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Toronto real estate gains have been driven largely by very low interest rates. While rates remained low, consumers felt comfortable borrowing more money to cover the rapidly rising costs of owning a home. With the economy in flux due to Covid and its impact on every aspect of the economy, the Bank of Canada (BOC) has kept interest rates low. Now, with inflation setting in, there is reason to expect rates to rise. In fact, strong voices such as Dave McKay, CEO of the Royal Bank of Canada are calling for rate increases this spring to mitigate the effects of inflation. 

The effects of rising interest rates

While rising interest rates in Toronto can be a good thing – think better interest in savings accounts, it will make borrowing more expensive and affect how much house someone can afford. Rate increases will not immediately affect homeowners. Those who are locked into fixed rate mortgages will feel no difference until it is time to renew. At renewal, theoretically, their mortgage payment increase due to a higher interest rate will be offset by a smaller principal amount left to pay down. 

Variable rate mortgages

Those with a variable rate mortgage, might consider locking it in unless they have a lot of flexibility financially. However, if you are already just making ends meet then locking in a lower interest rate is probably a good idea. Before making any financial moves, it is best to consult with your financial advisor or lender to understand your options and decided what is best for you. 

Preparing for a rate hike

To prepare for eventual interest rate hikes it is best to pay down any loans as quickly as possible. If you have several loans, concentrate on paying down the highest rate loan first. You can also find out whether consolidating your loans makes sense for your situation. And, if you were planning on buying a home in 2022, then get a preapproved mortgage rate that will allow you to lock in the current very low rates.

As the final days of 2021 draw to a close, what can we expect from Toronto’s housing market? Different sources offer different insights into what the new year might bring. We’ll recap two of the more interesting trends for you today. 

Tight supply, price stability

As reported in CP24, according to the Canadian Real Estate Association housing sales are set to drop but they don’t anticipate any ease in pricing. Instead, they expect prices to increase because there will be less supply on the market. Homeowners who can’t afford to remain in the same neighbourhood if they sell, but who still want to upgrade their homes are increasingly opting to renovate their properties instead of selling them. This means that fewer homes are available to buy and this will automatically continue driving house prices up. In fact, according to the article, on a seasonally adjusted basis, housing prices were up 1.4% this past October.            

The only factors that could temper rising prices would be an increase in both interest and mortgage rates. And, while the majority of economists polled by Reuters in early December predicted a Bank of Canada interest rate hike in Q3 of 2022 and a possible rise in Q2, whether that hike materializes will depend heavily on how impactful a fourth, and potentially, fifth wave of Covid might be. 

Condo life

Narcity meanwhile is reporting that condo prices are set to rebound in a big way in 2022. Condo price increases are expected to outpace those of single-family detached homes only in Toronto. The condo market was hard hit with Covid and started to rebound in 2021, but will regain much of its former momentum in 2022. 

So, in all, 2022 is looking to be a very good year for those looking to sell, and a more challenging year for those who want to buy. Through it all, we will keep you abreast of your options for buying and selling. And, we will help prepare your property so that you always come out ahead. 

Happy New Year 2022 from all of us at Imaginahome, to all of you! 

With the holidays around the corner, Toronto homeowners are likely in full swing prepping for the festive season. Despite further restrictions due to the pandemic, families are anxious to get together and celebrate after being locked down for so long. If you are hosting your family this year and want to cozy-up your home for the occasion, here are a few tips to help you get that warm, fuzzy feeling that makes you wantI to kick back and relax. 

Accessories and texture

One of the best ways to create a cozy Toronto home is to add texture and accessories to each room. Having objects around that make people want to touch them is a great way to draw people into a space. Artworks, rugs, cushions – are all examples of accessories that enhance any room they are in. Hang photos and/or paintings on walls. Even textiles are a great option for adding colour and texture to a space. Avoid completely blank walls as much as you can. 

Plants

Plants are another great way to make a room feel warm and inviting. They add a burst of natural beauty, greenery and also contribute to improving the air quality in a home. Naturally plants need to be placed in well-lit areas of your home, but there are plants that require less light than others for those who have less available natural light in their residence. 

Lighting

Lighting is a very important aspect of making your Toronto home cozy. There are many different kinds of lighting available and choosing wisely is crucial to getting the kind of atmosphere you want. Light bulbs come in a variety of colour temperatures. The best colors for cozying up your home are on the warm scale of the spectrum. Avoid cool white lights and opt for warm lighting instead. Also try to avoid overhead lighting. Indirect lighting and ambient lighting are better options for creating a lush atmosphere. 

The right scent

Lastly, a fragrant home is a welcoming one. If guests are greeted by floral or spicy fragrances they will feel like entering and enjoying themselves. If they are greeted by the smell of old sneakers and stale food, they are less likely to view your home as cozy and inviting. To get that fresh scent every day, it is important to keep your soft surfaces clean. Washing curtains, rugs, pillows, sheets, etc… regularly is crucial to having a fresh background odor as these items hold onto smells. If no one in your family is sensitive to scents, then another great way of prolonging the fresh smell is to use scented candles, incense and/or fragrance plug-ins.

Having a cozy home is not just wonderful during the holidays, but all year round. And, on that note, all of us here are Imaginahome would like to take this time to wish you and yours a truly wonderful and safe Holiday Season and a New Year that is better and bigger than this one!

Toronto real estate is very pricey these days. Finding a house in the city is hard and costly. So, many homeowners who already have a place in town are opting to stay put and renovate their digs to better suit their needs. However, while this is great for those who have plenty of space to spare, people with smaller footprint properties have to get creative when it comes to remodeling – and bathrooms are among the spaces where some creative thinking can go a long way. 

Small bathrooms can usually only be enlarged by encroaching on space in some other area – not ideal in an already tight home. However, there are ways of maximizing the space in your bathroom to get the storage, counter space and functionality you need. 

Let’s look at some interesting trends.

Traditional shelving

The right shelving can go a long way towards making your small bathroom more functional. Narrow, floor-to-ceiling shelving takes little space but provides a lot of very practical storage room for towels and toiletries. 

Recessed shelving

A new trend in small bathroom design is recessed shelving either in a wall or in an existing shelving unit. These handy little nooks provide additional storage for smaller items or even nice spots for small plants. 

Floating sinks

Floating sinks are great at providing the illusion of space in a small area. The underneath of the sinks are easy to clean and can also be used for storage towels in a basket or a small kitty litter for your furry friends. 

Wet bathrooms

A newer trend brought over from Asia and Europe is that of a wet bathroom – so called because the bathroom is designed so that every surface can get wet. Wet bathrooms can look bigger and give the illusion of more space. However, they do need to be properly water-proofed and can make using the toilet or sink problematic if someone has just showered. A compromise with a pane of glass separating the shower and tub can alleviate the water issues that a wet bathroom can create. 

The right colour

Using the right colour scheme can definitely make a small bathroom seem larger and make it more inviting to use. Usually designers will opt for pale blues, greys, yellows and pastel colours in a small bathroom. You can also use one dark, bold colour as an accent as long as other walls are light. 

There are plenty of great ideas out right now for sprucing up small bathrooms. A good designer will be able to steer you in the right direction. 

Checking for radon in your Toronto home should be one of the routine tasks you do every few years. Why? Because radon is an odorless but harmful gas that can lead to cancer with long-term exposure. 

What is radon?

Radon is a colourless, odorless, inert gas that is found naturally in the atmosphere. It is usually not a concern outside where it disperses quickly. The trouble arises when the gas gets trapped indoors – usually in a house or school. The gas seeps into a building and because it has nowhere to go it builds up. 

Why is radon dangerous?  

Lung cancer related to radon exposure is the second leading cause of lung cancer in North America. When inhaled, radon breaks down and gets into the lining of your lungs where it gives off radiation. Long term exposure to radon can lead to cancer. 

How can you check for radon exposure?

There is a simple test you can do to check if your home has radon in it – just purchase a test kit from any hardware store and install it in your home. 

What to do if your home has radon?

Radon leaks in from openings connecting your home to the ground. So, the first thing to do is air out your home. Make sure you have adequate ventilation and air circulation. Next, seal any cracks you have in floors and foundations that are exposed to the ground.  

Call in the experts

If high radon levels persist in your home, then it is time to call in experts to help find the cause of the high levels and to help you seal it off. Some homes with dirt crawl spaces may need to have those crawl spaces attended to. 

While radon is fine in the small amounts found naturally, large quantities over an extending period of time are what you must be aware of.

Toronto real estate continues to be red-hot despite the pandemic and the concerns that the housing market would flatten. Today’s homebuyers are facing a real challenge in finding a home. Bidding wars are making prices climber higher and faster than ever and many buyers are getting frustrated at constantly losing out to other bids. So, what’s a buyer to do?

Have a strategy

To make a successful offer on a property in this climate you must be ready. You must know exactly where you want to buy and what you want to buy. When you know where and what you want to buy, you are better able to move quickly when that gem comes up for sale.

First through the door

Next, you need a realtor who is able to get their hands on listings before they hit the MLS. Being the first one in to see a property is probably the best way of ensuring you get first crack at making an offer. Even if the seller is anticipating listing the house and accepting offers up until a specific date, if you are able to see the house early and put an attractive offer on the table, chances are high that it will be accepted. Naturally, it doesn’t work in all circumstances, but smart sellers understand that having a good, firm offer is better than five weak offers. 

Be prepared

To win a bidding war in Toronto you have to be prepared – that means having your mortgage amount pre-approved and having your deposit ready to go. In fact, the larger your deposit the more seriously you will be taken by sellers because they will see that you have a lot riding on the offer going through. 

Sweeten the deal

One of the best ways to sway a seller into accepting your offer is to make your offer as attractive as possible. Get rid of contingencies if possible and offer to pay their closing costs. Although some experts will counsel you to forego an inspection, doing so is not in your best interests. Inspections are done to protect buyers who could otherwise end up facing costly repairs. If a seller wants you to forgo an inspection, you have to ask yourself “why”? And, you also have to determine how desperate you are to win that bid knowing that you might be facing some significant issue down the road. 

Escalation clause

If the seller is still set on accepting bids after you have submitted your offer, it is best to then include an escalation clause. Basically, an escalation clause states that you are willing to pay a certain amount over your offer price should the sellers receive something more attractive. However, if this is the case, the sellers must first prove that the other offer was higher and by how much. 

Your best shot, but not everything

Lastly, while it’s important to go in with your best offer – it is also a good idea to reserve some of your funds for escalation. Putting in your max offer might get you on the table, but if you have to offer more, then you have to be ready to come up with those funds. By reserving some funds, you have a better shot of not overpaying and of still getting what you want.