Barrie Home Inspector

Home Maintenance and Tips for Home Owners

Tag: properties

Real Estate Market in Innisfil

Real Estate

Real Estate Market in Innisfil.  Today’s market for buying and selling homes if very competitive and you will want to ensure you have picked the best possible real estate agent to represent you. Here are some tips we have gleaned from some professionals.

Does your professional Realtor provide a staging service for his or her listings, many do in this competitive market. What information did your agent bring to your home prior to listing? How many agents are in his office, how many listings does he currently have? There are many people who are doing “on the job training” make your agent isn’t one of them.

How is your Realtor intending to market your home. What type of ads and how many open houses will they be having. It is always better to have an understanding on how the process will take place prior to listing, then there is no confusion.

When listing your home ensure you are using the current market conditions and not a two year old appraisal that does not reflect the current market prices. Mortgages rates are low and vacancy rates are declining which is good news for investors and sellers of properties.

Many people try and save money by utilizing the same Realtor and will even use a Home Inspector recommended by the Realtor. This saving can have dire consequences when you don’t have someone whose only duty is too look after your interests. Pay for the services of a professional and they will ensure your interests come first and foremost.

When buying a “used” home or property it is very important to ensure all work was done by qualified trades persons and all permits were taken out. Patio’s and decks are often erected illegally without using the proper building techniques or materials. You could end up paying to remove structure and erecting a new one if your local building authority inspects your property.

Buying Older or Century Homes

Home Inspection

Buying Older or Century Homes.  When buying an older home you are usually buying a home with built in character which has withstood the test of time and is still in habitable condition.  There are some inherent problems that you might encounter when purchasing an older home.  I have listed a few basic ones just for consideration.

Rock and Cement FoundationYour older homes foundation is probably constructed of cement and stone.  There would have been no waterproofing done to the exterior of the foundation and there will be no weeping tile draining into sump.  This inspection area is one of the most important and expensive to repair if faulty.

Knob and tube wiring was usually installed in all older homes and there is usually still porcelain insulators present even if it was all removed.  You have to have a home inspector or electrician check to ensure all the knob and tube wiring was replaced.  The knob and tube was usually replaced with older two wire which has no ground and unless a total rehab was done on building you will still find two wire at outlets on upper floors and other hard to access areas.

Asbestos and vermiculite can be found in many older homes.  Some older homes had hot water boilers with cast iron radiators.  This systems were typically insulated with asbestos insulation.  Vermiculite insulation may contain asbestos and was frequently added to attics in older homes.  Asbestos requires professional removal which is very expensive.

Lead plumbing pipes and galvanized plumbing lines can be very expensive to replace and were used on most older homes.  Most insurance companies in Ontario will not insure a home with galvanized plumbing pipes.  Galvanized pipes tend to corrode from the inside out so that there is no warning that a pipe is about to burst.

Older homes may have many layers of lead paint which has built up over the years.  Lead-based paint is a major source of lead poisoning for children and can also affect adults. In children, lead poisoning can cause irreversible brain damage and can impair mental functioning. It can retard mental and physical development and reduce attention span. It can also retard fetal development even at extremely low levels of lead.  Thus, young children, fetuses, infants, and adults with high blood pressure are the most vulnerable to the effects of lead.

Cast Iron RadiatorsYour house is old and gorgeous, as are those wonderfully ornate cast-iron radiators, but these days, energy prices are anything but old-fashioned. Older homes have radiators sized for a time when open-window ventilation was popular and insulation was uncommon. If you’ve insulated and updated your windows, your radiators are most likely larger than they need to be.  You should have your home assessed by a heating expert to evaluate the expense and available options if required to upgrade your heating system.  Many people are using GEOthermal heat pump systems when they are in the country and have no real alternative fuel source.  Oil and propane are available for people who have no access to natural gas but can be very expensive,  especially in older homes that may be lacking in  insulation and thermal protection.

Many older homes with boilers also had asbestos insulation on both the boiler and the piping.  Even boilers which may have fiberglass insulation on pipes may still have asbestos on elbow joints.  Ensure your potential home is asbestos free prior to purchasing.  Depending on the amount of asbestos in the home the cost of removal can be disastrous to your renovation budget.

 

The Barrie Home Inspector has many years of experience in inspecting Century Homes and is also a Certified Building Code Official with the Ontario Building Officials Association.  Commercial Building inspections also entail the same problems as residential and buyers have to be aware of the risks and hazards involved in purchasing older properties.  Visit the Barrie Home Inspector’s site a www.barriehomeinspector.com to obtain more information and advice when dealing with older homes.

Concrete – Supporting Your Home

Basements, Exterior

Concrete – Supporting Your Home. The word concrete comes from the Latin word “concretus” (meaning compact or condensed), the perfect passive participle of “concrescere”, from “con-” (together) and “crescere” (to grow).  Most information available about concrete is written for contractors, for those who design concrete mixes, and for those who perform invasive testing.

In evaluating concrete problems, one of the important decisions home inspectors must make is determining whether a problem is the result of conditions that have stabilized with a low chance of continuing future problems, or whether the conditions that caused the problem are such that there is a high probability that problems will continue or worsen.

Different factors can affect concrete and the problems that inspectors will see.  How concrete hardens, strengthens and the qualities of its surface depend on a number of things, including the properties of its constituent materials.  Although Portland cement is the most commonly used binder, pozzolans may be substituted. Pozzolans are materials that, in addition to undergoing primary hydration, undergo a secondary hydration, producing a gel that fills tiny voids between cement particles, making concrete less porous and less likely to absorb moisture or chemical solutions that can damage concrete or steel reinforcement.

The constituent materials which are included in the mix, their proportions, the order in which they are combined, the length of time and method by which they are mixed, and the length of time between mixing to placing all affect the quality of concrete. With each decision and operation, there is a chance that mistakes will be made. The environmental conditions that exist during placing, finishing and curing concrete will have an effect on how it develops. The ground and air temperatures, wind speed, cloud cover, and the absorbent qualities of the substrate will affect newly placed concrete.

When initially mixed together, Portland cement and water rapidly form a gel, formed of tangled chains of interlocking crystals. These continue to react over time, with the initially fluid gel often aiding in placement by improving workability. As the concrete sets, the chains of crystals join and form a rigid structure, gluing the aggregate particles in place. During curing, more of the cement reacts with the residual water (hydration).  This curing process develops physical and chemical properties. Among these qualities are mechanical strength, low moisture permeability and chemical and volumetric stability.

Cracks that appear before the concrete has hardened are called plastic cracks.  Plastic cracks are typically due to poor mix design, placement practices or curing methods, and may also be caused by settlement, construction movement, and excessively high rates of evaporation. Cracks that appear after concrete has hardened can have a variety of causes, and sometimes have more than one cause.

Plastic shrinkage is shrinkage caused by the loss of water to the atmosphere. Autogenous shrinkage is shrinkage that takes place with no loss of water to the atmosphere.  Autogenous shrinkage is caused by internal drying, with water being absorbed by the constituent materials in the concrete.  As the long-term chemical hydration process continues – and it can continue for many years — water in the pores within the cement paste is absorbed, and the pores are filled, to some degree, by materials produced during hydration. This process leads to decreased permeability and increased strength and durability of the cement paste. Absorption of water from the pores also causes shrinkage.

When purchasing a new property it is important to have the building inspected by a qualified residential or commercial inspector.  Trust the Barrie Home Inspector for your Residential or Commercial Inspections.  Visit www.guaranteedresidentialinspections.com for more information. As a Certified Building Code Official with over 4,000 inspections your investment will be in good hands.  Experience and knowledge can help protect your investment.

Upgrades to REALTOR.ca

Real Estate

Ottawa, ON – December 1, 2011 – Earlier this week, a new version of REALTOR.ca was released. This version introduces exciting new features and tools that allow users to customize REALTOR.ca to find what they’re looking faster and easier.

Collapsible panels on the map search page for customized views (Red arrow #1)

  • The map search page is currently divided into three panels with the search criteria on the left, the interactive map in the middle and the property thumbnail list on the right.
  • Users can now collapse either the criteria panel or the thumbnail panel to have a larger image of the map, allowing much greater flexibility in customizing their view of REALTOR.ca

Draw an area – Custom map search tool (Polygon Map Tool – BETA format) (Red arrow #2)

  • Using their mouse, users can now draw free form shapes on the map to more accurately define the location criteria for their search.
  • Users will be able to map a specific neighbourhood or region and use that as their location criteria to find properties that are located within the defined area.
  • The map tool is being released in BETA format as we continue to fine-tune its capabilities.
  • Please note – we are continuing to improve functionality and enhancing the user experience.

Auto-sizing to fit high resolution (HD) monitors

  • Currently REALTOR.ca’s display area is a fixed size on every monitor. The new version will automatically re-size itself to eliminate the white space now seen on high resolution (HD) monitors.

Social media links

  • REALTORS® and Offices now have the ability to display links to their Facebook, Twitter and LinkedIn pages.

Buying Older Home – Typical Problems

Basements, Exterior

Buying Older Home – Typical Problems.  When buying an older home you are usually buying a home with built in character which has withstood the test of time and is still in habitable condition.  There are some inherent problems that you might encounter when purchasing an older home.  I have listed a few basic ones just for consideration.

Your older homes foundation is probably constructed of cement and stone.  There would have been no waterproofing done to the exterior of the foundation and there will be no weeping tile draining into sump.  This inspection area is one of the most important and expensive to repair if faulty.

Knob and tube wiring was usually installed in all older homes and there is usually still porcelain insulators present even if it was all removed.  You have to have a home inspector or electrician check to ensure all the knob and tube wiring was replaced.  The knob and tube was usually replaced with older two wire which has no ground and unless a total rehab was done on building you will still find two wire at outlets on upper floors and other hard to access areas.

Asbestos and vermiculite can be found in many older homes.  Some older homes had hot water boilers with cast iron radiators.  This systems were typically insulated with asbestos insulation.  Vermiculite insulation may contain asbestos and was frequently added to attics in older homes.  Asbestos requires professional removal which is very expensive.

Lead plumbing pipes and galvanized plumbing lines can be very expensive to replace and were used on most older homes.  Most insurance companies in Ontario will not insure a home with galvanized plumbing pipes.  Galvanized pipes tend to corrode from the inside out so that there is no warning that a pipe is about to burst.

Older homes may have many layers of lead paint which has built up over the years.  Lead-based paint is a major source of lead poisoning for children and can also affect adults. In children, lead poisoning can cause irreversible brain damage and can impair mental functioning. It can retard mental and physical development and reduce attention span. It can also retard fetal development even at extremely low levels of lead.  Thus, young children, fetuses, infants, and adults with high blood pressure are the most vulnerable to the effects of lead.

Your house is old and gorgeous, as are those wonderfully ornate cast-iron radiators, but these days, energy prices are anything but old-fashioned. Older homes have radiators sized for a time when open-window ventilation was popular and insulation was uncommon. If you’ve insulated and updated your windows, your radiators are most likely larger than they need to be.  You should have your home assessed by a heating expert to evaluate the expense and available options if required to upgrade your heating system.

The Barrie Home Inspector has many years of experience in inspecting Century Homes and is also a Certified Building Code Official with the Ontario Building Officials Association.  Commercial Building inspections also entail the same problems as residential and buyers have to be aware of the risks and hazards involved in purchasing older properties.  Visit the Barrie Home Inspector’s site at www.barriehomeinspector.com to obtain more information and advice when dealing with older homes.

Canadian home sales edge higher in October

Real Estate

OTTAWA – November 15, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity picked up a little further in October 2011 following the uptick in September.

Highlights:

  • Sales activity rose in October, marking the highest level since January.
  • Actual (not seasonally adjusted) national sales activity in October stayed in line with the 10-year average for the month, as it has most months this year.
  • Year-to-date sales are also even with the 10-year average.
  • The number of newly listed homes remained little changed from levels in the previous three months.
  • While the combination of stronger sales and stable new listings resulted in a slightly tighter balance of supply and demand, the national housing market remains firmly rooted in balanced territory.
  • The national average price posted a 5.5 per cent year-over-year gain in October, the smallest increase since January.

Homes sold through MLS® Systems of real estate Boards and Associations in Canada rose 1.2 per cent in October 2011 from the previous month. While national sales activity levels are still best described as average, the monthly rise in October sales built on the 2.5 per cent gain in September, and lifted activity to the highest level since January.

Just over half of all local markets posted monthly sales increases, led by gains in Montreal, Toronto, and Vancouver.

“There was no shortage of headline news in October about global financial market volatility and economic uncertainty, but it doesn’t appear to have dampened homebuyers’ spirits,” said Gary Morse, CREA’s President. “Interest rates are at low levels and are likely to stay that way for some time to come. Homebuyers clearly see the opportunities that the current interest rate environment presents. That said, all real estate is local, so buyers and sellers should consult their local REALTOR® for an understanding of opportunities in their housing market.”

As has been the case in most months this year, actual (not seasonally adjusted) national home sales in October stayed in line with the 10-year average for the month. Although up 8.5 per cent from levels one year ago, the gain in large part reflects last year’s nascent pick-up in activity following a mid-year lull.

A total of 397,561 homes have traded hands via Canadian MLS® Systems so far this year. This represents an increase of 1.8 per cent from levels in the first 10 months of 2010, but is directly in line with the 10-year average for the year-to-date figure.

The number of newly listed homes remained little changed in October compared with levels recorded in each of the previous three months.

“The prevailing economic outlook for Canada is one of slower but still positive economic growth, with heightened caution about investment and hiring decisions,” said Gregory Klump, CREA’s Chief Economist. “Consumer confidence and the housing sector are being supported by low interest rates and high employment levels, but their prospects depend on how Canada’s economic outlook evolves in response to global economic risks and outcomes in the months ahead.

Home sales activity over the past couple of months suggests buyers are confident that the Canadian economy will remain relatively unscathed by global economic risks, since every home purchase is a homebuyer’s vote of confidence in the future. That confidence is no doubt rooted in the success of coordinated fiscal and monetary policy responses that helped quickly pull Canada out of the last recession, and a stated willingness and ability to carry out further policy actions if need be.”

While the combination of stable new listings and stronger sales made for a slightly tighter balance between supply and demand in October, the national housing market remains firmly rooted in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 53.4 per cent in October, up from 52.8 per cent in September.

Based on a sales-to-new listings ratio from 40 to 60 percent, about 60 per cent of local markets in Canada were in balanced market territory in October. Of the remaining markets, there was a handful more seller’s markets than buyers’ markets.

The number of months of inventory stood at six months at the end of October on a national basis, little changed from the end of September (6.1 months). It has remained stable at about six months since April. 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 October 2011 stood at $362,899. This is up 5.5 per cent from October 2010, making it the smallest increase since January.

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.

Pellet Stove Installation Requirements

WETT Inspections

Pellet Stove Installation Requirements. Until the 1990s, stoves were not tested for safety, and homeowners had little or no guidance on installation. The result was house fires that were avoidable. Today, after years of co-operative efforts by all levels of government, the wood-heating industry and groups such as Fire Prevention Canada, several measures are
in place to help you heat with wood – safely. These safety measures include the following:
• a reliable installation code (“CSA B365 Installation Code for Solid-Fuel-Burning Appliances and Equipment”);
• safety-testing standards for stoves, inserts, fireplaces, furnaces, chimneys and flue pipes (almost all equipment for sale carries a certification label indicating that it conforms to safety tests); and a thorough training program for retailers, installers, chimney sweeps, municipal fire and building inspectors, and insurance inspectors (professionals in every part of Canada have completed the WETT or APC programs).

When installing a Pellet Stove the termination of a sidewall vent serving a pellet-burning appliance shall be located to avoid personal burn injury, fire hazard, and interference with or damage to adjacent properties. A vent shall not terminate less than 2.1 m above any public sidewalk, lane or street or right of way. It shall not be within 1.8 m of a mechanical air supply inlet to a building. The vent shall not be within 1 m of a building opening or air inlet or another appliance or within 1 meter of the center line of an exterior gas meter. The vent shall not be within 1.8 m of any gas service regulator vent outlet or within 1 m of an oil tank vent or an oil tank inlet. The vent must also be located not less than 0.3 m above grade level or any surface that may support snow, ice, or debris or be located under a veranda, porch or deck.

A clear space of at least 1 m shall be provided from the termination to any building projection, adjacent wall, or any combustible materials such as trees, shrubs, fencing, etc. Guards shall be provided around the termination of the sidewall venting system to prevent individuals from accidentally running into the venting system and mechanical damage from occurring as a result of vehicular traffic. Where termination is above the roof line, the vent shall terminate at least 1 m above the adjacent roof surface.

Every automatic fuel-feeding device servicing a steam boiler using solid fuel shall be equipped with the following controls; a clearly labeled device, located near each entrance to the automatic feeding device floor space and capable of manual operation, for the stopping the supply of fuel to the fire grate; and an automatic device for stopping the automatic feeder if there is a low water level, press exceeds the maximum, shutdown or failure of the combustion air fan; shutdown or failure of the mechanical flue-gas exhauster; a device for maintaining minimum fire and at least one automatic control to regulate or control the normal operation of automatic fuel-feeding device.

Every automatic fuel-feeding device serving a forced-air furnace using solid fuel shall be equipped with the following controls: A clearly labeled device, located near each entrance to the automatic fuel-feeding device floor space and capable or manual operation, for stopping the supply of fuel to the fire grate. This device shall be capable of stopping the fuel-feeding if the temperature exceeds 95 deg C in the furnace supply plenum; shut down or failure of combustion air; failure of the combustion air supply mechanism to stay in the fully open position; shut down due to mechanical failure or failure of the flue-gas flow. The automatic fuel-feeding device shall have a control that will maintain a minimum fire and one automatic control to regulate the fuel-feeding device under normal operation.

When installed and used correctly, certified clean-burning appliances significantly reduce the risk of chimney fires. Their advanced combustion systems burn the smoke inside the firebox, so less creosote forms in the chimney. As a bonus, you save on chimney-cleaning costs, which can be significant for conventional systems that need cleaning two or three times each heating season.

Bricks for Homes and Buildings

Exterior

Bricks for Homes and Buildings. In the past, bricks came in many different shapes and sizes, but today’s modern bricks tend to be a standard size of around 8″ x 4″ x 2″. They demonstrate a wide variety of textures, colours and finishes from yellows, reds and purples, to smooth, rough and rustic. These are due to the mineral variations found in the clay, and the method of manufacturing.

Raw surface clay and shale materials are taken from the ground in a process that is called winning. Materials are then carefully blended to control the quality, color and consistency of the desired finished product. The material is then formed by adding water and mixing materials in a pug mill. After mixing, the pugged clay is forced through a die creating a long extruded column of clay which is then wirecut to size. The material is then carried by conveyor systems into the firing kiln where it is first predried, and then carried through the firing stage of the kiln where temperatures can reach nearly 2000 degrees Farenheit. The brick can then be cubed and stored for shipping.

Bricks for building may be made from clay, shale, soft slate, calcium silicate, concrete, or shaped from quarried stone. However, true bricks are ceramic, and therefore created by the action of heat and cooling. Clay is the most common material, with modern clay bricks formed in one of three processes – soft mud, dry press, or extruded. Bricks are used for building and pavement. In the USA, brick pavement was found incapable of withstanding heavy traffic, but it is coming back into use as a method of traffic calming or as a decorative surface in pedestrian precincts. For example, in the early 1900s, most of the streets in the city of Grand Rapids, Michigan were paved with brick. Today, there are only about 20 blocks of brick paved streets remaining.

Solid brickwork is made of two or more layers of bricks with the units running horizontally (called stretcher bricks) bound together with bricks running transverse to the wall (called “header” bricks). Each row of bricks is known as a course. The pattern of headers and stretchers employed gives rise to different bonds such as the common bond (with every sixth course composed of headers), the English bond, and the Flemish bond (with alternating stretcher and header bricks present on every course). Bonds can differ in strength and in insulating ability. Vertically staggered bonds tend to be somewhat stronger and less prone to major cracking than a non-staggered bond.

Bricklaying Terms. Before beginning any of the bricklaying projects, study the following terms and their definitions. This will help you understand the various brick positions and patterns, as well as the typical mortar joints used. Bull Header. A rowlock brick laid with its longest dimensions perpendicular to the face of the wall. Bull Stretcher. A rowlock brick laid with its longest dimension parallel to the face of the wall.

Bricks are a versatile and durable building and construction material, with good load-bearing properties, high thermal mass and potential low energy impact. In the case of simple earth bricks such as adobe and CEBs, they measure high on the sustainability index, being made from locally available (and abundant) materials of clay, sand, and water, using low technology compression equipment, solar energy or kilns. While modern methods of brick construction have a much lower sustainability index, the UK brick industry has developed a strategy to minimize its environmental impact and increase its energy efficiency and use of renewable energies. Overall, bricks are a good example of a sustainable building practice and are currently gaining in popularity around the world.

Innovation in brick and block building is moving forward – thin joint mortar allows the depth of the mortar to be reduced from l0mm to just 2mm increases the speed of construction. Thin-joint system improves thermal insulation and air tightness of construction and increases ease of installation – thin joint mortar can be laid twice as fast as traditional mortar.

Canadian home sales edge down in April

Real Estate

Canadian home sales edge down in April.  OTTAWA – May 17th, 2011 –Statistics released today by The Canadian Real Estate Association (CREA), reveal that national resale housing activity softened in April when compared to March 2011.

The decline in April sales activity reflects changes to mortgage regulations that came into effect previously. As anticipated, the changes pulled forward some sales activity that would have otherwise occurred at a later date.

Seasonally adjusted national home sales activity was down 4.4 per cent in April 2011 compared to the previous month. As expected, declines were largest in some of Canada’s more expensive and active markets, including Toronto, Vancouver, and the Fraser Valley.

Changes to mortgage regulations and other transitory factors also boosted transactions in April last year at the expense of activity in subsequent months. This also contributed to a broadly based decline in sales activity in April 2011 compared to year-ago levels.

Actual (not seasonally adjusted) activity was down 14.7 per cent from levels reported last April.

“Although down nationally, sales activity in April this year compared to April last year was up in a number of local housing markets,” said Gary Morse, CREA’s President. “Housing market trends often evolve and diverge from national trends due to local factors, so buyers and sellers should consult their local REALTOR® to understand how the housing market is shaping up where they live.”

“Last April, several transitory factors artificially boosted sales.  This included the impending tightening of mortgage rules, speculation about higher interest rates and the looming introduction of the HST in some provinces.  This year, additional measures to tighten mortgage rules were implemented in March and the other transitory factors were absent,” said Gregory Klump, CREA’s Chief Economist. “This makes it difficult to compare the two months in order to reliably gauge the impact of the latest round of mortgage rule changes.”

The number of newly listed homes edged up 1.3 per cent in April from the previous month on a seasonally adjusted basis, but remained well below levels in January and February, when impending changes to mortgage regulations were announced.

With fewer sales and an increase in newly listed homes, the national housing market moved further into balanced territory in April. The national sales-to-new listings ratio, a measure of market balance, stood at 52.5 per cent in April, down from 55.7 in March.

More than two-thirds of local markets in Canada were balanced in April. Almost half of the remainder could be classified as sellers’ markets based on a ratio of sales to new listings above 60 per cent.

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 seasonally adjusted number of months of inventory stood at six months at the end of April on a national basis, up from 5.7 months in the previous month.

The national average price for homes sold in April 2011 was 2,544, up eight per cent from the same month last year. April marked the third consecutive month in which the national average price was up by eight per cent from year-ago levels.

The national average price has been skewed in recent months due to surging multi-million dollar property sales in selected areas of Greater Vancouver. Demand for these properties moderated in April from the previous month. A reduction in this source of upward skewing for the national average price was offset by fewer sales of lower priced properties.

“Changes to mortgage regulations that took effect in April 2011 likely sidelined a number of first-time homebuyers,” said Klump. “By contrast, higher end home sales in Greater Vancouver and Toronto had their best April ever.”

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 neighborhoods 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

– 30 –

 

For more information, please contact:

Pierre Leduc, Media relations
The Canadian Real Estate Association
P: 613-237-7111 or 613 884-1460
E: [email protected]

Canadian home sales hold steady in August

Real Estate

Canadian home sales hold steady in August.  OTTAWA – September 15, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity in August 2011 remained stable for the second consecutive month.

Highlights:
• Sales activity was stable from July to August, but posted another big year-over-year gain reflecting weakened demand last summer.
• Year-to-date sales pulled ahead of 2010 levels for the first time this year, and remain in line with the ten-year average.
• The number of newly listed homes was also little changed from July to August.
• The national housing market stayed firmly entrenched in balanced territory.
• There were more balanced local markets in August than at any other time on record.
• The national average price posted another year-over-year gain in August, but has moderated from elevated levels earlier this year.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of national activity in Vancouver and Toronto.

For a second consecutive month, national home sales activity held steady in August 2011 when compared to the previous month.

Among major urban centres, Toronto and Ottawa posted a monthly increase in activity while Calgary, Montreal and Vancouver saw activity decline slightly.

“The housing market in Canada remained on a firm footing in August when compared to volatile financial markets,” said Gary Morse, CREA President. “Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market, and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up.”

Actual (not seasonally adjusted) sales activity came in 15.8 per cent above national levels reported one year earlier. This was the largest year-over-year increase since last April, but largely reflects weakened activity one year ago.

A total of 324,030 homes have traded hands via Canadian MLS® Systems so far this year. While this stands only marginally above levels in the first eight months of last year, it nevertheless marks the first time this year that year-to-date activity has pulled ahead of 2010 levels.

As has been the case for much of this year, the year-to-date sales figure continues to run in line with the ten-year average.

The number of newly listed homes nationally was also little changed from July to August. This kept the national housing market firmly planted in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 51.6 per cent in August, unchanged compared to July.

Based on a sales-to-new listings ratio of between 40 to 60 per cent, 70 per cent of all local markets in Canada were in balanced market territory in August – a greater percentage than at any other time on record. There were just 12 buyers’ markets in August, which was the lowest figure so far this year.

The number of months of inventory stood at 6.2 months at the end of August on a national basis, which is little changed from the end of July (6.1 months). The national months of inventory figure has been stable at about six months since April. 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 August 2011 stood at $349,916. This is 7.7 per cent above its year-ago level, which marked the low point for 2010.

The national average price has moderated compared to earlier this year, with sales activity in Vancouver, and more recently in Toronto, exerting less of an effect on the national average. Their share of provincial and national sales activity reached unusually elevated levels earlier this year, but has since receded in line with normal seasonal variations.

“Once again, economic and financial market headwinds outside Canada are keeping interest rates lower for longer,” said Gregory Klump, CREA’s Chief Economist. “Those headwinds will likely persist until, and indeed after, fiscal quagmires in the U.S. and Europe are resolved. In the meantime, the Bank of Canada will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market.”

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.

1 All figures in this release, unless otherwise noted, are seasonally adjusted to remove normal seasonal variation. Removing regular seasonal variations enables analysis of monthly changes and fundamental trends in the data.

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