Upgrade your basement and make your home more comfortable

(NC)—Many homeowners renovate to upgrade their home as a result of wear and tear over the years. Yet converting unused space into an additional living area can add a whole new meaning to the concept of ‘modern’ living. Whether it’s a home theatre system or an adaptable living space, renovating your basement can create extra space and improved comfort for an expanding family.

• Think how you want to use your basement, and come up with renovations that will serve that goal.

• In doing so, consider how you can increase your useable space while reducing your renovation costs.

• Décor ‘tricks,’ such as mirrors and paint, can help create more light to turn your basement from dingy to bright and inviting, but you can also make it more comfortable with an insulation upgrade.

Before you start on your re-insulation project, assess the existing amount of insulation in your basement. Remember that adequate insulation of your basement walls will help you create an additional space that is modern, comfortable and inviting. Install Cel-Lok® insulation panels with an R-10 value and with R-14 PINK FIBERGLAS® insulation batts to create an insulation barrier with a value of R-24 for optimum warmth and comfort. For interior walls, try out QuietZone® insulation panels to minimize unwanted noise drifting to the rest of the house and control sound levels.

Cheryl West, an insulation expert at Owens Corning, says that insulating your basement can improve its comfort and maximize the energy efficiency of your home. And with government savings available, a renovation project like insulating your basement is affordable, too.

The ecoENERGY Retrofit – Homes program is offering a grant of up to $5000 from the Government of Canada for energy efficiency renovations which have not yet started. Some energy utilities and provincial governments offer additional funding. For more information on ecoEnergy grants and incentives, visit www.ecoaction.gc.ca/homes. Not only will you convert unwanted space into an additional living area by insulating your basement, but you can also cash in on government incentives and cut back on your renovation expenses.

Start modernizing your basement today.

More information on what insulation is best for your basement can be found at www.owenscorning.ca.

www.newscanada.com

Residential real estate activity in the Greater Toronto Area (GTA) shifted into high gear in January. Housing sales have returned to pre-recession figures, with the 4,986 homes sold in January – off peak 2007 levels by less than 200 sales.

Average price appreciation continues unabated, up 19 per cent over one year ago, bringing values to $409,058.

Concerns over diminished inventory (active listings are down 41 per cent from January 2009 at 12,052 units and new listings have dropped three per cent) are creating even greater urgency in the market. Active listings in January 2010 were at the lowest level on record for the month in more than a decade. The threat of higher interest rates, the looming Harmonized Sales Tax (HST), and rising housing values have all served to bolster activity. Momentum from the latter half of 2009 has spilled over into the New Year and shows no signs of letting up.

First-time buyers are a major force in the market, as they vie for properties priced between $200,000 and $400,000. More than half of sales in the GTA occurred in that price bracket.

Multiple offers are once again part of the landscape, with competing bids on entry-level homes now a common occurrence. It’s estimated that there are as many as 10 buyers for each individual property. Hot pockets continue to fare well, but the peripheral areas – as well as Toronto’s bedroom communities – are experiencing tremendous activity.

The greater ‘bang for the buck’ and the lower land transfer tax in the suburbs is attracting purchasers from Metropolitan Toronto. Condominium sales have also soared in recent months, as first-time buyers focus their attention on location, location, location.

Prime developments located in trendy neighbourhoods like Yonge and Eglinton are experiencing heated demand, with high-rise apartments moving in multiple offers almost daily. Units priced at the magic number (in and around $250,000 to $350,000) are virtually impossible to stock. Affordability is a key component in multiunit residential and as long as units are coming onstream, condominiums will represent the first step of homeownership for many. Upscale condominium sales are also brisk, with eight units moving over the $1 million price point in January alone.

Baby boomers may be downsizing in square footage, but many of these moves are lateral in nature. Luxury homes sales were back with a vengeance in January with 50 sales posted over the $1.5 million price point alone. Lawrence Park, Rosedale, Kingsway, Forest Hill, South Hill, and Hogg’s Hollow continue to experience strong demand for high-end product with prime properties moving in multiple offer situations.

Expected to further bolster demand is immigration. Over the past year, it’s become increasingly obvious that immigrants are not waiting the traditional five-year period to make their moves – some are making them immediately upon arrival.

Tighter lending criteria is also expected to send purchasers into the market in coming months. Looking forward, all indicators point to a heated Spring market in the Greater Toronto Area, characterized by unprecedented demand and limited supply. Average price will continue to climb unless more listing inventory comes on stream.

Article from Re/Max Market Trends Report 2010

Click here to see the entire report

Much has been reported in the media about how the Competition Bureau has decided to bring a case to the Competition Tribunal alleging that the rules of The Canadian Real Estate Association (CREA) governing MLS® Systems are anti-competitive, restrict consumer choice and prevent innovation in the market for residential real estate. Let us be very clear: CREA’s rules are not anti-competitive, and CREA is confident that the Competition Tribunal will rule against the Commissioner of Competition following a hearing on the merits.

It is important when considering these issues to move beyond the sound bites and consider the facts: CREA currently has more than 98,000 members operating independently across the country, competing on a daily basis for the business of Canadian consumers. There are more consumer choices and more business models today than ever before – and that is a good thing. Consumers can negotiate the level of service they want and the fees or commission they will pay for that service.

What hasn’t changed – and cannot change to ensure the integrity of MLS® Systems which operate across the country – is the need for accurate and reliable information to be provided for use in MLS® Systems and a commitment by REALTORS® using MLS® Systems to comply with a code of ethics and regulatory requirements across the country. These basic requirements are necessary for the continued reliability of the MLS® System which Canadians have come to trust for years and years.

The fact that a home is listed on a real estate Board’s MLS® System provides an assurance to the public that the information regarding properties listed on Boards’ MLS® Systems is accurate and reliable and that there is professional involvement and accountability for that information – all of which protects the interests of homebuyers and sellers. This System provides consumers with not only choice, but also confidence, as they engage in one of the biggest and most important financial transactions of their lives.

The MLS® System is a cooperative marketing network established by REALTORS® several decades ago to help the public buy and sell real estate. MLS® Systems are member-to-member services, paid for by the REALTOR® members of a local Board or Association. It is the local real estate Board or Association that actually administers and operates each MLS® System across Canada. CREA owns the trademark and licenses its use to boards and associations. REALTOR.ca is simply an advertising website operated by CREA and competing with other websites on which properties are advertised by home sellers and REALTORS®. .

There have been numerous reports over the last several days that as a result of the Bureau’s actions commission rates will come down. The fact is that CREA’s rules have nothing to do with commission rates. CREA does not dictate or determine commission rates – or tell its members what business model to choose or how to run their businesses. The mythical “fixed commission rate” does not exist: any transaction between a REALTOR® and a home seller or buyer is subject to negotiation. In CREA’s view, consumer choice is a good thing and the market should decide.

CREA is proud of its members and the service they provide Canadians in a competitive environment. There should be no doubt that CREA’s ultimate interest and that of its members is to ensure that consumers continue to have choice and confidence in a vibrant, competitive market.

Dale Ripplinger
President, CREA

GTA REALTORS® REPORT MID-FEBRUARY RESALE HOUSING MARKET FIGURES

TORONTO, February 18, 2010 — Greater Toronto REALTORS reported 3,555 sales through the Multiple Listing Service during the first two weeks of February.

This represented a 74 per cent increase compared to the 2,044 sales recorded during the same period in 2009 when resale transactions had dipped due to the recession. The February mid-month sales total was also 7.7 per cent above the previous high set in 2006.

“Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment,” said Toronto Real Estate Board President Tom Lebour.

The average price for February mid-month transactions was $429,997 – an 18 per cent increase over 2009. New Listings within the Toronto Real Estate Board boundaries were up 15 per cent to 6,212.

“Double-digit price increases will persist through the first quarter of the year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “However, as new listings continue to increase creating a better supplied market, we will see the annual rate of price growth moderate into the single digits.”

Changes designed to help keep borrowers responsible and prevent instability

Today, the federal government announced changes to the rules for government-backed insured mortgages.  That includes all mortgages where the home buyer is putting a down payment of  less than 20 percent.

Here are the changes:

• All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms
• Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 per cent from 95 per cent of the value of the home
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment

These changes will come into effect on April 19, 2010 although exceptions would be allowed after this date in order to satisfy binding agreements of purchase and sale, financing or refinancing entered into before April 19, 2010.

These changes are part of the government’s pro-active strategy to help prevent instability in the market place and to ensure that Canadians borrow responsibly.  These changes are meant to enhance existing minimum standards established in October of 2008 which include:

• Fixing the maximum amortization period for new government-backed mortgages to 35 years
• Requiring a minimum down payment of five per cent for new government-backed mortgages
• Establishing a consistent minimum credit score requirement
• Requiring the lender to make a reasonable effort to verify that the borrower can afford the loan payment
• Introducing new loan documentation standards to ensure that there is evidence of reasonableness of property value and of the borrower’s sources and level of income

Additional details are available through the Department of Finance Canada website.