March 11, 2010
Canadian Economic Growth Exceeds Estimates
Did you know the Bank of Canada recently reported that economic growth has picked up by more than previously expected? In the 4th quarter of 2009, the Canadian economy expanded by 5% on an annualized basis, and the core rate of inflation hit 2% year-over-year in December 2009. On March 2nd, the Bank said that, “The main macroeconomic risks to the inflation projection are roughly balanced.” The Bank also restated its commitment to keep its lending rate on hold until the second half of 2010, conditional on the outlook for inflation. At that time, it is generally expected that interest rates will rise, but increases will be small and spread out over time.
March 1, 2010
Latest Better Homes and Gardens Survey of Home Buyers
Did you know that the new Homes and Gardens survey of home buyers revealed increased practicality? Greater energy efficiency has become more important with 87% seeking high efficiency heating/cooling systems and appliances in their next home. Multi-use space is also important, with 59% wanting a home office, but the majority wanting this office to serve multiple uses as an office, computer, hobby and craft room. A well-designed and organized space is important with 66% wanting a “no space wasted’ design and 62% listing ample storage space as very important. Also on the wish list: a separate laundry room (85%); kitchen with eating area (67%) and an extra bedroom with ensuite bath (65%).
February 22, 2010
The Internet is Important in Home Search Process
Did you know that the Internet is a critical information source among buyers looking for a home? The most recent survey by the U.S. National Association of Realtors found that buyers use a variety of resources in searching for a home: 87% use the Internet, 85% use a real estate agent, 62% rely on yard signs, 48% attend open houses and 47% consult print ads. The vast majority starts the search process online, and then works with an agent to narrow the search, select and view properties, and negotiate the transaction. If you want your listing to be seen early and often, by the greatest number of buyers, choose a listing agent with a well-designed, high-ranking web site.
February 17, 2010
Canadian Real Estate Association Revises 2010 Forecast Upwards
Did you know that the Canadian Real Estate Association has revised its forecast for home sales upward this year, citing better economic conditions?
CREA forecasts 527,300 sales this year, up 13.3 per cent from 2009 levels. The previous forecast called for a 7 per cent increase.
The national average home price is forecast to rise 5.4 per cent in 2010 to a record $337,500.
But next year will start to see the impact of higher interest rates, with sales forecast to decline 7.1 per cent in 2011. That would put next year on par with levels reported in 2005 and 2006, according to the realtors’ association.
Year 2011 is when Canada’s realtors are expecting prices to slip 1.5 per cent.
“A downward trend in national sales activity combined with an increase in listings will result in a more balanced market,” said CREA chief economist Gregory Klump.
February 16, 2010
GTA Real Estate Market Shows Huge Increases
Did you know the January GTA real estate market started 2010 at full gallop, with sales up 87% from the year before, according to figures released February 3 by the Toronto Real Estate Board?
“The Greater Toronto Area home market has rebounded well from the lows experienced at the beginning of 2009,” said Tom Lebour, TREB president.
Placed in perspective, this January’s sales were slightly higher than the January average in the years preceding 2009 when the economy faced recession.
The average price of a GTA home this January hit $409,058, up 19 per cent compared with $343,632 in the same month last year.
TREB warned comparisons to last year will continue to be extreme in the first quarter of this year as “we continue to make comparisons to weak market conditions at the beginning of 2009.”
February 15, 2010
Royal LePage Market Forecast for 2010
Canada’s residential real estate market is forecast to remain strong through the first half of 2010 as economic conditions improve and the impact of low interest rates stokes demand, according to Royal LePage’s Market Survey Forecast. As confidence builds in early 2010, increases in average house price levels and overall market activity are expected to continue.
“The Canadian real estate market enters 2010 with considerable momentum from a strong finish to the previous year,” says Phil Soper, Royal LePage CEO. Strong demand, coupled with seasonal undersupply of homes for sale, should cause home prices to appreciate during the early months of the year. Improving supply as the year unfolds should moderate home price increases in the second half of 2010.
January 15, 2010
Canadian Real Estate Association Statistics for December 2009
Did you know that December 2009 was the strongest December in history for sales of existing homes in Canada? The Canadian Real Estate Association (CREA) reported that 27,744 homes traded hands in December, up 72% from a year ago. “Sales activity in 2009 came in like a lamb and went out like a lion,” said CREA president Dale Ripplinger. The national residential price was $337,410 in December, up 19% year over year. On an annual basis, prices are up 5% to a record $320,333. Unit sales are up 7.7%, representing the fourth best year on record. One reason for rising prices in 2009 was the lack of inventory. However, the trend seems to be reversing, with new listings in December up 4.8% from the prior year. Strong prices are driving sellers back into the market, says CREA.
January 11, 2010
Go “Canadiana” in Your Decor in 2010
Did you know that a very hot decorating design trend for 2010 is “Canadiana?” From the Vancouver Olympics to the G20 summit, the world’s eyes will be turned toward Canada this year, so expect to see “cool rusticity” dominate décor. Knotty pine, wood-burning fireplaces and stone mantels have a timeless and now trendy charm. The Bay’s recent collection includes everything from axes to canoe paddles! You may want to stop short of fashioning lamp bases from discarded hockey sticks, but what about candlesticks built from pebbles or a rustic driftwood mirror? (Both found at HomeSense.) If you are renovating, consider tongue and groove wainscotting or wide plank pine floors. And for the crowning glory, why not feature faux antler lumieres which you’ll find among other treasures at http://www.cdnantler.com!
January 7, 2010
Interesting Prospects for 2010 Real Estate
Did you know that many real estate analysts and experts are optimistic about prospects for the 2010 market? Factors include an undersupply in resale inventory relative to demand and continuing low interest rates. Interesting trends include the rise of the “neighbourhood’ with greater emphasis on the entire local area as a buying choice, not just the house itself. During 2010, marketing approaches will be increasingly online and interactive, keeping purchasers on top of current information via dynamic websites, Facebook and Twitter. An emerging design mindset is labelled “lesstravagance” or understated elegance, juxtaposing old, even worn-out pieces with modern, sleek environments.
January 1, 2010
Renovation Tax Credit Expires February 1
Did you know time is running out to qualify for Ottawa’s $1,350 home renovation tax credit, which expires on February 1, 2010? You must spend more than $1,000 and may claim up to $10,000 on qualifying items or work to earn the maximum credit. Qualifying expenditures include repairs, alterations and preventative maintenance for a home you own, including the cost of labour, materials and equipment rentals. Eligible expenses include renovating a kitchen, bath or basement; installing new carpet or hardwood floors; building an addition, garage or deck; re-shingling a roof; installing a new furnace, fireplace, water softener or hot water heater; or painting. Ineligible expenses include furniture, appliances, audio-visual systems, cleaning, maintenance and financing costs. The work can be done by a professional contractor or you can do it yourself. In the case of contract work, you can claim the value of the contract, whereas if you do it yourself, you can only claim materials, not your labour. Remember to keep your receipts!
November 30, 2009
Success Begins with Good Design
Did you know good design decisions underpin every successful renovation? According to Kelly Deck at the Globe & Mail, there are design no-no’s that should be avoided. Corner fireplaces are a problem because they place a natural focal point in an awkward location. This either leads to an off-kilter furniture arrangement or to visitor disorientation. Fireplaces are best located on the long run of a wall where they centre a room and act as an effortless focal point. Unless you live in a colonial mansion, you want to eschew the spiral staircase. It wedges a circular shape into a square space, creating odd angles and disrupting flow. Install French doors only where appropriate. They belong at the entrances to formal rooms, where they facilitate a view through to the lovely décor and enable the host to sweep open the double expanse of doors in a dramatic gesture. The bottom line? Choose features and finishes that complement the fundamental character of your home.
November 27, 2009
MLS 2009 and 2010 Projections Revised Upwards
Did you know that MLS® home sales activity continues to run strong, with new monthly records set in July, September, and October? This prompted The Canadian Real Estate Association to revise its MLS® home sales forecast (as of Nov 16) for 2009 and 2010. CREA now forecasts 2009 national unit sales will be up 6.6% from last year. CREA’s previous forecast had annual sales this year about even with 2008 levels. National MLS® home sales activity is forecast to rise 7% in 2010. This would make 2010 the second highest year on record for sales. The national MLS® average home price is forecast to climb 4.2% in 2009, an upward revision from the 1.5% gain in CREA’s previous forecast. Average prices are forecast to climb a further 4.7% in 2010. “Pent-up demand built in late 2008 and early 2009, as many buyers moved to the sidelines pending an improved economic outlook,” said CREA President Dale Ripplinger. “With the economic outlook having improved since then, the release of that pent-up demand will boost activity over the rest of the year and in 2010.”
November 16, 2009
Buying a Sofa Is an Important Decision
Did you know when buying a sofa it is important to first decide what functionality you want it to provide? Do you want to sit and chat? Curl up and read? Sprawl out and watch movies? Common criteria are comfort, durability, appearance and quality. While price is a factor, it should not be decisive, because a sofa is a long-term investment and it defines your space. If your sofa is primarily for socializing, it should seat either two or four: three people in a row are never going to have an easy conversation. More formal sofas can be deep—as long as they are low enough to perch on demurely at the start of the party and nestle into when the ice has broken. With TV sofas, you need somewhere to put your feet - either enough seat to stretch out on, or a footstool at matching height. For comfort, the deeper the sofa, the better. As for design fundamentals, sofa designer Russel Pinch says, “A solid hardwood frame is absolutely paramount, to provide horizontal rigidity, plus longevity. Also, all seats must have an inward rake on them, or the cushions will tip forward.”
November 2, 2009
Boomers Lead the Entrepreneurial Charge
According to boomerwatch.ca, the baby boomer generation – 55- to 64-year-olds – has the highest rate of entrepreneurial activity. A U.S. study found that baby boomers are seeking new sources of activity and income during their pre-retirement and retirement years. Boomers have the experience, skills, contacts and other resources to pursue entrepreneurial opportunities. Experts are not surprised by the risk-taking nature of baby boomers, whose childhoods in the 1960s and 1970s formed their attitude toward aging. There is a sense of ‘I will not age according to stereotypes,’ and part of that is ‘I’m not going to retire.’ Many baby boomers look at retirement simply as the next phase of opportunity and growth. In real estate terms, this translates into growing demand for home offices and a ‘wired’ in-home infrastructure.
October 19, 2009
Spectacular Colours Bloom in Autumn Gardens
Did you know that your garden can be just as beautiful in the autumn as it is in the summer? A little strategic planting can produce exceptional colours, textures and even aromas. Japanese maples, sumacs and ornamental grasses all provide extraordinary colours along with intriguing textures during the fall. Japanese anemones bloom during the cooler months. Some people swear the unmistakable aroma of cotton candy emanates from the Katsura tree at this time of year. Many people like to decorate outdoors with containers, which in addition to fall mums might include cabbages, kale, grasses and asters. With trees and shrubs on sale at garden centres, autumn is a great time to buy a few new pieces and put them in while the soil is still relatively warm. And, don’t forget to plant your bulbs!
