Market Updates
During the process of buying or selling a home, countless questions are bound to surface regardless of how "seasoned" you are in Real Estate. Some questions are easily answered, however others may require a bit of research and study. I understand how difficult it can be to sift through the mountain of information out there in order to find answers that are relevant and meaningful to you.
As a firm believer in "knowledge is power," I do my best to educate and inform my Buyers and Sellers about the current market conditions and the process involved once you have made the decision to move.
If you would like to receive regular Market Updates or newsletters please contact me at dodi.t@shaw.ca or call me at 604-644-3634.
Latest News
Posted on
February 21, 2014
by
Dodi Thorhaug
Significant gains at the top end of the country’s housing market continued to demonstrate the overall strength of Canadian real estate in 2013, according to a report released today by RE/MAX.
The RE/MAX Upper End Report, highlighting trends and developments in 16 major Canadian centres, revealed that:
- Seventy-five per cent of markets experienced year-over-year percentage increases in sales—including eight markets that posted double-digit gains. Greater Vancouver led the charge with a 36 per cent increase in luxury sales last year, followed by Calgary at 34 per cent, Edmonton at 32 per cent, Hamilton-Burlington at 31 per cent, Kitchener-Waterloo at 27 per cent, Winnipeg at 26 per cent, Greater Toronto at 18 per cent, and Saskatoon at 15 per cent.
- Over two-thirds of markets set new records for high-end sales in 2013. Markets included St. John’s, Quebec City, Greater Toronto, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Winnipeg, Regina, Saskatoon, Edmonton, and Calgary.
- Luxury sales have close to quadrupled since 2009 in Regina (up 288 per cent), tripled in St. John’s (219 per cent), and more than doubled in Winnipeg (189 per cent), Hamilton-Burlington (173 per cent), Saskatoon (157 per cent), the Greater Toronto Area (147 per cent), Greater Vancouver (125 per cent), and Calgary (115 per cent). London-St. Thomas was up 90 per cent, Ottawa increased 86 per cent, Edmonton rose 81 per cent, while Quebec City jumped 76 per cent and Montreal climbed 61 per cent in the five-year period.
- Last year’s relatively low interest rate environment, substantial equity gains in Canadian real estate markets, stellar performance in US equities, and improving economic conditions contributed to the upswing in luxury home sales, driving close to 70 per cent of Canadian markets to new heights in 2013.
- Diminished supply of single-family homes—particularly in markets like the Greater Toronto Area and Greater Vancouver—contributed to steady homebuying activity, as pent-up demand persisted. Yet, most purchasers remained grounded, especially at higher price points, and the climate proved fundamentally healthy.
Greater Vancouver experienced the largest bounce back in 2013, with sales of luxury homes posting the second highest level on record. Western Canada claimed the country’s top three high-end markets in 2013. Ontario continued to demonstrate strength in the upper end, especially in Hamilton-Burlington and Kitchener-Waterloo. Canada’s largest real estate market—the GTA—also reported healthy activity in 2013. Quebec held its own, with luxury sales outperforming overall residential market activity in both Greater Montreal and Quebec City. Atlantic Canada experienced solid demand in St. John’s, where upper end sales were up, but posted a decline in Halifax-Dartmouth.
The surge in high-end homebuying activity dovetails with growing strength in global markets, including London (where sales of homes priced in excess of $8 million are up 24 per cent), and the US, where sales at high end of the market—homes priced at $1 million or more—are selling at nearly triple the pace of everything else.
Local purchasers continue to be the primary drivers in the upper end of the market, as Canadian affluence climbs. The ranks of Canadian millionaires are growing—up approximately 6.5 per cent to 298,000 individuals in 2012 (over 2011)—and with it, the undeniable appeal of bricks and mortar. The CapGemini report also found that Canadian wealth expanded to $897 billion in 2012—with investment in equities and real estate contributing to the upswing in growth. Some foreign investment was also noted in 2013, most prevalent in markets such as Greater Vancouver and the Greater Toronto Area.
To read the full report. Click here: Canadian Upper End Market Trends
Posted on
February 18, 2014
by
Dodi Thorhaug
The City of North Vancouver issued a disclaimer to REALTORS about land speculation for people involved in the development process in our city. I firmly believe its imperative to have all the facts when you are investing in real estate, so I'm sharing what we know so far and links to find out more below.
Basically the warning is not to over speculate, or to pre-suppose the council's future decsions, until the new Official Community Plan is adopted by bylaw. The city is currently looking into different land uses and densities.Their density bonus policy is also being updated and may have an effect on potential maximum densities. There will be a public hearing.
CNV advises land owners considering selling property or prospective buyers of the following: 1. There is no guarantee that land use changes proposed in the draft OCP will be approved. This includes permitted density on any specific property. 2. An OCP does not create development rights. Development rights are as per the zoning bylaw. If the OCP changes, a subsequent rezoning of the land is required to achieve higher density or different land use as envisioned in the OCP. 3. The CNV is considering a new Density Bonus & Amenity Policy which could seek a financial contribution as part of a significant OCP change, rezoning or density bonus. This contribution could impact the cost of development and should be considered in determining property values.
Anyone considering land purchases should review all possible development costs, including off-site works, possible amenity contributions, time and uncertainty related to a rezoning application.
Read the Density Bonus/Amenity Draft at: www.cnv.org/DensityBonusCommunityAmenityPolicyUpdate
To view the land use map go to www.cnv.org/draftOCP
As always I'm here to help you any way I can. Regards, Dodi.
Posted on
January 28, 2014
by
Dodi Thorhaug
If you plan to buy a strata property, it’s important you work closely with a REALTOR®.
REALTORS® help clients thoroughly investigate a strata property before making a buying decision. REALTORS® have access to the resources and information strata property buyers need to assess potential problems in strata buildings.
Before buying a strata property, here are evaluation measures I recommend that you take with the assistance of your REALTOR®.
1 Review Strata Council minutes. Obtain copies of strata council minutes for the past year or more, along with bylaws, financial statements, annual general meeting or special meeting minutes, and any engineering reports that may have been completed. Look for past problems, previous repairs, special assessments, legal cases and upcoming expenditures. Also look for bylaws including rental, pets and smoking or any other significant restrictions or local rules.
2 Ensure a maintenance program is in place. Read strata council minutes, engineering reports and the strata depreciation report (where there is one in place) and speak with the property manager to determine whether the building has a solid preventative maintenance program in place.
3 Check contingency fund. Under the Strata Property Act and regulations, a portion of strata owners’ monthly maintenance fees must go into a contingency reserve fund to pay for extraordinary repairs, such as a new roof or repairs to leaks. It’s important to determine whether the building has a substantial contingency fund to cover any upcoming expenses.
4 Review the Property Disclosure Statement - Strata Title Properties. Sellers are encouraged to complete this form, which is a checklist to assist in disclosing concerns about the property's condition. Buyer should review it for any defects or potential problems and also to determine if parking stalls and storage lockers are attached to the unit and owned or are limited common property.
5 Investigate the warranty program and builder background. Whether the strata is new or resale, your REALTOR® can find out what type of warranty the building carries, noting the limits and duration of coverage. They may also be able to help find background information about the builder/developer of the project.
6 Consult with a professional home inspector. You may consider hiring an accredited home inspection professional (one who is licensed carries errors and omissions insurance) to inspect the condition of the suite, common areas, and the overall building structure.
Many REALTORS® specialize in strata sales and I would be happy to speak with you further about evaluating properties. Dodi
Posted on
January 28, 2014
by
Dodi Thorhaug
Rainwater Harvesting
For centuries, people have collected rainwater for drinking, washing and irrigation purposes. With the advent of municipal water treatment, rainwater collection became less popular in urbanized centres, though water storage cisterns can still be found in old farmhouses across Canada. But recently, rainwater harvesting has experienced an increase in popularity in countries around the globe as a result of droughts, water shortages and the rising costs of drinking water and stormwater infrastructure. Canada, too, is experiencing an increase in rainwater harvesting for lawn and garden irrigation, and many municipalities have begun to offer rebates for rain barrels. But larger, more sophisticated systems that capture, store, treat and redirect greater quantities of rainwater for other uses are still relatively new.
Rainwater harvesting systems use rainwater collected from the roof and should not be confused with systems that recycle treated wastewater or greywater (water from baths, showers and laundry). Rainwater that has touched the ground is generally not collected, as it can be contaminated with leaked automobile fluids, road salt, pet droppings, pesticides, fertilizers and dirt.
Some municipal planning codes now permit the use of non-potable (not safe to drink) water for toilet flushing and subsurface irrigation, while others permit the use of rainwater for laundry washing. Codes and bylaws will set out requirements for the appropriate materials to be used, sizing, supports, protection and marking, as well as the steps needed to ensure that non-potable water does not mix with potable (drinkable) water from the municipality or your well. Before installing a rainwater harvesting system, it is important to check with your municipality first to ensure the design and installation of your system will be in compliance with local regulations.
Depending on what you wish to use your rainwater for, your system can range from very small and simple to large and complex, with the cost varying accordingly. A general rule of thumb is that your system will cost $1/litre so that smaller 2000 litre systems will cost around $2,000. The first step will be to determine the quantity of water you will need for your intended purposes, the size of your roof catchment area and the amount of rainfall your area typically receives in a year. Based on this information, a rainwater harvesting system designer can work with you to determine how much rain you can realistically collect, how big of a cistern you will need and what you can use this water for. Cisterns have come a long way from the simple rain barrel. They come in different sizes (50 – 200,000 L), shapes (rectangular, square, cylindrical, bag) and materials (concrete, fibreglass, plastic, steel, wood) and can be installed above or below ground. Cisterns and related components should be insulated or emptied to avoid freezing in the winter months.
While there are currently very few regulations for rainwater quality, a rainwater harvesting system can include some level of treatment to stop the system from clogging up and to help ensure good water quality. Gutter filters, screens and systems that divert the “first flush” of rainwater are used to reduce the amount of leaf litter, insects, pollens, dust and other pollutants that can collect on roofs and get into the rainwater system. Screens are also used on access openings on the cistern to keep out insects, rodents, etc. Stored rainwater can also be treated with cartridge or membrane filters and then disinfected with chlorine or ultraviolet light prior to use. Check with your local health agency to determine what treatment (if any) is required in your jurisdiction. Once installed, it will be necessary to maintain your system as per the manufacturer’s instructions to ensure optimal performance. It is important to inspect and clean out gutters, check filters and check for leaks at least once a year.
In most cases, you will need a pump to deliver the treated rainwater from the cistern to the garden or your house. It is important to ensure that all plumbing and piping for the distribution system are adequately sized and installed for optimal flow. Consideration must be given to redirecting excess rain to a soakaway pit or infiltration trench to prevent the cistern from overflowing during heavy storm periods. Consider having your system designed, installed and commissioned by a professional.
Rainwater harvesting systems offer an effective way to reduce your water bills, use plant-friendly water in your garden and reduce your demands on local water infrastructure. To learn more about rainwater harvesting systems, visit CMHC’s website (www.cmhc.ca) to view the consumer guide to rainwater harvesting, or call 1-800-668-2642 to request a copy of the publication.
For over 65 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency, and a source of objective, reliable housing information.
Posted on
January 28, 2014
by
Dodi Thorhaug
Auxiliary Water Sources
How to Supplement the Water Supply in Your Home
Canadians enjoy some of the highest-quality water in the world. But despite our abundant supply of fresh water, it remains, by its very nature, a valuable resource that should be conserved and protected — particularly in those areas of Canada facing water shortages. As a result, more and more Canadians are paying attention to the amount of water they use and are cutting back by using water wisely and purchasing water-efficient fixtures and appliances.
Another way to conserve water is by using auxiliary water sources — if permitted — to supplement and conserve the local public water supply. Auxiliary water includes everything from rainwater collected from your downspouts, to “greywater” that’s collected from the laundry or shower, treated and reused for non-drinking purposes around your house.
If you’re thinking about using auxiliary water sources in your home, Canada Mortgage and Housing Corporation (CMHC) offers the following tips on how to supplement your water supply while keeping your family safe and healthy and not running afoul of local building regulations:
- If you’re building or renovating a house, find out from your local building department what’s allowed, what is not and what may be required to get municipal approvals.
- Auxiliary water sources must use a separate plumbing system so it is not mixed with your potable water. Talk to your builder, architect, renovator or plumber as early in the process as possible about including auxiliary water-ready components in your home. This may include dedicated piping for auxiliary water as well as any related storage and treatment systems. Planning for those components now could save you a great deal of time and money in renovations later whether or not you include the auxiliary supply today or at some point in the future.
- Work with your contractor to determine how much water and what level of water quality is needed for different uses in your home. This will help ensure the system is designed properly and will be able to supply all the water your family needs, at whatever level of quality you require.
- Make sure you know where the water you’re collecting comes from, and what you will be using it for. Not all of the water you collect from different fixtures can be used for the same purposes. For example, water that’s collected from your shower might be safely treated and reused to flush your toilet. But only fully potable (or “drinkable”) water should ever be used in the shower itself. Again, make sure you check with your municipality.
- Depending on what you are using the auxiliary water for you may also need to think about storing the water before it is used. For instance, rainwater collected from your downspouts to water your lawn is often used immediately, without any further treatment. But if you’re collecting greywater for use in toilet flushing you may need to treat and store that water so it is available when you need it.
- Lastly, find out what programs or regulations are in effect in your area when it comes to auxiliary water. Some communities, like the City of Guelph, offer rebates for homeowners who use auxiliary water. Other cities may have rules in place that limit which kind of water you can reuse. Always check with your local municipality or water authority before you install an auxiliary water system in your home.
To find out more about auxiliary water sources, or for information on any other aspect of owning, maintaining or buying a home, visit our website at www.cmhc.ca or call CMHC at 1-800-668-2642. For over 65 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency, and a source of objective, reliable housing information.
Published: October 17, 2013
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