According to Fitch ratings agency, Canada's real estate market prices are currently around 20% higher than they should be. The agency was quick to follow Morningstar research in siting that a real estate pricing correction was only around the corner. Did you pay too much for your home, or do you think it is worth more than it really is?
With prices on the rise, Fitch has warned the federal government needs to slow down lending as prices continued to increase another 4.5% in June compared with 2013. This is despite the fact that this increase is nearly the lowest amount in 6 months.
Single-family resale homes with the large urban markets seeing the strongest surge in prices. And let's face it, that is the biggest market in the country. An excellent example of this is in Calgary, where prices have risen more than 8% compared to only a year ago.
Just because prices are on the rise, it doesn't mean anyone should be getting excited about having any extra value in their home. Those price increases are only attained by those who actually sold their home. The real estate market is a fickle at best. And as these professionals have predicted, home prices will come into line in the very near future.
The Canadian housing market tends to 'shake off the winter blues' and go into overdrive during the warmer months. That's an important lesson for everyone who sells their home in the future. It's not a very good idea to try and sell your home during winter. The surge of house resale activity that normally takes place in the spring has resulted in booming home prices this summer.
These price rises are cyclical. They happen yearly and they happen every time lending is eased. Growing real value in your home is very different to trying to capitalise on market trends.
C4U Inspections has designed a simple starter DIY home maintenance package that will lead to real growth in the real value of your home. I stress real value. Prices will go up and down, but the same factors influence the selling price, whatever that may be at the time. What makes a home more valuable doesn't change, only the prices do -- that's something to think about.
The fastest way to add value to your home is start by lowering how much it costs you to own. The easiest way to do that is to reduce the cost of repairs. Reducing the cost of repairs is as simple as home maintenance.
It is much easier to add value to your home through proper maintenance programs. C4U Inspections specialises in home wealth programs that generate value in your home by creating a record of your home maintenance and repairs through certified inspection.
I'm Lloyd Kenzle, chief inspector at C4U Home Inspections. I'd seriously like you to consider what I'm telling you here. Our certified home maintenance inspection is worth more than $250. You just can't lose at only $250 per year for a full home maintenance inspection and tailored home maintenance schedule. You don't have to be rich to be involved in home wealth generation. It's for everyone.
The fact remains, when your home is finally on sale, everyone will be doing everything to bring your price down. Your home wealth program and recorded home maintenance reports and inspections will definitely be on your side.
Need more information and have questions? Contact C4U Inspections today
*Lloyd doesn't break the rules for anyone and as a leading chief home inspector in BC, that means he follows industry requirements, government regulations and licensing codes of conduct to the letter.
Unbiased, ethical and professional home inspection and building consulation services.
Serving the Okanagan Since 2005
