If recent headlines about rising inflation are making you wonder, if it's still a good time to buy a home, here is what the experts have to say.

Housing is an Asset That Typically Grows in Value

'If you have cash and are experiencing 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..."

~ Ali Wolf
Cheif Economist, Zonda

Your Mortgage Helps Stabilize Your Monthly Housing Costs

"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. That's certainly not the case if you are renting"

~ James Royal
Senior Wealth Management Reporter, Bankrate

Buying Protects Your From Rising Rents

"Homeowners are shielded from mounting rental prices because their cost is fixed, regardless of what's happening in the market. Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times"

~ Natalie Camisi
Advisor Staff, Forbes

When selling your home, nothing looks quite as good as a well-manicured front garden or beautifully decorated balcony. While many homeowners focus on the interiors of their homes, a property’s exterior can make all the difference, adding to its appeal and boosting its resale value.

And, a home’s exterior plays an important role in shaping a prospective purchasers’ decisions. As a first impression, these areas help set the tone and encourage buyers to visualize themselves owning the home.

An attractive exterior doesn’t have to break the bank. There are a number of ways you can create a stunning outside environment without much effort or money. Here are just a few tips to carry you through the selling season:

Clear the clutter. One of the easiest ways to make any outdoor space come to life is to keep it clean and tidy. This lets buyers visualize how they will make the space their own when it trades hands. 

Easy container gardens. Planted containers can add a charming look and feel to entranceways and balconies. When picking pots, look for similar styles that vary in size for a nuanced appeal.

Drought-tolerant plants. Flowerbeds and plants are often a great way to add a splash of colour to any exterior. For maximum effect, choose an assortment of perennials and annuals that require less water and are able to withstand hot summer days.

Don’t forget to fertilize. Though sunlight and water are usually enough, periodically feeding your plants essential nutrients will promote lavish growth and ensure consistent flowering.

If you’re working on a home improvement project – whether for you to enjoy, or in preparation to put your property on the market – you may be interested to know which renos will give you the most bang for your buck.

A kitchen renovation is the most worthwhile home improvement, and has the potential to increase the value of your property by 20%, according to a recent survey of Royal LePage experts.

“A kitchen is perceived as the gathering place and the heart of the home,” said Mike Heddle, broker and team leader, Royal LePage State Realty. “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. They may not remember the size of the bedrooms or the colour of the walls, but they will remember the kitchen.”

Highlights from the national release:

Royal LePage professionals say, on average, bathroom renovations can increase the value of a home by 16%

Finished basements and basement apartments have the potential to increase a home’s value by 15%, according to survey results.

Outdoor entertaining space and landscaping have the potential to increase a property’s value by an average of 10%, according to respondents.

For Canadians looking for general guidance on where to invest in their home renovation projects, 87% of surveyed experts recommend interior renovations.

For more insights, read the full press release and check out the data chart. 

One of the biggest concerns for a homeowner looking to sell is the time they’ll have to put in before listing their house. If that’s the case for you, you should know – your home might be closer to list-ready than you think in today’s housing market. A survey of recent sellers from realtor.com finds that many were able to get their house ready in less than a month. It says:

“With many homeowners expecting a quick sale, and in many cases a lack of contingencies, the preparation process took less than a month for over 50% of home sellers this past year, with 20% completing it in less than two weeks.”

Those sellers expecting to sell quickly are following recent buyer trends. With mortgage rates and home prices rising, buyers in today’s market are serious about finding a home quickly. But with the limited number of homes for sale, there are very few options for those buyers to choose from. That means many may be willing to take on projects after they purchase.

Because of this, you may be able to focus on less time-consuming tasks before putting your house on the market. According to the survey mentioned above, some of the top things recent sellers completed before listing over the past year include landscaping, making minor cosmetic updates, and touching-up paint.

A Real Estate Advisor Will Help Streamline the Process and Keep You Focused

Of course, each situation is different and knowing what repairs or updates your house needs to stand out in your local area is critical. That’s where a trusted real estate professional comes in.

In a recent article, NextAdvisor explains:
“. . . Real estate can be hyper-local, and demand can vary from one neighborhood to the next. It’s a good idea to work with a local real estate professional to determine an ideal listing price and if any improvements or repairs need to be completed before putting your home on the market.”

Your trusted real estate advisor knows the ins and outs of the market in your specific area. They’ll help you identify the places where you should and shouldn’t spend your time and money – and that can enable you to list quickly.

Bottom Line
If you’re ready to take advantage of the incredible conditions for sellers in today’s real estate market but are worried about the time it’ll take to get your home ready, you might be closer than you think. Partner with a local real estate advisor to see what you need to do before listing your house today.

In the last few weeks, the Bank of Canada has raised its overnight rate +0.75% . While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that prices or rates will fall, waiting will only cost you more. (READ MORE HERE) and, Mortgage rates are forecast to continue rising in the year ahead.

If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage rates rise.

How Rising Mortgage Rates Impact You
Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. So it is important to buy when RATES are LOW, not when PRICES are LOW.

With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of delaying your plans, today’s rates should motivate you to purchase now before rates increase more. Use that motivation to energize your search and plan your next steps accordingly.

The best way to prepare is to work with a trusted real estate advisor now. An agent can connect you with a trusted lender, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer.

Bottom Line
Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Work with a real estate professional to understand your budget and how you can be prepared to buy your home before rates climb higher.

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.