OTTAWA – February 15, 2012 –

Highlights:

• Home sales were down 4.5% from December to January.
• Actual (not seasonally adjusted) activity came in 4.0% above levels in January 2011, and stood even with the 5 and 10 year averages for January sales.
• The number of newly listed homes edged down 1.4% from December to January.
• With sales down by more than new listings, the national market shifted further into balanced territory.
• The national average home price was up less than 2% year-over-year in January, ranking it among the smallest increases of the past year.

Sales activity recorded through the MLS® Systems of real estate Boards and Associations in Canada fell 4.5 per cent from December 2011 to January 2012. This marks the first monthly decline in national activity since August 2011 and the biggest monthly decline since July 2010. The monthly decline reversed a string of monthly increases over the closing months of last year, and returned national activity to where it stood at the end of the third quarter of 2011.

“The national housing market is stabilizing and remains well balanced,” said Gary Morse, CREA’s President. “That said, forecasts for economic and job growth going forward vary widely for different parts of the country, suggesting a possible continuation of a softening trend in some markets, as well as the potential that demand will pick up based on strong fundamentals in others. All real estate is local, so talk to your local REALTOR® to understand how price trends in your neighbourhood are shaping up.”

Activity was down in over half of all local markets in January from the previous month. Led by declines in Greater Toronto and Montréal, demand also softened in a number of other major urban centres including the Fraser Valley, Calgary, Edmonton, Winnipeg, Ottawa, and Greater Vancouver.

Actual (not seasonally adjusted) national sales activity was up four per cent from year-ago levels in January, the smallest year-over-year increase since last May. As was the case in a number of months last year, actual sales in January 2012 stood close to the five and ten year average for the month.

The number of newly listed homes edged down 1.4 per cent on a month-over-month basis in January following a 2.9 per cent increase in December. The monthly decline in new supply reflects a drop in new listings in a number of Canada’s largest urban centres, which offset a jump in new listings in Vancouver.

Sales fell in January shifting the national market back towards the mid-point of balanced territory and reversing the recent trend which had seen the market becoming tighter over the final four months of 2011. The national sales-to-new listings ratio, a measure of market balance, stood at 53.8 per cent in January, down from 55.5 per cent in December and 55.4 per cent in November.

Based on a sales-to-new listings ratio of between 40 to 60 per cent, 60 per cent of local markets were balanced in January. Compared to December, there were fewer buyers’ and sellers’ markets, and a greater number of balanced markets.

The number of months of inventory stood at six months at the end of January on a national basis, up from 5.7 months in December 2011 and returning it to where it stood in October 2011. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand.

The actual (not seasonally adjusted) national average price for homes sold in January 2012 was $348,178, representing an increase of 1.2 per cent from its year-ago level. This ranks among the smallest increases since late 2010.

On a seasonally adjusted basis, the national average home price rose 1.6 per cent on a month-over-month basis, marking a rebound from a decline of similar magnitude in December. This pattern mirrors the one playing out in the newly-launched MLS® Home Price Index (HPI), published on February 6.

“Year-over-year comparisons in the national average price are expected to become volatile and may turn negative, reflecting average price developments in the first half of 2011 in Vancouver,” said Gregory Klump, CREA’s Chief Economist. “At that time, high-end home sales in Vancouver’s priciest neighbourhoods surged to all-time record levels, which skewed the national average price upward considerably. A replay of this phenomenon is not expected this year. As a result, comparisons for national average price to year-ago levels over the coming months will reflect an upwardly skewed base effect. For this reason, year-over-year comparisons should be kept in perspective. Developments in the MLS® HPI will provide important guidance on price trends, since it is not affected by the problem of compositional shifts in the mix of sales activity.”

The MLS® HPI also takes into account the contributions toward the price of a home made by a broad range of quantitative and qualitative housing features, allowing it to track Canadian home price trends better than any other measure.

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas.

Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

A home inspection consists of a visual inspection of your homes major components and fixtures.  The home inspector will operate fixtures and make a note of any deficiencies.  This will all be included in a report detailing all problems found.

Your home inspection report, prepared by the Barrie Home Inspector will include a review of your heating system, electrical system, air conditioner, interior plumbing, roof, attic visible insulation, basement, foundation and any visible structure.  The inspection will also include Free Thermal Imaging scan of home.

When scheduling the home inspection it is recommended you attend the whole home inspection when possible.  This is a good opportunity to learn where all the shut offs are for furnace, hot water tank, main water shut off, electrical shut, fireplace shut off, and the main water shut  off for the home.  You can take this opportunity to ask questions and you will be shown any deficiencies at the time the inspector finds them, giving you a great opportunity to learn fully about the cause and effect of the deficiency.

A picture is worth a thousand words.  This is why we go over your report in a slide show at the end of the inspection.  We also put your report online in a fully descriptive format which gives you a picture of every defect and a brief description of problem and a recommendation on how to fix or deal with the deficiency.

Barrie Home Inspections offers a 100% Money Back Guarantee on every residential and commercial building inspection.  They also offer Free Thermal Imaging scans with every inspection.  As a Certified Building Code Official and a former Registered Builder with Hudac his experience far exceeds that of the competition.  With over 4,000 building inspections the Barrie Home inspector should be your first choice when wanting to protect your investment.

Direct venting of plumbing fixtures is permitted if a plumbing fixture is close enough (eight feet or less) to the main waste stack pipe (vent), the fixture does not usually require its own plumbing vent piping, and it is considered a direct-vented plumbing fixture.

Wet venting is using a drain from another fixture to supply adequate venting to another fixture, usually a toilet.  The theory for wet venting is that the flow in the wet vent portion of the piping will be low because there will only be one occupant in the bathroom and only one fixture being used.

Plumbing smells or noises can be caused by improperly installed drains and vents.  There a many cases where improper glue and venting has resulted in sewer gas entering an unsuspecting homeowners property.  Improper use of glue, loose connections and vents not vented to exterior can all be attributed to work being performed by un-licensed workers.  Always used a trained a licensed plumber when renovating or repairing your homes plumbing system.

There are many different types of choices when it comes to plumbing your home. For water supply, there is PVC, CPVC. PEX, Galvanized Pipe, and copper. Copper and CPVC are the most popular. CPVC is the easiest to install. CPVC tubing is ideal for water supply lines. It’s easy to cut and assemble, using compression of cemented fittings. It’s durable too. Harsh water won’t harm the material, unlike copper, which will erode from acidic water.

That "blub blub" or "glug glug" noise you hear from a building drain might mean that there is a problem with the drain system itself, such as a partial drain blockage, a drain venting problem, a drain odor problem, or even a failing septic system.  If a gurgling sound is heard at a sink or shower drain only when a nearby toilet is flushed, or at a sink or shower when a nearby tub is draining, we’d suspect that the building drain-vent system is inadequate.

While recognizing that the outlook for the global economy had deteriorated and that uncertainty had increased since it released its October Monetary Policy Report (MPR), the Bank also made those same observations at its previous meeting on December 6^th.

Economic growth in Canada had more momentum in the second half of 2011 than the Bank projected in its October MPR, but it expects the pace going forward to slow by more modest than previously expected, due largely to factors outside Canadian borders. This reiterates statements made in December 2011. On the upside, the Bank said that “very favourable financing conditions are expected to buttress consumer spending and housing activity.”

The Bank releases its updated forecast for Canadian economic growth. It now estimates that the economy grew by 2.4 per cent in 2011 compared to the initial estimate of 2.1 per cent, owing to the better than expected end to the year.

The Bank projects growth of 2.0 per cent in 2012 compared to 1.9 per cent in the October MPR, and 2.8 per cent in 2013, down slightly from the previous 2013 forecast of 2.9 per cent, with the big picture being that past and current growth estimates have been revised upward at the expense of future economic growth.

“The Bank said it expects the pace of growth going forward to moderate by more than initially thought, but the forecast for growth this year has actually been raised slightly,” said CREA Chief Economist Gregory Klump. “That reflects a weaker than previously expected growth profile for the first half of 2012, followed by an acceleration in the second half of the year.”

“The Bank reiterated that its outlook remains subject to downside risks from the sovereign debt issue in Europe. Recent credit-rating downgrades to much of the euro zone point to potential contagion by way of a drop in financial market liquidity,” he added. “The bottom line is that the Bank rate is not going to be going up anytime soon, and we may see rates lowered should downside risks materialize.”

The Bank noted that “while the economy appears to be operating with less slack than previously assumed, it is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.” Overall, inflation expectations remain “well-anchored.”

A number of financial institutions have recently dropped their five-year lending rates to a record low of 2.99 per cent. This is down considerably from the advertised five-year rate of 5.29 per cent when the Bank last met on December 6^th, 2011.

The Bank will make its next scheduled rate announcement on March 8^th, 2012.

http://creastats.crea.ca/natl/interest_rate_trends.htm