Report refutes rumours of a housing bubble

The numbers are in and it would appear that our sky-high property values are being held together with far more than a thin film of soapy water.

Reports by the Canadian Real Estate Association and Central 1 Credit Union suggest that B.C.'s real estate market may be slowing down but sure isn't a bubble ready to burst.

Central 1 Credit Union's report, issued on Sept. 15 forecasts that the total number of B.C. home-sales will be slightly lower this year from last, dipping down less than a point, but that house prices will soar to an all-time high, up an estimated 6.8 per cent from 2010.

The author of Central 1 Credit Union's report, economist Brian Yu, suggested that low interest rates - which look to stay low until at least early 2013 - and a limited supply of land will keep housing prices moving upwards. But it doesn't end there.

Photograph by: Terry Peters, North Shore News

The most compelling factor to suggest we're not in the midst of a bubble is far more pragmatic: people are living in the homes they buy. According to Yu, market speculation seems to be at normal level, comprising only two to three per cent of the total B.C. market, so if the economy slows there will be less likelihood of a speculation-induced bust as homeowners will tend to hold onto their homes rather than sell them in a weaker market.

Adding ammunition to Yu's argument was the release of the Canadian Real Estate Association's report on the same day suggesting that 70 per cent of markets across the country are in balance. Even a spike of activity in the Vancouver and Toronto markets seen earlier in the year has eased back to normal levels.

I've intuitively felt that our housing values in Vancouver, specifically here on the North Shore, are not artificially inflated but rather reflect desirability of the locale and the limited supply of buildable land that our topography permits. Our communities on the North Shore are delineated by a perimeter of mountains and ocean that creates one of the most beautiful locales on earth while preventing outward growth. The fact that we're only minutes from a thriving, world-class metropolis suggests to me more than ever the adage "location, location, location."

There are those who argue that the trap door will eventually drop but I suspect it won't be anything so dramatic. My instinct tells me that we'll be able to weather whatever market storms come our way.

Make your home more energy efficient

It might have been the scorching temperatures of the Utah desert that swaddled us, or the flash-thunderstorms that disgorged immeasurable volumes of water upon us, but after spending the last few weeks of summer holiday in a small tent with my family the notion of an environmentally sensitive, energy-efficient shelter kept presenting itself to me.

Photograph by: Mike Wakefield, North Shore News

Living in a tent has a way of making one reflect on the simple things that can positively affect the livability of a home and maximize its efficiency. It's straightforward stuff really. By taking a few simple steps one can greatly increase the energy efficiency of the places we live.

Draft-proofing your home is likely the easiest and cheapest way to make energy-efficient gains in your home. Seal things up and your energy bills will drop.

Having a look at your furnace is always a good move. Older furnaces are often oversized and typically have very inefficient motors and heat exchangers. Upgrading to a more energy efficient model will see immediate gains.

Increasing the insulation in your home is a guaranteed way to move towards energy efficiency. A well insulated, well sealed and properly ventilated home will be a warm and comfortable one and will be the most energy efficient solution.

Replacing single glazed windows with double glazed ones will bring huge gains as a single pane of glass has very little insulation qualities.

The Canadian Mortgage and Housing Corp. has a number of programs to help out homeowners wishing to make energy-conscious changes to their homes. A quick review of their website will indicate eligibility.

Simply put, an energyefficient home uses less energy and is less expensive to operate. Making some simple changes won't break the bank, you might receive financial assistance to do it, you'll be reducing your greenhouse gas emissions and in the end you'll see significant reductions to your monthly utility expenses.