Halifax Real Estate Blog

New Round of National Housing Stats

As with all National Stats, it's important to look for local implications.  The article rightly states that local markets don't always follow the national trend and that despite average prices being up slightly, sales activity has declined in some cases - so fewer homes are selling.

Photo credit to Shelley Ellis Photography, used with permission.

Realtors all over Canada are reporting Canadian home sale prices are up in June. An article on CTV.ca shares all of the detail.

OTTAWA — The Canadian Real Estate Association says Canada's home prices continued to rise last month and a majority of the country's local markets showed a balance between supply and demand, including in Toronto.

The national average price for Canadian home resales was $372,700 in June, up 8.7 per cent from the same month last year as the number of sales increased.

The Canadian Real Estate Association said Friday its members sold 10.8 per cent more homes last month compared with June 2010. June's sales activity was also 2.6 per cent higher than in May.

CREA says 60 per cent of local housing markets in Canada were balanced in June -- meaning the number of sales and new listings were about the same.

"Canadian housing demand remains resilient, thanks to low interest rates, job growth, and home buyer confidence in the economy," CREA president Gary Morse said in a statement.

He also noted that trends in local housing markets often differ from the national statistics.

CREA noted that national figures in June showed less of an impact from the sales of high-priced homes in Vancouver, although that city continued to skew the national results.

Activity in Toronto was described as stable in June while it declined slightly in Vancouver and the Fraser Valley area of British Columbia.

Calgary, Montreal, Ottawa, Hamilton, London, Ont., and Victoria all saw gains over May.

Nevertheless, national sales activity in the second quarter (April, May and June) was down 4.5 per cent compared with the first quarter of 2011.

CREA attributed the decline from the first quarter to new mortgage rules announced in January and implemented at the end of March and an increase in mortgage rates in April and May.

CREA's monthly report comes ahead of Tuesday's Bank of Canada announcement on its target overnight interest rates. The central bank is widely expected to keep the key rate unchanged at 1.0 per cent, where it has been since September.

Earlier in the year, economists had expected the Bank of Canada would begin raising its short-term rate to quell inflation. However, sentiment has changed amid signs that the U.S. economic growth has been less robust than expected.

In contrast with the United States, Canada's job growth has been stronger, its federal government is making more headway in dealing with budget deficits and its resource exports are relatively strong -- putting home buyers in good shape.

"The Canadian housing sector remains on a solid footing," said Gregory Klump, CREA's chief economist.

"The rise in monthly home sales activity at the end of the second quarter, upbeat business sentiment and hiring intentions, and signs that the Bank of Canada is in no rush to raise interest rates bode well for home sales activity and prices going into the second half of 2011."

Design Tips to Last For First-Time Homeowners

HGTV's Editorial Team is full of helpful hints for all buyers and sellers.

Moving into a new house can be an overwhelming experience, especially if your dream home initially seems more like a nightmare. But take heart! These simple but powerful decorating tips will open up your minds to fresh possibilities which can significantly upgrade the comfort level, home aesthetics and the market potential of your property.

Think focus
The sofa in the living room, the bed in the bedroom, the desk in the office. While choosing home furnishings, the major piece for any room must be considered first. This piece in most cases becomes the focal point of the room. For instance, a long empty wall can be made into a focal point by grouping pictures over a long narrow table. Your focal point can be almost anything - a fireplace, a painting, and an entertainment center. By having a focal point, you can beautify and emphasis on the focal point and give your room a sense of constancy.

Think balance
Large pieces of furniture should be evenly distributed so as not to put the room off balance. Leave room around them for the best affect. In selecting home furnishing pieces, keep the architectural shapes in the room in mind. Try to balance pieces opposite one another.

Think light
Be conscious of the light in the room when selecting and placing your home furnishings. A dark cabinet may disappear in a dimly lighted alcove. Bright pieces may seem garish under a picture window. Break up the horizontal lines of the room by mixing in taller items.

Think practical
Think about the use of the room as you place the home furnishings. If you typically eat or drink there, is there a place to set your cup or plate down? Is there enough storage for books or CDs? Mix hard and soft surfaces by adding rugs or fabric- covered tables to a room otherwise filled with wood, metal and stone.

Think colours
Once you have decided on a colour scheme, bring your samples home. Look at them at different times of the day, and in both natural and incandescent light. Keep in mind that darker colours will tend to fade over time more than lighter ones. Be sure to take into consideration any existing home furnishings pieces that will remain in the room as well as the various wood finishes present.

Think coordination
Aim for coordinating elements in the home. Many of today's wall covering sample books feature a whole range of coordinating home-style products, such as borders, fabrics, comforters, pillow shams, place mats, table rounds, and shower curtains. By selecting a specific collection that features these products, you can put together a whole unified interior decorating package for a comparatively low cost.

Happy decorating!

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Ten Home Improvement Projects That Add Value

These helpful tips come from the HGTV.ca's Editorial Team.

Can't stand your scary, cobwebby basement one more minute? Is it past time to replace the pink-and-aqua tiles and porcelain in the master bath? Maybe you're sick of the curling, chipped vinyl floor, the tacky cabinets, and cramped layout of your kitchen.  Perhaps you're trying to convince your partner that the siding is sad and stucco would be stupendous. But your partner wants to build a deck…

What are the best home improvement projects to undertake? It depends on your goals and plans. If you're trying to sell your property soon for the highest possible price, your priorities are likely somewhat different than if you're planning to stay for a few years and want to improve your family's quality of life.

If you're selling, focus on the renovations a buyer would be most likely to undertake, not those you're most itching to do. You might dream of putting French doors and a Juliet balcony in the master bedroom, but if your kitchen is twenty-five years old—or even fifteen—you're better off directing your home improvement dollars there. Buyers generally focus on kitchen and bathroom quality, along with overall living and storage space. Kitchen and bathroom remodelling projects are among the most disruptive undertakings, so buyers especially appreciate upgraded fixtures, appliances and décor in these rooms.

Here are ten worthwhile home improvement projects and the percentage of cost typically recouped at resale (in a seller's market):

1. Painting
If you're only going to do one thing, paint. Interior/exterior painting is one of the very few improvements on which you are likely to realize a profit—as long as you choose tasteful, current, neutral colours and the work is very professional. Payback: As much as 300%

2. Kitchen remodelling
Typically one of the most expensive improvement projects, and you can quickly run up a huge bill. Careful planning and shopping will help minimize costs here. When remodelling the kitchen, remember to keep the project in line with the style and quality of the rest of the house and neighbourhood.  Just as there's no point in putting a pricey granite countertop on dated-looking 1970s cabinets, there's no point in installing a $50,000 kitchen in a $200,000 house.  Payback: 68-120%.

3. Bathroom addition
If your home has only one bathroom and is meant to house more than two people, a bathroom addition should be one of your top priorities. If most homes in your neighbourhood have two, three or more bathrooms, and yours has just one or one-and-a-half, you will definitely increase your property value by adding a bath. Payback: 80-130%.

4. Bathroom remodelling
Upgrading a pokey bathroom will enhance the value of your home and add to your daily comfort and enjoyment. White porcelain is the safe, timeless choice here. Payback: 65-120%.

5. Finishing unfinished space
Whether it's an attic or a basement, by finishing these spaces you add significant value to your home, increasing square footage without having to build. Payback: 50-90%.

6. Window/door replacement
If your windows or doors are wasting energy or simply decrepit-looking, replacements can be an excellent use of your home improvement dollars. Stick to standard styles; odd shapes and highly customized arrangements do little for resale value. Payback: 50-90%.

7. Deck addition/improvement/expansion
Decks are one of the few exterior improvements with any significant return, apart from painting. Payback: 65-90%.

8. Additions of bedrooms, family rooms, sunrooms, conservatories, garages, etc.
Increasing square footage is almost always an excellent use of remodelling dollars, but don't expand your home so much that there's little outdoor space left. Payback: 50-83%.

9. Home office remodelling
This project is becoming increasingly popular. Be sure to plan for plenty of electrical and cable outlets to accommodate all the required machines and gadgets. Payback:  60-73%.

10. Energy efficiency retrofits
If your primary concern is return on investment, proceed with caution. Some retrofits, like better insulation and high-efficiency furnaces, pay for themselves relatively quickly. Others, like solar panels, heat recovery ventilators, and tankless water heaters, may take years to pay for themselves. Payback: Highly variable.

Two projects that are unlikely to pay off at resale: swimming pools (which may even adversely affect your property value) and excessive landscaping (buyers may admire it but few will pay extra tens of thousands even if that's what you spent to improve the grounds). And remember that badly done remodelling/renovation projects will cost you in two ways. You won't pay just for labour and materials; you'll pay when buyers see a project that has to be redone.

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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