The Real-Estate Round Up - November 24, 2011

Bank of Canada holds key interest rate at 1%

In a move that surprised no one, Bank of Canada Governor Mark Carney announced it will be keeping its interest rate at 1%, likely for the foreseeable future.

It wasn't all that long ago when Carney was hinting at possible rate hikes which likely would have already been implemented, but the US recovery stalled and the Euro Debt Crisis worsened. Carney called that situation "barely contained."

2011 GTA Condo Sales Break Previous Record

The Building Industry & Land Development Association (BILD) announced that the 23,747 condo sales in the GTA through the first 10 months of 2011 has broken the previous record high of 22,316 in 2007. Quite the feet considering there is still 2 months of sales to go.

High-rise sales have accounted for 61% of the sales, compared to 57% to this time last year. Joe Vaccaro, Acting President of BILD commented, "Ten years ago the split was 25% high-rise vs. 75% low0rise."

It would appear Toronto is "growing up."

NDP Leader Slams Liberals for Not Clarifying HST Transition

Adrian Dix is slamming the BC government for not transitioning back to the PST system immediately, or at very least clarifying the rules on the transition back to the old taxing system.

Dix wasn't the only one, as NDP Housing Critic Shane Simpson added "The Urban Development Institute, the Canadian Home Builders Association and the BC Real Estate Association have all said it's hurting their industries. The industry is looking for certainty and clear rules on the transition back to the PST."

Finance Minister Kevin Falcon admitted that the transition back is more difficult than he anticipated. "The PST is a stupid, inefficient tax. The issues associated with it are much more complex than I honestly could have ever imagined."

It doesn't appear as if there will be an answer for the situation anytime soon.

BILD Ride for Humanity & Stephen Dupuis

On Sunday, September 25, Conasys took part in the very first BILD Ride for Humanity. Making this day extra special was that it was dedicated to the late Stephen Dupuis, President and CEO of BILD who passed away just days prior.

The entire Conasys team has been deeply impacted by the sudden loss of Stephen, as many of us have had the opportunity to get to know him over the years, and had the pleasure of calling him a friend. Greg Stolz, Founding Partner and Executive Vice President of Conasys shares a few words about Stephen below.

"I received a call very early on September 23 from our Toronto office, informing me that Stephen E. Dupuis, CEO & President of BILD had passed away suddenly. This came as great shock as he was his usual charismatic, humorous and charming self the night before at the awards ceremony in which he was recognized for Lifetime Achievement.

I had the pleasure of meeting Stephen several years ago and was honoured to call him a friend. He was such a unique personality and when attending events where he was going to be as well, I always looked forward to seeing him.

His contribution to the residential construction industry, not only in the area his local served, but across Canada was commendable to say the very least. His insight, vision and ambition helped to raise the bar for consumers and industry participants across the country.

My heart is heavy. Rest in Peace Stephen, you will never be forgotten."

Greg Stolz
Founding Partner/Executive VP, Conasys
Chair, CHBA-BC Marketing Committee

Is Routine New Home Maintenance Necessary to Maximize Warranty?

A new home is full of shiny new products and in most cases, backed with a safety net in the form of a new home warranty. With a new car, routine maintenance is an integral part to getting the most out of the warranty. Is this the same with a new home? Each province has unique laws and separate governing bodies for new home construction, so we must examine each individually to answer the question, “Is routine new home maintenance necessary to maximize warranty?” First up, British Columbia.

British Columbia’s Homeowner Protection Office (HPO) is a crown corporation that oversees the licensing of residential builders and execution of the Homeowner Protection Act (HPA). The HPA’s purpose is to protect consumers and raise the bar of professionalism in the residential construction industry.

The HPA states that a warranty provider may exclude specific items from home warranty insurance if damage is caused by negligent or improper maintenance or operation (Section 11). This would certainly answer the question of whether routine new home maintenance is necessary but it also opens the door to a more complicated one; “How does a homeowner know what the proper operation and maintenance is for each specific product in their home?”
To answer this question, we consulted three sources; Traveler’s Guarantee and National Home Warranty, BC’s two largest new home warranty providers, and the Canada Mortgage and Housing Corporation (CMHC).

Both warranty companies provide a homeowner maintenance manual with general tips on maintenance, but both are generic in nature. Each frequently instructs the reader to consult with manufacturer’s literature. The CMHC Homeowner’s Manual, which is endorsed by the Canadian Home Builders’ Association (CHBA), is far more comprehensive at over 170 pages, but still references consulting specific product documents for in-depth operation and maintenance information. By the HPA’s definition of required operation & maintenance, none of these documents alone would give a homeowner enough information to keep their warranty in tact.

The bottom line is a new home requires work. Understanding the products & components of a home and how your new home warranty interrelates will allow homeowners to get the most out of their new home. Manufacturer product documents such as Operation Manuals & Maintenance Guides, combined with a maintenance schedule is necessary for anyone to meet all of their obligations as a homeowner.