2021 was a landmark year for the real estate market in Canada. Not only did we see some of the busiest months on record, but we also saw housing inventory drop to the lowest level on record. Across the board, it was a record-setting year too, with prices rising and interest rates at the lowest they’ve been in years. 

For buyers, 2021 has been a tumultuous year, to say the least, and if you’ve been following the real estate market closely as we have, you’ll know that buying a home in these conditions is sometimes challenging.

So what does 2022 hold for the real estate market? Only time will tell, but we can make a few assumptions and predictions about what we will see in the new year. In this post, we’re providing our insight and advice on buying a home in 2022. 

Let’s get started…

Interest Rates are Rising

One of the biggest drivers of the current market conditions is the low-interest rates we are currently experiencing. Essentially, the Bank of Canada initially lowered interest rates in an effort to help the Canadian economy during the pandemic. As the country’s pandemic recovery continues to improve, regulators have determined that it is now safe to start increasing the rates again.

Expert economists predict that we will see interest rates go up at least three times in the next year or so, with the first jump happening sometime in the spring. 

As a buyer, this means you should do what you can to lock in a mortgage rate with your preferred lender sooner rather than later. Most mortgage interest rates can be secured for 30-90 days, so even if you are planning to purchase in February or March of 2022, you should get a head start with your mortgage approval process now to fully benefit from the current low-interest rates. 

Our team hosts monthly webinars for first-time buyers. Sign up here to learn everything you need to know about buying. 

The Market Will Remain Competitive

Housing supply remains a significant issue facing today’s buyers. Simply put, there are not enough homes on the market right now to satisfy the demand of buyers who want to purchase. As a result, many homes that are listed for sale sell quickly and often over the asking price. In many cases, listings go into a multiple offer situation where there are numerous buyers vying for the home and competing to present the best offer. 

So far, we believe that the supply issue will remain present well into 2022, and therefore, we will continue to navigate a competitive seller’s market. 

The best way to find success buying in this type of market is to work with a professional real estate agent who knows sellers in your area and can help you by showing off-market listings and helping you to craft compelling offers that will motivate sellers while also preserving your investment and protecting your best interests. 

Looking for your dream home? Check out our featured listings right here.

Tradition is No Longer the Status Quo

Most real estate markets across the country have two distinct ‘busy’ seasons. Typically, the fall market and the spring market are the most active markets in real estate. In fact, many sellers will strategically list their homes at those times because they know that most buyers will be active in the busy periods. 

However, after 2021, we can say with some confidence that this decades-old tradition is not as relevant as it used to be. More sellers are choosing to list their homes at a time that works for them on a personal level. 

There are many benefits to listing a home for sale in the ‘offseason’, and as a result, buyers need to be available and ready at all times of the year, not just during the traditional fall and spring markets.

We’re passionate about helping buyers find their perfect home. Check out some of our buying resources here:

• Our Top 6 Milton Condo Buildings for First-Time Buyers
• 5 Questions You’ve Always Wanted to Ask a Mortgage Broker
• A Buyer’s Guide to Pre-Emptive Offers
• Our Top 8 First-Time Buyer FAQs

Canadians Will Become More Concerned with Affordability

Limited housing supply and increased buyer demand will continue to contribute to rising prices in the Canadian market. However, at the same time, Canadians are becoming more concerned with affordability. 

As a result, homes with investment opportunities such as duplexes and basement apartments might become more popular in the future. 

Along with this type of thinking, many Canadians are still looking for homes with more space. Working from home is becoming more prevalent in the wake of the pandemic, and although buyers won’t exit urban markets at the same pace as 2020, we do expect to see many buyers choose to move out of bigger cities like Toronto and invest in smaller communities with more space and lower prices.

The Liberal Party’s Plans

After the federal election from this past fall, we learned a lot about what the Liberal Party has in store for Canadians when it comes to the housing market. The government has promised to implement policies such as a tax-free first-time home buyer savings account, rent-to-own measures, a buyer’s bill of rights, and improvements to the first-time home buyer’s incentive program, and more. 

How to Buy a House in 2022

If buying a new home is on your list to do for 2022, the best way to go about it is to work with a professional REALTOR®. In a competitive seller’s market when market conditions are not favourable for buyers, you need someone on your side to help give yourself an advantage. 

Professional REALTORS® know the area and the market and can provide you with advice and strategies to appeal to sellers, find your dream home, and successfully buy a house this year. 

Want to learn more about buying a home in Canada this year? Download our buyer’s guide here. 

This Candy Cane Caprese Board is a fun and delicious appetizer board for holiday entertaining.

November 2021 – GTA Housing Market News

What is going on with the real estate market?

Here are the November stats:

Average sale price is up 13.2% year over year ⁠
⁠
Supply continues to be an issue across all home types ⁠
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First-time buyers made a big come back this year entering the real estate market & as population growth picks up over the next two years we anticipate the condo and townhome segments to remain popular ⁠

Milton Real Estate Market

The average price in Milton $1,316,700

Burlington Real Estate Market

The average price in Burlington $1,224,800

Oakville Real Estate Market

The average price in Oakville $1,418,000

Have questions about the market? Contact us today to learn more!

Previous Reports on GTA Housing Market News

October September August July

For many Canadians, homeownership is one of those life goals that you work hard to achieve. And once you’ve arrived, there’s nothing that feels better. However, today, buying your first home can present a challenge. 

One of the best strategies for first-time buyers to get their foot in the door is by purchasing a condo. Condos are a great investment and since they are typically less expensive than single-family detached homes, it’s more affordable for first-timers to save a downpayment and finance the purchase. 

Additionally, condos are typically located in accessible areas close to amenities such as dining, retail, transit, and more. Condos also minimize the maintenance for the homeowner, since much of the building upkeep is covered by condo association fees. 

When you consider the trifecta of affordability, location, and convenience, it becomes totally clear that condos are an excellent investment for those entering the market for the first time. 

If you’re looking for a great condo opportunity, you can start with our top 6 Milton condo buildings for first-time buyers here: 

1. GreenLife Downtown 

Situated at 383 Main Street East in Milton, GreenLife Downtown is a fantastic opportunity for environmentally-conscious buyers. This six-storey condo building features fantastic high-efficiency and environmentally friendly tech such as solar panels and geothermal heating. 

With its prime location in the heart of Old Milton, GreenLife Downtown offers fantastic views of the Niagara Escarpment while remaining close to urban conveniences. 

Built in 2012, the building features various unit sizes and floor plans running from 685-1,375 square feet. One of the main selling points of GreenLife Downtown is the affordable condo fees, ranging from $78-$160 per month, it’s a great value when you consider the building amenities such as the environmentally friendly development, party room, and fitness room. 

Want to learn more about living in Milton? Check out some of our other Milton-centric blogs right here:

• Thinking of Moving to Milton? Check Out These Area FAQs
• Your Quick Guide to Milton Real Estate
• Your Quick Guide to Living in Milton

2. GreenLife Westside

If downtown doesn’t appeal to you, consider the GreenLife Westside building. Built in 2014, this six-storey energy-efficient building is located at 33 Whitmer Street in Milton. Although public transit in this area is not as accessible as downtown, GreenLife Westside has ample parking for residents and visitors who drive. 

The building is close to urban amenities such as the local Shoppers Drug Mart, Starbucks, and Ajs The Grocery found only a 10-minute walk away. Nature lovers can also enjoy the convenience of having several fantastic parks and walking trails nearby including Centennial Park, Rattlesnake Point, and Kelso Conservation Area. 

Like its downtown partner, GreenLife Westside has a variety of floorplans and unit sizes ranging from 647 square feet to 1470 square feet. The building also includes a party room, meeting room, recreation room, security system, and barbecues permitted. 

3. Ambassador Condominiums

The Ambassador Condominiums consist of two six-storey buildings located at 1419 and 1421 Costigan Road in Milton. Build by Valery Homes in 2014, The Ambassador includes 150 units of varying sizes from 602 square feet all the way up to 1,354 square feet. 

Surrounded by green space and featuring beautiful building amenities such as a designer lobby and a sunroom lounge overlooking the yard, this condo was built to impress. The building amenities include a party room and exercise room.

Situated in a quiet residential neighbourhood, The Ambassador is close to the Milton GO Station as well as the 401 for easy commutes and transit access. The area also features abundant parks, walking trails, dining, shopping, and other conveniences. 

4. Viva and Viva2 Condominiums

Built in 2016 and 2017 respectively, Milton’s Viva and Viva2 Condominiums are situated in the residential neighbourhood of Clarke. These four-storey buildings are located at 1360 and 1370 Costigan Road. 

Close to outdoor recreation such as parks, walking and bicycle paths, and more, these condos are perfect for first-time buyers who want to capture the beauty, convenience, and comfort of living in south Milton–an area that is quickly on the rise! 

With one and two-bedroom options and floorplans ranging from 585-1,040 square feet, Viva and Viva2’s open-concept, contemporary design provides opportunities for first-time buyers, investors, and downsizers alike. 

The buildings feature a party room and proximity to transit like the 401 and Milton GO Station. 

Buying your first home can be complicated, but it doesn’t have to be! Read some of our first-time homebuyer blogs right here:

• 5 Questions You’ve Always Wanted to Ask a Mortgage Broker
• Our Top 8 First-Time Homebuyer FAQs
• Multiple Offer Scenarios: Tips for Homebuyers

5. Parkside Residences 

Located at 1379 Costigan Road, Parkside Residences is a six-storey condominium complex built in 2010. As part of the Milton neighbourhood of Clarke, this condo is situated close to many local amenities such as shopping, dining, conveniences, and recreation. 

With units ranging from 619-1,056 square feet, and being an older building, Parkside Residences is perfect for buyers entering the market for the first time. Building amenities include a party room, barbecues permitted, visitor parking, and more. 

One thing to note about Parkside Residences is a pet restriction, so if you have pets, this building might not be for you. 

You can also download our Buyer’s Guide to learn everything you need to know about buying a home with the Katherine Barnett Team. Download the guide for free here. 

6. Art on Main

As the newest condo on our list, Art on Main is an incredibly stylish, luxurious, all-encompassing condo experience. Built by Fernbrook Homes, Art on Main is located at 1050 Main Street East in Milton. 

Featuring 2-bedroom and 2-bedroom + den floorplans, Art on Main is redefining the local condo experience. With exceptional finishings and absolutely astonishing building amenities, Art on Main is sure to attract buyers looking for an elevated experience in one of Milton’s most exciting neighbourhoods. 

Close to incredible neighbourhood amenities and featuring ground-level retail in the building, Art on Main has everything you need. Building amenities include a state-of-the-art fitness centre, pool, party room, billiards room, rooftop terrace, barbecue stations, pet spa, and 24-hour concierge service. 

When you are considering taking your first step into the real estate market, a Milton condo is an excellent investment to start with. Whether you crave the condo lifestyle or you see owning a condo as a great way to build equity before upsizing into a detached home, Milton condos are always in demand for buyers, investors, and renters alike. 

Here at the Barnett Real Estate Team, we strongly urge our homebuying clients to not only see their home purchase as a new start for their family but also as a smart, long-term investment.

Even if our home buying clients intend to live on the property themselves, important factors such as size, location, layout, and more all contribute to the long-term appreciation of a property and can stand to make the home’s owners a lot of money if they decide to eventually sell later on.

However, there are quicker ways for homeowners to start seeing returns on their real estate investments than simply waiting for its value to appreciate over time.

If you’re interested in earning regular passive income from your home while you still own it, consider acting on one or more of these four ways you can start earning money from your home today.

1. Basement Apartments

If you’re lucky enough to own a home with a basement, one of the best ways you can start earning passive income immediately is by renting it out to a tenant. These days, polished basement apartments are very desirable among the renter crowd, and can make ideal homes for singles and couples who want to live in safe, family-friendly residential areas.

Of course, first, you’ll need to ensure your basement actually qualifies as a safe, rentable basement apartment. Depending on where your home is located, you’ll have to consult with your local municipal planning and building departments about your plans to add a second unit or convert your basement into a rentable apartment.

They will be able to help guide you on what constitutes a safe and rentable basement suite and which zoning, by-law, and building code regulations you’ll need to follow and/or implement in order to have your apartment up to code.

There are a number of different codes your apartment must pass in order to comply with your municipality’s safety regulations, with the most common relating to ceiling heights, room sizes, window placements, heating and ventilation, fire safety, electrical codes, and more.

However, once you’ve either had the approval to rent your basement out or to being renovated in order to get your basement up to a safe, rentable standard, you could easily be looking at this method of passive income paying for the majority of your mortgage. Through regular rent payments from your tenant, this is a great way to earn some extra monthly cash flow from your home.

While owning a home with a basement apartment sounds like a great idea on paper, there are a few things you should know about the process before committing to it the idea. To help, here’s our Guide To Basement Apartments And Secondary Suites.

2. Coach Houses

If you don’t currently have a basement, it isn’t up to rentable standard, or you simply don’t want to rent it out at all, you can also explore the route of earning passive income through a coach house or detached guest suite on your property too.

Of course, if you want to be able to legally rent out your coach house, you’ll have to jump through a few of the same zoning, by-law, and building code hoops to get it approved by your municipality and provincial governments as well.

However, considering the current need across Ontario for more affordable housing options, the provincial government actually passed some legislation just a few years ago that encourages homeowners with coach houses to explore renting them out. Although they are currently rare in our region, they may begin to gain popularity as the legislation becomes more widely-recognized.

The list of safety and zoning standards for coach houses are quite similar to those for basement apartments, though they also include regulations surrounding things like the coach house’s size and distance from the main dwelling and street.

Just like our basement apartment example, you may need to spend a little time, effort, and cash getting your coach house up to a rentable standard. However, once you do that, find a tenant, and start earning regular passive income, you’ll soon start to see returns on your coach house investment and make your money back completely — and then some!

How will recent changes to the real estate market affect your buying or selling decisions? Here are some updates you might want to know about:

• Everything You Need To Know About Buying A House In Milton
• How Will Rising Interest Rates Affect Buyers?
• Is Now A Good Time To Sell Your Investment Property?

3. Short-Term Rentals

If you don’t plan on living in your new home full-time, a great option for you to explore while you’re away is to list your home as a short-term rental. Through apps and services like Airbnb, renting out your home for the weekend, week, or even longer is easy — and the best part is, you can tailor it to your personal schedule.

Short-term rentals are ideal if you regularly travel out of town or you’ve invested in a holiday home elsewhere. And the thinking behind them makes sense — if you’re not currently living in your home, why not make some extra cash from it while you’re not there?

As always with short-term rentals, however, you’ll need to make sure the concept is suitable with your lifestyle before committing to listing it on a service like Airbnb. Just like staying in any hotel, your guests will expect certain accommodation standards from their hosts. If you’re not able to easily clean and maintain your rental home between each and every guest visit, you’ll have to hire a property manager or third-party service provider to do that for you.

Ultimately, the success of this concept comes down to how much you stand to make from your short-term guest rentals versus what it’ll cost you to maintain your home for them. If the math checks out, however, and you successfully host your first few guests, you’ll no doubt become more efficient at the entire thing and will start regularly earning some very useful passive income.

At the Barnett Real Estate Team, we help home buyers at every stage of their real estate journeys reach the next stage of their homeownership career. Find out more about our unique home buying process and how we can help you achieve your biggest real estate dreams by reading through our informative home buying guides here:

• How We Help Buyers
• Buyer’s Guide
• Start Buying

4. Long-Term Rentals

Of course, one of the best ways to earn consistent passive income from your home is to list it as a long-term rental. This option is obviously for homeowners who don’t permanently live in their space and have most likely purchased a home for the sole purpose of renting it out.

Whether you’ve got a comprehensive real estate portfolio or this is your first time investing in an income suite for passive income, being a landlord is no easy job. If you thought the sound of setting up your home for short-term Airbnb rentals was a lot of work, you’ll be responsible for doing even more as a permanent landlord.

As the property owner of a tenant’s home, any issues with the home, its functionality, regular maintenance, and any damages will come directly to you, and ultimately your tenant’s problems will become yours. That’s all part and parcel of being a landlord, however, and while it certainly is a lot of responsibility, the rewards can be very much worth it in the long run.

Depending on the size, location, and demands of your long-term rental’s local renter market, you could end up earning enough passive income from your tenants to pay the majority if-not-all of your monthly mortgage payments on the property. Now that sounds like a pretty good system, right?

If you want to recruit a permanent tenant for your long-term rental property, you should also strategize an exit plan if you want to sell your home while they still live there. That’s why we wrote this guide on Selling a Tenanted Property: What You Should Know.

October 2021 – GTA Housing Market News

What is going on with the real estate market?

Here are the October stats:

• Second highest level of sales on record ever with the Toronto Real Estate Board in October.
• Low inventory on all types of home
• The average price growth for all types of homes is up 19.3% over last year.

Milton Real Estate Market

The average price in Milton $1,255,300

Burlington Real Estate Market

The average price in Burlington $1,186,400

Oakville Real Estate Market

The average price in Oakville $1,388,600

Have questions about the market? Contact us today to learn more!

Previous Reports on GTA Housing Market News

September August July June

These Glazed Gingerbread Donuts are like eating your favourite molasses ginger cookie in donut form!

Ingredients

For the Donuts

• 1 Cup white whole wheat flour
• 1 teaspoon baking powder
• 1/4 teaspoon baking soda
• 1 teaspoon cinnamon
• 1/2 teaspoon ginger
• 1/4 teaspoon allspice
• 1/8 teaspoon cloves
• 1/4 teaspoon salt
• 1/4 Cup brown sugar
• 1 egg
• 3 Tablespoons molasses
• 1/3 Cup milk
• 1 1/2 teaspoons vanilla extract
• 3 Tablespoons butter, melted

For the Frosting

• 1 Cup confectioner’s sugar
• 1 Tablespoon hot water
• 1/2 Tablespoon + 1/2 teaspoon milk
• 1/4 teaspoon vanilla extract

September 2021 – GTA Housing Market News

What is going on with the real estate market?

Here are the September stats:

– Average sales has increased 19% over September last year
– September had fewer sales, due to low inventory 
– Halton area average sales has increase 24% over last year

Milton Real Estate Market

The average price in Milton $1,154,800

Burlington Real Estate Market

The average price in Burlington $1,140,500

Oakville Real Estate Market

The average price in Oakville $1,310,900

Have questions about the market? Contact us today to learn more!

Previous Reports on GTA Housing Market News

August July June May

Basement apartments are an increasingly popular trend we’re seeing among homeowners these days. As housing prices continue to rise, and the housing supply continues to diminish, people are looking for alternative ways to navigate the market. 

If you followed the recent federal election, you’d know that housing affordability was a major part of each party’s platforms. However, policies and laws can only go so far and many Canadians want to take things into their own hands. This is where secondary suites and basement apartments come into play. 

Here’s everything you need to know about buying a home in Milton with a basement apartment…

What Defines a Basement Apartment?

Basement apartments, sometimes also called secondary suites or accessory apartments are defined as a “self-contained dwelling” created by converting a section of the main dwelling into a secondary dwelling. 

Basements make popular accessory suites because it’s often fairly easy and inexpensive to turn a basement into its own apartment. 

What are The Benefits of Basement Apartments? 

Whether you’re a first-time homeowner or an empty nester, there are many benefits to having a basement apartment as part of your house. 

Getting your foot into the real estate market as a first-time buyer can be difficult. As home prices in Canada continue to rise, it’s becoming increasingly hard for young people to afford to buy a home. For these types of buyers, a basement apartment is a great option because it means they can collect rent from a tenant to help supplement their mortgage payments, improving affordability overall. 

Empty nesters can also reap the benefits of a basement apartment. These types of homeowners are typically dealing with excess space in their homes. If they aren’t quite ready to downsize but want to maximize the use of their space and make a little extra money, a basement apartment is a great option. 

Basement apartments are essentially real estate investments and can be used to further your space in the market, give exceptional landlord experience, and help you increase your investment portfolio. 

Buying a House with an Existing Basement Apartment vs. Building New

Basement apartments can significantly increase the value of a home. So if you are in the market for a property with an existing basement apartment, expect to pay a higher price initially. 

However, building a basement apartment might take an initial lump sum investment on your part, but in turn, will increase the property value should you want to sell later. 

If you’re currently in the market for a home, and you know you want to rent out the basement, it’s certainly worth looking into buying a house that has an existing basement apartment. It would save a lot of work and time on your part. 

However, it’s also important to consider the ROI. Do some research into how much building an accessory suite would cost vs. how much rent you could charge in that neighbourhood. This might give you a better idea of whether or not buying an existing house with a basement apartment is better for your unique situation rather than renovating and building your own. 

Ready to buy a home? Get started here:

• Our Top 8 First-Time Buyer FAQs
• The True Cost of Buying a Home: What You Need to Know
• A Buyer’s Guide to Pre-Emptive Offers

Thinking About Building a Basement Apartment? Don’t Forget About the Legalities

Building a basement apartment in Milton requires some careful planning and consideration on the homeowner’s part. For example, before you start building, you need to obtain a building permit and ensure your apartment meets certain regulatory standards:

• The basement apartment must be located in a detached single-family home. 
• It must have access to municipal sewer and water with either laundry in-suite, laundry connections, or shared laundry services.
• There must be at least three legal parking spaces on the property.
• Ceiling height must be at least 6′ 11″ (2.11 m), and 6’5″ under beams
• It must not be greater than 85m² or 915sq/ft in size. 
• 45 min floor and wall fire separation (requirements are different in older buildings)
• The dwelling must have its own private entrance.
• The home must have a walkout egress or window egress with a minimum 3.8 sq/ft clear opening.
• The building must have all the appropriate permits and inspections.

Legal vs. non-legal basement apartments is a hot topic in Milton and the GTA. Learn more about it in our blog What Makes a Basement Apartment Legal in Milton here.

How to Maximize Your Basement Apartment Income

Building a basement apartment is more than just sectioning off a part of your home and collecting rent. You are essentially becoming a landlord, which comes with significant responsibility. 

Although no two renters are alike, here are some general features that renters look for in a basement apartment:

• High-quality appliances and finishes (think, faucets, tub, shower, sink)
• Higher-than-average ceilings
• Large, bright windows
• Nice lighting 
• Open-concept floorplans
• All-inclusive utilities 
• Proximity to public transit, healthcare, grocery, and amenities

Read our quick guide to Milton Real Estate here to learn more about the best neighbourhoods for your unique needs.

It’s also important to attract the right type of tenant for your property. Consider your location and your ideal tenant and ensure that you are doing everything you can to attract that type of person to your listing. It’s also a good idea to complete credit checks and have your tenants fill out applications before agreeing to rent the apartment. 

Did you know we host first-time buyer webinars every month? Sign up to join our next webinar for FREE here.