Marginal Changes, Overall Stability

Members of the Ottawa Real Estate Board (OREB) sold 933 residential units through the Multiple Listing Service® (MLS®) in October, bringing the total number of sales for the year to 11,575. This represents a nominal 1.3% decrease over the first 10 months of 2004.

The average price of residential properties sold in October was $244,226, an increase of 4.9% over October 2004. The average price of a detached bungalow rose 15.3% compared to the same period a year earlier, from $225,413 to $259,842, while the average price for a standard two-storey home increased 5.0%, from $256,873 to $269,715.

On the condominium front: The average price of a one-level apartment decreased 0.2% compared to the same period a year earlier, from $184,697 to $184,271, while the average price for a three-storey condo increased by 11.8%, from $163,957 to $183,250.

Thus far in 2005, the single largest average price increase category is building lots, with a 50.9% increase, closely followed by multi-family properties (three units or more) with a 50.1% increase over the same 10-month period in 2004.

"Clearly the real estate market conditions remain very positive, not withstanding a slight decline in the number of sales compared to last month and to last October," said OREB President Jeff Greenberg. "The average price of residential properties remains in the $244,000 range. Interestingly, there were almost 400 fewer new listings in the month of October than in September."

Source: OREB

Board of Directors

Earlier in the fall I was approached by the Ottawa Real Estate Board’s nominations committee to serve as a member of the Board of Directors for 2006-2007. "What an honour," I thought, as I quickly accepted. "What a lot of work," I reflected, as the reality of the assignment dawned. I look forward to the challenge, to learning more about the inside machinations of a respected organization, and to spending more time with an animated and industrious group of capable individuals.

Was the House Well Maintained?

Home inspectors indicate that poor maintenance is one of the biggest problems identified during a home inspection. Regular maintenance is the key to long life of all of a home’s systems. There are several basic items to check through – records, receipts, and general observation when examining the finer details of a home:

• Water Damage: Windows and doors should be regularly painted and caulked to prevent external water damage.
• Bathrooms: Tile grout and shower caulking should be secure and watertight to ensure there is no damage to the wall. Proper maintenance can eliminate the need to eventually replace damaged materials. Also, make sure there is a vent to the outside.
• Doors: Exterior doors should be painted periodically to deter rust and rot. Weather stripping should also be secure and fit tightly to prevent heat loss and water entry.
• Foundations: Surface water should be diverted as far as possible from the house. Good diversion practices include gutters and downspouts with splash blocks, which should take water at least three feet away from the house; and proper soil grading away from the home.
• Energy Systems: Service should be conducted annually and maintenance records should be kept. Systems last longer in the presence of well-maintained windows, extra insulation, and weather stripping and caulking.
• Siding: Wood siding should be regularly painted and sealed to reduce the risk of mildew, warping, rotting, and cracking. Aluminum and vinyl siding should be cleaned regularly.
• Septic System: Pumping the septic system is necessary to maintain a functional system and prolong life. Depending on the number of people using the system, it should be pumped every one to three years.
• Roof: To increase life expectancy of a roof, consider installing soffit and ridge vents, choosing lighter-coloured shingles, and increasing the pitch of the slope. A thermostatically controlled roof fan can also help to reduce heat and maintain a cooler temperature in the home during the warmer months.

Source: Inspect Tips

Nine of 10 Fraud Cases Are Private Sales

Criminals have found a new application for identity theft – real estate title fraud – and the Greater Toronto Area is at the centre of this growing criminal activity, according to industry experts.

Susan Leslie, VP claims and underwriting for First Canadian Title says, "Nine times out of 10, we see fraud cases arising out of private purchase and sale agreements."

"In 2000, real estate fraud accounted for six per cent of total claims," says Leslie. "This number grew to 14 per cent in 2002 and 36 per cent last year. Real estate fraud now represents our single largest claims category. We have been forced to understand the warning signs and are working hard to do our part in educating the industry of the dangers."

Source: REM

How to Evaluate a Home’s Exterior

You never get a second chance to make a first impression – even in real estate. When buying or selling a house, it is important to understand – and like – the structure. The house should be inspected visibly, both up close and from a distance, to assure the symmetry of the structure is relatively straight and in good condition.

• Levelness. The sides of the house should not be bowed or sagging, and windows and door frames should appear square. While the taste and needs of the buyer will be an important factor in the sale, a good foundation – straight, plumb, and with no significant cracks – can set the groundwork for a smooth transaction.
• Surfaces. Next, the client should check the exterior surfaces. Moisture and acids in the soil can cause stains and deterioration – and wood rot isn’t appealing to any potential buyer. Look for problem areas, which usually occur where the wood contacts the ground. There should be at least eight inches of clearance between the ground and all wooden materials. Other Points to check – are the shingles cracked, curled, or decayed? Is the siding firmly attached, warped, delaminated, or decayed? Are there any cracks in the joints or broken bricks in a brick veneer? Any cracks in stucco should be discussed with a professional before proceeding. If the house has vinyl or steel siding, the client should make sure there is no damage or bowing caused by heavy rains or hail. All vines should be removed from the side of the house and the paint or stain surfaces should be flat or even, with no flaking or blisters evident.
• Windows, Doors, and Trim. Another important selling point will be the house’s windows, doors, and trim. Check each frame to assure that it is tight and weather-stripped or caulked as appropriate. All window frames should be checked with a probe at the top and bottom to see if wood decay has caused them to go soft. Clients should make sure that wood frames and trim pieces are secure, with no evidence of cracks or decay, and that the joints around the frames are properly caulked. All screens and glass should be in good condition, with no evidence of breakage or other damage. Drip caps should be properly installed and all glazing should be in tip-top condition.
• Roof. Homeowners or agents should top off exterior inspection by checking the roof. Check for sagging or unevenness and be sure to check inside the attic, too. If sagging is evident, it could indicate insufficient framing support. That’s a job for a pro. Check the rest of the roof by physically going up there, if this can be done safely, or by using binoculars. Check the shingles’ composition, assuring that there is no curling, no loss of granulation, and no broken or missing shingles. Optimally, there will be only one layer of roofing material. Wood shingles or shakes should also have no damage or curling, and keep an eye out for mould or decay. Either way, the roof itself should be flat with no obvious patches, cracks, or splints. There should be no evidence of excess roofing cement, and no decay or stains around soffits and fascia. There should be flashing under roof penetrations, and exterior venting for the area under the roof. Naturally, all venting areas should be clean.
• Gutters and Chimneys. Clients should also inspect gutters and chimneys. Gutters should show no evidence of decay or rust, and all joints should be sealed and securely attached to the house. Chimneys should be straight and properly flashed, with no evidence of damaged bricks or cracked joints. The mortar cap on top of the chimney should also be checked for deterioration.

If clients assure their property can withstand this outside inspection, they are guaranteeing they’ll have the inside track to a potential sale.

Source: Inspect Tips