Many buyers are out there looking, but seem nervous about making offers. They’re confused by what they’ve been reading and hearing about the state of the real estate market. The fact is, although sales and prices have both declined in different percentages around the country, they have remained relatively steady when compared with prices south of the border.
Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue. According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998, and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009. Many of these new immigrants will soon be in the market as First Time home buyers.
With the Bank of Canada dropping its prime lending rate this month, those in the market for a home will see mortgage rates at near record lows. This combined with the federal government’s decision to increase the withdrawal amount in the Home Buyers Plan from $20,000 to $25,000 will make buying a home a little easier.
Below is a brief summary of sales activities in some areas across the country:
GTA - Ontario
Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year.
On a month-over-month basis, sales and average price were above January levels of 2,670 and $343,632 respectively. The housing market is seasonal. Traditionally, in the first half of every year, sales and average price climb to their highest levels in late spring before trending lower from July onward.
Hamilton - Ontario
The Hamilton-Burlington area real estate market showed a total of 750 unit sales in February, indicating a 27.6% decrease over the same period last year, according to the Multiple Listing Services® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB). New units listed are less than 1% lower when compared to February 2008.
The total unit sales, when compared to January, were 58% higher in February. The average price of freehold residential properties sold in the month of February was $278,614, a decrease of 6% over the same month last year, but an increase of 1.5% over last month. Average price of condominiums in February was $200,618, a decrease of 4.2% over February 2008, and a decrease of 7% over last month.
Ottawa - Ontario
Members of the Ottawa Real Estate Board sold 787 residential properties in February through the Board’s Multiple Listing Service® system compared with 980 in February 2008, a decrease of 19.7%. There were 530 sales in January 2009. The average price of residential properties, including condominiums, sold in February in the Ottawa area was $273,719, a decrease of 2.9% over February 2008.
Edmonton - Alberta
The average price of most types of residential property slipped down a notch in February after a short rally in January. Sales numbers climbed across the 1,000-unit threshold for the first time since October but are still below the same month sales for last year.
There were 1,075 residential sales in February with 2,667 listings added to the MLS®. The sales-to-listing ratio was 40% and there were 7,097 homes in the inventory on February 28th. The average price of a single family home in February was $347,309—down 1.5% as compared to January. Condo prices were down 4.9% to $226,857 and duplex/rowhouses sold on average for $309,180 (a 3.3% price increase).
Calgary - Alberta
Sales activity of single family Calgary metro homes was 825 in the month of February 2009 showing an increase of 50% from 550 sales in January 2009, according to figures released by the Calgary Real Estate Board (CREB®). This was a decrease of 34% from February 2008 when single family home sales were 1,252.
The number of condominium sales for the month of February 2009 was 343, an increase of 52% from the 225 condominium transactions recorded in January 2009 and a decrease of 39% from February 2008 when 562 condominiums changed hands.
The average price of a single family Calgary metro home in February 2009 was $415,568, showing an increase of 0.6% from January 2009, when the average price was $413,049 and showing a decrease of 12% from February 2008 when the average price was $471,696. The average price of a Calgary metro condominium was $268,971, showing a 0.7% decrease from January 2009 when the average price was $270,940 and showing a decrease of about 13% over last year, when the average price was $311,812.
Surrey, British Columbia
February sales on Fraser Valley’s Multiple Listing Service® (MLS®) experienced a typical ‘early spring’ surge, increasing by 75% in one month from 389 sales in January to 682 last month. However, by historical standards, they continued to reflect sales levels last seen in the mid-1980s, according to the Fraser Valley Real Estate Board.
Sales showed a 48% decrease compared to the 1,308 sales processed in February 2008. The Board also received fewer new listings last month compared to the same month last year – 2,369 compared to the 2,808 new listings received in February 2008 – however, the total number of active listings at 9,594 was still 11% higher than in January and almost 30% higher than the 7,415 active listings available in February 2008.
Housing Price Index (HPI), decreased 10.4% compared to February 2008, however, increased from the previous month for the first time in nine months. The benchmark price was $456,683 in February 2009 compared to $509,958 last year. The average price of Fraser Valley townhouses decreased by 10.5% in one year, going from $330,444 in February 2008 to $295,731 in February 2009, while the average price of apartments decreased by 10% going from $253,351 in February of last year to $228,091 in February 2009.
Regina - Saskatchewan
According to the Association Of Regina REALTORS®, there were 219 residential properties sold inside the city during the month, a 6% decrease from the record high set in 2008 of 232 sales but tying with 2007 as the second highest number in the past ten-year period. For the entire MLS® including all geographic areas, 232 sales were reported, down 21% from 2008’s record high of 294.
For the year-to-date 378 homes have sold in the city, down 17% from 456 recorded in 2008.
The average price of residential properties sold in February inside the city was $231,880—a new monthly high—up 5% from the previous one set last year of $221,814. The average price for the year-to-date was $223,971, another high and up 5% over 2008’s $213,257. There were 521 new listings received during the month, an increase of 39% from 2008’s 375.
Information in this report is collected from the Real Estate Boards operating in each area.
Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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First-Time Home Buyers’ Tax Credit
Proposed in Federal Budget 2009
Action to Stimulate Housing Construction
The Government is providing $7.8 billion to build quality housing, stimulate construction, encourage home ownership and enhance energy efficiency. Measures include a Home Renovation Tax Credit providing up to $1,350 in tax relief to an estimated 4.6 million Canadian families, up to $750 in tax relief for first-time home buyers, funding for energy retrofits, investments for social housing to support low-income Canadians, seniors, persons with disabilities and Aboriginal Canadians, and low-cost loans to municipalities.
Budget 2009 proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.
An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years. A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence not later than one year after its acquisition.
Budget 2009 also proposes that the credit be available for certain acquisitions of a home by or for the benefit of an individual who is eligible for the disability tax credit (DTC). In particular, the credit will be available in respect of a home acquired after January 27, 2009 (i.e. the closing is after that date) by an individual who is eligible for the DTC, or by an individual for the benefit of a related individual who is DTC-eligible, if the home is acquired to enable the DTC-eligible individual to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
For the purpose of this credit, a "DTC–eligible" individual is an individual in respect of whom an amount is deductible under the DTC for the taxation year in which the agreement to acquire the home is entered into, or would be deductible if costs for an attendant or care in a nursing home were not claimed for Medical Expense Tax Credit purposes by or on behalf of that person. Where the home is acquired by or for the benefit of a DTC-eligible individual, the home must be intended to be the principal place of residence of that individual no later than one year after its acquisition.
The credit may be claimed by the individual who acquires the home or by that individual’s spouse or common-law partner. For the purpose of this credit, a home is considered to be acquired by an individual only if the individual’s interest in the home is registered in accordance with the applicable land registration system.
Any unused portion of an individual’s First-Time Home Buyers’ Tax Credit may be claimed by the individual’s spouse or common-law partner. Where more than one individual is entitled to the First-Time Home Buyers’ Tax Credit (for example, where two individuals jointly buy a home), the total amount of the credits claimable for the year by those individuals shall not exceed the maximum amount of the credit that would be claimable for the year by any one of those individuals.
For more information, visit http://www.budget.gc.ca/2009/plan/bptoc-eng.asp or if you wish, contact me. Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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Can You Benefit From a New On-Demand Tankless Water Heater?
Hot water usage in Canadian households consumes between 15 and 30% of a home’s energy demand. Surprisingly, the technology used to heat water is traditional and highly inefficient when compared to the tankless or on-demand technologies now used regularly in Europe and Asia. Traditional water heaters used by most Canadian homeowners store heated water in a hot water storage tank. As hot water is used up from the storage tank, it gets replaced by incoming cold water, lowering the temperature of the stored water. An electric heating element or gas burner is activated by a thermostat to slowly reheat the water in the storage tank to a specified temperature. The storage tank stores the hot water ready for use and automatically keeps the water hot as the water gets used, or as it cools down through natural heat loss.
On contrast, an on-demand tankless unit has a heating device that is activated by the flow of water. When a hot water faucet is turned on and the water begins to flow, a sensor detects the flow and the heating elements turn on instantly to delivers a constant supply of hot water. The tankless water heater will remain on until the hot water faucet is turned off. As soon as the flow sensor detects that water has stopped flowing, the power to the unit is turned off completely.
There are numerous advantages to using a tankless water heating system, including the following key highlights:
Reduces water heating costs as much as 50%! Tankless water heaters heat entirely on demand, so when hot water is not being demanded, absolutely no energy is being consumed and the stand-by heating loss is completely eliminated.
Unlimited hot water. Tankless heaters never run out of hot water. They can literally run all day long if necessary and they will never stop producing hot water since they heat water instantly on demand—no more cold showers!
Reduces the risk of scalding. Sophisticated tankless heaters allow you to set the ongoing water temperature to a much more reasonable and safer temperature, closer to the actual temperature you will use the water at, thereby reducing the risk of scalding.
More reliable. Since hot water is not stored, tankless water heaters generally handle hard water minerals and sediments much better than conventional tanks. This makes them far less likely to develop corrosive leaks causing expensive water damage in your home. If properly maintained, an on-demand water heater will keep its efficiency throughout the entire lifetime of the unit—up to 20 years with normal maintenance!
Saves space. Tankless water heaters are about the size of a briefcase (electric units). They save valuable floor space that can be used for storage, etc., especially in condos and apartments. The only requirement is that the heater must be installed at least 3 ft. away from a door, window, or vent.
Other points to consider when selecting a tankless water heater
You should keep in mind that a tankless water heating system will cost more to install than a traditional hot water tank—initially. However, the significant energy savings, fewer repair calls, and the ultimate convenience of having unlimited hot water at your fingertips more than makes up for this cost over the long run.
Determining the correct sizing for an on-demand water heater is crucial and to do so correctly, the peak hot water demand the unit will need to accommodate must be established. On-demand water heaters are rated according to the number of gallons of water per minute that can be raised to the desired temperature.
Also, the volume of hot water that an on-demand heater can deliver is directly correlated to its gas or electricity input. Therefore, if there are several appliances already running on natural gas or electricity, your house supply source my need to be upgraded to handle the increased demand on power. This could affect the cost and set up time of your new tankless water heater.
Comparing the old technology with the new, one thing is clear: a tankless water heater will be cheaper over the long run than a conventional water heater. If a homeowner has a choice between the two, gas or electric, in most cases the tankless gas water heater will be cheaper in the long run than an electric.
Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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Warm Up to Energy Savings!:
Interested in making your home an energy saver, and getting paid to do it? The Canadian government has a program you'll want to hear about.
Last year, the Canadian government launched the ecoENERGY Retrofit program. It provides tax-free cash incentives to Canadian homeowners who commit to making their home more eco-friendly and energy efficient. The money is granted at a flat rate determined by the government for each individual upgrade you perform on your house.
The grant money is only the first part of your windfall though. The average homeowner with a $2000.00/year heating bill can expect to reduce that annual bill by up to $700.00 as a result of the energy savings alone!
The process is very simple. There is a network of licensed energy advisors across the country; call to set up n assessment. Following the assessment, your advisor will instruct you on how to go about making the necessary improvements and will give you an idea of what size grant you are eligible for. The advisor will be your liaison with the government and will complete the application process for you.
5 Steps to Prepare for your Energy Advisor Assessment
Make your energy evaluation safe, quick and easy by following these five steps:
1. Ensure the advisor has access to your attic, crawl space or other hard-to-reach areas.
2. Ensure a responsible person able to make household decisions is present.
3. Make sure you have proof of any recent upgrades to the house to help the advisor understand the homes history.
4. Prepare a list of any drafts, cold spots, or energy related "leaks" in the home.
5. Be as cooperative as possible...Together, you and the advisor can create a retrofit strategy that may save you thousands of dollars.
Of course, if you're more interested in relocating than renovating, please call me for the latest real estate news in your area.
Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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Role Model
You may not have a builders budget, but that doesn't mean you can't apply the same strategies used in model homes to sell your own property. Read on to learn how.
ZAP CLUTTER. If you've ever toured a model home, you likely remember nothing was out of place or looked like it didn't belong. This is because builders want buyers to focus on the home itself, not what's inside. You should adopt a similar zero-tolerance policy on clutter. Consider asking a friend to help you spot your home's problem areas.
NEUTRALIZE. A model homes decor never offends; its colors are muted and patterns subdued to appeal to the greatest number of buyers. You should likewise strive for universal appeal: repaint bold walls with soft, light tones; strip loud wallpaper. If you have a room with a theme - be it Elvis or equine - get rid of it.
DEPERSONALIZE. You never see family photos, trophies, or other personal items in model homes, do you? "Of course not," you're probably thinking. "No one lives there." But what model-home stagers know - and what you should remember when preparing your home for viewing - is that buyers want to see their lives, not yours, when viewing your property.
LIGHTEN UP. Model-home stagers pay a lot of attention to lighting design, which is important as it serves to highlight a home's architecture and make ir appear larger. So keep your window coverings open to maximize natural light. Make sure all your fixtures are turned on and consider switching your bulbs for some with greater wattage.
Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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A Matter Of Principle
If you think a well-designed room just happens, think again. As professional interiors designers well know, any successful decor is dependent on the five principles of design: balance, focal points, proportion and scale, rhythm, and unity. Below is an introduction to each.
BALANCE
Balance refers to the distribution of visual weight in a room. There are three different types of balance: symmetrical, asymmetrical and radial. Symmetrical balance involves repeating the same objects on either side of an axis, a hallmark of formal interiors. Asymmetrical balance is characterized by a lack of focal point or mirroring, and lends rooms a more casual feel. Radial balance refers to arrangements where elements radiate around a focal point.
FOCAL POINTS
Every well-designed room features a focal point, a point of emphasis that draws the eye and gives it a place to rest. That point of emphasis could be a work of art, a piece of furniture, or an architectural detail such as a fireplace or window. Whatever it is, your focal point should be immediately apparent upon entering the room. Depending on its size, a well designed room can incorporate more than one focal point; in fact, large spaces may need multiple points of emphasis.
PROPORTION AND SCALE
This is to the shape and size of objects. Proportion has to do with how the elements in a room relate to the room as a whole, while scale refers to how the elements in a room relate to one another in terms of size. For instance, small delicate pieces of furniture in a large room would make for an ill-proportioned interior, while a heavy lamp on a small end table would be out of scale. Ideally, all the elements in a room should be proportionate to each other as well to the room itself.
RHYTHM
Rhythm refers to how the eye moves about the room. There are four ways to use rhythm in decor: repetition, progression, transition and contrast. Repetition involves repeating the same element - be it a pattern, color or line - throughout the space. Progression means increasing or decreasing one or more of an element's qualities, like its color or size. Contrast results from combining opposing elements, such as black pillows on a white couch. Transition is less obvious, and serves naturally to lead the eye from one area to another, such as through an arched entry.
UNITY
An interior has unity when all of the elements and principles of interior design combine to create a pleasing area and lend spaces a sense of order. In addition to establishing unity within each room of your home, your home should be well designed as a whole, its rooms, halls and stairways all part of one larger space. However, too much unity is bland, while too little is disorienting. Striking just the right balance is tricky, which is why so many call in a professional.
Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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The FAST TRACK
First, be sure of your credit worthiness: request a copy of your credit report. It will likely be blemish-free, but never discount the possibility that it could conatin errors: closed charge accounts may show up as available credit, repaid loans could appear outstanding, or you may discover you've been a victim of identity theft. Address any mistakes now so they don't slow or altogether stop your application process later.
Next, gather documents to support the claims you'll be making on your application. Include things like listing and purchase agreements, home appraisals, credit reports, pay stubs, income-tax returns, letters from employers, bank statements, list of assets and liabilities, and proof of income from sources like rental properties, pensions, alimony, or child support. The more information you provide, the faster the lender can make a decision.
When filling out your loan application, do so honestly and accurately. Make sure all information is correct and legible and no questions have been missed.
Once you've filed your application, make sure you can be easily reached should your lender require any further information or paperwork from you - and be able to respond quickly to such needs. Now is probably not the time to go on vacation.
Lastly, check in - occasionally - with your lender to see how your approval is coming along. This will also lessen its chances of getting lost in the shuffle.
While many homebuyers wait until they find the perfect property before applying for a mortgage, you may want to consider having a pre-approved mortgage in hand before even starting your new home search. This gives you the best idea of what you can afford, and also gives you the edge when negotiating with a seller who is looking for a swift closing.
Steven Burrows
905-901-4714
Coldwell Banker Home & Family Realty
Sales Representative
steve@sburrows.ca
www.sburrows.ca
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