Supply Impacts Resale Market

“Ottawa’s housing market should be able to cruise in high gear for at least another year, powered by the strong job growth of the past few years,” according to a new forecast from the Canada Mortgage and Housing Corporation (CMHC).

CMHC forecasts that the price of resale homes will climb another six percent in 2005. At the same time, CMHC predicts that five-year mortgage rates could increase to as high as 7.5% and reports that it now takes an average of 40 days for a home to sell. Supply is beginning to affect the resale market, where the number of listings recently hit its highest level in a decade. Buyers have more choice and more bargaining power than they did in the recent past.

Members of the Ottawa Real Estate Board (OREB) sold 11,654 residential units through the first 10 months of 2004, 4.0% higher than 2003's 10-month total of 11,201 units. According to OREB, the average selling price of a residential listing increased to $251,980 in the first 10 months of 2004 (up 8.2% from 2003) and the average selling price of a condominium increased to $173,138 (up 5.2% from 2003).

More Canadians Opt for the Cottage Life

According to the results of a recent survey, six percent of Canadians are likely to purchase a cottage or recreational property over the next three years. A report in Edge News states, “In 2005 there will be four Canadians seeking recreational properties to every one cottage owner who plans on selling. This scarcity of supply continues to exert pressure on property prices across the country.”

Buyers considering the purchase of a recreational property should consider a number of factors before making an offer. Shore road allowances, well and septic inspections, and environmental and insurance issues are all challenging factors that buyers and their realtors must face. Changes in municipal and district governance, and property tax reassessments can result in significant tax increases for property owners.

Financing can also prove to be a barrier for some. Traditional lending institutions often recommend an equity loan or second mortgage on a principle residence. However, one lender, Mortgage Intelligence, has launched a new product for cottages, owner-occupied ski chalets and non-winterized or seasonal properties with year-round access. For more information, visit www.mortgageintelligence.com and click on “irelax.”

The average age of vacation home owners is 52. During the next several years, aging baby boomers will fuel the demand for recreational properties.

Source: Edge News

Burglar-proof Your Home

Unfortunately, break-ins are more common than we’d imagine. Even daylight hours will not deter some of the bolder criminals. To avoid becoming another statistic of crime, the following advice can make your home less attractive to burglars, thieves and other uninvited guests.

Exterior Lighting. Most experts in crime prevention agree that a well-lit home is much less likely to experience a break-in. One of the best methods is installing motion-sensitive spotlights. These come equipped with built-in sensors that automatically turn the lights on when movement is detected in the area of the sensor. Nothing is more surprising to a burglar than to have strong lights hit his face before he gets within 50+ feet of a targeted home.

On the inside of your home, use timer switches on the lights. These simple devices cost only a few dollars each yet create the appearance of activity inside your home. It is recommended that you use at least one timer per floor, usually in the bedroom and living room areas. Set the living room light to stay on from dusk until about midnight. In the bedrooms, set the timer to keep the lights on from about 9:00 p.m. until 1:00 or 2:00 in the morning. Any criminal watching your home will think twice about breaking into a house that looks occupied.

Alarm Systems. The cost of installing a good quality alarm system has come down in recent years due to increased competition and technology, Installations are simpler and quicker. In fact, some companies offer to install “free” systems if you agree to their monthly monitoring fee. Most home security systems connect your telephone to the company’s central monitoring station. If the alarm goes off, the monitoring company can alert police, fire or medical officials. One of the most common complaints about home security systems is excessive false alarms caused by malfunctions. If your alarm system goes off all the time, neighbours and public officials may not take it seriously if a real emergency occurs. Select your alarm company with care and check references.

Strong/Durable Doors. Make sure exterior doors are as strong as possible to deter break-ins. Here are several simple ways to make improvements:

1. Install a good quality dead bolt. Doors with handle locks can be broken into with only a credit card. Dead bolts, on the other hand, require hammer force to break in. Make sure you buy a dead bolt with a key on the outside and a thumb latch on the inside. Locks that require a key to be used on the inside are dangerous. If the house were on fire, for example, it would be difficult to find a key in time to get out safely.

2. Remember that no matter which lock you choose, the lock is only as strong as the door itself. The weakest part of the door is usually the area around the lock. Wooden doors are especially vulnerable. But decorative door reinforcement plates are available for about $15, and make this area more secure.

3. Sliding patio doors need special attention against break-ins. These doors are usually in the rear (less visible) areas of the home, making the door an attractive entry point for thieves. Patio door locks are usually weak and older doors can even be “lifted” out of their track and right off your house. Purchase a specially made “patio bar” (about $35) to secure the inside door from being slid open or pried off if the lock is broken. If your door is newer, you may be able to use a 2" x 4" piece of wood cut to fit inside the track beside the sliding door and the wall. Newer doors can’t be lifted out of their tracks and the wood blocks will keep the door from opening if the lock is pried off.

Weak Windows. Window are usually the weakest link in home security. While there are many security devices to choose from, it is important to always keep in mind that windows must be easily opened by occupants in the event of a fire. The security device you choose should keep burglars out, not lock you inside the building.

Sash locks come installed on most new windows. These can be improved: drill a hole from front to back where the top and bottom windows overlap; then install a long steel pin in the hole. If a thief breaks the lock, the steel pin will stop the window from sliding open. The steel pin can be easily removed if you need to get out quickly. Sash locks are sometimes replaced with key-operated locks, but these are very dangerous. Like the double-keyed dead bolts, it can be difficult if not impossible to find these seldom-used keys in an emergency.

Landscaping. Dark houses surrounded by high bushes or tall trees provide burglars with plenty of cover to do their dirty work. Keep all trees cut away from the house and make sure all bushes are trimmed low to the ground.

Obvious Give-aways. Piles of mail or newspapers around your front door are sure signs that you are away and that no one is watching your home. Make arrangements for all deliveries to be temporarily discontinued or ask a neighbour to collect deliveries, mail and newspapers.

Plan a Retreat. If all else fails, plan a spot in the house to retreat to in the event of a break-in. Keep an extra cordless or cellular phone in the room so you can easily contact authorities.

Source: Home Tips

Holiday Tips

Trees, lights and holiday cheer make this a special time of year. Don’t let your celebrations turn into tragedies because of dangerous decorations, faulty fireplaces or other common causes of household accidents. Simple precautions could make the difference between a peaceful or disastrous holiday season.

Before the holidays start, check the batteries in all smoke detectors. Also, consider purchasing a fire extinguisher and mount it centrally in your home. There are three different types of fire extinguishers, for class A, B and C fires. Homeowners should have at least a class B-C extinguisher which is good for trash and paper fires as well as fires caused by grease or flammable liquids. For some additional tips to help homeowners keep their families safe during the holiday season, consider the following:

Trees. Both real and artificial trees can present potential fire hazards. Felled holiday trees can easily catch fire when they are dried out. To prevent an unwanted blaze, purchase your tree as close to the holidays as possible, so that it is fresher. Cut the trunk at a 45-degree angle when setting it up, so it absorbs the most water. In addition, make sure you fill the tree stand with water at least once a day.

Artificial trees must be fire resistant. Avoid the old-fashioned metal trees that have the added risk of electrocution should they come in contact with a faulty string of lights. The safest holiday tree is a live potted tree, which won’t dry out and can be replanted in your yard. The tree should be moved outside within three weeks, before it becomes too acclimated to indoor heat. After the holidays, keep it in the garage or similar area. You can plant the tree when the ground thaws in the spring.

Lights. Only use lights with a ULC (Underwriters Laboratories of Canada) seal of approval. Old light strings can be dangerous, so check for signs of excess wear. Look for broken or cracked light sockets, worn or frayed wire and loose plugs. Use only smaller lights indoors. The larger, thumb-sized lights get extremely hot and could cause a fire if they come in contact with dried-out pine needles or paper decorations. If you have old, larger lights in good condition, use them outdoors. Finally, never leave indoor holiday lights on when you are not at home.

Decorations. Use only non-flammable decorations. Never leave candles burning unsupervised or near anything that can catch fire, like pine needles. Be careful to place decorations out of reach of toddlers who can choke on small ornaments and other holiday mementos. If you use string to tie up decorations or to support your holiday tree, remember to guard against a curious child getting tangled up in it. Make sure your tinsel does not contain lead, which can be poisonous if swallowed. Mistletoe is also poisonous, so be sure to attach yours firmly and well away from the grasp of small hands.

Source: Home Tips

Thank You

A special thank you to my clients for your referrals and kind words in 2004 — by far my most successful real estate year to date. Since the bulk of my business comes from referrals, your assistance is very much appreciated. Please keep in touch and feel free to contact me at any time if you have questions related to real estate, trades people, etc.