Market Updates - The Latest From The Local Area

As realtors® it's always important for us to keep up with what is happening in the market. Local conditions can change very quickly, so it's of critical importance to have a complete understanding of what is going on in the local area. We update this report frequently, so make sure to check in and read about the local & national real estate market.

Friday May 11th, 2012 - Open Concept a New Thing in Closets

Your entryway closet with its jumble of jackets, sneakers and sports equipment may be driving you round the bend. If so, you might consider an open concept design that creates hand storage spaces for all of your items. You will still have room for your treasures, but they’ll just be neat and tidy.

Some designers advocate taking off the doors altogether to create more space. Put up hooks, add some easy to reach cubby holes and put in a bench for easy changing from street shoes to slippers. Keep baskets handy for hats and gloves or create a top shelf, out of the line of sight. Make drawers or shelves for underneath your bench and keep the area neat and tidy.

This open closet idea is a new trend, so commercial venues haven’t caught on yet. So far this is a do-it-yourself kind of item. It was recently featured on Pinterest, a sort of cyber bulletin posting board. Down the road, kits may be available.

The idea works in other rooms as well and is handy for those who collect a lot of stuff. If you open up the closet and put in specific storage spots, then those with a tendency to “over collect” will be forced to thin those collections. The only possible drawback is if you have children. Inquisitive youngsters might not be able to resist the temptation of mom and dad’s things sitting out in the open. In that case, it’s good to have at least a few closets with good old fashioned hide-the-evidence doors.

Thursday April 26th, 2012 - Bank of Canada Looks at Effect of Aging Population on Economy

Jean Biovin, Deputy Governor of the Bank of Canada, noted this past Wednesday that the country’s aging population will affect wages and the economy in general. As more retire, the pool of workers will decrease, forcing employers to offer more money to entice those that are left. This may, over time, lead to an overall lowering of interest rates. The economy will be affected because it will tweak production levels and add inflationary pressures.

Biovin also sent out another warning about household debt, and that it is even more important to save money and plan for retirement. He noted that as a society grows older, there are two choices, adjust and be proactive about the situation, or get used to a lower standard of daily living.  Basically, everyone needs to get a bit more self-reliant.

As far as the workforce, attracting talented people will require more cash. The pool is shrinking, so there will be more competition. That does mean a lower rate of return on business capital, but quality workers would improve productivity, partially offsetting the higher wages. Allowing easier immigration of talented people would mitigate this issue somewhat.

The central bank has noticed the rather tepid productivity growth in Canada. By 2014, the output is expected to grow by 2.2 percent. If it weren’t for the aging factor the increase would be 0.2 percent higher. Biovin expects the aging factor to affect the output growth until at least 2020.

Thursday April 19th, 2012 - Much of Canada Seeing Balanced Real Estate Market

This past March property prices across Canada dropped 0.5 percent from what they were in March of 2011. Even so, statistics show that the sales were actually up, according to the Canadian Real Estate Association, or CREA. Sales were up 2.5 percent between February and March and sales activity was up 1.6 percent over March of 2011. CREA noted this was the smallest sales increase since April of 2011. There was also 0.3 percent less homes being listed in March, than in the prior February.

Edmonton, Calgary and Toronto did the best as far as sales increases nationwide, but in more than two thirds of the local markets looked at there were increases. In British Columbia’s Fraser Valley and the once super hot Vancouver, sales activity slowed so much that it had an effect on the national figures.

During the first quarter of 2012, 108,373 homes changed hands, which is about five percent higher than the five-year first quarter sales average and 3.8 percent higher than the calculated ten year average. That number is also 4.4 percent higher than what was seen in the first quarter of 2011.

New listings were essentially flat for that same period, having increased a mere 0.3 percent. In almost half of the local markets, listings showed a decline. The number of months of available inventory also decreased slightly in March, going from 5.8 months in February to 5.7 months. The average price of a home, nationwide, was $369,677 in March of 2012. Almost half of the local markets were considered balanced.