1. Pay special attention to the front door, which is considered the "mouth" of chi (the life force of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities and good fortune enter through the front door (not to mention people buying your home). Make sure the area around the front door is clean, clutter-free and lit properly at night.

2. Chi energy can be flushed down the toilet wherever there are drains in the home. To keep the good forces in, always keep the toilet seats down and close the doors to the bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from facing toward the entryway of the room. It's even better if you can place the bed diagonally in the farthest corner.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

General

• The HST rate will be 12% (5% federal + 7% provincial)
• The PST will be eliminated completely
• There will be a partial rebate of the provincial portion of the HST of up to $20,000 on new housing
• Input tax credits will be available of HST in the same manner as under the current GST

New Housing

Currently under the GST, new housing is taxed while used housing is not. No housing sales are directly taxed under the PST, although the B.C. Ministry of Finance states that there is currently an average of 2% PST embedded in the cost of new homes from PST charges on construction materials. Under the HST, there would be no embedded tax but the full 12% HST would apply to new housing.

An HST partial rebate on new housing will be provided to purchasers in an amount equal to 5% of the purchase price up to a maximum rebate of $20,000. The Ministry's rationale is that because purchasers currently pay 2% embedded PST, the rebate would eliminate any tax increase on new housing sold for a purchase price of up to $400,000. The embedded PST aside, homes under $400,000 will be subject to a tax 2% higher than under the current system. Homes over $400,000 will be taxed at a rate 7% higher than under the current system, less a flat $20,000 rebate (in addition to the currently available GST new housing rebate currently available for prices up to $450,000). According to the Ministry of Finance, roughly half of new housing in urban B.C. is sold for over $400,000.

1. New home buyers may be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate is phased out on a straight-line basis for homes priced between $350,000 and less than $450,000.

2. British Columbia proposed rebate for new housing is equal to 5% of the purchase price up to a maximum rebate of $20,000.

In order to avoid the increased tax burden on homes priced over $400,000, vendors and purchasers may consider, wherever possible, completing the sales of new homes prior to July 1, 2010 when the new HST comes into effect. See transitional rules below for more details.

Buyers in the market for a home may be considering purchasing resale properties in order to avoid the increased tax burden on new homes. While the tax on resale properties is not directly affected by the new HST, the cost to the purchaser of these homes may still increase slightly because services associated with the purchase may be subject to increased tax. For example, home inspection charges would be subject to HST.

Apartment Buildings

Residential landlords will face increased costs under the HST, since some goods and (especially) services not currently subject to the PST and necessary in the operation of apartment buildings will be taxed under the HST. As is currently the case with GST, landlords will not be able to claim input tax credits for HST paid and will not collect HST from tenants. Expenses such as maintenance, electricity and other services required by landlords will be taxed at 12% starting July 1, 2010.

Building Lots

Builders of new homes will be entitled to claim input tax credits for most HST paid on their inputs, such as raw land, just as they currently do with the GST. However, new homes in B.C. that are currently subject to the GST will become subject to HST as described above under the New Housing heading. These rules may be subject to anticipated transitional rules.

Commercial Sales and Leasing

Commercial sales and leases will not be materially impacted by the new system. The 12% HST will apply on commercial sales and leases just as the 5% GST does under the current system and input tax credits will be available to tenants and purchasers for the full amount paid.

Real Estate Commissions

Commissions will be subject to HST in the same manner as they currently attract GST. Commercial vendors will be able to claim input tax credits on HST paid to agents, while individuals selling personal use property will not.

Transitional Rules for Pre-Sales

On July 1, 2010, many homes in B.C. will be partially constructed or the subject of incomplete transactions. Although no transitional rules have been announced by the B.C. government to date, rules applicable to such homes will undoubtedly be announced in the future. In Ontario, where a similar HST will come into effect on July 1, 2010, transitional rules were recently released as follows:

• 5% GST will apply to sales where title or possession of new housing is transferred prior to July 2010
• 12% HST will apply to sales where title and possession of new housing is transferred after June 2010 unless grandfathered
• Sale agreements entered into prior to a specified date where title and possession of new housing is transferred after June 2010 will be grandfathered. In Ontario, that specified date is June 18, 2009, the date the transitional rules were announced. If the same approach is taken here, BC's rule will be effective the date its rules are announced or alternatively the July 23, 2009 announcement date (more likely the former than the latter)
• Where a sale is grandfathered and the building is wholly or partially completed after June 2010, the builder will be liable to pay a transitional tax intended to ensure the building has a tax content equal to what it would have had if constructed wholly prior to July 2010 (i.e., PST paid on all materials). Ontario has adopted an approach to dealing with condominiums whereby the builder must pay 2% of the selling price of the unit (Ontario's estimate of the PST content) and then claim a PST transitional credit for the estimated PST paid on materials prior to July 2010 (formula based). It is unknown if BC will adopt the same approach
• Where a sale is subject to HST and construction commenced prior to July 2010, the builder will be entitled to a PST transitional credit for the estimated PST paid on materials prior to July 2010 (formula based)

Home sales have doubled since January’s near collapse in sales, association chief economist Cameron Muir said in a news release. He expects transactions recorded through the Multiple Listing Service to climb some 15 per cent from 2008 to 79,400 units.

Prices, although edging up from their declines through the last half of 2008, will remain below last year’s levels before showing slight gains again in 2010, according to Muir’s forecast.

The provincial average price for a home of $451,200 will be one per cent below the 2008 level, and should show a one-per-cent gain to $457,600 in 2010.

“When we look at the economy itself, we’re coming out of the recession, albeit slowly,” Muir said in an interview. “And the amount of demand we’ve obviously seen — year-to-date and going forward — [justifies] sales around or below the 10-year-average.”

B.C.’s 10-year average for housing resales is about 83,000 units.

Economic forecasts continue to indicate that the province’s recovery from recession will be slow, however. Central 1 Credit Union was the latest with its forecast that B.C. will experience below-average growth until 2012.

Muir’s expectation is for provincial unemployment to average 7.7 per cent this year, and go down only marginally next year.

However, he does expect the slow recovery from recession to start creating jobs that will help support demand for housing at that 10-year-average level.

Muir sees housing as a brighter spot in the economy, which will likely spill over into other areas, such as retail sales.

However, economist Helmut Pastrick, with Central 1 Credit Union, believes Muir’s forecasts are somewhat conservative given the pace of sales in recent months.

In answer to the question why, Pastrick replied, “Interest rates. It’s amazing the power of those low mortgage rates.”

Over the short term, with the Bank of Canada vowing to keep its trend-setting overnight rate at 0.25 per cent until the middle of next year, there seems to be little risk of mortgage rates rising.

Muir noted that most first-time homebuyers lock in mortgages for five-year fixed-rate terms, so they should be insulated from rising rates.

However, “if interest rates climb higher than expected, that’s going to pull demand out of the market as [a buyer’s ability to pay mortgage costs] is eroded.”

In a recent report, Scotiabank Economics senior economist Adrienne Warren noted that the average new mortgage payment in Canada in 2009 declined 26 per cent from its peak in 2007, due almost entirely to the reduction in mortgage interest rates.

Pastrick said the increase in interest rates should “be a self-correcting mechanism,” and if the province does not fall into the dreaded double-dip recession, they should rise as the overall economy improves.

“In a broader sense, at some point [low rates] run their course,” Pastrick said. “We know there will be a rate-normalization phase when economic growth does pick up.”

The recovery of sales, however, hasn’t been shared equally across the province. Metro Vancouver, Victoria and the Fraser Valley have seen relatively sharp rebounds, while the South Okanagan, the Kelowna to Vernon region and Kamloops are forecast to see much slower recoveries.

Muir expects housing starts to remain depressed for the remainder of this year, and not recover by a lot next year.

His forecast is for 14,800 new -home starts by the end of 2009, which is only slightly higher than the most recent low of 2000.

Muir added that if some of those starts do not materialize and they fall below 14,400, that will be the lowest level of new-home construction in the province since 1962.

depenner@vancouversun.com

VANCOUVER, B.C. – July 3, 2009 – The combination of low interest rates and more affordable pricing helped propel Greater Vancouver home sale numbers to the second all-time highest total for the month of June.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties increased 75.6 per cent in June 2009 to 4,259, from the 2,425 sales recorded in June 2008. The figure is just short of the record-breaking 4,333 sales which occurred in June 2005.

New listings for detached, attached and apartment properties declined 17.9 per cent to 5,372 in June 2009 compared to June 2008, when 6,546 new units were listed. However, new listings increased 13.5 per cent from May to June of this year. Total active listings in Greater Vancouver currently sit at 13,252, down 27 per cent from June 2008 and 2.9 per cent below the active listings count at the end of May 2009.

“Price reductions and low interest rates have created an improvement in affordability, which is causing the number of sales to rise to levels comparable to 2003 to 2007,” Scott Russell, REBGV president said.
 
“Many people who were reluctant to purchase a home last fall and earlier this year are returning to the market because they see conditions that appeal to their personal and financial needs,” Russell said. “However, the current marketplace is such that buyers are more inclined to walk if they don’t like the terms of an offer.”

Residential benchmark prices, as calculated by the MLSLink® Housing Price Index, declined 8.2 per cent to $518,855 in June 2009 compared to June 2008.

The number of sales of detached properties increased 81.6 per cent to 1,667 from the 918 detached sales recorded during the same period in 2008. The benchmark price for detached properties declined 8.4 per cent to $701,384 in June 2009 compared to June 2008.

The number of sales of apartment properties in June 2009 increased 69.3 per cent to 1,790, compared to 1,057 sales in June 2008. The benchmark price of an apartment property declined 8.2 per cent from June 2008 to $356,880.

The number of attached property sales in June 2009 increased 78.2 per cent to 802, compared with the 450 sales in June 2008. The benchmark price of an attached unit declined 7.3 per cent between June 2009 and 2008 to $441,620.

Bright spots in Greater Vancouver in June 2009 compared to June 2008:

Detached:

Burnaby up 109.7 per cent (151 units sold from 72)

Coquitlam up 122.2 per cent (160 units sold from 72)

Delta - South up 107.7 per cent (56 units sold from 27)

Maple Ridge/Pitt Meadows up 54.3 per cent (162 units sold from 105)

New Westminster up 104.8 per cent (43 units sold from 21)

North Vancouver up 96.2 per cent (153 units sold from 78)

Port Moody/ Belcarra up 120 per cent (33 units sold from 15)

Richmond up 77.4 per cent (204 units sold from 115)

Squamish up 107.7 per cent (27 units sold from 13)

Sunshine Coast up 33.9 per cent (75 units sold from 56)

Vancouver East up 71.2 per cent (238 units sold from 139)

Vancouver West up 85.2 per cent (200 units sold from 108)

West Vancouver/Howe Sound up 117.8 per cent (98 units sold from 45)

The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

Note: The MLSLink® Housing Price Index (HPI), established in 1995, is modeled on the Consumer Price Index (CPI) which measures the rate of price change for a basket of goods and services including food, clothing, shelter, and transportation. Instead of measuring goods and services, the HPI measures the change in the price of housing features. Thus, the HPI measures typical, pure price change (inflation or deflation).

The HPI benchmarks represent the price of a typical property within each market. The HPI takes into consideration what averages and medians do not – items such as lot size, age, number of rooms, etc. These features become the composite of the ‘typical house’ in a given area. Each month’s sales determine the current prices paid for bedrooms, bathrooms, fireplaces, etc. and apply those new values to the ‘typical’ house model.

Any donation amount is welcome and any donation amount is appreciated.

This will give children with disabilities a chance to take a 6 day summer camp and give them a place to go where they're free from life's daily challenges.

Greg promises to run, walk, crawl or roll!

Please click here to donate at Greg's webpage:

http://www.24hourrelay.com/sites/default.aspx?TeamID=1046&RunnerID=25124

For more information on any of these issues, please contact us.

“Certainly with the Bank of Canada’s target rate set at virtually zero, there’s very little room,” Soper said today at a conference in Toronto on Canada’s real estate market. The rate is “the lowest it’s been in anyone in this room’s lifetime.”

Rates for home loans have been dropping during the biggest financial crisis since the Great Depression, with some lenders offering mortgages approaching 4 percent, Soper said. That compares with an average posted five-year rate of 7.5 percent a year ago, according to the Bank of Canada. He added that home prices in Canada aren’t likely to rise “sharply” over the next two years.

Bank of Montreal, which sponsored the conference, lowered its rate for a five-year fixed-rate mortgage this month to 4.15 percent.

“We are approaching almost zero interest rates,” at the Bank of Canada, said John Turner, the Toronto-based bank’s director of mortgages. “The question becomes, how much upward pressure will there be as we come out of this recession?”

The Bank of Canada last month cut its benchmark lending rate to 0.5 percent, its lowest ever, and said it’s preparing to use policies beyond interest rate moves to revive an economy hit by a recession and tight credit markets. The next rate announcement is April 21.

Canadian existing home sales rose in February for the first time since September as buyers took advantage of lower mortgage rates and prices, according to the Canadian Real Estate Association’s Multiple Listing Service. Sales of existing homes rose 8.6 percent from January to 28,669 units.

Bank of Montreal senior economist Sal Guatieri predicted that Canada’s housing market will decline further this year, without the “crash” experienced in the U.S.

2.		Check for clutter. You’re selling you house, not your belongings. - Remove unnecessary furniture and décor items from each room. - Organize closets so that they appear roomy and spacious. - Remove all pet clutter and debris (including pet hair on furniture!). - Clear out the garage, including vehicles, when the house is showing.

3.		Strong odours can be a deal breaker! Make sure you check your home. - Remove any strong or unpleasant odours. - Air out the home prior to showings.

4.		Storing away personal items will let the buyer imagine their own belongings in the house. - Remove family photos and replace with neutral images. - Remove all personal toiletries from bathrooms and bedrooms. - Remove art, books, collections that may be considered controversial.

5.		Make the heart of your home shine – give the kitchen a “quick” facelift. - Clean & clear kitchen counters of all clutter. - Remove pictures, coupons, magnets from refrigerator. - Ensure all appliances are cleaned, inside and out. Even if not  sold with the house.

6.		Check the bathrooms. Like the kitchen – clean, clean, clean! - All surfaces are clean and free of personal items. Don’t forget the floors. - Shower curtains are clean. Shower doors are hung properly. - Towels are clean and neatly hung.

7.		A fresh coat of paint is a top selling strategy! - Walls are free of holes. - Paint walls in colours that appeal to the broadest range of buyers. - Outdated wallpaper should be replaced.

8.		How are the floors? They're a crucial key to the buyer's heart! - Carpets and hard surface flooring are clean and free from stains.

9.		Proper lighting throughout the house is key. - All light bulbs are working. Always have spares on hand. - Check for dark rooms and corners. Increase bulb wattage and  add additional ambient, task or accent lighting as needed.

10.		Windows and coverings are important details of a well maintained house. - Windows are clean. - Draperies and blinds are clean.

THE HOUSE (INSIDE & OUT) IS NOW
		CLEAN CLUTTER-FREE! DE-PERSONALIZED! ODOUR-FREE!
We hope this checklist has been helpful to you. Feel overwhelmed? Give the experts a call. We are here to help!

Katherine Van Leeuwen katherine@accentuate.ca   604-328-6479       http://click.icptrack.com/icp/relay.php?r=78211976&msgid=838857&act=GZBR&c=370156&admin=0&destination=http%3A%2F%2Fwww.accentuate.ca

Bob Rennie told The Province Friday that low mortgage rates, which have dipped below five per cent, make it a great time to buy.

"I think there's some really good buys out there," he said. "You've got to look at interest rates, and take advantage of them." The financial and corporate blowouts will be done by next September, he predicted, arguing that developers have reacted quickly to the downturn and are now eager for an upturn.

"Supply is really going to quickly show that the tap's been turned off," said Rennie. "I think we'll come out of this in 2010." For sellers, Rennie suggested that it's better to sit tight.

"If you don't have to sell, wait till the market stabilizes," he said. "If you want to give yours away and buy a good buy in this market, that's another decision." B.C.'s property developers remained optimistic Friday at the annual Urban Development Institute forecast lunch, predicting a market turnaround in the late fall.

More than 1,100 of them packed into a Vancouver hotel to hear from the experts where the property market is headed in 2009.

Veteran property developer Michael Audain predicted the current lower prices won't remain so for long.

Sales volumes of homes will pick up in the spring, Audain suggested. Prices will rise, too, he said, although he couldn't say when.

"Today, the Vancouver housing market is in a cyclical correction characterized by low volume and weak prices," said the founder of Polygon Homes.

"I do not believe it is a housing recession. The problem we face in Vancouver is primarily a serious loss of consumer confidence." Audain stressed B.C.'s fundamental value as a desirable place to live in the world.

"The year ahead will pose great challenges for us," he told developers. "But for homebuyers, it should be a year of remarkable opportunity." Fellow Vancouver developer Rob Macdonald noted that the 2010 Winter Olympics will soon be advertised in the world's media.

"We need to make the best of this Olympic opportu-nity," said Macdonald. "We want to be the place where people travel and invest." Prices should firm up from last year's declines, he said, and will start to go back up.

"We are going to see a pent-up demand forming over the next 12 months," he said.

B.C. residential sales fell 31 per cent last year, to their lowest level since 2000, and December sales were off 49 per cent.

"I expect that, while the economy is going to be weaker in 2009, real-estate sales will be higher than 2008," said Cameron Muir, chief economist with the B.C. Real Estate Association.

"While we've seen prices decline, the rate of decline has been slowing. If that trend continues, home prices should firm up over the next couple of months." Muir said the oversupply of available homes is pushing prices downward, but that could redress in the spring, paving the way for higher home prices.

"Homes today are more affordable than any time in the last two years, and affordability is a tremendous signal for potential homebuyers who've been sitting on the fence," he said.

CMHC regional economist Carol Frketich sees a slower economy in 2009, and she predicts Greater Vancouver home prices will fall about 10 per cent this year, with an average price of $535,000, compared with last year's $593,767.

"In 2009, the outlook is not rosy, but things will improve," said Frketich. "Things will improve in 2010, but the housing market could lag the economic growth."

Visitors to the Olympics are already starting to organize their trips to British Columbia and many will need to consider accommodation options in Vancouver's surrounding areas such as the Tri-Cities of, Coquitlam, Port Coquitlam and Port Moody.

This area is located at the eastern end of Burrard Inlet, which flows from Vancouver, and is one of the city's fastest growing regions.  Port Moody in particular is an outdoor lover's dream and boasts beautiful mountain and maritime vistas.

Those interested in the beauty of the local wilderness will find Buntzen Lake recreation area open all year round. The lake is surrounded by forest-covered mountains, which contain many well-maintained hikes of varying difficulty.

Port Moody is also the self-described "City of the Arts" and has numerous galleries and arts facilities, as well as a diverse mix of restaurants, cafes, boutiques and markets. It is a vibrant community with great shopping and dining, and several spas and wellness centres in the historic Moody Centre and the modern Newport Village.

Visitors seeking the convenience of indoor shopping will find over 200 stores at the nearby Coquitlam Centre mall.

The Tri-Cities' artistic talents are on show at the dozen or so local art galleries; the Port Moody Civic Centre, which hosts live artistic performances, special events and theatre; and at the Port Moody Arts Centre, which has four galleries and a gift shop.

Ski/snowboard buffs should visit the North Shore Mountains' excellent ski facilities. Mount Seymour, Grouse Mountain and Cypress Mountain, the latter which will host freestyle skiing and snowboard during the 2010 Olympic Winter Games, are located less than an hour's drive from the Tri-Cities.

Port Moody is 23 km (14.5 mi) from Vancouver, and 140 km (87 mi), or approximately 2 hours from Whistler. For more Metro Vancouver details visit www.2010DestinationPlanner.com.

If you haven’t already read the article, you can do so right here.

While Maclean’s criticizes the data produced from real estate industry sources, it claims that the Canadian real estate market will soon follow the US housing market into a steep decline which will take years to come out of.

This argument is predicated on the predictions of a real estate futures market. The problem is that the company the article claims to be running this futures market denies the market exists (in a letter that Teranet wrote to the OREA). The company, Teranet, also denies they were ever contacted about the article (as does the CREA).

The article also claims that Realtors® have a vested interest in pumping up the market. It argues that if markets decline, there are fewer transactions and this results in less money for Realtors®.

That is true. In a declining market there do tend to be fewer transactions and a smaller pie for all Realtors® to share. However, for those of us in the industry for the long-term we’d be awfully short-sighted to only wear rose-coloured glasses. We are professionals. We know that real estate is cyclical and has ups and downs.

Personally, as Realtors® it’s in our interest to be honest with you. Being honest and upfront about current Greater Vancouver real estate market conditions earns us respect and credibility. We don’t tell people just what they want to hear, we report to them what are the facts of the current market…and we believe that the vast majority of Realtors® look at it the same way.

It’s an interesting read. However, given some of the glaring errors in the article, it does put into question it’s validity.

The collapse in crude prices is causing a lot of financial misery in Alberta and every other oil-producing region. But the benefit to energy consumers — individual and corporate — is huge. This massive reduction in energy costs will be a major contributor to recovery from the global economic recession.

The problems created by moribund oil prices are reported daily. Oilsands projects cancelled or postponed. Layoffs in the oil-fields and head offices. The Alberta government will go from massive surpluses to deficits. Hundreds of billions of wealth in the form of oil company shares and real estate values vapourized. Many oil and gas developers and their myriad of support companies will disappear this year.

But the enormity and impact of the savings to everyone who consumes hydrocarbon fuel must be calculated to be appreciated. The current economic mess is being blamed on a credit bubble and U. S. subprime mortgages. The real villain is high oil prices, meaning that substantially lower energy costs should accelerate a turnaround.

The world produces and consumes about 87 million barrels of oil daily. The price is down from $147 in July to about $37, a reduction of $110 a barrel. Those purchasing petroleum and its byproducts are paying $9.6 billion per day less than six months ago.

Annualized, this will save the world about $3.5 trillion per year.

This is a huge number, greater than the gross domestic product of every country in the world except the United States and Japan.

According to Washington’s Department of Energy, the United States burns one billion litres of gasoline and 492 million litres of diesel fuel each day. The cost is down about $2.50 per gallon ($0.66 per litre) from its peak last summer. Using an average reduction of $2 per gallon, this will leave Americans $300 billion richer each year.

For incoming president-elect Barack Obama, this is a financial stimulus gift from heaven. The economy enjoys a massive cash injection and the federal government doesn’t borrow a nickel.

The fuel cost savings in Canada are also enormous. According to the Canadian Association of Petroleum Producers, in 2007 we purchased nearly 34 billion litres of gasoline and 28 million litres of diesel fuel. At an average cost reduction of $0.60 per litre, Canadians will save $42 billion annually. No federal political party –or coalition of left-leaning politicians–would dream of a deficit-funded, federal economic aid package of this magnitude.

There are other, indirect financial benefits of the oil price collapse.

The significant accumulation of wealth by oil-producing countries has created a new class of petro-bullies; governments with enough extra cash to be able to make trouble well beyond their borders. Russia, Iran and Venezuela are but three. Having these countries focused on domestic problems will reduce western defence spending.

Russia is largest and most influential, so its readjustment is the best reported. Foreign currency reserves are being used to support the ruble to prevent further erosion of the wealth of ordinary Russians. The state is also bailing out the infamous oligarchs who, not surprisingly, accumulated a lot of their wealth with borrowed money. Levies have been placed on imported cars to protect a pathetic domestic auto industry. More store shelves are going empty.

Russia’s recent economic success and its attempts to re-establish itself as a global military superpower have been bankrolled by high oil prices. How the mighty have fallen.

As the price of oil rose for six straight years, analysts have wondered when the increased cost would finally result in recession, reduced demand and collapsed prices. This has been the pattern for 35 years.

It was perplexing to many how oil prices and demand could both rise simultaneously. Noted CIBC economist Jeff Rubin was one of the few who blamed the current financial mess on the relentless rise in the price of petroleum.

The credit bubble also came into play. As consumers endured lower disposable income because of rising energy costs, they could borrow their way out of it with home equity loans or another credit card. Finally, the combination of record high oil prices and record household debt reached the point of no return.

No wonder everything fell so hard, so fast and so far.

Alberta’s unhappiness will be a significant contributor to the financial recovery of the rest of the world.

If high prices caused the problem, low prices should fix it. It’s comforting that there’s some good news out there somewhere

http://uk.reuters.com/article/marketsNewsUS/idUKN0643439020090106

Hillside and hilltop views are more valuable than views farther down, but their value can be offset by difficult access, poor slope stability, wind exposure and increased fire hazards.

Zoning ordinances increasingly discourage building on the top of hills or ridges because this destroys other people’s view of an undisturbed skyline. But good site planning has always put the premium home sites slightly below the top of the hill. This is what the Army calls the “military crest,” because it provides maximum views combined with concealment and protection.


Width

A wider view is more valuable than a narrow view. A hilltop view can encompass a full 360 degree circle, while the typical ocean front view might be 180 degrees at most. However, there are some ocean front homes built on points of land which have 270 degree ocean views! Many things can limit the width of a view, including land forms, trees and the house next door.


Obstructability

An unobstructable view is more valuable than an obstructable one. The property may have a fabulous view, but what happens when the neighbor builds a tall house or lets her trees grow? No more view. In rare cases, a view may be protected by an easement over adjacent properties, or by the restrictions of a homeowners association.


Permanence

A permanent view is more valuable than a temporary one. A forest view is worth more if the trees are protected within a state park than if they’re scheduled for harvest on commercial timber land. Also, that vineyard or orchard next door could be tomorrow’s housing subdivision. Not all open space is permanent. It’s important to check the surrounding zoning, and even that can change when powerful market forces prevail.


View Capture

How well are the views captured by the design of the house or building? When the best views can only be seen from the second level, a house will sometimes have a “reverse” floor plan (kitchen and living room upstairs, bedrooms downstairs). This usually has a negative influence on value, because most buyers prefer single level or conventional two level floor plans.

When the best views are to the north, a house will sometimes have a “reverse” orientation. This can decrease value, because most buyers prefer local homes to be oriented to the south, toward the sun and away from the prevailing wind.

Sometimes a house can capture a much better view by adding or enlarging windows, altering the floor plan or removing a few trees. Smart buyers who can see remodeling potential can occasionally pick up a bargain.

Views can add considerable value to real estate, but sometimes our emotional response to a view can override good judgement and common sense. Buyers are becoming more aware of fire, flood and geologic hazards; and they’re paying closer attention to details like access, solar exposure and wind protection. Also, zoning ordinances are becoming more strict about bluff setbacks, building in floodplains and hillside development.

"Residential mortgage consumers remain remarkably positive as they weather the financial storm," the Canadian Association of Accredited Mortgage Professionals said in releasing the results of a mid-October survey.

Attitudes toward local conditions have shifted only slightly with 38 per cent of Canadians believing now is a good time to purchase a house, and still outweighing the 32 per cent who believe it is a bad time, it said in releasing the findings of the online survey of 2,000 Canadians.

Meanwhile, only 0.28 per cent of mortgages are in arrears, a proportion that is not only low but also steady, it said. And an overwhelming 84 per cent of homeowners are satisfied with their mortgages.

Still, the proportion expecting home prices to fall has more than doubled from last fall to 35 per cent, while the proportion expecting prices to go up has dropped by half to 20 per cent from 40 per cent.

"Westerners, who have endured particularly hot housing markets, are the most negative," it said, noting that's especially the case in British Columbia, where 48 per cent expect prices to fall.

Borrowers expect changes in their local housing markets, yet remain confident in a stable Canadian mortgage system, said Jim Murphy, association president, noting that it anticipated mortgage credit growth would slow, but remain relatively strong.

The survey was conducted during a month in which home sales plunged 14 per cent to a six-year low and during which prices tumbled 10 per cent from a year earlier.

Despite that sharp fall in home sales and prices, the mortgage association said that the Canadian housing market has avoided the price and sales meltdown in the U.S. housing market and that the Canadian mortgage market is supported by low and steady interest rates, better underwriting processes, different products and normal re-sale activity levels.

"Canada is a financially conservative country where consumers are able to meet the terms of their mortgages and buying decisions are based on affordability," said association chief economist Will Dunning. "This contributes to a solid real estate market that will not experience the same drop off we see south of the border."

The survey results were released as reports out of the U.S. continued to suggest the housing market there has not yet hit bottom with an already deeply depressed index of home-building activity hitting a record low in November, rather than stabilizing as had been expected.

Meanwhile, in Canada a lot of homeowners continued to tap the equity in their homes, with about one in five borrowers this year taking out an average $41,000 out, up 20 per cent from last year.

Fifty-six per cent of those surveyed said they used the money for debt consolidation and repayment, and 30 per cent for home repairs and renovation.

New home buyers, meanwhile, also took advantage of new alternative mortgage products, including some that are no longer available, with a 13 per cent increase to 50 per cent in the proportion of new mortgages last year that were for amortizations longer than the traditional 25 years.