2004 in Review and Outlook for 2005

Members of the Ottawa Real Estate Board (OREB) sold 634 residential units in December, bringing the total number of sales for the year to 13,158 and making 2004 a record-setting year for properties sold through the Multiple Listing Service® (MLS®). This represents a 3.6% increase over 2003.

The average price of residential properties sold in December in the Ottawa area was $228,553, an increase of almost 5% over December 2003. The average price of all properties sold in 2004 was $235,678, an increase of almost 8% over 2003.

Recent market trends show a decline in average monthly prices for resale homes from $242,000 in May to $228,553 in December. Although the Ottawa housing market remains healthy, the number of listings has increased in comparison to the number of sales. Macleans nevertheless predicts an overall price growth of 4.5% in 2005, compared with 5% in Montreal, 3% in Vancouver and 2.5% in Toronto.

Sources: OREB; Macleans

Rhodes & Company Celebrates 65 Years

2005 marks a landmark year for Ottawa’s oldest locally-owned real estate firm. Since 1940, Rhodes & Company has listed and sold properties in every neighbourhood, price range and market.

E.N. Rhodes founded the company in 1940, and in 1994, the company’s four partners joined Coldwell Banker. Rhodes & Company’s decades of local service were the perfect complement to the 88 years that Coldwell Banker had been successfully representing buyers and sellers throughout North America.

Still locally owned, Rhodes & Company’s team of 40 realtors sells all types of residential and commercial properties, from heritage homes to architectural innovations; from starter homes to retirement condominiums.

Hospice Receives $25,000 Donation

Coldwell Banker Rhodes & Company presented the Hospice at May Court with a cheque for $25,000 in January. The in-patient unit for the terminally ill, located in Old Ottawa South, is the only one in Ontario funded by the province as part of a pilot project launched four years ago. The project was to close down last fall, but the provincial government extended funding to allow it to continue operating until the end of March. The donation was given to the hospice to help celebrate Rhodes & Company’s 65th anniversary.

I am pleased to take part in this voluntary program in support of May Court. A portion of the proceeds for each home I sell in 2005 will be donated to the hospice. Source: Ottawa Citizen

Asphalt Roofing

Asphalt is one of the most popular types of roofing materials available today. The condition of an asphalt roof is dictated by the condition of the granules in the joints between the tabs or cutouts in the shingles.

• If the granules are intact in the cutouts or joints between the tabs, the shingles are acceptable.
• If the granules in the cutouts are worn and the asphalt matrix is visible, the shingles are marginal because of obvious wear. Remaining life expectancy is limited.
• If the granules and matrix in the cutouts are worn through, the shingles are no longer acceptable.

Curling or cupping shingles may be an indication of wear, age or condensation problems; however, it does not indicate failed shingles. Roofs with multiple layers may not leak when the shingles are poor due to the layer of shingles below.

The life expectancy of asphalt composition is determined by the following:

• The slope of the roof. Shingles last longer on higher sloped roofs.
• The colour of the roof. Lighter coloured roofs last longer than darker coloured roofs.
• Exposure to the sun. North-facing shingles last longer than south-facing shingles.

A high-slope, light-colour, east-west facing roof can last 25 years or more; and a low-slope, dark-colour, south-facing roof may fail within 15 years. Careful attention should be given to flashings and valleys or asphalt shingle roofs — areas where the majority of roofing problems are generated.

Source: InspectTips

CMHC Launches New Incentives

Making home ownership more attractive and attainable are the objectives behind new incentives recently introduced by Canada Mortgage and Housing Corporation (CMHC). The new incentives include two federal energy efficiency initiatives and enhancements to CMHC’s mortgage loan insurance program.

Energy efficiency

CMHC has partnered with the federal government to offer a 10% refund on its mortgage loan insurance premium when a borrower buys or builds an energy-efficient home or makes energy saving renovations to an existing home. CMHC Mortgage Loan Insurance for Energy Efficient Homes will be applicable to both owner occupied and rental properties through participating financial institutions when a borrower obtains a new mortgage or refinances an existing one. To qualify for a premium refund, a home’s energy efficiency must be rated using Natural Resources Canada (NRCan) EnerGuide for Houses rating system and meet certain minimum requirements. A new home that is R-2000 certified or that has an EnerGuide rating of 80 or above is eligible.

For existing homes, home buyers or owners who complete energy-saving renovations through the EnerGuide for Houses service may also qualify for a non-taxable grant from NRCan ranging from $116 to $3,348.

The premium refund is also applicable to rental properties (apartment buildings; retirement and nursing homes).

Easier financing

CMHC’s latest enhancements to its mortgage loan insurance products and policies should offer financial institutions greater flexibility when providing mortgages. Starting in January, enhancements will include:

Streamlined income verification for self-employed Canadians

This will improve access to CMHC’s homeowner mortgage insurance products for self-employed people and speed up the decision-making process on mortgage insurance requests with no increase to premiums, surcharges or borrower qualifications.

Homeowner mortgage loan insurance for a second, year-round home

Qualified borrowers will be able to use any of CMHC’s existing homeowner products, including Flex Down, Line of Credit (LOC), Refinance and 95% Financing product when they purchase or refinance a second home.

Other enhancements should assist small builders with more efficient, automated processing of Progress Advance applications to provide faster and easier cash flow.

For more information on these new initiatives, contact CMHC at 1-800-668-2642 or visit www.cmhc.ca.