Curb appeal encompasses the attractiveness, charm, and overall visual impact of a property’s exterior.

Michelle McNally

It can include landscaping, architectural features, cleanliness, maintenance, and exterior design elements, all of which contribute to the initial impression potential buyers or visitors have of the home.

A change of the season often brings a change in décor, maintenance and care for your outdoor space. Whether you’re preparing to sell your house, or simply take pride in a well-kept home, there are many simple solutions to make your home’s exterior sparkle this summer.

2. Gussy up your grass and gardens

An overgrown lawn full of weeds can be unsightly and is often unappreciated by neighbours. Give your lawn some love by seeding, fertilizing and aerating the grass. Be sure to water your lawn enough for new grass to grow and old grass to remain healthy.

Revitalize existing gardens with fresh mulch and a new plant or two! If you’re starting from scratch, an expert tip to keep your garden looking wonderful and weedless is to lay down landscaping fabric. This will allow water and air to penetrate the soil, while keeping weeds from popping through.

Here are five ways to improve curb appeal:

1. Touch up the driveway

Your driveway is the first thing you’ll see when you arrive at your home, making it one of the most important exterior elements to give attention to when improving your property’s curb appeal.

Clean the driveway with a pressure-washer to get rid of dirt and debris. This may be all you need to do! However, if there are any cracks, loose stones or bricks, be sure to repair or replace them. You could also choose to have your driveway sealed to freshen up the look of it while providing protection against deterioration.

A rock garden or hedge can further enhance the aesthetic appeal of the driveway, lending a natural and visually-pleasing border that complements the existing landscaping.

3. Add character to your front entrance

This is the place you can pour your heart into – the area that greets you every day when you come home, and is the space that invites guests in. You want your front entryway to be warm and welcoming.

Always clean up the space first, removing any clutter or cobwebs, repairing or replacing anything that is broken, and swapping burnt out bulbs in outdoor light fixtures.

Take your front entrance style a step further and paint your front door in a colour that pops. Painting the door not only brightens the home’s facade, but also protects the door from environmental damage.

Next, decorate! Add hanging or potted plants, some comfortable seating if the space allows, and a seasonal wreath as the finishing touch.

4. Update the deck and patio

Pressure wash the patio and deck to remove dirt and any uneven surfaces of the wood. Add a fresh coat of protective stain to the deck, and weed between patio stones. While you have the pressure washer out, consider cleaning off the siding and windows too.

Clean, refinish or replace any weathered patio furniture and arrange them so they’re ready to be enjoyed.

Add potted plants to your deck or patio space for privacy. When large enough, they can provide a barrier from neighbours. They also add to the aesthetic of the space and are appreciated by bees, birds and butterflies.

5. Amp up your lighting

Outdoor lighting can bring your home from looking drab to looking fab after the sun goes down!

Pot lights under the eaves will illuminate the entire exterior, adding a touch of grandeur to your home.

Installing solar powered lights along the driveway or path to the front door is not only welcoming, but also makes it easier to see where you’re going at night. If space permits, try adding a pendant light to your front porch — it’ll make for a cozy and inviting entrance.

The subtle light given off by lanterns or twinkle lights will make your home’s patio, deck or backyard a usable outdoor space for relaxing or entertaining guests.

As you work to enhance your home’s curb appeal, remember that even small changes can have a significant impact. By following these tips, you can create a welcoming and visually stunning exterior that reflects your style and pride of ownership.

Canada’s central bank has made a third cut to its overnight lending rate this year.

Michelle McNally

Canada’s central bank has made a third cut to its overnight lending rate this year, lowering borrowing costs for existing and aspiring homebuyers yet again.

In its scheduled September 2024 announcement, the Bank of Canada dropped the target for the overnight lending rate by 25 basis points to 4.25%.

In July, Canada’s Consumer Price Index rose 2.5% year-over-year, increasing at the slowest pace since March 2021. Continued easing of inflationary pressures were a contributing factor of the Bank’s decision to lower interest rates by another 25 basis points.

“Our decision reflects two main considerations. First, headline and core inflation have continued to ease as expected. Second, as inflation gets closer to target, we want to see economic growth pick up to absorb the slack in the economy so inflation returns sustainably to the 2% target. Inflation continues to reflect the push and pull of opposing forces. Overall weakness in the economy continues to pull inflation down. But price pressures in shelter and some other services are holding inflation up,” said Tiff Macklem, Governor of the Bank of Canada, in a press conference with reporters following the announcement.

“If inflation continues to ease broadly in line with our July forecast, it is reasonable to expect further cuts in our policy rate. We will continue to assess the opposing forces on inflation, and take our monetary policy decisions one at a time,” he continued.

Three cuts down – more to go?

The third cut to the overnight lending rate comes at the start of the fall housing market, traditionally a time when buying and selling activity picks up across Canada. For those who have been sitting on the sidelines waiting for cheaper borrowing costs, another decrease to the overnight lending rate may be the extra sign of encouragement they’ve been waiting for.

According to a recent Royal LePage survey, conducted by Leger,1 51% of Canadians who put their home buying plans on hold the last two years said they would return to the market when the Bank of Canada reduced its key lending rate. Eighteen percent said they would wait for a cut of 50 to 100 basis points, and 23% said they’d need to see a cut of more than 100 basis points before considering resuming their search.

For today’s first-time homebuyers who face many financial obstacles on their path to home ownership, lower interest rates mean lower monthly mortgage payments and improved affordability. Another Royal LePage survey, conducted by Hill & Knowlton,2 revealed that three quarters (74%) of those in the next generation of homebuyers – Canadians belonging to the adult generation Z and young millennial cohort, born between 1986 and 2006 – say that owning a home is a priority for them and a milestone they hope to achieve in their lifetime. Buoyed by the prospect of lower borrowing costs, nearly one in five respondents (18%) who are planning to purchase a home say that their timeline to buy is within the next three years, and another 13% plan to buy in three to five years.

“The Bank of Canada continues its delicate balancing act, gradually easing the economic drag of high interest rates as the economy cools. With inflation now at its lowest point in three years, policy-makers are shifting their focus to jobs and housing,” said Phil Soper, president and CEO of Royal LePage. “For first-time homebuyers, the key question is whether to buy now or wait. Home values have largely plateaued this year, and improved affordability due to lower borrowing costs has benefited many. However, once the backlog of sidelined buyers is released into the market, pent-up demand will drive prices higher. This fall, we can expect more cautious Canadians to take the plunge, while those willing to take on the risk might hold out for further rate cuts.”

The Bank of Canada will make its next announcement on Wednesday, October 23rd.

Read the full September 4th report here.

30-year mortgage amortization period extended for all first-time homebuyers and all new construction purchasers, plus a $500,000 increase to the insured mortgage cap

Michelle McNally

Those looking to buy their first home will soon be able to take advantage of a 30-year mortgage and expanded borrowing powers, regardless of the home they buy. 

On September 16th, the Government of Canada revealed that it would be expanding eligibility for 30-year amortizations on insured mortgages to all first-time homebuyers, and to all purchasers of new construction properties. The policy will come into effect on December 15th, 2024. Currently, the maximum amortization period for insured mortgages – mortgages that have less than a 20% down payment and therefore require mortgage insurance – is limited to 25 years.

By lengthening mortgage amortization periods by another five years, the federal government says monthly mortgage payments will be reduced, making housing more affordable for young Canadians. The upgraded policy would also incentivize developers to build more new housing. 

This latest amendment to mortgage rules comes just one month after 30-year amortizations for insured mortgages were announced for first-time homebuyers of new construction homes. The policy officially came into effect on August 1st.

Insured mortgage cap increased to $1.5 million 

In addition to longer amortization periods, the federal government has also increased the limit on insured mortgages. As of December 15th, the insured mortgage cap will be increased from $1 million to $1.5 million. 

“Building on our action to help you afford a downpayment, we are now making the boldest mortgages reforms in decades to unlock homeownership for younger Canadians,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said in a press release. “We are increasing the insured mortgage cap to reflect home prices in more expensive cities, allowing homebuyers more time to pay off their mortgage, and helping homeowners switch lenders to find the lowest interest rate at renewal.”

Under current rules, mortgage insurance is limited to homes purchased under $1 million, meaning anyone searching for a home in the seven-figure price range is automatically required to put down a minimum of 20% of the purchase price as a down payment. This can be limiting to homebuyers in the country’s most expensive real estate markets, Vancouver and Toronto, where average home prices often surpass $1 million. 

“The decision to lengthen insured mortgage amortizations and boost the mortgage insurance cap will give many first-time buyers across the country a much-needed leg up on accessing the property ladder. For many homebuyer hopefuls, the monthly mortgage payment is often the deciding factor between a property that fits in their budget and one that doesn’t. An extra few years to spread out those payments will help many purchasers make the transition from renter to homeowner. Those shopping in Canada’s most expensive markets, where home prices over $1 million are the norm, will also find it a little easier to get into the market,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. 

“The implementation of these new rules will likely follow another cut to interest rates, or two.  The Bank of Canada’s next scheduled announcements are on October 23rd and December 11th. Lower borrowing costs, combined with these extended mortgage powers, may stir first-time buyer demand in the months ahead, setting the stage for a robust spring market in 2025.”

Do you qualify under the new mortgage policies?

In order to take advantage of the increased mortgage cap and 30-year mortgage amortizations, you must be a first-time homebuyer in Canada. Here are the basic requirements:

• The borrower has never purchased a home before.

• In the last four years, the borrower has not occupied a home as a principal residence that either they or their current spouse or common-law partner have owned.

• If the borrower recently experienced the breakdown of a marriage or common-law partnership, the regulations will follow the approach that the Canada Revenue Agency has taken with respect to the Home Buyers’ Plan.

• To be considered a new construction property, the new home must not have been previously occupied for residential purposes.

Thirty-year amortizations were first announced in the 2024 federal budget released earlier this year, alongside other housing measures for Canadians. Read more about all of the proposed housing measures here. 

Following two cuts to the overnight lending rate in June and July by the Bank of Canada, home sales saw a slight boost in August across Canada

Michelle McNally

According to the latest report from the Canadian Real Estate Association (CREA). However, the housing market still feels stuck in a holding pattern, with only marginal changes across most metrics, according to experts.

“Despite some fledgling signs of life to kick off the long-awaited monetary policy easing cycle, Canadian housing market activity still looks to be stuck in the same holding pattern it’s been in all year,” said Shaun Cathcart, CREA’s Senior Economist, in the report. “That said, with ever more friendly interest rates now all but guaranteed later this year and into 2025, it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”

Home sales up slightly

In August 2024, home sales across Canada’s MLS® systems edged up 1.3% compared to July. This marks the highest level of sales since January, and the second-highest monthly total in over a year. However, the overall picture shows a market that hasn’t fully heated up yet.

Inventory on the rise

There were 177,450 total properties for sale at the end of August, up 18.8% from last year, according to CREA. However, this is still 10% below the historical average of around 200,000 listings typically seen this time of year.

New listings also ticked up by 1.1% in August, thanks to a much-needed boost in Calgary’s housing supply. Edmonton followed with a rise in listings as well, offsetting a slight decline in the Greater Toronto Area (GTA).

With sales growing only a little more than new listings, the sales-to-new listings ratio moved up to 53% – just barely changed from July’s 52.9%.

The number of months of inventory was 4.1 months at the end of August, down slightly from July’s 4.2 months. This figure has been holding steady between 3.8 and 4.2 months for nearly a year, reinforcing the idea of a market in neutral gear.

“With more interest rate cuts now expected between now and next summer, the stage is set for a faster return of demand, but we’re clearly not there just yet,” said James Mabey, Chair of CREA. “There are typically four times in any given year that see a burst of new supply that can excite the market and draw buyers off the sidelines, and those are the first weeks of April, May, June, and September. So, the first week of September saw not only a third rate cut, but also a lot of new properties for buyers to consider.”

Home prices report little change

The National Composite MLS® Home Price Index (HPI) was flat from July to August, following small price increases in the previous two months. Home prices have stayed mostly unchanged since the beginning of 2024, according to CREA.

On a year-over-year basis, prices are down 3.9% compared to August 2023. This drop reflects price gains seen during the spring and summer of 2023, followed by declines later that year. Expect these year-over-year comparisons to improve as we move forward. The actual (not seasonally adjusted) average home price in Canada was $649,100 in August 2024, almost unchanged from the same month last year.

Sales of luxury homes were up in the first eight months of 2024 compared to the same period last year in most major cities

Director of Communications, Royal LePage

From surging buyer demand to fluctuating interest rates, the Canadian housing market has seen its fair share of ups and downs since the onset of the pandemic. Through it all, home prices in the country’s luxury markets have stayed relatively stable, weathering the ever-evolving market landscape.

According to the 2024 Royal LePage® Carriage Trade® Luxury Market Report, sales of luxury homes were up in the first eight months of the year, compared to the same period in 2023, in almost all major cities in Canada – with the exception of the two most expensive markets, Vancouver and Toronto, as well as Halifax. Meanwhile, prices posted modest gains in some regions and slight declines in others.

“Homes typically trade hands at the high end of the market at a slower pace than we see in the industry overall, as the funnel of potential purchasers narrows as the price of properties climbs. This affords luxury buyers the luxury of acting more deliberately, taking their time in a quest to find exactly the right home,” said Phil Soper, president and chief executive officer, Royal LePage. “While market conditions can vary from one city or province to the next, the dynamics at play in luxury real estate markets from coast to coast remain consistent: buyers in this segment know what they want and they are willing to wait for it.”

While transaction volumes in the high-end property segment are lower relative to the mainstream residential market, luxury markets in the Prairie provinces recorded some of the largest gains in sales activity year over year in the first eight months of 2024, led by Winnipeg, with Edmonton and Calgary close behind. This is reflective of the strong state of their overall markets, especially Alberta, which has proven more resilient than most of the country over the past year. This is due to its continued strong demand from out-of-province buyers. Outside of the Prairies, Quebec City has also recorded strong luxury sales growth this year.

Looking ahead, experts in all major cities across Canada expect to see brisk activity in the fall market.

Luxury buyers feel boost of confidence, fueling sales

According to Royal LePage regional luxury market experts, buyers in this segment are discerning. In some regions, the high cost of construction is driving demand in the resale segment, where buyers are seeking fully-renovated, turn-key properties. In other areas, buyers prefer to build the custom home of their dreams, despite high cost construction costs and extended timelines.

“Luxury buyers typically have the means to be picky. Their home buying decisions are shaped by more than the desire to live in a particular neighbourhood or to enjoy very specific high-end features and amenities. Often, their decision whether to buy or not is driven by their confidence in the health of the overall economy and the direction they see housing prices headed. Our research shows those in the higher end of the housing market have a very positive outlook on the long-term stability and appreciation potential of Canada’s housing stock,” noted Soper.

“Many buyers in the luxury market segment do not require high-leverage mortgages, where the amount borrowed relative to the value of the underlying property is large. In fact, it is common to see expensive homes purchased with very substantial down payments, or even fully in cash. Thus, luxury homebuyers as a rule are not as heavily impacted by high interest rates as the average consumer. It is primarily the positive impact on macroeconomic factors that will encourage new buyers in the luxury segment.”

Here are a few highlights from the 2024 Royal LePage Carriage Trade Luxury Market Report:

• Halifax’s luxury real estate market recorded highest year-over-year median price appreciation in the first eight months of 2024, with gains of 8.6%.

• Luxury property prices in Toronto posted year-over-year increase of 3.9%, while Vancouver and Montreal recorded modest declines of 1.8% and 2.8%, respectively.

• Sales activity in Winnipeg’s luxury market recorded greatest year-over-year increase with 61.9% jump, taking into account low transaction volumes.

• 2023 foreign buyer ban has had no material impact on prices or available inventory in most markets