51% of Canadians who put their home buying plans on hold the last two years say they will return to the market when Bank of Canada reduces key lending rate

The increased cost of borrowing over the last two years has forced millions of Canadians to reconsider or readjust their plans to purchase a home. Since the Bank of Canada began raising its key lending rate in March of 2022, more than a quarter of the country’s adult population (27%) has been active in the market, and more than half of them (56%) say they’ve been forced to postpone their property search as a result of rising interest rates, according to a recent Royal LePage survey, conducted by Leger.1

With the rate of inflation having come down over the past year, close to the desired 2% target, it is expected that the Bank of Canada will make its first cut to the overnight lending rate later this year – a welcome relief for variable-rate mortgage holders and those who have been forced to put off their home buying plans. Among those who have had to postpone their purchase, 51% say they will resume their search if interest rates reverse – 10% say a mere 25-basis-point-drop will prompt them to jump back in, 18% say they are waiting for a cut of 50 to 100 basis points, and 23% say they need to see a cut of more than 100 basis points before they will consider resuming their search.

“Following the first rate hold by the Bank of Canada in March of last year, we saw an immediate surge of activity in the market as consumer confidence strengthened. I expect a similar wave of buyer demand at the first indication that highly-anticipated cuts by the central bank are on the horizon,” said Phil Soper, president and CEO, Royal LePage. “Buyer behaviour is strongly linked to their confidence that the home they want to buy today will not be less expensive tomorrow. We expect the spring will mark that pivotal moment.”

One fifth (20%) of sidelined buyers say they no longer plan to purchase a home, while another 12% say they are prepared to jump back in if the BoC’s key lending rate remains unchanged.

Among those who plan to re-enter the market once rates come down, 44% intend to obtain a four-year or five-year fixed-rate mortgage, the most popular mortgage type and term in Canada. That’s double the number of respondents who say they will choose a variable-rate mortgage (22%). Another 12% say they will obtain a short-term fixed-rate mortgage.

“In the first few weeks of the year, we have seen activity pick up in markets large and small, right across the country. Appointment bookings, property showings and requests for mortgage pre-approval through our lending partners are all up sharply. Our people on the front lines report that today’s real estate consumers are well informed, watching trends and fully prepared to engage when they perceive conditions are improved,” added Soper.

Of those who have postponed their home buying plans due to rising interest rates, 65% remain engaged in the home buying process. This includes those who are casually browsing listings (39%), continuing to save for a down payment (19%), have applied for a mortgage pre-approval (12%) or have obtained a mortgage pre-approval (7%). However, some have disengaged from the home shopping process entirely – 26% of respondents say that they have abandoned their home buying plans for the time being. 

The Bank of Canada’s overnight lending rate currently sits at 5.0%. The next interest rate announcement is scheduled for March 6th.2

From Something's Gotta Give to The Holiday, Nancy Meyers is a source of inspiration for cozy interior design.

Whether or not you're a fan of rom-coms, you can't deny that Nancy Meyers is one of the most prominent filmmakers of the genre. From witty banter to the swoon-worthy meet-cutes, each one of her movies is that a warm hug for the romantic inside us.

But there's one more thing that we absolutely love about her movies (apart from Jude Law's charming British accent): it's her commitment to creating the coziest, dreamiest homes for her characters.

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Get Inspired By Filmmaker Nancy Meyers, A Pillar For Cozy Maximalism

Her aesthetic is all about soft, neutral tones, plush fabrics and an inviting fireplace you can cozy up to with your loved ones, often described as "coastal grandmother." She showcases her characters' personalities through decor. For instance, Cameron Diaz's California mansion in The Holiday is bright, clean and technology-enhanced, showcasing her type-A nature and love of control. On the other hand, Kate Winslet's frazzled cottage in the English countryside is cozy but messy, evocative of the disarray in her own life.

How can you achieve this perfect balance of quiet luxury and welcoming coziness? Don't be afraid to showcase your favourite things and envelop your home in layers. Show off the art and trinkets you've collected over the years. Bookshelves are also essential to recreating Nancy's aesthetic, so fill yours up with everything that brings you joy.

Another key element is embracing a more rustic, traditional decor. Raffia, wicker, linens, plush carpets, wood accents and well-loved furniture are all part of the Meyers look, so you have plenty of options.

Remember, however, that a true Nancy Meyers-inspired home is all about comfort and homeliness, so lean into whatever aesthetic makes you happiest. The (interior design) world is your oyster!

Grab these items for a cozy maximalist look from your favourite movies.

Check out how this price segment varies regionally from coast to coast

When comparing the real estate markets of various cities, regions and provinces across Canada, a home with a price tag of $1 million can differ greatly. As the nation’s supply deficit persists and buyers struggle with affordability, there remains a vast variation of the definition of a $1-million home across major markets.  

In examining what a budget of approximately $1 million – give or take $50,000 – can buy in Canada’s major housing markets, Royal LePage® determined in a new report that the average home in Canada valued between $950,000 and $1,050,000 in December of 2023 had 3.2 bedrooms, 2.1 bathrooms and 1,760 square feet of living space, inclusive of all property types. 

Nationally, what $1 million can buy in Canada’s real estate market remains largely unchanged year over year, as a result of a major slowdown in activity and only modest property price growth. By comparison, in December of 2022, a home worth approximately $1 million had on average 3.2 bedrooms, 2.6 bathrooms, and 1,763 square feet of space.  

“Depending on the market that you are shopping in, a $1-million home can mean something very different. In Calgary, a budget of $1 million is considered the move-up price point for existing homeowners. In Vancouver, the same amount is often the starting point for entry-level buyers,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. “Years ago, a $1-million budget could buy a generous amount of square footage and access to sought-after neighbourhoods in almost any market. Over time, however, we have watched the purchasing power of $1 million vary more widely between cities. These days, this budget can buy a luxurious detached home in one location, or a two-bedroom condominium in another.”

There remains a stark discrepancy between how far a budget of $1 million will stretch in various regions across the country. Buyers located in some of Canada’s large urban centres often find themselves making more concessions on the type of home they can afford, even with a seven-figure budget, compared to those shopping in smaller, more affordable locations.

According to a recent Royal LePage survey conducted by Leger,1 two thirds of Canadians (64%) believe that $1 million in today’s real estate market is a reasonable budget to afford a home that meets their household’s needs. This includes 22% who say $1 million is ‘adequate’ and another 41% who say it is ‘more than enough’ to afford a home that meets their household’s needs in their current city or region. Meanwhile, 22% say it is ‘not enough’. 

“Many buyers are expected to come off the sidelines this year as interest rates begin to come down. This increased activity will undoubtedly put upward pressure on property prices, perpetuating affordability challenges even as monthly carrying costs are reduced,” added Yolevski. “Without a significant increase in supply, especially in cities like Toronto and Vancouver, the standard for a $1-million property will continue to evolve away from large homes.”   

Here are a few highlights from the Royal LePage 2024 Million-Dollar Properties Report:

• Edmonton boasts highest average square footage of all regions in the report (2,675 sq. ft.), while Vancouver records lowest (900 sq. ft.) in the $1-million category
• Cities and greater regions of Toronto and Vancouver rank below national average in square footage for $1-million properties, while the Greater Montreal Area boasts an average home size of 466 square feet larger than the national average
• Winnipeg and Halifax record largest average home size in $2-million category at almost 4,000 square feet

Unsurprisingly, for buyers shopping in the $2-million range, a larger budget buys significantly more space. The average home in Canada valued between $1,950,000 and $2,050,000 in December of 2023 boasted 3.7 bedrooms, 2.6 bathrooms and 2,501 square feet of living space, inclusive of all property types.

In an attempt to address the ongoing housing supply and affordability crisis in Canada, the federal government announced earlier this month that the Prohibition on the Purchase of Residential Property by Non-Canadians Act – otherwise known as the foreign buyer ban – will be extended for an additional two years. The Act was previously set to expire on January 1st, 2025, and has been extended to January 1st, 2027. 

The Liberals say the ban, which restricts foreign commercial enterprises and individuals who are not Canadian citizens or permanent residents from acquiring residential properties in Canada, is part of a broader strategy to cool the nation’s overheated housing market and make home ownership more attainable for Canadian citizens. 

Given that housing affordability has not greatly improved since the Act’s implementation more than a year ago, Royal LePage believes that an extension to the foreign buyer ban will not make a material difference on bettering access to housing for Canadians. 

“We do not foresee an extension to the foreign buyer ban resulting in a drastic improvement to housing affordability. Non-Canadian property ownership makes up a small percentage of the overall housing market, therefore a ban on such ownership is not likely to improve access to housing in a material way,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. “Given the imbalance between available inventory and buyer demand, the best way to solve Canada’s housing crisis is to significantly increase supply.”

The ban comes with specific exceptions, notably for individuals holding temporary work permits, refugee claimants, and international students who fulfill certain conditions. Those in violation of the ban could face penalties up to $10,000 and may be compelled to sell the implicated property. 

More information is available on the government’s website. 

Strong Momentum in Greater Vancouver

Real Estate Market Signals the Return of Consumer Confidence in 2024

The Greater Vancouver Real Estate market has demonstrated an impressive trajectory as it kicked off
the year with notable growth. Home values surged by $10,320 monthly and an impressive $84,637
year-over-year, resulting in an average home sale price of $1,252,392. The surge in yearly sale prices
coincided with a remarkable 37.5% increase in overall market activity, while inventory saw a 2.4%
uptick.

The real estate landscape in 2024 has started on a positive note, and industry experts predict a
further acceleration in market conditions in the latter half of the year. This creates a timely opportunity
for prospective homebuyers to make their move before the market potentially witnesses a resurgence
of multiple offers and frenzied activity.

As highlighted in a recent Globe and Mail article, attempting to time the mortgage rate cuts may not be the best path forward. “The truth is no one knows the future of interest rates – even Mr. Macklem is
uncertain about the possibility and timing of rate cuts. For first-time home buyers navigating the
uncertainty, it’s crucial to acknowledge that a crystal ball for mortgage rates doesn’t exist. And getting
caught up in the hype and uncertainty surrounding the future of rates is dangerous. When you buy
your first home, aim for a reasonable degree of certainty regarding the people in your life and your
housing needs; otherwise, you will end up having to sell sooner than you had planned and perhaps in
unfavourable market conditions, costing yourself tens or even hundreds of thousands of dollars.”

In January, each asset class experienced both monthly and yearly gains, instilling confidence in
homebuyers and sellers as market conditions stabilized. Leading the charge was the detached
market, boasting an average sales price of $2,104,523 – a monthly increase of $40,801 and a
significant yearly increase of $194,628 or 10.2%. The inventory for detached properties increased by
9.4%, with 3,310 active listings, resulting in a substantial 28.4% yearly gain in sales.

Condo prices also saw an upswing, reaching an average sales price of $816,427 – a robust yearly
increase of 7.5%. The strength of condo sales played a crucial role in this upward trajectory, with
January recording 749 sales, marking the 9th consecutive month of yearly gains. Sellers are
becoming more confident in achieving sales, reflected in the market with 11.3% more inventory in
January 2024 compared to the previous year.

Townhomes emerged as the highlight of the first month, experiencing a remarkable 83.3% yearly
increase in sales, totalling 220 finalized transactions. The average townhouse in Greater Vancouver
is now priced at $1,141,674, and despite a 6.8% yearly decline in inventory, the demand remains
strong.

The REBGV highlighted the unexpectedly robust performance of the housing market. "It’s hard to
believe that January sales figures came in so strong after such a quiet December, which saw many
buyers and sellers delaying major decisions,” commented Andrew Lis, REBGV’s director of
economics and data analytics. “If sellers don’t step off the sidelines soon, the competition among
buyers could tilt the market back into sellers’ territory as the available inventory struggles to keep
pace with demand. This follows a recent interview where Andrew expressed, “As we navigate through
2024, we expect a delicate balance between rising sales and normalizing inventories, which should
lead to a relatively quiet year for prices.”

A promising indicator of the market's potential for substantial gains is the re-entry of the Greater
Vancouver housing market into a golden cross scenario. This pattern, characterized by a short-term
moving average crossing above a long-term moving average, is considered a bullish breakout
pattern, suggesting positive momentum and potential future growth.

The anticipated strength and resilience projected for the latter half of the year seem to be gaining
traction earlier than expected. In light of this, both buyers and sellers should be prepared to make
informed decisions as the market continues to unfold.

Most of us are bound to encounter a small bedroom at some point in our lives, whether it’s your principal bedroom, a child’s bedroom, or a guest room. And while designing a tight space may seem daunting at first, the process presents an opportunity to get creative and find ways to maximize every square inch available. After all, a small bedroom should never have to mean sacrificing on style. In need of advice when it comes to designing your small bedroom?

Here are some of our best space-saving tips: 

1. FIND NARROW, AIRY NIGHTSTANDS

Not only do sleek, airy side tables look so modern and cool, they can be used as nightstands and are the perfect way to save on space. Slimmer nightstands may even allow you to fit one on either side of the bed for added comfort, if the room is being used by a couple. Be sure to look for a table height equal to or slightly higher than the top of the mattress since it’ll make it easier for you to reach over in bed. Floating nightstands might also be a great choice for your bedside – and you can place them at the exact height that works for you.

2. INVEST IN A LITTLE LUXURY 

You don’t have a lot of space for furniture when designing your small bedroom, so look to bedding, wallcoverings, art, and accessories for some drama and a touch of luxury. Treat your room to that beautiful paint, finish, or piece of décor you’ve been eyeing but might not have wanted to invest in for a larger room.

3. USE SCONCES

With smaller nightstands, it’s likely you aren’t going to want to sacrifice that limited surface area with a table lamp. Free up room for books, an alarm clock, or your bedside beverages by using sconces or pendants on either side of the bed. As for how high to place your lighting fixtures, aim to have the bottom of the shade hit at or below eye level when sitting up to read in bed – that way you’ll be sure to avoid any irritating glares.

4. TRY A TALL HEADBOARD

When designing your small bedroom, a tall headboard will draw the eye up and make use of vertical space in the room. Not only that, but an upholstered headboard will also offer some soundproofing to the room for more restful nights and an overall cozier look and feel.

5. TAKE ADVANTAGE OF UNDER-BED STORAGE

A storage bed is the perfect companion to a small bedroom, especially if the space is a little too tight to include a dresser. Already have a bed that you aren’t looking to replace? There are plenty of rolling drawer options available you can purchase to use under a bed you already own.

6. MAKE USE OF MIRRORS

It may be common design knowledge at this point, but we’ll say it again; mirrors can go a long way to brighten a space and make it feel larger. Incorporate mirrors into your small bedroom by placing a stylish option above a dresser or vanity area.

Looking to discover your design style? You’ve come to the right place.

We have to admit, there’s nothing quite like coming home – whether it’s been a day, a week, or just a couple hours running errands around town. Our homes welcome us in with the promise of rest, relaxation, and fun with family and friends. It’s a space to experiment with our creative side, whether you’re into cooking, DIY projects, or practicing dance routines. Even more special than that is a home that you can walk into and instantly recognize as your own by the story it tells through paint, pattern, furniture, and decor.

If you haven’t yet discovered your design style – that signature mix that best represents you – we’re sharing our top tips below to uncover yours. And do keep in mind that design styles can be constantly evolving, have no hard and fast rules, and can include blends of multiple styles for an eclectic look.

CREATE A MOODBOARD OF SPACES YOU LOVE

One of the best places to discover your design style, Pinterest is a home aficionados dream for its ability to inspire with fresh ideas to help decorate. If you aren’t sure of your design style or how you should go about decorating, try creating a Pinterest board and pinning interior images you love over the course of a few months, then take some time to notice similarities between the Pins. What sorts of interiors, colours, and details appear most often? Use that information to help you discover consistencies in your style.

THINK ABOUT THE WAY YOU DRESS

One of the first things interior designer Brian Gluckstein will take into consideration when working with a new client is the way they dress. Most often, the way someone dresses will offer cues to the way they’d like to experience their interior, too. For example, someone who loves vintage jewellery might also love glam, gilded furniture,. On the other hand, someone who dresses in streamlined cuts and limited colours might be more minimalist when it comes to their interior. What are the tried-and-true staples of your wardrobe? These might be helpful indicators for determining your personal decor style, too.

CONSIDER HOW YOU LIVE

When it comes to interiors – as much as with clothing – form isn’t the only important factor. Consider the function you need in your home, and what works for you and your household’s lifestyle. If you have pets or young kids, it may not make sense to have a ton of light, bright furniture pieces like in Scandinavian-inspired interiors. Hate clutter? Consider going minimalist to help you feel relaxed in your space and inspire you to continue living light. Like to feel like your interior isn’t too precious? Opt for an industrial look with lots of aged metals, rustic woods, and leathers that grow softer over time.

Here’s a recap of twelve of the most common design styles. And remember you can blend these looks and put your own spin on things for a look that suits you:

1. Modern – Clean lines and sleek finishes, with occasional pops of colour.
2. Traditional – Classic shapes, functional pieces, and a more formal aesthetic. 
3. Transitional – A blend between modern and traditional.
4. Scandinavian – Minimal yet inviting, with lots of light woods and light neutrals.
5. Minimalist – Pared back and focused on the essentials.
6. Boho – Natural materials like cane and rattan mixed with playful colour and pattern.
7. Eclectic – Aspects of many different design styles paired together.
8. Modern Farmhouse – Rustic yet refined, with a lighter base and lots of black accents.
9. Glam – Glimmering finishes with rich colours and textures.
10. Industrial – Factory-inspired materials with a masculine edge.
11. Coastal – Beachy, with lots of white-washed woods and blue accents.
12. Mid-Century Modern – An aesthetic born from the 50s, with warm woods and sleek profiles.

SURREY, BC – The Fraser Valley real estate market showed signs of recovery in January as home sales rose after six consecutive months of decline, and new listings more than doubled.

The Fraser Valley Real Estate Board recorded 938 transactions on its Multiple Listing Service® (MLS®) in January, a 12 per cent increase over December and below the 10-year average for sales in the region.

At 2,368, new listings increased 151 per cent in January, rebounding strongly from the seasonal lull seen in December. This is the largest month-over-month percentage increase in new listings in five years.

“With January sales on the rise, we are seeing hopeful signs that optimism is returning to the market,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “Anticipating that we may be at the end of the Bank of Canada rate hike cycle, it appears that more buyers are considering re-entering the market as we are starting to see more traffic at open houses.”

Active listings in January were 4,877, up by 4 per cent over last month and up by 18 per cent over January 2023. The sales-to-active listings ratio was 19 per cent, representing balanced conditions in the overall market. Detached houses are in balanced market territory at 19 per cent, while both townhomes and apartments remain in seller’s market territory at 34 and 27 per cent respectively. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

“Current balanced market conditions present opportunities for both buyers and sellers,” said FVREB CEO, Baldev Gill. “In today’s market, buyers and sellers have time to get preapprovals, put together offers and take the time needed to work through the purchase or sale of a home with the help of a knowledgeable and professional REALTOR®.”

The average number of days homes are spending on the market has been increasing since October, with single family detached homes spending 44 days on the market, apartments spending 41 days on the market and townhomes moving more quickly at 33 days.

Overall Benchmark prices continued to edge downward for the sixth month in a row, losing less than half a per cent from December, and down six per cent from the 12-month peak in July.

MLS® HPI Benchmark Price Activity

• Single Family Detached: At $1,466,100, the Benchmark price for an FVREB single-family detached home decreased 0.4 per cent compared to December 2023 and increased 8.6 per cent compared to January 2023.

• Townhomes: At $825,600, the Benchmark price for an FVREB townhome decreased 0.1 per cent compared to December 2023 and increased 6.9 per cent compared to January 2023.

• Apartments: At $539,700, the Benchmark price for an FVREB apartment/condo increased 0.4 per cent compared to December 2023 and increased 6.5 per cent compared to January 2023.

The Fraser Valley Real Estate Board is an association of 5,147 real estate professionals who live and work in the BC communities of Abbotsford, Langley, Mission, North Delta, Surrey, and White Rock.

While the Metro Vancouver market ended 2023 in balanced market territory, conditions in January began shifting back in favour of sellers as the pace of newly listed properties did not keep up with the jump in home sales.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totalled 1,427 in January 2024, a 38.5 per cent increase from the 1,030 sales recorded in January 2023. This was 20.2 per cent below the 10-year seasonal average (1,788).

“It’s hard to believe that January sales figures came in so strong after such a quiet December, which saw many buyers and sellers delaying major decisions,” Andrew Lis, REBGV’s director of economics and data analytics said. “If sellers don’t step off the sidelines soon, the competition among buyers could tilt the market back into sellers’ territory as the available inventory struggles to keep pace with demand.”

There were 3,788 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2024. This represents a 14.5 per cent increase compared to the 3,308 properties listed in January 2023. This was 9.1 per cent below the 10-year seasonal average (4,166).

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 8,633, a 9.8 per cent increase compared to January 2023 (7,862). This is 0.3 per cent below the 10-year seasonal average (8,657).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for January 2024 is 17.2 per cent. By property type, the ratio is 11.9 per cent for detached homes, 22.9 per cent for attached, and 19.9 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“Our 2024 forecast is calling for a two to three per cent increase in prices by the end of the year, which is largely the result of demand, once again, butting up against too little inventory,” Lis said. “If the January figures are indicative of what the spring market has in store, our forecast may already be off to an overly conservative start. Markets can shift quickly, however, and we’ll watch the February numbers to see if these early signs of strength continue, or whether they’re a blip in the data.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,161,300. This represents a 4.2 per cent increase over January 2023 and a 0.6 per cent decrease compared to December 2023.

Sales of detached homes in January 2024 reached 379, a 28 per cent increase from the 296 detached sales recorded in January 2023. The benchmark price for a detached home is $1,942,400. This represents a 7.3 per cent increase from January 2023 and a 1.1 per cent decrease compared to December 2023.

Sales of apartment homes reached 746 in January 2024, a 30.6 per cent increase compared to the 571 sales in January 2023. The benchmark price of an apartment home is $751,900. This represents a 4.4 per cent increase from January 2023 and a 0.1 per cent increase compared to December 2023.

Attached home sales in January 2024 totalled 285, a 82.7 per cent increase compared to the 156 sales in January 2023. The benchmark price of a townhouse is $1,066,700. This represents a 4.3 per cent increase from January 2023 and a 0.6 per cent decrease compared to December 2023.

Download the January 2024 stats package.