While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues.  Innovative financing has become key to homeownership in today’s environment – with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

First-time purchasers continue to play a pivotal role at both a local and national level. The impact they have on the housing market is significant, as they are the impetus for sales in the mid-to-upper price ranges.  As long as this segment of the market remains healthy, the real estate outlook will continue to be favourable.

Inventory levels, however, remain one of the foremost concerns facing purchasers across the country. A shortage of available entry-level product was identified as a major obstacle impeding buyer intentions in three-quarters of markets surveyed in the report, including St. John’s, Moncton, Fredericton, Halifax-Dartmouth, Ottawa, Greater Toronto Area, Hamilton-Burlington, Niagara Falls, Winnipeg, Regina, Saskatoon, Greater Vancouver, Victoria and Kelowna.

Doom and gloom reports coming from south of the border have yet to hinder overall momentum.  First-time buyers are still leading the charge, taking advantage of every resource available to achieve homeownership. They’re determined to get into the market sooner rather than later. If suburban locations, smaller condominiums and town homes, or a little sweat equity is what it takes to get into the market, these purchasers are game.

Although average price is the barometer for housing values in most major centres, first-time buyers looking to achieve homeownership consider starting prices a more meaningful gauge of affordability. Starting prices can be substantially lower than the market average. For example, average price has surpassed the $600,000 benchmark in Greater Vancouver, while the starting price for a detached home can hover as low as $237,500 in the peripheral areas. 

For most of us, complete home automation is beyond the reach of our budgets, but there are some easy ways to incorporate ‘smart’ technology into your home, making life more convenient and helping to save you money.   Until the price comes down on robot butlers, here are some of my suggestions to making your home ‘smart’

At the high end of the market, the technology is currently available to control nearly everything in your home from one central system.  Things such as your heat, lighting, TV and  music can be adjusted whether you’re at home or away using your cell phone or on a wireless connection on your laptop.       

Even if your budget isn’t limitless there are many easy and inexpensive ways to incorporate similar features to your home.

Wireless Router – This is the heart of your smart home.  You can buy a wireless ‘G’ router for well under $100, or for even faster speeds spend a few more dollars and buy a Wireless ‘N’ router.   Most of my electronic devises are attached to my wireless router.  My wife and I can access the web from anywhere in the house or in the yard on our laptops.  Our printer is also connected to our network through our router so we can send documents to print without our computers having to be hardwired.  

SlingBox – it’s a device which allows you to stream your TV’s cable, satellite or personal video recorder to any computer connected to the internet.   Connect one end of your cable to the Slingbox and the other end to your wireless router, download a little software and you are good to go.  I originally bought a Slingbox so my brother in Japan could catch Canucks games and the NFL, but it’s been great for keeping tabs on what is happening at home when I’m travelling or when my daughter is watching Dora, The Explorer’s latest adventure.  You can also use a Slingbox to watch TV on your internet equipped cell phone or PDA.

Stream music and video – From music bridges (Sonos Music Bridge) to media extenders (Apple TV, Xbox 360) there are a number of devises on the market and they are all relatively inexpensive.  Connect one to your network and your home theatre system and you’ll have access to all the music and video stored on your computer.  I use the Xbox 360 and Windows Media Center.  Apple TV and Microsoft are also in the beginning stages of offering movies and TV shows for rent and music for purchase.

Personal Video Recorder – I can’t live without my PVR anymore.  I set it up to record the TV programs I want and I can watch them on my schedule (and even skip the commercials).  It’s also been great to keep a steady stream to children’s programs on hand for my daughter, and each time a new one is recorded, the old one is deleted.  While PVRs are still relatively expensive, the prices from the cable and satellite companies are coming down.

Programmable Thermostat - I mentioned saving money before, and updating our old thermostat to a new programmable thermostat probably cut our heating bill between 1/3 and 1/2. Thermostats are very easy to install if you can handle a screwdriver.  Once installed, simply program the thermostat to turn your heat down or off when you’re at work or away from home.

If you are interested in learning more about ‘smart’ homes, the National Post recently published an interesting article on the subject.  Meanwhile, I’ll be saving my pennies for my robot butler.

If you're buying property in Vancouver, it's likely that you will use the services of a home inspector to give you some peace of mind before you commit to one on the biggest purchases of your life. The goal of the home inspection is to identify any significant (expensive) problems that could change a potential purchaser's mind.

Buyers will often insert a "subject to a satisfactory home inspection" clause into the contract of purchase and sale in order to protect themselves.

Other times, a seller may want to do a home inspection before putting their home on the market. They can then make any necessary repairs that may prevent a quick sale for top dollar. If the property is older, it can also be helpful to make the inspection report available to potential buyers to show that the property is structurally and mechanically sound.

So...What actually is your home inspector looking for?

Bathrooms – Inspectors examine the condition of grout and tiles. They will check for leaks or drainage problems, or cracks in toilets, check CFGI outlet operation, fans, water pressure and water volume. They also may check for moisture in walls.

Plumbing – Check the pipes, drains, vents and hot water tank for its age and condition; check for leaks or drainage problems; water pressure.

Laundry Facilities – Check the drains, check vents. Again, not all inspectors check appliances. Be sure to ask.

Heating – Furnace, thermostat, ducting, filters.

Electrical System – Service size, grounding of all components, panel and breaker condition, code compliant.

Site Condition & Drainage – Does the property have a steep grade? Condition of retaining walls, drain tile functional; patio settling; sidewalk & driveway condition.

Exterior Surfaces – Siding, wall condition; mildew or dry rot, paint condition; doors and windows.

Decks, Porches, Stairs - -Safe, solid, railings to code, no settling or rot, cement cracking.

Roof, Gutters, Flashing, Chimney – General condition, clogging, remaining life.

Interior Walls, Ceilings, Floors – Cracks, leaks, staining, mildew, signs of settling, and of course, for moisture in walls.

Attic, Roof – Access, moisture or mildew, ventilation, rafter and insulation check, is there asbestos present?

Fireplaces – Flues, dampers, chimney liners, gas lines, safety, related dampness.

Ventilation, Condensation – Check crawlspace, bathrooms, attic, etc. for moisture, mould, mildew or dry rot.

Foundation, Basement – Cracks, settling, insulation, drainage problems, sump pump, insects.

It's quite the list, isn't it? No wonder the process can take upwards of three hours. Of course, the small extra expense can save a lot down the road.

There are a ton of home inspectors out there, but it's best to get a referral from a friend or family member. Your realtor can also refer you to a reputable and competent home inspector.

If you have questions, feel free to call or e-mail.

Take care,

Rob

After posting extraordinary gains in 2007, housing market performance will moderate in most major Canadian centres in 2008, according to a RE/MAX report.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18 markets across the country. The report found that while economic prospects will continue to improve next year, few major markets are expected to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John, Halifax-Dartmouth, and St. John’s are all predicted to buck the trend in 2008, with appreciation ranging from one to seven per cent.

Greater Vancouver is also expected to rise 7 percent next year.

The average price is forecast to increase in 78 per cent of markets surveyed next year, with the lowest price increase expected in Edmonton and the highest in St. John’s.

Nationally, the number of homes sold is expected to break through the half-million threshold in 2007, climbing 13 per cent to an estimated 545,400 units, up from 483,770 units one year ago. Average price is projected to appreciate nine per cent to $303,000, up about $25,000 over 2006 levels. In 2008, home sales are expected to retreat to 500,000 units while Canadian housing values are forecast to continue their ascent, rising six per cent to $321,000.

Clearly, economic prosperity has translated into increased housing sales and upward pressure on prices across the board. The country’s economic engine fired on all cylinders throughout the year, despite dire conditions south of the border. As in 2007, inventory will be the major wildcard next year—the ultimate variable most expected to influence housing market conditions and performance. A return to tight market conditions could mean all bets are off as buyers are forced to compete, creating increased market pressure.

Major market frontrunners for price appreciation in 2008 include St. John’s (12 per cent), Regina and Kelowna – Central Okanagan (nine per cent), Hamilton-Burlington and Saint John (eight per cent) and Greater Vancouver (seven per cent). Leading the country in sales growth next year will be Kitchener-Waterloo (seven per cent), followed by Hamilton-Burlington, London-St. Thomas, Sudbury and Halifax-Dartmouth, each forecasting a five per cent gain.

Higher mortgage rates and increased inventory levels failed to materialize in most major centres, making 2007 a record year for real estate activity in Canada. By year-end, housing values across the country are expected to shatter existing records. Serious double-digit increases in average price are forecasted for Saskatoon (49), Edmonton (31.5), Regina (21), Calgary (20), Sudbury (20), Kelowna (19.5) Saint John (17), St. John’s (12), and Greater Vancouver (10).

Western markets were first out of the gate in 2007, but those in the East followed suit. By year-end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward. A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year.