By Sunny Freeman, The Canadian Press
TORONTO – Canada’s housing boom will continue this spring as exceptionally low mortgage rates – and the expectation that borrowing costs will soon be headed higher – add a sense of urgency to consumer buying.
A Scotiabank global real estate trends report released Tuesday predicts most Canadian regions will remain sellers’ markets for the first half of the year, as strong demand and rising prices continue.
“I think you’re going to have a very active spring market, probably some cooling off in the second half of the year,” Adrienne Warren, the Scotiabank economist who wrote the report said in a presentation Tuesday.
“We’re looking at once in a lifetime interest rates that people are taking advantage of…but certainly confidence is coming back, the job markets are stabilizing,” she said.
Scotiabank expects about 510,000 home sales this year, up ten per cent from 2009, but just shy of the 2007 record. Average prices are forecast to increase about eight per cent to a record $345,000, while housing starts are expected to reach 190,000, up from 149,000 last year.
The economic recovery from last year’s painful recession has improved consumer confidence, although a bounceback in the jobs market is taking more time. Just over a third of the 417,000 jobs lost in the 2008-2009 recession have been replaced and the jobless rate is still at 8.2 per cent, only half a point below its high last August.
Most experts predict the rise in consumer confidence about the economy, and low interest rates, are behind the continued strength in the housing market.
Warren said the spring rush will be driven by an influx of buyers hoping to preempt tighter lending rules for mortgages and the introduction of the harmonized sales tax in Ontario and B.C. But a steady increase in the number of listings and a rise in construction are helping to restore a more balanced market.
“We’re starting to see better balance, we’re seeing more listings. There was a real lack of listings for the better part of last year…we’re moving back into a better balanced situation,” Warren said.
Warren said the hot spring market should give way to more subdued activity in the second half of the year, as higher interest rates and higher home prices erode affordability.
Economists expect the Bank of Canada to raise interest rates by between half a percentage point and a full point over several months beginning in late spring or early summer to fight inflationary pressures in the economy.
With many Canadians taking on larger and larger mortgage debt in expensive markets across the country, higher rates could create financial problems for some homeowners.
Warren added that the incentive for builders to add new houses to the market should also fade as supply increases and prices cool.
The front-loaded activity in the first half of the year will also contribute to lower sales, prices and construction in 2011, she said.
Canada’s recovery continues to outpace developed countries around the world with housing prices in the fourth quarter up 19 per cent year over year. The strong performance has carried through into 2010, with sales in the first two months just slightly behind the near-record levels seen in late 2009.
Warren said that year-ago comparisons are amplified by the sharp drop in sales and prices at the end of 2008, but still represent a remarkable turnaround in a short time.
“We’re not seeing a lot of evidence of speculative activity, I think you’re just looking at a tight market, more buyers than sellers and people have to pay a premium in that environment,”she said.
She added that milder that usual temperatures across the country may have also put a bit of spring into a typically slow winter sales season.
Meanwhile, housing prices in countries including the U.K., Japan and the U.S. were still below year-earlier levels in the final quarter of 2009.
http://ca.news.finance.yahoo.com/s/23032010/2/biz-finance-canada-s-housing-boom-continues-outpace-recovery-developed.html

With the spring coming and housing sales activity on the rise, many individuals will be preparing their homes for sale. There are many things that home sellers can do to make their home more appealing to the prospective buyers. Many of these projects are inexpensive, they just take time. In order to ensure your home is in the best possible condition, start with a few simple items.
The first step would be to de-clutter your home. De-cluttering involves getting rid of things that you no longer use or that make the house look crowded. Personal items such as family photos, should also be removed from the home as they detract from the marketability of your property. Potential buyers will focus on the pictures instead on the house itself. Many individuals feel overwhelmed when even thinking about where to start, as they have accumulated a variety of items throughout the years. Coming up with a daily list of items to put away or throw away will make the job more manageable. If possible these items should be stored off site at a relative’s garage or rented storage. It is best not to store it in the garage as potential buyers will want to take a look there as well.
Secondly make sure your house is clean, that means that there are no stains on the carpets. All floors, couches and walls should be clean and the home should feel fresh and airy. Special attention should be paid to the bathrooms and kitchen. Make sure to organize your kitchen cupboards and closets as most buyers will look in there as well. (Muir, 2009)
Fix the small items. One should repair leaks, water damage and loose or cracked tiles. If you are not able to do it yourself, it is best to hire a professional. If needed a fresh coat of paint will make a great impression. Make sure your windows are clean and the curtains are pushed back to allow natural light. Ensure great curb appeal, mow your lawn, and weed your garden in the summer and spring and make sure your side walk is always shovelled in the winter. (Kuchment, 2004)
Consider hiring a staging professional to help you make your home more appealing to buyers. Staging professionals are familiar with the latest design trends and will offer you advice on how to increase your home’s potential. In the initial consultation most home stagers will do a one or two-hour walk through your home, and come up with a recommendation list. These may include moving or repositioning artwork and furniture, packing away knickknacks, changing the lighting or painting the back fence. Then you have the option of completing these items yourself or hiring the stager to finish the job. Some home stagers will also bring rented furniture and decorations if necessary. Home staging is not just about getting you a better price but it is also about getting the home sold fast. (Bauer, 2003)
Completing all of these items will help to make your home more attractive to buyers and get you the best possible price for your property.

Written by: Eva Wolicki, REALTOR® – Realty Executives Polaris (Edmonton) evasells@realtyexecutives.com

Laura Muir. How to stage your home like a pro, Chatelaine. (English edition). Toronto: May 2009. Vol. 82, Iss. 5; pg. 168, 2 pgs. Retrieved from Pro Quest database on Feb 9, 2010

Anna Kuchment. Primped to Sell, Newsweek. New York: Jul 12, 2004. Vol. 144, Iss. 2; pg. 69. Retrieved from Pro Quest database on Feb 10, 2010

Gabrielle Bauer. Selling Up, MoneySense. Toronto: Nov 2003. Vol. 5, Iss. 5; pg. 13. Retrieved from Pro Quest database on Feb 10, 2010