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Interest Rates vs Housing Prices

Many buyers and would-be-buyers have the same question when it comes to interest rates and their relation to housing prices. They often ask what will happen to housing prices if interest rates go back down. The short answer is that housing prices will rise along with buyer competition. Let’s go into why this will happen.

First, remember that the real estate market is all about balance. That balance is based on the economic principle of supply and demand. When supply is low and demand is high, prices will increase. When supply is high and demand is low, prices decrease.

Right now, we’re in a period of increased interest rates for mortgages and other loans as you have probably heard much about. During COVID and the following recession, interest rates were dropped to historic lows to stimulate the economy. Many people went out and bought houses to take advantage of these low rates, which created a white-hot housing market where demand was high above the available supply. As a result, housing prices skyrocketed.

In 2022, inflation became a problem and the Bank of Canada started to raise interest rates to curb the amount of money moving through the economy. Since then, interest rates have risen pretty steadily. As a result, the housing market cooled slightly.

Because interest rates are now higher, many potential buyers have started to put off buying. This has decreased demand for homes, and–you guessed it–has either made home prices plateau or decrease depending on the area’s market.

But when interest rates go back down, buyer demand will certainly increase. Following supply and demand, the increased demand will make home prices rise–along with the competition to snag one of those homes.

At the end of the day, the real estate market will always be in flux because of supply and demand and outside market forces. This shows that there will never be a “perfect” time to buy for everyone. Instead, the right time to buy depends on your specific financial situation and where you are in your life. If it makes sense for you to buy a home now, then go for it! You can always refinance to a lower interest rate down the road.

My advice will remain the same: buy a home when it’s the right time for you. If you need help to see if now is the right time for you to buy, reply to this email and let’s talk!

Harpreet Christie
RE/MAX of Lloydminster
780-205-7653

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205 5120 48 STREET in Lloydminster
 

I have sold a property at 205 5120 48 STREET in Lloydminster. See details here

This 2 bed, 2 bath Meridian condo is conveniently located in the heart of downtown and close to many amenities. Bright, open concept floor plan features island, large laundry/storage room, south facing balcony and all appliances are included. The building is equipped with an elevator and is wheel chair accessible. Gather with your friends in the common area games room for coffee and activities. Indoor, secured heated parkade is a benefit to you year round! Make your move into adult living today!

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8 Tips to Prepare Your Home for Painting

With the autumn season approaching, now is the perfect time to do a few projects around the house and get your space looking great before the rush of the holidays. One of the best ways to take a room from dinghy or dated to fresh and bright is through paint! 

When sellers ask how to boost their home’s value, painting is one of the first suggestions offered. That’s because the way a room looks and feels is entirely dependent on the colour of the walls and ceiling. Now that you know why painting is such a great fall home project, you’ll want these 8 painting tips to make the painting process as easy as possible. 

  • Safeguard belongings: Take all of the easily moveable things out of the space with a focus on anything breakable or fabric. While no one wants an accident to happen, it’s better to be safe than sorry!

  • Fill holes: Look over your walls and find any holes from hangings that need to be filled. For small holes, spackle or drywall compound will do the trick.  

  • Repair cracks: Check out your walls and ceiling for any cracks and patch them up. If you find any large cracks, it’s a good idea to get an inspector to check them out.

  • Add caulk: Next, take a look at anywhere caulk is applied (baseboards, windows, door frames) and caulk anywhere there’s a gap. 

  • Clean and prime: Don’t skip this step! Cleaning and priming your walls will make the actual painting part go so much faster and you’ll use less of your paint–saving money in the long run. 

  • Tape it all up: Once your walls are dry and ready to go, tape it up and drape tarps/drop cloths over any large pieces of furniture.

  • Gather your supplies: You’re nearly ready to paint. Make sure to gather all your supplies into the room to make everything easily accessible. 

  • Paint!

These tips will help you make your space look like it was painted by a professional without the expense. With just a gallon of paint or two and a little time, you can refresh your home and make it the space to be as the weather gets colder. 

Harpreet Christie
RE/MAX of Lloydminster
780-205-7653

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5905 41 STREET in Lloydminster
 

I have sold a property at 5905 41 STREET in Lloydminster. See details here

This beautiful home at 5905 41 Street in Lloydminster offers a comfortable living experience with three bedrooms upstairs and one bedroom downstairs. The house has been exceptionally well maintained and boasts updated vinyl plank flooring, carpets, shingles and central air conditioning. The spacious kitchen is perfect for entertaining and has access to the backyard through the dining room. The main floor features vaulted ceilings, adding a touch of elegance to the space. The 4 level split design provides ample space for a family, with a family room on the 3rd level featuring a wood stove, a guest bedroom, a three-piece bathroom, and a recreation room on the fourth level. The heated double attached garage is perfect for keeping your vehicles warm in the colder months, and there's also a triple concrete driveway and RV parking available. The front and back yards are beautifully landscaped with mature trees, plants, an updated deck and underground sprinklers, making it a perfect outdoor oasis for relaxation. This home is a must-see for anyone looking for a comfortable and welcoming place to call home in the Southridge neighbourhood of Lloydminster. 3D Virtual tour Available.

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28 Ravine View ESTATES in Rural Vermilion River, County of T9V 3A7
 

I have listed a new property at 28 Ravine View ESTATES in Rural Vermilion River, County of. See details here

Welcome to 28 Ravine View Estates, a spacious 5-bedroom home just minutes from Lloydminster. This beautiful property perfectly blends country living and modern farmhouse updates. Situated on 3.73 acres, this home provides ample space and privacy for your family. As you enter the property, you'll notice the large barn and detached double garage/shop wired with 220V, offering plenty of storage or shop space for all your needs. Additionally, there is a double attached garage for convenient parking. Inside the home, you'll find a well-maintained and updated interior. The furnace has been recently updated, ensuring optimal comfort and energy efficiency. The primary bedroom features a convenient 2-piece ensuite for added privacy and convenience. The updated vinyl plank flooring adds a touch of modern elegance to the living spaces. The refreshed kitchen cabinets provide ample storage and a contemporary feel. Some windows have been replaced, allowing plenty of natural light to fill the rooms. One of the highlights of this property is the two-tier deck off the dining room, providing a wonderful outdoor space for entertaining and relaxation. There is also a firepit area, perfect for cozy evenings outdoors. Nature enthusiasts will appreciate the trail access on each end of the yard, allowing for easy exploration of the surrounding natural beauty. The property boasts wild chokecherries and Saskatoon berries, adding a touch of natural splendour. A well-maintained garden, raspberry bushes, and 4 apple trees offer the opportunity for a fruitful harvest. There is water access behind the barn for horse lovers, providing a convenient water source. Whether you're an avid equestrian or enjoy horses, this feature adds to the property's versatility and charm. Take advantage of owning this delightful country home with modern updates. Experience the tranquillity of 28 Ravine View Estates and make it your slice of paradise. 3D Virtual Tour Available.

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This is How Much Mortgage You Can Afford

Budgeting for a mortgage can be tricky, especially for first-time homebuyers. It can feel pretty abstract and complicated, but it’s so important to know how much mortgage you can afford before you start the home buying process. Luckily, it’s pretty easy to get a rough estimate of how large of a monthly mortgage payment you can afford. Just follow these 3 simple steps to find out your mortgage payment ceiling.

  1. Step 1: Calculate your gross monthly income. Sum up all of your (and your partner’s, if applicable) monthly income before taxes. Think about your day job, side hustle, and investment income for this. Since this is what your mortgage calculation will be based off of, make sure that what you’re including in your monthly income is at least what you expect to earn in the next few years. For example, let’s say that your family brings home $8,000 per month before taxes. 
  2. Step 2: Multiply your gross income by 0.36. Generally, lenders won’t give you a mortgage that is more than 36% of your gross income. By finding this number, you’ll get a feel for the ceiling of what your mortgage payment could be. From our example with an $8,000 monthly income, multiplying by 36% gets you $2,880. 
  3. Step 3: Subtract your monthly debt. If you have any car payments, student loan payments, credit cards, or any other debt that you’re paying off, subtract it from the number you got in step 2. This will make sure that you’re not overextending yourself on debt payments and your mortgage payment. For example, let’s say that you have $1,200 of monthly debt. Subtracting that from $2,880 gives you $1,680. 

After you complete step 3, you have the final monthly mortgage payment that you can afford. Keep in mind that this number reflects the most you can afford for your mortgage, which should include the house payment, interest, taxes, HOA fees and anything else that will be wrapped into your payment. This estimate is handy to have to see how your budget stacks up against the homes that are available in your market so you can see if you need to adjust your budget or what you’re looking for in a home. 

If you’re ready to seriously dive into the real estate market and want more than a rough estimate of how much you can afford, you can talk with a lender about getting pre-approved to buy a home. Want to talk more about how you can buy a home in our market? Feel free to reach out to me anytime.

Harpreet Christie
RE/MAX of Lloydminster
780-205-7653

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4701 45 STREET in Lloydminster
 

I have sold a property at 4701 45 STREET in Lloydminster. See details here

Welcome to 4701 45 Street, Lloydminster, SK, in the charming East Lloydminster Neighbourhood. This beautifully maintained home is within walking distance of schools, parks, and amenities, making it an ideal location for families and convenience-seekers. Recent upgrades include newer shingles, windows, doors, flooring, paint, siding, stone and more, enhancing the home's overall appeal and efficiency. The kitchen has been tastefully upgraded, offering culinary enthusiasts a modern and functional space. Appliances are included, making the transition easy for the new residents. There's ample room in the basement, featuring a summer kitchen, no shortage of storage space, and the potential to create additional bedrooms or customized living areas to suit your needs. Enjoy the convenience of central air conditioning, providing a pleasant atmosphere on hot summer days. The immaculate yard adds a touch of serenity and charm to the property, providing a perfect space for outdoor gatherings and relaxation. A large shed on the premises adds extra storage capacity, keeping your belongings safe and organized. The property also boasts a convenient carport, protecting vehicles from the elements and adding to the home's overall functionality. Take advantage of the opportunity to own this incredible property in a convenient location. Schedule a viewing today and experience this home's charm and comfort. 3D Virtual Tour Available.

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5620 49 AVENUE in Lloydminster
 

I have sold a property at 5620 49 AVENUE in Lloydminster. See details here

Looking for an affordable starter home in Lloydminster? This 2 bedroom home is located in the North Lloydminster neighbourhood and would be perfect for a first-time buyer! The home has been updated with new windows, shingles, and a furnace and features a large yard with alley access. There is also a 4 piece bathroom and main floor laundry. This home is across from the exhibition grounds, so it would be perfect for someone who likes to be involved in the Lloydminster community! Why rent when you can own your own home? This home was built in 1930 and has 982 square feet of living space. Don't miss out on this great opportunity to own your own home! 3D Virtual Tour Available.

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5320 50 STREET in Lloydminster
 

I have sold a property at 5320 50 STREET in Lloydminster. See details here

This home was taken down right to the studs and rebuilt.... And what a great starter or rental property for anyone who is looking. A total of 2 bedrooms, kitchen/dining, living room and bathroom on the main, and one bedroom,¾ bathroom, kitchen/dining and living room in the basement. The home has new drywall, windows, siding, soffit, fascia and eavestrough, new electrical service, new flooring-light fixtures-interior doors and closets-baseboard and casing.... When you walk into this home it feels like home!! This home features a non-conforming basement suite with separate entrance to a common area for laundry-everything is ready to go and we know you wont be disappointed the moment you walk through the door. Added to this is the benefit of a fully fenced and private backyard and a single detached garage measuring 14' by 22'.

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10 2310 53 Avenue in Lloydminster
 

I have sold a property at 10 2310 53 Avenue in Lloydminster. See details here

Evergreen Awaits! Check out this pristine Adult 45+ condo located in the quiet area of Evergreen Park! When you compare this home to others in the market you'll see the difference because not all condo's are created equal. This 3 level split has had tons of upgrades. Really cool closet doors greet you in the entrance and you'll be impressed with the wide open concept with vaulted ceiling. Classy, high end vinyl plank has recently been installed and the kitchen will "wow" you! The large granite island will be your favorite gathering place and the granite countertops continue through the kitchen. The additional cabinets are another plus and are accented by a gorgeous back splash. Another great feature you'll notice are the two extra large picture windows that will bathe you in sunlight. There's a big deck with privacy wall and Evergreen Park has some of the nicest grounds and landscaping in Lloydminster. Venture upstairs and you'll find granite in the 4 piece bath wand a very contemporary sink. The primary bedroom is like something from a high end hotel. French doors welcome you in and the bedroom is so big there's even room for a sitting area. Of course it has a large walk in closet but the show piece is the ensuite! It features floor to ceiling tile and even a walk in steam shower! Another large bedroom is located on the lower floor along with a 3 piece bath and family room. But wait...there's more! You have to check out the heated garage...it's completely finished, has a durable tiled floor, built in cabinets and lots of countertop space! It's so nice you might not even want to park in it! All this and affordable condo fee's with no more snow shoveling or lawn cutting make this a special home, so have a look.

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5410 15 STREET in Lloydminster
 

I have sold a property at 5410 15 STREET in Lloydminster. See details here

Walk into this modified bi-level's spacious front entrance and feel instantly at home. You'll love having guests enter without having to see the rest of the house, create that welcoming space you've always wanted. Walk up the hardwood stairs to the main floor which has vaulted ceilings, a stone fireplace, separate dining area and kitchen with corner pantry. The raised eating bar is the perfect spot for those before school breakfasts! Two bedrooms and a bathroom are tucked away on their own so you won't wake the littles if you want to have a cozy movie night by the fire. The master suite is situated above the garage. It has everything you could want, walk in closet with plenty of shelves and storage and your very own private ensuite. Downstairs has two more bedrooms, a bathroom, and a wide-open living area. Let your imagination go wild with all the possibilities this living area could provide for your family. This college park home has all the little extras, RV parking, A/C and a heated garage. Love sitting outside watching the prairie storms or just enjoying the late summer sunsets? The covered deck allows you to do just that! Give us a call today so we can get you into your new home and catch those last few summer sunsets!!

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