans.

2. Refinance Your Mortgage

Refinancing your mortgage means adding to the amount of money you originally borrowed to purchase your home. This new mortgage amount is rolled into the current balance on your mortgage.

When you refinance your mortgage, you get a set amount of money at a set interest rate; therefore, it isn’t possible to spend more than you have, and the payments will remain consistent and affordable.

3. Unsecured Line of Credit

Anyone can apply for an unsecured personal loan or personal line of credit through a financial institution.

A line of credit starts out with a set amount of money you can charge against it, and as you pay it back, you can repay the gap funds. However, the downside of this option is the high interest rates compared to a mortgage because there is nothing securing it. 

4. Take Out a Second Mortgage

Some people choose to take out a second mortgage to pay for home renovations. This option will provide you with the instant cash you need to complete your project, at a lower interest rate than a personal line of credit or credit card, however it can leave you with double the mortgage payments.

5. Credit Card

Not the best option available, due to the high interest rates involved, but using a credit card to finance major home renovations is always an option.

Typically, credit cards have an interest rate of 19.99% interest rate or higher – meaning that you will be paying a hefty fee on any residual charges you haven’t paid off come month end.

6. Loan from Family or Friends

While not available to everyone, another viable option is borrowing from family or friends. It’s common knowledge that borrowing money can complicate a relationship, but this option comes with the ability to specify repayment terms with the person you are borrowing from, and eliminates the need to use a bank or other financial institution.

7. Save and Pay as You Go

If you aren’t in a time crunch to get the renovations done, you can always save and pay as you go. This will inevitably slow down the remodel process, however, it is one of the only ways to ensure that you don’t get overburdened by interest fees on your renovation spend.

8. Use your Savings

The final way to pay for home remodels without borrowing funds from another entity is to simply use your savings. This is a good option for those who want to get the renovations done as quickly as possible, and don’t want to be stuck owing money once they are completed.

Take Your Time Before Committing

Now that we’ve reviewed 8 of the best ways to finance major home renovations, it is important to consider other factors such as purpose, time and your personal preference for financing. As you review your options, remember that there is no right choice, but there will be a best-fit option for your needs. A financial consultant can be a great resource in helping you choose your best route for financing.

Sources:

• RE/MAX Blog
• Canadian Mortgages Inc
• Money Sense

When you think about selling your property, do you dwell on the possible work and stress involved? You’re not alone. Many homeowners share the same concerns. 

But it doesn’t have to be that way.

In fact, there are plenty of ways to add some fun, anticipation, and even a sense of adventure to the selling process. Here are just a few ideas:

1. Plan fun things to do when your home is being shown. That can include walks, sports activities, or trying something you and your family have never done before. 
2. Declutter for your own benefit. Instead of thinking about decluttering as a chore required for the sale, focus instead on how much more comfortable your home will be after decluttering. Studies consistently show that less clutter reduces stress and increases a sense of well-being.
3. Get everyone in your home anticipating the move in a positive way. Put pictures of your next home, including neighbourhood shots, on the fridge door. Sit together on the computer and explore your new neighbourhood’s features and amenities.
4. Celebrate milestones in the selling process. For example, when you’re finished preparing your property for sale, go out to celebrate. Make a checklist of milestones and how you’ll celebrate each one. 
5. Get the help you need. A big part of the stress of selling is the anticipated work involved. Remember, you don’t have to do it all yourself. Much of what needs to be done can be handled by contractors and other professionals.  

There are many other ways to make selling your home a positive and turbulent-free experience. Give me a call if you’d like more ideas and and suggestions.

When you’re shopping for a new home, you probably want the property to be as “move in ready” as possible. That way, you can… well… just move in!

However, there are a lot of fantastic properties on the market that need some work. For example, you might see a home that has everything you need, but the kitchen is long overdue for a renovation. Or, you might view a property that requires a lot of repairs and painting — tasks that, at first glance, seem overwhelming.

You don’t want to just pass on a property that might be a great buy. On the other hand, you don’t want to purchase a home, only to end up with more renovations, repairs and expenses than you anticipated.

What’s the solution? Here’s an idea.

When you view a home that needs work, make a note of exactly what needs to be done. Stick to the important “must have” improvements and leave “nice to have” improvements for a later time. Chances are, you’ll identify just one or two projects — such as “paint all the walls” or “replace the countertops in the kitchen”.

Once you have that list, you’ll be in a better position to determine how long the work will likely take and the approximate cost. This will give you some needed perspective on whether or not to buy the home.

If a home you’re considering needs $15,000 in work that can probably be completed within two months, that might make the property worth buying. In fact, it probably would!

So, when you see an otherwise ideal home that needs some work, don’t let your imagination make that work into more than it is. Take notes and get estimates.