Blog > Real Estate & More from Ingrid
I've been reflecting on my market research days and how it correlates to real estate. The value proposition of homes is always in question. Sellers of older homes are being advised to undertake projects, staging, and more to generate interest by offering a better home for sale. These sellers might push back due to the expense and practical feelings that if the home is good enough for them, perhaps it could be good enough for someone else. This becomes more complicated when the home is being sold as an estate, requiring multiple people to align on decisions. Buyers are hampered by higher rates, resulting in less discretionary income and reduced confidence to stretch and purchase a home that may have unforeseen expenses. Consequently, multi-generational living is on the rise so expenses can be shared. What does this mean for sellers today? If you know your neighborhood and the values of homes sold in the past three years, you may need to recalibrate due to increasing interest rates and repair costs.
If you bought a $500,000 home with a typical down payment,
your monthly mortgage payment in 2022 could have been around $1,800–$2,100.
Today, that same home would cost you roughly $2,500–$2,700 per month—
an increase of $400–$800 per month, mostly due to higher interest rates.
Keep in mind: These numbers don’t include property taxes,
insurance, or other costs, and actual rates can vary
based on credit score, lender, and location. If you want a
more tailored estimate or have a specific scenario, let me know!
National Trends Since 2022
Home improvement costs have been steadily rising across North America since 2022 due to several factors: - Labor shortages leading to higher wages. - Elevated material prices for lumber, drywall, and other essentials. - Ongoing supply chain issues causing delays and increased shipping costs.-
-
- A mid-range kitchen remodel that cost $60,000 in 2022 might now cost $70,000–$75,000. -
- A $20,000 bathroom upgrade in 2022 could now be $24,000–$26,000. -
- Decks and additions are often up by 20% or more compared to two years ago. The increase is driven not only by inflation and labor costs but also by a surge in homeowners choosing to renovate rather than move.
- Higher mortgage rates make moving less attractive, adding more pressure on renovation prices.
-
If you're planning a project, expect to pay noticeably more than in 2022. Getting multiple quotes and booking early can help you secure a better deal. I can also share tips on finding reputable local contractors or budgeting for your next project.
Take a look at the situation from the other side. If you're selling, check out competing properties to make sure your home stands out. We don't want to be the home that helps sell others. Sometimes, a deep clean and fresh paint are all you need. Other times, a new appliance or some handyman projects can add value. If you're buying, seek out opportunities and look past small imperfections to see the bigger picture. If big decisions are tough, lean on a good agent, friend, or family member. If you'd like to grab coffee and review your buying or selling goals for the rest of the year, please reach out anytime.