2020 Real Estate Forecast

RE/MAX is out with the 2020 outlook for home sales across Canada and it is looking like another growth year for home prices.  Although it could be a seller’s market in many larger cities, it is looking like a balanced market locally.  

On a national level, the forecast is for a 3.7% increase in the average price for homes across Canada.   For the most part, consumer confidence is fueling the real estate market heading into 2020.

  • 51% of Canadians are considering a home purchase in the next five years.  That is up from 36% at the same time last year.  
  • Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019.
  • As more Canadians have adjusted to the mortgage stress test and older Millennials move into their peak earning years, it is anticipated that they will drive the market in 2020.

REMAX provides a more detailed city by city outlook for 2020 in the full report available HERE, but locally it is looking like Simcoe County could actually grow more than the national average.  The City of Barrie is predicted to reach 5% growth in 2020 which will directly affect many other areas such as Orillia.  

Real estate remains a good investment and the trend continues to show steady growth for 2020 as it has in the past five years.  As of the start of December, it looks like 2019 will end with about 5% growth in average homes sale prices for the area of Orillia, Oro-Medonte, Severn and Ramara.    Below is a look at how the average price for homes has changed in the Lake Country region over the past 5 years. (2019 is the average as of the start of December when posting these figures). 

                           (Lake Country 2014 – December 2019)

                                (City of Barrie 2014 – December 2019)

With the latest REMAX forecast for 2020 indicating a 5% growth in 2020 in the Barrie area it appears that next year should remain a balanced market in the Lake Country region as well and homes sales in 2020 should be much like 2019 for the area with an average increase slightly above the national average.

The full REMAX Barrie marketplace overview can be found HERE,

$ave Hundred With This Wow Factor Idea

Many of the buyers I take through homes, in fact, I would say nine out of ten buyers seem to always say “Wow, I Love That” when they see this in a home.  

If you’re looking for something to add a wow factor to a room in your home, the barn door might be the right way to go if it fits the decor.

Plain unfinished barn doors can be purchased for a couple of hundred dollars, however, when it comes to catchy designs the price tag jumps considerably.  ( It seems to always be the catchy designs that get more wows.) 

The attractive Urban Woodcraft Barn Door in the picture above can set you back close to $1,000, but you can build a barn door with a modern twist at a fraction of the cost and here’s how.

 I came across the plans for the door below which might start your creative juices flowing to create your own design.  Get all the materials needed for the door and the step- by- step plans from Michelle’s site at Breaking Down The Box  (Click HERE.

If you’re planning to sell your home I would be happy to provide other ideas to add value to your home.   Contact me for a FREE home-evaluation and tips on what you should do and don’t have to do to sell your home fast and for top dollar.

 

 

Surprise! You Can Be Comfortable In A Much Smaller Home.

How big of a home do you really need?  Not want, NEED!

This might be hard to comprehend, but according to an estimate provided by The Engineering ToolBox, the average person needs between 100-400 square feet within a home to feel comfortable. The size naturally depends on a person’s comfort level which does vary, but it clearly shows that most homes are way over the size that is truly needed to be comfortable.

As I write this I am looking at a listing for a home for sale that has a foyer that is 312 square feet. If the Engineering Toolbox study is correct, most of us could actually become quite comfortable living in the foyer of that home.

For some reason, we want bigger, but don’t really and truly need bigger. Today many buyers want homes with bigger kitchens, bigger bathrooms, bigger bedrooms, bigger walk-in closets and bigger garages. The only thing we don’t want is a bigger mortgage.

Recently the credit monitoring firm TransUnion looked at every active credit file across Canada and found at that time the average Canadian mortgage had $198,781 left on it. That total had increased by almost five per cent in the previous 12 months of their research. There is no doubt the increase is in part because of real estate prices, in general, going up, but some of that is also because of the size of newly built homes that people keep demanding.

 

The median footage of new homes in North America is now 2,687 square feet, which is an increase of nearly 1,000 square feet in the last four decades. Think about that. Whether you are a Generation Y, Generation X or Baby Boomer, you probably were raised in a home that was almost half the size of what new homes are now.

By the way, the average size of a home within the tiny house movement is 8′ x 20′. I realize that for a growing family with a couple of children and pets it is crazy to think of being comfortable in such a home, but if retirement is around the corner, The Engineering ToolBox says we could be quite comfortable considering the option.

Would you ever consider selling your large home and purchasing an 8′ x 20′ tiny house at retirement?

If you’re planning to downsize check out my Seller Guarantee and if you’re a buyer you need to know about my Buyer Guarantee. Let’s talk about your next home and your comfortable future.

( Comment )

 

Three C’s In Selling Your Home

One of the best suggestions for anyone considering to sell a home is to start as early as possible to prepare the home to sell.  The more time a homeowner has to take care of necessary repairs and to ensure the home is properly staged the easier the whole process will be.

Unless you love the excitement of being pushed to the limit,  I would recommend that most homeowners start to prepare the home three to six months in advance of the listing date.

THE 3 C’s

Often sellers don’t grasp the total concept of staging a home.  There is much more to staging than just having furniture positioned in the right place.   Staging starts by understanding what needs to be done or can be done to repair problem areas if they exist.  Then there are dozens of other little things you can do that will make a huge difference in the overall impression of the home.   

Every home seller needs to know the three key areas of staging that can often have the biggest impact on the selling price. 

The Three C’s of preparation that every home seller must concentrate on is CLEAN, CLUTTER-FREE and COLOUR.

Clean

Every person has their own definition of what clean is, but as a seller you need to accept that people tolerate their own dirt, but won’t tolerate someone else’s dirt.   You need to prepare your home to be Q-Tip clean.  A thorough  cleaning must take place if you want potential buyers to feel comfortable when they view your home and making the buyer feel comfortable is critically important.  

 

 

Clutter-Free    

Far too many homes could pass for a flea market so how do I put this politely.  GET RID OF THE STUFF!. 

Being clutter-free is so important that you need to have the thought that every item you leave in your home, that isn’t used on a regular basis or can’t be hidden away, is actually working against you in getting the price you want for your home.     

Many home stagers will say that when they walk into the most immaculate homes,  they are able to recommend about 30% of the items that are in the home that should be removed.   For the average home it means there is 70-80% too much stuff in it when it comes time to sell.   

As an example, a clothes closet is an area that is often overlooked when preparing to sell.    Most people can pack away or get rid of over half the clothes hanging in a closet.   Just packing away the clothes that are not in use for the current season is a great start to decluttering a closet. 

Photo by jordi pujadas on Unsplash

As a home seller you want to ensure that a potential buyer gets the feeling that there is plenty of room in the home.  An overcrowded clothes closet actually can create a feeling that the entire house is too small.   Whether it is a tiny closet or a walk in closet, the fewer clothes you have hanging in that closet the more appealing the home will be to potential buyers.  

So what do you do with all the stuff?  I would be happy to provide tips on that and so much more as part of my free home staging consultation.   

As a homeseller you need to attack clutter with the mentality that Clutter Cuts Equity.

Colour

You would think that most buyers could look past colour.  Sorry, that is not the case.  Most buyers  get an overall good or bad feeling for a home based on several things and the colour of a room has a huge impact on what a person is feeling.    

Neutral colours are always the best bet and if that means repainting a room before you put your home on the market then it is wise to do so. 

Here is something that is hard to accept, but it is true.  Once you decide to sell,  the home it is no longer your home.  By that I mean you must forget about your home being comfortable and appealing to you and make it attractive to the buyer.  Paint is one of your best investments in doing that.  

It is almost always better to stick with neutral colours for  your walls and your local paint provider can give you some great suggestions for neutral shades .  Take a few pictures of the rooms you are planning to repaint and take them to the store.    A paint expert can look at your furnishings and provide the best options for neutral colours for your home. 

The walls should be thought of as the backdrop or canvas to a room.  When it comes time to sell let accent pieces and furnishings add some excitement to the room rather than trying to accomplish that through wall colours.         

TAKE TIME TO  PROPERLY PREPARE

There is so much more to think about to properly prepare to list your home for sale and I would be happy to discuss this with you with a free home staging consultation. 

As a home seller you need to accept the fact that most people will not overlook messiness, clutter or tolerate someone else’s dirt.   

Focusing on the Three C’s will help you to get the  highest price possible for your home and reduce the time it takes to sell it.  

Book your FREE Home Staging  Consultation HERE.  

 

 

 

Simple Little Idea To Solve A Big Problem

I saw this short video that shows a great idea to solve a problem that many people have. What to do to try and deal with all the stuff under the kitchen sink.

By the way, buyers do look under the kitchen sink to see if they see any leaks.  What a great way to impress them when they open your cupboard door and see this idea!

Room, Apartment and House Rental Scams

Something that irritates me is the thought of someone being taken advantage of through a rental scam.   It is tough for most to come up with first and last month’s rent for a place and to hear that a hard working individual got taken to the cleaners through a rent scam ad is heartbreaking.   

Protect Yourself

The short video provides a few red flags to help identify a possible rental scam.  

Most Important

A huge red flag is not being able to see the place.  It is very important that you can view the room, apartment or house from the inside not just from the street or from pictures.  If the person saying they are  the owner or the landlord’s property manager doesn’t have the keys to let you in or they give you an excuse for why you can’t see the place at the present time, then don’t hand over the deposit at that time.

More tips from the University of Ottawa to protect yourself from  a rent scammer.