In response to the challenges faced by young Canadians in saving for their first home, the government has proposed significant changes to the Home Buyers' Plan (HBP). These changes include increasing the withdrawal limit and extending the repayment grace period, aimed at easing the path to homeownership for first-time buyers.

Understand: Let's break it down:

1. The Problem: Young Canadians often struggle to save enough money for a down payment on a house and to qualify for a reasonable mortgage.

2. The Solution - Home Buyers' Plan (HBP): The government has a program called the Home Buyers' Plan (HBP) which lets you take money out of your retirement savings (RRSPs) to buy or build a home.

3. Current Limits: Right now, you can withdraw up to $35,000 from your RRSPs under the HBP to put towards buying a home.

4. Proposed Change: The government wants to make it easier for people to buy their first home. So, in the proposed Budget 2024, they suggest increasing the limit from $35,000 to $60,000. This means you could take out more money from your RRSPs to use towards buying your home.

5. Extended Repayment Grace Period: Also, if you've taken money out of your RRSPs under the HBP between January 1, 2022, and December 31, 2025, the government wants to give you more time to pay it back. Normally, you have to start paying back the money within two years, but with this proposal, they're extending that grace period to five years. This way, you have more time to focus on paying your mortgage and getting settled in your new home without the added pressure of repaying the RRSPs.

Is now the perfect time to sell your property? All signs point to a resounding YES!
Buyer interest is on the rise, but available properties are scarce. So, if your place is priced right, in a sought-after location, and visually appealing, get ready to face fierce competition.
As more sellers realize the demand from eager buyers, they’ll start listing their properties too, intensifying the competition. That’s why it’s vital to take every possible step to secure a swift sale and achieve the most favourable price.

1. Pricing: get the number right 

Finding the right price can be a challenge, especially in the current market with various pricing strategies being used by agents. So, what’s the best approach for you?

Before making any decisions, it’s crucial to grasp the neighbourhood dynamics.  If you notice other listings with low prices and offer dates, that should be your winning strategy too. On the flip side, if you price your home close to market value while others go low, potential buyers might think it’s out of their budget.

Conversely, if everyone in your area is pricing at market value, that should be your approach as well. And if it is a mix of both, trust your agent’s advice and follow their recommendation.

However, keep in mind that underpricing your home doesn’t guarantee a bidding war. You might end up receiving lower offers than expected or no offers at all.

And remember, be careful when pricing your home over market value. Some sellers assume buyers will negotiate a lower offer, but in reality, they usually won’t unless the property has been on the market for a significant period of time.

2. Presentation: dial up the appeal 

Pay attention to every detail that needs fixing – Remember, buyers, will spot imperfections first, guaranteed.
Neglecting the small stuff might lead buyers to assume that major maintenance has been neglected too. Their offer will reflect this assumption or they might not make an offer at all. Take care of it all!

Create a lasting first impression – Did you know buyers have already made up 50% of their minds the moment they enter the door? Invest in creating an inviting entryway.
Make them think, “Wow, this place is bright and beautifully designed!”

Illuminate your space – No one wants to live in a dark home. So, brighten things up! Replace bulbs throughout the house so they match, and consider upgrading from basic fixtures to something more appealing.

Remember: an outstanding presentation is about appealing to buyers, not showcasing your personal taste. They should be able to envision themselves living there. Provide them with a bright, neutral, and relatively blank canvas that allows their imagination to soar.

3. Promotion: Spread the word like wildfire!

The more eyes on your listing, the better.

If it’s a condo, make sure the marketing showcases the unit and the building itself. People want to see the lobby, amenities, and location—anything that adds value to the overall package.

Photos play a crucial role, and a top-notch agent won’t settle for mediocre images taken on a phone. They will collaborate with a skilled photographer who knows how to capture the best shots, including the perfect timing. For instance, if you have a stunning view, photographing it at sunset will have a far greater impact than on a rainy afternoon.

Thinking about starting your journey in the real estate market? That is exciting, but it can also be a little scary. But becoming a homeowner is possible with solid strategies.

We selected a few tips that may help you in this next step:

1. Prepare yourself for encountering strong competition when it comes to desirable properties.

Due to low inventory levels, the options available for selection are limited. The number of buyers in the market has been relatively low until recently. However, as the spring season progresses, an increasing number of buyers are initiating their property search, leading to heightened competition.

2. Thoroughly research and gather information before making any decisions.

Sellers are employing various strategies, such as offering low prices and setting offer dates, but these tactics are not consistently used in all areas. The asking price alone may not accurately reflect the property’s value, making it challenging to find affordable options. It is common to come across homes listed at market value alongside properties priced lower to attract multiple offers. Determining the appropriate offer to make or even deciding whether to make an offer at all can be difficult.

3. Every neighbourhood is its own market.

You can’t generalize about the GTA – it’s way too big and diverse. In one area, offer dates may be the norm. In another, sellers may be listing at market rate.

4. If you love something, don’t wait.

Although there was a brief period when buyers had the luxury of taking their time and making conditional offers, the current market dynamics have changed. While certain areas of the city may still allow for some flexibility, highly desirable properties are being swiftly claimed. Therefore, if you come across a property that truly resonates with you, act promptly and submit an offer.

5. Avoid focusing on the attractive and eye-catching listings.

If you wish to avoid being outbid by buyers with greater financial resources, consider exploring properties that have not been effectively presented or marketed. While everyone is naturally drawn to homes with stunning decor and appealing lighting, staged properties often fetch higher prices compared to those that have not been aesthetically enhanced.

6. Consider exploring properties that have been on the market for an extended period.

After the initial 14 days, buyers tend to shift their focus to newly listed properties. However, there are various reasons why homes may not sell immediately. It could be a matter of incorrect pricing, inadequate presentation or marketing efforts, or the need for some renovations. Sellers whose listings have not garnered significant attention are often more open to negotiation.

7. Buy whatever you can afford, wherever you can afford it.

The limited inventory in the market has resulted in higher prices. So, how can an individual who is not financially affluent, particularly first-time buyers, actually afford to buy a property? The key is to start small.
Instead of searching for your forever home right from the start, consider buying a one-bedroom property in Hamilton or Dundas if you can gather enough funds. You don’t necessarily have to live there, you can rent it out to someone else and have their rental payments cover the mortgage, even if you continue living in a rental property yourself. By doing so, you will start building equity while waiting for the property’s value to appreciate.

If you are interested in purchasing a home, reach out to us today for additional tips and guidance. 

We’re back at it again with a review of Market numbers for the month of April. Lets have a look at the numbers from the first month of Spring.

April 2024 home sales were down in comparison to April 2023, when there was a temporary resurgence in market activity. New listings were up strongly year-over-year, which meant there was increased choice for home buyers and little movement in the average selling price compared to last year.

Greater Toronto Area (GTA) REALTORS® reported 7,114 sales through the Toronto Regional Real Estate Board (TRREB) MLS® System in April 2024 – down by five per cent compared to April 2023. New listings were up by 47.2 per cent over the same period. On a seasonally adjusted monthly basis, sales edged lower while new listings were up compared to March. Listings were up markedly in April in comparison to last year and last month. Many homeowners are anticipating an increase in demand for ownership housing as we move through the spring.

While sales are expected to pick up, many would-be home buyers are likely waiting for the Bank of Canada to actually begin cutting its policy rate before purchasing a home,” said TRREB President Jennifer Pearce.