Wayne Winch Georgina Real Estate Blog

Outside The House

Check The A/C
Have a qualified HVAC contractor come out to give your air-conditioning system a tune-up. To help lower your energy bills, do this every year to ensure the system is running at its manufacturer-rated efficiency. Also make sure to inspect your system’s condensate drain hose, especially if you live in a humid climate. This hose could become clogged with algae and sediment, and your contractor may charge you more to clean it out. Avoid this extra cost by checking the hose periodically yourself. Use a wet-vac to suction any blockage out from it.

Roofs And Gutters
The hot summer sun can quickly damage a roof’s shingles, so you may want to call a contractor if you haven’t inspected your roof in several years. Clean out the leaves and other debris that have collected in them. Then check to see if the gutters are safely attached and haven’t sprung any leaks. Also, make sure that downspouts direct water away from the house’s foundation, to prevent a potential basement flood.

Right The Foundation
For further basement flood protection, inspect the foundation around your house before the spring rains. Look for cracks or imperfections, and seal them or call a contractor if necessary. Also look for low areas in the yard near the foundation that might pool water during a heavy rain. Level these yard depressions by filling them with compacted soil. Tend to any other “ponding” areas around the yard, too, because after a hard rain, standing water can develop. These puddles can be a breeding ground for mosquitoes.

Seal The Deck
If you have a patio deck, inspect the wood for stains, discolorations, or warping. If you find any, consider resealing the deck. To verify that your old application still works, pour some water onto the dry deck and check to see that it beads up. Most deck-sealer manufacturers recommend resealing annually, but if there are no immediate problems worth addressing, you can likely wait until the following spring to reseal. Check for any sharp edges, splintered wood, or rotting wood. Also look for rusting nails or any nails that are coming out or weakening their connections. And be sure to check the railings and stairs to make sure they are secure and not wobbly.

Ready The Soil
Spring is the season to prepare for new growth in your garden. Rake beds of leaves and other leftover winter debris. Use a hoe to churn and loosen the soil, and mix in compost for nutrients. If you’ll be planting new seeds, follow the instructions provided on the seed packet for the best results.

Inside The House

The Water Heater
Look around the base of your water heater for evidence of leaks. The average lifespan of a water heater is 8-12 years. If your water heater is over 5 years old, it should be checked monthly for any leakage or rusting at the bottom. If water leakage or rust is found, the water heater should be replaced. If you live in an area with particularly hard water, you may need to drain your water heater because of the sediment buildup in the tank.

The Basement And Attic
Does your attic or basement smell musty? If you have an attic, check it for leaks from the roof. Inspect the underside of the roof and the insulation closely for any discoloration, deterioration, or dirt stains, as the leaking water might have dried up.

Check the basement walls, floor, and trim for water stains or any signs of seepage through the foundation. There are a number of flooding causes. While you’re down there, keep a close eye on your sump pump, making sure it is still in good working order, and has a battery backup in place if necessary.

Consumer debt, which excludes mortgages, edged 1.4 per cent higher in the fourth quarter of 2011 from the previous quarter, according to a report released by TransUnion.

The increase comes on the heels of three quarters of flat-to-negative growth but is in line with a year-end spike that generally comes during the holiday shopping season, said Thomas Higgins, TransUnion's vice-president of analytics and decision services.

He believes the “continued deceleration in the annual growth of overall debt levels” is the more interesting - and hopefully promising - trend.

The report showed that annual growth in consumer debt fell below 1 per cent for the first time since TransUnion began tracking credit trends at the start of 2004. The current trend of slowing consumer debt growth began in late 2009.

That basically means that while debt levels are still growing, the pace of growth has slowed drastically.

“The first and second quarters of 2012 should be quite revealing as we may see the first year-over-year decline in total debt since at least 2004,” Mr. Higgins said.

He attributed the increased caution among consumers to the uncertain economic outlook, debt problems in Greece, as well as the warnings issued by Canadian policy makers.

“All of this has really helped to get people focused on debt and trying to get it down before interest rates start to rise,” he said.

Debt levels among Canadian households have soared to new highs in recent years, with people turning to credit to finance purchases of cars and home renovations.

Central bankers have been warning Canadians about excessive debt loads and their ability to repay the money they owe once interest rates rise from their current lows.

Lines of credit are by far the biggest source of non-mortgage debt among Canadians, accounting for 42 per cent of the overall debt pie. This type of debt, which is cheaper than credit card debt, continues to grow although at a slower pace, Mr. Higgins noted.

Other key credit statistics listed in the TransUnion report include:

• Canadian average credit-card borrower debt declined 1.49 per cent on an annual basis but rose 0.61 per cent quarter over quarter
• Canadian lines of credit (LOC) borrower debt increased 1.1 per cent year-over-year and 0.64 per cent from the previous quarter
• Canadian installment-loan borrower debt fell 5.3 per cent year over year and 2.58 per cent quarter over quarter
• Canadian auto borrower debt jumped 9.7 per cent year over year and 2.8 per cent from the previous quarter

The data released by TransUnion also shows that while debt levels are high, most Canadians are still able to meet their debt repayment obligations.

Delinquency levels remain low across all major product categories, the report said, with delinquencies on lines of credit sitting at 0.21 per cent and for credit cards at 0.31 per cent.

The TransUnion analysis is based on anonymous credit files of all credit-active Canadians.

The national housing agency said Monday in its first-quarter 2012 report that the foreseen stability stems from an economy that appears set to expand at only a moderate pace over the next two years. The Bank of Canada's key overnight rate — which affects mortgages tied to prime rates — will likely remain low until mid-2013, which should also act to keep activity on an even keel.

"With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011," CMHC deputy economist Mathieu Laberge said in a statement.

Low mortgage rates and high demand have driven housing prices sharply higher in large urban centres such as Toronto and Vancouver, leading many experts to warn that a housing bubble could burst when rates finally do rise.

Despite those warnings and alarms from top government officials that Canadians are taking on too much debt overall, the housing market has seen little change over the past few years, with price growth slowing but not retreating in most areas.

The CMHC says it expects the average house price in Canada to hit $368,900 for 2012, with a projected range between $330,000 and $410,000, according to data from the Canadian Real Estate Association's MLS service.

For 2013, that number rises to $379,000, with a range between $335,000 and $430,000.

"The moderate increases in the average MLS price are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013," CMHC said.

Housing starts are expected to be around 190,000 units this year and 193,800 units in 2013, while existing home sales are expected at about 457,300 units in 2012 and moving a little higher to 468,200 units in 2013.

The CMHC predicted that housing starts will be in the range of 164,000 to 212,700 units in 2012, and between 168,900 to 219,300 units in 2013. Existing home sales are expected in a range from 406,000 to 504,500 units in 2012, rising to 417,600 to 517,400 units in 2013.

Western Canada is expected to see strong growth in new housing starts, with Alberta leading the way with a 13.2 per cent increase. However, the agency said it expects housing starts in Saskatchewan to contract by about 2.7 per cent in 2013.

In Eastern Canada, all provinces are expected to see a contraction in housing starts for 2012, with "modest growth" returning to Quebec and Ontario in 2013.

The agency noted that the fate of an economic recovery in the United States, Canada's largest single trading partner, could have an immediate affect on Canada's housing industry —

"Some upsides include the potential that the U.S. could recover more quickly than anticipated, which would be positive for U.S. employment and economic growth," CMHC said.

"In turn, this could boost employment growth in Canada and thus lead to a stronger than expected housing market."

Conversely, if the U.S. recovery hits a snag and emerging economies see their growth slow while Europe suffers a slowdown, that could lead to slower employment growth in Canada and place a chilling effect on the demand for housing.