In an attempt to address the ongoing housing supply and affordability crisis in Canada, the federal government announced earlier this month that the Prohibition on the Purchase of Residential Property by Non-Canadians Act – otherwise known as the foreign buyer ban – will be extended for an additional two years. The Act was previously set to expire on January 1st, 2025, and has been extended to January 1st, 2027.

The Liberals say the ban, which restricts foreign commercial enterprises and individuals who are not Canadian citizens or permanent residents from acquiring residential properties in Canada, is part of a broader strategy to cool the nation’s overheated housing market and make home ownership more attainable for Canadian citizens.

Given that housing affordability has not greatly improved since the Act’s implementation more than a year ago, Royal LePage believes that an extension to the foreign buyer ban will not make a material difference on bettering access to housing for Canadians.

“We do not foresee an extension to the foreign buyer ban resulting in a drastic improvement to housing affordability. Non-Canadian property ownership makes up a small percentage of the overall housing market, therefore a ban on such ownership is not likely to improve access to housing in a material way,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. “Given the imbalance between available inventory and buyer demand, the best way to solve Canada’s housing crisis is to significantly increase supply.”

The ban comes with specific exceptions, notably for individuals holding temporary work permits, refugee claimants, and international students who fulfill certain conditions. Those in violation of the ban could face penalties up to $10,000 and may be compelled to sell the implicated property.

More information is available on the government’s website.

With a new year now underway, Canadians can expect to see a variety of changes coming to federal, provincial and local government housing legislation in 2024.

From updated taxes to revised urban planning regulations, new housing laws and policies will roll out across the country in the coming months. Several of these policies promise to boost much-needed housing supply, which remains at a critical shortage in both the resale and rental segments.

Here are the new federal housing policies that you should know about in 2024:

Short-term Rental Restrictions

In November, 2023, the Government of Canada unveiled its 2023 Fall Economic Statement, which details new tax, spending and inventory-boosting measures. This includes new efforts to incentivise short-term rental operators to return properties to the long-term housing market. Going forward, income tax deductions will be denied in cases where short-term rental owners are not compliant with provincial or municipal licensing, permitting or registration requirements. This applies to all expenses incurred on or after January 1st, 2024.

Pre-approved Home Design Catalogue

To boost construction of new home supply, the federal government intends to revive a post-Second World War housing policy of standardized, pre-approved home designs, making it easier and faster for developers to build new properties. The modern version of the catalogue will focus on creating blueprints for a variety of low-rise housing, and potentially higher-density homes and different forms of building construction, such as modular and prefabricated homes.

Consultations for the home catalogue are expected to start in January, 2024.

If you are curious about this article or the real estate market, please reach out! I'd be happy to answer your questions.

High interest rates have caused many homebuyers and sellers to push pause on their real estate plans over the last six months, significantly curtailing overall activity in housing markets across the country. However, as Canadians continue to adjust to higher borrowing costs, and the first anticipated rate cut by the Bank of Canada nears, a brisk spring market is on the horizon.

“I believe the narrative suggesting that the housing market will rebound only when the Bank of Canada lowers rates misses the mark,” said Phil Soper, president and CEO of Royal LePage. “The recovery will begin when consumers have confidence the home they buy today will not be worth less tomorrow. We see that tipping point occurring in the first quarter, before the highly anticipated easing of the Bank of Canada’s key lending rate.”

According to the Royal LePage House Price Survey released today, the aggregate price of a home in Canada increased 4.3% year over year to $789,500 in the fourth quarter of 2023. On a quarter-over-quarter basis, however, the national aggregate home price decreased slightly by 1.7%, highlighting that elevated borrowing costs continue to affect market activity, as Canadians adapt to the higher interest rate environment.

Royal LePage recently issued its 2024 Market Survey Forecast, projecting that the aggregate price of a home in Canada will increase 5.5% in the fourth quarter of 2024, compared to the same quarter in 2023.

In December, the Bank of Canada once again held its key lending rate steady at 5.0%, and indicated that it has likely concluded its interest rate increase campaign and could begin making modest cuts later this year.

“The Bank of Canada governing council will soon face the difficult task of trying to balance the lowering of interest rates without simultaneously stimulating spending, which would cause inflation to rise again,” said Soper.

In November, the Consumer Price Index (CPI) rose 3.1% per cent on a year-over-year basis, matching the increase in October. If mortgage interest costs are taken out of the CPI calculation, inflation sits at 2.2%, close to the Bank of Canada’s target rate.3

“Similar to what we witnessed last spring, when the Bank of Canada paused rates for the first time in a year causing sales activity and prices to increase almost immediately, the first sign of rate cuts – even if only by 25 basis points – could create a flurry of activity in the real estate market, releasing pent-up demand. Those who have been holding off listing their homes will follow close behind,” added Soper.

With a new year comes a new wave of home design trends. From furniture to colour schemes, the arrival of 2024 is the perfect time to think about updating your home interiors to incorporate current styles. Refreshing your living spaces doesn’t require a major overhaul — swapping out your cabinetry hardware or revamping your linens can make a noticeable difference in any room.

Here are six interior design trends for 2024 you can try in your home:

Bold Colours and Patterns

If you’ve got a love for dramatic interiors, then 2024 is the year for you. This year is all about “go big, or go home,” with punchy colours, patterns and textures taking centre stage. Begone with all neutral interiors and playing it safe — this is the year to experiment with zesty kitchen backsplashes, maximalist accessories and artwork, and over-the-top lighting fixtures.

Handmade and Artisan Goods

Our craving for natural elements in home interiors continues in 2024 as handmade accessories rise in popularity. Bespoke pieces made from wood, clay, wicker and glass will be a sought-after statement piece in interiors this year, as earthy inspiration remains a dominant design theme. If you’re looking to incorporate unique pieces into your living space, seek out ceramics, wood carvings and glass work at local markets and galleries to add to your walls and tables. Bonus points for adding pieces you’ve collected on your travels around the globe!

Shades of Brown and Blue

Earth-like colours will be a standout component of 2024 home interiors.

Several paint companies have named a shade of blue as their 2024 Colour of the Year, such as Benjamin Moore’s Blue Nova, or Sherwin Williams’ Upward. Interior designers are also forecasting that varieties of brown will be a big hit this year as a rich neutral accent colour, over the cooler gray tones we’ve seen in recent years. You can bring browns and blues into your home in 2024 through paint, tile and wallpaper choices, or by incorporating natural elements like wood furnishings, curtains and accessories.

Begone Basic Bouclé

We’re all familiar with creme-coloured bouclé — the nubbly fabric that has dominated everything from living room chairs to sweaters for the past couple of years. With 2024 seeing bolder and brighter patterns, the sheep-like bouclé we know and love is being phased out. Instead, bouclé with fluffier texture and more vibrant colours is coming into style. Don’t feel the need to go full-on, wall-to-wall bouclé to capture this trend. Opt for a rug, cushion cover or accent furniture that can easily be swapped out as interior styles evolve.

Continuation of Curves

Round shapes were a staple in 2023 interiors, and the trend is continuing into this year. Parting from straight, perfect lines, curves embrace the imperfections and organic shapes we find in the natural world. If you’re looking to take a page from the book of biophilic design, bring curves into your interiors with round furniture, such as bar stools, sectional “conversation,” sofas and coffee tables, or curved accessories like mirrors and rugs.

Mixing Metallics

Mixing metals was once considered a fashion faux pas, but not this year. Taking a break from matte black fixtures, 2024 will see the rise of mixed metal finishes and hardware, combining varieties of nickel, bronze, gold and brass. You can experiment with metals beyond just door handles and drawer knobs — introduce a mix of metals with contrasting accent lighting fixtures, faucets, appliance finishes and decor accents.

Your home is a reflection of who you are. Don't be afraid to hop on the latest trend - or to break it. At the end of the day, the style of your home should work for you. So jump in, decorate, and have fun!