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There’s nothing new about the real estate markets in Ontario or British Columbia. Home sales and prices have risen yet again. That is bad news for prospective buyers who were hoping to purchase a home this year. But there is something new and exciting happening in Alberta, and this trend could bring some much-needed activity to the province’s weakened economy.

The real estate market in Alberta is heating up, but housing prices are still reasonable enough that first-time buyers can invest in a property that they can actually afford.

Ontario and B.C. have been experiencing dramatic bidding wars and rapid sales for over five years. Tiny fixer-uppers are selling for $1 million and supply doesn’t appear to be satisfying demand.

Home sales are up in Alberta, and supply is decreasing faster than most could have anticipated. March recorded over 8,500 provincial sales, making it the strongest March on record. The Alberta Real Estate Association noted that home sales had been relatively weak before COVID-19, but drastic interest rate cuts, changing housing preferences and improved savings for some have supported the surge in housing demand.

The average price for a detached home was just below $500,000 in March. Calgary recorded a March benchmark price of $516,300 for detached homes. While that is eight per cent higher than March 2020, it’s nowhere near the $1-million mark. In Edmonton, single-family homes sold for an average of $457,936 in March, a 13.3 per cent year-over-year increase from March 2020, and a 4.6-per-cent increase from February 2021.

Currently, the challenge for several Albertans isn’t finding a home within their budget. Rather, they need to get used to making purchasing decisions quickly. Millennials and Gen Zs are entering the market in Alberta and are driving the growing demand for properties under $600,000. There’s finally some competition, but the current state of the market is healthy by most standards.

In 2014, Alberta’s oil boom came to an abrupt halt. The record-high volume of worldwide oil inventories in storage caused crude oil prices to collapse. By February 2016, Alberta’s oil was valued as the cheapest oil in the world.

Alberta’s recession ended in 2017, but the province is still in recovery. Population growth declined in 2014 and has struggled to come back up. There is still a shortage of jobs but Albertans who are employed in trades positions, construction and energy often earn more than employees who hold similar positions in other provinces.

Alberta’s economy isn’t expected to exceed pre-pandemic levels until 2023, reports ATB Financial. The forecast, however, does predict a return to growth in 2021 and anticipates growth of 3.3 per cent in both 2021 and 2022. These predictions depend largely on how disruptive the pandemic is this year, and the demand for oil.

ATB Financial anticipates Alberta’s unemployment rate to hold around 11 per cent into next year, but this might not be a dealbreaker for prospective buyers currently living in other parts of Canada.

Currently those who can work from home are being as productive as they possibly can from their kitchen table, bedroom or couch. Chances are high that most office workers will not be commuting to work more than two or three times a week, even after the pandemic has ended. In rarer cases, some companies have said that employees never have to return to the office if they don’t want to. This has given people options that they never had before.

With a desire for more space and an ability to work from anywhere, people currently living in Ontario or B.C. could, in theory, move to Alberta. It’s not something that everyone could or would be willing to do, but if people are looking for space at a reasonable price, Alberta’s got it. Alberta also has big cities and cosy rural areas, and while it would take some time to adjust to the cold, the warmer months are a delight.

In return, Alberta would see a more active economy, with more people shopping, attending schools and requiring personal care.

While most prospective buyers won’t likely move to a new province to find their dream home, it is an option worth considering. For those who are seriously thinking about it, don’t wait too long. Alberta’s real estate market could transition from warm to hot very soon.

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Canadians invest in home renovations to improve quality of life, not to add value in current Canadian real estate market

• Challenging Canadian housing market conditions put additional importance to home renovations since the start of COVID-19, both for those looking to stay and those selling
• More than half of Canadians renovated their home in 2020 with the intention of living in it, with 29% renovating to enhance their lifestyle for non-essential reasons (aesthetic and/or recreational purposes) and 29% doing so for essential reasons (safety and maintenance)
• Only 16% of Canadians said they renovated to increase the market value of their home in order to sell within in the next one to three years

A new report by RE/MAX Canada is shedding light on shifting consumer trends in home renovations and the perceived return on investment (ROI), as impacted by COVID-19 and historically tight conditions across the Canadian real estate market. The RE/MAX 2021 Renovation Investment Report found that more than half of Canadians renovated their home last year for personal or “non-ROI” purposes, with three in 10 (29 per cent) choosing to renovate for non-essential “lifestyle” reasons, such as recreation-inspired projects.

A Leger survey conducted on behalf of RE/MAX Canada found lifestyle impact to be the top reason for renovating during the course of the pandemic, ahead of motives such as making essential renovations to accommodate life in lockdown (17 per cent), or to increase the value of the home with the intention of selling in the next one to three years (16 per cent).

Despite the trend of home renovations for personal use and enjoyment, 59 per cent of Canadians still said they always consider the return on investment that a renovation will have on their home’s overall market value, so while there is a current renovation trend based on lifestyle aspirations, practicality is never far from the surface.

“The notion of the home as an investment continues to be an important consideration for Canadian homeowners; however, they clearly value the home for what it is meant to be: a place to live and enjoy spending time,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The pandemic has influenced virtually every aspect of our lives, including what Canadians want and need in a home. The uncertainty also compelled many sellers to move to the sidelines or renovate their home to accommodate current quality-of-life needs, which has further tightened conditions across many Canadian real estate markets.”

This lack of inventory is expected to be a continuing factor in the spring housing market across Canada. In its market outlook for 2021, RE/MAX identified seller’s market conditions in 82 per cent of regions, with a noted spike in demand for single-family dwellings putting additional pressure on already limited supply.

“Canadian real estate has continued to perform above and beyond expectations, with an increased opportunity for sellers to see a strong return on their investment given current demand,” says Christopher Alexander, Chief Strategy Officer and Executive Vice President, RE/MAX of Ontario-Atlantic Canada. “As we’ve seen over the past year, strong seller’s markets continue to dominate many regions across Canada, with homes selling in record time and at record prices. While the impact that specific renovations have on ROI will vary by regional conditions, the Canadian housing market has generally shown us that you can’t go wrong with anything that improves your home in any way.”

With this in mind, nearly one year after the start of cross-country lockdowns, Canadians are still making renovation decisions based on pandemic living, with over half (55 per cent) of survey respondents stating that they have already done or would like to do a home renovation within the next year. Of this group, 35 per cent say they would opt for minor renovations, such as painting.

RE/MAX brokers across Canada were also surveyed for the report and identified fresh paint and landscaping as two upgrades that yield a high ROI, despite being low-budget and minor in nature. This is in alignment with and good news for the nearly half (47 per cent) of Canadians who said they would want to keep their home improvement budget below $10,000, even if the guaranteed ROI was at least 10 per cent. Three in 10 Canadians (31 per cent) would bump up their spending from $10,000 to just under $50,000, and only four per cent would consider spending more than $50,000.

Sixty-five per cent of RE/MAX brokers surveyed also claim that kitchen upgrades, including cabinets, countertops and appliances, yield the highest ROI for sellers, with 87 per cent of brokers naming the kitchen renovation as the top home improvement resonating with buyers in the Canadian real estate market.

Renovations and Canadian Real Estate: Regional Market Insights
In Western Canada, Calgary, Edmonton and Victoria, homebuyers want the move-in-ready experience, with homes that are already entirely renovated being most in demand. Given this, sellers in these regions have the potential to see a large return on their renovation investment. In Greater Vancouver, outdoor improvements are one of the optimal ways for homeowners to get the best ROI, with landscaping among the top five renovations to undertake. It’s also one of the most common renovations that homeowners in this region are taking on themselves, versus hiring a professional to do the work.

Throughout Ontario, RE/MAX brokers are reporting that listings are selling quickly, regardless of their condition or renovation status. Regions including Toronto, Ottawa, Hamilton-Burlington, Niagara, London and Kingston/Napanee saw a strong shift toward outdoor upgrades and amenities in 2020, specifically the addition of a pool or larger exterior living area. Much of this demand was prompted by COVID-19 and the desire for more recreational space within the home – a trend that is not anticipated to be a permanent one. Bathroom renovations and new flooring are highly regarded as yielding the best return on investment. Across markets such as Mississauga, Thunder Bay, London, Barrie and Ottawa, painting is noted by RE/MAX brokers as the top renovation that homeowners are doing themselves, as well as one of the best ways to also see an improvement on ROI.

In Atlantic Canada provinces, RE/MAX brokers also placed importance on upgraded kitchens, but noted flooring upgrades as one of the best renovations for homeowners to get optimal ROI in regions including Fredericton, Saint John and St. John’s. Meanwhile in Charlottetown, roofing upgrades and landscaping are two of the top renovations that can be done relatively quickly to improve ROI, along with painting, as echoed across nearly all regions surveyed. In Saint John, the finished basement is one of the most sought-after renovations by buyers and creating more open-concept spaces is noted as one of the top three ways for sellers to get the best return on their investment.

Consumers’ Understanding of ROI
Only 51 per cent of Canadians claimed to have a thorough grasp of the renovation process and nearly half either don’t know or disagree that they have the understanding needed to make ROI-enhancing renovation decisions. Furthermore, 50 per cent of Canadians surveyed said they expect their REALTOR® to advise them on the right renovations to take on if they expressed interest in doing so when purchasing a home. This reliance on external professionals to guide home-buying decisions is anticipated to continue.

Additional highlights from the 2021 RE/MAX Renovation Investment Report

• When it comes to the renovations that yield the best return on investment, Canadians see these as the best renovations to undertake:
  – 70% of Canadians state redesigning larger spaces, such as kitchens or washrooms
  – 56% of Canadians state minor updates, such as refreshing paint
  – 55% of Canadians state landscaping the outdoor space
  – 50% of Canadians state changing the home layout, including adding rooms or knocking down walls
  – 32% of Canadians state updating décor and furniture
• 49% of Canadians prefer to contract out most or all of the renovation work
• 33% of Canadians consider themselves to be very capable when it comes to home renovations, and don’t need professional help

About the 2021 RE/MAX Renovation Investment Report
The 2021 RE/MAX Renovation Investment Report includes data from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on insights and local developments. Regional summaries with additional broker insights can be found at remax.ca.

About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,540 Canadians was completed between February 4-7, 2021, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.

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Canada tops ratings as “a stable and safe society in which individuals can develop and prosper, and is open, fair and equitable.”

Canada has been ranked the top country in the world according to a major new study.

For the first time, the U.S. News & World Report has placed the Great White North at the top of its annual Best Countries Report.

Canada spent several years in the second and third positions on the roundup. However, this year it ranked first in both the Quality of Life and Social Purpose sub-rankings, “meaning that it is seen as a stable and safe society in which individuals can develop and prosper, and is open, fair and equitable.”

The report – formed in partnership with BAV Group, a unit of global marketing communications company VMLY&R, and the Wharton School of the University of Pennsylvania – is based on a survey that asked more than 17,000 people from four regions to assess perceptions of 78 countries on 76 different metrics.

In addition to an overall ranking, the report includes 25 sub-rankings and “best for” lists including the Best Countries for Women, Most Powerful Countries and Best Countries for Racial Equality.

Three new countries – Cambodia, El Savador and Uzbekistan – are included in this year’s report.

Report authors mention that Canada adopted a national policy of multiculturalism in 1971, which celebrates diversity. Further, they mention that the North American country “welcomes immigrants” and has “participated in many peacekeeping missions.”

The report also notes that, with a national GDP of $1.74 trillion, Canada is a significant exporter of energy, food and minerals. “Canada ranks third in the world in proven oil reserves and is the world’s fourth-largest oil producer,” the report added.

Canada is also lauded as a “high-tech industrial society with a high standard of living.”

The top 10 countries in the world
1.Canada
2. Japan
3. Germany
4. Switzerland
5. Australia
6. United States
7. New Zealand
8. United Kingdom
9. Sweden
10. Netherlands

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Lumber prices have more than doubled in the past year and are still rising, adding another layer of cost to B.C.’s skyrocketing house prices

As of April 9, a basic SPF (spruce, pine, fir) two-by-four cost a record high of $1,132 per thousand board feet, according to the Ministry of Forests, Lands, Natural Resource Operations and Rural Development’s weekly B.C. lumber price tracking.

This compares to an average of $532 a year ago and to $372 in pre-pandemic 2019. The price was up nearly $100 from a week earlier.

“A sheet of [4-foot by 8-foot] half-inch plywood costs $65 today. It was $51 a few days ago,” said contractor Brian Barker of Sunshine Coast Roofing Ltd. on April 12, as he prepped a roof for more than 50 sheets of plywood.

A standard eight-foot 2×4 is now more than $7 after tax, he added.

The price of standard plywood panels hit $1,223 per thousand board feet on April 9, up from $1076 a week earlier and twice the price from a year ago.

And there appears little relief in sight.

In a podcast hosted by Canadian Forest Industries, Keta Kosman, owner of Madison’s Lumber Reporter, said she is expecting the pace to continue for as much as the next couple of years – and not just because the pandemic sparked a boom in the repair and remodeling market. In 2020, millennials made up the largest cohort of first-time buyers for the first time, Kosman notes.

“So, we’re now having a large demographic entering the housing market that has nothing to do with the pandemic. So, it’s very positive [for lumber producers],” she said. “Definitely through this year, there will not be a slowdown, and potentially also through 2022.”

Lumber prices are now at all-time highs in both Canada and the US, and builders estimate the rising wood costs would nail an extra $10,000 to $20,000 onto the price of a new house.

“We do expect the lumber prices to stay quite elevated for quite a period of time,” said Kevin Lee, CEO of the Canadian Home Builders’ Association.

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A few DIY cosmetic upgrades can drastically alter the appearance of a home and help catch the attention of interested buyers, increasing your return when the home goes from ‘for sale’ to ‘sold.’

Looking to sell your home in the near future? Small investments in the aesthetic of the property could add value and increase the ROI – even if the renovations aren’t too costly.

With springtime underway, consider these DIY-friendly upgrades for a space refresh just in time to sell.

Paint the walls
Wall color preferences are personal, and statement choices like bold paint colors or accent walls can help people express their personal style within their home. Unfortunately, prospective buyers may not share that affinity for such boldness – and it may shape their view on the home in its entirety.

Consider repainting the interior walls a soft, neutral color. The coherence can help a home feel larger, and will present the space as a clean, blank canvas for an interested buyer to personalize.

Resurface kitchen cabinets
Often seen as the heart of the household, kitchens can be a make-or-break feature for prospective buyers. Unless they are planning on remodeling prior to move-in day, new homeowners will want a kitchen that is functional and at least moderately upgraded.

A quick and budget-friendly way to give your kitchen a makeover is to resurface the cabinets. Refacing them structurally and/or with a new coat of paint will update the overall appearance of the kitchen and can turn older or basic cabinetry into a more custom asset.

According to The Spruce, resurfacing cabinets can cost 40%-50% less than replacing kitchen cabinets altogether, making it a great option for sellers.

Shape-up outdoor space
From patios to grassy yards, outdoor space is an in-demand feature these days – especially heading into the warmer months. With grass growing green again and flowers beginning to bud, frame any outdoor living space on your property to look like a relaxing sanctuary.

Arrange existing patio furniture in an inviting way. Inexpensive outdoor additions include hanging Edison bulb string lights, planting flowers in pots and adding a weather-friendly rug under tables or chairs to frame the space. And remember, the greenery and landscaping in a backyard can make a home look more polished and sell for higher value – read up on why.

Stage with buyers in mind
In addition to thoroughly cleaning, refine any clutter or personal mementos inside the home. Simplifying the space will help it appear tidier and larger.

Working with the furniture and décor you already own is easy and free. As you assess what items line shelves, decorate the sofa and accent the bed, consider what you – the seller – would be thrown off by when touring someone else’s house. Also remember to highlight the space by opening up curtains and maximizing natural light when it’s time for showings.

Boost curb appeal
It doesn’t have to cost much money for the outside of a home to look welcoming and well-cared for. Make sure to mow the lawn and tend to any other greenery that may have overgrown or died in recent months. Adding items like a new welcome mat and planters beside the front door are low-cost ways to make a big impact on the home’s external appearance.

To give the exterior a more drastic makeover, consider repainting the front door for a pop of color. A pro tip is to paint the framing of the storm door outside as well for continuity.

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Warmer weather brings with it a feeling of new possibilities, and many homeowners ready for change needn’t look further than their own backyard. Literally.

Previously reserved as the dog’s domain, many homeowners are beginning to see the potential their yards offer to expand their functional living space (sorry, Fido).

“We’ve always enjoyed our outdoor spaces, but now people have taken it to a whole other level,” says Rose Kemp, a real estate agent with RE/MAX Town Centre in Orlando, Florida.

Kemp says many of her clients are adding amenities to their outdoor space that may have been closed during the pandemic, including putting greens, basketball courts, or even a “she shed” or “sports den.” Zen gardens and quiet areas for meditation are also becoming popular.

“People are creating additional space for whatever their lifestyle is,” Kemp says. “As families are spending more time at home, they’re realizing they aren’t limited to the space that’s inside the house and are creating more living and congregating areas.”

Homes are now being built to accommodate outdoor living. Newer models in Kemp’s Orlando market offer “garage style” doors that open dining areas up to an outdoor kitchen.

Similar to other updates homeowners might consider, adding amenities to a backyard could help increase a home’s value and become a selling point when it’s time to list. According to Kemp, a buyer may be willing to pay between $5,000-$10,000 more on a home with an updated yard than a comparable property without any functional outdoor space.

“Even if they have to pay a little bit more, buyers don’t want to have to recreate the landscaping because they would have to spend more cash out of their pocket,” she says.

In her area, that can mean adding a screen enclosure to a porch or a firepit for backyard barbecues. Of course, homeowners may want to think carefully before making what Kemp calls an “over improvement,” which is an expensive update that likely won’t recoup its cost during a sale. Pools, for example, don’t always offer a return on investment.

“Appraisers may be limited as to how much value they add to a home if it has a pool,” she says. “For example, even if you spend $80,000 installing a pool, it may add only $45,000 during an appraisal. That being said, if homeowners plan to stay in the home for few years, they should create the backyard that will make them the most happy!”

Outdoor space has become such an important consideration for buyers that some sellers are using photo editing software to show the possibilities of a listing that might not be in full bloom.

Peter Schravemade is the Strategic Relationship Manager for the virtual staging company BoxBrownie. He says that for some properties, showcasing the yard can be “essential to the sale.”

“We’ve seen landscaping edits happen more and more to demonstrate potential as buyers look for more space and, in particular, more functional space,” he says.

Real estate agents can also use the software to help buyers envision what a home will look like throughout the year – for example, removing snow from homes sold during winter or adding leaves to trees during the fall.

Schravemade says BoxBrownie can help potential buyers imagine ways they can make the backyard their own.

“My advice is for agents to keep it simple. The best case for this type of edit is to demonstrate an opportunity in the yard or remove an objection – for example, when the buyer says, ‘We would make an offer except for the state of the backyard,” Schravemade says.

Looking to create the perfect garden? Here’s the dirt.
Amenities are important, but lush landscaping is what really makes any outdoor escape come alive. Gardens can take years to reach their full potential, according to Colleen Sellers, owner of Planted Earth Landscaping in Denver, Colorado. Those looking to create a yard that will become a selling point should plant the seeds now.

Fortunately for those without a green thumb, a yard can be low maintenance and beautiful, according to Sellers. It just takes a bit of planning.

“There are no bad plants, just bad gardeners,” Sellers says. “It’s important to know what kind of sun access and soil you have, then pick plants that will thrive in that condition.”

She says to take note of the sun, water, and maintenance needs of plants before bringing them home. That’s one reasons succulents have seen a recent boom in popularity – they can add a modern look to most gardens while requiring very little water.

It may also be a good idea to read up on the latest trends – just like the fashion world, certain flowers and plants tend to fall in and out of style.

“Old-school juniper and dyed mulches aren’t popular right now, and hybrid tea roses can appear dated,” she says. “Knock out roses, which are easier to maintain and less susceptible to disease, are very much in style.”

Ornamental grasses, such as blue avena or shenandoah switch grass, are also on-trend thanks to their easy maintenance and pops of color. Sellers says clients are also more conscious of the environmental impact of their garden, choosing plants that require less water or attract pollinators to the area. For example, bees love hyssop or lavender.

“It’s also important to keep in mind that your design is growing, so it changes,” Sellers says. “It’s not like picking the right lamps which stay exactly the same. Plants will grow and do things that sometimes you’re surprised about!”

For those looking to take the guesswork out of gardening, there are plenty of benefits to hiring a professional. Not only can a pro landscaper advise which plants will thrive in a certain yard’s conditions, they can also save homeowners the time and labor of installation.

“I think a lot of homeowners start a project and get about a fourth of the way in and realize how difficult it is to relocate 10 wheelbarrows of soil,” Sellers says. “When you a hire a professional, we save you the sweat equity of doing everything yourself.”

Creating an outdoor space can take a lot of work and be an investment. But according to Kemp, it not only opens up room for entertaining and hobbies, it can provide a way for the current owner’s story to live on after the home is sold.

“I have friends from Puerto Rico who chose amazing plants that reminded them of home and staged their yard perfectly, so you feel like you are on a tropical island in their backyard,” Kemp says. “They put so much work into it, and that will be attractive to a buyer. They’ll see a whole creation that is already done – buyers love that.”