Feng Shui for Kitchens

Kitchens are considered one of most important rooms in the house. They represent the hearth and home and should be clean, well-lit, happy places for friends and family to gather and connect.

They are also a key place for you and your family’s health, which is closely connected to wealth. Having good health is paramount if we are to be able to successfully go out into the world and make a living.

Feng Shui for KitchensThis is one of the more active or yang areas of the home (see Erica Sofrina’s Yin-Yang article), so bring in brighter colors, active, happy and inspiring artwork and brighter lighting.

Get Organized

Kitchens are magnets for everything to land, so you want to head it off at the pass and create places for everything to land. Vowing we are going to turn over a new leaf and keep counters clutter-free is often self-defeating.

Give the Small Stuff a Place to Land

Install a key rack/holder on the wall near the main entry door and train yourself to always hang them there when you come in. A small table next to the door with a basket on top is another option for organizing keys and spare change. Give them a place to land and discipline yourself to always put them in their designated place when you come in. After one week it will become a habit.

Mail and papers can be dealt with in many ways depending upon how you receive them. I get mine from the post office, which is great because I de-clutter all junk mail and shed all unnecessary envelopes into their recycle bins before leaving the premises. If you have to walk to get your mail, try passing by your recycle containers on the way back and do the same. Always try to deal with junk mail the instant you get it and bring into your home just what is necessary.

Have an attractive basket on the kitchen counter where everything seems to be deposited. It should have a lid and be large enough to handle a week’s worth of mail and papers. Commit to emptying it and sorting everything out at least weekly. If the papers haven’t been read – recycle them. For unread magazines, give yourself a place to store them and limit it to five issues. As you bring in new ones, either recycle them or deliver them to places that would welcome them such as senior centers, beauty salons or non-profits that can use them. Remember the three R’s – Recycle, Reduce, Reuse.

Organizers for Larger Objects

Feng Shui Furniture OrganizerPottery Barn and IKEA have an inexpensive piece of furniture that is great for organizing some of the larger things that land in the kitchen. It has hooks to hold book bags and coats with drawers, cabinets or cubbies below to hold multiple articles. Shoes for a shoeless home can be stored there, as well as books and homework that needs to be addressed later. If you enter the kitchen from the garage, train family members to unload these objects here.

Refrigerator Clutter

Refrigerator doors are great places to celebrate achievements and display pictures of friends and loved ones. Use this prime real estate for affirmations, vision boards and celebrations. The problem is that the few pictures displayed tend to have offspring and now you have a cluttered hodgepodge. If this has happened, take them all down, store in a shoebox and rotate five or six pictures each week giving everything and everyone a place of honor.

Clutter Clear Drawers and Cupboards

Kitchens are great places to do some quick purging of clutter and the junk drawer is a great place to start. If you haven’t used it in six months, deep six it. You will become inspired and will want to continue. Next tackle the pan cupboard and utensils drawers. You may be surprised at how many of those objects that were supposed to save you time just takes up space. Pack them up and donate to a charity that can use it for the benefit of others.

Clear Counter Tops

Discipline yourself to keep objects off the counters that you do not use on a daily basis such as toasters, blenders, mixers and Cuisinarts. Store them in your newly cleared cupboards and replace with a few lovely vases and/or objects that inspire you. Juxtaposing functional cooking objects with whimsical or uplifting ones will greatly enhance the cooking experience and bring a higher vibrational energy into the food you are preparing.

Safety is Paramount

Safety is always of utmost importance in Feng Shui. We not only look at the things that are obviously dangerous, but the subtle things. Anything that looks like a weapon will keep us on ‘alert’ in the space. Kitchen knives should be put out of sight in knife blocks or drawers designed for them. Remove all heavy pans, hooks or objects hanging off walls, ceilings and up high on cabinets. Store up high only lighter things such as baskets that will not injure if they fall. Remove all flammable objects from close proximity to the stove. You will be amazed how much more you enjoy being in the space when the pans hanging on unfriendly hooks are removed.

The Importance of the Stove

The stove is considered extremely important and is connected to our health and wealth. Stoves and burners should always be clean and in working order and ideally be in the empowered position, where the cook can see the action. If they have their back to the door while cooking, put a mirror or a reflective metal piece behind the stove so they can see what is going on behind. If you are remodeling your kitchen anyway, the happiest place for the stove is on a cooking island where the important chef will always feel like a vital part of the family while preparing meals.

Have an Attractive place to Share Meals without Televisions

Sharing a meal with family and loved ones should be an intimate and nurturing experience. It is an important time to share our day, calm down and replenish our bodies. You need a good place to eat everyday, a place for people to connect and communicate. It is important to have comfortable chairs and an inspiring piece of artwork on the wall. Television shows are fine to watch as a family but are not conducive to good conversation or good digestion during a meal. Discipline yourself to always keep them off during meals.

If you live alone, make a ritual of eating. Turn off the television, light a candle, put on inspiring music and treat yourself as if you are the important person coming to dinner.

Feng Shui - Bring the Earth Element in KitchensBring in the Earth Element

Balancing the Five Elements in each room is an important part of Feng Shui for the home. Kitchens should have a good amount of the earth element represented by earth tones, squares and rectangles and things made from earth such as tiles, adobe and stucco. The earth element encourages us to be in our bodies which is important in kitchens where we are working with potentially dangerous things like fire and knives.

If you were planning on remodeling your kitchen, a good choice for the counter tops would be earthy granites or tiles in earth tones. There are beautiful tiles made of recycled glass that look spectacular on counter tops and will support our commitment to  green building. Avoid darker tone in counter-top materials such as black, dark green or dark blues.  These represent the water element and encourage us to be out of our bodies, which is counterproductive to the activities we need to perform in kitchens.  If you already have a lot of black and metal you can add still add the earth element by bringing these colors onto the walls, adding terracotta or earth- tone pottery, table mats and table cloths.

Bring in Nature

Feng Shui - Inspire with NatureWe are all deeply connected to the natural world and biologically programmed to feel a sense of belonging and connection when we encounter it. Bringing in vibrant plants along with  pictures and objects made from natural elements will energize your kitchen and make every one feel truly ‘at home’ here.

Creating a nurturing, happy, organized and inspiring kitchen will support the needs of the family while uplifting their souls, making your hearth truly the heart of your home!

Erica Sofrina is an internationally acclaimed speaker, teacher, consultant and author. She is known for her ability to translate Feng Shui into terms that are easy to understand and apply for western audiences. For more information about Erica Sofrina, see her Yin Yang article
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Preventing Wet Basements from snow & rain in Calgary

Helpful Home Maintenance Tips to Prevent Wet Basements from melting snow and rain in Calgary by Merv Stark, Calgary Home Inspector.

There are various items of concern that I have encountered, as a Registered Home Inspector (RHI), over the past several years that are ongoing at homes that I inspect.  This spring may become challenging as we have had to deal with increased amounts of snow on roofs, snow in yards that has turned into ice trapping the melting snow water and  preventing it from going away from homes, plus frozen downspouts which prevents water from being expelled from the surface area. I expect to see more water around the perimeter of homes this year than I have seen in the last several years of having done inspections. I have heard many stories from past clients about water damaged basements and as this is a concern that usually has easy exterior remedies, I have put several diagrams and pictures in this article for your convenience and understanding.

The gutters on your home are very important. These are installed around the home by the builders who also provide downspouts that extend away from the home so water will not come back towards the foundation. Occasionally I have found gutters full of leaves, dirt, past construction materials and/or with tennis balls and children’s toys.  I have even had trees over a foot tall growing in gutters! Gutters should be cleaned annually so water can flow proper.

In the late winter/ early spring time, I find most downspouts not in use or frozen shut with water spillage backed up to the foundation wall.  Some downspouts have been blown open several feet above the ground from the freeze/thaw cycle that can occur daily during our winters inCalgaryand area.   A lot of downspouts have had the elbow installed too low so the entire downspout makes soil contact.  Ground level spouts will freeze up quicker than a downspout that is elevated at the discharge end.  Our wonderful Chinook winds cause roof snow melting but with the frost remaining in the ground, downspouts at ground level can freeze up.  The warm Chinook air flow should be allowed to go around the entire pipe creating a continuous melt within the pipe. 

Water in Basements - Downspouts in Winter

Weeping Tile No Cap

Ice in Downspout

Icy Downspout

Downspouts that discharge into a weeping tile (Black corrugated pipes that are vertical and general found at newer homes at basement window well areas and at downspout discharge locations) can also freeze shut near the top.

Note: This particular weeping tile does not have a cap on it.  Children can drop rocks and garbage down them preventing their ability to drain the water properly away. Water can then seep into the basement as it has to go somewhere.

Downspout Extensions should be long so that water doesn't collect at foundation wall

This picture is designed for summer discharge. I prefer the discharge opening not to touch the ground during the winter, but you must be careful of a possible trip hazard. Also you should not drain onto a sidewalk where the water could freeze causing a slippery ice trip hazard. Frozen ice on the concrete will also eventually cause damage through surface damage and possible cracking since the water may get under the concrete and can cause the concrete to heave, thus creating cracks. Ask your home inspector for a possible solution if he does not volunteer a comment.

Graded Slopes Critical for water Drainage away from home foundation

Graded Slope Critical

A good builder will provide a proper graded ground slope for this water drainage to leave your lot.  However, the ground around the new home will settle after a few years and a reverse drainage system may develop. This settlement can be several inches as noted in the picture below and I am always surprised how many people do not notice or do not care. Now add the fact the neighbor may have added soil around his home. You now have potential for a moat around your castle. Soil must be added and graded to bring a proper slope away from your home.

Neighbor Home contribution to water in your basement

Home next door

The season for potential water in your basement is now coming to a basement near you. Are you ready?   A comment that I put in my reports for my clients contains the amount of water that an average lot is exposed to throughout the year, as reported from Canada Mortgage and Housing Corporation, CMHC, a strong supporter of the Canadian Association of Home and Property Inspectors, CAHPI. Monitoring your home is discussed below may prevent water damage.

  • It should be understood that it is impossible to predict the severity or frequency of moisture penetration to a home. Almost all basements exhibit signs of moisture penetration and virtually all basements can indeed leak at some point in time. Further monitoring of the foundation will be required to determine what improvements, if any, will be required. Basement leakage rarely affects the structural integrity of a home.
Lengthen and Reposition Downspouts

Flooding potential

  • The vast majority of basement leakage problems are the result of insufficient control of storm water at the surface. The ground around the house should be sloped to encourage water to flow away from the foundations. Gutters and downspouts should act to collect roof water and drain the water at least five (5) feet from the foundation or into a functional storm sewer. Downspouts that are clogged or broken below grade level, or that discharge too close to the foundation are the most common source of basement leakage.
  •  In the event that basement leakage problems are experienced, lot and roof drainage improvements should be undertaken as a first step. Please beware of contractors who recommend expensive solutions. Excavation, damp-proofing and/or the installation of drainage tiles should be a last resort. In some cases, however, it is necessary. Your plans for using the basement may also influence the approach taken to curing any dampness that is experienced.

Annual Precipitation

Causes of Wet Basement Problems
Wet Basement Causes

-Annually the province receives about 355 millimeter of rain from May to October. On a typical 40 x 110 foot lot, this will produce 144,800 liters of water. 

- 6 millimeter of rain on the 40 x 110 foot lot would produce 2,596 liters of water. 

- The 355 millimeters of rain on a roof of a 2000 square foot house would produce more than 167,200 liters of water, which must be directed away from the foundation of the home. 

- The 6 millimeters of rain on the same roof would produce 1,200 liters of water that must be directed away from the foundation of the home.

Wooden Decks and Water Drainage

House Drainage should not be beside wooden decks

Deck Drainage

Another potential water problem I encounter is wooden decks that have the house drainage beside the deck. The soil below a deck is very rarely graded for water to be moved away from the home. With soil settling under the deck, causing low surface areas, the water will go under the deck creating ponds where it slowly evaporates. This particular deck, below, shows the water draining directly under the deck, it has no ventilation and will quickly rot due to the moisture trapped under the deck. Grading should be planned and maintained around your entire home including under all decking. The grading of the property can determine where the water will go!

Point Downspouts away from Windows and Foundation

Point Downspout Away

Frozen Sidewalks

At least this elbow is not pointed at the basement window. The potential for the discharge water to freeze on the sidewalk is a concern. The window well is inadequate as a frozen surface could allow water entry that can freeze in the pit opening. Water may have gained access to this area in the past and lifted the sidewalk creating the crack as observed in this photograph. Several years from now the crack may be bigger, chipped out, and several years after that you may get two elevations creating a possible trip hazard. To repair a poured sidewalk, you will need to get someone to jackhammer out the concrete, remove the debris, add gravel, new rebar, then pour new concrete. The cost may easily be over a thousand dollars. I think the downspout relocation would have been a more logical choice a decade earlier and could have been done with basic tools on a warm sunny day when you could have also bought a few extra feet of downspouts.

Remove extra soil from Window

High Soil Level

Let’s use a different scenario.  Our first spring rain, and it’s a heavy downpour.  Frost is still in the ground.  Soil is right up to the window.  Guess where the rain water will go! Your home inspector should recommend you remove several inches of soil below the window and install a window well if needed.

Window Well Grading

Window Well Grading

Spring is a time for enjoying the out of doors and doing some home and yard maintenance. Caring for your home by insuring that your gutters are cleaned before the winter, that your downspouts are installed properly with drainage away from your home and walkways, that proper grading away from your home is maintained, and window wells are protected from excess water will allow you to put on the warm weather gear and enjoy spring in Calgary rather than watching the moat grow around your home, and clean up the water mess in the basement. 

Merv Stark
Starkpro Property Inspections
CAPHI -RHI

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Single Family Home Sales Drive Calgary Housing Market

MLS Market Values - Calgary Housing Market Stats

Calgary MLS Market Values March 2011

According to figures released by CREB® on April 1, 2011, Calgary Metro sales remained at levels similar to the first quarter of 2010. Improved sales in the single family market were largely offset by declining sales in the condominium market, indicating that the gradual recovery will continue to be driven by the single family market for the better portion of the year.

Single family home sales in the first quarter of 2011 were 3,309, a 4% increase over 2010. The combination of stable home prices, low interest rates and year-over-year improvements in employment are the primary factors fueling the growth.

March 2011 single family home sales totaled 1,355, a 3% decrease over 2010 figures. The decline in sales was accompanied by a 19% year-over-year decline in new listings. As a result, inventory remained at three months, which indicates a balanced single family market.

The NW sector boasted the largest gains in single family home sales in the first quarter of 2011 with 1,198 sales, a 13% increase over 2010. Sales in the SE posted quarterly gains of 5%, while the SW remained relatively unchanged and NE sales declined by 9%.

The SW sector recorded the highest single family average home price in the first quarter of 2011 at $570,748, while average home prices in the NW and SE were $464,990 and $422,821 respectively. The NE sector continues to remain the most affordable, with average prices hovering around $282,713.

“Average single family home prices remain relatively stable compared to the first quarter of last year, as people continue to purchase more homes at the lower end of the price spectrum,” says Sano Stante, president of CREB®. “The rise in sales has been primarily offset by a corresponding increase in listings, resulting in stable average prices.”

Calgary Metro average price of single family homes in March 2011 was $462,947, a 2% decline from 2010, and virtually unchanged from the previous month. Meanwhile, the median price declined by 5% compared to 2010.

Quarterly condominium sales continue to fall over levels recorded in the previous year, down by 11% compared to the first quarter of 2010, while quarterly average prices are down by 1%. It is important to note the quarterly average price of condominiums is skewed upwards for 2011 due to the sale of a $4.1 million condominium. If we remove this sale, quarterly average price would have declined by over 2%.

The average price of condominiums in March 2011 was $280,781, while the median price was $256,000, a respected 5% drop and 7%, respectively, from levels recorded in March 2010.

Improved selection of affordable single family homes and higher inventory levels of new condominiums have reduced the demand for resale of condominiums. It is anticipated that demand should gradually recover in the latter half of the year, as Calgary’s economic recovery continues to take hold. “This provides a window of opportunity for condo buyers early in the year to discover a large selection of available product at affordable prices,” says Stante.

Calgary’s labour market has shown some recent improvements, however, it is still in the early stages of recovery as job growth remains below the 5-year average. Improvements in the energy sector are anticipated to show stronger job growth in the second half of the year, providing the foundation for continued recovery in the housing market.

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Yin and Yang: The Key to a Balanced Home by Erica Sofrina

Have you ever been in a room that didn’t feel good to be in but you couldn’t figure out what was wrong? Chances are the Yin/Yang components were out of balance.

Yin and Yang is at the foundation of the Ancient Practice of Feng Shui. It has to do with the recognition that the universe is made up of opposite forces of energy, which cannot exist without each other. They are finely balanced and, like polar sides of a magnet, are innately attracted to each other.

Yin and Yang

Yin and Yang

The Yin/Yang symbol depicts two fish gliding together in perfect balance. Each carrying components of the other; the black fish with the white eye and the white fish with the black eye. The two swim together in perfect harmony creating a circle, the most ancient symbol depicting wholeness.

Feng Shui acknowledges that we are ancient creatures who naturally seek balance. If our living spaces are not balanced, our lives feel out of balance as well. By learning to work with the Yin and Yang components in our homes, we create supportive spaces that bring our lives back into harmony as well.

The concept of Yin refers to the feminine principle, which is passive, dark and yielding. Yang refers to the male principle, which is bright, active and extroverted.

Examples of yin and yang decor

In physical environments Yin objects would be reflected by circular shapes, darker more muted colors, lower darker rooms, upholstered furniture of soft chenille, velvet and corduroy fabrics, carpeting and area rugs,  and smaller detailed prints. In building materials adobe, brick and stucco would be considered more Yin materials. In design history, the eras that incorporated Yin qualities would be the Victorian era, Louis IV and VI and the Baroque period.

In architecture the Bauhaus period in Germany from around 1919 – 1933 was the beginning of modernist design utilizing more Yang components. Slick glass and mirrors, metal and plastics, high, vast ceilings, bright angular spaces, bold stripes and geometric patterns, square, hard angular furniture without detail, flooring of hard woods, cement and tile, all reflect Yang design materials and features.

In balancing a home we want to first determine the use of the space and then incorporate the Yin and Yang qualities appropriate for it. Passive spaces should incorporate more Yin features and active spaces more Yang features. The key, however, is to make sure we always have some of both qualities and not an over abundance of either.

Yin rooms are the places you want the energy to calm down to support rest, relaxation and rejuvenation. Yin rooms would be bedrooms, dining rooms, living rooms, possibly family rooms and bathrooms.

This is an example of a Yin bedroom which is designed for rest and relaxation

This is an example of a Yin bedroom which is designed for rest and relaxation

In these rooms we would want to bring in more Yin features such as comfy furniture, more muted colors and lighting, plush fabrics and more detailed patterns and accessories. Having a bright, light ultra-modern bedroom with high ceilings and slick fabrics would not serve the occupants and will often translate to sleep disorders. (See my article on Feng Shui for Children’s Rooms and for Teen’s Bedrooms).

Examples of yang spaces

Yang spaces are the more active spaces such as children’s playrooms, kitchens, gyms, home offices, laundry rooms, family rooms (depending upon the use), hallways and garages. These spaces should incorporate more Yang components with brighter lighting,  whites and/or bolder colors, more angular shaped furniture and accessories with less detail.

This is an example of an active Yang space. Although we don't want sharp-edge​d furniture anywhere in the home.

This is an example of an active Yang space. Although we don't want sharp-edge d furniture anywhere in the home.

In using modern Yang qualities make sure to choose furniture with more rounded edges. Sharp-edged furniture is considered weapon-like in Feng Shui. It may be subtle, but you will never fully relax in a space that has objects that can injure you. Our homes always need to be ‘people friendly’ no matter the style of decor you are drawn to.

We also want to bring in all of the Five Elements, which include plants and things that are either from the natural world or represent nature.  (See my article on bringing nature into the home)* Ultra modern homes devoid of nature will never allow us to feel truly ‘at home’ because of our deep innate connection to the natural world. (See my article on the Five Elements).

The key is to have a balance of both Yin and Yang qualities in every room, emphasizing more Yin or Yang features depending upon the use of the room. Yang features will make the space more active and Yin features generate a more restful atmosphere. Make sure your design choices and styles are serving the people who need to occupy the space, and not the other way around!

Once we have achieved an appropriate Yin/Yang balance in each room, we will be well on our way to creating a balanced and harmonious home that supports, uplifts and nurtures our lives!

*Another powerful component of Feng Shui is working with balancing the Five Elements in our home. For those of you who would like to learn more, I am offering a free color Five Elements map to all of my readers. Click here to receive your free copy (pdf).


About the Author, Erica Sofrina:

Erica Sofrina

Erica Sofrina

Erica is an internationally acclaimed speaker, teacher, consultant and author, and the founder of the West Coast Academy of Feng Shui. Her goal is “to create beauty, harmony and consciousness wherever she goes.” She is known for her ability to translate Feng Shui into terms that are easy to understand and apply for western audiences.

Erica is the author of the book Small Changes, Dynamic Results! Feng Shui for the Western World and she offers Earth Spirit Adventure Travel Retreats – tours to sacred sites in Bali and Hawaii. Her Comapany West Coast Academy of Feng Shui also offers Practitioner Certification Training Programs throughout the United States, along with home study programs and seminars. Please visit Erica’s website – www.ericasofrina.com – for more information.

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CMHC Housing Starts – February 2011

The seasonally adjusted annual rate of housing starts was 181,900 units in February, according to Canada Mortgage and Housing Corporation (CMHC) News Release of March 8, 2011. This is up from 170,600 units in January 2011.

“Housing starts moved higher in February because of increases in Ontario and the Prairies,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The bulk of this increase was felt in the multiples segment.

The seasonally adjusted annual rate of urban starts increased by 9.4 per cent to 161,000 units in February. Urban multiple starts were up by 14.5 per cent in February to 94,900 units, while single urban starts edged higher by 3.0 per cent to 66,100 units. February’s seasonally adjusted annual rate of urban starts increased by 26.1 per cent in the Prairies.

For full Release: See CMHC February 2011 Housing Starts

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Calgary Housing Market Recovery Continues

February 2011 Market Values - Total MLS®

Click February 2011 Market Values-Total MLS®

According to figures released by CREB® (Calgary Real Estate Board) on March 1, 2011, for the second month in a row, single family home sales in the city of Calgary increased over the previous month and those of February 2010. The rise in sales points to a gradual recovery in Calgary’s housing market.

The number of single family home sales in the month of February 2011 were 1,169, compared to last month when sales were 791 — an increase of about 48%. The number of condominium sales for the month of February 2011 was 468, up from the 302 condo transactions in January.

Year-over-year, the number of single family homes sold in February 2011 in the city of Calgary increased by 13% since last year. Condominium sales saw a decrease of 13% from last year.

“The convergence of affordability, low interest rates, a good selection of inventory and improved confidence in the Alberta’s energy sector is building the foundation for a sustainable housing recovery,” says Sano Stante, president of CREB®. “Sales of single family homes priced below $400,000 are driving the gradual recovery, with the expectation that as the year progresses we should see the sales shift to homes priced in the mid range of the market.”

The average price of a single family home in the city of Calgary in February 2011 was $461,786, a 2% increase from last month, and a 1% increase from February 2010. The average price of a condominium in the city of Calgary in February 2011 was $290,145, a 1% increase from last month and a 3% increase over last year.

The median price of a single family home in the city of Calgary for February 2011 was $400,000, showing a slight increase from January 2011 when the median price was $390,000. This was a 3% decrease from February 2010, when the median price was $411,000. The median price of a condominium in February 2011 was $267,000, showing a 5% increase from January 2011, when the median price was $255,000, and remained virtually unchanged from February 2010, when it was $265,900.

“The Bank of Canada announced today that interest rates will remain unchanged until summer to encourage continued economic growth in Canada. Steady interest rates combined with stable housing prices indicate current affordability levels in Calgary will persist throughout the first half of 2011,” says Sante.

Single family listings in the city of Calgary added for the month of February 2011 totaled 2,268, an increase of 15% from January when 1,965 new listings were added, and an increase of 5% from February 2010, when 2,154 new listings came to the market.

Condominium new listings in the city of Calgary added for February 2011 were 971, an increase of 12% from January 2011, when 870 condo listings were added to the market. This is a decrease of 12% from February 2010, when new condominium listings added were 1,109.

“Improvements in the energy sector will translate into growth in employment and net-migration in Alberta and Calgary. This will boost consumer confidence and ultimately improve housing demand.” says Stante.

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Canada Housing Market Stabilizing

According to CMHC’s Housing Market Outlook, Canada Edition, First Quarter, Canada’s Housing Market is Stabilizing.

“Housing starts will moderate in all areas of Canada except British Columbia and Alberta. In 2011, starts are forecast to increase by 1.6 per cent in B.C. and will remain steady in Alberta.”

“Measures recently announced for government-backed mortgage insurance will moderate housing starts activity. Some potential buyers will have to save a larger minimum down payment in order to qualify for mortgage insurance and thus postpone their purchase. Alternatively, some potential buyers may buy smaller, less expensive homes. The new measures, however, are only a few of the many factors that will affect the new housing market.”

“MLS® sales will decline in 2011
“After moderating in the first half of the year, sales of existing homes through the Multiple Listings Service® (MLS®) have rebounded since July 2010. On an annual basis, MLS® sales will edge lower in 2011. As is the case for housing starts, we have generated a range of forecasts for MLS® sales that reflect different economic scenarios. For 2011, we forecast that MLS® sales will be between 398,500 and 485,500 units. In 2012, MLS® sales will be between 406,300 and 519,700 units. CMHC’s point forecast is 441,500 MLS® sales this year and 462,900 next year, compared to 446,577 units sold in 2010.”

“Balanced to sellers’ market conditions
“By the second quarter of 2010, the resale market returned from sellers market conditions back into balanced market territory across most markets in Canada. During this time, new listings increased while existing home sales moved lower. Recently, MLS® sales have regained strength and markets have moved back towards sellers conditions. Consequently, the average MLS® price increased by the fourth quarter of 2010, with the average MLS® price of an existing home at $343,516 compared to $339,155 in the final quarter of 2009. For 2011, the average MLS® price is expected to move up modestly to $348,900 while 2012 will see a further increase to $358,200.”

For More information regarding the “Risks to the outlook” and “Trends Impacting Housing” like Mortgage Rates, please see CMHC’s report Housing Market Outlook, Canada Edition – First Quarter


Housing Activity to Move in Line with Demographic Fundamentals in 2011 – Ottawa, February 17, 2011

After trending lower in the second half of 2010, housing starts are forecast to stabilize at levels consistent with demographic fundamentals in 2011 and 2012, according to Canada Mortgage and Housing Corporation’s (CMHC) first quarter Housing Market Outlook, Canada Edition.1

Housing starts will be in the range of 157,300 to 192,900 units in 2011, with a point forecast of 177,600 units. In 2012, housing starts will be in the range of 154,600 to 211,200 units, with a point forecast of 183,800 units.

“Modest economic growth will continue to push employment levels higher this year and next. This, in conjunction with relatively low mortgage rates, will continue to support demand for new homes. Housing starts will remain in line with long term demographic fundamentals over the course of 2011 and 2012,” said Bob Dugan, Chief Economist for CMHC.

Existing home sales will be in the range of 398,500 to 485,500 units in 2011, with a point forecast of 441,500 units. In 2012, MLS® sales will move up and are expected to be in the range of 406,300 to 519,700 units, with a point forecast of 462,900 units.

Mr. Dugan also noted that the existing home market will remain in the balanced to sellers’ market range in 2011 and 2012. As a result, growth in the average MLS® price is expected to remain in line with economy-wide inflation in 2011 and 2012.

1. The forecasts included in the Housing Market Outlook are based on information available as of January 17, 2011. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.


January 2011 Housing Starts: Ottawa, February 8, 2011
The seasonally adjusted annual rate1 of housing starts was 170,400 units in January, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 169,000 units in December 2010. According to final figures, actual housing starts for 2010 totalled 189,930 units, with activity moderating towards demographic fundamentals by the final quarter of 2010.

“Housing starts moved slightly higher in January because of an increase in rural starts,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Single-detached and multiple starts showed a moderate decline.”

The seasonally adjusted annual rate of urban starts decreased by 1.7 per cent to 146,900 units in January. Urban multiple starts moderated by 1.5 per cent in January to 82,900 units, while single urban starts moved lower by 2.0 per cent to 64,000 units.

January’s seasonally adjusted annual rate of urban starts decreased by 19.0 per cent in the Prairie Region, by 7.9 per cent in British Columbia, and by 1.0 per cent in Québec. Urban starts increased by 13.3 per cent in Atlantic Canada and by 10.3 per cent in Ontario.

Rural starts were estimated at a seasonally adjusted annual rate of 23,500 units in January.

Click links for CMHC News Releases: Feb 17-2011, Feb 8-2011, Jan-2011 Dec-2010 Housing Report

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Building a Green Home

Benefits of building Green include lower energy and water bills; reduced greenhouse gas emissions; and less exposure to mold, mildew and other indoor toxins which emit harmful Volatile Organic Compounds. Knowing that the lumber used is traceable to responsibly managed forests is Environmentally responsible and an even Deeper Shade of Green (Ottawa Citizen).

 Building Green – Leadership in Energy and Environmental Design (LEED)

 LEED® Canada for Homes is a rating system that promotes the design and construction of high-performance green homes where the net cost of owning such a home is comparable to that of owning a conventional home. The system attempts to provide national consistency in defining the features of a green home and to enable builders anywhere in the country to obtain a green rating on their homes. It’s a consensus standard for green homebuilding and is part of the comprehensive suite of LEED assessment tools offered by the Canada Green Building Council to promote sustainable design, construction, and operations practices in buildings.

The LEED® Canada for Homes Rating System measures the overall performance of a home in eight categories:

  1. Innovation & Design Process (ID). Special design methods, unique regional credits, measures not currently addressed in the Rating System, and exemplary performance levels.
  2. Location & Linkages (LL). The placement of homes in socially and environmentally responsible ways in relation to the larger community.
  3. Sustainable Sites (SS). The use of the entire property so as to minimize the project’s impact on the site.
  4. Water Efficiency (WE). Water-efficient practices, both indoor and outdoor.
  5. Energy & Atmosphere (EA). Energy efficiency, particularly in the building envelope and heating and cooling design.
  6. Materials & Resources (MR). Efficient utilization of materials, selection of environmentally preferable materials, and minimization of waste during construction.
  7. Indoor Environmental Quality (EQ). Improvement of indoor air quality by reducing the creation of and exposure to pollutants.
  8. Awareness & Education (AE). The education of the homeowner, tenant, and/or building manager about the operation and maintenance of the green features of a LEED® home.

The Costs and Financial Benefits of Green Buildings:

A recent study by California’s State and Consumer Services Agency concluded that there are indeed financial benefits to green-building design. The sustainability taskforce reviewed the construction costs of 33 green buildings across the U.S. and found that although it costs nearly 2% more on average to construct a green building than one using conventional methods, the cost premium yields savings of more than 10 times the initial investment during the life of a building (approx. 20 years according to the study).

 RESOURCES:  Canada Green Building Council, LEED Canada for Homes

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Homes in Calgary Inner-city drive Real Estate Recovery!

 
Calgary, February 1, 2011 – Single family homes in the inner-city drive recovery. Single family home sales in the City of Calgary edged upwards month-over-month and showed the first year-over-year increase since April 2010, according to figures released by CREB® (Calgary Real Estate Board).The number of single family home sales in the month of January 2011 were 791, an increase of about 8% from 2010. The number of condominium sales for the month of January 2011 was 302, down from December 2010.  Year-over-year, the number of single family homes sold in January 2011 in the city of Calgary increased by 4 per cent.

“More affordable housing will continue to attract homebuyers to the inner-city, particularly as employment in the city of Calgary continues to improve,” says Sano Stante, president of CREB®. “Single family homes in the city are currently driving this gradual recovery, and we are seeing an uptick in the sale of homes below the $350,000 price point. This may suggest more first time homebuyers are entering the market, providing the fuel needed for a sustained housing recovery.

”The average price of a single family home in the city of Calgary in January 2011 was $454,163, 3% increase from December 2010, when the average price was $441,341, and a 3% increase from January 2010. The average price of a condominium in the city of Calgary in January 2011 was $288,291, a 2% increase from December 2010 and a 2% increase over last year.

The median price of a single family home in the city of Calgary for January 2011 was $390,000, showing a slight increase from December 2010 when the median price was $389,000 and a 2% decrease from January 2010. The median price of a condominium in January 2011 was $255,000, a 1% decrease from December 2010, and a 4% decrease from January 2010.

“The recovery in 2011 will be incremental and gradual. Nonetheless, at the moment Calgary is offering buyers a great deal of affordability, low interest rates and a large selection of inventory,” says Stante. “Overall the first quarter of 2011 will show modest improvements in sales which will lay the foundation for the return to a more balanced market,” he adds.

Single family listings in the city of Calgary added for the month of January 2011 totaled 1965, an increase of 170% from December 2010 when 728 new listings were added, and an increase of 8% from January 2010. Condominium new listings in the city of Calgary added for January 2011 were 870, an increase of 141% from December 2010. This is a decrease of 9% from January 2010, when new condominium listings added were 951.

“Alberta will begin to see growth in net-migration as the oil and gas sector regains traction. This will help boost consumer confidence and ultimately bring improvements to employment and family income—key drivers of our housing market,” says Stante.


  Calgary Real Estate Market Trends
(News Releases 2010 & 2011)
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Bigger down payments not an option for healthy housing market!

February 16, 2010

The Honorable James M. Flaherty
Minister of Finance
Department of Finance Canada
140 O’Connor Street
Ottawa, ON K1A 0G5
fAX: (613) 943-0938, E-mail:  jflaherty@fin.gc.ca

Dear Minister Flaherty,

RE: Discussions regarding raising minimum down payment requirements for home buyers

Given your initial interview with CTV and rumors currently swirling around Ottawa regarding potentially raising the down payment requirements for homebuyers and the resulting discussion this idea has brought about in real estate circles, among economists and in the media, we are writing to urge you to reconsider such potential measures.

We understand the government of Canada is concerned about the possible destructive impacts of a hot housing market. These concerns are not without some justification. However, as REALTORS® working on the front lines of this business, we believe raising the down payment requirements for homebuyers could not only have a disastrous effect on those Canadians looking to buy their first home, but also on the health of the entire housing market.

We are not economists. We are not claiming to be. However, given that we operate a real estate business in which first time homebuyers make up a significant percentage of our clientele, our very survival as a business depends on our sharp understanding of the needs of first time homebuyers, as well as their overall contribution to a healthy and prosperous Canadian housing market.

To use a crude analogy, if the housing market were a pyramid, first time homebuyers would make up the foundation on which the entire market is based. Placing unreasonable barriers to entry on those who would otherwise help to provide the market with a solid base will cause a destructive chain reaction that will reverberate throughout a significant portion of the entire economy. To illustrate this point, if first time homebuyers are prevented from entering the market, demand for starter homes will plummet. Current owners of starter homes looking to sell their houses in order to accommodate a growing family will certainly experience greater challenges in finding buyers for their current homes. As such, they may not be able to buy those homes for their growing families, as they have significantly less buyers to sell their current ones to. In this way, the entire housing market will suffer; first time homebuyers will merely be the first to feel the effects.

From our own experience with our clients, we know how difficult it is for them to raise enough money for their down payments, as they are often saving while also paying rent to reside in their current dwellings. We warn that any increase in minimum down payment requirements would bar more than just a few potential buyers from entering the market. As such, we worry that the government is underestimating just how destructive any increases in minimum down payment requirements could be for first time homebuyers and by extension, the entire housing market. Furthermore, creating unnecessary barriers to entry for first time homebuyers would naturally affect any business dependent on a healthy housing market. Not only would our business feel the effects, but contractors we work with, from renovators to builders to painters would take a hit, as would home staging companies and retailers that sell goods required to sustain a home. These include durable goods like furniture and appliances.

We believe it is also worth mentioning, that measures to raise minimum down payments could have large destructive effects while failing to provide an economic upside.

We would like to emphasize that there is still a great deal of diverging opinion among economists as to whether we need to fear a potential housing bubble at all, let alone whether raising minimum down payment requirements would help avoid one. In an interview with The Globe and Mail, Benjamin Tal with CIBC World Markets expressed his worry that such measures could result in the government overshooting its goal. Tal communicated his belief that housing prices will moderate as new housing starts help to increase the supply of homes, thus stabilizing the market. New Canada Mortgage and Housing Corporation figures on housing starts seem to support Tal’s argument, given that the country saw 174,500 new housing starts in December (seasonally adjusted annual rate), beating analyst expectations, and 186,300 units in January. On the heels of the December data, Canadian Real Estate Association chief economist Gregory Klump told the Canadian Press he believes such fresh infusions of supply will stabilize the market, particularly in the latter half of 2010 and that the current surging market represents a natural part of the real estate cycle, not a housing bubble. On the same day, Bank of Canada official David Wolf, delivering an address on behalf of deputy governor Timothy Lane, warned that talk of a potential housing bubble is premature.

Given our frontline industry experience, coupled with what Canadian economists are telling us, we believe that any potential decision to raise minimum down payments would be, at best, a perverse ‘solution’ to a temporary concern. As such, we strongly advise against adopting such measures. We welcome any further discussion on this matter from you, as well as from the general Canadian public as we strongly believe there are other options open to the Government.

Sincerely,

Elke Babiuk & Michelle Larcher
REALTORS®, Maxwell Realty, Maxwell Canyon Creek
Members, Calgary Real Estate Board, Alberta Real Estate Association
Canadian Real Estate Association

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