Sales Down; Prices and Inventories Climb

Members of the Ottawa Real Estate Board (OREB) sold 1108 residential units through the Multiple Listing Service® (MLS®) in March, bringing the total number of sales for the year to 2696. This represents a 8.6% decrease over the first three months of 2004.

While unit sales are down, prices continue to climb. The average price of residential properties sold in March was $247,244, an increase of 5.1% over March 2004. The average price of a detached bungalow rose 7.1% compared to the same period a year earlier, to $270,857 from $252,857, while the average price for a standard two-storey home increased 5.7%, to $264,429 from $250,286.

Inventories are also on the rise. “There were 2326 new listings last month which resulted in an increase in the inventory of homes available for sale on MLS,” said OREB President Jeff Greenberg. “The increase in inventory and the number of sales in March indicates the Ottawa market is still balanced, according to CMHC’s definition. Interestingly though, the average time for a home to sell remains at slightly over 40 days.”

Sources: OREB and the Ottawa Sun

Fixed vs. Variable Mortgages

How do you choose whether to go short or long term on your mortgage when it comes up for renewal?

Variable rates are tied to your bank’s prime rate, which is based directly on the Bank of Canada rate. Our central bank sets the trend for short-term interest rates and has a direct impact on short-term rates for mortgages and lines of credit.

Fixed-term rates, such as long-term mortgage rates, by contrast, are based on the bond market. Bond yields can be volatile and fluctuate in response to various political and economic factors, such as inflation and unemployment figures, and developments in the stock market. Long-term mortgage rates (three years and longer) are based on bond yields, but are less volatile because financial institutions absorb the daily market fluctuations in order to create a more stable rate environment for their customers.

If it seems difficult to choose between a fixed and variable or long and short term mortgage, you don’t necessarily have to choose. Perhaps the easiest and best solution is to break your mortgage into pieces and diversify your borrowing across short and long terms. By blending different types of mortgages and staggering maturities, you can diversify your interest rate risk, and perhaps minimize your interest costs.

Source: News Canada

Fire Safety In Your Home

Most fatal home fires occur at night, while people are asleep. Poisonous gases and smoke can numb the senses in a very short time. Seventy percent of all home fire fatalities occur in homes without a smoke alarm or their alarm is not operating.

Smoke Alarms are the success story of the past quarter century. The home fire death rate has been reduced to a half of the rate before the 1960’s with the advent of smoke alarms. It is important for every household to have a good operating smoke alarm system and fire escape plan as follows:

• Choose an alarm that bears the label of a recognized laboratory.
• Install smoke alarms on each LEVEL of the home and outside all sleeping areas. Even consider alarms inside each bedroom.
• To increase safety, consider hard-wired interconnected alarms that when one sounds, they all sound. Most municipalities require this now in new homes.
• Alarms should be checked monthly by operating the test button.
• Never paint a smoke alarm. Never place them in corners or close to a wall/ceiling junction. See the manufacturer’s instructions for proper installation and maintenance. Alarms can be cleaned with a vacuum.
• Replace all smoke detectors once they are 10 years old.
• Make sure everyone knows what the alarm sounds like.
• Plan at least two ways out of each room, especially bedrooms and basements. Agree on a meeting place outside to confirm everyone has escaped. Tell overnight visitors of your plan and meeting place.
• Consider having a fire extinguisher in the kitchen area of your home.
• CO Detectors will not help in fire situations, however if there are any fossil fuel (wood, gas, propane, oil, kerosene, gasoline etc.) appliances or vehicles in your house or garage you are strongly urged to install them.

More information on alarms, escape plans and CO Detectors is available through the National Fire Prevention Association or the City of Ottawa.

Source: Inspect Smart

Mapping Your Next Home

Buyers searching for their next home often ask questions like: “Where exactly is [the home] located on the street?”, “How do I get there?” and “How far is it from downtown?” Ask no more.

Google has recently introduced a useful new satellite locator function on their Google Maps web site. To find a specific address, go to “Maps” and enter the complete street address. To obtain directions, click “Directions”, enter “Start” and “End” addresses, then click “Satellite”. You will quickly obtain both written and visual directions to your desired location. Amazing.

Spring Home Maintenance

Maintaining your home seasonally is the easiest and most efficient way to keep it in top condition. Not only does this help bring top dollar when you decide to sell, but it also allows you to fully enjoy your home while you live in it.
Some excellent maintenance projects for spring:

• Check for weather damage to your roof.
• Check the fascia and trim for deterioration; these areas tend to become worn, which may lead to water damage.
• Protect your home from sewer or drain back up; clear the drains of debris.
• Check and/or replace your fire extinguisher.
• Have a professional contractor inspect and maintain your heating/cooling system.
• Check your water heater for leaks; make sure you have a pressure release valve.
• Clean the clothes dryer exhaust duct and space under the dryer.
• Change batteries on your smoke alarms.
• Review your fire escape plan with your family.

These are minor details, but when taken care of annually, you can prevent the hassle and expense of major repairs down the road.

Source: Home Essentials