Royal LePage Anticipates Canadian House Prices to Rise by 12% This Year

Real Estate Technology

Article | July 12, 2022

For first-time homebuyers, making the transition from renter to homeowner can be exciting, overwhelming, and scary all at once. Yet as Gary Keller and Jay Papasan write in the second edition of Your First Home, “Those who live the most fulfilling lives base their decisions on facts, not fears.” Below, we’ve outlined four powerful facts from Your First Home to help move anxious homeowners toward the fulfillment and abundance Keller and Papasan nod to. Delivered with empathy, care, and your expertise – these facts can help ease fears and move clients closer to experiencing all the bounties homeownership brings. Fear 1: “I can’t afford to buy a home now.” Fact: Until you do the math, you don’t know what you can or can’t afford. If you are currently paying rent, generally you can afford to buy. From a financial point of view, in the United States, the tax savings on mortgage interest alone usually make up most of the difference between your rent and mortgage payments – the tax write-offs you get at the end of year will generally help you save a lot of money. Additionally, depending on your credit score, you can end up affording more than you realize. Note: The credit scores used for mortgage lending tend to take on a much larger picture of your overall credit score. Finally, although there may be a higher initial cost to buying a house, if you’re planning on staying in one place for a few years, the equity you build can end up being a financial boon. Fear 2: “I should wait until the real estate market gets better.” Fact: There is never a wrong time to buy the right home. Whether “right” means the right price or the right property for you, waiting for the perfect market timing seldom works to your advantage. If you don’t believe us, look back to the Great Recession when the bubble around the housing market burst, GDP declined 4.5% and unemployment rose to around 9.5%. Everyone still feels the impact of this incredible financial event. But, like those who endured the Great Depression, the people who lived through the Great Recession made it through, and benefited from an era of financial growth. In fact immediately following the Great Recession, the United States entered the longest period of rising prices and general prosperity since World War II. The fact of the matter is, even the biggest economic downturns are, well, normal. Even when there were some events that threatened to dampen the economy, like the COVID-19 pandemic, the housing market still continued to thrive. In the end, there are two ways to make money in real estate: timing and time. That is you happen upon the right moment to purchase your home before the price appreciates, or you hold it for a long enough time so that appreciation makes your purchase investment right. If you miss the first, you can most certainly count on the second. Fear 3: “I don’t have the money for a down payment.” Fact: There are a variety of down-payment options available to you. While many people believe that making a home purchase requires a substantial down payment, as as much as 20%,, this is seldom true. Options are always available to you that require much less than this number, as low as 5%, some even less. Moreover, most states have down-payment assistance programs that can help you afford to buy. House-hacking can also be a great way to make homeownership a more affordable option. House-hacking is when you purchase a piece of real estate and lease out one of the bedrooms or units. This rental income can then be applied toward your mortgage. Or, you can participate in home rental programs like Vrbo or Airbnb. While it may not be ideal all of the time, you could always make your month’s mortgage payment by renting your place while you’re on vacation. Fear 4: “I can’t buy a home because my credit score isn’t good.” Fact: A less-than-perfect credit score won’t necessarily prevent you from buying a home. Although it’s valuable to have a good credit score, a poor one shouldn’t necessarily prevent you from talking to lenders to explore your options. You can expect that a good loan officer (or mortgage specialist) will be able to help you resolve your credit challenges, often simply by showing you how to move or consolidate your debts, or by referring you to a credit counselor who will put you on a plan. If you’re facing the challenge of having no credit history because you are new to the workforce or have not made regular purchases on credit, there are still possible solutions that you may want to explore. One is to secure financing with the help of a cosigner, such as parents or a close relative, who is willing to stand by your ability to make the payments. Another can be finding a lender who is willing to use alternative forms of history such as student loans, rent, and utilities. Looking For More Homeownership Resources? Head over to the Your First Home webpage for freebies, including information on how to build out your real estate dream team and for your clients, a resource on how to determine their homeownership criteria.

Real Estate Technology, Asset Management

Article | June 15, 2023

Spring is here, and with it comes home buying season. If you’re in real estate, it’s about to get really interesting. There are also some unique challenges you and your buyers might be confronting in the market now. Let’s get to what you need to know. The housing market has been red-hot for quite a while now. Sales for both new and existing homes have been on an absolute tear. But last month, both of these metrics took a step back. One likely reason for this is no doubt a moderate increase in mortgage rates. However, it seems to me we talk about that enough. Today, we would like to spotlight another factor causing issues in the housing market and possibly even delaying construction of homes in some areas. There’s a real shortage of the necessary materials for constructing and renovating homes at this point. According to a December report from the U.S. Chamber of Commerce, 71% of builders were facing a shortage of at least one material. That means the houses that were being built in December that may just be getting ready to come on the market now may either be delayed or come with higher prices. The material most in demand was lumber, with 31% of contractors experiencing a shortage.

Real Estate Technology

Article | July 18, 2022

You have a commercial property and you need to lease it as soon as possible. In an ideal world, you would find a client as soon as your property is vacant. But we do not live in an ideal world. As a property owner or manager, you need to list your property, get the right contacts, and find a buyer who is ready to occupy immediately at a price that's efficient to you. It can be a tedious journey. That’s where a broker comes in. Filling your vacant properties is essential but navigating a labyrinth of procedures shouldn't keep you occupied, which is whyleveraging a brokernetwork is so important. Here are three ways you can connect with brokers to make the most of their services. Updating Your Inventory List If you've tried handing a PDF of your current available listings, you might want to reconsider your approach for better chances of success. Brokers must be aware of the properties you have available if you want them to consider yours. The issue with online CRE listings is that many of them are outdated. This may cause a broker to think they’ve found an ideal property for their client, only to discover it’s already leased out. This doesn’t make a good impression. In addition, static listings are not search-friendly. To cut to the chase, deploy a search-ready, updated portfolio. Simplifying things for brokers will keep them coming back and contribute towards building a positive association with them. Sharing an Inventory List Right to Their Inbox Simplifying property search isn’t all. What are you doing to make a broker’s life much easier? You don’t need to spend a ton on proptech to reach out to brokers on time. Set up a commercial real estate email list that directly emails your updated listings to the brokers, providing them with timely alerts on when a new property is on the market or reminding them that an existing listing is still available. Providing Easy Access to the Property Information Regular emails about your updated property portfolio is bound to keep brokers engaged and informed. Going a step further, you can create a mobile-friendly property information page for each of your CRE properties to ensure that brokers have all the information they need at their fingertips. This avoids any bottlenecks caused by having the wrong information or no information at all about the specifications of your properties. A Final Word of Advice One of the most effective things commercial property owners can do to guarantee their properties are continuously leased is to engage with brokers, keep them updated, and simplify ways for them to interact with your property.

Article | April 11, 2020

The construction industry has been slow to evolve, especially in the realm of commercial real estate (CRE). In many ways, the construction process is not dissimilar from how it was when the first skyscrapers were built. However, as technology begins to change various parts of the industry, especially how all stakeholders communicate, building information modeling (BIM) is playing a larger role. BIM stands for building information modeling, and it's essentially a way to create as detailed a model of a potential building as possible so that architects, developers, and construction managers can collaborate and answer questions before and during the construction process. The benefit of this is that all parties can share information and potentially avoid costly mistakes.