The country’s housing market showed remarkable strength in the traditionally slower fourth quarter as sales activity in most major markets stimulated robust year-over-year increases in average prices, according to the fourth quarter 2005 Royal LePage Survey of Canadian House Prices.

The highest average price appreciation in the fourth quarter occurred in detached bungalows, which rose to $269,810 (+9.1%), followed by standard condominiums, which increased to $190,123 (+7.0%), and standard two-storey properties, which rose to $327,269 (+7.0%).

Homeowners in the energy-producing West saw the value of their properties appreciate at a much higher rate than elsewhere in Canada, reflecting a shortage in supply relative to the booming demand for home ownership. These areas enjoyed growth well above the national average as their thriving economies generated strong income growth and attracted increased in-migration to the region. In contrast, markets east of Manitoba eased towards more stabilized conditions in the quarter as inventory levels rose and demand moderated.

“The Canadian housing market is clearly reflecting the state-of-the-nation. In Central and Atlantic Canada, a sound growing economy is fuelling generous activity levels and moderate price increases; in the roaring West, demand for home ownership is overwhelming supply, and prices have surged upward,” said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.

Major markets in Alberta, British Columbia and Manitoba experienced the country’s highest price increases, with double-digit gains seen across all three housing categories. Victoria led the country in price appreciation for the fourth consecutive quarter with prices in its relatively smaller condominium market rising a dramatic 30 per cent over the same period in 2004. Calgary and Edmonton had the tightest inventory supplies as rising demand depleted active listings in these markets.

Added Soper: “The country’s economy is operating at full capacity and is expected to do so through 2007. A tight labour market will mean higher salaries and more money in people’s pockets. That money will continue to find its way into housing, as the family home continues to be one of the soundest long term investments a Canadian can make. Balancing this, we will see moderately higher interest rates to thwart inflation, which will help keep a lid on house price increases in most of the country.”

Are you considering selling your home this spring? As we head into the year’s busiest real estate season, ensuring that your home is in its best condition will help attract maximum interest. Here are some tried and true steps to follow:

Begin the purge.  Put your house on a diet. Give consideration to the appeal of a tidy and organized house and begin removing or donating both the things that clutter your home and the things you don’t want to move with you. Choose a drawer, shelf or storage bin, and begin streamlining, room-by-room, a little bit at a time. Seasonal changes can create great opportunities for sorting unworn clothes. You’ll be happy to have less on moving day and your closets will look bigger to potential buyers. A garage sale is a great way to purge before your home’s first showing.

Fix what’s broken or damaged.  Determine what house maintenance is in order. To pass a home inspection, certain repairs may be unavoidable. Taking care of these issues now will ease your burden later and improve your sales opportunities. Simple repairs are also well worth the effort. Painting those chipped shutters and replacing the broken banister rail will provide a return in creating the right impression for a timely sale.

Think like a buyer.  This can be the hardest step since we love our homes and generally assume others will too. Accept that potential buyers have different tastes and consider hiring a house staging professional or ‘fluffer’ who can objectively determine what needs to change. Consider basic staging techniques such as removing clutter; putting away personal items like photos and trophies; cleaning and sanitizing inside and out, from top to bottom; freshening and neutralizing your colour scheme; making your entrance way appealing; eliminating pet and food odours; enhancing the illusion of space, beautifying your backyard. See the 2006 Royal LePage House Staging Report for more information.

Contact your Realtor.  I am your partner in selling what is likely your largest asset. I can assist you in getting your home prepared for sale and in helping you understand the current buying and selling real estate markets. As an experienced, attentive and committed Realtor, I know the market and can put the strength of an established, leading real estate brand to work for you. It’s my goal to help you sell your home in the shortest amount of time possible and at the best possible price.

Alternatively, if you have a friend, relative or colleague, who is considering buying or selling, please tell them about me. Your referrals are genuinely appreciated. I will treat your friends and family with the care they deserve so you can be proud you referred me.

Home improvements, be they decorating, designing or renovating, are becoming almost as common as the annual summer holiday! However, like clothes, shoes and diets, fashions change. What’s the new best thing? Here’s what the experts are saying:

• On average, renovations are getting bigger, and people are tending to want high-end, quality products. A continuous upgrade approach is popular with fewer people waiting several years between projects.
• With children staying home longer and an increased desire to care for the aging parents within our homes, there is a subtle upswing in requests for multi-generational suites. Similarly, wider doorways and entrances, non-skid floors, lever handles and safety rails are more frequently requested.
• Retrofitting to improve air quality and energy efficiency is important, particularly during major renovations.
• A popular home addition coming out of Europe is a scullery, or as it is sometimes called, a ‘dirty kitchen’. A scullery is typically about half the size of the home’s eat-in kitchen, and allows the host to hide the messier aspects of cooking from guests while entertaining. It features a big sink for cleaning, a large cutting/preparation area and storage for appliances and oversized items.
• Other European trends include appliances in vibrant hues. And, rather than traditional large refrigerators, ultra-modern kitchens are now featuring smaller units, such as under-the-counter pullout freezers and cooler drawers for fruits and vegetables.
• If you are seeking the best return for your renovation dollar, your top three renovation choices remain unchanged: kitchen renovations, bathroom renovations and interior painting. According to the Appraisal Institute of Canada’s 2004 Home Renovation Survey, these upgrades will net you a return in the range of 70 percent to100 percent of your investment.

Call Before You Dig
Is your home improvement investment worth the effort and expense? I can help you understand what your planned home renovation may do to improve your home’s resale value in today’s market.