Saturday, December 8, 2012
Saturday, November 24, 2012
Wednesday, November 21, 2012
Thursday, November 15, 2012
Friday, November 2, 2012
Canada is not going to see a U.S.-style housing market meltdown: CIBC
It's good to see the banks are seeing what I've been seeing. The market has been too strong in my opinion for there to be a bubble.
Canada is not going to see a U.S.-style housing market meltdown: CIBC
Canada is not going to see a U.S.-style housing market meltdown: CIBC
Friday, October 26, 2012
Wednesday, September 26, 2012
Wednesday, September 19, 2012
September 2012 Newsletter
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Houseplants are not only visually appealing but they improve our home's air quality by adding oxygen and removing toxins. Here are some plant care tips for those of us who can barely keep an artificial plant alive.
If you're constantly procrastinating over household projects, you should check out some of the available home improvement apps for some inspiration! Here are a couple of our faves:
Thursday, August 9, 2012
Wednesday, August 8, 2012
The other Canadian real estate boom
Sports stadiums and arenas are popping up across the country
Here at Maclean's, we appreciate the written word. And we appreciate you, the reader. We are always looking for ways to create a better user experience for you and wanted to try out a new functionality that provides you with a reading experience in which the words and fonts take centre stage. We believe you'll appreciate the clean, white layout as you read our feature articles. But we don't want to force it on you and it's completely optional. Click "View in Clean Reading Mode" on any article if you want to try it out. Once there, you can click "Go back to regular view" at the top or bottom of the article to return to the regular layout.
There is another boom in Canadian real estate and it’s not in houses or condos; it’s in professional sports facilities. Several football stadiums and hockey arenas are set to sprout up across the country, and like the residential housing boom, they are largely being built on borrowed money.
The city of Regina unanimously approved a deal for a 33,000-seat stadium for the Saskatchewan Roughriders on July 23. The estimated $278-million cost has the team paying $25 million, while the bulk is split between the city and province (to be repaid in property taxes and higher fees attached to ticket prices). Other new CFL stadiums, meanwhile, are in the works for Ottawa, Hamilton and Winnipeg, and all will be funded by provincial and city governments.
Also on the horizon are some ambitious arena projects. Edmonton is pushing for a new home for the Oilers. Quebec City hopes to bring back the Nordiques with a $400-million arena, with the cost shared between the city and province.
The boom is primarily the result of years of neglect: many of the facilities being replaced are old and falling apart. Renovations are no longer enough to keep Winnipeg’s stadium, which was built in 1953, workable. In Ottawa, Lansdowne Park is set for a much-needed overhaul; in 2007, cracks were found in the concrete columns and horizontal beams of the park’s Frank Clair Stadium, former home of the CFL’s Renegades. It is being rebuilt. “We coasted on our infrastructural capital, when it comes to sports, for a long time,” says Glen Hodgson, chief economist for the Conference Board of Canada.
Studies, however, suggest that the long-term economic results of these investments won’t be pretty. One recent report by the Conference Board found that building sports complexes does little to stimulate growth. It might boost civic pride, but can also strain already-burdened government budgets. “Those who think there’s an economic return from investing in sports facilities are probably kidding themselves,” Hodgson says. Still, anyone who has watched a CFL game in Regina in November will no doubt be happy with the new digs.
June Building Permits Fall in Canada
Canada June building permits fall, housing climbs
* Housing permits advance 4.2 pct
* Non-residential permits fall 12.3 pct
OTTAWA, Aug 7 (Reuters) - The value of building permits issued in Canada fell 2.5 percent in June from a five-year high in May as a sharp decline in non-residential construction plans outweighed a gain in housing, seasonally adjusted data by Statistics Canada showed on Tuesday.
Analysts in a Reuters poll had forecast, on average, a 3.6 percent drop in building permits amid signs the country's heated housing market is cooling. The decrease only partially eroded the 7.1 percent jump in May, and the C$6.8 billion ($6.8 billion) value of permits in June was the highest since December 2011.
Housing permits rose for the second straight month after four consecutive declines, advancing 4.2 percent following a revised 9.6 percent jump in May.
Permits for single-family units and for multiple-family units both rose in value by 4.2 percent. The central province of Ontario led the gains in both categories.
Non-residential permits fell 12.3 percent following a 3.6 percent increase in May, mainly because of weaker construction plans for government buildings in the Western province of British Columbia and for medical facilities in Alberta.
Those two westernmost provinces saw a drop-off in plans for both housing and non-housing construction projects, Statscan said.
Although Canadian home prices hit a third straight record high in June, extending a steady climb that had triggered fears of a property bubble, a slowdown in the pace of price increases suggested the red-hot housing market is cooling.
Tuesday, August 7, 2012
This or that?
This or that?
Don’t follow, lead.
Don’t copy, create.
Don’t start, finish.
or even,
Don't sit still, move.
Don't fit in, stand out.
Don't sit quietly, speak up.
Not all the time, sure, but more often.
via Seth Godin
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Friday, July 27, 2012
Thursday, July 26, 2012
Tuesday, July 24, 2012
Great News for Cambridge Area
CAMBRIDGE – Toyota is expanding production of the Lexus RX sport utility vehicle in Cambridge, a move that will result in about 400 new jobs.
Toyota Motor Manufacturing Canada will increase Lexus production by 30,000 vehicles, to 104,000 a year, starting in early 2014, the company announced Tuesday.
“For almost nine years now, Canada has had the only Lexus production outside of Japan,” company chair Ray Tanguay said in a news release. “New jobs, along with new technology, is great news for Canada.”
The new jobs will bring the company’s employment in Cambridge and Woodstock to 7,300, and increase it annual production of vehicles to 500,000 units.
Toyota also makes the Corolla and Matrix in Cambridge, and the RAV4 in Woodstock.
Half of the additional Lexus vehicles Toyota will produce in Cambridge will be the RX450h, the hybrid electric version of the vehicle.
“This is a big and ambitious project with new technology, exacting standards and tight timelines,” said Toyota Motor Manufacturing Canada president Brian Krinock. “Our team members have demonstrated time and time again that they thrive on these kinds of challenges.”
Risk, fear and worry
They're not the same.
Risk is all around us. When we encounter potential points of failure, we're face to face with risk. And nothing courts risk more than art, the desire to do something for the first time--to make a difference.
Fear is a natural reaction to risk. While risk is real and external, fear exists only in our imagination. Fear is the workout we give ourselves imagining what will happen if things don't work out.
And worry? Worry is the hard work of actively (and mentally) working against the fear. Worry is our effort to imagine every possible way to avoid the outcome that is causing us fear, and failing that, to survive the thing that we fear if it comes to fruition.
If you've persuaded yourself that risk is sufficient cause for fear, and that fear is sufficient cause for worry, you're in for some long nights and soon you'll abandon your art out of exhaustion. On the other hand, you can choose to see the three as completely separate phenomena, and realize that it's possible to have risk (a good thing) without delibilitating fear or its best friend, obsessive worry.
Separate first, eliminate false causation, then go ahead and do your best work.
via Seth Godin
Wednesday, July 18, 2012
Mortgage Rates avaialable through Re/Max Real Estate Centre
RATES: Current as of July 17th, 2012
5 YEAR: 3.09%
4 YEAR: 2.99%
3 YEAR: 2.69%
10 YEAR: 3.89%
VARIABLE RATE: 2.85%
SECURED LINE OF CREDIT: prime + 0.50%
Wednesday, July 11, 2012
Re/Max helping our communities again
Yard Sale for the Cure Raises Over $150,000 in Donations
Thanks to the incredible efforts of our many agents, brokers, managers, support staff and volunteers; the total funds raised in Ontario and Atlantic Canada for the 2012 Yard Sale for the Cure have far exceeded expectations. With the 44 offices that participated, our grand total has increased by more than 40 per cent over last year. Since 2006 RE/MAX has raised close to $850,000 through Yard Sale for the Cure alone.
Through the combination of hard work, determination and incredible enthusiasm; RE/MAX has made this 7th year a tremendously successful event. Some offices doubled their fundraising totals from last year!
There was certainly no shortage of creativity all around the region this year just a few shared mentions, congratulations to Leslie Bullock, RE/MAX Garden City who incorporated a bra decorating contest this year. Congratulations to Natalie Gagnon, Communications Coordinator RE/MAX Promotions for her decorating skills which won the full support award. If you haven’t had the pleasure yet, take a look at the masterpieces displayed in the photo gallery below. Also congratulations to RE/MAX Centre City, Cambridge for pulling off Flash Mob. Their video can be found in the video gallery below.
By reaching out to your communities and gathering support, donations, and valuable volunteers; many of you have made yard sale a community tradition that many look forward to.
Congratulations to all who participated and thank you again for your incredible support!
CONGRATULATIONS TO OUR TOP 10 OFFICES: WOW!
| RE/MAX Garden City Realty Inc., Brokerage | Burlington | $30,000.00 |
| RE/MAX Garden City Realty Inc., Brokerage | St. Catharine’s | $22,355.00 |
| RE/MAX Erie Shores Realty Inc., Brokerage | Simcoe | $13,000.00 |
| RE/MAX Premier Inc., Brokerage | Vaughan | $8,508.42 |
| RE/MAX Georgian Bay Realty Ltd., Brokerage | Midland | $8,437.00 |
| RE/MAX North Country Realty Inc., Brokerage | Huntsville | $7,000.00 |
| RE/MAX Rouge River Realty Ltd., Brokerage | Ajax | $7,000.00 |
| RE/MAX Sold Gold Realty (II) Ltd., Brokerage | Waterloo | $6,700.00 |
| RE/MAX of Wasaga Beach Inc., Brokerage | Wasaga Beach | $5,200.00 |
| RE/MAX Real Estate Centre Inc., Brokerage | Orangeville | $3,736.22 |
WHO PARTICIPATED
| Ontario Offices | City |
| RE/MAX a-b Realty Ltd., Brokerage | Woodstock |
| RE/MAX Action Inc. | Richmond Hill |
| RE/MAX Alliance Ltd., Brokerage | Merrickville |
| RE/MAX Country Classics Ltd., Brokerage | Barry's Bay |
| RE/MAX Country Classics Ltd., Brokerage | Bancroft |
| RE/MAX Erie Shores Realty Inc., Brokerage | Simcoe |
| RE/MAX Finest Realty Inc., Brokerage | Napanee |
| RE/MAX Garden City Realty Inc., Brokerage | St. Catharines |
| RE/MAX Garden City Realty Inc., Brokerage | Burlington |
| RE/MAX Georgian Bay Realty Ltd., Brokerage | Midland |
| RE/MAX Hallmark Realty Ltd., Brokerage | Richmond Hill |
| RE/MAX Hallmark Realty Ltd., Brokerage | Toronto |
| RE/MAX Hallmark Realty Ltd., Brokerage | Toronto |
| RE/MAX Hallmark Realty Ltd., Brokerage | Toronto |
| RE/MAX Hallmark Realty Ltd., Brokerage | Toronto |
| RE/MAX Hallmark Realty Ltd., Brokerage | Port Carling |
| RE/MAX Blue Springs Realty (Halton) Inc., Brokerage | Rockwood |
| RE/MAX Hallmark Realty Ltd., Brokerage | Toronto |
| RE/MAX Hallmark Realty Ltd., Brokerage | Toronto |
| RE/MAX Midwestern Realty Inc., Brokerage | Listowel |
| RE/MAX North Country Realty Inc., Brokerage | Huntsville |
| RE/MAX of Wasaga Beach Inc., Brokerage | Wasaga Beach |
| RE/MAX Orillia Ralty (1996) Ltd., Brokerage | Orillia |
| RE/MAX Pembroke Reatly Inc., Brokerage | Petawawa |
| RE/MAX Premier Inc., Brokerage | Vaughan |
| RE/MAX Real Estate Centre Inc., Brokerage | Orangeville |
| RE/MAX Real Estate Centre Inc., Brokerage | Cambridge |
| RE/MAX Riverview Realty Ltd., Brokerage | Gananoque |
| RE/MAX Riviera 2000 Realty Inc. | Rockland |
| RE/MAX Rouge River Realty Ltd., Brokerage | Ajax |
| RE/MAX Sold Gold Realty (II) Ltd., Brokerage | Waterloo |
| RE/MAX West Realty Inc., Brokerage | Toronto |
| RE/MAX Real Estate Centre Inc., Brokerage | Kitchener |
| RE/MAX West Realty Inc., Brokerage | Bolton |
| RE/MAX Vision Realty Inc., Brokerage | Scarborough |
| RE/MAX Real Estate Centre Inc., Brokerage | Georgetown |
Wednesday, July 4, 2012
Sunday, July 1, 2012
Friday, June 29, 2012
How do new government rules affect $ 200,000 mortgage?
Changes related to high ratio insured mortgage lending rules that will take effect July 9th, 2012. These changes will help address Canadian household debt levels. Only a 25 year amortization is allowed, however a 30 year amortization is still available for conventional mortgages.
Calculated with 3.39%, 5 year fixed rate the difference in monthly payments with 30 year amortization is $ 883.21 and 25 year amortization is $ 986.94.
$ 103.73 more every month.( This is calculated without CMHC fee)
The cumulative interest paid over 25 years is $96,082. And over 30 years is
$ 117,955.60. Clients will save $ 21,873.60 in interest!
with thanks to...
Sari McPhail
Mobile Mortgage Specialist
TD Canada Trust
P: 519-654-0783
Thursday, June 28, 2012
Wednesday, June 27, 2012
Grilling Safety
Now that the summer season is kicking off, it's time to get back in the grilling groove. According to the National Fire Protection Association, gas and charcoal grills cause more than 8,000 house fires each year. Before firing up the grill, homeowners should consider these safety tips:
- Grills should be located no closer than 10' (3m) from any structure. Never use a grill under a porch, deck, overhang, carport, or in a garage. Make sure the grill rests on a stable surface and can't be tipped over.
- Never use a propane or charcoal grill indoors.
- Check hoses and connections on gas grills periodically throughout the grilling season. Replace any cracked or brittle hoses before using the grill. Propane cylinders should never be stored inside a garage or other structure at any time.
- Start charcoal fires using a chimney starter instead of charcoal fluid. Not only is a chimney starter safer, but your meal will taste better. If charcoal fluid is used, never add it to the coals once the fire has been lit.
- Once the grill is lit, never leave it unattended. It can take just a few seconds for a serious fire to erupt.
- While lighting and cooking on the grill, do not wear clothes that are loose-fitting or that have wide sleeves that could catch fire. Use long-handled utensils to handle food while cooking. Wear close-toed shoes while at the grill - you can always change to flip flops later.
- Control flare ups by lowering the heat on a gas grill. On charcoal grills, remove the food from the grill and distribute the coals more evenly. If necessary, a flare up can be put out with water from a spray bottle, but remove food from the grill first to avoid smoke contamination.
- To help prevent grease fires, remove any accumulated grease and residue from inside the lid of the grill at least every 5-6 uses. Baking soda can be used to extinguish a grease fire still contained within the grill unit.
Always keep young children and pets away from the grill during and after cooking. The grill's exterior can remain hot long for a long time.
via Pillar and Post
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Tuesday, June 26, 2012
Quick shortcuts (in search of)
There aren't many actual shortcuts.
There are merely direct paths...
Most people don't take them, because they frighten us--too direct, I guess. It's easy to avoid the things that frighten us if we wander around for a while. Stalling takes many forms, and one of them looks like a shortcut.
Things that look like shortcuts are actually detours (disguised as less work).
via Seth Godin
Thursday, June 21, 2012
Government changes mortgage rules
Flaherty to Tighten Canada Mortgage Rules to Avert Bubble
By Theophilos Argitis and Greg Quinn - Jun 21, 2012 7:02 AM ET
Canadian Finance Minister Jim Flaherty will tighten mortgage terms for the third time as the Group of Seven country with the soundest government finances tries to avert a household debt crisis, a government official said.
Flaherty will shorten the maximum amortization period on mortgages the government insures to 25 years from 30 years, and lower the maximum amount homeowners can borrow against the value of their homes to 80 percent from 85 percent, the person said, speaking on condition they not be identified because the decision hasn’t been made public. Flaherty will announce the changes at a press conference in Ottawa today at 8:15 a.m.
Canadian Finance Minister Jim Flaherty has already reduced the amortization limits twice since 2008, cutting them from 40 years amid concern historically low borrowing costs are fueling a housing bubble and pushing household debt to record highs.
Canadian Finance Minister Jim Flaherty has already reduced the amortization limits twice since 2008, cutting them from 40 years amid concern historically low borrowing costs are fueling a housing bubble and pushing household debt to record highs. Photographer: Nelson Ching/Bloomberg
Flaherty has already reduced the amortization limits twice since 2008, cutting them from 40 years amid concern historically low borrowing costs are fueling a housing bubble and pushing household debt to record highs. The shorter-term mortgages increase monthly payments for home owners, prompting them to take on smaller home loans.
The move extends a reversal for the Conservative government of Prime Minister Stephen Harper, which came to power in 2006 and initially lengthened mortgage terms to make it easier for Canadians to buy homes.
Homeowners have taken advantage of the longer-term mortgages to lower their monthly payments. The share of new mortgages with amortizations of more than 25 years was 41 percent last year, compared with 8 percent between 2000 and 2005, according to a survey by the Toronto-based Canadian Association of Accredited Mortgage Professionals.
The mortgage changes were first reported yesterday by the Canadian Broadcasting Corp. in a report that was confirmed by the government official. Flaherty will also cap mortgage payments as a percentage of personal income at 39 percent, the Globe and Mail reported today.
Line of Defense
Bank of Canada Governor Mark Carney, who has warned that monetary policy should be used to address rising levels of household debt only as a “last line of defense,” had been involved in the discussions on the matter and encouraged Flaherty to tighten regulations, the person said. The central bank has kept its benchmark rate unchanged at 1 percent since September 2010. Jeremy Harrison, a spokesman for the Bank of Canada, declined to comment on Carney’s role in the process.
Swaps trading suggests investors are placing bets that Carney may cut borrowing costs even further, with the odds of at least one rate cut by December at more than 25 percent, according to Bloomberg News calculations based on overnight index swap data.
Biggest Risk
Carney has said a surge in household debt has become the economy’s biggest domestic risk, with levels relative to income surpassing those in the U.S. and the U.K. Like other countries such as Australia that largely escaped the global financial crisis, Canadian banks continued to expand lending at a time when record low borrowing costs fueled demand.
The risk to Canada’s economy is that a growing number of Canadians taking on too much debt at low interest rates today may not be able to afford their payments when borrowing costs rise, Carney has said.
In a speech in Vancouver last year, Carney said the increase in debt over the past decade has been driven by households with the highest debt levels and the proportion of Canadian homes that would be vulnerable to an adverse economic shock is at the highest level in nine years.
Flaherty has also acted recently to reduce taxpayer exposure to the market. In April, he introduced legislation that prevents lenders from using government-insured mortgages as collateral for covered bonds.
Mortgage Cap
Flaherty has also refused to raise the C$600 billion ($587 billion) legal limit on mortgage insurance of the Canada Mortgage Housing Corp., and the federal housing agency has begun rationing bulk insurance for financial institutions. Canadians who make a down payment of less than 20 percent of the home’s value are required to insure their mortgages.
Some banks have already sought to cut the exposure to long- term mortgages. Bank of Montreal Chief Executive Officer William Downe said in March the trend toward smaller down payments and longer term mortgages coupled with low interest rates on mortgages had put more borrowers at risk.
Wednesday, June 20, 2012
10 Things NOT To Do When Your Home Is For Sale And You Are Going On Vacation!
10 Things NOT To Do When Your Home Is For Sale And You're Going On Vacation!
You're home is on the market, ready for sale. Spiffed up and ready for the sellers at all times. Unfortunately our market isn't the world's fastest, so putting a sign in the yard and launching a full marketing blitz didn't sell it by Day 3. You're coming up on your family's annual vacation and you're not postponing until after the sale. We don't blame you, everyone needs some R&R time and we don't know if the buyer will show up tomorrow or next month, so go, have fun, relax. But DON'T: 1) Say "No showings until we return". Like we said, your buyer might be showing up tomorrow, and if they can't get in they'll buy another home. And who knows how long until Right Buyer #2 may appear. 2) Drop off the grid. Don't go to the Himalayas or somewhere that Kinko's or equivalent doesn't exist. We need to be able to reach you if we get an offer. We don't expect you to answer your phone at all times, but don't go somewhere that your cell phone is in constant "Searching for Service" mode. 3) Set your thermostat to the extremes. Yes, you might save a little money, but you don't want buyers to be uncomfortable when looking at your home. 4) Forget to get your mail held while you're gone. And if you still get the newspaper, either stop delivery or ask a neighbor to collect for you. 5) Order anything from Amazon or the like to be delivered while you're gone unless you've made arrangements with the neighbors. Packages setting on the front steps for days are a signal you're not home. 6) Post about it on Facebook, or Tweet, or Blog, or LinkedIn or ANYTHING that announces to the world that you're going to be gone. Bad guys have access to social media too. 7) Forget that your flowers need watered and your lawn mowed. Hire someone if you need to, but don't let the hard work you've done on curb appeal go downhill while you've got your toes in the sand and a Corona on the table next to the chair. 8) Forget to tell your agent you're leaving town!! We'll probably need to alter the showing instructions so you don't have to approve the showings while you're gone. 9) Forget to take out ALL the trash before you leave. Get the kitchen, the bathrooms, ALL of them. You do not want the first impression of the buyers to be "EWWWWW" because you forgot about the leftover salmon you tossed before leaving. That also means take care of the dirty dishes and dirty laundry before you go. AND don't forget kitty's super atomic deposits in the litter box and Rover's landmines in the back yard. 10) Forget to ask a friend to check the locks after showings. Hate to say this, but sometimes agents aren't as careful as they should be about making sure a home is secure before they leave. Going by and checking post showing is something we've regularly done for clients out of town. Wish it wasn't necessary, but it's good to be cautious.
Please feel free to add your own suggestions to our list. Be careful, be available, and leave your home ready for the buyers to fall in love with it!
Please feel free to add your own suggestions to our list. Be careful, be available, and leave your home ready for the buyers to fall in love with it!
thanks to Liz and Bill Spear, Re/Max Elite, OHIO
PROTECT YOUR VEHICLE!
The following was sent to me from a fellow agent and I thought it was worth passing along.
What will the car thieves think of next? They peer through the windshield of your car or truck, write down the VIN # from the label on the dash, go to the local car dealership and request a duplicate key based on the VIN #. I didn't believe this e-mail, so I called Chrysler Dodge and pretended I had lost my keys. They told me to just bring in the VIN # and they would cut me one on the spot! I could even order the keyless device if I wanted!
The car dealer's parts Department will make a duplicate key from the VIN # and collect payment from the thief who will return to your car. He doesn't have to break in, do any damage to the vehicle, or draw attention to himself. All he has to do is walk up to your car, insert the key and off he goes to a local chop shop with your vehicle.
You don't believe it? It IS that easy. To avoid this from happening to you, simply put some tape (electrical tape, duct tape or medical tape) across the VIN Metal Label located on the dash board.
By law, you cannot remove the VIN, but you CAN cover it so it can't be viewed through the windshield by a car thief.
I urge you to forward this to your friends before some other car thief steals another car or truck.
Not to change the subject, but have you or one of your friends been thinking about buying a home? With all the changes that are happening in the loan programs, why take the risk of waiting?
Call me today and let's see how I can help!
And don't forget to cover up your VIN #! I look forward to talking to you soon!
Canada home price boom to grind to a halt
By Cameron French
TORONTO (Reuters) - Canada's housing boom will grind to a halt next year, stopped by price declines in the condominium-saturated markets of Toronto and Vancouver, according to a Reuters poll, raising the risk of a broader economic slowdown.
On a national basis, Canadian house prices are expected to rise 2.0 percent this year before stalling next year with a negligible 0.5 percent gain, according to median results of the poll, which was conducted last week.
House prices have increased 37 percent since their trough in January 2009, The Canadian Real Estate Association index showed. All 15 respondents in the poll said the market was expensive, by varying degrees.
"Home prices are overvalued by slightly under 10 percent nationwide (and) most of the overvaluation is concentrated in Toronto and Vancouver," said Mark Hopkins of Moody's Analytics, citing a common concern about the two hottest urban markets.
House prices in Toronto, Canada's largest city and financial capital, are expected to rise 6.6 percent this year after rising almost 10 percent in 2011. But that will quickly fizzle into a decline of 0.2 percent next year, the first fall since 2008.
In Vancouver, the country's most expensive market and until recently clocking the fastest annual price rises, they are expected to fall 1.6 percent this year and 2.5 percent in 2013.
Canada's housing market avoided the U.S. sub-prime boom and bust that triggered the global financial crisis, in large part because its banks are more closely regulated and more conservative, requiring higher deposits for mortgage lending.
While property prices tumbled in the U.S., Ireland, Spain, and to a lesser extent, Britain, record low borrowing costs that followed the recession spurred another wave of home buying and property market speculation in Canada.
By early 2010, sales volumes and prices were rising by double digits on an annual basis. Figures from one industry group showed that since March 2009, the nadir of the financial crisis, Canada home prices have risen by nearly a third.
HIGH DEBT LOADS
While the housing boom helped pull the country out of a shallower recession much faster than the United States, it has also fueled fears a major correction could be in the offing.
Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty have both expressed concern with the high debt loads Canadians have taken on to finance house purchases, enticed by rock-bottom interest rates.
Household debt levels are approaching those in the U.S. before the housing meltdown there, where prices fell by more than a third and still have not shown meaningful signs of recovery. Canada's credit market-debt-to-income ratio hit a record 152 percent in the first quarter of 2012.
Some economists, like Bricklin Dwyer at BNP Paribas, worry that Canada's economy, which has outperformed its peers in the G7, could take a big hit if the housing market were to turn suddenly. Recent experience around the globe shows that is what booming property markets often do.
"Whether or not Canada will face a hard landing will be determined by whether or not household risk was correctly priced in the first place. In other words, when Canadians show up to refinance their mortgages, if their interest rates jump and/or the terms of their loans change dramatically, then households could default at a rapid rate," Dwyer said.
"If the demand for housing slows too quickly, then homeowners could quickly find themselves underwater and promoting a dangerous cycle as they try to unload their home."
Unlike the Federal Reserve in boom times, The Bank of Canada said last week the housing market and the threat of a correction was one of the main risks to the Canadian economy.
"The continued high level of activity and stretched valuations in some segments of the housing market are of increasing concern," it said in its semi-annual Financial System Review.
CONDO BOOM TO BUST?
Housing starts are also expected to retreat through this year, according to the poll. Starts are expected at an annualized seasonally-adjusted 216,000 in the second quarter, falling to 190,000 by the fourth quarter. Annualized starts were 211,400 in May, down from 243,800 in April.
Rapid condominium construction in Vancouver and Toronto - where the skylines are now crowded with high-rises - has raised fears that the market could find itself saturated in supply and become the trigger point to a larger crash.
High immigration to both cities has fed the condo boom, but has also helped stoke fears that the market is partly supported by foreign investors who may pull out their money if the market starts to reverse.
Finance Minister Flaherty has tightened mortgage requirements three times since 2008 to cool the property market and the market has rallied on. But half of the respondents in the poll said the government probably won't intervene again in the next twelve months.
"The government understands that we have a safe mortgage market and that further tightening would risk a policy-induced housing market slowdown that would have broader macroeconomic risk," said property market analyst Will Dunning.
Reuters polled Canada's big banks, independent analysts as well as international participants. Of Canada's major lenders, National Bank Financial declined to participate in the poll, as did CIBC, saying they did not provide forecasts on Canada's housing market. A few other primary dealers also declined to participate. (Polling by Sarmista Sen and Sumanta Dey; Editing by Jeffrey Hodgson and Ross Finley)
Tuesday, June 19, 2012
Never thought of that!
| Some good ideas! Do you have any you can add to this list?
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June Newsletter
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Smart homes are making our lives easier, safer and more comfortable. This month we highlight how innovative networking technology provides the homeowner greater convenience and control over their daily lives. We also discuss how a strategically placed water feature can evoke feelings of peace and relaxation in your garden as well as why it's important to have your air conditioner serviced on a regular basis. Thanks so much for checking out this month's newsletter. Please let us know if you have any questions or comments regarding the articles or real estate in general -- it'd be great to hear from you!Life is good, 
The Bank of Canada kept its trend-setting Bank Rate at 1.25 per cent on June 5th, 2012. It was the 14th consecutive policy meeting in which borrowing costs have been left unchanged.While the text accompanying the announcement left the door open to future rate hikes, the language used was considerably less hawkish than in the previous announcement in April as the Bank sounded a cautious tone over the recent deterioration of the situation in Europe.The announcement begins, “The outlook for global economic growth has weakened in recent weeks. Some of the risks around the European crisis are materializing and risks remain skewed to the downside. This is leading to a sharp deterioration in global financial conditions.”The Bank also noted that while the U.S. economy was continuing to expand, albeit modestly, emerging economies were slowing faster and a bit more broadly than expected. That more modest global momentum combined with heightened financial risk aversion has led to lower commodity prices, which is weighing on Canadian exports.Canadian economic growth was slower than the Bank expected in the first quarter of the year, 1.9 per cent compared to a projected 2.5 per cent; however, underlying economic momentum remains in line with expectations.That said, the composition of growth has become less balanced. Specifically, housing activity has been stronger than the Bank had been expecting, and despite external risks, business and household confidence has remained resilient amid very stimulative domestic financial conditions.In contrast, the contribution to growth from government spending is expected to be quite modest going forward in line with recent federal and provincial budgets. Additionally, the recovery in net exports is likely to remain weak in light of the combination of reduced external demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.The Bank said the Canadian economy continues to operate with a small degree of excess capacity, and that even though headline CPI inflation was expected to fall below 2 per cent in the short term due to lower gasoline prices, the core rate inflation was expected to remain around the target 2 per cent mark.The announcement ended by reiterating that, to the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, the possibility of a rate hike was not completely off the table, but that the timing and degree of any such action would depend heavily upon how current heightened downside risks play out in the months ahead.As of June 5th 2012, the advertised five-year lending rate stood at 5.34 per cent. This is down 0.1 percentage points from 5.44 per cent on April 17th, when the Bank made its previous policy interest rate announcement. The Bank will make its next scheduled rate announcement on July 17th, 2012.
Imagine arriving home after a hard day's work and instead of agonizing over what to cook for dinner, your refrigerator offers you an array of delicious recipes based on what's inside! Then just for good measure, it detects food that's about to expire! Smart homes allow devices to communicate with one another in order to complement your daily routines. You can program your blinds to slowly open in the morning while at the same time the bathroom floor warms up and when you're done in the shower, your coffee will be ready and waiting! Smart features such as voice command systems help support independent living for the elderly and disabled. Having the know-how to sense scenarios such as the homeowner falling means help will arrive quickly as it automatically calls emergency services as well as other emergency contacts. This provides peace of mind for both the homeowner and their family members. Intelligent homes also provide exceptional security as lights and blinds can be enabled remotely and your smartphone can even notify you if someone's lurking around your property! These features are especially beneficial for those who own vacation properties. Keyless entry systems that use fingerprint sensors can also trigger certain home appliances and devices depending on who enters. Intelligent climate and light control saves energy and lowers bills so your home will be both the smartest and eco-friendliest on the block. The heating and cooling system can even create climate zones specific to individual family members preferences and can monitor how much electricity homeowners use in order to find ways to save even more energy. A smart home is like a personal assistant who handles all the odds and ends such as preheating your oven for your arrival home! You can now relax if you're not sure whether or not you set the alarm as you know it'll be taken care of. This type of technology is no longer for just the rich and famous. It's a major selling point and the higher your home's IQ, the higher the resale value will be!
Your backyard is the perfect place to take a break from the busy pace of modern life. Installing a water feature will help transform your garden into an oasis of tranquility and may also increase the value of your home. Water attractions can be as simple or complex as your budget allows. Installing a pond is more involved since you have to dig and line a hole. Safety is of course a critical concern if you have small children and if you plan on digging, contact the appropriate utility companies to ensure you don’t break a line. Keeping fish and other aquatic life means you’ll create an environmentally friendly haven for wildlife such as frogs, birds and butterflies. There's also a wide range of green alternatives such as solar powered fountains to choose from. By utilizing the sun's rays you'll use less power, enjoy lower electricity bills and won't get in a tangle over electrical cords! It’s important to spend time during the planning stage to ensure your water feature will integrate with your landscape and environment. Once you’ve finished designing and implementing your new eye catching water feature, find a comfortable seat and enjoy the peace and tranquility.
If something's going to go wrong with your A/C, it'll likely happen at the beginning of a heat wave. You'll roast for days until a technician’s able to come out and when they do, the repair cost will make your blood boil! A neglected air conditioner isn't as efficient or reliable so it's important to have it serviced every so often in order to ensure optimum performance. The service check will include cleaning the unit coils, checking the amp draw of the compressor, adjusting the belts and topping up the fluid. Regularly servicing your air conditioner will prevent wear and tear plus it will increase the efficiency of your unit which in turn will reduce your electricity bills. Don't let it slide again this year! Schedule your check-up today and avoid being left out in the heat.
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