Eva Wolicki's Real Estate Blog

New Listing

Eva Wolicki — Tue, 27 Apr 2010 21:34:16 +0000

Great location, large 3 + 2 bedroom, 2 bathroom, half duplex located close to grocery stores, schools and shopping. Excellent investment property – currently rented out at $1900 a month. This home is also a great starter home for the expanding family; it offers tons of living space. Upgrades include new tiles in bathrooms, new carpet and newer laminate flooring.

Making Your House Solar Ready

Eva Wolicki — Sun, 11 Apr 2010 18:36:24 +0000

Solar energy has been used by humans since centuries ago. Throughout recent years the idea of using sustainable resources has grown in popularity as individuals move to more earth friendly ways of obtaining energy while reducing their costs. Energy from the sun is considered environmentally friendly as it is generated from a naturally replenishing source. There is an abundance of solar energy available, however only a small percentage is actually used. (Jacobson, 2009) Some countries such as Japan have spent a lot of time and money on research and development of solar panels. The goal of the Japanese government is to have 30 percent of the homes implement a solar system in order to reduce green house gas emissions. (Kyodo News, 2008)

In order to capture the sun’s energy, photovoltaic panels need to be used. Photovoltaic panels are made of arrays of cells that convert solar radiation into direct current energy. The panels can be installed on any surface that provides maximum exposure to the sun. Most often, solar cell arrays are being integrated into building elements such as roofs and siding. The energy is obtained by converting light into voltage between two layers of semiconducting materials. It can be used to provide lighting in homes, power to water pumps or other appliances that serve entire communities. The price of the panels can be quite high, but it is projected to drop as the demand for this reliable form of energy rises. (Friedman, 2008)

In Canada, some home owners like Scott McKenzie are choosing to go green. Scott hired Ottawa’s Isolara Energy Services Inc. to install a solar system to heat his 2000 square feet home. He has paid approximately $3,330 for the panels, and expects the system to pay for itself in about 10 years. Another system that can be implemented is a solar hot water system, which should meet about 60 percent of a family’s hot water needs. Hot water consumption comprises of 25 to 30 percent of household energy consumption. Experts say that the hot water system will pay itself off in seven to eight years.

In addition to the solar hot water system, a backup system needs to be installed to heat the home during cloudy days when not enough sun is available to produce energy. The tankless Poloma hot water system kicks in for the household water needs and the radiant heat system. It heats water only when it is needed, therefore saving energy that a conventional heater uses to keep water hot all the time. By using the federal EcoENERGY and various provincial government rebates, the solar hot water and tankless setup will cost you about $12,000.(Langston 2008)

In conclusion, environmentally conscious owners are implementing solar technologies to reduce their carbon foot print. Although initially the costs of the systems seem quite high, over the long term they pay themselves off, and help decrease green house gas emissions.

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

Jacobson, Mark Z. Review of Solutions to Global Warming, Air Pollution, and Energy Security p. 4. (2009)

Kyodo News, Solar panels to go in 30% of houses by 2030. Japan Times online. Tuesday, Jan. 1, 2008 http://search.japantimes.co.jp/cgi-bin/nn20080101a5.html

Friedman, Avi. Clean and Free Power from the Sun. CanWest News. Don Mills, Ont.:May 6, 2008. Retrieved from Pro Quest database on March 10, 2010

Langston Patrick. New technologies take chomp out of home energy bills. CanWest News. Don Mills, Ont.: Jul 29, 2008. Retrieved from Pro Quest database on March 11, 2010

Edmonton buyers and sellers remain optimistic

Eva Wolicki — Sun, 11 Apr 2010 18:33:49 +0000

Edmonton, April 6, 2010: Housing figures released by the REALTORS® Association of Edmonton for March and the first quarter of 2010 show that resale housing prices are up; listings and sales are up.

“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Prices are up about 10% from a year ago and sellers are eager to take advantage. Buyers are aware of higher mortgage rates ahead and are getting into the market before the rates rise.”

Single family residences in the Edmonton area sold on average* for $388,473 in March which is up 4.7% from February and 11% from a year ago. Condominium prices rose by 8.4% month-over-month and 10.5% year-over-year. The average condominium sold for $252,416 in March. Duplex and rowhouse prices (at $313,836) dropped a third of a percent in March but were up 10.4% from a year ago. The average residential price was $343,607 (up month-over-month by 8.5%).

Sales also demonstrated the optimism of the marketplace. 3,728 residential listings in March were up over 30% from a year ago and up 246% in the first quarter. Residential sales of 1,571 properties in March were up 15.1% from a year ago and 77.3% in the first quarter. Sales were up from 1,307 in February: a 20.2% increase. The March sales-to-listing ratio was 42%; down from 52% in February.

“Seller activity has boosted the inventory to 6,770 residential properties,” said Westergard. “I am less concerned about available inventory now than I was at the beginning of the year. I think the market has reached a balance between buyers and sellers.”

All major banks raised their fixed mortgage rates in late March and the Bank of Canada has warned that interest rates will rise again after the second quarter. Many buyers are hurrying to lock in rates and find a home before the more stringent qualification requirements for mortgages come into effect on April 19. Alberta will not be influenced by the GST harmonization taking place in Ontario and BC so we may not see the sales slump in the second quarter that is expected in those two provinces.

The average days-on-market in March was 41 as compared to 47 in February.

Highlights of MLS® activity

March 2010 activity	Record for the month*	% change from March 2009
Total MLS® System sales this month	1,744	16.50%
Value of total MLS® System sales – month	$539 million	28.90%
Value of total MLS® System sales – year	$1.25 billion	24.10%
Residential¹ sales this month	1,571	15.10%
Residential average price	$343,607	11.70%
SFD² average selling price – month	$388,473	11.00%
SFD median³ selling price	$364,000	9.20%
Condo average selling price	$252,416	10.50%

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Supplied by the Edmonton Real Estate Board

Canada’s housing boom continues to outpace recovery in developed countries

Eva Wolicki — Tue, 30 Mar 2010 20:58:28 +0000

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

Banks bump up mortgage rates

Eva Wolicki — Tue, 30 Mar 2010 20:51:34 +0000

Other banks expected to follow suit

Mortgage rates have begun to rise from their record lows, with news that several Canadian banks are increasing several fixed mortgage rates by up to 6/10ths of a percentage point.

The biggest jump is attached to the popular five-year fixed closed rate, which moves from 5.25 per cent to 5.85 per cent at Royal Bank, TD Canada Trust, and Laurentian Bank. That’s the posted rate, which is routinely discounted by the big banks.

RBC’s new discounted rate for the five-year term also rises 6/10ths of a percentage point to 4.59 per cent. TD’s rises the same amount to 4.55 per cent. The discounted rate at Laurentian moves up to 4.54 per cent.

How much difference will that make? A $200,000 mortgage amortized over 25 years costs $1,051 a month at a rate of 3.99 per cent. At 4.59 per cent, that jumps $66 a month to $1,117.

The banks also raised their three-year and four-year fixed closed rates. The posted three-year rate at Royal Bank and Laurentian climbs one-fifth of a percentage point to 4.35 per cent, while the posted rate at TD jumps 4/10ths of a point to 4.70 per cent.

The posted four-year rate at all three banks jumps 4/10ths of a percentage point to 5.34 per cent.

Other banks are expected to follow suit. The new rates, effective Tuesday, represent the first hike in Canadian mortgage rates since last October. The posted five-year rate is now back to where it was for much of last summer.

New mortgage rules that go into effect next month require borrowers to qualify at the five-year rate, rather than the old three-year standard, even if they are applying for a variable rate mortgage.

Variable rates expected to rise soon

Variable mortgage rates, which rise in tandem with the Bank of Canada’s key overnight lending rate, are not affected by Monday’s announcement. But they are likely to be heading up soon too.

Bank of Canada governor Mark Carney warned last week that inflation was higher than expected. That had some market watchers forecasting that the central bank could move to raise its key lending rate as early as June. The possibility of an earlier rate hike sent bond yields up, and that appears to have prompted Monday’s mortgage increase. Fixed mortgage rates tend to move higher when long-term bond yields rise.

The key rate has been at a rock-bottom 0.25 per cent since April 2009 to help the economy recover.

A report out Monday from CIBC World Markets said rising rates shouldn’t be enough to derail the stock market rally — pointing out that the market is historically strong six months before and after rate increases.

A survey released last week by RBC found almost two-thirds of respondents expected the cost of servicing a mortgage to rise this year.

Stability in Edmonton Housing Market continues through February

Eva Wolicki — Mon, 08 Mar 2010 03:37:56 +0000

Edmonton, March 2, 2010: Prices for residential property sold through the Edmonton Multiple Listing Service® changed marginally through February. Sales activity, however, was up dramatically when compared to last month or the same month last year.

The average* single family dwelling price was $369,573 for February up just 1.4% from January; 5.6% from a year ago. Condominium prices dipped 3.8% in the month from $240,686 to $231,530. Duplex and rowhouse prices were up 3.3% to $315,390.

“While prices remained stable through February the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Listings also increased in February leading to a bigger month end inventory of homes and relaxing concerns that inventory may be too low to handle the spring buying season.”

In February, housing sales were up 33.9% compared to January with 1,184 residential sales. Total residential sales were also up 7.6% from last February. There were 2,505 residential listings added during the month resulting in a 47% sales-to-listing ratio and a month-end inventory of 5,449 homes. The average days-on-market was down 10 to just 47 days. Total sales through the Edmonton MLS® System (including residential, commercial and rural properties) in February were valued at $416 million (up 10.5% from last year).

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Westergard. “As usual, REALTORS® will be challenged to be a voice of reason in the real estate transaction and work to meet the needs of their eager clients without putting their financial health at risk.”

A new and improved MLS® System statistics package is available to consumers at ereb.com with year-to-year comparisons and expanded reporting of the condominium market and new sub-market reports. The public will also find median prices in addition to the typical average price statistics.

From the Edmonton Real Estate Board

Sell your home fast, and for top dollar

Eva Wolicki — Mon, 01 Mar 2010 19:42:01 +0000

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

Tighter Lending standards take effect April 19th

Eva Wolicki — Sun, 21 Feb 2010 17:48:03 +0000

Many Canadians will be forced to scale down their real estate ambitions under new mortgage rules that aim to both keep people from taking on too much debt and rein in speculators, all without knee-capping an industry that has been a major driver of the recovery.

The tighter standards come after months of debate about whether a bubble is forming in the housing market, and repeated urging by policymakers for borrowers and lenders to be prepared for higher interest rates.

The changes, announced by Finance Minister Jim Flaherty, are designed to keep Canadian consumers from becoming perilously overstretched, and deter speculators from buying houses solely as investments. Observers and industry players said the steps aren’t likely to smother the broad strength in the housing market, where eager buyers often armed with hefty mortgages have bid up prices sharply over much of the past year. The Finance Minister said he was unveiling the measures now, before the need for them becomes more urgent.

“There are no definitive signs of a housing bubble,” Flaherty told reporters in Ottawa. Nonetheless, “we’re being proactive,” he said, to “help prevent negative trends from developing.”

Starting April 19th, all new borrowers will have to meet standards for five-year, fixed-rate mortgages even if they’re seeking a shorter, variable-rate loan. Also, the government is lowering the maximum amount Canadians can withdraw when refinancing to 90% of the value of their homes, from the current 95%, and requiring a 20% down payment down payment for government-backed mortgage insurance on “speculative” investment properties.

Click here to read the full article in the Globe and Mail.

With tighter mortgage rules now on the books, the Bank of Canada no longer needs to contemplate rate hikes to specifically deal with an overheated housing market. That could give the central bank some wiggle room on how quickly and forcefully it needs to push borrowing costs higher.

Still, many analysts contend the central bank will have to start raising its key policy rate from “emergency” levels of 0.25% by the second half of the year as the economic recovery gathers pace.

To be sure, the record low rate – and a conditional pledge the bank made to keep it there until July – has helped stoke red-hot activity in the housing market.

But the central bank, in speeches over the past few months, appears to have succeeded in persuading policymakers on Parliament Hill to use regulations to nip a possible housing bubble in the bud.

Click here to read the full Financial Post article.

The Canadian Real Estate Association has proposed an overhaul of its rules in the wake of allegations by the federal competition watchdog that some of CREA’s practices are anti-competitive, according to internal documents obtained by the Financial Post.

The documents show the proposed amendments, which will be voted on March 22nd, will ultimately give consumers some ability to decide how much they use a realtor on a transaction and allow consumers to conduct parts of a transaction without using a realtor.

The Ottawa-based association will present the proposed modifications to its bylaws to the representatives of the 100 real estate boards that comprise its membership.

The rule revision comes after the federal Competition Bureau recently filed an application with the Competition Tribunal. The dispute centres around the Multiple Listing Service system, owned by CREA, that handles about 90% of the real estate transactions in Canada each year.

Click here to read the full Financial Post article.