Canadian housing prices up for fourth straight month but still down from peak

[Source - Kim Covert, Financial Post Published: Thursday, October 29, 2009]

Canadian home prices are on the road to recovery, but still haven't rebounded to pre-recession levels, according to a survey that shows while prices rose in August they are still down 3.4% from their peak in August 2008. The Teranet-National Bank house price index, which measures resale prices in six urban markets across Canada, shows that housing prices nationally rose by 2% in August, the fourth straight month-over-month increase. It was also the second month in a row that prices were up in all of the six markets. "This turnaround is consistent with an improvement in market conditions in the first half of 2009 --more homes have been selling and fewer have been coming on the market," said Marc Pinsonneault, a senior economist with National Bank Financial Group. In Montreal, Halifax and Ottawa, resale prices are actually higher now than they were at their pre-recession peak a year ago.

Bank of Canada kills talk of early rate hike

Variable Rate holders will be happy with the Bank of Canada's decision today to stand by what they had previously said and indicated and not raise the overnight lending rate. Despite some people speculating that they would follow Australia's lead, the BoC did not raise the rate and this also helped to cool off the raising CAD dollar.

For a full story on today's decision - see Reuters News

[Source - Reuters]

OTTAWA (Reuters) - The Bank of Canada extinguished speculation on Tuesday that it would follow Australia in hiking interest rates quickly, warning that favorable economic developments were being undermined by the strength of the Canadian dollar.

The bank kept its key overnight interest rate at a very low 0.25 percent and reiterated its intention to keep it there through mid-2010.

Far from giving any suggestion of an early exit from its extended low-rate strategy, which is designed to stimulate the economy, the bank said return to economic normalcy would be delayed. Full Story Here

GTA Housing Market Rebound Continues in September

October 5, 2009 -- In September 2009, Greater Toronto REALTORS® reported 8,196 sales, up 28 per cent from September 2008. The average price for September transactions was $406,877 – up by 10 per cent compared to the same month last year. See details.

[Source: Toronto Real Estate Board]

September 2009 Toronto Real Estate Market Watch

How to inspect your home inspector

A home is one of the most expensive items you will ever buy, if not the most expensive purchase. Getting your home inspected is an essential step in the home buying process. No one wants to buy a money pit and once you have signed on the dotted line there is no going back.

Your realtor, mortgage agent or friends can recommend a home inspector for you and I strongly advise that you do use a home inspector that has come recommended.

Your home inspector will tell you almost everything you need to know about the home your going to purchase so that you can make an informed decision. Therefore you need to trust this person's advice.

Mike Holmes wrote a great article on "How to inspect your home inspector" that I read on www.canada.com yesterday. This is an excellent read for anyone who will be needing the services of a home inspector.

Mike published a few really good questions you should be asking your home inspector:

Questions to ask your home inspector:

1. Can I see your license/professional credentials and proof of insurance?
2. How many years’ experience as a home inspector do you have? The business card might say 25 years experience, but at what, exactly?
3. How many inspections have you personally done?
4. What qualifications do you have? What kind of training do you have? Are you a member of a professional organization? What’s your background?_Construction? Engineering? Plumbing?
5. What kind of report do you provide?
6. What kind of tools do you use in your inspection?
7. Can you give me an idea of what kind of repairs the house may need? And, they’d better not have “a friend” who can do it for you, cheap.
8. When do you do the inspection? Let’s hope they don’t have a day job, and can only do them at night when it’s too dark to see the roof.
9. How long do your inspections take?
10. Do you take pictures of the house and add them to your report?
11. Can I see some references? Make sure you ask for them, and check them

You can read the full article here: How to inspect your home inspector