MARIE TAVERNA & KIM TAVERNA

TAVERNA REAL ESTATE GROUP

Direct : 604-802-7759   

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 How to Make your Home “Picture Perfect” for Viewings

Have you ever had a formal photo shoot? Perhaps you’ve had one for work or arranged one for your family. If so, chances are you dressed up and made yourself look your best.

That’s the right mindset to be in when selling your home too. You want to make every room look as attractive as possible because, these days, many buyers will view pictures of your listing – usually online – before they actually come to see it.

So, how do you make your home look “picture perfect”?

An effective technique is to walk around your home with a camera. You don’t need to take any pictures, at least not yet. Just visit each room and view it through the camera lens. Look at the room from different angles – as though you were a Hollywood director planning a shot! Then, ask yourself the following questions:

  • Will the room look cluttered in a picture?

  • Does the room appear to be spacious and comfortable?

  • Is there anything in the shot that stands out as distracting or negative?

  • Will removing, adding or re-arranging furniture and other items make the room look better in a photo?

  • Does the room look better at certain times of the day?

  • Are there any other changes you can make to the room to make it look better in a photo?

After you’ve gone through this exercise, you’ll have a clear idea of what changes you need to make to ensure your listing looks its best in photos and video.

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Strong Momentum in Greater Vancouver

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.

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Space-Saving Tips for Small Bedrooms
GlucksteinHome 

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.

GlucksteinHome accent tablesGlucksteinHome Aspen iron accent table, Lattice accent table, Monroe 2-piece table set

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.

GlucksteinElements Dorset lightingGlucksteinElements Dorset wall sconce and pendant

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.

GlucksteinHome storage bedsGlucksteinHome Crosby storage bed, Victoria storage bed

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.

GlucksteinElements mirrors
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Find your personal design style


GlucksteinHome

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.
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Signs of stability in Fraser Valley housing market

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.

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Home sales across Metro Vancouver’s housing market off to strong start in 2024

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.

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New housing legislation to look out for in 2024

With a new year now underway, Canadians can expect to see a variety of changes coming to federal, provincial and local government housing legislation in 2024. 

From updated taxes to revised urban planning regulations, new housing laws and policies will roll out across the country in the coming months. Several of these policies promise to boost much-needed housing supply, which remains at a critical shortage in both the resale and rental segments.  

Here are the new housing policies that you should know about in 2024. 


Federal Policies

Short-term Rental Restrictions

In November, 2023, the Government of Canada unveiled its 2023 Fall Economic Statement, which details new tax, spending and inventory-boosting measures. This includes new efforts to incentivise short-term rental operators to return properties to the long-term housing market. Going forward, income tax deductions will be denied in cases where short-term rental owners are not compliant with provincial or municipal licensing, permitting or registration requirements. This applies to all expenses incurred on or after January 1st, 2024.

You can read more details from the 2023 Fall Economic Statement here

Pre-approved Home Design Catalogue

To boost construction of new home supply, the federal government intends to revive a post-Second World War housing policy of standardized, pre-approved home designs, making it easier and faster for developers to build new properties. The modern version of the catalogue will focus on creating blueprints for a variety of low-rise housing, and potentially higher-density homes and different forms of building construction, such as modular and prefabricated homes. 

Consultations for the home catalogue are expected to start in January, 2024.


British Columbia 

New Short-term Rental Housing By-laws

In late 2023, the provincial government introduced the Short-Term Rental Accommodations Act which imposes stricter regulations and enforcement on short-term rental housing. As of May 1st, 2024, the Act will require short-term rental hosts to display a valid business licence number on their listing in regions where a licence is required by the local government. Short-term rentals will be limited to the host’s principal residence, plus one secondary suite or accessory dwelling unit, in select communities. 

Additionally, protections for ‘non-conforming use of property’ will no longer apply to short-term rentals. Later in the year, the British Columbia government will implement a short-term rental registry, and require rental platforms to share data with the Province. 

Expanded Speculation and Vacancy Tax

The province has expanded its existing speculation and vacancy tax laws to 13 new communities, including Penticton, Courtenay and Kamloops. Homeowners in applicable regions will be required to declare how they used their property in 2024 for the first time in January, 2025. 

Introduced in 2018, the speculation and vacancy tax is 2% for individuals who don’t pay the majority of their taxes in Canada, or 0.5% for Canadian citizens or permanent residents who pay the majority of their taxes in the country. 

Updated Zoning Rules

New zoning laws are under consideration to deliver more small-scale, multi-unit housing across British Columbia. Under the proposed legislation, one secondary suite or one laneway home will be permitted in all communities throughout the province. In most areas within municipalities of more than 5,000 people, by-laws will also be adapted to allow three to four units on lots currently zoned exclusively for single-family or duplex residential, and permit six units on larger lots close to transit stops with frequent service.

Additionally, the new zoning rules would require municipalities to update community plans and zoning by-laws on a regular basis to ensure that there is enough housing for current and future residents. Changes to zoning by-laws will roll out across 2024. 


Alberta

Interest on Security Deposits

Alberta landlords will be required to pay annual interest on security deposits they receive from their tenants. Effective January 1st, 2024, the interest rate payable on security deposits will be set at 1.6% under the Residential Tenancies Act and Mobile Home Sites Tenancies Act. Previously, security deposits did not incur interest. 


Toronto

New Luxury Home Tax

Effective January 1st, 2024, the City of Toronto will enforce graduated Municipal Land Transfer Tax thresholds for high value residential properties. Previously, homes valued at $2 million or more would be subject to a MLTT rate, which is currently set at 2.5%. Going forward, additional thresholds have been established for homes priced between $3 million and $20 million, with the new rates set incrementally higher based on the value of the home. 

Legalization of Rooming Houses

Otherwise known as multi-tenant homes, rooming houses will become legal in the City of Toronto starting March 31st, 2024, along with new regulations. Previously, rooming houses were not legal in some areas of the city. Under the new framework, Toronto rooming houses will be limited to a maximum number of rooms and parking, licensing requirements, and will be required to follow a compliance program. A multi-tenant house is defined as a building with four or more rooms that may have a shared washroom and kitchen.

Increase in Vacant Home Tax Rates 

In 2023, Toronto introduced its first ever Vacant Home Tax (VHT), which requires homeowners to declare the occupancy status of their residence to the municipality each year. The VHT was implemented to increase housing supply in Toronto by encouraging the conversion of empty properties into occupied homes.

The VHT has been increased from 1% to 3% for the 2024 taxation year, which will become payable in 2025.

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6 interior design trends we’ll see in 2024

With a new year comes a new wave of home design trends. From furniture to colour schemes, the arrival of a new year is the perfect time to think about updating your home interiors to incorporate current styles. Refreshing your living spaces doesn’t require a major overhaul — swapping out your cabinetry hardware or revamping your linens can make a noticeable difference in any room.

Here are six interior design trends for 2024 you can try in your home:

Bold colours and patterns

If you’ve got a love for dramatic interiors, then 2024 is the year for you. This year is all about “go big, or go home,” with punchy colours, patterns and textures taking centre stage. Begone with all neutral interiors and playing it safe — 2024 is the year to experiment with zesty kitchen backsplashes, maximalist accessories and artwork, and over-the-top lighting fixtures.


Handmade and artisan goods

Our craving for natural elements in home interiors continues in 2024 as handmade accessories rise in popularity. Bespoke pieces made from wood, clay, wicker and glass will be a sought-after statement piece in interiors this year, as earthy inspiration remains a dominant design theme. If you’re looking to incorporate unique pieces into your living space, seek out ceramics, wood carvings and glass work at local markets and galleries to add to your walls and tables. Bonus points for adding pieces you’ve collected on your travels around the globe!

Shades of brown and blue

Earth-like colours will be a standout component of 2024 home interiors.

Several paint companies have named a shade of blue as their 2024 Colour of the Year, such as Benjamin Moore’s Blue Nova, or Sherwin Williams’ Upward. Interior designers are also forecasting that varieties of brown will be a big hit this year as a rich neutral accent colour, over the cooler gray tones we’ve seen in recent years. You can bring browns and blues into your home in 2024 through paint, tile and wallpaper choices, or by incorporating natural elements like wood furnishings, curtains and accessories.

Begone basic bouclé

We’re all familiar with creme-coloured bouclé — the nubbly fabric that has dominated everything from living room chairs to sweaters for the past couple of years. With 2024 seeing bolder and brighter patterns, the sheep-like bouclé we know and love is being phased out. Instead, bouclé with fluffier texture and more vibrant colours is coming into style. Don’t feel the need to go full-on, wall-to-wall bouclé to capture this trend. Instead, opt for a rug, cushion cover or accent furniture that can easily be swapped out as interior styles evolve.

Continuation of curves

Round shapes were a staple in 2023 interiors, and the trend is continuing into this year. Parting from straight, perfect lines, curves embrace the imperfections and organic shapes we find in the natural world. If you’re looking to take a page from the book of biophilic design, bring curves into your interiors with round furniture, such as bar stools, sectional “conversation,” sofas and coffee tables, or curved accessories like mirrors and rugs.

Mixing metallics

Mixing metals was once considered a fashion faux pas, but not this year. Taking a break from matte black fixtures, 2024 will see the rise of mixed metal finishes and hardware, combining varieties of nickel, bronze, gold and brass. You can experiment with metals beyond just door handles and drawer knobs — introduce a mix of metals with contrasting accent lighting fixtures, faucets, appliance finishes and decor accents.

Curious to know what interior design trends defined 2023? Take a look at our list from last year here.

LATEST POSTS

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Royal LePage's Q4 2023 Home Price Update and Market Forecast

A resurgence of activity in Canada’s housing market is expected this spring, with sidelined buyers banking on a drop in interest rates

Nationally, home prices ended 2023 up 4.3% over prior year despite market slowdown


High interest rates have caused many homebuyers and sellers to push pause on their real estate plans over the last six months, significantly curtailing overall activity in housing markets across the country. However, as Canadians continue to adjust to higher borrowing costs, and the first anticipated rate cut by the Bank of Canada nears, a brisk spring market is on the horizon. 

“I believe the narrative suggesting that the housing market will rebound only when the Bank of Canada lowers rates misses the mark,” said Phil Soper, president and CEO of Royal LePage. “The recovery will begin when consumers have confidence the home they buy today will not be worth less tomorrow. We see that tipping point occurring in the first quarter, before the highly anticipated easing of the Bank of Canada’s key lending rate.”

According to the Royal LePage House Price Survey released today, the aggregate1 price of a home in Canada increased 4.3% year over year to $789,500 in the fourth quarter of 2023. On a quarter-over-quarter basis, however, the national aggregate home price decreased slightly by 1.7%, highlighting that elevated borrowing costs continue to affect market activity, as Canadians adapt to the higher interest rate environment. 

Royal LePage recently issued its 2024 Market Survey Forecast, projecting that the aggregate price of a home in Canada will increase 5.5% in the fourth quarter of 2024, compared to the same quarter in 2023.

In December, the Bank of Canada once again held its key lending rate steady at 5.0%, and indicated that it has likely concluded its interest rate increase campaign and could begin making modest cuts later this year. 

“The Bank of Canada governing council will soon face the difficult task of trying to balance the lowering of interest rates without simultaneously stimulating spending, which would cause inflation to rise again,” said Soper.

In November, the Consumer Price Index (CPI) rose 3.1% per cent on a year-over-year basis, matching the increase in October.2 If mortgage interest costs are taken out of the CPI calculation, inflation sits at 2.2%, close to the Bank of Canada’s target rate.3

“Similar to what we witnessed last spring, when the Bank of Canada paused rates for the first time in a year causing sales activity and prices to increase almost immediately, the first sign of rate cuts – even if only by 25 basis points – could create a flurry of activity in the real estate market,  releasing pent-up demand. Those who have been holding off listing their homes will follow close behind,” added Soper.

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

Fourth quarter press release highlights:

  • Aggregate home price in greater regions of Toronto, Montreal and Vancouver posted gains of 5.1%, 4.1% and 2.7% year over year, respectively, in final quarter of 2023 
  • Among report’s major regions, Calgary recorded highest year over year price appreciation (10.7%); only major region to post quarterly price gains in Q4 2023 (1.5% over Q3)
  • 81% of regional markets posted a quarter-over-quarter decline 
  • Approximately 2.2 million mortgages in Canada will be renewing over the next two years, most at a much higher interest rate
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2024 DESIGN TRENDS
✨ Elevate your living space with the hottest interior design trends of 2024! Whether you're redesigning your kitchen, bathroom, or exploring new colour palettes, we've got you covered. Here's a curated list to inspire your home transformation:
Multi-functional Spaces: Adapt to the times with clever, multifunctional rooms that maximize smaller spaces, reflecting a shift towards valuing experiences over larger homes.
Mid Toned Wood Floor: Choose oak and white washedfloors to stay on-trend, steering clear of grey, orange, or brassy undertones.
The Revival of Burgundy and Plum: Bid farewell to black and green as burgundy, plum, and French country blues take center stage in 2024.
Zellige Tiles: Add an organic touch to your space with these imperfectly cut beige tiles in kitchens, bathrooms, and laundry rooms.
Blues as Top Color Trend: Create a timeless atmosphere with soft and fresh tones of blue, perfect when paired with classic white and black.
Taupe and Beige Cabinets: Infuse a touch of elegance by incorporating gold accents for a current kitchen vibe.
✨ Ready to transform your home? Let us know what you think of these trends in the comments below!
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December Market Update 2023

Metro Vancouver housing market shows resilience in 2023, ending the year in balanced territory


Metro Vancouver’s housing market closed out 2023 with balanced market conditions, but the year-end totals mask a story of surprising resilience in the face of the highest borrowing costs seen in over a decade. 


The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totalled 26,249 in 2023, a 10.3 per cent decrease from the 29,261 sales recorded in 2022, and a 41.5 per cent decrease from the 44,884 sales in 2021. 
Last year’s sales total was 23.4 per cent below the 10-year annual sales average (34,272). 


“You could miss it by just looking at the year-end totals, but 2023 was a strong year for the Metro Vancouver housing market considering that mortgage rates were the highest they’ve been in over a decade,” Andrew Lis, REBGV’s director of economics and data analytics said. “In our 2023 forecast, we called for modest price increases throughout the year while most other forecasters were predicting price declines. The fact that we ended the year with five-per-cent-plus gains in home prices across all market segments demonstrates that Metro Vancouver remains an attractive and desirable destination, and elevated borrowing costs alone aren’t enough to dissuade buyers determined to get into this market.” 


Properties listed on the Multiple Listing Service® (MLS®) in Metro Vancouver totalled 50,893 in 2023. This represents a 7.5 per cent decrease compared to the 55,047 properties listed in 2022. This was 20.2 per cent below the 63,761 properties listed in 2021. 


The total number of properties listed last year was 10.5 per cent below the region’s 10-year total annual average of (56,868). 


Currently, the total number of homes listed for sale on the MLS® system in Metro Vancouver is 8,802, a 13 per cent increase compared to December 2022 (7,791). This is 0.3 per cent above the 10-year seasonal average (8,772). 


The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,168,700. This represents a five per cent increase over December 2022 and a 1.4 per cent decrease compared to November 2023. 


“Ultimately, the story of 2023 is one of too few homes available relative to the pool of willing and qualified buyers,” Lis said. “Sellers were reluctant to list their properties early in the year, which led to fewer sales than usual coming out of the gate. But this also led to near record-low inventory levels in the spring, which put upward pressure on prices as buyers competed for the scarce few homes available.”

 
“Looking back on the year, it’s hard not to wonder how we’d be closing out 2023 if mortgage rates had been a few per cent lower than they were. And it looks like we might get some insight into that question in 2024, as bond markets and professional forecasters are projecting lower borrowing costs are likely to come, with modest rate cuts expected in the first half of the New Year.” 


December 2023 summary


Residential sales in the region totalled 1,345 in December 2023, a 3.2 per cent increase from the 1,303 sales recorded in December 2022. This was 36.4 per cent below the 10-year seasonal average (2,114). 


There were 1,327 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in December 2023. This represents a 9.9 per cent increase compared to the 1,208 properties listed in December 2022. This was 22.7 per cent below the 10-year seasonal average (1,716). 


Across all detached, attached and apartment property types, the sales-to-active listings ratio for December 2023 is 16 per cent. By property type, the ratio is 11.1 per cent for detached homes, 18.7 per cent for attached, and 19.6 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. 


Sales of detached homes in December 2023 reached 376, a 1.3 per cent increase from the 371 detached sales recorded in December 2022. The benchmark price for a detached home is $1,964,400. This represents a 7.7 per cent increase from December 2022 and a 0.9 per cent decrease compared to November 2023. 


Sales of apartment homes reached 719 in December 2023, a 2.4 per cent increase compared to the 702 sales in December 2022. The benchmark price of an apartment home is $751,300. This represents a 5.6 per cent increase from December 2022 and a 1.5 per cent decrease compared to November 2023. 


Attached home sales in December 2023 totalled 238, a 7.2 per cent increase compared to the 222 sales in December 2022. The benchmark price of a townhouse is $1,072,700. This represents a 6.4 per cent increase from December 2022 and a 1.8 per cent decrease compared to November 2023. 


Download the December 2023 stats package.

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Metro Vancouver housing market shows resilience in 2023, ending the year in balanced territory

Metro Vancouver housing market shows resilience in 2023, ending the year in balanced territory


Metro Vancouver’s housing market closed out 2023 with balanced market conditions, but the year-end totals mask a story of surprising resilience in the face of the highest borrowing costs seen in over a decade. 


The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totalled 26,249 in 2023, a 10.3 per cent decrease from the 29,261 sales recorded in 2022, and a 41.5 per cent decrease from the 44,884 sales in 2021. 
Last year’s sales total was 23.4 per cent below the 10-year annual sales average (34,272). 


“You could miss it by just looking at the year-end totals, but 2023 was a strong year for the Metro Vancouver housing market considering that mortgage rates were the highest they’ve been in over a decade,” Andrew Lis, REBGV’s director of economics and data analytics said. “In our 2023 forecast, we called for modest price increases throughout the year while most other forecasters were predicting price declines. The fact that we ended the year with five-per-cent-plus gains in home prices across all market segments demonstrates that Metro Vancouver remains an attractive and desirable destination, and elevated borrowing costs alone aren’t enough to dissuade buyers determined to get into this market.” 


Properties listed on the Multiple Listing Service® (MLS®) in Metro Vancouver totalled 50,893 in 2023. This represents a 7.5 per cent decrease compared to the 55,047 properties listed in 2022. This was 20.2 per cent below the 63,761 properties listed in 2021. 


The total number of properties listed last year was 10.5 per cent below the region’s 10-year total annual average of (56,868). 


Currently, the total number of homes listed for sale on the MLS® system in Metro Vancouver is 8,802, a 13 per cent increase compared to December 2022 (7,791). This is 0.3 per cent above the 10-year seasonal average (8,772). 


The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,168,700. This represents a five per cent increase over December 2022 and a 1.4 per cent decrease compared to November 2023. 


“Ultimately, the story of 2023 is one of too few homes available relative to the pool of willing and qualified buyers,” Lis said. “Sellers were reluctant to list their properties early in the year, which led to fewer sales than usual coming out of the gate. But this also led to near record-low inventory levels in the spring, which put upward pressure on prices as buyers competed for the scarce few homes available.”

 
“Looking back on the year, it’s hard not to wonder how we’d be closing out 2023 if mortgage rates had been a few per cent lower than they were. And it looks like we might get some insight into that question in 2024, as bond markets and professional forecasters are projecting lower borrowing costs are likely to come, with modest rate cuts expected in the first half of the New Year.” 


December 2023 summary


Residential sales in the region totalled 1,345 in December 2023, a 3.2 per cent increase from the 1,303 sales recorded in December 2022. This was 36.4 per cent below the 10-year seasonal average (2,114). 


There were 1,327 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in December 2023. This represents a 9.9 per cent increase compared to the 1,208 properties listed in December 2022. This was 22.7 per cent below the 10-year seasonal average (1,716). 


Across all detached, attached and apartment property types, the sales-to-active listings ratio for December 2023 is 16 per cent. By property type, the ratio is 11.1 per cent for detached homes, 18.7 per cent for attached, and 19.6 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. 


Sales of detached homes in December 2023 reached 376, a 1.3 per cent increase from the 371 detached sales recorded in December 2022. The benchmark price for a detached home is $1,964,400. This represents a 7.7 per cent increase from December 2022 and a 0.9 per cent decrease compared to November 2023. 


Sales of apartment homes reached 719 in December 2023, a 2.4 per cent increase compared to the 702 sales in December 2022. The benchmark price of an apartment home is $751,300. This represents a 5.6 per cent increase from December 2022 and a 1.5 per cent decrease compared to November 2023. 


Attached home sales in December 2023 totalled 238, a 7.2 per cent increase compared to the 222 sales in December 2022. The benchmark price of a townhouse is $1,072,700. This represents a 6.4 per cent increase from December 2022 and a 1.8 per cent decrease compared to November 2023. 


Download the December 2023 stats package.

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What’s the “Emotional” Return on Investment of a New Home?
Chances are, you’ve heard the expression, “Your home is your biggest investment.” For most homeowners, that’s true. So, when you’re shopping for a new home, it’s important to consider the financial opportunity of any purchase. Ideally, you want a home that is likely to increase in value over time.

In other words, you want a home with a strong potential return on investment.

But dollars aren’t the only type of return you should look for in a new home. Real estate is unique in that the “emotional” return is just as important as the financial return — and, in some cases, even more so.

Say, for example, you’re thinking of moving to a neighbourhood that is closer to work. In fact, you’ll cut your commuting time by an hour each day. Financially, that return on investment means little beyond some savings on gas. However, the emotional payoff can be very high, especially when you consider what you can do with that extra hour each day. Imagine what it would mean to spend more time with your kids or workout out at the gym more often.

So, considering the emotional return on investment when you’re moving is essential. It has a huge impact on your lifestyle and your enjoyment of the property.

How do you factor that in when selling your property and searching for your next dream home?

When you see a listed home you like, make a list of all the emotional benefits of living there. That list might include having a park nearby, living closer to friends or family, having a home office that isn’t the kitchen table, having more space to accommodate a growing family, and so forth.

Then, factor that list into your decision of whether or not to buy.

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 Should You Worry about Competing Listings?

Imagine you’ve been waiting for the right moment to sell your home and you’re finally ready to list it. But, just as you’re about to put up the sign, you notice that a few other FOR SALE signs have unexpectedly popped up in the neighbourhood.

Oh no! Now there are competing listings. Does that mean you should put your plan to sell your property on hold?

Not necessarily.

Just because comparable homes are for sale in the area doesn’t mean it’s not a good time to make your move. In fact, even if there is a sharp increase in local listings, active buyers might still outnumber properties available.

In that scenario, you’d likely get several interested buyers.

And, even if it’s a buyer’s market, this might still be the ideal time to sell, especially if your home has desirable features buyers want. You may even have an advantage over other listings on the market.

In addition, a large part of a successful sale is in how a property is marketed and promoted. With effective marketing, your home is more likely to be noticed by the right type of buyers... buyers who are actively looking for a property like yours.

So, waiting for the perfect moment to sell your home rarely makes sense. In most cases, the best time to list is now.
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 Open House Questions Some Buyers Forget to Ask
An Open House is an event. And, like many events, it’s easy to get caught up in all the excitement and energy. In fact, when you visit an Open House, you might even end up rubbing elbows with other buyers who are there at the same time. It can feel like a party!

In an environment like that, it’s not unusual to forget to ask important questions about the property. Here are some of the most common:

  • How old is the roof?
  • How old is the furnace, air conditioner and other HVAC equipment?
  • How does the price compare to similar properties in the neighbourhood?
  • What are the characteristics of the neighbourhood? (Amenities, safety, traffic, access to public transit, property turnover, etc.)
  • What doesn’t come with the home? (Ask specifically about kitchen appliances, gas-connected BBQs, chandeliers, window coverings.)
  • Are there any potential impediments to the sale? (Tenants, outstanding liens, etc.)
  • Are there any outstanding maintenance issues, or repairs that need to be done? (For example, cracked ceramics on the foyer floor. 
  • Are there any issues that impact the full use of the property? (Ask specifically about shared driveways or walkways, public “right of way” through the property, water drainage rights from neighbouring homes, etc.)

Yes, an Open House can feel like a frenzy, and if it’s a home you love, you might feel pressured to make an offer. But, it’s important to take the time to ask the right questions and consider your decision carefully. You don’t want to find out, too late, that there were questions you should have asked.

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3 ways to re-organize your household budget on the fly

No matter how detailed your monthly budget may be, the key to managing your money is flexibility. All you need to do is look at your winter utilities bill for evidence that expenses change with the season! But with these helpful tips, you’ll be poised to adjust your budget on the fly, navigating any unexpected increases (or savings) with ease.

1. Hold monthly budget meetings

If you’ve been budgeting for a while, you’ll know that accountability and routine are key to reaching your goals. Setting aside time each month to go over your budget will help you see where your money is going and allow opportunities to make adjustments as needed for upcoming expenses.

2. Add a ‘miscellaneous’ line to your budget

Another way to prepare for the unexpected is to put a small amount of money aside for unexpected expenses throughout the month. Label this as your miscellaneous line in your budget. That way when something comes up, you can cover it without taking away money you’ve already put somewhere else.

3. Set up automatic deposits to your savings

The best way to prepare for unexpected costs is to have an emergency fund. It's recommended to have 3-6 months' worth of expenses saved in your emergency fund to cover your monthly costs. Setting up monthly automatic deposits to your savings accounts will hold you accountable to your savings goals and ensure you have enough (and more) should the worst happen.

Managing your finances doesn’t have to be hard. If you’re looking for market insights or more financial advice, head over to the Royal LePage blog:

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Royal LePage’s 2024 Market Survey Forecast

The ‘great adjustment’: Canadians to adapt to new reality as housing market returns to near-normal in 2024

Royal LePage predicts minor interest rate cuts to fuel national aggregate home price increase of 5.5% year over year in fourth quarter of 2024

Highlights:

  • Nationally, single-family detached and condominium prices forecasted to increase 6.0% and 5.0%, respectively, year over year in Q4 of 2024
  • Home prices are expected to show greatest increases in second half of 2024
  • Calgary aggregate home price projected to see greatest gains of all major markets at 8.0%
  • Aggregate price of a home in the greater regions of Toronto and Montreal are forecast to end next year 6.0% and 5.0% respectively above the final quarter of 2023, while Greater Vancouver is expected to see a more modest increase of 3.0%
  • Royal LePage forecast based on expectation that Bank of Canada will hold rates steady through first half of next year, and begin modestly easing rates in late summer or fall

TORONTO, December 14, 2023 – After years of unprecedented irregularity, Canadians may see the real estate market return closer to normal in 2024. According to the Royal LePage Market Survey Forecast, the aggregate[1] price of a home in Canada is set to increase 5.5 per cent year over year to $843,684 in the fourth quarter of 2024, with the median price of a single-family detached property and condominium projected to increase 6.0 per cent and 5.0 to $879,164 and $616,140, respectively.[2]

“Looking ahead, we see 2024 as an important tipping point for the national economy as the majority of Canadians acknowledge that the ultra-low interest rate era is dead and gone,” said Phil Soper, President and CEO, Royal LePage. “We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of Canada.”

Home prices are expected to rise next year in all major markets across the country, with Calgary forecast to see the greatest gains. Throughout the second half of 2023, while prices have been declining in other cities, the Calgary real estate market has bucked the trend continuing on an upward price trajectory.

Royal LePage’s forecast is based on the prediction that the Bank of Canada has concluded its interest rate hike campaign and that the key lending rate will hold steady at five per cent through the first half of 2024. The central bank is expected to start making modest cuts in late summer or fall of next year. Meanwhile, several major financial institutions have already begun offering discounts on fixed-rate mortgages.

“For the last year, many Canadians have been fixated on the idea of interest rates needing to come down significantly before they can afford to enter or re-enter the housing market. Acceptance that a mortgage rate of four to five per cent is the new normal should untether pent-up demand as first-time buyers, flush with savings collected during the extended down market in housing, regain the confidence to go home shopping. And, with the return of first-timer demand, we expect families who have put off upgrading their homes to begin to list their properties in much greater numbers,” continued Soper.

How we got here

Over the last eighteen months, sales activity in most of Canada’s major real estate markets has been on the decline, while inventory levels have gradually increased. While transactions are down as much as 20 or 30 per cent in some regions, home prices have only declined modestly during this time, due to a simultaneous drop in demand as buyer hopefuls continue to hold out for lower interest rates. Still, prices remain above 2022 levels.

“Canada’s real estate market has been on a roller coaster ride for the last four years. A global pandemic briefly brought market activity to a grinding halt in early 2020, followed by a rapid, widespread spike in demand and price appreciation as Canadians sought safety and greater living space in their homes among a world of uncertainty. By the spring of 2022, home prices had reached unprecedented highs, but when interest rates started rising quickly and steeply to combat inflation, the extended market correction began,” said Soper. “Markets take time to adjust. We see a move toward typical home sale transaction levels in 2024, and as the year progresses, appreciating house prices.”

Quarterly forecast

Nationally, home prices are forecast to see modest quarterly gains in the first two quarters of 2024, with more considerable increases expected in the second half of the year, following the anticipated start of interest rate cuts by the Bank of Canada. The aggregate price of a home in Canada is forecast to be 3.3 per cent higher in Q1 of 2024 compared to the same quarter in 2023, reflecting a 0.5 per cent increase over the fourth quarter of 2023. In the second quarter of next year, the national aggregate home price is forecast to be 0.2 per cent higher year over year and 0.9 per cent above the previous quarter. In the third quarter, home prices are expected to be 3.3 per cent higher year over year and 2.3 per cent higher on a quarterly basis. And, in the fourth quarter of 2024, the national aggregate price of a home is expected to land 5.5 per cent above the same quarter in 2023, an increase of 1.7 per cent quarter over quarter. Based on this forecast, by the end of next year, home prices will have essentially climbed back to their pandemic peak, reached in the first quarter of 2022.

Supply shortage and affordability challenges

Canada continues to struggle with a chronic housing supply shortage. According to the Canada Mortgage and Housing Corporation, the country needs about 3.5 million additional housing units by 2030 to restore affordability, with the greatest need concentrated in the provinces of Ontario and British Columbia.[3] At the current pace of housing construction and considering the rate of new household formation and immigration projections, inventory will remain out of step with projected demand for years to come.

“For many years, condominiums have offered an affordable opportunity for entry onto the real estate ladder, in addition to their ‘lock and leave’ lifestyle that is typically attractive to young people. Of late, however, this segment of the market has also become out of financial reach for many in major cities like Toronto and Vancouver, where new construction cannot keep pace with growing demand. And, the elevated cost of construction materials and labour are adding additional pressure on builders,” said Soper. “What’s more, with ultra-low vacancy rates, the rental market is not the escape route many would-be buyers hope it could be, with monthly lease rates on the rise from coast to coast.”

Competing public policy objectives

In the federal government’s Fall Economic Statement released last month, billions of dollars were committed and reaffirmed towards increased levels of new housing construction. This includes favourable loan agreements and tax benefits for developers of purpose-built rental buildings and public housing projects, as well as financial assistance for municipalities to crack down on short-term rentals in an effort to push more supply onto the resale market in urban centres.[4]

“It is encouraging to see policy makers tackling Canada’s housing affordability issues and supply shortfall, yet there remains a large accessibility gap for first-time buyers and middle-income earners. Those that have salaries or wages that have not kept up with the cost of living find it difficult to achieve the dream of home ownership. Thankfully, many have received financial help from family or friends, yet this is not something Canadians should have to rely upon,” said Soper. “With competing policy objectives – record-high immigration to combat labour shortages, for example – I see little hope that housing construction will meet that need this decade. The demand/supply imbalance will put further upward pressure on home prices.

“While uncomfortably expensive housing in our major markets is inevitable, it is imperative that governments adopt quick and extraordinary measures to mitigate affordability challenges and address the housing supply crisis,” concluded Soper.

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast

 

MARKET SUMMARIES

Greater Toronto Area

In the Greater Toronto Area, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 6.0 per cent year over year to $1,198,012. During the same period, the median price of a single-family detached property is expected to rise 7.0 per cent to $1,481,950, while the median price of a condominium is forecast to increase 5.0 per cent to $754,845.

“There is a lot of uncertainty surrounding Canada’s economy and the real estate market these days, and that is especially true in the major centres like Toronto. What is certain is that Canadians need housing, they value home ownership and most are willing to prioritize buying a home over just about anything else,” said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd. “We know there are still buyers on the sidelines waiting for interest rates to come down. What is unclear is how many can afford to jump back into the market at the first sign of a reduction, and how many truly cannot afford to transact in this environment.”

Yolevski added that a lot of future activity will be dependent not only on reduced interest rates, but the timing of mortgage renewals. Many would-be move-up buyers who have enjoyed ultra-low rates for the past few years will be willing to make a move as their current loan terms expire. No longer bound to their current property because of the interest rate, more of these owners will put their properties on the market and begin their search for a new home.

“The GTA is Canada’s most densely-populated region and continues to be the top destination for newcomers. Despite a temporary drop in sales, there remains a huge gap in the number of homes available and those needed to satisfy demand from middle-income earners. This continues to put significant pressure on the already-tight rental market.”

Yolevski also noted that investor-owned properties, namely condominiums, could add supply to the market over the next year or two, as mortgages come up for renewal and owners choose to sell rather than renew at a higher rate.

“If tenanted properties are not producing positive cash-flow, investors may choose to sell rather than renew their mortgages in this higher-cost borrowing environment. This, in addition to new legislation that incentivizes the development of purpose-built rental properties, could add some much-needed inventory to the entry-level market,” said Yolevski. “It will not be enough, however, to put downward pressure on prices.”

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast

Greater Montreal Area 

In the Greater Montreal Area, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 5.0 per cent year over year to $610,260. During the same period, the median price of a single-family detached property is expected to rise 4.5 per cent to $684,998, while the median price of a condominium is forecast to increase 6.0 per cent to $471,912.

“The real estate crystal ball prediction will be made up of many factors in 2024, but the thing to remember is that the reduction in inflation closer to the target rate will not have been enough to curb the increase in real estate prices for very long, due to a chronic lack of supply,” said Dominic St-Pierre, vice-president and general manager, Royal LePage, Quebec region. “Housing is an essential need, and the still-critical shortage of units required to meet demand and population growth is destined to persist, as long as investments by all levels of government fail to materialize in the urban landscape. However, even if interest rates are expected to start dipping next year, consumers will have to adapt to a new reality, as the days of ultra-low rates are over. In the short term, this should keep property price increases in check while households adjust their purchasing behaviours.”

In its fall economic update, the Quebec government pledged $1.8 billion over five years to improve access to housing in the province.[5] This investment will include actions to accelerate the construction of affordable housing, as well as assistance to municipalities in the form of increased flexibility in urban planning bylaws, measures to facilitate the construction of secondary suites, and support for the training of the construction workforce.

“We welcome any initiative aimed at reducing the gap between supply and demand, and applaud the creativity of the various levels of government in multiplying solutions,” said St-Pierre. “However, the challenge is massive, since Quebec requires the addition of more than 1.2 million units by the end of the decade in order to regain some semblance of affordability.”

What’s more, Montreal is the Canadian city where housing starts fell the most in the first six months of 2023, a 26-year record, and the prognosis for 2024 is not optimal.[6] Rising borrowing costs have taken a heavy toll on builders’ and developers’ portfolios over the past year. For this reason, it is expected that when interest rates start to decline, the pent-up demand will unleash on the condominium segment in the Greater Montreal Area, which will see an appreciation rate slightly higher than that of single-family homes.

“In addition to condominiums, the market for single-family homes priced at $1 million and higher should also see an upturn as expectations of lower interest rates materialize,” said Marc Lefrançois, chartered real estate broker, Royal LePage Tendance in Montreal. “For this category of buyers, moving from one property to another is often not an immediate necessity. Many have therefore preferred to wait in order to take advantage of more favourable financing conditions, but could return to the market quickly when the central bank announces the start of a downward cycle in interest rates.”

Economic conditions in the province were heavily weighed down at the end of the year by the outbreak of strikes in the public sector, as well as numerous layoffs across a myriad of industries, which could influence consumer confidence regarding large purchases such as a property in 2024, despite a widely expected drop in interest rates.

“Savings accumulated by households during the pandemic have begun to run out, keeping pace with inflation and interest rate hikes over the past 21 months,” noted St-Pierre. “Quebec households have a high level of debt, and despite signs of relief in borrowing costs on the horizon, their purchasing power will remain limited. The downward adjustment of the Bank of Canada’s overnight rate, even by a quarter per cent, could send a strong message to consumers about future economic conditions. The pace at which interest rates rebalance will also play a big part in the equation,” he continued.

St-Pierre added, “The start of 2024 could see the Greater Montreal Area’s real estate market get off to a slow start, following a similar trend to the last quarter of 2023. But, we expect the recovery to get underway quickly once interest rates start to fall. Next year is likely to be more active than 2023 in terms of property sales,” he concluded.

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast 

Greater Vancouver

In Greater Vancouver, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 3.0 per cent year over year to $1,281,732. During the same period, the median price of a single-family detached property is expected to rise 2.5 per cent to $1,778,785, while the median price of a condominium is forecast to increase 4.0 per cent to $795,808.

“Activity has slowed in recent months allowing some inventory to build, as buyers hold out for a deal or for interest rates to drop, and sellers continue to expect 2021 values for their homes. While this has resulted in a market slowdown, Greater Vancouver could see a brisk spring if interest rates remain steady or dip even a little,” said Randy Ryalls, managing broker, Royal LePage Sterling Realty. “There is still plenty of demand waiting in the wings, and a glimmer of light at the end of the tunnel could easily heat up the market again. Some buyers will rush to transact before the competition gets too tight. Others will wait for multiple rate cuts.”

Ryalls noted that while many sidelined buyers are likely to jump back into the market next year if lending rates come down, competition will not be as aggressive as it was two years ago when borrowing costs sat at record lows.

“Purchasing power has been deflated. With the rising cost of living and interest rates five or six times higher than they were a few years ago, buyers have less capacity to outbid their competitors. This will keep a lid on price appreciation, even as activity picks up,” said Ryalls. “Some banks have already begun to offer discounts on fixed-rate mortgages, incentivizing some buyers back to the table. Eventually, everyone will have to adjust to the new realities of the market.”

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast

Ottawa

In Ottawa, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 4.5 per cent year over year to $771,942. During the same period, the median price of a single-family detached property is expected to rise 4.0 per cent to $884,000, while the median price of condominium is forecast to increase 5.0 per cent to $407,190.

“The Ottawa market is heavily influenced by interest rates. Even if we see only a modest decrease in rates by the Bank of Canada mid-way through 2024, this move could spark a flurry of buying activity leading into our late summer and early fall market,” said Jason Ralph, broker of record, Royal LePage Team Realty. “These days, only those homeowners who must move for personal reasons are listing their homes. In many cases, those with the luxury of time are staying on the sidelines, waiting for interest rates to come down. This is creating pent-up buyer demand, especially in the always desirable single-family detached segment.”

Ralph noted that many first-time homebuyers have been renting as they wait for lower interest rates and improved purchasing power. This is creating a competitive rental market, especially as newcomers relocate to Ottawa for opportunities in the city’s thriving public service job market, adding to the already high levels of renter demand.

“Though we have returned to a more normalized market post-pandemic, we are not quite in balanced territory yet as demand continues to outweigh supply. As a result, we are expecting a brisk spring market next year,” said Ralph. “Should we see a drop in interest rates, market activity will intensify, resulting in an incline in home prices in the later months of the year and into 2025.” 

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast 

Calgary

In Calgary, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 8.0 per cent year over year to $711,612, the highest of all forecast regions. During the same period, the median price of a single-family detached property is expected to rise 6.0 per cent to $803,692, while the median price of a condominium is forecast to increase 9.5 per cent to $286,562.

“Although activity has slowed in Calgary, home prices have not dipped like they have in other cities across Canada, due to a sustained shortage of supply,” said Corinne Lyall, broker and owner, Royal LePage Benchmark. “If rates start to come down in the second half of 2024 – as they are predicted to do – it will motivate buyers to jump into the market as their borrowing power improves. Many homeowners will see their mortgages come up for renewal next year, and will be forced to take a higher interest rate. This may push some more inventory onto the market, as overleveraged borrowers downsize in an effort to get some relief from higher monthly payments.”

Lyall noted that Calgary has seen a slowdown in the number of interprovincial buyers relocating to the city compared to the past few years. However, investors from other provinces continue to look for real estate opportunities in the Prairies, driving demand in the multi-family segment.

“We expect that home prices will rise over the next year, and will outperform other major cities as Calgary’s relative affordability continues to attract buyers to the city. A shortage of supply remains a challenge, which will keep prices on an upward trajectory for the foreseeable future as buyers compete for the few homes available,” said Lyall. “Heading into the new year, I predict that we will see a slow start to the market in January and February, a similar pattern to what we saw in early 2023. Once March arrives, buyers and sellers will move off of the sidelines as a brisk spring market begins and consumer confidence strengthens.”

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast 

Edmonton

In Edmonton, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 4.0 per cent year over year to $443,248. During the same period, the median price of a single-family detached property is expected to rise 7.0 per cent to $493,805, while the median price of a condominium is forecast to increase 2.0 per cent to $192,678.

“Next year, we expect similar activity to this year, but home values will likely increase as price appreciation falls in line with historical trends. Edmonton continues to experience a shortage of homes relative to demand, which will keep home prices trending upward in 2024. This will only be intensified by the number of residents moving into the city, searching for affordability and work opportunities,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. “We continue to see a gap between buyer expectations and the reality of how far their dollar will stretch. Until they feel that they’re getting their money’s worth, some buyers will continue to wait on the sidelines, building further pent-up demand.”

Shearer noted that Edmonton home prices are largely tied to the oil and gas sector, which continues to be a major driver of employment opportunities. Edmonton has seen a surge in newcomers over the past few years, in addition to Canadians moving to Alberta from other provinces – namely Ontario and British Columbia.

“The city’s fast-growing population has put upward pressure on home prices,” said Shearer. “In recent years, the province has seen a notable surge in activity and home prices in the city of Calgary, and we believe similar trends are on the horizon for Edmonton.”

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast 

Halifax

In Halifax, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 3.0 per cent year over year to $521,592. During the same period, the median price of a single-family detached property is expected to rise 5.0 per cent to $602,490, while the median price of a condominium is forecast to increase 1.5 per cent to $431,375.

“Looking ahead to the 2024 housing market in Halifax, we are feeling quite positive. It is likely that interest rates will be reduced mid-year, which will cause some hesitant or sidelined buyers to jump back into the market,” said Matt Honsberger, broker and owner, Royal LePage Atlantic. “Those in the rental market – who are currently paying higher-than-normal prices due to tight competition in this segment – will be especially motivated to transition into home ownership. Many move-up buyers, who have patiently been biding their time until borrowing rates improve or their mortgages come up for renewal, are also expected to re-enter the market in the new year.”

Honsberger noted that investors from Ontario and Alberta are an active buyer group in Nova Scotia. This demand is not exclusive to the investor-friendly condominium segment, but is also present in the single-family and new construction markets as well, despite the non-resident tax applicable to all transactions by out-of-province buyers.

“Though we will experience the typical seasonal slowdown in the first weeks of the new year, I expect January will still be up in terms of prices and activity compared to the same time this year. Sales are likely to begin increasing in February and March, as more inventory comes online. And, if we see one or two rate cuts in the fall, a boost of activity will follow,” said Honsberger.

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast 

Winnipeg

In Winnipeg, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 3.0 per cent year over year to $396,447. During the same period, the median price of a single-family detached property is expected to rise 4.0 per cent to $440,232, while the median price of a condominium is forecast to increase 2.0 per cent to $263,568.

“Every year, the Winnipeg real estate market follows a similar pattern – slow through the winter months with a rise in activity in the spring, followed by a quieter summer and then a slow decline for the remainder of the year. We expect 2024 will look much like a typical year, resulting in modest price increases as consumer confidence strengthens,” said Michael Froese, broker and manager, Royal LePage Prime Real Estate. “Single-family detached homes will likely see the majority of next year’s price growth, especially in the highly-sought-after $300,000 to $400,000 price range.”

Froese added that he is not overly concerned that the expected wave of upcoming mortgage renewals will force many homeowners to have to list their homes due to higher monthly costs.

“As has always been the case, Canadians value home ownership. When faced with financial strain, most people will cut back on discretionary spending and make other concessions before resorting to selling their homes,” he added. “While it may not be as strong of a seller’s market as it was two years ago, prices are anticipated to remain buoyant as buyer demand is expected to continue outweighing available home supply, even in the slower months.”

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast 

Regina

In Regina, the aggregate price of a home in the fourth quarter of 2024 is forecast to increase 3.0 per cent year over year to $381,306. During the same period, the median price of a single-family detached property is expected to rise 4.0 per cent to $417,456, while the median price of a condominium is forecast to increase 2.5 per cent to $228,063.

“Like many cities across Canada, higher interest rates have prompted buyers to hit pause as their borrowing capacity has diminished. As a result, demand is building on the sidelines as consumers wait anxiously for borrowing costs to come down,” said Shaheen Zareh, sales representative, Royal LePage Regina Realty. “Although it is highly unlikely we will see rates as low as one or two per cent again – at least not anytime soon – I do believe some of that sidelined demand will re-enter the market once rates are cut, even if only by a small amount.”

Zareh added that rental prices have climbed in Regina as higher mortgage rates have kept would-be buyers in leased properties for longer. This has constrained rental supply and pushed prices up, making the cost of monthly rent comparable to a mortgage payment in some cases.

“Overall, supply remains constrained. I expect prices will see a modest increase in 2024, not only in the detached segment but in the condo market as well. There has been a lot of activity in the condominium segment as of late, despite the property type not being particularly popular in the region, historically. We have seen an uptick in condo sales thanks to first-time buyers who are seeking a more affordable option that will allow them to get a foot on the property ladder sooner.” said Zareh. “Many young buyers would much prefer a new condo for $200,000 over a detached fixer-upper that costs $100,000 more.”

Zareh noted that many short-term pandemic-era mortgages are expected to come up for renewal next year, which could have an impact on supply as homeowners weigh the decision to renew or sell their homes and downsize into a more financially manageable property.

Royal LePage 2024 Market Survey Forecast Table: rlp.ca/table_2024forecast

Royal LePage 2024 Quarterly Forecast Table: rlp.ca/table_2024quarterlyforecast


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About the Royal LePage Market Survey Forecast

The Royal LePage Market Survey Forecast provides year-over-year and quarter-over-quarter price expectations nationally and for Canada’s nine most prominent real estate markets. Housing values are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Additionally, commentary on housing market trends and data on price and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.

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