The Bank of Canada opted to raise the target for its overnight interest rate this morning 25 basis points  to 1.25 per cent.  In the statement accompanying the decision, the Bank cited recent strong economic data and rising inflation as motivations for the rate increase. The Bank expects growth in the Canadian economy to slow to 2.2 per cent in 2018 and 1.6 per cent in 2019 with consumption and new home construction contributing less to growth than in years past.  With the economy returning to full-capacity, inflation is forecast to remain at 2 per cent over the medium term.  The Bank also flagged risk to its outlook from ongoing NAFTA negotiations and noted it would remain cautious in considering future interest rate adjustments.

With the Canadian unemployment rate hitting a 40-year low and inflation ticking higher in recent months, the Canadian economy would seem to be operating at full capacity. That argues for a more hawkish approach to monetary policy in order to bring interest rates closer to what the Bank estimates would be neutral for the economy, that is, a level in which the economy is neither running too hot nor too cold.  While today's rate increase was widely anticipated, it did come earlier in the year than previously expected and likely signals further rate increases to come in 2018.  Canadian mortgage rates have already moved higher in anticipation of Bank of Canada tightening, which means a much tighter borrowing environment in 2018, particularly given newly implemented mortgage qualifying rules for low-ratio buyers.

“Copyright British Columbia Real Estate Association. Reprinted with permission.”

Have you ever considered renting out a room to a student or renovating
your basement into a self-contained rental apartment?
It’s a big decision. There are many pros and cons to consider.
On the pro side, renting can provide you with additional income. An extra
few hundred dollars a month can go a long way towards paying down your
mortgage or splurging on an exotic summer vacation.
Creating rentable living space in your home — for example, an “in-law suite”
featuring a kitchenette and bathroom — may also increase your property’s
market value.
On the con side, you’ll have more costs and responsibilities as a landlord.
For example, you might need to purchase extra insurance because basic
home insurance policies typically do not cover rental units, even if you’re
just renting out a room. You’ll also be responsible for dealing with repairs
sometimes in the middle of the night.
Also, if you’re not careful about the renter you choose, you might end up
with a “problem tenant”. For example, you could have a tenant who is
consistently late on rent payments or simply stops paying. That can be
stressful.
If you’re deciding whether or not to rent, be sure to check local laws and
regulations. Many jurisdictions have very strict rules regarding renting out
space in a residential property, and those rules change frequently. Make
sure you get the latest information.

Your neighbourhood has a lot of features that can help sell your home
faster. Unfortunately, buyers don’t usually notice those features just by
driving around. So, you need to make sure they get all the information they
need about your neighbourhood.
For example, say homes don’t go on the market often in your area. That’s
an indication that the quality of life in the neighbourhood is so good that no
one wants to leave! In real estate we measure the area’s “turnover rate”,
and it’s handy data to have when listing your home.
Another bit of data that buyers can’t simply see is the local crime rate. But,
most police departments keep those statistics. If your neighbourhood has a
low crime rate, that’s an obvious plus to sellers.
Demographic data can also be helpful when selling your property. If your
neighbourhood has a lot of families, for example, that’s going to be
appealing to buyers with kids.
Even local development plans can play a role in making your home more
attractive to buyers. If a new ramp to a major highway is in the works
nearby, getting to work is going to be easier. That’s a big benefit to
commuters.
Other types of data that can help sell your home include:
• Planned local construction.
• Proposals for neighbourhood improvements. (For example, a new
playground.)
• Rates at which local property values are increasing.
Any information that shows the advantages of living in your area is going to
be useful when selling.
By the way, this is the kind of information we put together to provide to
prospective buyers when selling your home. Contact us today for more info!!

The Bank of Canada maintained its target for the overnight rate at 1 per cent this morning. In the statement accompanying the decision, the Bank noted that the Canadian economy is evolving as expected, with growth slowing in the second half of the year.   On inflation, the Bank expects the continued absorption of economic slack to push core inflation higher in subsequent months.  Importantly, the Bank concluded its statement by noting that rate increases will be required over time, though it will proceed with caution as it assesses the economy’s sensitivity to higher rates.

Although the Bank of Canada has a bias toward raising rates over the next 12 months, it is currently sidelined by low inflation as well as concerns over how higher interest rates will interact with elevated household debt levels.  We anticipate the Bank will remain on hold in early 2018 as it assesses the impact of the forthcoming mortgage stress test, but will look to raise rates one or two times in the second half of next year.

“Copyright British Columbia Real Estate Association. Reprinted with permission.”

Imagine you were selling your car, and a prospective buyer was on the way
over to see it. What would you do? You would probably make your vehicle
look as clean and shiny as possible, inside and out.
The same holds true if you’re selling your home and there’s a potential
buyer on the way. You want the buyer to be wow’d by your property. Here’s
a handy checklist to follow:
• Clean every room. Make your entire house look as “guest ready” as
possible.
• As much as is feasible given the time, reduce clutter. Consider
packing some items into boxes and storing them in the basement or
garage.
• Get pets out of the house. You can take them for a walk, have a
neighbour watch them, or take them to a good kennel.
• Turn on the lights, even during the day. You want each room to look
bright.
• If there are any maintenance issues, such as a dripping faucet, let
your Realtor know. Often, it’s best for buyers to be told rather than
discover such issues themselves.
• Open the curtains, except in those rooms where the sun will be
uncomfortably strong during the viewing.
• Move your vehicles from the driveway so the buyer can park there.
(That can help them imagine living there, which is what you want!)
• Make sure your foyer is especially clean and uncluttered. It’s the first
“room” the buyer visits.
• Avoid cooking just before a viewing. Even if the meal is wonderful, the
aroma may linger. (Some people don’t like the smell of certain dishes,
such as fish.)
• Freshen up the outdoor space. Mow the lawn. Sweep the walkway.
This viewing checklist will help you prepare your home quickly, so when the
buyer comes in your front door, there’s a much better chance he or she will
be impressed.

Want more tips? Contact The Dion-Ivans Real Estate Team today!!!