10 Best Ways to Boost Your Home Value

Are you searching for ways to increase the value of your beloved abode? If so, we’ve got you covered.

Whether you are planning to sell soon or just want to enhance your investment, these 10 simple and effective strategies will help you boost the value of your home. Let’s begin!

10 Proven Ways to Add Value to Your Home

1) Improve Your Curb Appeal

First impressions matter! One expert strategy to enhance your home’s curb area is to maintain a well-kept lawn, trim the bushes, and add a fresh coat of paint to the front door.

A welcoming exterior not only creates positive vibes but it also instantly makes your home more appealing.

2) Add a Fresh Coat of Paint

A new paint job works wonders for both the interior and exterior. Stick to neutral colors to appeal to a wider audience and create a clean, modern look. Fresh paint gives the impression of a well-maintained and updated home.

3) Revamp Your Kitchen

They say the kitchen is the heart of the home, and potential buyers certainly pay attention to it. Consider updating your kitchen with modern appliances, new countertops, and stylish backsplash. Even small changes can make a big difference in perceived value.

4) Upgrade Your Bathroom

It is not enough that the bathroom is clean. Swap out old faucets, install new lighting, and update fixtures to give your bathroom a fresh and inviting feel.

A minor bathroom upgrade can bring major returns. We emphasize again, do not overlook the bathroom!

5) Make Your Home More Energy Efficient

Are you looking for buyers who would not mind paying a little extra or a premium for your property? How about targeting the environmentally conscious customer?

Incorporate energy-efficient features into your home that would help future owners save up on utility bills. Consider installing LED lighting, a programmable thermostat, and energy-efficient windows. Such upgrades demonstrate long-term value.

6) Give Your Flooring a Makeover

Replace worn-out carpets with hardwood or laminate flooring. These options are not only more durable but also add a touch of elegance to your home.

Prospective buyers often prefer homes with low-maintenance and aesthetically pleasing flooring.

7) Declutter and Organize

A clutter-free home feels more spacious and inviting. Take some time to declutter each room, organize closets, and clear countertops. This simple step costs nothing but can significantly enhance your home’s appeal.

8) Beautify Your Landscape

A well-landscaped yard can be a game-changer. Plant some colorful flowers, lay down fresh mulch, and create a cozy outdoor seating area. A beautiful backyard extends your living space and adds to the overall appeal.

9) Add a Deck or Patio

Outdoor living spaces are in demand. If you have the space, consider adding a deck or patio where potential buyers can imagine themselves relaxing or hosting gatherings. This addition provides both functional and aesthetic value.

10) Add Relevant Finishing Touches

Small details can leave a lasting impact. Replace old doorknobs, update light fixtures, and ensure all hardware is in good condition. These finishing touches may seem minor, but they collectively contribute to a polished and well-maintained home.

Conclusion

By following these 10 simple strategies, you are well on your way to boosting your home’s value.

Remember, the goal is not just about making your home look expensive, but about creating an attractive and comfortable space that appeals to potential buyers.

Each step you take, no matter how small, can make a difference. So go ahead, take that paintbrush, plant those flowers, and transform your home into a valuable asset that you can be proud of.

Stay tuned to our blog for more updates on Homes for Sale near Toronto. Remember, whether you’re buying or selling, Team Arora is here to guide you every step of the way.

Navigating the Challenging Housing Market with Positive Possibilities for Buyers and Sellers

In recent times, the property market has experienced significant fluctuations, with policy interest rate hikes causing a downturn in home sales. This might paint a bleak picture at first glance, but in reality, there are numerous positive possibilities that can arise for both buyers and sellers in such a turbulent market. In this blog post, we’ll explore some of the best strategies and options to stay afloat and thrive despite these apparent hardships.

1. Staying Options – Making the Most of the Situation

In a challenging market, staying options become one of the best opportunities for home sellers and buyers. For many, this might mean holding onto their current property until favorable market conditions prevail. Here are some ways to make the most of the time you have while the market improves:

  • Home improvement: Use this time to make valuable improvements and renovations, thus increasing your property’s value when it comes time to sell.
  • Renting out: If you’re a homeowner with the ability to rent out your property in the meantime, this could be a great way to generate some income while waiting for the right time to sell.
  • Building equity: For buyers, this period allows for more time to save up and build equity to put towards a future property when the market stabilizes or declines in housing market.

2. Low Sales – A Blessing in Disguise for Buyers

With fewer homes selling due to the current market situation, buyers have a unique advantage. The low volume of sales provides ample time for potential buyers to thoroughly research and choose the right property that suits their needs and investment goals. Buyers can utilize this opportunity to:

  • Shop around: Take advantage of the reduced competition to carefully inspect various properties, ultimately finding the best fit in terms of neighborhood, amenities, and price.
  • Negotiate: A reduced number of buyers in the market increases your bargaining power when it comes to negotiating property prices in housing market.
  • Secure financing: While the market is slow, buyers can take the time to secure the best mortgage or financing options to ensure a smoother transaction when they eventually find the perfect property.

3. The Power of Waiting – Seizing Opportunities for Sellers

Though it may appear counterintuitive, the slow market can also benefit sellers by allowing them to strategize and seize optimal opportunities when they present themselves. Some actionable steps for property sellers during this time include:

  • Market research: Conduct thorough research on the current market dynamics and trends, as well as forecasted market changes. This will provide valuable insights and guidance on the right time to sell.
  • Professional advice: Seek counsel from industry professionals such as real estate agents, property managers, and financial advisors to help determine the best course of action for your unique situation.
  • Marketing: Use this time to create a strong marketing campaign for your property, ensuring that it stands out and attracts the right kind of attention from potential buyers.

Be Patient In Current Housing Market

Although the current down real estate market offers its fair share of challenges, it also presents unique opportunities for both buyers and sellers to emerge victorious. By carefully re-evaluating your goals, staying informed on market trends, and being patient, you can potentially turn the tide in your favor and achieve what might have seemed impossible in this seemingly unfavorable climate.

5 Best Cities to Invest in Ontario and Maximize Your Returns

Are you considering investing in the vibrant province of Ontario, Canada? Look no further!

Ontario offers a multitude of opportunities for real estate investors, with several cities standing out as prime locations for lucrative investments.

This article will guide you through the best cities to invest in Ontario, providing you with valuable insights to help you make informed decisions.

And if you are seeking expert guidance throughout your investment journey, Team Arora, Ontario’s premier consultancy agency, is here to offer unparalleled support and expertise.

 

Top 5 Cities to Invest in Ontario in 2023

 

Toronto: The Urban Powerhouse

Leading the pack is the bustling metropolis of Toronto – Ontario’s largest city and financial hub. Boasting a diverse economy, a robust job market, and strong rental demand, Toronto presents an ideal environment for real estate investors. The city offers a range of investment opportunities, from residential properties to commercial spaces which caters to various investment strategies.

While prices may be higher in Toronto, the potential for long-term appreciation and rental income makes it a highly attractive choice.

Ottawa: The Government Capital

As Canada’s capital, Ottawa offers stability and a thriving economy anchored by government institutions. The city’s steady job market and strong rental demand make it an excellent choice for real estate investors.

Ottawa’s relatively affordable housing market, coupled with its consistent economic growth, presents an opportunity for investors to enjoy healthy returns. Whether you opt for residential properties or commercial ventures, Ottawa’s stable and reliable market should not be overlooked.

Hamilton: The Hidden Gem

Nestled on the western shores of Lake Ontario, Hamilton is rapidly emerging as an investment hotspot. This hidden gem combines affordability, a thriving arts scene, and proximity to major transportation routes which makes it an appealing choice for investors.

The city’s revitalization efforts have attracted businesses and young professionals, fueling demand for rental properties. Hamilton’s potential for future appreciation and attractive rental yields make it an exciting investment destination.

Waterloo: The Tech Hub

Home to renowned educational institutions and a thriving tech sector, Waterloo has earned its reputation as Canada’s Silicon Valley. This vibrant city offers exceptional investment prospects, particularly in the tech-driven real estate market.

The demand for rental properties is strong, driven by a highly skilled workforce and a continuous influx of students and professionals. Investing in Waterloo allows you to tap into the city’s innovation ecosystem and benefit from long-term growth opportunities.

London: The Education Epicenter

Known for its esteemed universities and diverse student population, London presents an investment landscape brimming with potential. The city’s rental market thrives on student accommodation which creates a steady demand and provides a stable rental income for investors.

London’s affordability, combined with its growing economy and robust educational sector, position it as an attractive choice for both short-term and long-term investments.

Conclusion

Ontario offers an array of exciting investment opportunities, and these five cities stand out as the best choices for real estate investors.

Whether you are seeking a bustling urban center like Toronto, a stable government capital like Ottawa, a hidden gem like Hamilton, a tech hub like Waterloo, or an education epicenter like London, each city presents unique advantages for investors.

However remember this, making informed investment decisions is crucial to maximize your returns. That is where Team Arora, Ontario’s leading consultancy agency, comes in. With our extensive knowledge, expertise, and personalized guidance, our consultants ensure you have a trusted partner throughout your investment journey in Ontario.

So, seize the opportunity, explore the potential of Ontario’s real estate market, and let Team Arora help you unlock your investment success!

 

The Impact of Interest Rate Hike: Unraveling the Low Living Standard

Interest rates play a crucial role in shaping the economy and impacting various aspects of our lives. When interest rates rise, it triggers a series of effects that can have far-reaching consequences. In this blog, we will delve into the impact of an interest rate hike, with a particular focus on how it contributes to the persistent low living standard experienced by many individuals and households.

Increased Cost of Borrowing and Mortgages

One of the immediate consequences of an interest rate hike is the increased cost of borrowing. This affects not only individuals seeking personal loans but also potential homeowners looking to secure mortgages. With higher interest rates, monthly mortgage payments become more burdensome, making it increasingly challenging for people to afford their dream homes. Consequently, the dream of homeownership becomes elusive, leading to a decline in living standards.

Reduced Disposable Income and Consumer Spending

When interest rates rise, it becomes more expensive for consumers to borrow money. As a result, disposable income shrinks as a significant portion is diverted toward servicing debts. With less disposable income, individuals and families are compelled to cut back on their spending, particularly in non-essential areas such as leisure activities, dining out, or vacations. This decrease in consumer spending can have a detrimental impact on local businesses, leading to reduced economic growth and further exacerbating the low living standard.

Impact on Small Businesses and Job Opportunities

Small businesses, often the backbone of any economy, bear the brunt of an interest rate hike. Many small enterprises rely on loans to fund their operations and expansion plans. As borrowing costs rise, they face increased financial strain, which hampers growth and may even lead to closures. Consequently, job opportunities diminish, leaving individuals unemployed or underemployed, further perpetuating the cycle of low living standards.

Savings and Investments Take a Hit

Interest rate hikes also impact savers and investors. While higher interest rates may offer better returns on savings accounts, the overall effect can be detrimental. With increased borrowing costs and reduced disposable income, individuals find it difficult to save or invest for the future. This lack of savings and investments hampers long-term financial stability and inhibits upward mobility, contributing to the ongoing low living standard.

Volatility in Financial Markets

Interest rate hikes can trigger volatility in financial markets, causing fluctuations in stock prices, bond yields, and currency values. This volatility can have a cascading effect on various sectors of the economy, potentially leading to job losses, reduced investment opportunities, and overall economic uncertainty. Such market fluctuations and economic instability can further hinder efforts to improve the living standards of individuals and communities.

The impact of an interest rate hike extends far beyond the realm of financial transactions. It affects the daily lives of individuals and households, perpetuating a low living standard. From increased costs of borrowing and reduced consumer spending to the adverse effects on small businesses, job opportunities, savings, and investments, the consequences of interest rate hikes are widespread. Understanding these effects is crucial for policymakers, economists, and individuals alike, as it enables us to develop strategies to mitigate the challenges and work towards a more prosperous and equitable future.

KWC Are The Top 3 Areas To Invest In The GTA! Now What Is KWC!

GTA is one of the most sought-after cities for real estate investment. Kitchener, Waterloo, and Cambridge are the top three cities in the GTA that provide an excellent opportunity for investors.

Kitchener With Potential Investors

Kitchener has been making headlines lately with its United Taxi initiative that offers to drive dialysis patients to Grand River Hospital free of charge when they can’t get there any other way. This demonstrates how this city takes care of its citizens and could be an attractive option for potential investors.

Meanwhile, Waterloo small businesses have adapted their payment system technology to keep up with modern trends, making it a great choice for entrepreneurs looking to start their businesses or existing companies wanting to expand.

Cambridge Best Investment Along With Neighbour

Cambridge takes it a step further by expanding its program that provides $500 a month to low-income families. This helps support the local economy and gives an additional incentive for investors who are looking for potential returns while helping the community at the same time.

Overall, Kitchener, Waterloo, and Cambridge have a lot of potentials when it comes to real estate investments. With their various initiatives and news updates, these cities are growing each day and offer great opportunities for anyone looking to invest in the GTA. Investing in any of these three cities could be a wise decision for any prospective investor. to expand.

Cambridge stands out because of its program that provides low-income families with $500 a month. This shows the city’s dedication to helping those in need and could be an attractive option for investors who are looking to make a positive impact on the community while making money.

With these great initiatives and the cities’ continued growth, Kitchener, Waterloo, and Cambridge remain excellent choices for real estate investment in the GTA. Investing in any one of these regions could be highly lucrative, so be sure to look into them as soon as possible!

Right Now Investment

Investing in any one of these regions could be highly lucrative, so be sure to look into them as soon as possible! These cities are continuously growing and offer great potential for real estate investors. With their various initiatives and news updates, Kitchener, Waterloo, and Cambridge remain excellent choices for anyone looking to invest in the GTA. Don’t miss out on this amazing opportunity – invest now and reap the benefits of your wise decision!

Eager to start investing in the GTA? Kitchener, Waterloo, and Cambridge are three of the best cities in the GTA that offer excellent opportunities for real estate investors. With their various initiatives and news updates showing consistent growth, these cities remain some of the top choices when it comes to real estate investments. Kitchener’s United Taxi initiative is just one example of how this city takes care of its citizens and could be an attractive option for potential investors. Meanwhile, small businesses in Waterloo have adapted their payment system technology to keep up with modern trends, making it a great choice for entrepreneurs. Cambridge’s initiative to provide $500 a month to low-income families not only helps the city’s economy but could also be an additional incentive for investors. Investing in any of these three cities could be highly lucrative – don’t miss out on this amazing opportunity! Start investing now and reap the benefits of your wise decision!

Thanks for reading! We hope you found this information helpful and make sure to stay tuned for more real estate investment tips. Good luck!

Paying Advance While Buying a Property? Keep These Things in Mind

Buying a property is a significant investment decision, especially in today’s competitive market. As a businessman, investor, or Canadian homebuyer, it’s crucial to ensure you have a complete understanding of all financial aspects involved in the process. One key area where many buyers often make mistakes is regarding advance payments. This blog post will discuss the importance of understanding various advance payments, such as stamp duty, advance TDS payment, and home loan advance payments, to help make your property buying experience smoother and more secure. 

Stamp Duty: The Tax You Cannot Ignore

Whether you’re buying residential or commercial property, stamp duty is an essential aspect that cannot be overlooked. Stamp duty, a tax paid to the local government or provincial authority, helps legalize and authenticate your property-related documents. Recent news highlights the importance of being aware of any changes in stamp duty rates or exemptions that can impact your property purchase financially. For example, Ontario recently increased its non-resident speculation tax as part of its fight against housing inflation in the province.

Quick tips to consider:

Stay updated on the prevailing stamp duty rates in your province or territory

– Factor in stamp duty amount into your property buying budget

– Consult with a lawyer or accountant to ensure you comply with local regulations

Advance TDS Payment: A Modern Real Estate Tax

As a property buyer in Canada, it’s essential to know about the advance TDS (Tax Deducted at Source) payment, which is becoming more widely prevalent in the real estate industry. Advance TDS payment is a tax deducted by the buyer from the amount payable to the seller, acting as a down payment on the overall tax owed. Notably, any foreign national who buys a property in Canada is subject to paying TDS. Staying informed about advance TDS payments will ensure you avoid penalties and interest.

Home Loan Advance Payment: Plan Your Finances Wisely

When purchasing a property, you may opt for a home loan to finance your investment. It’s important to note that your lender may require you to make an advance payment, also known as a downpayment, which is typically a percentage of the property’s purchase price. Lenders often use this to gauge your financial stability and commitment to repay the loan.

Actionable insights for home loan advance payments:

  • Research the minimum downpayment requirements for various lenders.
  • Consider increasing your downpayment to obtain better loan terms.
  • Use a mortgage calculator to determine your ideal downpayment amount.
  • Conclusion: Equip Yourself with Knowledge for a Secure Purchase.

Understanding and planning for advance payments, such as stamp duty, advance TDS payment, and home loan advance payments, can save you from unexpected financial burdens during your property-buying journey. As a savvy businessman, investor, or Canadian homebuyer, equipping yourself with knowledge about these advance payments will ensure you make well-informed decisions, enhance your financial security, and work towards a property investment that brings long-term returns.

Ready to delve deeper into property investing? Engage further with our content and share it with your network so that others can benefit from these insights and navigate their property purchase with confidence.

Why now is the best time to invest in GTA Real Estate?

Those new to the real estate market might find it confusing and hard to predict. This can cause people to hesitate about buying a home when they see headlines with terms such as “inflation” or “recession.”It’s easy to forget that real estate markets are cyclical, but annual real estate cycles create the same inventory and buyer patterns every year. The economic cycle also has stages that form predictable patterns, although it takes years to reach each stage. In this article, we explain how the stages of the real estate cycle and economy work together. We also show how a recession can be beneficial for home buyers.

Keep an Eye Out for Yearly Changes

The four stages of the annual real estate cycle are very predictable:

  1. Spring is the busiest season for home buying and selling, but if you’re looking to buy a house, prices will be higher due to less inventory. However, some sellers might be more willing to negotiate since their homes have been on the market for longer than they anticipated.
  2. During the spring months of April to June, temperatures are warm and motivating for buyers as well as sellers. Although there are more buyers during this time, leading to more competition amongst sellers, sellers still have an advantage when it comes to price. However, at this time of year buyers also have a wider variety of choice.
  3. Prices from July to September are more reasonable as the housing market is slightly calmer than usual and people are less eager to list their homes. This means that houses stay on the market for longer, giving buyers more power in terms of price negotiation since sellers worry that their homes won’t sell until autumn. So summertime tends to be ideal for those looking to buy a property; there’s a wider selection available and agents are often keener to agree on a lower price.
  4. From October to December: Not only do temperatures drop, but also the number of houses on the market declines. Although buyers might be less interested in residences that have been lingering, sellers are often more willing to accept lower yet reasonable offers so they don’t have to list their property again come springtime. With fewer people looking and homes available, this presents an opportunity for both parties involved – as long as sellers don’t mind seeing prices around fair market value.

The annual cycle provides an understanding of when it is best to buy depending on what you prioritize, lower prices or more choices. If saving money is most important to you, stages 3 and 4 are the best time to purchase, whereas if having plenty of options is more your style, stages 2 and 3 would be better suited for you. Stage 1 still has some advantages even if you aren’t too choosy. Although low inventory can lead to steeper prices, there are also fewer buyers during this stage which could result in sellers being open to negotiation.

Reading the Economy

Next, here’s how the economic cycle impacts real estate:

  • When the economy is strong, unemployment rates are low, and buyers are searching for homes in high numbers, it creates what we call a “sellers’ market.” In this type of market, vacancies become increasingly rare which drives up competition and prices. Although it may feel like there are fewer homes on the market during this phase, actual inventory levels don’t change much. It’s more that the number of buyers decreases while demand remains relatively steady. From a buyer perspective, this stage is often the most difficult because going against other bidders becomes commonplace.
  • With an abundant housing market and few buyers, Hyper-Supply creates a buyer’s market where house prices drop due to the lack of demand. Furthermore, too many homes can lead to devastating job loss in the home-building industry as construction begins to slow down.
  • The recession has created a buyer’s market in terms of real estate. With more homes available and fewer buyers, prices are lower than normal. This presents an opportunity whether you’re looking for a home to live in or an investment property. Investors are eager to take advantage because renting covers their expenses while they wait out the recession, after which they can expect their equity to grow along with the economy. The downside is that there is increased risk of job loss and higher interest rates during this time period.
  • As the economy slowly improves, now is not necessarily the best time to buy a house. Although rates are low, demand is high, which means prices will continue to rise. By waiting and watching the market, you can take advantage of potential drops in interest rates and increase your negotiating power when inventory levels are higher.

A recession is often the best time for real estate investors and homebuyers to swoop in and take advantage of more flexible budgets.

Where We Are Today

With inflation rising at an unprecedented rate, the government had to take action to keep it under control. And what did they do? They raised interest rates. Higher interest rates discourage consumer spending and help reduce debt levels. However, this also often leads to recession because less spending means businesses make less revenue. Higher interest rates tend to scare off potential buyers who are worried about increased monthly payments. However, higher rates also lead to inflation and housing price drops – which can be a good thing for savvy shoppers. If you have some flexibility in your budget and a reasonable down payment saved up, you may be able to find a balance between higher interest rates and lower prices. Additionally, when it comes time to renew your mortgage, you should see your interest rates drop – meaning your mortgage payments will become more manageable and you’ll build equity faster.

Where We’ll Be Next Year

The government’s only method to battle inflation is through increasing interest rates, but research indicates there will be a recession in Canada by late 2022. Although it’ll be modest, businesses and jobs will start recovering by early 2023. The silver lining here is that the shorter the recession period, the fewer job losses we experience. However, if the recession is short-lived, we aren’t as threatened by that risks. If predictions are correct, prices for housing will drop up to 15% in 2023’s second quarter. Based on the annual real estate cycle, this would be perfect timing. By summertime, when things have cooled down and prices are at their lowest point already , a 15% price reduction would make properties very appealing .

Looking back can help you prepare for the future! Check out our blog about past trends in the Toronto real estate market to get ahead of the competition.

With the Toronto housing market set to bounce back in the second half of 2023, now is the perfect time to consider investing in GTA real estate. According to the Real Estate Board, home prices are predicted to soar in the coming years, and with a strong demand for ownership housing, it’s an opportune time to get into the market. If you’re looking for expert guidance on investing in the GTA real estate market, turn to the experienced realtors at Team Arora. With a deep knowledge of the local real estate landscape, we can help you find the best properties and make informed investment decisions. Contact us today to learn more

The Bottom Line

Right now is an excellent time to buy a house because prices are low and fewer people are buying. Since there are more houses available than buyers, sellers are open to negotiation. You’re in a great position if you’re thinking about buying during or after a recession for the following reasons:

  • You can see things evening out between your interest rates and the lower purchase price, making it easier to manage your mortgage.
  • With lower prices, your down payment will go further. This way, you have the opportunity to buy in a nicer neighborhood or get a bigger home.
  • By buying now, you’ll pay less and end up with more equity when prices rebound after the recession.
  • When interest rates are low, it’s a great time to refinance your mortgage. You can extend your terms to make your monthly payments more affordable or even put that extra money towards a lump sum payment at the end of the year to pay down your mortgage faster.

A recession offers a balanced market ideal for real estate investors and homebuyers working with a more flexible budget.

GTA home prices up 28% from last year: TRREB

TORONTO — There was no relief for Greater Toronto Area homebuyers last month as the average home price increased up to nearly 28 per cent when compared with last year as a lack of supply continued to hamper the market.

The Toronto Regional Real Estate board said Thursday the average selling price for a home in the region surpassed $1.3 million last month, up from just above $1 million last February and more than $1.2 million in January of this year.

The average price of a detached home hit more than $1.7 million last month, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000.

The Ontario board laid much of the blame for the soaring prices on demand greatly outpacing supply and thus, fueling a market where bidding wars, few sellers and a frenzied atmosphere have been the norm.

“I’ve had clients break down and cry for me because when they lose out on a bid, they’re just so frustrated,” said Despina Zanganas, a Toronto realtor with PSR Brokerage. “They put in what they think is really reasonable and it goes for like $100,000 more than they would have expected.”

Condo prices, she said, have been “crazy crazy crazy” in recent months because people are realizing that houses are increasingly expensive, so they are shifting to the most affordable homes “just to get their foot in the door.”

Many sellers also have high expectations. They’re listing homes at elevated prices and if they don’t get the amount they want, she has seen them relist again for a higher amount, driving more anxiety to buyers.

But over the last week, Zanganas has noticed a slight easing in the market and some homes she has kept tabs on have received far fewer showings than she would have predicted.

The board made similar observation after it detected in February that the region is making a “modest move” toward a “slightly more balanced” market.

Those traces of an easing came in the form of new listings, which are still down from a year ago, but by a marginally lesser annual rate than sales.

New listings for the month totalled 14,147, an almost seven per cent drop from 15,146 last February.

“People are just holding onto their houses because there’s no inventory,” Zanganas said.

“If you sell, how are you going to buy? And it’s probably not going to be a step up.”

Meanwhile, 9,097 homes changed hands last month compared with 10,929 last February and 5,622 in January of this year.

That means February home sales were down compared with the all-time record set in 2021, but still eked out the second highest sales rate for the month.

TRREB had forecast sales would be lower this year because many people rushed to purchase homes last year or in the early weeks of 2022 in a bid to get ahead of looming interest rate hikes.

On Wednesday, the Bank of Canada hiked its benchmark interest rate to 0.5 per cent from 0.25, where it has sat for the last two years of the COVID-19 pandemic and served as an incentive to cash-strapped buyers.

TRREB believes the rate hike will have a “moderating effect” on home sales, but will be countered by substantial immigration levels and a continued lack of supply.

It does not see home prices abating in the near-term.

“Because inventory remains exceptionally low, it will take some time for the pace of price growth to slow,” Jason Mercer, the board’s chief market analyst, said in a news release.

“Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they resituate themselves in the market.”

This report by The Canadian Press was first published March 3, 2022.

By Tara Deschamps, The Canadian Press

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