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Ottawa’s residential housing market is weeks away from posting its best year on record in terms of unit sales and average price. Despite a slower than usual start to the year, more than 15,500 homes are expected to change hands by year-end, up 11 per cent from 2008 levels, and five per cent ahead of the previous benchmark set in 2007 (14,739). Housing values in the nation’s capital are also expected to climb, appreciating five per cent to $305,000 in 2009, up from $290,483 one year ago.

Job security and stable economic performance are the major factors influencing those considering homeownership, a decision enhanced by rock-bottom mortgage rates. While demand for housing has steadily increased throughout the year, supply has been an issue, with limited inventory reported in many hot pocket areas of the city. First-time buyers continue to represent the lion’s share of activity, driving sales of affordably priced product across the board. Townhomes, condominiums, and low rise apartment units are growing increasingly popular with this segment of the market due to price point. Revitalization in some of Ottawa’s older communities is gaining momentum as entry level buyers choose to invest a little sweat equity in their purchases. Neighbourhoods such as Mechanicsville and Preston St. are areas to watch, with housing values appreciating with every renovation completed.

Experienced purchasers are also taking advantage of ideal market conditions to move up and over to a larger home, better neighbourhood, or different housing type. Sales in the top end of the market—priced in excess of $750,000—have been steady, with the number of homes sold up moderately over 2008 figures. While real GDP growth is expected to fall for the first time in more than a decade in 2009, a solid rebound in the area of three per cent is forecast for 2010. New construction, including a new $21 million sporting event venue and training centre in Rockland, is expected to bolster economic performance in the New Year. Increased enrolment at Ottawa’s four post-secondary institutions has also prompted additional capital expenditures, including a new $112 million, 15-storey tower at the University of Ottawa, scheduled for completion in 2011; two new buildings at Carleton University; a construction trades centre at La Cité collégiale, opening in 2010; and a new $70 million construction trades centre at Algonquin College.

While the federal public service continues to provide a great degree of stability and security in Ottawa, there are concerns regarding continued layoffs within the high-tech sector. High-tech jobs have declined by about 14 per cent year-over-year. However, Ottawa’s employment rate is the highest of the 11 economic regions in the province. As such, unemployment levels in Ottawa, at just under six per cent, are relatively stable and expected to remain well under the close to nine per cent provincial average. Given a continuation of sound economic fundamentals in the New Year, Ottawa’s residential real estate market will stay the course. The number of homes sold by year-end is expected to match heated 2009 levels, while average price is expected to post further gains, rising four per cent to $317,500 in 2010. First-time and more experienced buyers are expected to work in tandem, driving activity at virtually all price points. Despite an increase in inventory in the Spring, seller’s market conditions should prevail throughout much of 2010. Low vacancy rates and volatility in the stock market may also spur some investment activity in 2010, as investors seek multi-unit residential property for a long-term hold.

Homes are getting pretty expensive. Im seeing singles pushing 500K in the East and West ends, and Towns pushing 300K.

why? Pent up demand, low inventory and cheap money.

So what happens to the 2nd larget demographic in Ottawa (25-30years old) in a handfull of years when the market is different?

Picture this: You go out, you buy a nice townhome for 270K, you have a child, a dog  – and you live your life.  Now mortgage rates go up (which they likely will), and if you are on a variable rate mortgage it could be a year – or a fixed , maybe a few years – 5 at most.

The past little while has not been a time of economic expansion for yourself, because you’ve been supporting this new family. So what happens when you have to re-negotiate your rate on a home that you were possibly both over-leveraged into and bought for a premium due to affordable rates?  Now you have an expensive home with an expensive loan. hmmm… HOUSE POOR.

Unfortunately, I think this is going to happen to many people.

Makes me happy for all those people I helped buy homes that seemed to be 15-20K under potential market value, and all the while they could have afforded MUCH more – these people will be alright.

What do I think the answer will be? Green Housing. Eco-friendly developments, and heavy government incentives.

I think people are going to need to move to (relatively) more affordable housing (via $$ incentives) that will present a lower carrying cost to offset the volatilty of mortgage rates over the life of the investment.

Incentives for either a green retrofit or new green builds will be a sensible bailout for Canadian homeowners that have overleveraged themselves during THESE times.

I would think that it might be a wise invesment to get into these kinds of homes by buying stock or even buying these homes pre-construction once plans are released.

New technology and architechtural advancements will combine to give Green living a huge appeal in a coutry like Canada – where the land is already are major source of enjoyment.

Cottage living, ice fishing, skiing, snowboarding, hunting, four wheeling, fishing, hiking, sight seeing – all things Canadians enjoy that come from the land.

The harmony between housing and environment has incredible potential – and my prediction is that we will see this relationship grow tremendously over the next 5 years.

Thoughts?

Postscript:

the LARGEST demographic – our parents (50-65 years old) will be looking for LIFESTYLE living solutions that run with the land. Waterfront retirement resorts or granny flats, functional housing backing onto golf courses and wetlands that will provide them with gorgeous views, opportunities to see wildlife and enjoy peaceful walks. These types of housing, being ECO-friendly, will also provide better air quality, more sunlight and perhaps even community gardens. I would PERSONALLY like to see housing for the elderly that not only do this, but also instead of offering RENT  – perhaps the buildings, resort or immediate community could be a corporation – like a condominum arrangment perhaps – where these people can continue to enjoy the benefits of Real Estate investment, while condo fees support staff and management.  Why pay the corporation when you can BE the corporation?

And if you like this blog, check out a few of my other entries:

https://ottawacapitalgroup.wordpress.com/2008/09/18/agricultural-innovation-out-of-necessity/

 https://ottawacapitalgroup.wordpress.com/wp-admin/post.php?action=edit&post=26

https://ottawacapitalgroup.wordpress.com/wp-admin/post.php?action=edit&post=59

Last time it was too canned from an exercise I had done. It didn’t read correctly and was a little scattered.

I took some stuff out, added a little, and re-organized. It definitely reflect the person I am much better. Here goes.

PERSONAL MISSION STATEMENT

My life’s journey is to establish my family as one that is secured, healthy, wealthy, strong and happy.

I will be a person who believed in something bigger than himself, that there was a purpose behind every day of his life and he never lost sight of it. One who devoted all his time and effort to the betterment of his loved ones and raised the bar for the standards in ethic, passion, determination and drive.

I believe that love, passion and caring are to be guiding forces in life.

I am at my best when I am using my unique skills and traits to help others.

I can do anything I set my mind to.

I will lead by example.

I will find opportunities to use my natural talents and gifts.

I will enjoy my work by finding opportunities where I can help people solve problems.

I will find enjoyment in my personal life by providing security, freedom and pleasure.

I will surround myself with family, and a handful of good friends who share my values.

I will stop procrastinating and start working on:

• Realizing my potential.
• Continuously improve my production capacity and set objectives for production.
• Follow through with action steps – implement the knowledge I have gained.

I will strive to incorporate the following attributes into my life:

• Being the only driver in my life. I choose where, when and how
• Dedicated and devoted to my personal mission
• Becoming a true pioneer, an entrepreneur, and a role model

I will constantly renew myself by focusing on the four dimensions of my life:

• Being physically strong and conditioned.
• Personal Values and Principles that guide the person that I am.
• Focus and Unbreakable Ethic. Determination.
• Living with Passion

What’s in your attic? Usually when I have to stick my head up through an attic hatch to inspect the space, I feel a sense of dread. It’s like I’m in a horror movie and there are monsters in the attic. It’s easy to see warning signs of attic problems without going up there — ice dams, roof damage, water dripping from soffit vents, ceiling stains. But just like the guy in the horror movie, I still have to look inside, even though a voice inside my head is saying “Don’t go in there!”

What’s in your attic? If I looked in there, I hope I’d find insulation. I hope there’d be enough vents. I hope I wouldn’t find: mould, wet insulation, dirty insulation, vermiculite insulation and/or no insulation, animal or bird droppings, blocked or non-existent vents, or kitchen and bathroom exhaust fans venting into the attic. But believe me, I’ve found them all.

Of the many problems you can find in an attic, most are caused by inadequate insulation, insufficient ventilation and air movement — and the last one is the most damaging.

You have to have enough insulation in your attic. You really can’t have too much unless you’ve put in so much that you are actually touching the underside of the roof or blocking the venting. Insulation is necessary to prevent or slow the transfer of heat from one area of the house to another — like from your living room into your attic and out the roof. You can use a number of different materials like fibreglass, blown-in cellulose, spray foam, rigid foam, batt insulation, even recycled blue jeans. Insulation will help reduce heat loss, and improve the energy efficiency of your home.

Your attic also must be ventilated. If it isn’t, any moisture or water vapour that is present in the space can lead to serious problems, like mould or rot. A lot of moisture from everyday living — from showers, laundry, doing the dishes — will rise into the attic along with the warm air by which it’s carried. Once there, condensation will occur.

Condensation can soak your attic insulation, destroying its effectiveness. In winter, the warm, moist air sneaks into the attic, where it’s cold or freezing, and frost forms on the underside of the roof. Sometimes homeowners have what they think is a leak in the roof, because there’s moisture or staining on the ceiling of the room below. There may be mould on the underside of the roof sheathing, rafters, or trusses. The plywood sheathing may rot out altogether in time.

You definitely need roof vents — either soffit vents (make sure they aren’t covered by insulation), a ridge vent, or a turbo vent. All vents should have screens to prevent wildlife from getting inside. Check with a professional roofer for how many vents you need, given your roof’s size.

Roof vents move hundreds of cubic feet of hot air and moisture out of the attic.

But, if you do have condensation problems in the attic, increasing ventilation by adding more vents might not be the answer. Too much venting will suck even more warm, moist air out of your living space and into your attic where not only are you wasting heat, you are creating more condensation.

The most important thing to do to prevent attic problems is to properly seal the attic and prevent air movement between the warm and cold zones of your house. If you prevent the warm, moist air from flowing into the attic where it will inevitably condense, you likely won’t see problems with moisture and mould.

Air leakage is the cause of ice dams — one of the biggest problems I see with roofs in the winter months. When the temperature outside is below freezing, the top surface of your roof is cold (as it should be) and snow that falls stays on the roof.

But if warm air leaks into your attic, it will melt the snow from the underside. That creates a runoff that will refreeze further down the roof close to the eaves. This melting and refreezing will eventually build up to an ice dam, which can create a lot of damage as melted snow and ice find their way up behind the roof shingles, into your attic and possibly into your living space.

 

Original Source:  http://homes.winnipegfreepress.com/index.php?action=news&step=article&id=1106

September 22, 2009 Niagara Fallsview Casino Resort, Niagara Falls, Ontario – Toronto’s popular high rise builder Tridel, captured top honours when it was named 2009 Ontario Home Builder of the Year by the Ontario Home Builders’ Association. The award highlights the home building company that sets the standard for the rest of the industry through its leadership in improving the overall image of the industry. The award is presented to the company that demonstrates the highest levels of performance based on surveys from home buyers along with stringent judging criteria in the areas of sales and marketing excellence, unique floor plan design, community service, support of the industry and its ability to adapt to changing needs. Ontario Home Builder of the Year is among 29 categories in the OHBA Awards of Distinction program which honours innovation and excellence in the areas of design and sales and marketing.

 The 2009 Ontario GREEN Builder of the Year was presented to Durham Custom Homes of Oshawa who clearly demonstrated that it is possible to take an enthusiastic environmental approach and apply it to all facets of their company. Judges of this highly sought after award included representatives from Canada Mortgage and Housing Corporation, Tarion Warranty Corporation, the Consumers’ Association and the Ministry of Municipal Affairs and Housing, as well as Ontario’s former Chief Energy Conservation Officer, Peter Love .

The following companies took home first place awards in 2009:

ARCHITECTURAL DESIGN:

Most Outstanding Production Built Home – 1 storey up to 1900 sqft.: Geerstma Homes Ltd., for Grandview Estates – “The Grandhaven”, Quinte West

Most Outstanding Production Built Home – two storey up to 2500 sqft.: Brookfield Homes, for The Village –“Hillebrand with Optional Loft”, Niagara-on-the-Lake (credit to: Viljoen Architect)

Most Outstanding Production Built Home – two storey 2500 sqft. and over: Reid’s Heritage Homes, for The Residences of Cobble Beach – “The Winthrop”, Owen Sound

Most Outstanding Custom Home – under 2500 sqft.: Oke Woodsmith Building Systems, for “Finch”, Lambton Shores

Most Outstanding Custom Home – 2500 – 5000 sqft.: Christopher Simmonds Architect Inc., for “Arbour Court”, Gloucester (credit to: Lorenzo and Emily Nicolini)

Most Outstanding Custom Home – 5000 sqft. and over: Teddington Homes, for “134 Riverview”, Toronto (credit to: Ray Murakami – Architect; Anne Johnston – Interior Designer; Reza Hosseinian – Builder)

Most Outstanding Attached Multi-Unit Home – semi/town home/stacked: Christoper Simmonds Architect Inc., for “95 Riverdale”, Ottawa (credit to: Guy Robinette)

Most Outstanding High Rise Building: Amexon Development Corporation, for South Beach Condos + Lofts, Phase One, Toronto (credit to: II by IV Design Associates, Arsenault Architects)

Most Outstanding High Rise Condo Suite: Aspen Ridge Homes, for Scenic on Eglinton – “Suite J” , Toronto (credit to: Page + Steele Architects)

Most Outstanding Home Renovation: Oke Woodsmith Building Systems, for “Arnold Crescent”, Bluewater

ROOM DESIGN:

Most Outstanding Kitchen: Christopher Simmons Architect Inc., for “Kenwood Residence”, Ottawa (credit to: BCR Woodworking)

Most Outstanding Bathroom: Landmart Homes, for Bel Air- “The Clara”, Ancaster (credit to: Hampton Kitchens, Ruth O”Neil Inc, McConnell Plumbing & Heating))

COMPANY IMAGE & ADVERSTING:

Best Internet Website: Amicone, for Bob Lo – http://www.boblo.ca (credit to: Gerry Ryan. G. Ryan Design)

Best TV or On-site Video/Digital Presentation: TAS DesignBuild, for Giraffe Condominiums, Toronto (credit to: Zerofractal Studio)

Best High Rise Ad Campaign: Monarch Corporation., for Couture, The Condominium, Toronto (credit to: The Brand Factory Advertising & Design)

Best Low Rise Ad Campaign: Branthaven Homes, for BeachHouse, Burlington

Best Project Logo Branding: Bazis International, for Emerald Park, Toronto (credit to: Gerry Ryan, G. Ryan Design.)

Best Project Sales Brochure – Low Rise: Branthaven Homes, for BeachHouse, Burlington

Best Project Sales Brochure – High Rise: Empire Communities, for Fly Condos, Toronto (credit to: Montana Steele Advertising)

ON-SITE SALES PRESENTATION :

Best new Home Sales Office – under 1500 sqft: Devonleigh Homes Inc., for Brownley Meadows, Angus (credit to: Lawlor & Company)

Best new Home Sales Office – 1500 sqft and over: Lanterra Developments, for ICE Condominiums at York Centre, Toronto (credit to: Munge Leung Design Associates, Montana Steele Advertising)

Best Design Centre Remington Homes, for The Design Studio by Remington, Markham (credit to: Watt International Inc. Andrew Gallici)

Best Interior Decorating – Model Home/Suite – under 2000 sqft.: Amexon, for South Beach Condos + Lofts, Phase One – “The Delano”, Toronto (credit to: II by IV Design Associates, project3sixty.ca, Euroline Appliances)

Best Interior Decorating – Model Home/Suite – 2000 sqft. and over: HUSH, for Estates of Olde Meadowvale Village – “Reading”, Mississauga (credit to: In2ition Design Division, In2ition Marketing Insights)

PRESTIGE AWARDS:

2009 Product of the Year – non builder: EnerQuality Corporation, for GreenHouse™ Certified Construction, Toronto

Project of the Year – Low Rise: Brookfield Homes, for The Village, Niagara-on-the-Lake (credit to: Duany, Plater-Zyberk & Company, The MBTW Group, and Watchorn Architect Inc.)

Project of the Year – High Rise: Aspen Ridge Homes, for Scenic on Eglinton, Toronto (credit to: Page + Steele Architects, Mike Niven Interior Design, the Brand Factory)

2009 Ontario GREEN Builder of the Year Durham Custom Homes, Oshawa

2009 Ontario Home Builder of the Year: Tridel, Toronto

It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher. Now, the cost of mortgages is coming down. If you’re buying a home or renewing a mortgage, it’s time to review your options. Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it’s possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.

Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.

“Variable-rate mortgages are all over the map right now,” said Gary Siegle, regional manager with the mortgage brokerage firm Invis Inc. in Calgary. “We’re seeing them right in the area of prime with some lenders.”

An example of a variable-rate mortgage at prime: ResMor Trust, a small player that deals through mortgage brokers, is offering four-year variable-rate mortgages at prime in all provinces except Quebec. The catch: You have to have your mortgage approved by Sept. 30 and close the purchase within 45 days.

Can variable-rate mortgages fall back to their pre-crisis lows any time soon?

“Definitely, 100 per cent, no,” said Robert McLister, a mortgage broker and author of the Canadian Mortgage Trends blog (canadianmortgagetrends.com). “Could they get a little below prime? Definitely.”

Okay, it’s strategy time. With prime at 2.25 per cent and fully discounted five-year fixed-rate mortgages going for something in the area of 3.9 to 4.1 per cent, you’re got some thinking to do if you’re buying a home or renewing a mortgage.

The variable rate looks tempting. Sure, the prime is going to rise in the medium term, but it’s expected to stay put until next spring at least. Even when prime does move higher, it will have to increase by roughly 1.75 percentage points to get to where today’s five-year mortgages are.

“The risk is obviously that rates go up a lot more,” Mr. McLister warned. “Rates went down four percentage points from December, 2007, through April, 2009. They could easily go up four – why not?”

Variable-rate mortgages allow you to lock into a fixed-rate mortgage, so there’s no reason why you have to ride interest rates all the way up. Still, you have to recognize that fixed-rate mortgages could be significantly more expensive by the time you decide to lock in.

An academic study of rates between 1950 and 2007 found variable-rate mortgages were the money-saving choice over five-year fixed-rate mortgages 89 per cent of the time. If you’re willing to ride rates higher for a while in hopes of longer-term savings on interest costs, then consider a possible approach suggested by Mr. McLister.

Instead of arranging a variable-rate mortgage now, go for a one-year fixed-rate mortgage. Then, when you’re renewing in one year’s time, you’ll move into a variable-rate mortgage that will ideally have a rate that is discounted below prime.

Fully discounted one-year closed mortgages today go for about 2.55 per cent, so you’re not paying much of a penalty at all compared with what variable-rate mortgages are pegged at right now.

Another suggestion from Mr. McLister is to consider a three-year mortgage, which offers an attractive blend of low rates and security against interest rate surges. Three-year mortgage typically go for around 3.39 per cent on a fully discounted basis, but he knew of one small lender offering 2.9 per cent through the mortgage broker channel.

The case for going with a five-year fixed rate is that rates are very cheap by historical standards. Rates were a little bit lower last spring, but they’re not as high as they were a month or two ago thanks to a pullback in bond yields that has trickled down to fixed-rate mortgages.

Mr. Siegle said over half of his firm’s clients are locking into a fixed-rate mortgage right now. “You can’t ever time the bottom of the market, but are these good rates that you can be comfortable with? A lot of people are saying, ‘yeah, they are.’ ”

Source: http://v1.theglobeandmail.com/servlet/story/LAC.20090915.RCARRICK15ART1924/TPStory/TPBusiness/#

One of the most useful qualities a great Realtor can have is being RESOURCEFUL. That being said – here is one of my greatest resources : The Real Estate Residential Newsletter. If you are a Realtor and you are reading this – you’re welcome! If you are a regular civilian like I suspect ( 😀 ) then you will find this little gem very handy when trying to figure out how you’re life is fitting into this big Real Estate game. Make no mistake – you are involved, whether you realize it or not.

Here it is!

http://www.renx.ca/Residential/index.html 

Happy Learning!

When I look at the recent news images of the houses hit by tornadoes – roofs torn off, framing joists and trusses scattered like toothpicks across backyards – I have to ask myself: Why aren’t we building better? Why aren’t we building houses that will withstand severe weather, protect the families who live in them, and last?

You’ve heard of the three little pigs, who built houses out of sticks. The big bad wolf had no trouble blowing those houses down. But he couldn’t beat the brick house. (And we’re talking a solid brick house, not a stick-framed house with a brick facade, by the way.)

I get it that a F5 tornado is powerful enough to tear up pretty much everything in its direct path. But F5s are rare. And a properly built house should withstand a smaller tornado like the more common F1 or F2, which is what struck last week north of Toronto.

I think it’s possible to design and build a tornado-resistant house. Construction built to seismic code is common in areas prone to earthquakes. I’ve built a house in Los Angeles that complied with it. These buildings are designed based on many years of experience in seismic areas. So, why isn’t it done in areas prone to tornadoes?

If you live in tornado alley in the U.S., or even in Canada – we get an average of 80 tornadoes every year, believe it or not – you need to build smarter.

Basically, a tornado is wind blowing in a cyclonic direction, and that wind exerts an upward force that lifts up whatever it encounters. The path of a tornado is unpredictable – it can move fast and erratically – but the type of force it exerts on a building is not. Neither is the kind of damage it will do. The upward force tears off roofs or floors, or lifts the house off its foundation. That’s why mobile homes are so vulnerable – they are tossed around like toys.

The force of the wind will find the weak points in the house’s construction. The roof flies off – or even the entire floor – taking the homeowners with it. Or, the roof is torn off, and the exterior supporting walls collapse because they are now more vulnerable to lateral wind loads.

But where a house is bolted down to its foundation, and the roof is properly anchored to the walls, it might be damaged but it won’t be destroyed. If the same anchorage that’s used in seismic zones were mandatory in tornado zones, a house could survive an F2 with minimal damage.

And it wouldn’t cost much. What’s the cost of a few anchors and bolts and ties? Of glue and screws, instead of nails? I guess builders play the odds; the likelihood that your home will ever be hit by a tornado is very small, so they don’t factor that possibility in when they are designing and constructing homes. Especially when that would be building above code.

I’d love to design and build a house that would piss off a tornado. I wouldn’t build it out of straw or sticks. I’d build it out of bricks or concrete – designed low to the ground. And I’d anchor it and do it above National Building Code standards.

You think of heavy rain when you think of hurricanes, but most of the damage is caused by wind. So, the exterior envelope of the house needs to be built to withstand 200 km/h winds. That’s not that hard to do, believe it or not. Choosing the right building materials, and assembling them properly will make all the difference. Don’t just nail sheathing to the frame – glue and screw it and you’ll increase the strength and wind resistance dramatically.

Hurricane ties are required by code in areas hit by hurricanes in the U.S. (though I’d bet they aren’t in the Atlantic provinces, where they are often hit by tropical storms), but they won’t do the trick alone. You’ve got to use them as part of a properly designed wall assembly. The whole wall structure has to be tied together – from the roof and top plate through to the sill plate, all the way down to the foundation.

Keep your home from being blown away by the big bad wolf.

In my experience rebuilding after Hurricane Katrina, I was shocked to find most of the houses that were destroyed weren’t on footings, they were just sitting on grade, or on concrete blocks. Why is that? It doesn’t make sense. A house is not a boat, it’s not supposed to float. Anchor it. Secure it to the ground so it doesn’t float away in a flood.

And, why wouldn’t you elevate the structure above the flood zone to protect both the residents and their belongings? And while you’re at it, build with materials that can get wet and will dry out – without moulding – after the storm passes.

What about building a house that won’t burn down? When I was in L.A. a couple of years ago, I could see the wildfires spreading along the horizon, taking street after street of homes. You’ve seen the news footage in the aftermath of these fires. What’s left standing? Chimneys, the concrete, brick and stone structures. So why aren’t they building houses from concrete? Yes, the furnishings could burn, but the basic house structure will still stand. And, since concrete is non-combustible, it’s not going to allow the flames to easily spread from house to house.

So why aren’t we building geographically or regionally appropriate houses?

I think that smart building of the future will take into account regional climate and geography. Houses need to be built sustainably, and in a design appropriate to local conditions.

Thoughts?

Original Source: http://www.nationalpost.com/story.html?id=1936618