Lots of things swirling in our industry at the moment.  Here is a summary of the latest happenings:

INTEREST RATES ON THE RISE

The Bank of Canada recently increased its overnight policy rate by 25 basis points to 0.50 per cent, and on April 13, you can bet there is another hike coming.  Want to know how to prepare for rising rates?   Check out this short video that provides a great explanation:

https://youtu.be/uToRzqp0Ldk

 “COOLING OFF PERIOD”

The NDP is going to legislate what it calls a “cooling off” period for homebuyers under the Property Law Act so they can walk away from the contract for any reason.  It remains to be seen if this measure will actually address the heated market & help to bring prices down.

How will this impact YOU?

There is a recission period in the purchase of new Construction in BC.  It has been in place for many years; the intention was to protect Buyers in a situation where the other side is a more sophisticated party to the sale – a large Developer, with their own sales staff, their own contracts, and no physical property to show.  Clearly in this case there is more of a chance the Buyer is at a disadvantage.

In a typical residential real estate transaction, both sides are generally represented by real estate professionals, and there is more of a level playing field.  

Buyers –

The notion of a Homebuyer’s Protection Period is good.  Buyers DO need time for professional due diligence.   Prices are at an all time high; this is not an insignificant decision.

For Sellers –

At this point, with the limited information we have, we can presume there is going to be some uncertainty for you – until this recission period is over, you are not going to make any solid plans. 

For All –

There are many details missing at this point.  How long is the cooling-off period?  Will there be a penalty if you walk away & how much – and will this legislation change as the market shifts?  EG.  Would it be necessary in a market that ultimately favors Buyers, for example?.

Our BC Real Estate Association offered what we feel is a healthier solution.  A five-business-day delay in accepting bids following a listing. This would adjust the process of homebuying, be of benefit to both buyers and sellers, and create less uncertainty.

More importantly for the consumer, our industry’s proposal has a better chance of ensuring due diligence is actually performed by the Buyer so that they can be protected, rather than just having the ability to walk away.

And a note on the timing of this legislation.  We are in a time of increasing inflation.  We are seeing interest rates rising, and inventory increasing. That is beginning to temper demand. It is likely that by year end that this policy may be unnecessary.

THE FEDERAL BUDGET

The Federal Budget 2022 was housing-focused, with a significant amount of funding going towards quickly creating new, and diverse housing. 

The government plans to restrict foreign buyers and add a flipping tax on homes sold within 12 months of purchase.

First-time buyers will also get tax credit and access to a new, tax-free First Home Savings Account.

 Check out the budget online:  2022 Federal Budget

If you’re thinking about selling your house this spring, here are some things you’ll want to tackle before you list.

Spend your time on tasks that make it feel inviting, show it’s cared for, and boost your curb appeal.

To determine the full list of things you’ll want to tackle for your home, you need the opinion of a trusted expert. Partner with a real estate professional to help make sure your house shows well this season.

Four things to know about heat pumps

Heat pumps are an energy-efficient way of transferring heat in and out of a home. 

Here are four things you should know about heat pumps.

Heat pumps work like refrigerators

Refrigerators move heat energy from one place to another. A heat pump does this throughout a home, moving hot air out of the house in the summer and bringing warm air into the house in the winter. Air is heated and cooled through the evaporation and condensation cycles of a refrigerant. 

This unique design makes it both a heating system and an air conditioner.

Choose the heat pump that’s right for your home

There are several different styles of heat pumps. 

If you’re thinking about installing one, ask yourself:

• Should you use your home’s existing ducts or does it make more sense to use a ventless option? 
• What options are better for smaller homes or homes with open layouts? 
• Is your home located in a colder climate?

Costs and rebates

The cost of installing and maintaining heat pumps can vary significantly depending on several factors like the type of heat pump, the size of your home, and other design and installation considerations. Make sure you receive and compare multiple quotes. 

Rebates are available. CleanBC Better Homes has a rebate search tool on their website that displays all available rebates for heat pump installations and more. 

Environmental benefits inside and outside the home

Heat pumps usually offer airflow and dehumidification controls, and many offer enhanced filtration systems to clean the air inside your home from pollutants, dust, and allergens. 

If your home is connected to BC’s electrical grid (as most are), a heat pump can help reduce your carbon footprint by about the same amount as not driving your car for approximately nine months. They use anywhere from a half to a third as much energy as electric baseboards or gas furnaces.

For more information, read CleanBC Better Homes heat pump information and FAQ page.

If you’re following along with the news today, you’re probably hearing a lot about record-breaking home prices, rising consumer costs, supply chain constraints, and more. And if you’re thinking about purchasing a home this year, all of these inflationary concerns are likely making you wonder if you should wait to buy. Investopedia explains that during a period of high inflation, prices rise across the board. And while home prices aren’t immune from this increase, here’s why inflation shouldn’t stop you from buying a home in 2022.

Homeownership Offers Stability and Security
Home prices have been increasing for quite some time, and experts say they’re going to continue to climb throughout 2022. So, as a buyer, how can you protect yourself from rising costs for things like food, shelter, entertainment, and other goods and services? The answer lies in housing.

Buying a home allows you to lock in your monthly mortgage payment for the foreseeable future. That means as other prices rise, your monthly payment will be consistent thanks to your fixed-rate mortgage. This gives you the peace of mind that the bulk of your housing costs is shielded from inflation.

James Royal, Senior Wealth Management Reporter at Bankrate, says:

“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

If you rent, you don’t have that same benefit and you won’t be protected from rising housing costs. As an added incentive to buy, consider that today’s mortgage interest rates are lower than they have been in decades. While inflation decreases what your dollars can buy, low mortgage rates help counteract it by boosting your purchasing power so you can get more home for your money. They also help keep your monthly payments down. This is especially important during an inflationary period because you’ll want to protect yourself from the impact of inflation as much as possible.

Ali Wolf, Chief Economist at Zonda, explains:

“If you have cash and are expecting inflation, you want to think through where you can put your money so it does not lose value. Housing is commonly looked at as a good inflation hedge, especially with interest rates so low.”

Bottom Line
The best hedge against inflation is a fixed housing cost. That’s why you shouldn’t let it stop you from buying a home this year. Not sure where to start? Connect with a real estate professional so you have expert advice and help throughout every step of the homebuying process.

A Happy Tail:
Pets and the Homebuying Process

It's no secret that we love our furry friends - A total of 56% of Canadian households have at least one dog or cat. What may come as a surprise is how large a role they play in the homebuying process.

Canadians spend $6.6 billion a year on their pets. And increasingly, more urban couples are opting to become pet owners. and nearly half of pet owners say they would move for better accommodations and amenities for their pets.

If you're thinking of adding a furry friend, or if you already have, connect with your trusted real estate advisor to discuss how you can find a home that meets all your pet's needs.

Once you’ve found your dream home and applied for a mortgage, there are some key things to keep in mind before you close. It’s exciting to start thinking about moving in and decorating your new place, but before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
Here’s a list of things you shouldn’t do after applying for a mortgage. They’re all important to know – or simply just good reminders – for the process.

1. Don’t Deposit Cash into Your Bank Accounts Before Speaking with Your Bank or Lender.
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your mortgage broker.

2. Don’t Make Any Large Purchases Like a New Car or Furniture for Your Home.
New debt comes with new monthly obligations. New obligations create new qualifications. People with new debt have higher debt-to-income ratios. Since higher ratios make for riskier loans, qualified borrowers may end up no longer qualifying for their mortgage.

3. Don’t Co-Sign Other Loans for Anyone.
When you co-sign, you’re obligated. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.

4. Don’t Change Bank Accounts.
Remember, lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your mortgage broker.

5. Don’t Apply for New Credit.
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your credit score will be impacted. Lower credit scores can determine your interest rate and possibly even your eligibility for approval.

6. Don’t Close Any Credit Accounts.
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those determinants of your score.

Bottom Line
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. The best plan is to fully disclose and discuss your intentions with your mortgage broker before you do anything financial in nature.

It’s clear that owning a home makes financial sense. But lately, the emotional side of what drives homeownership is becoming increasingly important.

No matter the living space, the feeling of a home means different things to different people. Whether it’s a familiar scent or a favorite chair, the feel-good connections to our own homes can be more important to us than the financial ones.

Here are some of the reasons why.

1. Owning your home is an accomplishment worth celebrating

You’ve put in a lot of work to achieve the dream of homeownership, and whether it’s your first home or your fifth, congratulations are in order for this milestone. You’ve earned it.

2. There’s no place like home

Owning your own home offers not only safety and security but also a comfortable place where you can simply relax and unwind after a long day. Sometimes that’s just what we need to feel recharged and truly content.

3. You can find more space to meet your needs

Whether you want more room for your changing lifestyle (think: working from home, dedicated space for a hobby, or a personal gym) or you simply prefer to have a large backyard for entertaining, you can invest in a home that truly works for your evolving needs.

4. You have control over renovations, updates, and your style

Looking to try one of those decorative wall treatments you saw on Pinterest? Tired of paying an additional pet deposit for your apartment building? Maybe you want to create an entire in-home yoga studio. You can do all of these things in your own home.

Bottom Line

Whether you’re a first-time homebuyer or a repeat buyer who’s ready to start a new chapter in your life, now is a great time to reflect on the non-financial factors that turn a house into a happy home.

The game of chess can provide incredible lessons to apply to all aspects of life, including the home buying process. Chess requires you to plan and think about your strategy from the very beginning of the game.

The home buying process, like chess, requires strategy and planning. Here are a few things to keep in mind to ensure your plan is as strong as possible when you begin your home search.

Pre-Approval: the Best Opening Play To Make as a Homebuyer

It’s important to have a great opening play when you’re buying a home. And the best move you can make when you begin your home search is getting pre-approved by a lender. You’ve probably already heard this is an important step, but what exactly is pre-approval and what benefits does it provide you?

The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you.

And while determining how much you can afford at the start of your search is critical, the pre-approval letter also serves another important purpose.

This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.

In the game of chess, a strong opening move signals to your opponent that you’re a serious competitor. As a homebuyer, your pre-approval letter signals to the seller that you’re a serious, interested buyer.

Homebuying: It’s a Team Game, Not a Single-Player Experience

Every step you take to create your strategy as a buyer is important in today’s market. Why? Mortgage rates are still low, but increasing. Prices are going up. There’s a limited supply of homes for sale. These are just a few key variables in today’s market you need to be prepared for.

That means leaning on expert guidance as you plan every move is more important than ever. Have a team of professionals – like your trusted real estate agent and a mortgage broker – every step of the way to make sure you make the right moves.

Bottom Line

Getting a pre-approval letter isn’t just a good strategy, it can be game-changing. It allows you to get a full understanding of what you can afford, and it signals to sellers that you’re serious. Connect with a trusted real estate advisor today to ensure you’re playing chess and being strategic during the home buying process.

Real estate professionals are experts at navigating all aspects of the buying and selling process, including negotiating on your behalf. We can also explain today’s market and break down what it means for you.

Don’t go at it alone. Partner with an agent so you have advice and an expert to count on each step of the way.

When it comes to buying a home, there are a number of key milestones along the way.

The process includes everything from building your team and understanding your finances to going house hunting, making an offer, and more.

When you’re ready to start your journey, partner with a professional so you have trusted guidance at every milestone in the process.

NOTE that link references are from U.S. Sources; but still relevant !

Are you in the market to sell your home? Home staging is one of the top marketing tools used by Real Estate agents, and Barb Lunter of Bludog Staging and Redesign Ltd agrees that having your property professionally styled and staged will result in a faster sale and appeal to a larger market.

The media have raised the bar for how a home should appear to potential buyers. Real estate and renovation programs have educated the modern consumer and as a result a home should look as professional as the homes featured in the media. In the real estate market, when it comes time to sell your home there are two simple rules you should follow to ensure a timely sale: Price it well and make it look amazing.

Home staging prepares a property for sale by making it appealing to the highest number of potential buyers. A stager will create a strong visual impact within the home that will increase the marketability and liquidity of the property. This
doesn’t necessarily have to cost a lot.

Check out a VIDEO we shot on the power of home staging HERE !

Stagers will evaluate the inside and outside the home depending on your needs. Services include everything from simple de-cluttering to adding furniture within rooms to create an inviting and welcoming atmosphere. A professional stager has the ability to transform a relatively uninspiring home into an inviting, warm and comfortable space for prospective buyers to envision themselves.  Every Seller we work with receives a Home Stage Consultation for FREE.

The bottom line is that good staging is worth every penny. Whether it’s a small job or a large project, a good staging plan will be well worth it in the end.

The common notion that spring is a better time to sell than winter is being challenged by today’s hot seller’s market conditions. A recent Royal LePage survey found that 79% of real estate professionals say they would advise their clients to sell this winter, rather than wait until spring; significantly higher than the 64% who say they would have given that advice prior to the pandemic citing that current demand is outstripping supply in another year of unusual winter market activity.  

If you are considering listing your home this winter season, be sure to review our top ten tips for preparing your home for a winter sale!

1. Include both winter and summer photographs of your home in the listing so prospective buyers can better imagine themselves in the property all year round;
2. Clear a path to the front door and pathways around the home. Make sure the walkway is free of snow and ice; 
3. Turn up the heat in your home to a comfortable temperature;
4. Seal up any drafts in windows and doors;
5. Provide shoe covers or slippers, or lay down a large mat, so visitors don’t leave your floors looking messy for the next appointment. Don’t forget to remove winter boots and coats from your hall to make the area look bigger and so that visitors have a clear space to enter;
6. Up your winter curb appeal: Upgrade your mailbox and house number; add winter floral arrangements with hearty outdoor perennial planters
7. As the days are shorter and it gets dark earlier, keep outdoor lights on during showings; 
8. Whenever possible, show your home during the daytime and let lots of natural light inside;
9. Make the front door and entrance look warm and welcoming with seasonal decor;
10. And, showcase how outdoor spaces can be enjoyed even in the colder months. Be sure to clear off outdoor furniture that can be used in winter