Maximizing a Small Living Space

 

Decorating a small space can be challenging, especially if you are moving from a home to a small apartment. Fortunately, there are many easy and affordable ways to convert your small apartment into a stylish sanctuary that is cool, comfortable, and never feels cramped.

1. Select small furniture. 
A small apartment living room can easily be overwhelmed by excessively large furniture. Many home decor stores like Ikea understand this and offer a large selection of apartment-friendly furniture. If you have a large piece of furniture, make sure it does not dominate the room by adding colorful smaller accent pieces.

2. Create an attractive focal point with your piece of furniture.
Creating a focal point in each room helps the room feel more cohesive and less cluttered. Whether it is your sofa, a window, or a favourite piece of art, a focal point helps draw attention to one area of the room, providing a distraction from any less attractive areas.

3. Use tall items to draw the eye upwards.
Use stacks and tall items to draw the eye upwards to create the illusion of higher ceilings. If your windows are small try purchasing long curtains and hang them as close to the ceiling as possible. Not only will this create a beautiful focal point, but also gives the appearance of a larger window.

4. Choose a cohesive color scheme.  
Use paint colours and fabric swatches to create an attractive colour scheme and use it throughout the apartment. Having a unified colour scheme creates a designer feel and makes your space feel pulled together.

5. Keep clutter to a minimum. 
Create areas for your art collections where they can be displayed together. If you have a problem finding storage in your apartment be creative and make your own. Many stores like Lowes carry affordable storage systems that you can install yourself.

6. Use mirrors to your advantage. 
Placing mirrors and other reflective surfaces opposite of windows and other light sources creates the illusion of more light and makes space appear larger than it really is.

7. Add your own artwork. 
Creating your own art is a fantastic way to personalize your space. Choose what interests and appeals to you and run with it. Let your imagination go wild and create a painting or project tailored to your home.

8. Accessorize
Once you have established and arranged your furniture, it’s time to accessorize. Use items that you already own; small coffee tables, books, and other accessories can complement your furniture and make your space look more stylish. Small or unusual games like Japanese puzzle boxes also make interactive and attractive accessories. Remember, your living room is for living in, not staring at—make it fun, functional, and fabulously decorated.

How to Get the Best Mortgage for You

You are wondering which kind of mortgage is best. The answer: There is no one correct answer. Deciding which type of mortgage will best fulfill your needs can be difficult. There are so many types of loans and different term lengths. Your choice is extremely important and can take some time and effort to research. While often neglected by homebuyers, a little research before choosing your mortgage can save you thousands of dollars in the long run.

There are several elements of a loan that should be analyzed. While one of these elements may suggest one type of loan, another may call for a different type. You must weigh each ingredient separately and collectively. You will find that your answers to the questions below will ultimately determine the type of mortgage that best fits your needs.

How long do you plan to stay in this home?
Five years? Ten years? Thirty years? The length of time you will be in the home will certainly play a part in determining which loan to apply for. If you only plan to be in the home for 5–7 years or less, you should seriously consider an adjustable-rate loan. If you intend on staying 20–30 years, a fixed-rate mortgage may be right for you.

How much risk are you willing to accept?
If you are the type of buyer who needs to know exactly what you will be paying each month for the term of the mortgage, a fixed-rate mortgage will fulfill this need. The fixed-rate loan, however, will also net a higher interest rate. If you are willing to take some risk of fluctuations in the interest rate, you may be able to receive a lower interest rate.

What are your income expectations?
Plan for the future. Do you anticipate a gradual or dramatic increase in your income in the next few years? If you expect a big increase, a graduated payment mortgage may be best for you.

How much cash do you have available for upfront costs?
If you have the resources, you may want to make a larger down payment to lower your monthly payment. By keeping a higher monthly payment, however, you might be able to shorten the term of the loan to a 15-year loan in order to pay it off quickly.

Keep in mind that you’ll have closing costs and fees to pay in addition to your down payment. If you don’t have much cash saved for your upfront costs, don’t despair. You may need to accept a higher monthly payment or even lower your monthly obligation by choosing an adjustable-rate mortgage.

In addition to choosing a type of loan, you must also consider which lender to use. Once again, several factors will influence your decision.

Annual Percentage Rate
This is most likely the best way to make an "apples-to-apples" comparison of lenders. The Annual Percentage Rate reflects the cost of credit on a yearly rate and includes any points and fees in addition to the interest rate.

Interest Rate
Find out the rate the lender will commit and how long the lender will guarantee it. Get any commitments in writing. As with any transaction, if it isn’t in writing it doesn’t exist.

Points and fees
These factors will vary greatly. Look out for hidden fees. Make sure the lenders disclose all fees; ask what they charge and what is included and what is not.

Loan Approval
Both approval and funding time should be considered. You don’t want to lose a prospective home because your lender takes weeks to fund your loan. A lender should be able to fund the loan within ten days.

Lender Reputation
Don’t rely on solely someone else’s recommendation. You, not your friend, must feel comfortable with your lender. If you do feel good about your lender and trust him, it will be much easier to trust his advice on what kind of mortgage will best suit your needs.

Pros and Cons of owning a rental property

Buying rental property can be one of the most secure and fastest ways to build wealth. However, before you begin your entrance into real estate investing you should consider the following pros and cons.

Main advantages:

1. Tax advantages
You can deduct certain expenses from your income – reducing the taxes you owe. Deductions can include mortgage interest, property taxes, insurance, utility bills, maintenance/upgrades, and property management fees.

2. You may be able to deduct losses for tax purposes
If your expenses exceed your rental income, you may be able to deduct that loss from any other sources of income you have. This could reduce your total tax bill.

3. You get a regular monthly income
Other kinds of investments may pay out less often or income may be less predictable.

4. Real estate value usually appreciates over time.
You may end up with a sizable profit when you sell your property after a few years. However, this is only true as a long-term investment.

As a landlord, you can deduct certain property expenses from your income – reducing the taxes you owe. If your expenses exceed your rental income, you may be able to deduct that loss from any other sources of income you have.

Key disadvantages:

1. You take on the responsibilities and challenges of a landlord
Rental units need repair – sometimes on an emergency basis. Dealing with tenants can be challenging, especially if they don’t pay their rent on time and cash flow is tight. If you hire a property manager to take care of these things for you, their salary is an added cost.

2. It may be difficult and costly to sell the property later
Real estate is not a liquid investment. That means it can take time to sell, depending on market conditions. It can also be costly to sell due to real estate and legal fees.

3. It may be difficult to finance the purchase
You must have a down payment of at least 20% when you buy a second property. You may need a mortgage. And, you will have high monthly expenses to cover when you own a building. Of course, you hope the income you receive from your tenants will cover this.

Buying and then renting a property is a lot more complicated than investing in stocks and bonds. Talk to an accountant, lawyer, mortgage broker, or other financial expert about how it may affect your taxes and financial situation, and be sure it is going to be a worthwhile investment for you.

Choosing Outdoor Lighting for Curb Appeal and Safety

 

Well-executed exterior lighting can enhance the architectural detail of your property and make your home look beautiful in the evening adding an abundance of curb appeal.  Aside from aesthetics, good exterior lighting can give you and your guests added security and peace of mind when entering and leaving your home.

Much of the success of exterior lighting depends mainly on its design. Professional lighting designers often talk about the “moonlight effect.” That’s a naturalistic look that features light no more intense than that of a full moon, but still strong enough to make beautiful shadows and intense highlights.

A well-lit front entrance enables you to greet guests and identify visitors. Wall lanterns on each side of the door will give your home a warm, welcoming look while assuring the safety of those who enter.

Install a single fixture above the garage door to provide lighting for safety and security. Consider installing a motion sensor on these fixtures or a photocell that turns the lights on at dusk and off at dawn to save energy.

Another important factor is making your home secure and safe from intruders and animals. Good lighting around the entire perimeter of your home can be a deterrent in itself. Illuminate any side of the house that would otherwise be in shadows. Spotlights installed on your eaves will accomplish this, or, for a more dramatic look, consider ground lights pointed up to graze your walls.

Steps, paths, and driveways should be illuminated to make sure family members and guests are able to move about easily and safely after dark. You can install path lights or post lanterns or attach lights to the side of the house.  Low-level path lights, which spread circular patterns of light, will brighten your walkway while highlighting nearby flower beds, shrubs, and ground cover. Low-level path lights can also be used to define the boundaries of long driveways.

If you have added exterior features like a swimming pool, an exterior porch, or an entertaining space, ensure these areas are well-lit as well.

Choose lighting fixtures that look beautiful, but also throw light a good distance away from your home. This will help illuminate dark areas and aid your vision to see outside from inside your home. If you have a large property, flood lights installed on the corners of your home will help throw light further than average wall sconces on the exterior of your home.

Another consideration to keep in mind is to select outdoor light fixtures that are energy efficient and made of durable material to suit the harsh outside temperatures during the hot summer days and cold winter nights.  In most cases, fixtures made of cast aluminum are a very durable option.

Higher Borrowing Costs See Buyers Remain on Hold

 

High borrowing costs and uncertainty on the direction of interest rates have seen many would-be home buyers remain on the sidelines in the short term. We’re seeing a slow decline in sales activity but it’s minimal and not unexpected for this time of year. Prices are adjusting and coming down, and apartments are seeing the largest increase in sales activity over last October. 

 

Ontario - Higher Borrowing Costs See Buyers Remain on Hold

Toronto, November 2, 2023 – Lack of affordability and uncertainty remained issues for many would-be home buyers in the Greater Toronto Area (GTA) in October 2023. As a result, sales edged lower compared to last year. However, selling prices remained higher than last year’s levels.

“Record population growth and a relatively resilient GTA economy have kept the overall demand for housing strong. However, more of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many would-be home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales will pick up quickly,” said TRREB President Paul Baron.

REALTORS® reported 4,646 GTA home sales through TRREB’s MLS® System in October 2023 – down 5.8% compared to October 2022. On a month-over-month seasonally-adjusted basis, sales were also down in comparison to September.

 

New listings in October 2023 were up noticeably compared to the 12-year low reported in October 2022, but up more modestly compared to the 10-year average for October. New listings, on a seasonally adjusted basis, edged slightly lower month-over-month compared to September 2023.

 

The October 2023 MLS® Home Price Index Composite benchmark and the average selling price were both up on a year-over-year basis, by 1.4% and 3.5% respectively. On a seasonally adjusted basis, the MLS® HPI Composite benchmark edged lower compared to September 2023 while the average selling price remained at a similar level. Both the MLS® HPI Composite benchmark and average price remained above the cyclical lows experienced at the beginning of 2023.

“Competition between buyers remained strong enough to keep the average selling price above last year’s level in October and above the cyclical lows experienced in the first quarter of this year. The Bank of Canada also noted this resilience in its October statement. However, home prices remain well below their record peak reached at the beginning of 2022, so lower home prices have mitigated the impact of higher borrowing costs to a certain degree,” said TRREB Chief Market Analyst Jason Mercer.

“In the current environment of extremely high borrowing costs, it is disappointing to see that there has been no relief for uninsured mortgage holders reaching the end of their current term. If these borrowers want to shop around for a more competitive rate, they are still forced to unrealistically qualify at rates approaching 8%. Following their most recent round of consultations, the Office of the Superintendent of Financial Institutions should have eliminated this qualification rule for those renewing their mortgages with a different institution,” said TRREB CEO John DiMichele

 

Ottawa MLS® October Home Sales Show Typical Lull

Ottawa, November 7, 2023 -- The number of homes sold through the MLS® System of the Ottawa Real Estate Board totaled 816 units in October 2023. This was a small reduction of 2.7% from October 2022.

Home sales were 36.4% below the five-year average and 30.8% below the 10-year average for the month of October.

On a year-to-date basis, home sales totaled 10,700 units over the first 10 months of the year. This was a substantial decline of 12.3% from the same period in 2022.

“Life is expensive these days, which likely has both buyers and sellers staying put,” says Ken Dekker, OREB President. “We’re seeing a slow decline in sales activity but it’s minimal and not unexpected for this time of year. Prices are adjusting and coming down, which is also indicative of the types of homes that are selling — apartments seeing the largest increase in sales activity over last October. While Ottawa’s inventory is slowly building, chronic supply issues mean there’s always an undercurrent of demand. Don’t let the lull fool you: now is a prime time for buyers to be looking for opportunities before the current carries us from a balanced market into seller’s territory.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

The overall MLS® HPI composite benchmark price was $638,600 in October 2023, nearly unchanged, up only 1.8% from October 2022.

The benchmark price for single-family homes was $721,600, up 2.2% on a year-over-year basis in September.

By comparison, the benchmark price for a townhouse was $501,100, nearly unchanged, up 1% compared to a year earlier.

The benchmark apartment price was $424,100, unchanged from year-ago levels.

The average price of homes sold in October 2023 was $660,836, increasing 2.9% from October 2022. The more comprehensive year-to-date average price was $671,983, a decline of 5.9% from the first ten months of 2022.

The dollar value of all home sales in October 2023 was $539.2 million, unchanged from the same month in 2022.

OREB cautions that the average sale price can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The calculation of the average sale price is based on the total dollar volume of all properties sold. Price will vary from neighbourhood to neighbourhood.

The number of new listings saw an increase of 6.6% from October 2022. There were 1,895 new residential listings in October 2023. New listings were 2% above the five-year average and 5.4% above the 10-year average for the month of October.

Active residential listings numbered 3,062 units on the market at the end of October, a sizable gain of 16.7% from the end of October 2022. Active listings haven’t been this high in the month of October in more than five years. 

Active listings were 43.8% above the five-year average and 10.9% below the 10-year average for the month of October.

Months of inventory numbered 3.8 at the end of October 2023, just up from the 3.1 months recorded at the end of October 2022. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

British Columbia - Metro Vancouver housing market holds steady in October

Metro Vancouver, 18 October 2023 -- An increase in newly listed properties is providing more choice to home buyers across Metro Vancouver1, but sales remain below long-term averages.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totalled 1,996 in October 2023, a 3.7% increase from the 1,924 sales recorded in October 2022. This total is 29.5% below the 10-year seasonal average (2,832) for October.

"With properties coming to market at a rate roughly five% above the ten-year seasonal average, there seems to be a continuation of the renewed interest on the part of sellers to participate in the market we’ve been watching this fall. Counterbalancing this increase in supply, however, is the fact sales remain almost 30% below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year."

Andrew Lis, REBGV director of economics and data analytics

There were 4,664 detached, attached, and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2023. This represents a 15.4% increase compared to the 4,043 properties listed in October 2022 and is 4.8% above the 10-year seasonal average (4,449) for the month.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 11,599, a 12.6% increase compared to October 2022 (10,305). This change is also 0.6% above the 10-year seasonal average (11,526).

Across all detached, attached, and apartment property types, the sales-to-active listings ratio for October 2023 is 17.9%. By property type, the ratio is 12.9% for detached homes, 20.9% for attached, and 21.5% for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpass 20% over several months. 

“With more supply in the form of resale inventory, and weaker demand in the form of slower sales, we’ve seen market conditions overall adjust towards more balanced conditions. It’s noteworthy that the multifamily segment remains more active than the detached segment at this time,” Lis said. “While the highest borrowing costs we’ve seen in over a decade continue to constrain affordability, a silver lining for buyers is that price increases have abated with these more balanced market conditions, meaning purchasing power is holding steady for the moment.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,196,500. This represents a 4.4% increase over October 2022 and a 0.6% decrease compared to September 2023.

Sales of detached homes in October 2023 reached 577, a 0.7% decrease from the 581 detached sales recorded in October 2022. The benchmark price for a detached home is $2,001,400. This represents a 5.8% increase from October 2022 and a 0.8% decrease compared to September 2023.

Sales of apartment homes reached 1,044 in October 2023, a 4.9% increase compared to the 995 sales in October 2022. The benchmark price of an apartment home is $770,200. This represents a 6.4% increase from October 2022 and a 0.2% increase compared to September 2023.

Attached home sales in October 2023 totalled 356, a 6.6% increase compared to the 334 sales in October 2022. The benchmark price of a townhouses is $1,100,500. This represents a 6% increase from October 2022 and a 0.2% increase compared to September 2023.

 

Alberta - Price gains continue in Calgary's real estate market as inventory remains low

City of Calgary, November 1, 2023 – October sales activity slowed over the last month in alignment with typical seasonal patterns. However, with 2,171 sales, levels were 17% higher than last year and amongst the highest levels reported for October. Sales activity has been boosted mainly through gains in apartment condominium sales as consumers seek affordable housing options during this period of high interest rates.

New listings also improved this month compared to last year, reaching 2,684 units, reflecting the highest October levels reported since 2015. Despite the gain, relatively strong sales prevented any significant shift in inventory levels, which remain over 40% lower than levels traditionally available in October.

“Despite some recent improvements in new listings, supply levels remain challenging in our market,” said CREB® Chief Economist Ann-Marie Lurie. "It will take some time to see a shift toward more balanced conditions and ultimately more price stability.”

With a months of supply of one and a half months, we continue to experience upward pressure on home prices. The unadjusted benchmark price in October reached $571,600, a gain over last month and nearly 10% higher than last October.

Detached - Both sales and new listings improved over levels reported last October. However, with 1,302 new listings this month and 976 sales, inventory levels slowed over the last month. Inventory levels remain the lowest ever reported for October. Inventory levels have declined for all homes priced below $700,000, leaving conditions exceptionally tight for lower-priced homes. The only area where conditions are not as tight as last year is for homes priced above $1,000,000, where the months-of-supply has risen to 4.3 months.

Persistently tight conditions continue to cause further price gains in the detached market. As of October, the unadjusted benchmark price reached $697,600, a slight increase over last month and 12% higher than last October. Prices trended up over the last month across every district except the South East. Year-to-date benchmark prices have increased the most in the North East and East districts.

Semi-Detached - New listings in October improved over the low levels reported last year. However, with 235 new listings and 179 sales, the sales-to-new listings ratio remained relatively high at 76%, preventing any significant change in the inventory levels. Inventory levels are nearly half the levels traditionally seen in October and have not been this low since October 2005.

 Persistently tight conditions have continued to support price growth. In October, the unadjusted benchmark price increased over the last month, reaching $628,700, a year-over-year gain of 13%. Prices trended up over September across most districts, with the most significant monthly gain occurring in the City Centre district. Like the detached sector year-to-date, the highest price growth has happened in the most affordable districts of the North East and East.

Row - The 420 new listings this month were met with 375 sales, keeping the sales-to-new listings ratio high at 89% and preventing a significant shift in inventory levels. Row inventory levels have not been this low since October 2005. At the same time, October sales reached a record high for the month, keeping the months of supply low at one month.

 Persistently tight market conditions have supported further gains in prices this month. In October, the unadjusted benchmark price reached $425,200, a monthly gain of over one% and nearly 19% higher than last October. Prices have risen across most districts, but this month, the largest monthly gain occurred in the City Centre, which has also seen the lowest year-to-date price growth compared to the other districts.

Apartment Condominium - Record high sales in October were possible thanks to the steep gain in new listings.   However, with 727 new listings and 641 sales, the sales-to-new listings ratio remained high at 88%, and inventories continued to trend down. The decline in inventory levels has been driven mostly by condos priced below $300,000, which now represent only 38% of all inventory, a significant decline compared to the 53% reported last year.

 Persistent seller market conditions have driven much of the recent gains in prices. The unadjusted October benchmark price reached $316,600 in October, a monthly gain of over one% and a year-over-year increase of 16%. Year-to-date price gains have occurred across every district in the city, with some of the largest gains arising in the lower-priced North East and East districts.

Home Sales Picked up in October, but Still Subdued

 In October, the average sale price for all residential properties in Waterloo Region was $767,848. This represents a 0.6 per cent increase compared to October 2022 and a 0.1 per cent increase compared to September 2023.

• The average price of a detached home was $890,591. This represents a 1.1 per cent increase from October 2022 and an increase of 0.1 per cent compared to September 2023.
• The average sale price for a townhouse was $644,511. This represents a 1.4 per cent increase from October 2022 and an increase of 0.7 per cent compared to September 2023.
• The average sale price for an apartment-style condominium was $476,166. This represents a decrease of 2.6 per cent from October 2022 and a decrease of 4.8 per cent compared to September 2023.
• The average sale price for a semi was $658,133. This represents an increase of 5.7 per cent compared to October 2022 and a decrease of 2.4 per cent compared to September 2023.

“While sales are down, we are seeing an increase in the number of homes available for sale, which is good news for buyers,” says Bell. “However, many prospective buyers have been sidelined by higher borrowing costs and selling prices that continue to demonstrate resilience.”

There were 1,133 new listings added to the MLS® System in Waterloo Region last month, an increase of 36.0 per cent compared to October last year and a 20.2 per cent increase compared to the previous ten-year average for October.

The total number of homes available for sale in active status at the end of October was 1,408, an increase of 53.4 per cent compared to October of last year and 13.0 per cent above the previous ten-year average of 1247 listings for October.

There were 2.5 months of inventory at the end of October, a 92.3 per cent increase compared to last year and 35.1 per cent above the previous 10-year average. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in October was 21, compared to 22 days in October 2022. The previous 5-year average is 19 days. 

These statistics provide a snapshot of the real estate market in the Waterloo Region in October, showing both positive and challenging aspects for buyers and sellers. WRAR encourages buyers to reach out to local Realtors for valuable insights about the current state of the local market and to receive tailored advice based on their specific needs.

View our HPI tool here to learn more: https://wrar.ca/hpi/