A dry basement makes for a happy homeowner

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Beautiful Leduc Sunrise

I captured this beautiful sunrise yesterday morning in downtown Leduc. I feel honoured to have seen it as it was only this beautiful red for less than 10 minutes. Wish I had my Nikon camera on me but the blackberry did fairly good.

What’s the old saying “red sky at night sailors delight..red sky in the morning sailers take warning”? Did I mention it was a sunrise? Well take warning fell in the form of snow fall warnings from environment Canada calling for 10-20 cm.

I knew the snow was coming but there was work that needed done at home. Nick, my husband of 17 years and I had planned on pulling up about 25 of the sidewalk blocks that go from the front of our living room and around the corner to the front door and re-level them as they had started to sink towards the foundation.

MIKE HOLMES: How to keep your basement dry

Keeping water out of basement starts on the ground

The simplest thing you can do to keep water out of your basement is to control it at the surface. Surface water, like rain or melting snow, or water from irrigation, is pretty easy to control, compared to water below grade. There’s not much you can do about underground streams, or water table in your area and the resulting hydrostatic pressure on your foundation. But there’s a lot you can do on the surface. Most of the problems homeowners have with wet basements can be prevented if people correct the grade around their home. Make sure that surface water doesn’t become groundwater and add to the pressure that’s already down there.

The first step is to make sure that surface water drains away from your house. Ideally, you want the soil level right next to your foundation to slope away. Since water flows downhill, surface water, like rain and snowmelt, will flow away from your basement walls. If the soil around your home has either a flat or a negative grade, surface water will naturally flow towards your home or pool around the foundation. This will lead to trouble.

I’m going to hope your home is built right, and that the top of the foundation is at least six inches above the soil. That’s minimum. But the higher the better. Also, the soil level needs to fall away — on all sides — in a slope away from your house. Bad grading can result in water pooling next to the foundation, which can lead to wet basements. You might live in an area where the general drainage comes towards your house — maybe you live at the bottom of a hill, below other houses. In this case, the grade needs to be altered to direct surface water away. Usually a swale is used to intercept and collect the water that’s running downhill towards your house and take it around and release it lower down the slope. (If that sounds like your situation, you will definitely need to have a professional assess your lot’s drainage).

When a house is built, there’s always an excavation for the basement and foundation. That is eventually backfilled, of course, but the soil right around the basement’s exterior walls is never as firmly compacted as undisturbed soil. It’s more porous and will always contain more air — which will allow water from rain or melted snow or irrigation from plantings — to collect and seep down to your foundation level. That’s one reason I don’t like plants around a house’s foundation. It’s not beacuse I don’t like plants, but the irrigation into disturbed soil brings and retains too much moisture near basement walls.

When that backfill soil does eventually settle, after many years, there’s a depression right around your home that will fill up like a bathrub with surface water. And most homeowners by then will have landscaped the area and won’t even notice that the soil several feet out from their house is lower than further out into the yard. If you don’t re-grade that soil, the water will continue to pool and gather in the lower spots and eventually make its way down to your footings.

An easy fix is to make sure the downspout from your eavestroughs comes down, and expels water as far away from house as possible — at least two metres (six or eight feet). If you don’t make sure the downspouts expel water far enough away from your foundation — beyond the area of backfilled, uncompacted soil — you are pouring water down to your footings. In older houses, the downspouts were often connected to the main stack and the sanitary line. Now they are tied into a storm line in the street. In older homes it’s a good idea to disconnect the downspouts and have them empty above the surface.

After a number of years, it’s likely the weeping tile has shifted or broken or is full of tree roots, and every time rain comes down those downspouts it has nowhere to go but up against your foundation, putting lateral hydrostatic pressure against those walls, which could one day crack the foundation. Or it could cause a sewage backup into your home, which you definitely do not want.

You may find you need to direct water away beyond the end of the downspout, or from a low-lying area next to your house. The best fix is to put in a French drain, which is basically a shall trench filled with gravel that will carry excess groundwater away from your house.

A French drain relies on gravity and on the grade to divert surface water. It needs to be as deep as the lowest point of the pooling water at its start, and it slopes downs to where you need it to empty. Simple. Line the trench with landscape fabric, fill it with gravel and put more fabric on the top. Then you can sod over it to camouflage it as part of your lawn. You can also use a length of plastic weeding tile with a sock buried in the gravel if you like. Before you dig a French drain, make sure you aren’t letting the water out onot a neighbour’s property. And make sure your downspouts don’t empty on or over the property line. Ideally they’ll empty onto your lot, or into a drainage swale between two adjoining lots.

It’s not supposed to happen, but over time homeowners do landscaping projects and renovations, and little by little they can significantly alter natural surface drainage patterns until they create big problems for people next door. Be aware of how your plans might affect surface water drainage.

News article supplied by Winnipeg Free Press

Our issue was fairly basic – we pulled up the poorly sloped sidewalk blocks (I use the term “we” loosely as I was more support to pass tools) and added road crush to bring the height up on the house side and tamped it down to ensure once is settles the level still keeps melting snow and rain away from the foundation.  The snow began to fall an hour into the project but we got it all done.  A little wet and dirty but happy to know a few hours of work can save thousands of dollars of water issues.

BOC Holds Rate

Bank of Canada holds rate, drops forward guidance

The Bank of Canada announced on October 23rd 2013 that it was keeping its trend-setting overnight lending rate at 1 per cent. It has been at this level since September 2010.

The biggest change from previous statements was that it no longer hinted that the next move will be a rate hike. Instead, the Bank defended its decision not to cut rates amid persistently low inflation.

The Bank said it does not want to risk reversing the current “gradual unwinding of household imbalances” and slowdown in household debt growth. In other words, the housing market is well behaved right now and the Bank wants to keep it that way.

The Bank said global growth had become “less favourable” for Canada. This is a reference to the slow pace of economic recovery and increased uncertainty in the United States, which is resulting in weaker than expected Canadian export growth and business investment.

Accordingly, the Bank has lowered its projections for Canadian economic growth this year and in each of the next two years.

The Bank now expects economic growth of 1.6 per cent in 2013, down from the 1.8 per cent projected back in July. Growth is expected to pick up to 2.3 per cent in 2014, which is down from a 2.7 per cent projection in July, and edge up further to 2.6 per cent in 2015, also down from 2.7 per cent in July.

The Bank now expects that inflation will not return to its 2 per cent target and the economy will not return to full production capacity until “around the end of 2015”. That’s been pushed back from the previous expectation of their doing so by mid-2015.

As such, the possibility of the Bank hiking interest rates anytime this year or next is likely off the table at this point. If anything, the odds that rates could be cut has increased; however, unless the economic outlook deteriorates further, the most likely scenario is that the Bank will keep interest rates on hold for quite some time yet.

As of October 23rd, 2013, the advertised five-year lending rate stood at 5.34 per cent, unchanged from the previous Bank rate announcement on September 4th.

(CREA 10/23/2013)

Edmonton Beats Calgary as Top Alberta Investment City

We thought our investor clients might be interested in this article by Mario Toneguzzi of the Calgary Herald (link to article at bottom)

Edmonton housing market overtakes Calgary in investment ranking

Both cities poised to lead Canadian economic growth

BY MARIO TONEGUZZI, CALGARY HERALD OCTOBER 19, 2013

CALGARY — Edmonton has overtaken Calgary as the top community in Alberta to invest in residential real estate.

The ranking was done by the Real Estate Invesment Network and released Saturday. Edmonton was second behind Calgary on last year’s list.

“Before the flood hit, Calgary’s real estate market was performing right in tune to the underlying economic fundamentals. Not too hot, not too cold,” said Don Campbell, senior analyst of the REIN Research Institute. “After the floods hit, the rental as well as the housing markets over-performed the underlying fundamentals and have pushed it into the too hot level, but this situation should not last longer than 12 months. We continue to experience zero vacancy rates, strong in-migration, one of the strongest job creation economies in the country. So slowdown of the effect of the post-flood transaction bump will not be felt negatively in the market due to the pent-up demand. Good news overall for Calgary’s market for the coming years.

“Calgary did not, in essence, lose its No. 1 ranking. It is still one of the top places in North America for property investment. However, Edmonton grabbed the No. 1 ranking because it is behind Calgary in its residential and industrial recovery curve. This means that Edmonton’s market, beginning at a lower position in the real estate cycle, should slightly outperform the returns a homeowner or investors will experience in Calgary, which is already 12 to 18 months ahead on the cycle.”

Campbell said both cities are poised to be economic leaders in Canada in 2014 and 2015 and therefore the forecast for in-migration and housing demand remains very strong.

The ranking for other Alberta communities are: 3. Airdrie; 4. Leduc; 5. St. Albert; 6. Red Deer; 7. Fort Saskatchewan; 8. Fort McMurray; 9. Grande Prairie; 10. Lloydminster; 11. Okotoks; and 12. Lethbridge.

Source Article

 

 

Alberta market is heating up

Alberta home sales set new September record

Residential sales activity reported through the MLS® Systems of real estate boards in Alberta numbered 5,694 units in September 2013, up 21 per cent from a year earlier. This was the best September sales figure ever reported. At the national level sales were up 18 per cent from September 2012.

On a year-to-date basis, provincial home sales totalled 52,794 units over the first three quarters of 2013. This was running nine per cent ahead of the same time last year, and marks the best performance over this period since 2007.
The provincial average price of homes sold in September 2013 was $381,308, an increase of seven per cent from September 2012. The national average price, by comparison, rose nine per cent on a year-over-year basis to $385,906.

Monthly residential average prices were up from year-ago levels in Medicine Hat (+21 per cent), Lloydminster (+12 per cent), Calgary (+8 per cent), Edmonton (+8 per cent), Alberta West (+8 per cent), Grande Prairie (+6 per cent), Fort McMurray (+2 per cent), Lethbridge (+0.7 per cent), and Central Alberta (+0.7 per cent). The average price declined 12 per cent in South Central Alberta.

New listings on the MLS® Systems of real estate boards in Alberta numbered 8,380 units in September. This was up two per cent from year-ago levels.

Overall supply levels remain at lower levels compared to recent history. Active residential listings numbered 22,176 units at the end of September, down 13 per cent from September 2012.

There were 3.9 months of inventory at the end of September 2013, down from 5.4 months at the same time one year ago and below the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales in the province totalled $2.2 billion in September 2013, up 30 per cent from September 2012. The dollar volume of all home sales in Canada was up 29 per cent on a year-over-year basis.

Sales of all property types in Alberta numbered 6,197 units in September, up 22 per cent from September 2012. The value of those sales amounted to $2.4 billion, rising 24 per cent from a year earlier.

A total of 2,475 home sales were recorded through the MLS® System of the Calgary Real Estate Board in September, rising 21 per cent from a year earlier. The combined value of home sales activity in Calgary was $1.1 billion, a 30 per cent increase from year-ago levels.

There were 1,712 home sales recorded through the MLS® System of the REALTORS® Association of Edmonton, up 25 per cent from September 2012. The total value of home sales in Edmonton was $599.1 million in September 2013, up 35 per cent on a year-over-year basis.

Source: CREA

Best. Key. Release. Ever.

This key release is going in my books as one of the best ever.

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Candace gets the keys to her new home

After what seemed to be the longest wait to get a call from a lawyer to confirm key release it finally happened.  I got the call and immediately called Candace to let her know.

The hours had gone by so slow today as we wanted so bad for Candace to be able to get her keys and share the experience with her boyfriend before she had to take him back to the airport to catch his flight.

As I pulled up to her new home I got out of the car and started walking towards her and held the keys up and this is where the fun starts.  Candace covers her face and begins to cry.  The joy could not be contained.  She had waited so long and finally found the perfect home.

She kept repeating “Tracey I can’t believe this is mine”…

This is what it is all about.  I LOVE MY JOB!

Condos a hot seller in June in Edmonton

Another article of interest to investors.  Condos are usually the leading edge of a rising market…

Condos a hot seller in June in Edmonton

EDMONTON JOURNAL JULY 3, 2013

EDMONTON – Condominiums were the biggest price gainers in June for the Edmonton region.

Statistics released Wednesday by the Realtors Association of Edmonton put the average condo selling price for the month in the census metropolitan area at $261,854, up 10.2 per cent from May and 8.7 per cent from June 2012. June’s median price was $242,500, up 6.4 per cent from the previous month and up 6.8 per cent year-over-year.

Single-family dwellings sold for an average of $412,269, down 1.4 per cent from May and up 2.3 per cent from June 2012. The median selling price was $380,000, down 2.0 per cent monthly and up 2.2 per cent annually.

The average all-residential price for the Edmonton region in June was $259,631, an increase of 0.8 per cent from May, and up 4.2 per cent compared to a year earlier.

“Economic conditions in the Edmonton area are generally positive and this is reflected in our local housing market,” said association president Darrell Cook. “Prices have risen slowly through the first six months and there is nothing in our local economic trends to indicate that this period of stability will change.”

The association said single-family home sales of 1,080 in June were off 4.9 per cent from June 2012.

There were 470 condo sales in June compared to 536 a year earlier, but for the year to date, condominium sales were up because of a lack of lower-priced single-family homes, the association said.

The inventory of homes on MLS has increased over the two past quarters to 6,078 properties — still lower than the supply of 6,435 at the end of June 2012.

Source Article

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