The city of Vancouver says demand for laneway houses continues to grow, with 348 permits to build the rental dwellings issued in 2013.

Vancouver requires that laneway houses be rentals, and cannot be run by the Strata Corporation, in a bid to create more affordable rental options in the city.

More than 1,000 laneway house permits have been issued in Vancouver since they became legal in 2009. That year there were just 18 permits handed out.

But by 2012 a record 350 permits had been issued, up from 192 in 2010 and 229 in 2011.

This year’s permits are coming from all over the city and are not concentrated in one or two neighbourhoods, said city councillor Geoff Meggs on Saturday.

“We’re seeing this as a family-based solution. Often we see the parents build them for their adult children. So it’s not a silver bullet for the affordable housing strategy but it is one piece in trying to confront the (housing) crisis.”

At this point, Meggs said there is no plan for a cap on the number of laneway houses that can be built in the city, but he noted that staff are watching to see if it gets too crowded.

He wants to see provincial and federal tax incentive programs that helped developers build rental housing be restored.

Michael Lyons, vice-president of marketing for Smallworks, a builder of laneway homes in Vancouver, says at least half his customers are building the small houses at the back of their lots for the next generation.

He says it’s tough for young people in Vancouver because many of them can’t afford to buy something in the neighbourhood where they grew up.

The cost to build a laneway home, according to Lyons, is usually between $250,000 and $270,000. That price includes preconstruction costs of $11,500, excavation and site work of $30,000 to $35,000 and another $175,000-$200,000 for the construction.

Laneway housing, also known as granny flats, coach or carriage houses and “fonzi suites,” are usually one-and-a-half or two stories high, and typically built above or next to detached garages in narrow lots or laneways.

The small homes were initially devised as mortgage helpers, or affordable suites for aging parents, young families and students, as part of Vancouver’s eco-density plan.

Source: Tiffany Crawford, Vancouver Sun

The median resale price of a home in British Columbia is expected to increase at an accelerating rate over the next three years, according to a new forecast by Central 1 Credit Union.

The median resale price is expected to end this year at $388,000, up about 1.5 per cent following a decline in 2012, Central 1 says.

And while the credit union’s economist Bryan Yu expects that rate of increase to continue through 2014, he predicts bigger increases in the following two years.

“We have revised the provincial pricing outlook higher and expect prices to rise about 1.5 per cent in 2014, 2.5 per cent in 2015 and three per cent in 2016, taking the median price to $415,000,” Yu said in a news release issued this morning.

Central 1’s forecast calls for total home sales to be under 70,000 for 2013, but that should rise about seven per cent to 72,500 in 2014, and hit 84,000 in 2016.

“Although growth is significant, the sales level remains low when adjusted for the population base,” Yu said.

Yu said the volume of home sales will depend on population and economic growth, both forecast to expand at a subdued pace through most of 2014 before accelerating later in the forecast period..

He added that low mortgage rates will continue to support housing demand, but rising rates will eat into affordability.

Source: Vancouver Sun

New data released yesterday from the organization that represents home sellers shows Canada’s housing market continues to hit new highs, with the average price increasing by almost 10 per cent in the last 12 months to $391,085.

The Canadian Real Estate Association said the strong gain was in part because this time a year ago, sales were down in some of the largest housing markets.

When prices in Toronto and Vancouver are stripped out of the equation, the average annual price gain was 4.3 per cent, CREA said.

Aside from prices, the realtor group says the number of homes sold was a little below the peak in September, but higher than the number this time last year and still close to the historical average.

A total of 434,678 homes have traded hands across the country this year, CREA says. That’s about 0.2 per cent higher than last year’s total.

“While there has been a lot of volatility in sales activity from month to month, sales for the year to date are on par with fairly steady levels posted for the same time period in each of the past five years,” CREA’s economist Gregory Klump said.

The average price rose 9.8 per cent compared to a year ago, but actually had dropped on a monthly basis. November’s average price was slightly lower than October’s, $391,820.

“Most housing markets are well balanced, including many large urban centres,” Klump said.

“Housing price gains are always stronger in places where supply is tight relative to demand, such as we’re seeing in Calgary and in parts of southern Ontario including the low-rise market in Toronto.”

Source: CBC News

B.C.’s housing market will remain strong in the coming year as residential real estate sales and average prices nationally have soared to a five-year high, according to a new report by Re/Max.

The Housing Market Outlook 2014, released Wednesday, said improved economic performance combined with historically low interest rates and rising consumer confidence should spark greater gains in 2014, with housing sales and values expected to further appreciate.

The report said the number of homes sold this year is expected to match or exceed 2012 levels in almost two-thirds of markets across the country, led by strong activity in B.C., including Vancouver and Kelowna.

Home buying in B.C. kicked into high-gear in June, led by the Lower Mainland, Kelowna and Victoria. Although there are several factors that are expected to contribute to rising housing values nationally, one of the most pressing is continued construction in Vancouver and Toronto, said Elton Ash, regional executive vice-president of Re/Max of Western Canada.

The availability of low-rise homes relative to the population is expected to contract, in favour of vertical growth, and its affordable price point is representative of the future.

“We’re definitely seeing a greater commitment to higher density at a municipal level,” Ash says. “In fact, the trend already underway in Vancouver and Toronto has gained serious momentum in smaller markets where cities are moving to infuse vibrancy into the urban core through mixeduse residential/commercial/retail development. The level of investment is substantial – dovetailing with revitalization efforts currently underway.”

Nationally, an estimated 466,000 homes will change hands in 2013, an increase of three per cent over sales recorded in 2012.

Canadian home sales are expected to climb two per cent to 475,000 units by the end of next year. The average price of a Canadian home is forecast to appreciate four per cent to $380,000 in 2013, up from $363,740 in 2012.

Values are expected to continue to escalate in 2014, rising three per cent to $390,000 by year end, the report said.

Source: Tiffany Crawford, Vancouver Sun

Red and green may be the trademark colours of the holiday season, but if you want to wow your guests, try experimenting with alternative colour combos. British design icon and television personality Debbie Travis has named berry pink the colour of the season.

“This was a hot colour this year for clothes and we know home always follows fashion,” she says.

This deep, cheerful pink with a hint of purple is a refreshing twist on the traditional cherry red of the holiday season. Travis chose the colour because it adds a touch of sophistication and fun and goes well with modern decor, complementing dark wood and metals such as silver and gold, which have risen in home decor popularity in the last couple of years.

“I think it’s a really happy colour for the holidays and it’s got that little bit of an edge to it,” she says.

Travis has teamed up with Canadian Tire, offering an exclusive line of berry pink holiday decor. She offers her top tips for holiday decorating with the hue.

1. Break decor rules

“The whole point of the holidays is that it’s the one time of the year to throw all those decorating rules out the window and have some fun (with colour and combinations),” says Travis. While berry pink may not be a colour you would choose for your living room walls, she says we should forget trying to match holiday decor with our everyday themes. Ignore the idea that you need to use traditional colours if you have traditional living room furniture or contemporary ones if you have a modern living space.

2. Switch it up

Change your holiday decor each year to create interest in your home, she says, since we tend to have the same people over at Christmas. While you don’t have to throw away all of your decorations and start anew each year, simply adding a new colour of the season and pairing it with holiday staples such as gold, silver and white can create a whole new look that will keep friends and family guessing what your home will look like.

3. Choose a main colour

Select one colour as your main thread, then add complementary winter colours such as white or silver. Although Travis says it’s impossible to go overboard with colour during the holiday season, toning it down with a contemporary metal such as gold, silver or a neutral brown tone can make the colour really pop in your space.

4. Experiment

Take a twist on the traditional red and green colour combination and try something unique, like pairing berry pink with peppermint or lime green to give your decor a more contemporary look.

5. Get organized

Before hanging decorations, Travis spreads everything out on the floor to see how ornaments look next to each other. Try incorporating a variety of textures, patterns and materials to create interest such as mixing ribbons in quilted and knitted textures with feathers and ornaments.

6. All the rest

Decorating is not just about the tree. It’s important to create a unified look by adding touches of holiday colours throughout all areas of the home where guests will be, says Travis. Hand towels in the powder room, ribbons on the backs of chairs, table decorations and a wreathe on the front door or in the window above the kitchen sink — all incorporating your chosen holiday colour — help to create a cohesiveness to your holiday look.

Source: Lisa Evans, In Homes

Good news for homeowners and buyers as the Bank of Canada has just announced that it will hold its key interest rate steady but sounded a touch more dovish in its outlook, saying the risks of undesirably weak inflation appeared greater than they did six weeks ago.

The central bank stunned markets in October by abandoning 18 months of signaling that rate hikes were on the horizon. But it made clear at the time it was just as likely to raise rates as to lower them as it was caught between excessive household debt on one hand and below-target inflation on the other.

The bank’s statement today showed it was now increasingly concerned about possible disinflation after the inflation rate dropped to 0.7 percent in October. It added, however, that the balance of risks remained within the range of possible scenarios it identified in October.

“The risks associated with elevated household imbalances have not materially changed, while the downside risks to inflation appear to be greater,” it said.

“Weighing these considerations, the bank judges that the substantial monetary policy stimulus currently in place remains appropriate …,” it said.

The Canadian dollar briefly weakened after the statement to C$1.0689 to the U.S. dollar, compared with C$1.0663 an hour earlier.

The bank has kept its overnight rate target at 1 percent since September 2010, following three successive hikes that year as Canada pulled out of a relatively mild recession.

None of 32 analysts polled by Reuters last week had expected any rate move on Wednesday, but many market players were nonetheless bracing for the possibility that the bank would somehow introduce more dovish language without signaling actual rate cuts.

The median forecast in that poll was for the bank to start raising rates in the second quarter of 2015.

Source: Reuters

Everyone’s dream home is just the right size, in the perfect neighbourhood, with exactly the features and amenities they had in mind. In reality, every home, even a brand-new one, will have flaws. The question is, are they reasonable issues or signs of an impending disaster?

1. Put Safety First

Anything that could be a safety issue is worth looking into. Investigating a home’s electrical system, for example, is crucial. Insurance companies don’t like knob-and-tube wiring (found in homes dating back about 50 years), which they label a fire hazard. The system must often be upgraded within 30 days of closing in order to get insurance, and it’s a messy job that starts at about $5,000 per storey. Also problematic are homes from six or more decades ago that have only 60-amp electrical service, which isn’t enough to support today’s appliances. That means new masks, new wiring and a new electrical meter and panel.

2. Check The Water System

Water is another key component that merits a thorough check. After making sure the basic functions of their taps and toilet work, buyers should get documents from the seller that prove the water system is legal and has been inspected, and that all renovations have been done with a permit. Otherwise, their home insurance won’t cover anything that goes wrong with those renos.

3. Look Out For Mould

Watch for evidence of mould in a prospective purchase, especially if you live in British Columbia. The No. 1 issue in Okanagan real estate for the past 10 years has been grow ops – it can cost $30,000, $50,000 or more to rehabilitate a home, says one expert. Mould – which can also be caused by flooding and leaks – can affect air quality and cause respiratory problems. Even after a former grow op is brought back up to bylaw standards, homeowners need to make sure they have papers to prove it. Otherwise, when it comes time, reselling will be a major headache.

Mould and many other more serious problems, such as asbestos, aren’t technically covered by a home inspector’s mandate or insurance. An experienced inspector will share his suspicions, then pass clients on to an expert to confirm those suspicions and suggest options. A savvy real estate agent might be able to negotiate with the seller to have the cost of a mould inspection subtracted from the purchase price.

4. Ensure A Sturdy Foundation

Foundation settlement is also a danger. Caused by extreme moisture changes, weak soil or poor drainage, it results in wall cracks that threaten the house’s structural integrity. Homes can end up needing extensive foundation upgrades to repair. It can cost hundreds of thousands of dollars to fix, and soil settlement due to underground streams can make already pricey homes staggeringly expensive.

Source: Denise Balkissoon, Reader’s Digest

Canada’s housing market is not in a bubble and not likely to suffer a sudden and sharp correction in prices unless there is another major global shock to the economy, Bank of Canada governor Stephen Poloz said Wednesday.

The central banker, testifying before the Senate banking committee on his latest economic outlook, said he believes the most likely scenario is a soft landing where home prices stabilize, although he acknowledged that an imbalance in the market and high household debt remain key risks.

Poloz used the testimony to pointedly disagree with a couple of forecasting organizations that weighed in this week on the Canadian situation — the Fitch Rating service that judged Canada’s housing market as 21 per cent overpriced, and an OECD recommendation that he start raising interest rates in a year’s time.

“Our judgment is (the housing market) is a situation that is improving, this is not a bubble that exists here that would have to be corrected,” he said. “If there is a disturbance from outside our country that’s another analysis.”

Poloz said most of the fundamentals surrounding the housing market appear headed in the right direction. The prospects for the economy is improving, he noted, which should create more jobs.

As well, he said banks are now demanding higher credit scores from new borrowers and added that he does not believe there has been serious overbuilding in the housing market.

“It looks expensive,” he said of home prices. “But which markets are expensive? Well those markets have been expensive my whole life,”he said, noting that Toronto and Vancouver both absorb high rates of immigration.

Asked to put odds on his soft landing scenario, Poloz said he would place it in the 60-to-80 per cent probability range.

Source: Julian Beltrame, The Canadian Press

Winter’s coming, and with it, plunging temperatures and shorter days that make you want to curl up and relax, warm and cosy by the fire. As the coldness looms and you prepare to pump the heat, it’s important to protect your home from potential damage and address heat and energy leaks. These seven simple tasks will help you stay warm, safe and energy-conscious this winter.

1. Prepare your hearth for fire

Before getting chestnuts ready for the roasting, get your fireplace set for the fire. Grab a flashlight and look inside for build-up, bird’s nests or obvious cracks. From the outside, check for broken bricks and crumbling mortar. Ensure that your damper opens and closes and seals tightly. Clean out the ashes and remember that in addition to these steps, you should have your chimney professionally cleaned every other year (more often if you burn a lot of fires). Stock up on wood and kindling, and you’re ready for a comfy, cosy season by the fire.

2. Seal the windows

Seal drafty windows to keep heat in and energy bills low with one (or both) of these two simple tasks. First, caulk the cracks. Sold in temporary or permanent form, caulking is inexpensive and easy to apply. Second, cover your windows in a thin plastic film (available at any hardware store) and tape it down with waterproof double-sided tape, heating the edges with a hair dryer and pressing the protective layer into place. When it gets warmer outside, simply peel the film off, open the window, and let the sun shine in.

3. Clear out the gutters

Clogged gutters block the drainage of rain and melting snow, resulting in household leaks and damage to landscape and foundation. As fall sheds its last leaves, grab a ladder, a garbage bag, some rubber gloves and dig in. Remove everything, from twigs to leaves to caked-on dirt. Check that the downpipes are clear of obstruction and then ensure the entire system is un-clogged and leak-free by running water through it.

4. Prepare for winter storms

Don’t let a blizzard take you by storm―always have a fully-stocked emergency kit at hand. Include batteries, a flashlight, candles, matches and a lighter; warm clothes and blankets; a battery-powered radio; non-perishable food items and water (two litres per adult per day); a first-aid kit and specialty products like medicine, baby formula and pet food (if necessary). Store at least three days’ worth of supplies for everyone in your household.

5. Don’t forget about heating maintenance

Is your heating system ready to weather the winter? Have a professional check your heating system and ensure it’s in good working order before you turn it on. Schedule checks for your furnace, venting system and chimney. Don’t forget to replace the batteries on smoke and carbon monoxide detectors, in case any of your heating systems are overworking.

6. Pad your pipes

A small frozen pipe can cause big household damage if it bursts, so pad your pipes to prevent floods. Grab some tubular pipe insulation sleeves from your local hardware store and set to task covering exposed pipes in unheated areas, such as a basement, attic, crawl space or cabinet. The pipe sleeves are easy to apply and can be cut to fit. Cover all exposed parts, including bends and joints. Finally, seal the seams with duct tape. With that simple task, you’re not only preventing considerable water damage, but also conserving energy.

7. Clean out your garage

Like your traditional spring cleaning, consider scheduling a traditional ‘fall cleaning’ of your garage. Organize the remains of your summer projects and clean and store gardening tools. Like a seasonal turning of your closet, push what you won’t be needing ― the lawn-mower, hedge trimmer, rakes and summer toys – to the back and bring any winter necessities ― shovels, snow blowers, skis and sleds ― to the front. Set out salt and gravel containers, and you’ll thank yourself the first time the ice hits.

Source: Sara Cation, Style at Home

Canadian home prices edged higher in October from the month before but the gain was lower than average, suggesting the market is cooler than usual, the Teranet-National Bank Composite House Price Index showed on Wednesday.

The index, which measures price changes for repeat sales of single-family homes, showed overall prices rose 0.1 percent last month from September. The average October monthly gain over 15 years of data has been 0.2 percent, Teranet said.

The index was up 3.1 percent on an annual basis, an acceleration from September’s 2.7 percent price appreciation and well above the trough of 1.8 percent in June.

The report echoes data on both sales activity and prices that suggest Canada’s housing market has cooled after a strong spring and summer.

Economists are divided over whether the market has achieved a soft landing after years of roaring ahead, or if it will still undergo a sharp price correction similar to the U.S. housing crash. Mortgage rates remain near historic lows and are not expected to rise much as long as official interest rates are held low to stimulate the economy.

“For as long as the Bank of Canada remains on the sidelines – which we now expect until H2-2015 – the risk of an adverse development in Canadian housing is limited,” Mazen Issa, a Canada macro strategist at TD Securities, said in a research note.

“Taken in tandem with the fading impact of tighter mortgage regulations, the outlook for housing over the near-term is expected to remain benign.”

Canada sidestepped the worst of the financial crisis of the last decade because it avoided the real estate excesses of its U.S. neighbor, and a post-recession housing boom helped it recover more quickly than its Group of Seven peers.

The housing market began to cool last year after the country’s Conservative government, worried about a potential property bubble, tightened mortgage rules. Housing has since rebounded in most markets but has started to ebb again as the summer selling season fades.

The Teranet data showed prices rose in October from September in just 3 of the 11 metropolitan markets surveyed, with a 1.1 percent rise in Vancouver, a 1.0 percent rise in Halifax and a 0.9 percent rise in Calgary.

Prices were down 0.8 percent in Hamilton, 0.6 percent in Victoria, 0.5 percent in Ottawa, 0.4 percent in Quebec City, 0.3 percent in Edmonton, 0.2 percent in Toronto and 0.1 percent in Montreal and Winnipeg.

Year-on-year prices dropped in two cities – Victoria, where they were down 0.5 percent from October 2012, and Halifax, where they fell 0.7 percent.

Compared with October 2012, prices were 6.7 percent higher in Calgary, 4.6 percent higher in Hamilton, 4.1 percent higher in Toronto, 3.8 percent higher in Quebec City, 2.7 percent higher in Vancouver, 2.2 percent higher in Edmonton, 2.0 percent higher in Winnipeg, and 0.9 percent higher in Montreal and Ottawa.

Source: Andrea Hopkins, Reuters