Tuesday, February 28, 2012

BC Commercial Leading Indicator Points to a Strong 2012

Vancouver, BC – February 28, 2012.The BCREA Commercial Leading Indicator (CLI) rose for the second consecutive quarter, advancing 1.1 points to an index level of 111. On a fourth-quarter over fourth-quarter basis, the CLI moved 1.6 per cent higher in 2011. While this is a marked slowing from the 5.2 per cent surge in 2010, the index picked up considerable momentum in the third and fourth quarter of the year, more than making up for a weak first half of 2011.

The trend in the CLI turned up slightly as early softness in economic activity was smoothed out by a stronger second half of the year.  This change in trend indicates a positive economic environment for the BC commercial real estate sector in 2012.

“Improving economic data provided a strong tailwind for the CLI in the second half of 2011,” said Brendon Ogmundson, BCREA Economist. “However, growing anxiety surrounding the global economy could constrain the economic environment for commercial real estate this year.”

Copyright BCREA Reprinted with permission

Monday, February 27, 2012

Mortgage Rates 2/27/2012

Terms
Bank Rates
Best Rates
6 Month
4.45%
4.45%
1 YEAR
3.20%
2.74%
2 YEARS
3.55%
2.74%
3 YEARS
3.95%
3.09%
4 YEARS
4.64%
3.09%
5 YEARS
5.24%
3.25%
7 YEARS
6.35%
3.99%
10 YEARS
6.75%
3.99%
Rates are subject to change without notice. *OAC E&OE
Prime Rate is 3.00%
Variable Rate Mortgages as low as Prime

Friday, February 17, 2012

HST/PST Transition Rules

The Provincial Government today announced the HST/PST transition rules for housing during the return to the PST on April 1, 2013. Here is the government’s announcement:


Transition measures support new-home buyers, builders
New housing transition measures give certainty to an important economic sector and help to keep taxes equitable throughout the transition as the province returns to the PST, Finance Minister Kevin Falcon announced. 
B.C. will return to the PST on April 1, 2013, meeting the Province's commitment to return to the PST as quickly and responsibly as possible, while ensuring businesses can plan their training and systems switch-over effectively to apply the sales tax correctly. 
Government is announcing new relief measures that will benefit purchasers and builders of new homes. The B.C. new housing rebate threshold will be increased to $850,000, effective April 1, 2012, meaning more than 90 per cent of newly built homes will now be eligible for a provincial HST rebate of up to $42,500. It is important to note that the HST does not apply to resale housing.
In addition, to help support workers and communities in B.C. that depend on residential recreational development, purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012. 
The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax.
Specifically:
·         B.C.'s portion of the HST will continue to apply before April 1, 2013. Purchasers will be eligible for the new higher B.C. HST new housing rebate, of up to $42,500, and builders will continue to claim input tax credits.
·         B.C.'s portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay seven per cent PST on their building materials. On average, about two per cent of the home's final price will again be embedded PST.
·         For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.
The transition rules outlined today provide certainty for new-home construction and sales, particularly during the transition period. 

For goods and services that will be subject to PST, PST will generally apply where tax becomes payable on or after April 1, 2013. Detailed general transitional rules for goods and services will be available with the full PST legislation introduced in the legislature this spring. 

The provincial changes are subject to the approval of the legislature.
Quick Facts:
·         Raising the B.C. HST rebate threshold to $850,000 is expected to save purchasers about $60 million in 2012-13. The maximum value rises to $42,500 from $26,250, a 60 per cent increase.
·         More than 90 per cent of newly built homes sold in B.C. are below the new higher rebate threshold.
·         Average amount of embedded sales tax in newly built homes under PST: two per cent.
·         Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent.
·         Tax rate on a newly built home during transition: two per cent.
·         The temporary housing transition measures will be in place for two years, until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
·         The temporary housing transition tax and the temporary housing transition rebates will be administered by the Canada Revenue Agency on behalf of B.C. The Province is administering the grant for new secondary vacation and recreational homes.

Thursday, February 16, 2012

Housing Market Update (February 2012)

Watch BCREA Chief Economist Cameron Muir discuss the January 2012 statistics and take an in depth look at BCREA’s Q1 Housing Forecast Update:
Copyright BCREA
rebroadcast with permission 

Wednesday, February 15, 2012

Home Sales Rise Outside Lower Mainland

Vancouver, BC – February 15, 2012. The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC dipped 7.6 per cent to $2.1 billion in January compared to the same month last year. A total of 3,976 homes traded hands on the MLS® over the same period, down 3.9 per cent. The average MLS® residential price was 3.8 per cent lower at $527,219 compared to January 2011.

"Increased market activity outside the Lower Mainland in January was offset by fewer sales in Vancouver and the Fraser Valley,” said Cameron Muir, BCREA Chief Economist. MLS® Residential sales rose 7 per cent to 1,620 units outside the Lower Mainland, while declining 10 per cent to 2,356 units in Vancouver and the Fraser Valley.

"While provincial sales activity was down in January from year ago levels, consumer demand has posted modest improvement since last fall, driven by low mortgage interest rates and gradually improving economic conditions,” added Muir.

Copyright BCREA reprinted with permission

Tuesday, February 14, 2012

Canadian Housing Market to Remain Steady

Housing markets are expected to remain steady in 2012 and 2013, according to Canada Mortgage and Housing Corporation’s (CMHC) first quarter 2012 Housing Market Outlook, Canada Edition.

“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, Deputy Chief Economist for CMHC.
Housing starts will be in the range of 164,000 to 212,700 units in 2012, with a point forecast of 190,000 units. In 2013, housing starts will be in the range of 168,900 to 219,300 units, with a point forecast of 193,800 units.

Existing home sales will be in the range of 406,000 to 504,500 units in 2012, with a point forecast of 457,300 units. In 2013, MLS®2 sales are expected to move up in the range of 417,600 to 517,400 units, with a point forecast of 468,200 units.
The average MLS® price is forecast to be between $330,000 and $410,000 in 2012 and between $335,000 and $430,000 in 2013. CMHC’s point forecast for the average MLS® price is $368,900 for 2012 and $379,000 for 2013. The moderate increases in the average MLS® price are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013.

CMHC

Monday, February 13, 2012

The Importance of Bathroom and Kitchen Fans

Bathroom and kitchen fans are an important part of your home's ventilation system. They remove odours from your house, which improves indoor air quality. They also remove moisture, which decreases the level of humidity in your house. High humidity can damage building materials and can cause mold growth. Mold may affect your family's health.
Common Fan and Exhaust Systems

The two most common types of fans are impeller fans and blower fans.
Impeller fans move air with blades similar to airplane propellers.

Blower fans look like hamster wheels — they are often called squirrel cages — and generally do a better job of moving air than impeller fans.

Most exhaust systems consist of an exhaust fan, ducting and an exterior hood. Some houses have a central exhaust system, in which one fan draws moisture and odours from several rooms of the house using a network of ducts.
Kitchen exhaust systems usually have the fan and fan motor in the exhaust hood. Other systems use an in-line fan, which is in the exhaust duct, or a fan outside the house. In-line and outdoor exhaust fans are usually quieter than systems with the fan in the room.

A heat recovery ventilator (HRV) also exhausts moisture and odours. An HRV is a self-contained ventilation system that provides balanced air intake and exhaust. Like a central exhaust fan, it can be connected to several rooms by ducting.

How Good Is the Fan I Have Now?
CMHC's research shows that many houses have exhaust fans that:

  • are too noisy
  • move very little air
  • are not energy efficient
  • may cause backdrafting of combustion appliances
  • use high-wattage lighting
Are There Better Fans?

Yes. There's a new generation of effective, quiet, energy-efficient exhaust fans and controls.

How Do I Choose the Best System?

First, choose the quietest, most energy-efficient fan in the size range required. Most fan labels have Home Ventilating Institute (HVI) ratings so you can compare noise and energy efficiency. Look for a fan with replaceable parts and permanent lubrication. A fan suitable for continuous use is preferable. Be prepared to pay more for a quality fan.

Second, select low-resistance (smooth) exhaust ducting. Seal the joints and insulate sections that run through unheated spaces.

Third, place the exhaust hood where it will not cause moisture damage on exterior surfaces.

Fourth, if you have heating appliances with chimneys, make sure that fans won't cause the appliances to backdraft.

Fifth, install the proper controls.

Bathroom Fans: What Should I Look For?

Fan exhaust capacity is rated in litres per second (L/s) or cubic feet per minute (cfm). A normal bathroom needs a good-quality fan that draws 25 L/s (50 cfm). A poor-quality fan won't exhaust enough air and will be too noisy for regular use. The best fans have sound ratings of 0.5 sones or less and consume about 20 watts. Older units typically run up to 4 sones and 80 watts.
Large bathrooms, or those with bigger fixtures, such as spas, need larger fans. Place the bathroom fan as close as possible to the source of moisture or odour. For in-line fans, as long as the intake grille is properly located, the fan itself does not have to be close to the bathroom. Some bathroom fans have lights or heating lamps. If you choose a fan with integrated lights, look for efficiency. Any fan installed in an insulated ceiling — for instance, if the attic is above the bathroom ceiling — must not leak air and must be rated for use under insulation.

Make sure that exhaust fans, lights and heaters in bath or shower enclosures are rated and approved for wet conditions. Newer units approved for wet conditions may include ground fault protection.
Noise

Noise determines whether people use a fan. Many people won’t use a noisy fan. Select the quietest fan in the size you need. Look for fans labelled “low noise” or “quiet,” and check for the HVI rating. If it is not rated, there is a good chance that it will be noisy. In-line fans, due to their potential remote mounting, can also be very quiet.
Fan Power Requirements and Airflows

There is more to energy efficiency than selecting an energy-efficient fan. Ducting can affect fan performance. Uninsulated, undersized, or droopy flex ducting, ineffective or dirty backdraft dampers and exhaust louvers can cut rated airflow by more than 50 per cent.
To find out if your exhaust fan is drawing air, hold a piece of toilet tissue up to the grille. The exhaust air should hold the tissue tightly to the grille. You could also check the outlet to make sure the air is leaving your house. CMHC has developed a simple test to measure flow and published it as an About Your House fact sheet titled CMHC Garbage Bag Airflow Test.
Controls
Bathroom fans connected to light switches start running when the light is turned on. Often, users turn the light off before all the moisture is exhausted after a bath or shower. An electronic timer, which is usually quieter than a mechanical timer, offers a wide range of settings. Make sure the time instructions are easy-to-understand and the timer is easy to use. You can use motion or humidity sensors, or a combination of both, to control the fan. Controls which allow you to specify operating times or maximum humidity levels are preferable to those where the operation is pre-set by the manufacturer. Use a delayed fan shut-off to keep the fan running for 15 minutes after you leave the room.
Cleaning
Fans create static electricity which attracts dirt like a magnet to the fan and its housing. The dirt can encourage mold growth and restrict air movement. Clean fans, housings, backdraft dampers and exterior flaps seasonally. A typical bathroom fan can be cleaned by pulling down the grille, and unplugging and removing the fan module. Fans in ducts and exterior fans may be difficult to clean.
Kitchen Range Hoods
A kitchen range hood must move more air than a bathroom fan — about 50 to 140 L/s (100 to 300 cfm). As a result, they are noisier, with the lowest sound rating of about 4.5 sones, although they can be relatively quiet on low speed.
The most useful units have a low noise rating, an energy-efficient fan, fluorescent lights, sound insulation, anti-vibration mounts and duct connections. For heavy duty use, select non-corrosive materials such as aluminum or stainless steel. High quality hoods may have heat sensors and a safety shut-off.
Kitchen exhaust systems should discharge outdoors. Recirculating range hoods rely on filters to capture some odours and grease. The filters are generally made of carbon which must be replaced frequently to be effective. Grease will coat carbon, making it ineffective. With recirculating fans, cooking moisture and odours will usually remain in the house.
Positioning
Range hoods are most effective when they extend out over the stove surface and are close to the stove top. Island units are less effective than wall units.
Cleaning
Range hoods usually have washable, aluminum-mesh grease filters. Better quality filters have a smaller diameter mesh over a larger surface area and can be cleaned in the dishwasher. Clean or replace grease traps and filters frequently. There are now range hoods available that allow you to remove the fan, but not the motor, for cleaning in a dishwasher.
Fire
There is always the possibility of a grease fire with a kitchen range hood exhaust. Smooth metal ducting, preferably galvanized steel, is safer in a fire than lighter assemblies.
Installation
Install fans and exhaust systems so they make the least possible noise, vibrate as little as possible and leak as little air as possible.
Anti-vibration pads or foam tape can isolate the fan housing from wood joists and drywall. You can wrap fan housings and some duct sections in rubber or vinyl noise barrier mats.
Ducts
Install exhaust systems according to the building code and manufacturer's recommendations. Straight, short duct runs, with few turns, will result in the highest fan flow.
For bathroom fans, use duct with a diameter of at least 100 mm (4 in.). For long runs, use larger, 150 mm (6 in.) diameter duct to improve airflow. It is usually best to avoid fans with 75 mm (3 in.) exhaust ports and ducts. Follow manufacturer's instructions for kitchen exhaust duct sizes.
Seal all duct joints and connections with aluminum duct tape or duct mastic (available at contractors' supply shops) to prevent air, moisture and noise leakage. Standard cloth duct tapes tend to dry out and fall off.
Seal and then insulate all ductwork running through unheated areas to avoid moisture problems. The best practice is to slant horizontal runs of duct down toward the exterior outlet to drain any condensation outside.
Exhaust air should not be released into the attic, into a wall or ceiling cavity, crawl space, basement or in the roof soffit. These locations can promote condensation damage and mold growth.
Weather Hoods, Grilles and Backdraft Dampers
Even when fans are off, stack effects and wind loads may cause outside air to enter or inside air to exhaust through fan ducting. Fans are equipped with backdraft dampers, usually in the fan box exhaust port. Check damper flaps from time to time to make sure they are clean and working. The exterior exhaust flap or louvers should be clean and in good repair to maintain unobstructed airflow and reduce air infiltration. Most exhaust ducts are fitted with a single flap exhaust hood or triple louver aluminum or plastic exhaust grille. Use weather hoods that lie flat on the wall in driveways and other places where hood-type units could be damaged.
Plastic hoods break down over time and need to be replaced. Clean exhaust hoods of lint and nesting materials seasonally to ensure that the flap or louvers are not blocked or stuck open.
Some Dangers
Chimney Connections
Some older bathrooms have static exhausts which look like upside down funnels on the ceiling. If these exhausts are hooked into the furnace chimney, disconnect them from the chimney, seal the hole in the chimney with hydraulic (expanding) cement, and install a new powered exhaust. If these static exhausts go directly outside, they can still be used, but a good fan will be more energy efficient and less drafty.
High Capacity Systems
High capacity, industrial or oversized exhaust fans, and range-top barbecue fans can cause chimney backdrafting. Backdrafting occurs when air is drawn down the chimneys, bringing dangerous combustion exhaust gases into the house. Avoid backdrafting by selecting sealed combustion heating appliances. If you have appliances with chimneys in your house, and you wish to install high capacity exhaust fans, you will need a matching supply air fan to balance house pressures.
Many ventilation contractors or salespeople are unaware of the effects of large exhaust fans on other house appliances. Make sure that your system is properly installed with supply air. At the very least, make sure that you have smoke alarms and carbon monoxide detectors to warn you if you have severe chimney backdrafting.
CMHC

Best Rate Mortgage

Terms
Bank Rates
Our Rates
6 Month
4.45%
4.45%
1 YEAR
3.20%
2.74%
2 YEARS
3.55%
2.74%
3 YEARS
3.95%
2.89%
4 YEARS
4.64%
2.99%
5 YEARS
5.24%
3.25%
7 YEARS
6.35%
3.99%
10 YEARS
6.75%
3.99%


Rates are subject to change without notice. *OAC E&OE

Variable rate mortgages from as low as Prime 

Prime Rate is 3.00%