Jerry Boutin - Blue Sky Realty

The Cranbrook Farmers Market on 10th Ave next to Cranbrook Rotary Park

Cranbrook, BC is the place to be, the place to live, and the place to raise kids, grow up, and eventually retire to. Saturday, July the 4^th showed us a new spirit that Cranbrook was so starving for. People showed up in large masses to take part in our first farmers market in years and enjoy some of the free music and local talent set up by Just Music in the park.

The booths were fun and filled with a variety of items, P.T. The Clowns country sister showed up for free balloon animals and there was food, snacks, and lot's to see. I believe that we will see a huge success with the Cranbrook Farmers Market this year and see more booths filling up soon. I don't believe that the live music is planned to be there each weekend, but it well should be as it created such a pleasant atmosphere. There was a great buzz to this kick start to some great changes that are happening to our fantastic city.

As I was leaving, I took one last look and couldn't help but think of what such a warm community event would look like to a tourist or a visitor looking to move here. The 10^th Avenue revitalisation was the perfect setting and the Spirit Square at the Rotary Park can really potentially liven up our community with events such as these. Congratulations to whoever it was at the city who stepped up and I'm sure put in countless hours to make the Cranbrook Farmers Market such a huge success. I can't wait to see what these creative people have in store for us next!

CAAMP Stats (Canadian Association of Accredited Mortgage Professionals)

		June 2,2009 Cliquez ici pour la version française Welcome to the June issue of CAAMP Stats. CAAMP has released its spring research report on the residential mortgage market. For a copy click here. Bank of Canada Interest Rate April 21, 2009 0.25%* June 4, 2009 0.25% July 21, 2009 Next meeting date Source: Bank of Canada * Bank of Canada indicated it would keep interest rate at this level until June 2010 Bank Prime Lending Rate April 22, 2009 2.25% June 5, 2009 2.25% June 22, 2009 Next meeting date Source: Bank of Canada US Federal Reserve Board Discount Rate March 18, 2009 0.00–0.25% Arpil 29, 2009 0.00–0.25% June 24, 2009 Next meeting date Source: US Federal Reserve Exchange Rate ($CDN/$US) Exchange Rate ($CDN/$US) $CDN/$US April 29, 2009 0.8313 $CDN/$US May 15, 2009 0.8481 $CDN/$US May 28, 2009 0.8970 Source:Bank of Canada Government of Canada Bonds Bond Type April 22, 2009 May 13, 2009 May 27, 2009 1 Year Treasury Bill 0.47% 0.43% 0.49% 3 Year Benchmark Bond Yield 1.36% 1.55% 1.84% 5 Year Benchmark Bond Yield 1.89% 2.09% 2.57% 10 Year Benchmark Bond Yield 2.93% 3.10% 3.57% Source: Bank of Canada Total New Housing Starts (Seasonable adjusted and annualized) Province February 2009 February 2008 March 2009 March 2008 April 2009 April 2008 Newfoundland/Labrador 3,200 2,800 3,300 3,400 2,800 1,900 PEI 500 1,000 400 500 500 800 Nova Scotia 4,700 4,300 3,800 10,300 2,500 4,700 New Brunswick 3,200 3,800 3,400 4,300 4,200 3,800 Quebec 36,900 53,800 43,600 45,700 41,100 43,800 Ontario 47,100 81,800 62,600 80,000 36,300 76,700 Manitoba 3,700 5,600 3,500 4,700 3,100 6,000 Saskatchewan 2,300 6,600 2,100 6,700 2,900 5,200 Alberta 12,600 34,200 11,900 55,100 12,400 33,600 British Columbia 14,200 49,900 11,900 32,300 11,700 37,500 CANADA 128,400 243,800 146,500 243,000 117,600 213,900 Source: CMHC Housing Now – May 2009 and May 2008. This seasonally adjusted data goes through stages of revision at different times of the year. Average MLS resale price for local markets < City April 2008 April 2009 Halifax $231,895 $245,412 Saint John $158,956 $166,172 Montreal $255,992 $261,192 Ottawa $295,909 $298,593 Toronto $386,846 $385,641 Hamilton/Burlington $283,846 $286,191 Winnipeg $209,833 $212,541 Saskatoon $306,268 $275,455 Calgary $414,006 $371,995 Edmonton $336,931 $312,127 Vancouver $615,304 $565,003 Victoria $494,204 $455,143 Source: Canadian Real Estate Association Top Incentives for First-Time Buyers across Canada Potential first-time buyers were asked to choose their number one incentive for purchasing a first property. The table shows the percentage of respondents who selected each factor as their top incentive.   Overall BC & Territories Alberta Prairies Ontario Quebec Atlantic Lower Housing Prices 33% 49% 48% 55% 32% 13% 26% Low Interest Rates 27% 32% 29% 4% 23% 41% 17% First-Time Home Buyers' Tax Credit  12% 3% 10% 22% 15% 11% 10% Job Security  10% 6% 5% 2% 10% 16% 15% Additional Government Actions to Stabilize Housing Markets 3% 3% < 1% 10% 3% 4% < 1% Home Renovation Tax Credit 2% 1% < 1% 1% 1% 3% 11% Stable Economy  2% 2% < 1% <1% 3% 2% <1% Greater RSP Deduction Limits 1% < 1% 1% < 1% 1% 1% <1% Stable Financial Markets < 1% <1% < 1% <1% 1% <1% <1% Source: Royal LePage, May 2009

Super interesting info about the Calgary Real Estate Market

The Calgary Real Estate Market is so closely tied to the Cranbrook Real Estate market. I find this information very interesting for a magnitude of reasons... have a look for yourself from some great stats gathered by a very hard working team in Calgary... "Last month we predicted that Calgary's market bottom had been reached and this month's sales proved it.  Sales volume continued strong through May and broke through last year.  We can now look back at the point of where Calgary's real estate market became stable and crossed the lows of the previous year.  Our business continues strong and continues to grow.  We have taken on a new associate, Adev Ahluwalia.  Adev brings the integrity we require to be part of our firm, and besides his great personality, comes with a strong commerce and financial background and an associated understanding of investment property.  His bio is added to our About Us page. Thanks to all of you who have chosen to work with us and referred us on to your friends.  Our commitment is to give integrity to our role as Agents and to always act first in our clients' best interests. If you know someone who needs help with real estate in Calgary, simply forward this newsletter to them and give us a call. We know all of Calgary's neighbourhoods, and work only in  your referral's best interests. Your Agents of Ultimate Service,  Frank, Mitzy & Adev Graph 1 - No. of Avail. Listings at Month End Supply Analysis:   Last month our analysis described what we should expect for inventory at this time of year; how the supply is declining toward more normal levels, and how 2004 provides a "normal inventory pattern" line as a model for an average year.   We defined target normal inventory for end of July this year at about 7,500.  If the current inventory trend continues, we should be spot on.  May 31 showed inventory dropped by 4.6% to 8,226 from end of April (8,626), which continued the downward trend since the end of March.  Normally we would expect a flat to slight increase at this time of year.  This decrease in inventory is a positive sign of the market moving to stable. Note: Inventory has been dropping month over month since May 2008.  When inventory reaches normal, pricing will firm, and we then can then expect price increases of at least normal inflationary levels. Graph 2 - No. of Sales per Month   Demand Analysis: Last newsletter we predicted a major breakthrough marker of a recovering market: that this May 2009 number of sales would push through May 2008 number of sales.  We are pleased to bring you the news that the trend has continued as predicted: Numbers of Sales for May 2009 (2,594) were 11% greater than May 2008 (2,330).  More importantly, the numbers landed just 1.2% below the demand of May 2004 (2,625), our model "last normal year."  This marks the first time since May 2007 in which the sales of an individual month were higher than the sales of the same month in the previous year. We believe Calgary's normal market demand has essentially been reached, and should oil prices and interest rates remain stable, we can expect a normal market demand as described by our graph's average line and mirroring that of 2004.  Demand is now 7.2% short of the May 01-08 average (2795).  Note also that the last time we had demand this high was July 2007 (2,582). Because of the late spring, we expect June number of sales will remain relatively strong, only slightly lower than May, and that demand in July will reach the 01-08 average.   Graph 3 - No. of Sales vs. Average Sale Price    Price Analysis: Average prices have increased $9k from last month to $385,047. Similarly, the median is up $8k from last month to $350,000.

Analysis and Conclusions Two major factors affecting Calgary's Real Estate market: Oil prices and the US dollar:  Oil prices as we write are back over $65.  Prices have moved upward not so much as a result of increasing demand, but as a result of slipping of value of the US dollar compared to international currencies.  We don't believe there is a downside to this in the immediate future, and that generally this increase due to US currency weakness is a problem that would not cause weakening in Calgary's real estate market. Interest rates continue at historic low rates: This cannot last forever, however the low interest rates are important for now to help the sagging economy of central Canada.  For those in Calgary, it is simply a bonus. This bonus cannot last.  In the near term, I ask all readers to really look now at their mortgage financing and take this opportunity.  Call your mortgage broker and make your future easy. We believe that the bottom of the market has been reached and we are recovering.  Demand has increased and inventory has decreased for the past few months.  Absorption is normally in the range of 2.5 to 3.5 months of supply.   Current absorption rate has dropped remarkably from the beginning of the year, from 10.5 to 3.17 months of supply at end of May.  Average and median prices have stopped falling and have regained the value lost since the end of November 2008.  Higher than average inventory and the best demand since July 2007 makes this a great opportunity for both buyers and sellers. Until next time, Frank, Mitzy & Adev Copyright © June 1, 2009 Frank N. McCullough "

Do you Blog, Twitter, Flickr, Facebook, or Myspace??? What does it have to do with Real Estate and business?

 I'm wondering how social networking works out in the business world? I admit to have had at one point a small addiction to Facebook, checking it 3 or 4 times a day and losing myself in it in an almost "couch potato" state. But what kind of uses may it have other then reconnecting us with friends from far ago that realistically we drifted away from for a reason?

 I have recently joined MySpace, Twitter, and Flickr as well as my current Facebook and intend to try my best experimenting with business uses on these social networking platforms without paying for advertising, etc. As a REALTOR(r) networking socially is a major part of what I do so what better a way to do it? I'll document my progress on my blog here as well and try to tie them all into my Blackberry to make sure I can get the most use out of all four. You should be able to find me under either my name or email address jerry@cranbrookforsale.com if you'd like to come find me on any. I can't promise how interesting it'll be but I'm always looking at being one step ahead of the market.

 In my first day of recording today, I've come across a very cool feature of Facebook called Marketplace. It is very underused in Cranbrook, but it is basically a free place to advertise like a craigslist.org (Which I regularly advertise my listings and open houses on and is very underused in our area too). It not only is search-able to anyone who is on Facebook by city, it also networks out to your network of friends and is posted on their walls if they accept. Very neat feature and in the 24 hours since I posted my first listing it's been viewed 23 times. Not a huge amount by any web standards but a great start. I'll be monitoring through my website stats how many referrals to my website will come from Facebook. This alone could make my experiment extremely successful if this "marketplace" feature on Facebook could take off!

MySpace so far is very confusing to me... I don't know how I'm supposed to network with others on it. I will play more with the regional search settings which could very much sort for me people in my area to contact and try to view my page.

Flickr has been the slowest for me to get going, but now I have it on my blackberry I can send pictures to it quickly. I haven't really come up with a use for putting up pictures yet for business use without being able to have a listing attached. I did put on my first picture from my blackberry this morning though of my son losing his first tooth.

Twitter has been a fun experiment but so far I have only 3 followers and one is my wife. I somehow doubt that any of the 3 are paying too close of attention to my mundane tweets about my day at work. I did find out how to tweet pictures though which may make my posts to 3 people more interesting, but probably not. I've been enjoying reading Ashton Kutchers tweets if nothing else, although I don't think that it is very work related. Is everyone on twitter friends with Ashton Kutcher? Over 2 million and I'm at 3, wow I feel not so important. He definitely has more interesting tweets tho. (So far)

So pay attention world, start using Facebook for its marketplace, it is actually very cool. At the same time, visit my listings and buy one, they are all well priced attractive homes in Cranbrook, BC. The world would be a little better of a place if everyone had a second home in Cranbrook. And there will be more posts about the others, I will find great uses for Social Networking websites in the business world if I have to check my Facebook every 15 minutes and tweet every time I cough.

 

B.C. Financial Hardship Property Tax Deferment Program

Publication Date: 

Apr 30 2009

Author: 

Matthew Kraemer

Abstract: 

A new property tax deferment program for B.C. residents is available for the 2009 and 2010 tax years.  The program is called the B.C. Financial Hardship Property Tax Deferment Program and is different from the B.C. Property Tax Deferment Program offered in previous years and still offered.  B.C. residents are encouraged to determine which program provides greater benefit given their individual circumstances. 
 

Areas of Service:

·                  Tax

A new property tax deferment program for B.C. residents is available for the 2009 and 2010 tax years.  The program is called the B.C. Financial Hardship Property Tax Deferment Program and is different from the B.C. Property Tax Deferment Program offered in previous years and still offered.  B.C. residents are encouraged to determine which program provides greater benefit given their individual circumstances. 

The program operates by deferring 2009 and 2010 property taxes on a participant’s primary residence for so long as the participant owns and lives in the home.  The deferred property taxes must be paid, with interest at a rate of bank prime (1) before the participants home can be legally transferred to a new owner (other than directly to the participant’s surviving spouse), or (2) upon the death of the participant.  The interest rate is set every six months. 

In order to be eligible for the program, participants must:
•    be a Canadian Citizen or permanent resident;
•    live in B.C. for at least one year immediately prior to applying for the program;
•    currently be experiencing financial hardship due to economic conditions;
•    have and maintain a minimum equity of 15% of the current B.C. Assessment value on the property (after deducting the upper limit of all outstanding mortgages, lines of credit and other charges on the participant’s home); and
•    have a current fire insurance policy on the home for an amount not less than the current B.C. Assessment value.

Participation in the program results in a lien registered against the participant’s property in the land title office. 

Applications must be completed and submitted before the property tax due date. 

Applications are available beginning in May 2009 from your municipal office or Service BC Centre or from the Service B.C. website at www.sbr.gov.bc.ca/individuals/Property_Taxes/Property_Tax_Deferment/forms.htm. 

More information is available at www.servicebc.gov.bc.ca.

Is this the right time to buy a house in Cranbrook, BC?

The federal government seems to be doing their part to motivate new home buyers to take the jump into home ownership. They've offered incentives such as a $750 tax break to help with closing costs and up'ed the RRSP limit that you can borrow against to $25,000. The banks have chipped in to help to by offering mortgage rates as low as 3.95% for a 5 year closed mortgage or 3.3% for a 5 year variable closed. The only people that we're waiting for to jump on board now are the Buyers.

 We've seen our sales slow down significantly in the East Kootenays in the last year and with fewer houses selling, they are remaining on the market creating a surplus of listings. Our supply has now increased with our demand decreasing making our market a stronger Buyers Market then we've seen in many years. Prices have come down and Sellers are more motivated when negotiating, bank rates are low, Government is kicking in cash. This brings up the age old question... why do Buyers feel it is smarter to buy in a Seller's Market???

 If you were to buy a house 2 years ago, nobody would have told you that it was a poor time to buy. You may have been in multiple offers or even a bidding war paying whatever the Seller wanted and having very little selection to choose from. Today there are many homes to choose from, you can take your time to make an educated decision instead of a rushed one. There is value in the market now and seller are more motivated to negotiate with dates and even price. Homes are being listed everyday at aggressive pricing with even more aggressive interest rates and there are even bonuses being added on such as cash back for renovations. Renovations that the government will help with up to $1350 as well.

 So if you're renting, thinking of upsizing or downsizing, or looking for a solid investment, do what the rich have always done... Buy in a buyers market and sell in a sellers. 

New East Side Mario's Grand Opening a huge success!

I'm not the kind of guy that likes to make predictions, but here's one. East Side Mario's in Cranbrook,BC will be a booming success. I'm no food critic and this is the first blog that I've written about a restaurant, but I have become a huge fan.

I was fortunate enough to have gotten an invite to their Grand Opening March 17, 2009 and was very impressed. There was no trace of the old Boston Pizza that resided there before. The decor was wild and made me feel like I was in a popular restaurant in New York. It was obvious that the owners have made a serious commitment to creating a very modern and popular restaurant in a city that was really needing it. Don't get me wrong, Cranbrook is filled with great food and enjoys restaurants such as Franks Steak House which never disappoints and somewhat trendy Kelsey's and Mr.Mikes. The new East Side Mario's is different though and brings a fun fresh atmosphere as well as great service and food made fresh daily.

I got to take a peek into the kitchen as well and was impressed by the functionality and cleanliness it presented. The staff were all very friendly and seemed to be having a great time even though they were working for no tips with all cash raised going to the Cancer Society. The food kept coming and I sampled many different dishes and was strongly impressed by the presentation and the flavor. I think Chef Ramsey would have been impressed! I did miss their signature buns and salads but I'm sure that they'll be there when Sara and I go there for a supper.

 In summary, I think that Cranbrook is very lucky to be surrounded by so many great restaurants. I know that East Side Mario's will fit in well and be welcomed by our city. If you don't believe me, try it. You won't be disappointed.

Highlights of the Budget plan for Cranbrook, BC homeowners

Anxious Canadians have waited to see how our government would tackle a monstrous world economic crisis and its spill-over effects into Canada.  It was a year ago, in January 2008, that some economists optimistically announced Canada would experience some pain however we would be immune to any kind of recession here.   As the mouse slept beside the elephant, the elephant did roll over and we were also smothered by its weight.

It was in the last quarter of 2008, that the story changed.  The housing market continued to slow down, vehicle sales fell and Canadian exports to the USA dropped.   Many Canadian companies began to see a decline in their own business and forced many to downsize.  As companies began to cut back on their workforce, the overall job losses in Canada have continued to climb.   It is estimated that Canada will lose approximately 170,000 jobs, this year alone.

Canada is most certainly in a recession and desperately awaits an injection of hope.  In response to this economic crisis, Canadians must now place their faith in the new federal budget which was tabled in the House of Commons, by the Honourable Jim Flaherty, Minister of Finance on January 27, 2009.   This very detailed 360-page report entitled:    “Canada’s Economic Action Plan – Budget 2009” is available for review at the following link:

http://www.budget.gc.ca/2009/pdf/budget-planbugetaire-eng.pdf

Recognizing that the Canadian housing industry is a significant contributor to our economy and its growth and stability, a swift move to stimulate the housing industry was critical.  Canada’s housing industry has experienced a drop in new building permits, housing starts, and a decline in housing sales and home prices.  Along with the slow-down has come stricter lending and financing guidelines which have also resulted in many mortgage defaults and foreclosures.  The Economic Action Plan promises to provide a total of $7.8 billion in tax relief and funding.  The objective is to give much needed support and stimulation to this very important industry where thousands of jobs in real estate, financing, construction, trades, and housing industry suppliers are in jeopardy now.

As the Action Plan is now official, here are some highlights of the Economic Action Plan, of interest to Canadian home owners:

1. Canadians who want to make their homes more energy efficient are able to receive grants from the Federal and Provincial governments.  These grants can total, up to $10,000 for energy-saving approved and compliant upgrades.   The Action Plan outlines an additional $300 million that will be allocated to this program, over a 2-year period.  The program is already known as the “ecoENERGY Retrofit” initiative.  You may visit the government website at ecoaction.gc.ca and follow the links to the ecoENERGY Retrofit, or call 1-800-622-6232 to find out how you, as a homeowner, can apply to receive available grants through the program.

2.  First time home buyers, will be able to receive a $750 tax credit to offset closing costs.  The tax relief will be extended to those first time buyers who acquired a home after January 27, 2009.   This is a great incentive especially considering that the Ministry of Revenue extended a refund on the Land Transfer Tax, to buyers of resale homes, back in December 2007.  This allowed first-time home buyers to apply for a refund, for up to a maximum of up to $2,000 on the land transfer taxes paid.  Details on this previous notice can be found at the following link:   http://www.rev.gov.on.ca/english/taxes/ltt/

3.  A Home Renovation Tax Credit is being introduced.   For eligible home renovation expenses, performed after January 27, 2009 and before February 1, 2010, individual home owners may claim a tax credit up to a maximum of $1,350.  The credit must be claimed on your 2009 income tax return and the renovation expenditure must be greater than $1,000 but not more than $10,000 to receive the maximum credit of $1,350.

4.  The Canada Revenue Agency Home Buyers’ Plan (HBP) will also be revised to allow first-time home buyers an opportunity to withdraw from their Registered Retirement Savings Plan (RRSP) avoiding the requirement to pay tax on the withdrawal but at a new higher amount.   The new withdrawal limit is $25,000 compared with the previous limit of $20,000.  An individual, or an individual and their spouse, or common-law partner can combine their maximum limit to make a total HBP withdrawal of $25,000 each, thus bumping the maximum allowed HBP withdrawal to $50,000 for the pair.

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This article was written by Elizabeth Blair, a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.  Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.
You can contact Elizabeth directly by phone at (905) 510-5785
by email at eblair@mortgageedge.ca
or you visit her website at:    www.missmortgage.ca

 

Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca
Lic # M08005880
Brokerage Lic # 10680
Head office is located at:  15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.

Canada's 2009 Federal Budget Plan - Canada's Economic Action Plan

The Government is proposing to provide up to $7.8 billion in tax relief and funding to help stimulate the housing sector and improve housing across Canada.

Support for Home Ownership and the Housing Sector

• Implementing a temporary Home Renovation Tax Credit that will provide up to $1,350 in tax relief, reduce the cost of renovations for an estimated 4.6 million Canadian families, and provide needed stimulus to the economy.
• Providing an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.
• Providing first-time home buyers with additional access to their Registered Retirement Savings Plan savings to purchase or build a home by increasing the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000.
• Assisting first-time home buyers by providing up to $750 in tax relief to help with the purchase of a first home.

Investments in Housing for Canadians

Social housing provides many Canadians with quality housing at affordable rates. Budget 2009 will invest in social housing by:

• Providing a one-time federal investment of $1 billion over two years for renovations and energy retrofits for up to 200,000 social housing units on a 50–50 cost-shared basis with provinces.
• Investing $400 million over two years for the construction of social housing units for low-income seniors.
• Investing $75 million over two years for the construction of social housing units for persons with disabilities.
• Dedicating $400 million over two years to new social housing projects and to remediation of existing social housing stock on First Nations reserves.
• Supporting social housing in the North with an additional $200 million over two years.

Helping Municipalities Build Stronger Communities

Budget 2009 will help local governments meet their needs by:

• Making available up to $2 billion over two years in direct, low-cost loans to municipalities to finance improvements to housing related infrastructure, such as sewers, water lines, and neighbourhood regeneration projects. Municipalities will also have access to significant new funding available under major new provincial, territorial and municipal infrastructure initiatives.

Introduction

Canada enjoys a high rate of home ownership among industrialised countries. Our country has a vibrant rental market and a broad network of social housing for those Canadians who need support.

In recent years, Canada’s housing sector has become a key contributor to economic growth by fuelling demand for jobs in construction and trades, building materials and other goods and services.

To bridge Canadians’ desire for quality housing, to stimulate our construction sector, and to enhance energy efficiency, Budget 2009 will provide up to $7.8 billion of funding through tax credits, grants, and loans as well as funding to provinces and territories to help stimulate the housing sector and improve housing across this country.

Support for Home Ownership and the Housing Sector

For many Canadians, owning a home represents both the achievement of a key life goal and the most important investment of their lives. A robust housing sector is also an important source of economic activity in Canada as it promotes demand for labour, building materials and other goods. To provide needed stimulus in these challenging economic times, Budget 2009 proposes four measures to help Canadians purchase and improve their homes.

Home Renovation Tax Credit

Home renovations can represent a smart investment in the long-term value of a home and generate broad-based economic activity. They can also reduce energy consumption and the long-term cost of owning a home. To support economic growth during these challenging times, Budget 2009 proposes to introduce a temporary Home Renovation Tax Credit (HRTC).

The HRTC will provide a temporary incentive for Canadians to undertake new renovation projects or accelerate planned future projects, thus providing timely stimulus to the Canadian economy while boosting energy efficiency and the value of Canada’s housing stock.

How the Temporary HRTC Will Work

The proposed HRTC will provide a temporary 15-per-cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.

Who Can Claim the HRTC

The HRTC will be family-based. For the purpose of the credit, a family will generally be considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner. Family members will be able to share the credit.

The amount eligible for the credit will be based on the total value of eligible expenditures incurred across all eligible dwellings. A dwelling will generally be considered eligible if it is used for personal purposes. This will include a house, a cottage, and a condominium unit.

It is estimated that about 4.6 million families in Canada will benefit from the HRTC.

Expenditures Eligible for the HRTC

It is proposed that the HRTC be claimed for renovations and alterations to a dwelling or the land on which it sits that are enduring in nature. For example, homeowners will be able to claim expenditures for major renovation projects such as finishing a basement, renovating a kitchen, or building an addition. Costs associated with such projects will be eligible for the credit, including permits, professional services, equipment rentals and incidental expenses.

Routine repairs and maintenance normally performed on an annual or more frequent basis (e.g. cleaning, lawn fertilization, and snow removal) will not qualify for the credit. The cost of purchasing furniture, appliances, audio-visual electronics and construction equipment will not be eligible.

Individuals will need to keep receipts for expenditures, and may claim the HRTC when filing their income tax returns for 2009.

The HRTC will complement support provided by the Government for Canadians to undertake energy-saving improvements to their homes. Federal grants paid through the ecoENERGY Retrofit program will not reduce the value of claims made for these expenditures under the HRTC. Eligible renovation expenditures claimed under the Medical Expense Tax Credit may also be claimed under the HRTC.

The effectiveness of the HRTC will be enhanced to the extent that retailers also encourage homeowners to undertake renovations to their properties.

It is estimated that this measure will cost $500 million in 2008–09 and $2.5 billion in 2009–10.

Enhancing the Energy Efficiency of Our Homes

Promoting energy efficiency and conservation is an effective means of reducing energy demand. The ecoENERGY Retrofit program provides home and property owners with grants of up to $5,000 to offset the costs of making energy-efficiency improvements. Grants apply to a variety of measures that reduce energy consumption from increasing insulation to upgrading a furnace.

Building on the success of the existing program, Budget 2009 provides an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.

Increasing Withdrawal Limits Under the Home Buyers’ Plan

Saving the down payment for a home can be a challenge for many first-time home buyers.

The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $20,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home. Unlike regular RRSP withdrawals, HBP withdrawals are not included in income when withdrawn. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal, or included in the individual’s income if not repaid.

To provide first-time home buyers with additional access to their RRSP savings to purchase or build a home, Budget 2009 proposes to increase the HBP withdrawal limit to $25,000 from $20,000 in respect of withdrawals made after January 27, 2009. It is also proposed that the increase apply to HBP withdrawals made for the purchase of a more accessible or functional home where the individual making the withdrawal is eligible for the Disability Tax Credit (DTC), or if the withdrawal is made for the benefit of a DTC-eligible person who is related to the individual making the withdrawal. This is the first increase in the withdrawal limit since the HBP was introduced in 1992.

With the $5,000 increase to the withdrawal limit, two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 from their RRSP funds toward the purchase of a home in Canada.

It is estimated that this measure will cost $15 million in each of 2009–10 and 2010–11.

First-Time Home Buyers’ Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time home buyers, who must pay these costs on top of saving the money for a down payment.

To assist first-time home buyers with the costs associated with the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit—a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

It is also proposed that the First-Time Home Buyers’ Tax Credit be made available to existing homeowners in respect of a more accessible or functional home purchased by an individual eligible for the Disability Tax Credit (DTC), or for the benefit of a DTC-eligible person who is related to the individual purchasing the home.

It is estimated that this measure will cost $30 million in 2008–09, $175 million in 2009–10 and $180 million in 2010–11.

Investments in Housing for Canadians

Renovation and Retrofit of Social Housing

Social housing provides many Canadians with quality housing at affordable rates. There are approximately 630,000 social housing units in Canada supported primarily by subsidies from the federal, provincial, territorial, and municipal governments. Most of the housing stock is administered by provinces and territories, with financial support from the federal government. A large portion of the existing units are aging and require significant repair and upgrading to meet modern energy efficiency and accessibility standards.

Budget 2009 provides a one-time federal investment of $1 billion over the next two years to address the backlog in demand for renovation and energy retrofits. Renovation activities will include general improvements, energy efficiency upgrades or conversions, and supports for persons with disabilities. To ensure quick implementation, this new funding will flow through existing agreements and be administered by the Canada Mortgage and Housing Corporation (CMHC) on a 50–50 cost-shared basis with provinces and territories, which are primarily responsible for providing social and low-income housing.

Major investments for low-income Canadians will allow governments to work together to improve the quality and energy efficiency of up to 200,000 social housing units for Canadians that need it most. This $1-billion injection of funds builds on the $1.9-billion investment over five years that the Government announced in September 2008 to extend housing and homelessness programs for low-income Canadians. These programs include the Homelessness Partnering Strategy, the Affordable Housing Initiative, and the suite of housing renovation programs such as the Residential Rehabilitation Assistance Program.

Housing for Low-Income Seniors

Over the last few years, the Government has made significant investments in improving the financial security and well-being of seniors. The Government recognizes that in these difficult times, however, that low-income seniors may have increased difficulty finding affordable housing.

Budget 2009 will provide $400 million over two years in targeted funding for the construction of housing units for low-income seniors that will be delivered through the Affordable Housing Initiative to be cost-shared with the provinces and territories.

Housing for Persons With Disabilities

Persons with disabilities often have difficulty finding housing that is suitable for their specific needs.

In recognition of the special housing required by persons with disabilities, Budget 2009 will provide $75 million over two years for the construction of housing units delivered through the Affordable Housing Initiative to be cost shared with the provinces and territories.

First Nations Housing

The Government of Canada’s primary policy goal for on-reserve housing remains helping First Nations to move toward a private housing sector. In Budget 2007, the Government supported this goal by investing $300 million in the First Nations Market Housing Fund, a credit-enhancement vehicle designed to encourage market-based housing on reserve. While the Government is committed to supporting the development of individual home ownership on reserve, many First Nations continue to face significant need for affordable housing, including social housing.

Budget 2009 provides $400 million over the next two years to support on-reserve housing, dedicated to new social housing projects, remediation of existing social housing stock and to complementary housing activities. These funds will flow through Canada Mortgage and Housing Corporation (CMHC) and Indian and Northern Affairs Canada.

This will assist the transition to market-based housing on reserve and address immediate housing needs while serving as an economic stimulus for many First Nations and rural areas by generating employment, the development of skilled trades and the creation of small businesses.

Northern Housing

In recognition of the distinctive needs of the territories, Budget 2009 will provide $200 million over two years in dedicated funding to support the renovation and construction of social housing units. The Yukon and Northwest Territories will receive $50 million each while the remaining $100 million will be allocated to Nunavut, where the need for new social housing is greatest. Funding will be provided to the territories through the Canada Mortgage and Housing Corporation.

Helping Municipalities Build Stronger Communities

Canadian homes need to be supported by a broad range of infrastructure to develop and maintain strong and prosperous communities. The Government understands, however, that much of the responsibility for maintaining the infrastructure of Canadian communities rests with Canadian municipalities.

In recognition of this important responsibility and to address the challenges municipal governments are facing in garnering capital funding for planned "ready to go" projects during an economic slowdown, Budget 2009 will make available up to $2 billion over two years in direct, low-cost loans to municipalities through the Canada Mortgage and Housing Corporation. These low-cost loans will significantly decrease the cost of borrowing for municipalities, and can be used by them to fund their contribution for cost-shared federal infrastructure programming.

This new source of funds will allow municipalities to invest in municipal housing-related infrastructure projects such as sewers, water lines, and neighbourhood regeneration projects, thus contributing to healthier, safer and modern communities for Canadians and their families.

In addition to low-cost loans to municipalities, Budget 2009 also announces a number of major new initiatives that will further accelerate and increase provincial, territorial and municipal infrastructure projects.

Table 3.6
Action to Stimulate Housing Construction

	2008–09	2009–10	2010–11	Total
	(millions of dollars)
Support for Home Ownership  and the Housing Sector
Home Renovation Tax Credit	500	2,500		3,000
Enhancing the Energy Efficiency of Our Homes		150	150	300
Increasing withdrawal limits under  the Home Buyers’ Plan		15	15	30
First-time Home Buyers’ Tax Credit	30	175	180	385
	530	2,840	345	3,715
Investments in Housing for Canadians
Renovation and Retrofit of Social Housing		500	500	1,000
Housing for Low-Income Seniors		200	200	400
Housing for Persons with Disabilities		25	50	75
First Nations Housing		200	200	400
Northern Housing		100	100	200
		1,025	1,050	2,075
Total—Action to Stimulate Housing	530	3,865	1,395	5,790
Loans to municipalities		1,000	1,000	2,000
Timing of Home Renovation Tax Credit	-500	500		0
Cash Basis	30	5,365	2,395	7,790
Provincial contributions		725	750	1,475
Total Stimulus Value		6,090	3,145	9,235
Notes: Figures in this table are presented on an accrual basis, and therefore, in some cases, will not match the figures contained in the budget text when those are presented on a cash basis. Totals made not add due to rounding.   From http://www.budget.gc.ca/2009/plan/bpc3c-eng.asp Department of Finance Canada

Cranbrook Real Estate Market

 I recently had a Client and friend ask me what I thought the Cranbrook Real Estate market was going to do this year. I’ve heard so many different people give such a variety of answers lately so I wasn’t sure how to answer this question. For every expert that says red, another says blue. I was surprised to hear the words that came out of my mouth as I answered.

 I said I don’t know. Honest, simply put. I don’t think anybody does. Anybody who tells you they do should be able to go and pick the winning lotto numbers too because they must have the ability to predict the future. I read a recent study by Intellovations, LLC that the major weather forecasters are between 56% and 60% accurate. With all of the computers and studies and data, etc, they are wrong 40% of the time! Barely better odds then flipping a coin.

 But I went on to say what I do know. I know that there are many opportunities for Buyers and Sellers in any market. I know that I’m working harder then ever to create and maintain the kind of business dealings that I am proud of. I know that I will be looking for every opportunity for each of my listings and each of my Buyers to get them the best deal, regardless of the market.

 If you already own a home and are looking to upsize, this may be the time to do it. If you’re renting, it may make better economical sense for you to buy now. If you’re an investor, there may be unique opportunities that make great financial sense. You can still make your Real Estate dreams turn into realities today, tomorrow, or next year.

Profit from a decline in House Prices in 2009

There is no denying that there has been a correction in the Real Estate Market in Cranbrook, BC and area in the last year. We have seen more listings and fewer sales resulting in a drop in prices in our area between 7% - 10% in my estimation. While this may strike fear in many homeowners, there are always winners in any economy if you know what to look for.

 Who stands to profit from the current market?

First Time Homebuyers 

Decreasing prices make buying into the housing market much more affordable. The banks have lowered interest rates in order to try and stimulate sales which puts new buyers in an even better position. You can now afford a more expensive property then originally planned or get the house that you originally wanted for less. This could save you 10's of thousands of dollars over the life of your mortgage plus save you upfront costs on your down payment.

Upsizers

As the value of homes will fall proportionately, the difference between the house you own and the house that you want to purchase becomes smaller and smaller, therefore you will have to borrow less in order to move up the property ladder.

Investors

Investors can profit from the falling prices, especially as it looks like more people will rent rather than buy in 2009. Cash Buyers are potential big winners as they are not tied to a banks purse strings and they're able to move faster for motivated Sellers needs.

The wealthy have always taught us that the best time to buy is when everyone is selling and the best time to sell is when everyone is buying. Why then do buyers become afraid in a market that benefits them? There are many potential buyers who prefer to wait and see what will happen next before making their move. The problem with that is that with so many buyers waiting for the big change, when it does happen the Sellers will be back in the drivers seat.

 Is this the right time to buy or sell? It all depends on your wants and needs, but rest assured, the wealthy will continue gathering wealth in these markets.

 

Cranbrook International Airport Ribbon Cutting

The Ribbon Cutting At the New Cranbrook International Airport after years of planning and renovations was a reality on Tuesday, October 23rd. A large crowd gathered and incuded many important figures from our area and the event went off as a huge success.

 I listened to the speeches and was amazed to hear about how huge of a process this was. It was 9 years in the making and there were large amounts of red tape to get through before they could even begin to think about getting crews ready to start the work. Millions of dollars had to be negotiated from the provincial and federal governments and a Mayor had a hard fight to see his vision come to life.

What I found most impressive though was the outlooks on our local economy given by our representatives in government. We heard about hundreds of thousands of tourists coming for the 2010 Olympics and how they would all hear about the majestic mountains and clean air in the Kootenays. We heard about the amazing posibilities of having our little city be opened up to the whole world now through one connector airport in Salt Lake City. How our industry has been challenged in the past and has grown to include world class ski and golf resorts that are taking center stage internationally. And an endorsment for mayor by the soon to be former Mayor, Ross Priest.

This is not just one of the most exciting thing to happen to our area... it is THE most exciting and important change that we've seen since originally getting the airport. We are opening up our incredibly beautiful area to the world and opening up the rest of the world to our community.  I'm looking forward to December for the Delta flights to open up and to see how this will effect our economy in Cranbrook and the East Kootenays in the next few months and especially years to come.

Politics, Economics, and the Cranbrook Real Estate Market

So, we've just had ANOTHER election and Conservatives won another minority government. Not a lot of changes here... except for the looming worldwide economic crisis and what it will mean to each of us.

 Stock markets are being hit hart and the housing prices in the US are getting demolished. Where does that leave Cranbrook, BC? Well, let’s look at what Cranbrook offers even today:

1. New golfing hotspot. Even with the Shadow Mountain and Gary Player courses not open yet, Cranbrook has been making a name across North America as the place to get tee'd off! St Eugene Mission opened in May of 2000, the St. Eugene Golf Course met with immediate accolades from golfers and in 2001 was included in the top 3 Best New Canadian Golf courses category by Golf Digest magazine. Even the Cranbrook Golf Club has been the Site for five major BCGA championships and the 2004 RCGA Senior Men's Match Play Championship (see Site for Championships), serious golf is played on these well-manicured fairways. The Kootenays have been adding great course after great course to our landscapes.

2. Airport Expansion. With Delta flying into and out of Cranbrook starting in December, you can fly roundtrip one stop to Vegas starting at $318 per person for a weekend. That’s without any promotions (and taxes) but what a difference it will make now flying directly into the US.

3. 2010 Winter Olympics. Even 10 hours away from Vancouver, we expect to have our share of visitors in the Kootenays from all of the international tourists coming to Canada. With our beautiful mountains, clean air, and great lakes, why wouldn't they want to come visit us?

4. Hospital Renovations. The multi million dollar renovations and the hospital recently being named the Regional Hospital for the area with closings elsewhere has given our city the opportunity to care for the elderly and those with health concerns better, making it a great choice for retirement.

5. Transit. We have 6 bus routes with hours of operation approximately 7:30 am - 7:00 pm making it convenient to get to shopping, residential areas, and to the College.

6. College of the Rockies. Each year, they provide instruction in a wide variety of programs to approximately 2100 full-time equivalent (FTE) students, including over 100 international (FTE) students from more than 20 countries. Their recent $16.2 million main Cranbrook campus expansion and the purchase $2 million second Cranbrook campus dedicated to trades and technology training are meeting the East Kootenay's steadily growing demand for skilled workers and employees.

 Ok, so Cranbrook is a great city with clean fresh air and safe streets. There is a lot happening in and around our city and there is plenty of potential for much more growth. So how safe is our Real Estate Market if a recession hits Canadians?

From June 1st, 2008 to today (October 16th, 2008) there have been 73 sales of detached residential single family homes through the MLS.  The Average listing price was $329,190 and the average sale price was 321,336. Average days on the market were 53. Currently our listing price has come down slightly to an average of $326,414. 

Using the same timeline for last year (June 1st, 2007 to October 16th, 2007) there were 123 Sold Listings and they averaged only 28 days on the market! So you would expect that housing prices have declined in our City? You expect wrong then. Last year, the average listing price was $295,954 and the average sale price was $289,979. That’s a 12.5% jump in 2008, not bad compared to our cousins south of the border! [source MLS Stats)

You see, there are many differences between our 2 economies and our housing markets. The main things I want to leave you with is to do with foreclosures. You must first understand "Subprime". From Wikipedia, "involves financial institutions providing credit to borrowers deemed "subprime" (sometimes referred to as "under-banked"). Subprime borrowers have a heightened perceived risk of default, such as those who have a history of loan delinquency or default, those with a recorded bankruptcy, or those with limited debt experience. Although there is no standardized definition, in the US subprime loans are usually classified as those where the borrower has a credit score below a certain level"

The subprime lending practice was unfortunately very popular in the USA, lucky for our Canadian Economy; our banks never adjusted their lending. The Canadian Lending Institutions continued lending to those who could afford the payments and today we are left with very few foreclosures because of that. In fact, to quote Stephen Harper, "Frankly, our leading banks are now some of the largest banks in the Western world as a consequence of what's going on."

However, with the downturn of the US economy, and with our exports/imports so dependant on the US, there is no doubt that our growth will be slowed as well. However, the latest reports show that Canada real estate is still expected to grow faster than inflation, bucking the trend in the US where the subprime mortgage lending practices have finally caught up.

There is a saying that goes something like, "Only newbies and fools predict the weather." I am neither so I won't give a prediction on our economy or our housing prices. I can only say that Cranbrook has much to offer, our prices are still reasonable compared to other communities similar to ours in the Okanogan and the Kootenays. In my mind, there is no finer city in the world.

Still a great time to list your house

Are we starting to face a Buyers Market in Cranbrook? I hear this question all of the time lately. I don't like the term "Buyers Market" because I like to think that the market is always a positive place for the Buyer or Seller. There definately has been a shift recently and all it takes is driving down any of local streets and noticing a lot more for sale signs and less sold signs going up on them. We have more listings and less sales in comparison to the last few years. This is obvious. But don't let the alarms start sounding if you're looking at listing your house in Cranbrook.

 While supply has risen and demand has fallen, our house prices have not seen a dramatic drop in price. We have still maintained healthy sale prices and when homes are priced correctly, they are still moving fast.

 Now, more than ever, it is very important to get your list price done right. Ask your Realtor for a precise CMA on your home (They are free) and really look at the comparables carefully before deciding to try for that extra $10,000. Ask your Realtor to take you through a few homes that have been on the market a while so that you can see what isn't working.  The first week that your house is listed it should see more people through than any other week. Make sure that it is priced right from day one.

Jerry Boutin
Blue Sky Realty
http://www.cranbrookforsale.com

 

National Real Estate Summary for Canada from CREA

National Summary

National MLS^® resale housing activity in October 2007 reached its highest level on record for the month of October and sales remain on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted sales climbed 1.3 per cent compared to the previous month to 41,871 units in October 2007. The monthly increase resulted from strengthened activity in Ontario and Quebec, which more than offset fewer sales in British Columbia and Alberta. Transactions reached their second highest monthly level ever in Manitoba, Nova Scotia and Newfoundland and Labrador.

Actual (unadjusted) sales activity in October was up eight per cent compared to the same month last year -- the highest level on record for the month of October. Sales have remained above year-ago levels in almost every month this year, putting activity on track for a new annual record in 2007.

Transactions for the year-to-date in October numbered 460,397 units, up 8.4 per cent from the same period last year. Year-to-date activity continues to run ahead of year-ago levels in all provinces except Alberta. Activity in the first ten months of 2007 has already surpassed all previous annual totals in Saskatchewan, New Brunswick and Newfoundland and Labrador.

The national MLS^® residential average price rose 11.1 per cent year-over-year in October to $313,442. Average price reached the highest level for the month of October in every province, and broke all previous monthly records in British Columbia, Saskatchewan, Quebec and Newfoundland and Labrador.

Seasonally adjusted MLS^® residential new listings edged up 0.4 per cent from levels recorded in September to 71,567 units in October -- the second highest level on record. In keeping with the trend for sales activity, the monthly increase in new listings in Quebec and Ontario offset a monthly decline in new listings in British Columbia and Alberta.

Sales activity increased more than new listings in October, which caused the market to tighten slightly compared to September. The MLS^® resale housing market remains tightest in Manitoba, and most balanced in Alberta.

Seasonally adjusted MLS^® residential dollar volume rose 1.5 per cent in October 2007 compared to the previous month to reach $13.2 billion, the sixth highest level on record. MLS^® dollar volume set new records Manitoba and Newfoundland and Labrador, and posted its second highest ever levels in Ontario and Nova Scotia.

"CREA's analysis shows prices setting new records in every province in 2007 and in 2008, but price increases will be smaller in 2008" says CREA President Ann Bosley. " In effect, price increases will become smaller as the resale housing market becomes more balanced."

"Sales activity on October posted a monthly increase in almost every province east of Saskatchewan," said CREA Chief Economist Gregory Klump. "Although down from its peak reached earlier this year in almost every province, activity is still very high. This shows that homebuyer sentiment remains upbeat. The continuation of low interest rates and rising incomes will support activity next year, even as prices continue rising and job growth softens."

Source: Canadian Real Estate Association (11/2007)