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Canada’s Real Estate Bracing for Historic Price Plunge: RBC Canada’s biggest bank, RBC, believes that the country’s real estate market is going to experience a significant drop. They had previously mentioned that they were going to revise their predictions, and now they’ve officially confirmed it. According to the bank, this drop will be more significant than what they had initially anticipated. They are now expecting the largest decrease in both home sales and prices in Canadian history. But they want to reassure everyone that there’s no need to panic; they see this as a positive change after the last two years. What’s Causing This Drop? The Canadian real estate market is facing some challenges because of rising inflation rates. This is causing interest rates to go up. These higher rates are expected to cool down the housing market more quickly. By October, RBC predicts that the overnight interest rate will reach 3.25%, a level not seen in over a decade. This will make borrowing money more expensive and close the gap between fixed and variable interest rates. A “Historic Correction” Is Happening: RBC is describing the current situation as a “historic correction” and has adjusted its earlier forecasts accordingly. Home sales have already dropped by 13% compared to last year, and RBC expects another 17% drop by early next year. Overall, they anticipate a 42% decline in home sales from the peak to the trough by early 2023. This would be a more significant decline than in any other historical period. Biggest Price Drop Ever The decrease in home sales is expected to lead to a substantial drop in home prices. More homes are becoming available for sale while the number of actual sales is declining. RBC’s assistant chief economist, Robert Hogue, says that with weakening demand and affordability problems in some parts of the country, prices will have to come down. RBC predicts a 12.4% drop in home prices by next year, a significant shift from the 4% growth they were forecasting earlier in the year. While this may not sound like much, it would be the most substantial price drop ever seen on a national scale. Impacts on British Columbia and Ontario British Columbia and Ontario are expected to be hit the hardest. RBC is forecasting a 14% drop in the housing price index aggregates for these provinces. Hogue mentions that while this downturn may be comparable to the one in Ontario in the early 1990s, it won’t be as severe as the early 1980s episode in British Columbia. A Positive Development RBC wants to emphasize that this is a correction and not a crash, and it could lead to a healthier economy. They believe that this downturn is a welcome cooldown following a two-year frenzy in the housing market. It’s seen as a positive change to relieve the financial burden on many new homeowners and make it easier for people to achieve their dreams of homeownership. They expect this correction to last approximately a year, with some housing markets stabilizing faster than others, hopefully by the first half of 2023. Related posts 03 September 2023 Canada’s Real Estate Bracing for Historic Price Plunge: RBC 29 August 2023 Ontario’s Closing Process: A Comprehensive Guide Ontario’s Closing Process: A Comprehensive Guide Welcome… 29 August 2023 Tips on Navigating the Real Estate Closing Process in Ontario Tips on Navigating the Real Estate Closing Process in Ontario Embarking on the journey to own your dream… 29 August 2023 FAQs: Navigating the Real Estate Closing Process in Ontario FAQs: Navigating the Real Estate Closing Process in Ontario What’s the difference between a deposit… 23 August 2023 Deposit protection lowers homebuying stress Deposit protection lowers homebuying stress When you put down… 17 August 2023 What is the First Savings Account for your home? What is the First Savings Account for your home? Canadians are breathing a sigh of relief as inflation… 16 August 2023 BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline…

    Ontario’s Closing Process: A Comprehensive Guide Welcome to a comprehensive guide on the intricacies of the real estate closing process. Whether you’re a first-time homebuyer in Ontario or someone looking to gain a deeper understanding of the final stages of a property transaction, this guide will walk you through the essential steps involved in closing a real estate deal. From the initial offer to the moment you receive the keys to your new property, we’ll explore each crucial aspect of the closing process. With a focus on the Ontario context, we’ll delve into subtopics such as deposits and escrow, contingencies and conditions, title searches, and insurance, closing costs breakdown, adjustments and prorations, and much more. Let’s begin our journey through the fascinating world of real estate closings in Ontario. Steps for Real Estate Closing Process Unveiling the Power of Deposits: Your Key to a Successful Closing The deposit, a sign of good faith from the buyer, plays a crucial role in the closing process. This section will delve into how the deposit is held in escrow, safeguarding the interests of both parties. We’ll discuss the significance of the deposit in demonstrating the buyer’s commitment, potential disputes that could arise. Furthermore, the conditions under which the deposit might be forfeited or returned. Deal or No Deal: The Power of Conditions in Your Closing Arsenal Navigating contingencies and conditions is a pivotal part of the closing process. In this section, we’ll explore the various contingencies commonly included in purchase agreements, such as financing, inspections, and appraisal. We’ll highlight their role in providing buyers with an exit route should certain conditions not be met and delve into how careful negotiation and fulfillment of these conditions contribute to a successful closing. Peace of Mind and Property: Why Title Insurance is a Must for Closings The process of transferring ownership isn’t complete without ensuring a clear title. This section will illuminate the critical step of conducting a title search to uncover any potential title issues. We’ll also delve into the concept of title insurance, how it safeguards buyers and sellers against unforeseen title-related problems, and why it’s an essential aspect of a secure closing process. Countdown to Closing: Decoding the Dollars in Closing Costs Closing costs encompass a range of expenses that both buyers and sellers should be aware of. In this section, we’ll break down these costs, including land transfer tax, legal fees, and other miscellaneous charges. By understanding the financial obligations associated with closing, you’ll be better prepared to budget effectively and avoid any surprises as the closing date approaches. Fair Play at Closing: The Dance of Adjustments and Prorations As the closing date nears, adjustments are necessary to ensure a fair distribution of costs between the buyer and seller. This section will outline how adjustments are calculated for property taxes, utilities, and other ongoing expenses. We’ll shed light on the importance of transparency and cooperation in making these adjustments, contributing to a harmonious closing experience. Keys to Confidence: Your Ultimate Final Walk-Through Checklist Before the final exchange, conducting a thorough walk-through of the property is crucial. This section will provide you with a comprehensive checklist of items to review during this critical step. From ensuring that agreed-upon repairs have been made to confirming the property’s condition, this checklist will empower you to confidently finalize the transaction. Closing Champions: How Agents Transform Transactions into Triumphs Real estate agents play a pivotal role in guiding buyers and sellers through the closing process. In this section, we’ll explore how agents assist in negotiations, facilitate communication between parties, and ensure that the transaction progresses smoothly. Understanding the role of agents can lead to a more seamless and less stressful closing experience. Legal Safeguards: Mastering the Art of Secure and Sound Closings Closing involves a significant amount of legal documentation. This section will delve into the legal aspects of the process, including the role of lawyers in drafting and reviewing contracts, ensuring compliance with regulations, and overseeing the transfer of ownership. By grasping the legal intricacies, you’ll be better equipped to navigate the complex closing process. From Digits to Domicile: The Closing Day Timeline Unraveled The culmination of the process arrives on closing day. This section will outline the chronological sequence of events, from fund transfers to key exchanges and the transfer of possession. By understanding the timeline, you’ll be prepared for the final steps Sealing the Deal: The Land Registry Finale in Your Closing Epic The transfer of ownership is solidified through registration with the Land Registry Office. This section will explain the significance of this step, the documents involved, and the legal implications of officially transferring title. A clear understanding of the land registry process is essential for both buyers and sellers to ensure a valid and secure transaction. Tips for Smooth Closing In this section, we’ll provide you with practical tips for ensuring a smooth and successful closing process. From staying organized and communicating effectively to addressing potential challenges, these insights will help you navigate the complexities of closing with confidence. Post-Closing Responsibilities Even after the deal is closed, there are post-closing responsibilities that both buyers and sellers should be aware of. This section will outline tasks such as updating utility accounts, notifying relevant parties of the ownership change, and addressing any lingering concerns. Being proactive in addressing these responsibilities will contribute to a seamless transition into property ownership. Real-world Examples Deposit and Escrow: Imagine a scenario where a buyer in Ontario puts down a substantial deposit on a property they intend to purchase. However, due to unforeseen personal circumstances, they are unable to secure financing within the agreed-upon time frame. The deposit, held in escrow, becomes a pivotal point of negotiation between the buyer and seller. Through open communication and legal guidance, they navigate the complexities and eventually agree on whether the deposit will be returned or forfeited. This further highlights the importance of understanding deposit terms and contingencies. Contingencies and Conditions: In another situation, a prospective buyer includes a

Tips on Navigating the Real Estate Closing Process in Ontario Embarking on the journey to own your dream property in Ontario? This collection of practical tips is your key to conquering the real estate closing process with ease. From understanding deposit intricacies to mastering title insurance and legal aspects, we’ve got you covered. Discover how to navigate contingencies, collaborate transparently, and smoothly transition through each phase of closing. Whether you’re a seasoned buyer or a first-timer, these insights will empower you to confidently step into the world of real estate transactions, ensuring a successful and stress-free path to property ownership. Deposit and Escrow Understand deposit terms and conditions before committing. Be aware of potential contingencies that might affect your deposit. Contingencies and Conditions Include relevant contingencies to protect your interests. Fulfill conditions diligently and communicate any challenges. Title Search and Title Insurance Prioritize a thorough title search to uncover potential issues. Consider obtaining title insurance for added protection against unforeseen title-related problems. Closing Costs Breakdown Factor in all potential closing costs when budgeting for your purchase. Get estimates from professionals to anticipate accurate costs. Adjustments and Prorations Collaborate transparently with the other party to ensure fair adjustments. Keep track of all adjustments made to avoid misunderstandings. Final Walk-Through Checklist Conduct a thorough final walk-through to ensure the property’s condition meets expectations. Document any discrepancies and address them promptly with the seller. Role of Real Estate Agents Seek guidance from experienced real estate agents to navigate negotiations and processes. Leverage their expertise for a smoother closing journey. Legal Aspects of Closing Consult a lawyer familiar with real estate law to ensure all legal aspects are handled accurately. Review contracts and documents carefully before signing. Closing Day Timeline Be prepared for the sequence of events on closing day, including fund transfers and key exchanges. Communicate with all parties involved to ensure a seamless process. Land Registry and Transfer of Ownership Understand the land registry process and its significance for transferring ownership. Ensure all required documents are accurately prepared and submitted. Tips for Smooth Closing Stay organized and maintain clear communication with professionals and parties involved. Anticipate potential challenges and address them proactively. Post-Closing Responsibilities Complete post-closing tasks such as updating utilities and notifying relevant parties. Keep copies of all relevant documents for your records. Related posts 29 August 2023 Tips on Navigating the Real Estate Closing Process in Ontario Tips on Navigating the Real Estate Closing Process in Ontario Embarking on the journey to own your dream… 29 August 2023 FAQs: Navigating the Real Estate Closing Process in Ontario FAQs: Navigating the Real Estate Closing Process in Ontario What’s the difference between a deposit… 23 August 2023 Deposit protection lowers homebuying stress Deposit protection lowers homebuying stress When you put down… 17 August 2023 What is the First Savings Account for your home? What is the First Savings Account for your home? Canadians are breathing a sigh of relief as inflation… 16 August 2023 BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline… 11 August 2023 Most Canadians Still Can’t Buy a Home in Their City Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive,… 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,…

FAQs: Navigating the Real Estate Closing Process in Ontario What’s the difference between a deposit and down payment? While both involve money paid by the buyer, a deposit is a show of good faith during the offer stage, held in trust until closing process. A down payment, on the other hand, is a larger portion of the property’s price, paid at closing and contributing to the overall purchase. Can contingencies be waived? Yes, the buyer can waive contingencies if they’re confident about the property’s condition and their financing. However, waiving contingencies carries risks, so it’s crucial to carefully consider the decision and consult professionals. What happens if title issues are discovered after closing? If title issues arise after closing, title insurance can provide coverage and financial protection. It’s advisable to address title issues before closing, but having title insurance in place can offer peace of mind. Are closing costs fixed, or can they vary? Closing costs can vary based on factors like property price, location, and specific circumstances. It’s essential to get estimates from professionals to anticipate the total costs involved in your specific transaction. Can I request adjustments for improvements made to the property after the agreement is signed? Adjustments typically account for property expenses up to the closing date. Improvements made after the agreement is signed might not be factored into adjustments, so it’s important to negotiate such matters before finalizing the agreement. What if a seller doesn’t fulfill agreed-upon repairs before closing? If repairs aren’t completed as agreed, you can negotiate with the seller for remedies, such as a price reduction or holding a portion of the funds in escrow until the repairs are completed. Should I hire a real estate agent if I’m buying/selling in Ontario? While not mandatory, hiring a real estate agent can offer numerous benefits. They provide expertise, negotiation skills, and guidance through the complex closing process, making it smoother and less stressful. Do I need a lawyer for closing in Ontario? While Ontario doesn’t mandate lawyers for real estate transactions, having a lawyer can offer legal expertise, ensure accurate paperwork, and handle potential issues that might arise during the closing process How long does the closing day process usually take? Closing day processes can vary, but they generally involve the transfer of funds, exchange of keys, and signing of documents. Depending on various factors, the process might take a few hours to complete. What happens if there’s a delay in the closing process? Delays can happen due to unforeseen circumstances. If you’re encountering delays, ensure clear communication between all parties involved. Furthermore, work with your professionals to address and resolve any issues promptly. What post-closing tasks should I prioritize? After closing, tasks include updating utility accounts, notifying relevant parties of your ownership, and ensuring fulfillment of agreed-upon post-closing actions. Prioritize these tasks to smoothly transition into your new property. Related posts 29 August 2023 FAQs: Navigating the Real Estate Closing Process in Ontario FAQs: Navigating the Real Estate Closing Process in Ontario What’s the difference between a deposit… 23 August 2023 Deposit protection lowers homebuying stress Deposit protection lowers homebuying stress When you put down… 17 August 2023 What is the First Savings Account for your home? What is the First Savings Account for your home? Canadians are breathing a sigh of relief as inflation… 16 August 2023 BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline… 11 August 2023 Most Canadians Still Can’t Buy a Home in Their City Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive,… 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,… 04 August 2023 Understanding What Low Indoor Humidity Means for Your Home Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical…

    Deposit protection lowers homebuying stress When you put down a sizable deposit on a brand-new house or apartment, the choice becomes very real and the investment becomes very real, too. The cost of down payments has also climbed dramatically in recent years. Fortunately, Tarion, the organization in charge of Ontario’s new home warranty and protection plan, safeguards your deposit. Better even, this deposit protection has recently been enhanced, giving you extra security and peace of mind while you search for your ideal house. Learn about Ontario’s deposit insurance requirements below.  What is deposit protection?  If you make a down payment on a new house but cannot complete the purchase due to the builder’s bankruptcy or material violation of the purchase agreement, your deposit may be protected by a government agency. Even if situations like these don’t arise often, knowing you’re covered is comforting. Deposits are also protected if you cancel the sale due to a legal need. In the event that your builder does not or cannot repay your deposit, you may file a claim with Tarion.   Freehold property deposits Tarion will insure your deposit up to $40,000 if you closed on a freehold property before January 1, 2018. If you signed a purchase agreement on a property on or after January 1, 2018, the amount of your down payment insurance will be proportional to the price of the home you’re buying. If the purchase price of your new freehold house is $600,000 or less, for instance, you won’t have to worry about saving up the whole $60,000. You get a cover for 10% of the purchase price, up to a maximum of $100,000, if the price is greater than $600,000.  Condominium Security Deposits You may choose between two deposit protection levels when buying a condo. To begin, the Condominium Act mandates that condo developers hold all deposits in trust, guaranteeing the safety of your money. The developer has 10 days to reimburse your whole deposit in case of purchase agreement cancellation.  Second, Tarion offers deposit protection of up to $20,000 if your builder does not refund your money. Amendments and Conveniences You may increase the resale value of your property by investing in various modifications and accessories. Wooden flooring, granite or quartz worktops, new tub surrounds, are all examples of popular renovations. Central air conditioning and a fireplace are two examples of desirable extras. Deposit protection now include payments made to your builder for upgrades and extras. Therefore, you can rest easy knowing your money is safe.  Which kind of deposits are not protected? Tarion does not insure deposits paid to reserve or hold a new house or condominium unit before a purchase agreement is signed. If you do decide to make such a payment, you should request that the contractor keep the funds in escrow. Furthermore, make sure you have a receipt. Buying a brand-new house or apartment complex is a substantial financial commitment. It’s comforting to know that your down payment is secure. Furthermore giving you one less thing to worry about while you look for your ideal house. Related posts 23 August 2023 Deposit protection lowers homebuying stress     Deposit protection lowers homebuying stress When you put down… 17 August 2023 What is the First Savings Account for your home? What is the First Savings Account for your home? Canadians are breathing a sigh of relief as inflation… 16 August 2023 BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline… 11 August 2023 Most Canadians Still Can’t Buy a Home in Their City Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive,… 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,… 04 August 2023 Understanding What Low Indoor Humidity Means for Your Home Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical… 18 July 2023 Unlocking Your RRSP: The Home Buyers Plan Explained Unlocking Your RRSP: The Home Buyer’s Plan Explained In order to purchase or construct a qualified…

What is the First Savings Account for your home? Canadians are breathing a sigh of relief as inflation falls and interest rates are expected to stay at 4.5 percent. First-time homebuyers in Canada still believe property is expensive in 2023, and most have given up on the concept. As part of their budget for 2022, the federal government introduced the tax-free First Home Savings Account (FHSA) to help first-time homeowners. The account will be available to Canadians on April 1, 2023, allowing them to start saving tax-free for a first home (up to a lifetime value of $40,000) and incurring extra advantages. The First Home Savings Account: How Does It Work? First-time homebuyers may save aside up to $40,000 ($8,000 annually) tax-free in an FHSA, since it is a tax-advantaged savings account. Contributions to an FHSA are tax deductible like RRSP contributions are in the year they are made. When used for a first-time home purchase or construction, withdrawals from the account are exempt from federal income tax. Any leftover money transfers tax-free into a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF). In essence, the FHSA borrows features from both Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) to provide first-time homeowners a leg up during economically trying times. What Are the FHSA Regulations? The FHSA comes with significant advantages, but it also has strict prerequisites. When the FHSA option becomes available at most major banks, which might be as late as spring or later, you’ll need to fulfill certain requirements before establishing one. Must be a Canadian citizen or permanent resident. You must be 18 or older to participate. You or your spouse/common-law partner has held real estate (such as a condo, duplex, or single-family home) in the preceding four years. Your husband or common-law partner cannot own the home where you presently reside. FHSAs have extra account regulations besides qualifying criteria that you should be aware of: The maximum amount you may put in is $40,000 over the course of your life, or $8,000 every year. The yearly and lifetime contribution limitations do not change despite the number of accounts an account user may have. Unlike RRSPs, the first 60 days of the calendar year are not eligible for a tax deduction for contributions. Up to $8,000 in unused FHSA contributions carries over to the next year. Until the excess amount is gone (either at the start of a new year or by withdrawing funds from the account), it will be taxed at 1% each month. The account remains active until the account holder becomes 71 or until the first-home purchase withdrawal requirement is met, whichever comes first. Is It Necessary to Pay Back the FHSA? Money saved in an FHSA is tax-free and not subject to repayment like the Home Buyer’s Plan (HBP). How to Start and End Your FHSA The first, and easiest, step in opening an FHSA is figuring out whether you qualify. It’s important to think things through before opening an account or closing one down. Is it Worth It to Open an FHSA? Contributions to an FHSA are tax deductible, and withdrawals is tax-free if they are used to fund the purchase of a primary residence. An FHSA may help you get a foot in the door if you’re a first-time homeowner. Who Can Open an FHSA Account? Any Canadian citizen or permanent resident over the age of 18 who does not own their principal home jointly with their spouse or common-law partner is eligible to register an account. Remember that prospective account holders can’t be older than 71. How to Open an FHSA Get in touch with an issuer (such a bank, trust business, or insurance company to set up the FHSA. However, on April 1, 2023, Questrade became the first major financial institution to provide the FHSA. Related posts 17 August 2023 What is the First Savings Account for your home? What is the First Savings Account for your home? Canadians are breathing a sigh of relief as inflation… 16 August 2023 BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline… 11 August 2023 Most Canadians Still Can’t Buy a Home in Their City Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive,… 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,… 04 August 2023 Understanding What Low Indoor Humidity Means for Your Home Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical… 18 July 2023 Unlocking Your RRSP: The Home Buyers Plan Explained Unlocking Your RRSP: The Home Buyer’s Plan Explained In order to purchase or construct a qualified… 10 July 2023 How Your Home Warranty Can Help You in an Emergency How Your Home Warranty Can Help You in an Emergency The last thing you want to face when moving into…

BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline in July’s statistics on existing house sales and prices. Almost every major Canadian real estate market has seen a decline in buyer interest and sales volume recently. It is believed that this would be reflected in national statistics since higher rates send a signal to markets. Expected Decline in Canadian Property Sales After five consecutive months of increases, existing house sales are expected to decline this month. “The housing market’s recovery lost some steam in July as the Bank of Canada raised rates for the second straight meeting after pausing earlier in the year,” BMO said to investors. The bank notes, “Monthly sales likely to decrease following five months of growth after the Bank sat on the sidelines. Even so, we anticipate a 10% increase over the lower levels seen a year ago. BMO’s emphasis on slowing growth while still predicting yearly increase might be misleading. The base effect is to blame, since last July was one of the slowest on record. A mere 10% yearly growth rate doesn’t do justice to the current market. The monthly prediction amounts to a massive 16.7% drop from the previous month. The market is not just lethargic; BMO claims it is trending in the wrong direction, making a rebound much less likely. Declining Home Price Growth in Canada Canada’s biggest real estate areas had monthly price reductions earlier this month, however national figures may be delayed. According to the bank’s July projections, the MLS HPI will end up 1.5% lower than in 2017. When compared to the 4.5 percent drop seen in June, this represents progress. Well-known experts have said that the index distorts trends and no longer represents reality. This group still uses the median selling price. BMO predicts a slowdown in annual growth to 3.5% in July from 6.7% in June. It demonstrates faster growth at first, followed by a steep deceleration. If this trend continues, we may see average selling prices go below zero again. Rising interest rates are the primary factor in the market downturn projection revision. Optimistic market participants re-entered the market after the “pause,” thinking the worst was gone. Since then, two price increases have reassured investors. Don’t expect any end-user engagement anytime soon. Prices have decreased more rapidly than financing has risen due to the increase in interest rates, which has improved affordability. However, most end-users still cannot afford to purchase a house in the current market. As a result of the low-rate boom, affordability plummeted to a record low, with investors replacing first-time purchasers. Related posts 16 August 2023 BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO: Sales and Prices Declining in Canada’s Real Estate Markets BMO Economics predicts a decline… 11 August 2023 Most Canadians Still Can’t Buy a Home in Their City Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive,… 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,… 04 August 2023 Understanding What Low Indoor Humidity Means for Your Home Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical… 18 July 2023 Unlocking Your RRSP: The Home Buyers Plan Explained Unlocking Your RRSP: The Home Buyer’s Plan Explained In order to purchase or construct a qualified… 10 July 2023 How Your Home Warranty Can Help You in an Emergency How Your Home Warranty Can Help You in an Emergency The last thing you want to face when moving into… 02 July 2023 Four 2023 new home buyer facts that may surprise you Four 2023 new house buyer facts that may surprise you Tarion revealed the findings of its initial poll…

Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive, yet it is still unaffordable for the vast majority of the population. The NBF’s Q2 2023 Housing Affordability Monitor (HAM) reports positive trends throughout the country’s housing markets. Home prices have dropped sufficiently to make them more affordable despite increases in mortgage interest rates. It was the third consecutive quarter of rising affordability, but we still have a long way to go to make up for the previous eight. Most Canadian families just cannot afford to buy a home at current pricing. Rising Rates Improved Affordability for 3 Quarters Home prices are declining throughout the country, as measured by the C10 National Index. This is a weighted average of the 10 largest real estate areas. In the second quarter of 2023, the median sales price dropped to $744,400, down 1.2% from the first quarter and down 8.1% from the same period in 2022. As house values dropped more rapidly than loan costs rose, homeowners found themselves in a better financial position. NBF reports that this improvement in home affordability is the third straight quarter.  That was some encouraging data. Unfortunately, most modern families simply cannot afford to buy a home at the current market price. After eight years of steadily rising prices, they are no longer affordable. Most Canadians Can’t Afford a Home Most Canadians live and work in a few big cities. In Q2 2023, the median national index home needed $175,900 per year to pay the mortgage. NBF thinks this is almost double the median family income. Canada’s Major Cities Are Unattainable for Local Incomes The cost of living in Canada’s largest cities has become so high that locals on average wages can no longer afford to live there. According to NBF, a family of four in Vancouver would require $240,000 per year in income to afford the median property price. In other major cities, such as Toronto ($225k/year), Hamilton ($205k/year), and Victoria ($204k/year), the annual salary need was more than twice the local average. Factoid: according to the International Monetary Fund, Hamilton is also the most prosperous city in all of Canada. Canadian Families Cannot Afford Any Major Real Estate Market Only in Quebec City were house prices relatively affordable in relation to local salaries. To afford a mortgage on a median-priced property in the United States, one needs an annual salary of at least $86.5k (109% of the median income). It’s also the only city on the list where prices have gone up, so it probably won’t be around for long. NBF reports a small but positive trend in Canada’s affordability. There is a severe lag between home prices and salaries, and only a catastrophic decline could restore affordability to levels seen before 2015. Even though most Americans are financially unable to purchase a home, very little is being done. Younger families and newcomer communities are particularly hard hit by the housing affordability crisis. The Canadian economy is not likely to be as prosperous for any of these groups as it was for past generations. Related posts 11 August 2023 Most Canadians Still Can’t Buy a Home in Their City Most Canadians Still Can’t Buy a Home in Their City Housing in Canada is becoming more inexpensive,… 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,… 04 August 2023 Understanding What Low Indoor Humidity Means for Your Home Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical… 18 July 2023 Unlocking Your RRSP: The Home Buyers Plan Explained Unlocking Your RRSP: The Home Buyer’s Plan Explained In order to purchase or construct a qualified… 10 July 2023 How Your Home Warranty Can Help You in an Emergency How Your Home Warranty Can Help You in an Emergency The last thing you want to face when moving into… 02 July 2023 Four 2023 new home buyer facts that may surprise you Four 2023 new house buyer facts that may surprise you Tarion revealed the findings of its initial poll… 02 July 2023 3 “warranty exceptions” for warm weather 3 “warranty exceptions” for warm weather Your routines as a new homeowner will likely shift when the…

Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom, real estate prices in the Greater Toronto Area are once again dropping. In July, property values dropped, according to statistics from the Toronto Regional Real Estate Board (TRREB). The first thing that comes to mind is rising mortgage rates, yet house sales continue to rise. Buyers are falling behind sellers as the number of available homes rises exponentially. Toronto Real Estate Prices Dropped $20k In A Month After a short rise, Toronto real estate prices are sliding again. In July, TRREB’s seasonally adjusted benchmark house declined 2.2% (-$26,000) to $1,158,000. The first positive unadjusted yearly growth in months was 1.3%. It verified reduced pricing in the month. Prices dropped less in July 2023 than July 2022, boosting annual increase. Average pricing followed suit. July’s seasonally adjusted average selling price was $1,106,000, down 1.8% (-$20,300). Unlike the benchmark, the composition may make average selling prices more unpredictable. One notable expert prefers the average after recent benchmark revisions. The benchmark-average disparity has historically been exaggerated. Toronto real estate saw more sales, but a lot more inventory Higher interest rates would hurt sales, which would help bring prices down. Not true. In July, sales of 5,300 houses were up 7.8% from last year. Most likely, the 11.5% rise in new sales, which reached 13,700 houses, did it. More people are selling their homes, but more people are also putting their homes on the market. The number of sales to new listings (SNLR) shows too many homes for sale at these prices. In July, the number was only 38%, which is below the level of a healthy market between 40% and 60%. This is now what is called a buyer’s market. That doesn’t mean that buyers are inappropriate, but it does mean that they are in charge of the reward. If this number stays the same, most experts think home prices will decrease. Surprisingly, the SNLR is now even lower than last year, when prices fell even more quickly. But the market doesn’t make people talk about the same things this time. It’s an interesting change in attitude, which could mean that people buying when prices go down think it will only last for a short time. RATES ARE AFFECTING THE MARKET Rising interest rates do affect this market, but not in the way most people think. Most of the time, rising rates slow down home sales, but compared to last year, home sales are going up. Rates have made it harder for people to afford homes, so prices have had to go down to keep sales and supplies going. After 20 years of sharp gains, most buyers aren’t likely to be against a small drop. The most interesting effect is how higher interest rates are changing supplies. With rates going up, it wouldn’t make sense for a lot of people to update. But all of a sudden, there are a lot more people who want to sell their land. This could be because investors own most of the homes in Canada. Investors are worried that home prices won’t go up any further because bond yields are higher than rental yields. With the information we have now, we can’t tell if the buyers are investors, but changing conditions tend to change investment behavior. Related posts 07 August 2023 Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Toronto Real Estate Prices Fall Over $20k, Creating A “Buyer’s Market Despite a recent mini-boom,… 04 August 2023 Understanding What Low Indoor Humidity Means for Your Home Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical… 18 July 2023 Unlocking Your RRSP: The Home Buyers Plan Explained Unlocking Your RRSP: The Home Buyer’s Plan Explained In order to purchase or construct a qualified… 10 July 2023 How Your Home Warranty Can Help You in an Emergency How Your Home Warranty Can Help You in an Emergency The last thing you want to face when moving into… 02 July 2023 Four 2023 new home buyer facts that may surprise you Four 2023 new house buyer facts that may surprise you Tarion revealed the findings of its initial poll… 02 July 2023 3 “warranty exceptions” for warm weather 3 “warranty exceptions” for warm weather Your routines as a new homeowner will likely shift when the… 27 June 2023 Reuters survey predicts rising Canadian housing prices due to high demand Reuters survey predicts rising Canadian housing prices due to high demand According to a Reuters survey…

Understanding What Low Indoor Humidity Means for Your Home Overwhelming indoor humidity is a typical summertime problem for homes. Humidity has long-term effects on your house, your health, and the immediate discomfort it causes. That’s why it’s essential to maintain a comfortable amount of humidity within your home. Your home’s interior is often a climate-controlled zone, where the temperature may be altered at your whim by simply setting the thermostat. In the winter, heat is trapped inside so that everything in there (including you!) can continue to work correctly, while in the summer, the air conditioner keeps things cool inside. Humidity within the house, however, is often neglected due to environmental or climatic regulations. Between 40 and 60 percent relative humidity is considered the sweet spot for comfort indoors. Too much moisture in the air raises the possibility of mold and wood rot throughout the house if the relative humidity is too high. The warping of floors, cabinets, and other wood furnishings is only one example of the extensive damage that humidity levels may cause within a house below 40 percent. Make it a habit to check the relative humidity in your house regularly. This is especially true for winter so you can take preventive measures. Find out the implications of having a dry home environment. Understanding What is Humidity Having a solid grasp of relative humidity can help you identify low humidity in your house and improve the humidity. The relative humidity is the quantity of water vapor in the air in relation to the temperature. The vapor capacity of warm air is greater than that of cold air. This implies that the quantity of water vapor in the air in a room that is 40 degrees Fahrenheit warmer than one that is 50 degrees Fahrenheit colder might be the same in both cases, despite the difference in relative humidity. The relative humidity, or humidity, is the proportion of the weight of all the liquids in the air that are also vapors. A high relative humidity is an air relative humidity reading more than or equal to 60%. A low relative humidity is defined as an atmospheric humidity level of less than 40 percent. At a humidity level of 50%, for instance, the air only keeps half as much water vapor as it could; at a humidity level of 25%, the air only retains a quarter as much water vapor as it could. The Impact of Low Humidity on the Household Low humidity can cause significant damage to a home if nothing is done to raise it to an acceptable percentage. High humidity is typically associated with hazards like wood rot and mold growth. Long-term effects of low humidity in the house may become apparent if the current relative humidity level persists. Check your hardwood floors, wooden furniture, cabinets, drawers, countertops, wallpaper, paint, windows, doors, and even houseplants for shrinking, warping, peeling, and cracking symptoms. Low indoor humidity also makes it more likely to get an electrostatic shock when you touch a certain surface. If you’re getting a lot of shocks every day after walking on the carpet or doing the laundry, check the humidity levels in your home. What are the Causes of Low Humidity? Although several factors may cause low humidity, the weather is usually to blame. The outer air can only store so much moisture vapor during winter compared to summer. Because of this, when it is chilly outdoors, the relative humidity of the air drops significantly. If you leave a door or window open, dry, cold air from outside will enter your house and expand as it warms. However, this has the side effect of lowering the home’s relative humidity. Excessive usage of air conditioning or a dehumidifier is another contributor to low humidity levels in the house. Remember that cities or towns in arid areas do not necessarily need to be chilly to have low humidity levels outdoors. Low humidity is a persistent threat in these areas, necessitating a low-maintenance solution such as a whole-house humidifier. What is the Target Humidity Level? There are a few techniques to determine the relative humidity in your house. First, a humidity reading may be available on the screen of many thermostats, particularly smart thermostats, or through an app on your smartphone. A hygrometer is a cheap and simple instrument used instead of thermostat to measure humidity. To avoid problems, the relative humidity in your house should be between 40 and 60 percent. If the relative humidity is over 60%, then the humidity level needs to reduce; if it is below 40%, it should be raised until a comfortable middle ground is reached. What Leads to an Increase in Humidity? You shouldn’t freak out if you find out that your house has too little humidity after doing a humidity test. Humidifying your house is a low-cost method. Leaving the lids off boiling water while cooking or leaving the bathroom door open while bathing are fantastic ways to bring in more moisture. You may also wait for the water to cool by leaving it in the tub afterward. Increasing the humidity in your home by adding plants is another option. If those passive strategies don’t work, you may invest in a whole-house or separate humidifier for each room. Avoid creating difficulties associated with excessive humidity by increasing the humidity level too much. Tips for Managing Indoor Humidity There is no silver bullet when controlling high humidity levels within a building. Some options are as follows. Purchase a humidity gauge. The first step in managing humidity is understanding the problem accurately. Hygrometers are simple instruments that measure relative humidity. You can find them at any hardware shop for a low price. Keep your indoor plant population to a minimum. Plants can improve the indoor humidity levels within the buildings. You should turn on the fans in your house. Using the exhaust fans of kitchen, bathroom, and laundry room is a great choice to reduce humidity. Maintain a level of