Facebook
X
Pinterest
Copy Link
Bank of Canada Reduces Policy Rate to 3%
The Bank of Canada (BoC) has made a significant move in its monetary policy, reducing its key interest rate and announcing the end of quantitative tightening. This decision, announced on January 29, 2025, has important implications for the Canadian economy and individual Canadians. Let’s break down the key points and their potential impact.
The Rate Cut
The BoC has reduced its target for the overnight rate to 3%, with the Bank Rate at 3.25% and the deposit rate at 2.95%. This 25 basis point cut is a clear signal that the central bank is taking action to support economic growth.
End of Quantitative Tightening
In addition to the rate cut, the BoC is ending its quantitative tightening program. They plan to restart asset purchases in early March, allowing their balance sheet to stabilize and then grow modestly in line with economic growth. This move is aimed at providing further support to the economy by increasing liquidity in the financial system.
Economic Outlook
The Bank of Canada’s decision is based on several key economic factors:
- Past interest rate cuts have started to boost the Canadian economy, with recent strengthening in both consumption and housing activity expected to continue. However, business investment remains weak.
- GDP growth is forecast to strengthen in 2025. The Bank projects GDP will grow by 1.8% in both 2025 and 2026, which is somewhat higher than potential growth. This is despite slower population growth due to reduced immigration targets.
- Inflation remains close to the 2% target, with some volatility. The Bank expects CPI inflation to stay around the 2% target over the next two years.
Potential Impacts
For Canadians, this rate cut could have several implications:
- Lower borrowing costs: Mortgages, lines of credit, and other loans may become more affordable.
- Increased economic activity: Lower interest rates are expected to boost household spending and gradually strengthen the economy.
- Currency effects: The Canadian dollar has already depreciated against the US dollar, largely due to trade uncertainty and broader strength in the US currency. This trend may continue, affecting import prices and travel costs.
Risks and Uncertainties
While the BoC’s move is generally positive for economic growth, there are some risks to consider:
- The Bank notes that projections are subject to more-than-usual uncertainty due to the rapidly evolving policy landscape, particularly the threat of trade tariffs by the new administration in the United States.
- A protracted trade conflict could lead to weaker GDP and higher prices in Canada. If broad-based and significant tariffs were imposed, it would test the resilience of Canada’s economy.
What’s Next?
The Bank of Canada’s next rate announcement is scheduled for March 12, 2025. Follow my page for more real estate news and information!
Final Thoughts on the Bank of Canada’s Decision
The Bank of Canada’s decision to cut rates and end quantitative tightening reflects its commitment to supporting economic growth while maintaining price stability. The Bank will continue to closely monitor developments and assess their implications for economic activity, inflation, and monetary policy in Canada. For Canadians, this may present opportunities in terms of borrowing and investment, but it’s also a reminder to stay informed about economic developments and how they might affect personal financial decisions.
Read the Press Release.
Whether you’re a homeowner, prospective buyer, or real estate investor, understanding these market changes is crucial. As your trusted REALTOR®, I’m here to help you navigate these shifts and make informed decisions! Call, text, email, or DM me to chat about how this announcement affects your real estate plans!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
Septic Systems 101: What Every Homebuyer Should Know
When house hunting, you might come across properties with septic systems. While these systems are common in rural areas, they can be a mystery to many homebuyers who have only used municipal sewer systems. Let’s demystify septic systems and explore what you need to know before purchasing a home with one.
What is a Septic System?
A septic system is a self-contained wastewater treatment structure used in properties not connected to municipal sewer lines. It typically consists of two main components:
- A septic tank that separates solids from liquids
- A drain field (or leach field) where treated water seeps into the ground
How Does it Work?
Wastewater from your home flows into the septic tank, where bacteria break down solid waste. The liquid then flows into the drain field for further natural filtration before returning to the groundwater.
Maintenance Matters
Proper maintenance is crucial for the longevity and efficiency of your septic system:
- Schedule professional inspections annually
- Pump the tank every 3-5 years
- Be mindful of what goes down your drains
- Regular maintenance can help prevent costly repairs and extend the life of your system.
Red Flags to Watch For
When viewing a property, be alert to these potential septic system issues:
- Slow draining sinks or toilets
- Foul odours around the drain field
- Unusually lush or soggy grass over the septic area
- Water backing up in household drains
The Importance of Professional Inspection
Before purchasing a home with a septic system, you can hire a professional inspector to:
- Assess the overall condition of the system
- Identify any existing or potential problems
- Provide an estimate of the system’s remaining lifespan
This information is invaluable for making an informed decision and potentially negotiating the home’s price.
Impact on Property Value
A well-maintained septic system can be an asset to your property. However, a failing system can be a significant liability. Understanding the condition of the septic system is crucial when evaluating a property’s true value.
Living with a Septic System
If you’re new to septic systems, don’t worry! With proper care, they’re reliable and environmentally friendly. Just remember:
- Conserve water to avoid overloading the system
- Use septic-safe products
- Keep detailed maintenance records
Final Thoughts
While a septic system might seem daunting at first, it’s a manageable aspect of homeownership. By understanding how it works and committing to proper maintenance, you can ensure your septic system serves you well for years to come.
Remember, if you have any questions or concerns about a property’s septic system, don’t hesitate to ask your real estate agent or a septic professional. Additionally, the Ontario government has more information about septic systems on their website.
Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
December 2024 Real Estate Market Update
Board & Association Information
OnePoint Association of REALTORS® serves as a unified body representing almost 3,000 real estate professionals across the regions of Huron, Perth, Grey, Bruce, Wellington, Georgian Bay, Simcoe, Parry Sound, Haliburton and Muskoka.
Related: November 2024 Real Estate Market Update
*IMPORTANT: Due to the transition, December data is not 100% accurate as some members had to relist their listings in PropTx which could appear as ‘new’.
Wondering how these numbers might impact your real estate plans? Whether you’re buying, selling, or just curious about market trends, I’ve got you covered! Let’s navigate the market together! Contact me for a complimentary, no-obligation property valuation!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
Bringing Nature Indoors: The Incredible Benefits of Houseplants
Houseplants are more than just decorative elements in our homes; they are vital contributors to our mental and physical well-being. As we navigate our busy lives, bringing a bit of nature indoors can provide numerous benefits that enhance our daily experiences. Here’s a closer look at why incorporating houseplants into your living space is a smart choice.
Stress Reduction and Emotional Well-being
Houseplants are powerful stress-busters. In a fascinating study, researchers compared participants performing two different tasks: transplanting a houseplant versus completing a computer task. The results were striking – those working with plants experienced a significant decrease in blood pressure and felt more comfortable and soothed. Experts like Melinda Knuth, a horticultural science professor, note that being around plants can actually reduce cortisol levels, our primary stress hormone.
Boosting Productivity and Attention
The benefits of houseplants extend beyond emotional wellness. Research demonstrates that plants can dramatically improve workplace and learning environments. In one study, college students working in a lab with plants completed tasks 12 percent faster and experienced reduced stress. For children, the impact is even more profound – elementary students in classrooms with real plants showed improved concentration and attention in brain scans.
Enhancing Happiness and Life Satisfaction
Perhaps most compelling is plants’ ability to elevate mood. An experiment revealed that individuals spending just 5-10 minutes in a room with houseplants reported higher happiness levels compared to those in plant-free spaces. Interestingly, purple and green plants were particularly effective at reducing negative emotions.
Mental Health and Therapeutic Benefits
Beyond immediate mood improvements, houseplants offer deeper psychological support. During the pandemic, studies showed that people with houseplants experienced fewer symptoms of depression and anxiety. Some medical clinics have even begun “prescribing” plants to patients dealing with mental health challenges.
Practical Considerations
When selecting houseplants, consider low-maintenance options like succulents or cacti, which are perfect for beginners. These plants not only beautify your space but also provide a gentle reminder of self-care and nurturing.
Final Thoughts on the Benefits of Houseplants
By introducing houseplants into your indoor environment, you’re not just decorating – you’re creating a sanctuary that supports your mental and emotional well-being. This winter, let a little green transform your living space into a haven of tranquility and joy.
Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
How to Know You’ve Found ‘The One’ in Your Home Search
Recognizing when you’ve found the right home to make an offer on is a crucial step in the home-buying process. It can be an emotional journey filled with excitement and uncertainty, but certain signs can help you confidently determine if a property is “The One.” Here are key indicators to look for as you navigate your house-hunting experience.
You Feel an Immediate Connection
From the moment you walk through the door, you should feel a sense of comfort and belonging. If the house resonates with you emotionally and feels like home, that’s a strong indicator that you may have found the right place. Pay attention to how at ease you feel in the space; if it feels right, it likely is.
The Home Meets Your Criteria
Before starting your search, create a list of your must-haves and nice-to-haves. If the home checks off most of these boxes—such as the number of bedrooms, layout, and location—you’re on the right track. While no home will be perfect, it should align closely with your essential needs.
You Can Envision Your Future There
A significant sign that you’ve found the right home is your ability to imagine your life unfolding within its walls. Whether it’s hosting family gatherings or enjoying quiet evenings, if you can see yourself living there long-term, it’s a promising sign.
It Fits Within Your Budget
Financial considerations are paramount in any home purchase. The right home should comfortably fit within your budget without causing financial strain. This ensures that you can enjoy your new space without ongoing stress about payments.
You Start Thinking About Personal Touches
If you find yourself mentally arranging furniture or imagining how to decorate the space, this is a clear sign of attachment. Visualizing how your belongings will fit into the home indicates that you’re already picturing yourself living there.
You Feel Excited About Making an Offer
When thinking about putting in an offer brings feelings of excitement rather than anxiety, it’s a strong indication that this home might be right for you. This sense of readiness can often outweigh any lingering doubts.
Your Gut Instincts Are Strong
Sometimes, intuition plays a significant role in decision-making. If everything about the home feels right and you can’t stop thinking about it after leaving, trust your gut feelings—they can often guide you toward the right choice.
You’re Ready to Commit
If the thought of making an offer excites you and feels like a natural next step, it’s likely time to act. A sense of commitment and enthusiasm about the property is often a sign that you’ve found “The One”.
You Defend Its Flaws
If friends or family point out flaws in the home but you find yourself passionately defending it, this attachment suggests that you’ve developed a connection that goes beyond mere practicality.
You Want to Stop Looking
If this house has raised the bar so high that nothing else compares, and you’re ready to stop your search altogether, it’s likely time to make an offer. Feeling satisfied with what this home offers can indicate it’s truly the right fit for you.
Final Thoughts on the Home Search
Finding “The One” in real estate is not just about checking boxes; it involves emotional connections and practical considerations. By recognizing these signs during your house hunt, you can confidently make an informed decision with your REALTOR® when it’s time to submit an offer on your dream home. Trust yourself throughout this process—your instincts are valuable guides on this exciting journey!
Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
Showcase Grey Bruce: Must-Visit Spots for Your Holiday Guests
Hosting friends and family during the holidays in Grey Bruce, Ontario, can be a delightful experience with the right local recommendations. Here are some top picks to make your gatherings memorable:
Best Place for a Cocktail: Bruce Wine Bar
Bruce Wine Bar in Thornbury is an excellent choice for cocktails. Known for its cozy atmosphere and creative drink menu, this spot offers a delightful selection of local and global wines, as well as expertly crafted cocktails that capture the essence of the season.
Best Place to Take Out-of-Town Guests: Blue Mountain Village
For out-of-town guests, Blue Mountain Village is a must-visit destination. This vibrant area offers a mix of shopping, dining, and outdoor activities, making it perfect for exploring. Guests can enjoy breathtaking views, seasonal events, and a variety of restaurants to choose from.
Best Place for Live Music: Jazzmyns
Jazzmyns in Owen Sound is a stylish venue that combines great food with live music. Known for its creative pub eats and vibrant atmosphere, it frequently hosts local musicians, making it an ideal spot for those looking to enjoy a night out filled with entertainment.
Best Restaurant for Large Groups: Kettles Back Home Cookin’
Kettles Back Home Cookin‘, located in just outside of Chatsworth, is perfect for large gatherings. This family-friendly restaurant is known for its hearty portions and homestyle cooking. With a welcoming atmosphere and a diverse menu featuring all-day breakfast, lunch, and dinner options, it can comfortably accommodate groups looking to enjoy a delicious meal together.
Best Place to Walk Off a Big Meal: Harrison Park
After a hearty holiday meal, take a leisurely stroll through Harrison Park in Owen Sound. This scenic park features beautiful trails along the Sydenham River, providing the perfect setting to enjoy nature.
Best Place for Last-Minute Shopping: Downtown Markdale
For last-minute holiday shopping, downtown Markdale is the place to be. This charming area is filled with shops that include a home decor store, bookstore, toy store, and more. It’s an excellent spot to find unique gifts while supporting local businesses during the festive season.
These local spots will help you create unforgettable holiday memories with your loved ones in Grey Bruce! Follow me on social media @susanmoffatc21 for more local recommendations and real estate updates.
Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
Bank of Canada Reduces Policy Rate by 50 Basis Points to 3.25%
The Bank of Canada (BoC) has made a significant move in its final interest rate announcement of 2024, cutting the key policy rate by 50 basis points to 3.25%14. This marks the fifth consecutive rate cut since June, signaling the central bank’s ongoing efforts to stimulate economic growth and maintain inflation near its 2% target.
Key Points of the Announcement
- New Policy Rate: 3.25%, down from 3.75%
Inflation Status: Currently at 2%, matching the Bank of Canada’s target
Economic Context: Q3 GDP growth was 1%, below projections
Labour Market: Unemployment rate rose to 6.8% in November
Impact on the Real Estate Market
This rate cut could have significant implications for the Canadian housing market:
- Mortgage Rates: Variable mortgage rates are expected to fall by 0.5%
Affordability: Lower rates could improve buying power for some homebuyers
Market Activity: The cut may reinvigorate the housing market, potentially leading to increased sales and price growth
What’s Next?
The Bank of Canada’s next interest rate announcement is scheduled for January 29, 202510. Market watchers will be closely monitoring economic indicators and the Federal Reserve’s decisions in the coming weeks to gauge the potential for further rate adjustments.
Final Thoughts on the Bank of Canada’s Decision
While this rate cut from the Bank of Canada aims to boost economic activity, its full impact on the real estate market and broader economy remains to be seen. Prospective homebuyers and investors should stay informed and consider how these changes might affect their plans. As always, consulting with financial and real estate professionals is advisable when making significant decisions in light of these economic shifts.
Read the Press Release.
Whether you’re a homeowner, prospective buyer, or real estate investor, understanding these market changes is crucial. As your trusted REALTOR®, I’m here to help you navigate these shifts and make informed decisions! Call, text, email, or DM me to chat about how this announcement affects your real estate plans!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
How to Sweeten an Offer without Raising the Price
In today’s hot real estate market, securing your dream home often requires more than just offering the highest price. While the amount you’re willing to pay is undoubtedly crucial, savvy buyers know that there are several other ways to make their offers more appealing to sellers. Let’s explore some effective strategies to sweeten your offer without necessarily raising the price.
Understand the Seller’s Needs
One of the most powerful ways to strengthen your offer is to align it with the seller’s specific needs and circumstances. For instance, the closing date can be a significant factor for many sellers. If they’re relocating for work or have already purchased another property, flexibility on the closing date could be extremely attractive. By accommodating their preferred timeline, you’re offering a valuable benefit that goes beyond just the sale price.
Demonstrate Financial Readiness
Sellers want assurance that the sale will go through smoothly. One of the best ways to provide this peace of mind is by having your finances in order. Consider these steps:
- Obtain a Pre-Approval Letter: Having a pre-arranged mortgage certificate attached to your offer shows the seller that you’re a serious buyer with the means to follow through on the purchase.
- Increase Your Earnest Money Deposit: A larger earnest purchase deposit can demonstrate your commitment to the transaction.
Offer Additional Incentives
Think creatively about what else you can bring to the table:
- Waive Certain Contingencies: While this should be done cautiously, waiving or limiting certain contingencies can make your offer more appealing. Always consult with your REALTOR® before taking this step.
- Minimal Conditions: The fewer conditions attached to your offer, the more appealing it becomes.
- Personal Touch: Consider including a personal letter explaining why you love the home. While this won’t override financial considerations, it can help your offer stand out in a close competition.
Final Thoughts
Remember, in a competitive market, it’s not always about offering the highest price. By understanding and addressing the seller’s needs, demonstrating your financial readiness, and offering attractive terms, you can make your offer stand out even if it’s not the highest bid on the table. Always work closely with your REALTOR® to craft the most compelling offer possible for your specific situation.
Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
November 2024 Real Estate Market Update
OnePoint Association of REALTORS® – Grey Bruce and Owen Sound MLS® home sales rocket up to above-average levels in November.
The number of homes sold in Grey Bruce and Owen Sound via the MLS® System of the OnePoint Association of REALTORS® totaled 228 units in November 2024. This was an advance of 43.4% from November 2023. Home sales were 10.1% above the five-year average and 4.7% above the 10-year average for the month of November. On a year-to-date basis, home sales totaled 2,452 units over the first 11 months of the year. This was up by 6.1% from the same period in 2023.
“Sales activity shot up in November with an unexpected strength, putting us back above typical levels for this time of year,” said Bonnie Looby, President of the OnePoint Association of REALTORS®. “With interest rates gradually winding down we knew that buyers would come back to the market, but we weren’t anticipating this kind of rush so soon. There could be a sense of FOMO among younger first-timers, or keen buyers who are trying to get in before the combination of mortgage regulation changes and further interest rate cuts spur even more competition for demand. In any case, our market is looking very active as we head into what is usually a quieter time of year.”
The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $563,900 in November 2024, down only 0.2% compared to November 2023.
The benchmark price for single-family homes was $572,100, nearly unchanged, down only 0.2% on a year-over-year basis in November. By comparison, the benchmark price for townhouse/row units was $479,900, a minor decrease of 2.9% compared to a year earlier, while the benchmark apartment price was $370,400, a slight gain of 0.9% from year-ago levels.
The average price of homes sold in November 2024 was $668,026, a minor increase of 1.4% from November 2023. The more comprehensive year-to-date average price was $646,786, a small gain of 1.5% from the first 11 months of 2023. The dollar value of all home sales in November 2024 was $152.3 million, a substantial gain of 45.3% from the same month in 2023.
The number of new listings saw a modest gain of 3.1% (10 listings) from November 2023. There were 334 new residential listings in November 2024. This was the largest number of new listings added in the month of November in more than a decade. New listings were 15.7% above the five-year average and 28.7% above the 10-year average for the month of November.
Active residential listings numbered 1,168 units on the market at the end of November, up modestly by 3.7% from the end of November 2023. Active listings haven’t been this high in the month of November in more than five years. Active listings were 43.2% above the five-year average and 27.3% above the 10-year average for the month of November.
Months of inventory numbered 5.1 at the end of November 2024, down from the 7.1 months recorded at the end of November 2023 and above the long-run average of 4.5 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
(1) Sales / new listings * 100; compared to levels from previous periods. (2) Active listings at month end / monthly sales; compared to levels from previous periods. (3) Sale price / list price * 100; average for all homes sold in the current month.
Board & Association Information
OnePoint Association of REALTORS® serves as a unified body representing almost 3,000 real estate professionals across the regions of Huron, Perth, Grey, Bruce, Wellington, Georgian Bay, Simcoe, Parry Sound, Haliburton and Muskoka.
Related: October 2024 Real Estate Market Update
Wondering how these numbers might impact your real estate plans? Whether you’re buying, selling, or just curious about market trends, I’ve got you covered! Let’s navigate the market together! Contact me for a complimentary, no-obligation property valuation!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
Travel Smart: Keeping Your Home Safe While You’re Away
Planning a vacation is exciting, but keeping your home safe while you’re away is crucial. Here are essential home security tips to help protect your property during your time off.
Lock Everything Up
Before leaving, double-check that all doors and windows are securely locked. Don’t forget about garage doors, pet doors, and any accessible ground-level entry points. For added security, consider disconnecting electronic garage door openers to prevent unauthorized access.
Invest in a Security System
A robust home security system can deter potential burglars and provide peace of mind. Look for systems that include features like motion detectors, surveillance cameras, and smart locks that can be monitored remotely. This way, you can keep an eye on your home from anywhere
Make Your Home Look Occupied
To give the impression that someone is home, leave a few lights on or set them on timers. Additionally, consider using smart plugs to control electronics like TVs or radios remotely. A parked car in the driveway can also enhance this effect.
Suspend Mail and Newspaper Deliveries
An overflowing mailbox or a pile of newspapers signals to burglars that you’re away. To prevent this, either ask a trusted neighbour to collect your mail or contact the post office and newspaper service to hold deliveries until you return.
Keep Valuables Out of Sight
Store valuable items like jewelry and electronics in a safe or lockbox, preferably out of sight from windows. This reduces the temptation for thieves looking for easy targets.
Be Mindful of Social Media
Avoid posting about your vacation plans on social media until after you return. Broadcasting your absence can attract unwanted attention from potential burglars.
Use Timers for Outdoor Lights
Install motion-sensor lights around your property or use timers for outdoor lighting to create the illusion of activity when it gets dark. This can deter intruders who prefer to operate under the cover of darkness.
Ask for Help
Enlist friends or neighbours to check on your home periodically while you’re away. They can collect mail, water plants, and maintain the appearance of occupancy, which is a strong deterrent against break-ins.
Hire a House Sitter
If you’re particularly concerned about security, consider hiring a house sitter who can live in your home while you’re away. This option provides continuous oversight and care for pets and plants.
Review Your Insurance Policy
Before you leave, ensure your homeowner’s insurance policy is up-to-date and covers theft or damage adequately. This preparation will provide additional peace of mind while you’re away.
Final Thoughts on Keeping Your Home Safe While You’re Away
By following these tips, you can enjoy your vacation knowing that you’ve taken proactive steps to secure your home against potential threats. Finally, experts recommend creating a home security checklist, so you don’t forget anything. That alone will give you peace-of-mind. Safe travels!
Looking to buy, sell, or invest? As your REALTOR®, I’ll guide you every step of the way. Contact me today and let’s turn your real estate dreams into reality!
For more information, contact:
Susan Moffat, REALTOR® with Century 21 In-Studio Realty Inc., Brokerage
519.377.5154
susan.moffat@c21.ca
