Copyright British Columbia Real Estate Association. Reprinted with permission."

Canadian retail sales fell 0.1 per cent to $66.7 billion in February. Excluding volatile items, sales were flat on a month-over-month basis. In volume terms, adjusted for rising prices, retail sales fell 0.3 per cent in February. After falling more than 2 per cent in January, retail sales in BC were up 1.2 per cent in February and were up 2.6 per cent from the same time last year. In the CMA of Vancouver, retail sales were down 0.2 per cent from the prior month and were up 4.2 from February 2023. Link: https://mailchi.mp/bcrea/canadian-retail-sales-february-2024-april-24-2024

Copyright British Columbia Real Estate Association. Reprinted with permission."

Here’s how to start your home buying journey.

Buying your first home is a huge milestone. Congratulations! There are so many decisions to make along the way – everything from determining what you can comfortably afford to spend to maintaining your home over the years. 

In recognition of these important decisions you’ll have to make throughout your time as a homeowner, we’ve created The Ultimate Homebuyer’s Checklist to walk you through every step, ensuring you’re well-prepared and confident in your homebuying decisions.

The Ultimate Homebuyer’s Checklist includes the following 10 key steps to helping ensure a smooth transition into homeownership and throughout your homeownership journey:

Step 1 – Assess Your Financial Situation

• Calculate your budget, including down payment, closing costs and ongoing monthly expenses
• Check your credit score and work on improving it as needed
• Get pre-approved for a mortgage with your mortgage broker or lender to determine what you can comfortably afford to spend

Step 2 – Define Your Home Preferences

• List your must-haves, such as the number of bedrooms, location and desired features
• Differentiate between your needs and wants to prioritize effectively
• Research neighbourhoods and communities to find the perfect match for your lifestyle

Step 3 – Find a Real Estate Agent

• Ask for recommendations from trusted friends, family and colleagues, and conduct interviews to select a reputable agent with whom you feel comfortable working
• Ensure your agent has expertise in your preferred location/neighbourhoods
• Communicate your goals and preferences clearly

Step 4 – Start House Hunting

• Attend open houses and schedule viewings with your agent
• Take notes and photos to compare different properties
• Consider the potential for future growth and resale value of each property

Step 5 – Make an Offer

• Work with your agent to craft a competitive offer
• Negotiate terms, including the price, contingencies and closing date
• Be prepared for counteroffers and stay flexible, but also be cognizant of your maximum purchase price

Step 6 – Inspect the Property

• Hire a professional home inspector to evaluate the property’s condition
• Review the inspection report carefully and address any concerns
• Negotiate repairs or credits as necessary

Step 7 – Secure Financing

• Review loan terms and with your mortgage broker or lender to ensure you understand the details
• You’ll be required to get mortgage insurance if your down payment is less than 20% of the purchase price
• Finalize your mortgage application with your mortgage broker or lender

Step 8 – Close the Deal

• Review the closing documents with your lawyer/notary and agent
• Conduct a final walkthrough to ensure the property’s condition
• Sign the paperwork and receive the keys to your new home

Step 9 – Move and Settle In

• Plan your move and hire movers if needed
• Change your address, set up utilities and forward your mail
• Personalize your new house so it feels like home

Step 10 – Maintain Your Investment

• Create a maintenance schedule for your new home
• Budget for repairs and improvements over time
• Stay connected with your real estate agent and home inspector for future needs

Get The Home Buyer’s Checklist Before Your Buy!

To make your homebuying journey even more manageable, we’ve prepared a downloadable PDF version of The Ultimate Homebuyer’s Checklist. Print it out and keep it handy as you embark on this exciting adventure. With this checklist by your side, you’ll be well-prepared to find your dream home and make it your own.

Download The Ultimate HomeBuyer’s Checklist Here

Your path to homeownership starts here. Happy house hunting!

Find an Inspector near you: https://abuyerschoice.com/locations

Royal LePage upgrades national year-end home price forecast as Canadian real estate market hits 'critical tipping point': 
In 2024, Greater Toronto and Montreal home price appreciation expected to outpace former frontrunner, Calgary
 
Royal LePage is forecasting that the aggregate price of a home in Canada will increase 9.0 per cent in the fourth quarter of 2024, compared to the same period last year. Based on stronger-than-expected first quarter results, the previous forecast has been upgraded nationally and ... more

In its third interest rate announcement for 2024, the Bank of Canada chose to hold its overnight lending rate at its current level of 5%. This marks the sixth consecutive hold to the rate since July of 2023.

In its scheduled interest rate announcement for April 10th, Canada’s central bank stated that it would hold the policy rate at 5% in an effort to “continue to normalize the Bank’s balance sheet.”

The Central Bank noted that while the consumer price index and core inflation have eased in recent months, overall inflation and economic risks remain. The Bank said that it will be looking out for evidence that the downward trend in inflation is sustained before moving to make a cut.

Tiff Macklem, Governor of the Bank of Canada, stated in a press conference following the announcement that the Bank does not wish to leave monetary policy this restrictive for longer than its needs to, but cautioned that lowering the policy rate prematurely could jeopardize the progress made to bringing inflation down.

“Based on our forecast and the risks, Governing Council decided it was appropriate to maintain the policy rate at 5%,” said Macklem. “We also concluded that, overall, the data since January have increased our confidence that inflation will continue to come down gradually even as economic activity strengthens. Our key indicators of inflation have all moved in the right direction and recent data point to a pickup in economic growth.”

Is an interest rate cut in sight?

Economists expect that the first chop to rates could come in June. As many as 100 basis points could be cut from the key lending rate this year, experts predict.

Macklem noted that while the Bank is seeing economic factors trend in the right direction for a rate cut, more time is needed to ensure inflation is truly coming under control.

“I realize that what most Canadians want to know is when we will lower our policy interest rate. What do we need to see to be convinced it’s time to cut? The short answer is we are seeing what we need to see, but we need to see it for longer to be confident that progress toward price stability will be sustained,” said Macklam. “The further decline we’ve seen in core inflation is very recent. We need to be assured this is not just a temporary dip.”

The Bank of Canada will make its next announcement on Wednesday, June 5th, 2024.

Read the full April 10th report here.

Buyers reboot purchase plans in Q1 to get ahead of rising home prices, anticipated interest rate cuts

Nationally, home prices increased 2.9% on a quarterly basis in Q1 as more buyers moved off the sidelines

Spring is normally the most active period for Canada’s real estate market – the arrival of warmer weather triggers an increase in buying and selling activity across the country. In 2024, the traditionally-busy spring market kicked off early and is facing additional pressure, as homebuyer hopefuls who have been sitting on the sidelines jump back into the market ahead of anticipated interest rate cuts, and the tight competition and higher home prices that will inevitably follow. 

Royal LePage® is forecasting that the aggregate1 price of a home in Canada will increase 9.0% in the fourth quarter of 2024, compared to the same period last year. Based on stronger-than-expected first quarter results, the previous forecast has been upgraded nationally and in most major markets.

“Consistent with our previous forecast, the market did reach a critical tipping point in the first quarter of 2024, when home prices bottomed out and began to appreciate again. Clearly, more and more buyers are motivated by the need to get ahead of rising home prices, rather than adopting the strategy of waiting for mortgage rates to fall,” said Phil Soper, president and CEO, Royal LePage. 

How did home prices perform in Q1?

According to the Royal LePage House Price Survey, the aggregate price of a home in Canada increased 4.3% year over year to $812,100 in the first quarter of 2024. On a quarter-over-quarter basis, the national aggregate home price increased 2.9%, an indication that sidelined buyers are rebooting their real estate purchase plans ahead of expected interest rate cuts, as predicted in January. 

When broken out by housing type, the national median price of a single-family detached home increased 4.5% year over year to $845,300, while the median price of a condominium increased 3.5% year over year to $591,900. 

Toronto and Montreal home price appreciation to outpace Calgary

The aggregate price of a home in the greater regions of Toronto and Montreal are forecast to increase 10.0% and 8.5% year over year, respectively, in the fourth quarter of 2024, outpacing price gains in the city of Calgary, which was previously expected to see the greatest increase in home values this year. 

“Last year, while property values dipped in most markets across the country, the Calgary real estate market bucked the trend and continued to record home price gains. While activity levels remain strong and prices continue to rise in Alberta, our research indicates that buyer demand, relative to available inventory, is strongest in the two largest urban centres in the country. We now expect Toronto and Montreal to log the highest home price appreciation this year,” added Soper. 

This sustained price appreciation is expected to close the gap between the country’s two most expensive real estate markets, Toronto and Vancouver. While Vancouver remains the nation’s most expensive market today, Royal LePage predicts that the aggregate price of a home in the GTA will surpass Greater Vancouver in the second half of 2024.

Busy spring, busier fall, on the cards for 2024

Within the first months of the new year, the Canadian housing market has already recorded solid price appreciation and higher sales activity. Starting in July of 2023, the Bank of Canada has held rates steady through six review periods. This has prompted many homebuyers to come off of the sidelines in advance of what they expect will be a more competitive spring market that will drive home prices higher. 

“Given the strong start to 2024, the cadence of the market for the balance of the year points to a normally busy spring market that will lead into an uncomfortably busy fall. It is clear we are rapidly transitioning away from a buyers’ market and back to an environment where the seller has the upper hand,” noted Soper. 

Read Royal LePage’s first quarter release for national and regional insights. 

First quarter press release highlights:

• Among major regions, Calgary recorded highest year-over-year aggregate price appreciation (9.7%) for the second consecutive quarter; increased 1.9% on a quarterly basis
• 89% of regions in the report recorded quarterly price appreciation in the first three months of the year, ahead of the traditionally busy spring market period
• Royal LePage expects home prices in the Greater Toronto Area will surpass those in Greater Vancouver in 2024 

• BC NDP government introduced home flipping tax legislation in line with their February 2024 budget promise.
• Bill 15 2024 imposes a tax on profits from the sale of residential properties owned for less than 730 days, effective January 1, 2025.
• Tax rates range from 20 per cent for sales within a year to no penalty after two years, with exemptions for certain life circumstances and real estate development activities.