Collingwood, Blue Mountain, Thornbury & Green Real Estate

Canadians Pursuing Recreational Property for Lifestyle, despite Tax Concerns and Stricter Mortgage Rules
National opinion poll shows condominiums increasingly popular choice for a second home

Almost half of Canadians considering buying a recreational property will do so to improve their lifestyle, despite concerns about increasing taxes, rising interest rates and new regulations that require higher down payments on second homes, according to a nationwide survey of Canadian attitudes towards recreational property ownership conducted by Angus Reid and commissioned by Royal LePage Real Estate Services.

When buyers were asked why they plan to purchase recreational property, lifestyle was the number one reason given, at 47 per cent.   Only one in four buyers say new Canada Mortgage and Housing Corporation regulations reduce their desire or ability to purchase a recreational property. The changes will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home.Comparatively, Canadians are more concerned about increases in taxation affecting their ability to buy vacation properties, with 49 per cent responding that they are concerned about new taxation rules such as the HST on new-construction homes while 46 per cent express concern about increasing property taxes.

Properties in Ontario saw typical 3 bedroom, 100 foot lot waterfront properties sell from $140,000 to over $1 million. According to the national poll, waterfront properties continue to be the most desirable recreational real estate for potential buyers, with 34 per cent ranking a “cottage by a lake” as their number one choice, down sharply from 68 per cent in 2009. Meanwhile, condominiums are the preferred property type for 24 per cent of buyers, up from just six per cent of buyers in 2009. 

The three most important features to potential buyers in Ontario are waterfront/beach access (61 per cent), four-season use (47 per cent) and peace and quiet (40 per cent).

Tied with Alberta and British Columbia, Ontario’s potential buyers are considering buying a recreational property to enhance their lifestyle (49 per cent), more so than any other reason.  

Sixty-two per cent of potential buyers in Ontario are likely to be concerned about tax grabs by the government such as HST.  This is compared to 53 per cent of potential buyers in BC, where HST is also taking effect.

Second only to Atlantic Canadians, 45 per cent of Ontarians are most likely to purchase a cottage on a lake.  This is higher than the national average of 34 per cent and much higher than potential buyers in Alberta, of which only 14 per cent are most likely to purchase on a lake.

Housing market sees bounce back from 'awful winter' - Royal LePage revises forecast to the positive

TORONTO, July 7, 2009 – Canada’s resale housing market recovered lost ground in the second quarter and is poised to stabilize for the remainder of 2009, after a very slow start to the year, according to the Royal LePage Market Survey Forecast and House Price Survey released today.  As the economy begins to stabilize and consumer confidence improves, house prices are expected to appreciate slightly in much of eastern and central Canada.   Greater than national average price declines are predicted for the western cities that saw the greatest price inflation earlier in the decade, including Edmonton, Calgary and Vancouver. 

“Given the grim shape that Canada's real estate market was in this past winter, the turnaround we have witnessed in the second quarter is really quite remarkable.  We believe this improvement represents a sustainable change across the country. While seasonally weaker conditions are to be expected in the fall, the plucky Canadian real estate market is stabilizing and a healthy level of activity is forecast for the second half of 2009,” said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.

During the second quarter, average house prices across most Canadian markets began to appreciate, recovering from the lows experienced during the winter months. Average national prices remain slightly behind those posted during the same period in 2008. Of the housing types surveyed, the price of detached bungalows declined to $327,964 (-3.5 per cent), two storey property prices decreased to $392,378 (-3.7 per cent), and standard condominiums price points fell slightly to $236,612 (-4.0 per cent), year-over-year.

Soper observed, “With our industry’s busiest quarter behind us, we feel comfortable revising our 2009 forecast to the positive. When the anticipated market decline struck last winter, it was with greater speed and intensity than predicted, but the strength of the rebound was equally surprising.  If general economic conditions continue to improve, as we expect they will, 2009 will be characterized as a period of moderate housing market correction after several years of above-average price growth.”

The 2009 national average house price is forecast to decline marginally by 2.0 percent, to $297,500 by end of year and unit sales are projected to fall slightly by 1.0 percent to 430,000.

“Improved affordability, driven by flat or lower home prices and inexpensive mortgage financing, has been the principle catalyst in this recovery.  Pent up demand is also a factor in the lift we see in the second quarter numbers.  For six months straddling the year's beginning, buyers stayed away from the market in an understandable, emotional reaction to very unsettled global economic conditions.  Canadians appear to be stepping beyond these fears and are once again moving onto and up the home ownership ladder,” stated Soper. 

In early 2009, the precipitous drop in unit sales remains the most dramatic indicator of the recession's impact on Canada's real estate market.  With spring, consumers appeared ready to believe the worst was behind them and returned to the market in force, driving increased activity across each housing type.  Couple this with historically low interest rates and leveling unemployment, Canada’s residential real estate market got back on track during the quarter.

Undergoing an inevitable cyclical correction, price adjustments can be seen with marked variances across Canada’s provinces.  As expected, British Columbia and Alberta posted the most significant price modifications, as home values in those markets retreated in the wake of several mid-decade years of unsustainable price inflation, and have now evolved to a more balanced state.   Prices appear to have stabilized and it is expected that these regions will continue to see improvements into 2010.  In particular, the impact of lower home prices has improved affordability to the point that people are buying homes again on the West Coast, where sales activity has increased substantially.

Alternatively in Atlantic Canada, homes continue to appreciate due to strong local economies, which have helped to shelter the region somewhat from the turbulence witnessed in other provinces. As well, the region's generally moderate home prices have helped keep demand strong.   Newfoundland, in particular, stands out as a region that continues to see significant home price appreciation, as supply cannot keep up with the demand driven by vibrant and growing industries such as those in the province's oil and gas sector.

Meanwhile, home prices in Toronto declined slightly in the second quarter, reflecting the national average trend.  In the early spring, it was first-time buyers who triggered the increased activity levels, now those looking to move up are also active in the market. Similar to the situation in other large cities in central Canada, the most desirable neighbourhoods experienced supply shortages, which put upward pressure on prices. 

“Looking ahead to the second half of 2009, year-over-year price comparisons will likely appear increasingly more favourable. It is important to remember that the baseline for the latter half of 2008 was unusually low, particularly in the fourth quarter when the full impact of the global financial crisis was felt. Our expectation is that most Canadian regions will experience stable housing prices through into the spring of 2010,” concluded Soper.

Toronto
In Toronto, the real estate market witnessed significant second quarter gains.  The return of consumer confidence and an upswing in spring market activity brought house prices and unit sales down as buyers emerged to take advantage of affordable properties and low lending rates. 
As the market begins its transition from a buyer’s market to a balanced market, with indications of a seller’s market arising, it’s anticipated that the market will stabilize by the end of year.

Here are some simple, big energy and money saving adjustments we can make to green our homes. Eric Corey Freed, the author of Green Building & Remodeling for Dummies shares what we should do first to easily green our homes and save on electric and water bills.

1. Cut Out Vampire Power
   Vampire loads, or phantom power, which is caused by devices like cell phone chargers and electric toasters suck up energy as long as they're plugged in—even when not in use. Unplug your devices when they're not in use, or buy a $25 smart power strip that'll turn off automatically.
2. End Toilet Water Waste
   Take an empty two-liter bottle, wash it out, fill it with water, screw the lid on tightly and set it into your toilet tank, as far away from the flapper valve as possible. This prevents two liters of water from being used every time you flush. Old toilets waste up to 7 gallons a flush!
3. Install an Ultra Low Flow Showerhead
   The showerhead in your bathroom uses 2.5 gallons of water a minute or more—installing an ultra low flow can cut that down to half a gallon a minute.
4. Get a Gray Water System for Your Bathroom
   The bathroom is where we waste the vast majority of our water. Installing a gray water system is actually an ingenious idea for your home, especially if your water bill is high. It collects soapy water from your faucet and sends it to the toilet, so you flush with soapy, used water, not freshwater. These cost around $300.

Looking for a new home? This can be a great opportunity for you reduce your ecological footprint.

Look beyond the décor and consider the location, size and style of your house and take advantage of government grants for home energy audits for a resale home or a new EnergyStar home.

1. Find a Green Realtor
   Find a Realtor with good knowledge of environmental issues and programs and services available to assist homeowners to reduce energy.
2. Conduct an energy audit
   Because the Home Energy audit is such a new concept, most resale homes will not be energy rated. If you are considering a new home, take the opportunity to purchase an Energy Star certified home. Realtors are just starting to recommend energy audits to sellers as a selling tool. Until the Energy Audit Act becomes law, it will be hit and miss if you are looking for an energy rated home and you certainly can’t afford to get a professional energy audit for every home you are considering! Therefore it is imperative that your Realtor is well informed about home energy conservation and the grants and programs available. As a guide, download The Energy Conservation Kit produced by the National Association of Green Realtors and Brokers (NAGAB), from my website at http://www.livingincollingwood.com/green.
3. Location is Imperative
   Consider how close the house is to shops, school, Church, entertainment, work-place and public transit. Choose your location very carefully.
4. Size Matters
   Although large houses are still popular, the trend will be for smaller homes and more efficient floor plans with no space wasted. The smaller the home, the less energy needed for heat and light and the less you money spent on utilities.
5. Expect to Upgrade
   Once you have found the home you want, go ahead with a professional energy audit and expect to upgrade and implement some of the suggested changes. Re-decorate with low-VOC paint, upgrade the air system, remove old carpet and replace with wood floor. Renovate according to your ecological principles. The Canadian government will pay 50% (up to $150.00 max) towards the audit and provide grants towards certain upgrades to a max of $1350.00. Anything you upgrade will add value to your investment and create a greener, healthier home.
6. Research your renewable-energy potential
   Another new trend - depending on where you live there is an exciting possibility of generating some or all of your own electricity with rooftop solar panels or a backyard wind turbine. The costs of solar, wind, and geo-thermal power are falling and becoming easier to find. This may not be attainable immediately in your area so keep an ear to the ground for news to come.
7. The Yard
   Just as smaller houses are becoming popular, so too are smaller yards. Less lawn means less water. A small space for a garden is ideal to grow some of your own fruits, vegetables and herbs. Consider a space for compost pile or bin. Look for trees to help conserve energy in hot weather.

Happy home hunting! If you are considering a new or resale home in the area of Collingwood, Blue Mountain or Thornbury, Ontario I can help you find a GREEN Home or a home with the best potential for energy efficiency. Just give me a call 705-606-0783 to get started! Kathy Rasmussens

" News Release: Two Thirds (65%) of Ontario Homeowners Oppose McGuinty Government Proposed Mandatory Home Energy Audit Program "

*** Reference -The original news release is posted on my site www.livingincollingwood.com/renews

I am using quotes from the release and supplementing with my comments from the view of a Green Realtor.

April 20, 2009 - Today a poll was released conducted by IPSOS Reid for Ontario Real Estate Association (OREA) to judge consumer reaction to the provincial government's proposal for mandatory home energy audits prior to sale, found that " two-thirds (65%) of Ontario's principal residence homeowners oppose the recently proposed McGuinty government mandatory home energy audit program and instead overwhelmingly favor voluntary audits (92%)."

"Further, 70% of principal residence owners believe that mandatory home energy audit information will deter homeowners from selling homes, thus be detrimental to the real estate sector and Ontario's economy. Two thirds (62%) of Ontario homeowners believe proposed program is a "poor idea" and seven in 10 (68%) say it's unnecessary
·   A massive majority (94%) of Ontario homeowners believe mandatory home energy audits will impose significant cost on home sellers and first time buyers (82%) "

"Furthermore, home energy audits will impose a significant cost on home sellers, especially those with older houses who will have difficulty selling their home without having to spend money on expensive energy retrofits thus reducing their home equity.  A mere 6% (5% somewhat/1% strongly) disagree with this position."

As a Realtor, I agree that homeowners will be penalized for a poor audit when it comes time to sell, but I am not convinced that the price will be further reduced just because some of the home's shorfalls come under the subheading "energy efficiency. The issues that have a direct affect on home energy conservation , i.e old, leaky windows, poor insulation, unserviced furnace etc. would already be figured into the sale price, the energy audit aside. A homeowner wishing to sell an older home that has not been updated, and without the finances to do the updating, can still sell it "as is" and let the new owner do the retrofit as part of a home update and renovation. 

 I truly believe this audit is more about changing homeowners mindsets. We are in the middle of an environmental emergency and homeoners are placing more value on home decor. Home style shows and magazines, speak to our emotions to decorate, over furnish and increase our knick knacks, collections and must-haves. This audit will bring awareness to collectively change our mindset from decor to environment and reward homes that are the most energy efficient instead of those that are designer decor! We will learn to place our emphasis on the home structure, systems, energy efficiency. Less is more and less is also more energy efficent! Homeowners need to investment in home energy efficiency instead of decorative pillows and "throws"! 

We need to get excited about a home with high energy audit rating and realize it's value, not only to the current environmental emergency, but to the financial value of the home. Buyers will start to place a value on the environmental upgrades and it will be reflected in a higher sale price. Once this pattern is established and buyers start to create demand for highly rated homes, then all homeowners will start to invest and place much more value in energy saving products and services for their home and create a balance between efficiency and decor. 

I recently attended a green real estate seminar in Collingwood and was told of a seller who installed a geothermal heating system and when time came to sell he fully expected to get a sustantial payback and more demand for his house, but when the offer was put on paper there was no value placed on the system. Not one buyer saw it as a motivating factor in their decision to purchase and the feeling was that it was an extravagant investment! 

"Further, a full majority (82%) of homeowners believe that mandatory home energy audits will impose a significant cost on first time homebuyers who typically buy resale homes that will now be too expensive due to energy retrofits (82%) compared with just one in five (18%) who disagree." 

Is anybody thinking about utility bills and savings over time of an energy efficient house? Is anyone thinking about the possibility of impossibly high fuel bills, or shortages over time? In addition, for first-time buyers there are many new builders offering Energy-Star rated homes that are absolutely competetive. And mortgage companies are coming to the table with "green mortgages" offering special incentives for people purchasing energy efficient homes. Governments are offering incentives and rebates for home energy audits and retrofit. And, all of this has happened without mandate. I believe the government is taking a responsible stand by responding to the needs of the environment and waking up the minority of homeowners who are ambivilant to our current environmental emergency.

"OREA supports a system of voluntary home energy audits combined with improved incentives to offset more of the costs of energy efficiency retrofits. "

I certainly agree with OREA but in the end, if enough people continue to place no value on the environment and ignore home energy conservation then mandatory audits may be the only option.

On the other hand, with environmental protection becoming an emergency situation I believe it's time homeowners put their money where their mouth is. We need to be environmentally responsible and accountable. We need to put much more value on homes that are energy efficient. It's time to respect the "granola and birkenstock" crowd! Every homeowner should create an energy conservation plan based on their particular home and family lifestyle.  There are hundreds of items that an owner can do that have little or no cost and have a direct affect on the household bills! I just cannot see any negative aspect to home energy conservation! ( I will do a future blog with home energy saving tips that have little or no cost.)
Be sure to subscribe to my blog!

My final thought: Home energy conservation is no longer a concept - it is an emergency!

This news release is on my site www.livingincollingwood.com/renews

 FREE Download Energy Conservation Kit at initiative.http://www.livingincollingwood.com/green

http://www.livingincollingwood.com/green

***Reference

News Release: Two Thirds (65%) of Ontario Homeowners Oppose McGuinty Government Proposed Mandatory Home Energy Audit Program Principal Residence Homeowners Overwhelmingly Support Voluntary (92%), Not Mandatory (8%), Audits 

The findings of the poll conducted March 30 to April 1, 2009 of 692 principal residence homeowners in Ontario from Ipsos Reid at http://www.ipsos-na.com/news/  

This news release is on my site www.livingincollingwood.com/renews

As Ontario leads the way towards mandatory home energy audits with other Canadian provinces not far behind, we can learn from the experience of United Kingdom where they have reported quite a bit of success with their programs and are already in the process of planning for zero carbon homes. In the U.K., Energy Performance Certificates (EPCs) have been required since 2008 on houses that are being sold, built or rented.

EPCs are issued after a licensed inspector examines a property for its energy efficiency, a process which allows homeowners to see where improvements can be made to save the most on their energy bills, and gives prospective buyers an idea of the potential costs of owning a given property and the work that may be required to improve its efficiency.

Increasing efficiency in the home presents an effective way to combat climate change, a factor that is a significant selling point with environmentally aware buyers. A UK website states that public buildings are responsible for almost 50% of the UK's energy consumption and carbon emissions and houses, 30%. The UK program makes it mandatory for public buildings to display their energy rating. They have gone a step further and now require all air conditioning units inspected. By 4 January 2009 all air conditioning systems over 250kW must have their first inspection, and by 4 January 2011 all air conditioning systems over 12kW must have their first inspection. The inspection which is done by an accredited energy assessor will include an assessment of efficiency, a review of their sizing and advice on improvements or replacements and alternative solutions. The system inspections will also include boiler rooms in public buildings. For more info: http://www.communities.gov.uk/planningandbuilding/theenvironment/energyperformance/

The UK has a mandate to have all new homes be Zero Carbon Homes by 2016 and public buildings by 2019. The definition of Zero Carbon Homes is based on high energy efficiency, on or near-site carbon reduction, and allowable solutions for dealing with the remaining emissions. 

If you want to get an idea of how your home will be rated, download the NAGAB home conservation kit on my site and be sure to sign up for my monthly newsletter "Green in Collingwood" http://www.livingincollingwood.com/green 

This kit enables you to conduct an preliminary examination of your home and discover areas in which some smaller changes and fixes can be implemented that can help reduce energy costs and improve your property's score on a home energy audit. The majority of home improvements in home energy efficiency are with enhanced insulation, in the cavities of walls, between joists in attics, or around window panes, and from installing efficient fixtures and appliances. These improvements are relatively low-cost, and the benefits they provide in terms of reduced energy consumption mean they pay for themselves over the short term, and provide large savings over the long term. In addition, the audit and subsequent improvements are government subsidized and the savings in energy costs will make the project pay for itself and increase the value of your home. It's simply a win-win situation!