If this is the year you’ve been dreaming about – the year you purchase a new home, we’ve rounded up a short list of things to consider before you do. As an informed home buyer, you’re doing your research, touring neighbourhoods, learning about communities, builders and homes that are for sale. This is all great and will help you make a decision that is right for you. Some of our items to consider might be things you’re already thinking about, and others might be new information. If you want to buy a new home this year, gather the tools you need and surround yourself with experts so that when you make your move, it’s a smooth and memorable experience!

Here’s our list of the top things to consider when buying a new home in 2022:

Finding The One

If you’ve been house-hunting for a while, this will come as no surprise to you: finding the right home for you can be challenging!

It takes time to research neighbourhoods and communities. You have to make a must-have list and a nice-to-have list, with items like the type of home you want, the size and also think about its proximity to amenities, schools and transit, if that’s what suits your lifestyle.

Once you shortlist neighbourhoods you like, you may encounter a supply problem. In established neighbourhoods, it can be hard to find resale homes that check every box, especially if you aren’t in the market for a renovation.

New construction homes are being built as swiftly as they can, especially in the GTA, where it can take time to get shovels in the ground and there are only so many tradespeople to go around to build and finish the structures. If you do your research and get to know a reputable builder, you can stay informed about upcoming projects and releases of homes in communities under construction.

Purchasing a new construction home in 2022 is an exciting way to buy a new home this year because you can watch your home be constructed from the ground up. You also work with a design professional to select exterior and interior finishes that will ensure your new home is designed to your personal taste.

Knowing What You Can Afford

In March 2022, the Bank of Canada announced that it would be raising interest rates, a move many had been expecting. If you are planning to buy a home in 2022 and you have already engaged a financial expert and have attained pre-approval for a mortgage, then you may have avoided some extra costs. It’s important to check in with your experts and know how long the pre-approval rate lasts.

If you are wondering about buying a home with the increased interest rates, the best thing you can do is meet with a financial expert and figure out what type of home you can afford. This step will help you narrow down your choices and it is best to do before you begin house hunting. Understanding your budget will help guide you to different locations, home types and sizes, depending on what you can afford to spend in 2022.

New vs. Resale Homes

Considering a new home or a resale home is an important step to take before purchasing a new home this year.

A new home can take time to be constructed, but you do get to select finishes with a professional designer that are in your taste and style. You also have to consider the community. If you are moving in during a later phase, there could be roads, homes and some amenities already constructed, but if you are moving in just as the community is getting started, you get to experience it coming to life.

A resale home may be in an established neighbourhood, with existing parks and amenities in place, but you may not get the design or finishes inside the home you prefer. The home may need some renovation or repair, depending on its age and former owners. There also could a difference in price, depending on the location. In many cases, homes in established neighbourhoods are priced higher than they would be in new communities.

Invest in Your Future

Buying a new home might be the biggest investment you make in your lifetime. It is an investment in your future.

A Leger survey conducted on behalf of the RE/MAX Canada revealed that nearly half of Canadians still think that buying a home is the best investment decision you can make today.

“Canadians recognize the value and investment potential in their homes. However, market challenges such as rising prices and limited supply have impacted local markets from coast-to-coast, causing angst this past year among those looking to get into the market and those hoping to move up in it,” says Elton Ash, Executive Vice President, RE/MAX Canada.

“Despite this, it’s encouraging to see that many are feeling confident in the housing market in 2022 and view Canadian real estate as a solid investment.”

Whether you are buying a new home as a primary residence, a second or vacation home or you are a first-time home buyer, the real estate market is robust and resilient. The Centre for Urban Research and Land Development reports that as of 2016 more than 700,000 millennials in Ontario’s Golden Horseshoe area alone were still living at home and likely to be aging into the market.

“I think we’ve been underestimating the impact of millennials entering home-buying age,” says Diana Petramala, senior economist at Ryerson University’s Centre for Urban Research and Land Development. “Millennials were holding less real estate but more cash in 2019 than generations before them. The ones that could afford to have clearly been saving for that down payment.”

Investing in real estate, in a good location with appreciation potential, is looking like a smart move for many in 2022.

If Not Now, When?

In 2022, the real estate market will continue to offer choice and investment opportunities, especially in the Greater Toronto Area. With the recent Bank of Canada rate increase and encouraging easing of supply chain and pandemic-related issues that impacted the market over the last two years, this could be the right time to purchase a new home. If you have researched your options, engaged experts to help you make an informed decision, then this could be your year! Consider this: if not now, when?

Idyllic and nestled in nature, Kleinburg is a charming historic village on the Humber River, in Vaughan. Situated on a narrow section of hilly landscape, with the river on either side, the village is bounded by Highway 27 on the west and Stegman’s Mill Road to the east.

Perhaps best known for being the inspiration for the Group of Seven and artwork for many Indigenous artists, Kleinburg is home to the McMichael Canadian Art Collection. In addition to a strong arts and culture community, Kleinburg has superb shopping, dining, family festivals and much more, making it a desirable place to live, work and play.

Explore Downtown Kleinburg

Founded in 1848, the Village of Kleinburg was built around a sawmill and a gristmill located on 33 hectares (83 acres) of land owned by John Nicholas Kline. It is assumed that Kleinburg was named after Kline, however, its present spelling was derived from a combination of two German words: Klein, meaning “little or small” and berg, meaning “mountain.” The name “small mountain” perfectly describes the topography and environmental setting of Kleinburg.

Today, much of its heritage character remains in the downtown architecture, the timeless village atmosphere and in the beautiful heritage homes that have been there for a century or more. The main street is lined with boutiques, restaurants, luxury spas and European-inspired cafés. Strolling the charming downtown is an excellent way to get to know the village, in all four seasons. During the winter holidays, the downtown is all lit up and in the summer, vibrant patios are alive with families and friends, espresso-and-gelato-lovers alike.

Reconnect With Nature

Getting outside and reconnecting with nature is as easy as walking out your front door when you live in Kleinburg. The Humber River Trails surrounding Kleinburg offer unique hiking opportunities along the Humber River, and the hills are a favourite for cyclists who hail from across the GTA. In the warmer months Kleinburg is a mecca for cyclists, hikers and families who want to spend more time outdoors. There are easy trails leading from the village core to the McMichael Gallery, and more advanced trails outside the village and all along the way there are quiet picnic spots, bridges to scale and lookout points for the perfect photo opportunity.

With over 70 acres of new parks and greenspace, you can take the dogs for long walks, enjoy endless bike rides, walk or rollerblade and take in nature’s beauty. The 325-hectare Kortright Centre for Conservation is always a great spot for hiking and birding. The Maple Syrup Festival is a family favourite and they have many festivals and events planned throughout the year that allow you and your family to enjoy the outdoors. Kleinburg is also home to numerous golf clubs, including the prestigious Copper Creek Golf Club, which boasts a 40,000-square-foot clubhouse, spectacular landscaped gardens, picturesque gazebos and terraces.

McMichael Art Gallery

Many are drawn to Kleinburg because of the acclaimed McMichael Canadian Arts Collection. Located on 100 acres of forested land, the McMichael gallery is an extraordinary showcase of Canadian artwork in a beautiful natural setting. Here, you can discover beautiful original works from the Group of Seven as well as many Indigenous artists.

Kleinburg’s hills and colourful landscapes were the inspiration for many Group of 7 paintings, and since its opening in 1966, the art gallery has held collections by the famous artists. The property also has a small cemetery where the original members of the Group of Seven are buried.

Getting Around Kleinburg and the GTA

Kleinburg is only 40 kilometres from Toronto, which is easily accessible since the village is only minutes from the Highway 427 extension, Highways 400 and 407. It is also well-served by York Transit and VIVA bus service, as well as GO Transit with the Maple GO Station near Keele Street and Major Mackenze Drive.

At Major Mackenzie Drive and Highway 400 is the new Cortellucci Vaughan Hospital and the area has many public, Catholic and private elementary and secondary schools, as well as preschools and daycares, recreation centres and libraries.

Just outside the village of Kleinburg you will find luxury shopping malls such as Vaughan Mills, world class post-secondary educational opportunities at York University and an abundance of sports and entertainment attractions within minutes.

Sense of Community in Kleinburg

The quaint village of Kleinburg is rich in heritage and community spirit. Once the home of former Prime Minister Lester B. Pearson, it is growing as more homes are built, families move in and businesses, retail and commercial, come to Kleinburg. The village supports tourism, small businesses and the volunteerism is strong here.

The community also rallies around Kleinburg cuisine. There are so many delectable dining spots in Kleinburg from Mediterranean to Italian eateries, like the Villaggio Ristrorante, to the quaint, cottage-styled restaurant, The Doctor’s House, complete with cobblestone pathways leading up to a white wedding chapel in the midst of lush green gardens, can be reserved for large parties and gala wedding celebrations.

Another unique boutique restaurant in the village of Kleinburg is the Avlyn Gardens, surrounded by greenery, this charming Victorian house gives a whole new meaning to restaurant dining. For sweets, confectionaries at Dolcini by Joseph or the gelato at Cookie Crumble Café are both worth a visit to Kleinburg.

Kleinburg is the perfect place to the escape the hustle bustle of a big city, knowing that all of the conveniences you want and need are just around the corner. Living in Kleinburg is quieter and slower pace. Living here is embracing a village lifestyle.

One of the best perks of purchasing a new home is watching it be constructed from the ground up. Before the foundation can be laid and the walls framed, builders hire architects to design floor plans or drawings that layout the space and measurements for every room in your new home.

A floor plan is a bird’s eye view of the home, floor by floor and room by room. On each plan, you will see bedrooms, bathrooms, and the kitchen labeled, as well as doors, windows, and special features such as fireplaces, standalone tubs, and balconies. In many cases, when you work with a new home builder, there are opportunities to make certain changes to the floor plans to suit your family’s lifestyle.

So, how do you choose the best floor plan for your family?

Measure for Measure

When you see a floor plan and the total square footage of the home, you may be dazzled. This is when you have to ask yourself: how much space is right for your family? It’s important that you consider what’s important to your family so that you can see if the floor plan measures up.

Do you need play areas for children? Do you like to entertain family and friends? Will you need two or three bedrooms? How about a home office? Floor plans are smartly designed and can maximize the use of the space, so the best way to prepare to choose one is to spend some time thinking about how you want to live in the home once it’s built.

Follow the Flow 

Imagine yourself walking through the home when you’re looking at a floor plan. Start at the front door and see where the home takes you. Go from the laundry room to put the clothes away. Is it convenient? Many floor plans have responded to this desire by placing the laundry room on the second floor of the home.

Does the flow of the kitchen to the dining area feel right? Can you imagine having friends and family over for dinner? Are there enough bedrooms and bathrooms for your family? When you’re coming in with an armload of groceries, will you have an easy path to the kitchen? Will you park your car in the garage and come in through a mudroom?

All of these lifestyle questions are also floor plan questions. Envisioning yourself and your family is the fun part, and it starts the moment you see a floor plan.

On Your Level

What type of home best suits your lifestyle? Bungalows offer main-level living without any stairs. Two-story homes offer two above-ground levels and a finished or unfinished basement, and townhomes can be two, three, or four levels, depending on the design.

Choosing the right floor plan begins by knowing which home type is best for your family.

Traditional or Open Concept 

Today, many floor plans are drawn with an open concept design. This layout is appealing because there are fewer walls to separate the kitchen, living room, and dining room area. It’s ideal for entertaining and can also make the space feel bigger, with more room to socialize and spread out.

When you look at an open concept floor plan, think about how you will move from room to room. Do you like that there aren’t walls in between? Or would you prefer more separation?

Traditional floor plans will show walls separating the kitchen from the dining and living rooms with symbols representing swing doors, sliding doors, or leave a blank space for a framed pass-through without a door.

Choosing one style over another will help you find the one that’s best for you.

Must-Have Features

Make a list of must-have features so that when you look at floor plans, you can begin to narrow down your choices. Is a spiral staircase what you’ve always dreamed of? In your gourmet kitchen, is there an island with a breakfast bar? Do you want a gas fireplace flanked by built-in bookshelves in your living room? Will you need a home office or do the kids need a study room?

All of these features and more will be outlined on a floor plan and the choice will be easier if you know your must-haves going in.

Find Extra Room

When looking at a floor plan and envisioning yourself living in this home, think of alternative uses for rooms that might seem like extra rooms right now. A formal dining room or living room could seem unnecessary right now, but you consider repurposing those spaces for a playroom, a hobby studio, a games room or a library. A bonus or flex room like a den on the main floor or an extra bedroom upstairs can also be transformed into a guest room, an exercise room, or a home office.

Look for Storage Solutions

No one likes clutter! Sometimes it can be hard to determine from a floor plan where you will find storage. Growing families always need more storage space and some solutions include built-in shelving on the main floor and in closets, a mudroom, and a garage. Consider adding additional storage space, if possible during the design phase.

Ask Away

Don’t be afraid to ask questions about what you see – or don’t see on a floor plan. Most people don’t know how to navigate architectural drawings or floor plans and it is completely acceptable for you to lean on the experts and ask any questions you may have.

Choosing the best floor plan for you and your family involves a lot of decision-making, and it all begins with prioritizing what your needs are as a family. Once you know what you need, you can begin to envision yourself living in the home just by looking at the drawings.

When you look at what determines the price of a home, it is often set by the neighbourhood it’s in, the size and style of the home and the quality of the finishes inside. Those key factors point to the value of a home in the real estate market where it resides, and the price is what people are willing to pay for the home of their dreams.

As 2021 winds down, many experts and analysts have forecast a continuation of rising prices in Canadian real estate, especially in desirable city centres such as Vancouver and Toronto. In November 2021, the average price of a resale home in the Toronto region was $1.16 million, which is up 22 per cent from the previous year. Pricing in the new construction sector usually tracks close to resales, reporting a little less than the average resale numbers.

During the pandemic, the GTA’s robust real estate market continued to hold strong. Ultra-low mortgage rates and demand for larger homes with backyards, balconies and room to create a home office offered people the chance to take a second look at their living space.

With demand outpacing supply in the GTA, prices continue to rise. If interest rates rise next year, buyers have an incentive to get into the market and that creates competition, which nudges up pricing. Lastly, the sourcing of materials and supply chain challenges of this past year will continue into the next year, impacting pricing and the ability to get more homes into the market to quell the demand.

To expand more on three reasons home prices could increase in 2022, we’ve rounded up some expert opinions in the real estate and financial industry.

Demand Outpacing Supply

Canadian home prices are expected to rise by 10.5 per cent in 2022, with Toronto, Vancouver and Halifax projected to see the largest increases.

What’s more is that the forecast follows a record-breaking year in 2021, according to a survey from real estate firm Royal LePage.

Royal LePage also anticipates the median price of a single-family detached home in Canada to climb by 11 per cent to $918,000 in 2022, while condominium prices are projected to grow by eight per cent to $594,000.

In Canada, price predictions show homes will be the most expensive in Greater Vancouver ($1,375,700), Greater Toronto ($1,256,500) and Ottawa ($806,600), while the lowest prices are expected to be found in Winnipeg ($372,100), Regina ($376,300) and Edmonton ($429,000).

The biggest increases are expected in the Toronto and Vancouver areas, with the price of homes rising by 11 and 10.5 per cent. They’re followed closely by Halifax at 10 per cent, which Royal LePage says is driven by out-of-province demand, largely from Ontario.

In a market characterized by low supply, Royal LePage president and CEO Phil Soper says the increases will be driven by eager buyers who were unable to secure homes in 2021, rising immigration, as well as low interest rates and a continued emphasis on remote work as COVID-19 variants stifle Canada’s reopening plans, causing people to save more money as travel and entertainment options diminish.

“Many of those looking to purchase a home, whether their first, an upgrade, or a recreational property, stand able to take advantage of increased savings and record-low interest rates.”

On the new construction side, inventory for single-family homes is low and the tight inventory contributed to another record in the benchmark price for new single-family homes, of $1,656,043 in October 2021, which was up 36.7 per cent over the last 12 months.

“Several factors are contributing to the shortage of new single-family home supply in the GTA, including a lack of serviced land, supply chain issues and labour shortages,” says Justin Sherwood, from the Building Industry and Land Development Association.

“As municipal and regional governments go through their municipal comprehensive reviews and Official Plan processes, they need to ensure they are planning for appropriate housing supply and choice for future residents.”

ROYAL LEPAGE REPORT: https://www.royallepage.ca/en/realestate/news/royal-lepage-canadian-home-prices-soar-as-persistent-supply-shortage-results-in-continued-sellers-market/

Changing Interest Rates

Major banks have already started to raise their fixed mortgage rates, and the Bank of Canada has suggested it will increase the benchmark interest rate earlier than it had previously forecast.

When people see interest rates changing, and in current times, increasing, it becomes a major motivator tracked throughout the resale and new home buying markets. This surge creates competition, which impacts pricing.

A rush to purchase homes ahead of expected increases in Canadian interest rates next year is boosting the housing market in the final quarter, with prices skyrocketing compared to the year-earlier period.

“Affordability is unlikely to improve next year as prices should march higher, even as interest rates creep upwards as well,” says Rishi Sondhi, economist at TD Economics, who expects house price inflation to slow next year.

For many first-time home buyers, prices have climbed beyond their reach and a supply shortage of housing units has only aggravated their woes. Additionally, the price appreciation gap between condominiums and detached properties is narrowing.

“This trend will continue in 2022, as entry-level buyers are priced out of more expensive property segments, and the revival of the downtown core continues,” says Royal LePage chief operating officer Karen Yolevski.

Sourcing Materials and Supply Chain Disruptions

The supply chain shortage that has affected consumer goods over the last half of the year, has also impacted the construction of new homes.

Builders are challenged to source the materials they need to construct homes, as well as the finishes that go inside like appliances, faucets and more.

First-time buyers and those who purchased a fixer-upper or those who are renovating their current home are struggling to get the same lumber, plumbing parts, and finishes too.

“These supply chain issues will absolutely continue into 2022, but may begin to ease as we head into 2023,” says Robert Dietz, chief economist of the National Association of Home Builders in the U.S.

A housing market research firm in the U.S., Zonda, surveyed builders and about 91 per cent of the homebuilding companies reported struggling with the supply chain problems.

It is having the same impact north of the border as well. The lack of material availability is making it take longer to build a home, and the delays and higher input costs are contributing to rising home prices.

“The housing shortage and accompanying high prices are not likely to go away as long as the products that construction companies depend on don’t arrive on time,” says George Ratiu, manager of economic research at Realtor.com®.