Canadians feel the top priorities when purchasing a luxury home are:

Kitchens - A Commercial style kitchen with all the upgrades and luxurious finishes is very desirable.  Top-of-the-line appliances, such as high-heat ranges and cook-tops, large-capacity refrigerators and freezers, multiple sinks, deep fryers and even wood-fired pizza ovens are coveted.

Wiring - Increasingly common in high-end homes, smart wiring provides the correct outlets to install a home theatre and highly functional home office.  Driven by the digital age, consumers want their homes to be modern, convenient, and entertaining.

Floors - As marble, stone and tile floors can get cold very quickly on a Canadian winter day, heated floors are gaining new found popularity.  Buyers are drawn to this comfort advantage, expecting floors to feel warm and snugly in the morning.

Theatres - The in-home luxury theatre can come in many different shapes and sizes, but all are consistent in featuring large screens, big comfy chairs, stadium seating large enough to seat 10 comfortably, floor lights, soundproofed walls, sub woofers, front projection, and wet bars.

Gyms - Healthy living is more than a trend;  it's a lifestyle.  In between taking children to activities, cooking and grocery shopping, many find it more convenient to work out at home.  In-home fitness centres can include Stair-masters, free weights, as well as basketball courts and yoga studios.

Pools - I'm not too sure about this topic for Victoria...but apparently, pools are becoming important for luxury homeowners and putting an emphasis on style.  With the addition of a beautiful grotto-like background, it is easy to understand why the remarkable design of an infinity pool has become a norm in million-dollar-plus homes.

Caveat:  Adding Children to Title of Property as Joint Tenants

Clients wishing either to avoid probate filing fees or disinherit an errant child will often ask whether or not they can add another adult child to the title of their home as joint tenants.  Upon the death of the parent such real estate will by right of survivor ship automatically transfer into the name of the surviving adult child.  It was generally accepted that the law of presumption of advancement applied to such a transfer.  In other words, the transfer by the parent of a one-half interest in the parent's home to an adult child was deemed to be a gift to the child and accordingly did not form part of the deceased parent's estate.  Hence no probate filing fees nor challenges pursuant to the Wills Variation Act.  Two recent Supreme Court of Canada decisions have now impacted the foregoing.  In May 2007 the SCC released the Pecore and the Madsen Estate decisions.  In these decisions, the SCC reviewed the common law concepts of presumption of advancement and resulting trusts.  When a parent either places his or her assets in a joint tenancy account with his or her child or add his or her child to the title of the parent's home as a joint tenant, the question is whether the parent intended to make a gift of the beneficial interest in the accounts or the real estate upon the parent's death to the child or whether the child holds the beneficial interest in the accounts or real estate in trust for the parent, either during the parent's lifetime or when the parent dies, for the parent's estate upon a resulting trust. 

The space allotted for this article does not permit an exhaustive review of the SCC cases however in my opinion persons advising parents who are considering placing assets in joint tenancy with their children must now ask:

• is the intent of the parent to gift the property to the child or does the child take the interest in the property in a resulting trust?;
• if a gift, is the intent of the adult child to take the beneficial interest immediately or only at the parent's death?; and
• if a resulting trust, what are the terms of the trust, both during the parent's lifetime and upon the death of the parent.

In a nutshell, the simple act of a parent adding their child to the title of their home as joint tenant is no longer so simple.  The parent's intention must be determined and it is important that appropriate documentation is prepared in order to reflect the parent's intention.  Such documentation would include either a deed of gift or a trust agreement, both acknowledged by the child.

By Frank B. Carson, B. Comm., LL.B Cox Taylor

Oak Bay Stats from the Victoria Real Estate Board for the month of May:

Oak Bay had a total of 32 home sales.  The average price was $772,350.  Six condominium sales in Oak Bay with the average price being $322,917.  One lot sold for $1,125,000.  Year to date there have been 111 sales all together in Oak Bay.

Four homes sold in the price range of $1,000.000. - $4,999,999.  Year to date there have been a total of 17 homes selling in this price range.  

Oak Bay is considered the community that most exemplifies the Victoria lifestyle with its beautiful homes, famous gardens and tastefully quaint shops and fine restaurants.  Located east of downtown, it has a beautiful coastline overseeing both the Strait of Georgia and the Strait of Juan de Fuca and is home to the well known Victoria Golf Club, the Royal Victoria Yacht Club, the Oak Bay Marina and a number of very fine private and public schools. 

Top 10 Tips

Embarking upon the cottage buying process can be daunting. Identifying and narrowing down options are important first steps as is aligning with a reputable real estate agent who knows the recreational area. There are many things to consider, outlined here are tips to keep top-of-mind.

1. Define your recreational needs (e.g. water sports or no sports, rustic or wired cottage, year round or seasonal)
2. Determine if the prospective cottage and/or area will satisfy those needs (e.g. big or small lake, rocky vs. sandy shoreline, phone line accessibility)
3. To really understand the area, vacation there
4. Educate yourself on the various water systems (e.g. septic tanks, wells, and holding tanks)
5. Find out what covenants/fees apply (e.g. road access, snow removal etc.)
6. What is the proximity to amenities (e.g. hospitals, grocery store, marina facilities)?
7. Are you a north shore or south shore person? Do you want a sunrise or a sunset?
8. Hire a professional home inspector (e.g. is the cottage's foundation solid, can you build on it?)
9. Determine what the local bylaws are with respect to building and permits
10. Spring/summer is a good time to buy because you can see the quality of the shoreline/water, however you will likely pay top dollar. If you buy in the fall, you are likely to get a better price

FEMALES DRIVE HOUSING DEMAND AND HAMMER AWAY AT RENOVATIONS

- Royal LePage survey finds 25% of women searching for a home are looking for a 'fixer-upper' and plan to do the work themselves

Preparing for Home Ownership

Women are embracing the home buying process and taking charge.  They are readying themselves for bidding wars and willing to take on various types of home renovations. 

Of the women polled who own or rent and intend to purchase a home in the next three years, 56 per cent are willing to participate in bidding wards, in comparison to only 49 per cent of men who are willing to compete.  The frequency of bidding wards tends to very across regions, and also fluctuates among buyer demographics.  For example, in Vancouver, female buyers are used to the all too common bidding wards, according to qualitative research.  In Vancouver, the price of entry is usually attached to a bidding war.  If it is a property they want, women are not deterred from multiple offer situations.

When current female homeowners and renters who intend to purchase in the next three years were asked,  "When searching for your home, which type of home would you be looking for?" 25 per cent said that they are looking for a 'fixer-upper' and plan to do the work themselves, while only nine per cent will hire a contractor.

While the rise in female homebuyers is prevalent in all the major Canadian cities examined, some regional variances were noted.  Based on qualitative research, women in Toronto, Halifax and Regina are more prone to take on home renovations than women in other cities.  In Halifax and Regina younger female purchasers will flirt with more cosmetic home renovations such as painting and flooring to enhance and update their properties.  In contrast, in Toronto, older, more mature women consider larger renovations as a great way to increase their home's equity.

"Single women now plays significant role in the housing market.  Eager to experience the pride of ownership and exercise their independence, we are seeing growing numbers of women buying their first home on their own, trading-up homes as they progress professionally and taking on home renovations," added da Rocha.  "Today's woman is much more financially astute than her counterpart a decade ago, and is well versed in real estate as a solid long-term investment."

CHALLENGING TRADITIONS 

More groomzilla than bridezilla?  When it comes to signing on the dotted line, it is a mortgage certificate, not a marriage certificate that women favour.  When asked, "Given the chance, how likely would you be to go without a wedding reception in order to put a larger down payment on your first home?" 34 Per cent of women who will purchase their first home in the next three years said they were very likely to go without a reception, in comparison to 27 per cent of men who gave the same answer.  And it seems both men and women have become less traditional with each passing year.  A Royal LePage survey commissioned in 2004 found that 30 percent of women and 15 per cent of men who were planning to buy their first home were very likely to forgo a wedding reception in order to put a larger down payment on their home.

Additional Poll Findings:

*  Among those who own and rent and intend to purchase a home/condo in the next three years, men and women both rank equally (81%) taking out a mortgage from a bank, however, nine per cent of men said they would rely on their family to pay for their entire home, in comparison to only three per cent of women.

*  Of women who own, who don't intend to purchase in the next three years, when asked, "Which one of the following motivations most influenced your decisions to purchase your home?"  the top three responses included:  it makes more sense than renting (36%), want to put my money into a good investment (22%) and pride of ownership (13%).

*  Among women who are intending to purchase in the next three years,  when asked, "Which methods will you use to educate yourself about home purchasing?"  the top three responses cited were speaking with a real estate agent (83%), speaking with friends and relatives (78%) and using real estate and financial websites (64%).

SUMMARY

Women have always played a significant role in Vancouver's housing market, their impact in the past three to five years has become increasingly more profound.  Among first-time homebuyers condominiums in the $300,000 to $400,000. range are typically the most desired: Kitsilano and downtown are two of the more popular areas.  Divoced women and move-up buyers in the city typically gravitate to half-duplex townhouses and detached houses in the price range of $700,000 to $1-million.  In order to provide additional income, there is a growing trend among mature single buyers to purchase properties with rental units.

Methodology

The report comprises a nationwide research poll of home buyer attitudes and actions of Canadian men and women (conducted by Maritz Reserach) as well as a regional market analysis of trends and activities with respect to female homebuyers.

Maritz Research conducted a telephone survey among a representative, random sample of 1,002 Canadian females and 1,00 males aged 18 years and older.  Within the female and male sample sizes, the results are considered accurate to within +/-3.10%, 19 times out of 20 for both.  Interviewing was conducted between February 15 and February 20, 2007.

For more information visit www.royallepage.ca.

2007 BODES WELL FOR ALL IN VICTORIA REAL ESTATE

In 2006 the value of all property transactions through the Victoria Real Estate Board's (VREB) Multiple Listing Service hit a new record high of nearly $3.4 billion in 2006, up from $3.2 billion in 2005. 

For the first time in history, the value of single-family home sales exceeded $2 billion; the value of all condominium sales increased by nearly seven percent to over $614 million.  The overall average price for single family homes for the year rose by 12.5% to $521,460; the average for condominiums rose by 13.6% to $286,058 and the average for town homes rose by 6.3% to $366,080.

In addition, last year more properties became available for sale and the rate of price increases slackened a little bit.  "Volume and average transaction values were both healthy; "notes Judy Gage, President of Royal Le Page Coast Capital Real Estate.  All indicators point to a strong and stable real estate market in 2007.  "We expect to see a wide choice of properties available for buyers coupled with strong demand for homes that re priced realistically.  Prices are expected to increase during the year, but at t more modest pace than in recent years." 

Victoria will remain an excellent real estate market for the long term.  In-migration is predicted to remain strong, employment is up and we continue to be ranked as one of the most beautiful cities in the world, according to the prestigious travel magazine, Conde Nast Traveller.

For more information on the burgeoning island real estate market, please call Brenda Russell at 250.744.4556 or toll free from anywhere in North America at 1 800 550 0585.

In the popular Oak Bay area of Victoria, so far you will see the activity in the different Map areas.. I started with South Oak Bay.

South Oak Bay has 16 current listings, 4 pending sales and 1 sold listing.

North Oak Bay has 1 current listing and no pending sales or sold listings.

Gonzales has 2 current listings, 1 pending sale and 1 sold listing.

Estevan has 5 current listings, 1 pending sale and 4 sold listings.

Henderson map area has 12 current listings, 1 pending sale and 6 sold listings.

Uplands so far this year has 11 current active listings, 1 pending sale, and no sales to date.

I hope this helps give you an idea of the activity in Oak Bay since the start of the year!  Stay tuned for more updates on the Listings and Sales in the Oak Bay Real Estate Market.

Victoria Real Estate Board Statistics for 2006

Taken from the Victoria Real Estate Board statistics, it showed that single family listings were up 14% over 2005.  The number of "sales" were down 4%.  Single family dwelling prices went up 11% and sale to list ratio was at 64%.  The average number of days homes were on the market was approximately 43 days before selling. 

Condominiums for 2006...listings went up 35%.  The number of unit sales went down 4%.  The average listing price went up 14% and the sale to list ratio was at 59%.  The average number of days condominiums were on the market before selling was 46 days. 

Currently there is good activity however some home Sellers are slow to accept the balancing of the market and have great price expectations. 

Canada Keeps Key Rate at 4.25%, Says Risks Have Ebbed (Update1)

Jan. 16 (Bloomberg) -- The Bank of Canada kept its benchmark interest rate unchanged for a fifth meeting, saying the risks to the economy from an export slowdown or a housing boom have ``diminished'' and remain ``roughly balanced.''

The target rate for overnight loans between banks remains 4.25 percent, the highest since August 2001 and 1 percentage point less than the U.S. Federal Reserve's target. All 26 economists in a Bloomberg News survey had predicted no change.

``The Bank continues to judge that the risks to the inflation projection are roughly balanced, but the main upside and downside risks outlined in the October Monetary Policy Report have diminished somewhat,'' said the central bank's statement today from xml:namespace prefix =" st1" ns =" "urn:schemas-microsoft-com:office:smarttags"" />Ottawa.

Canada's economic growth slowed to a 1.6 percent annualized pace in the second half of last year, slower than the 2.4 percent the central bank predicted in October, and will accelerate to a 2.5 percent pace in the first half of 2007. Domestic demand has remained strong and exporters have made much of the adjustment to a drop in U.S. demand, the central bank said.

Bank of Canada Governor David Dodge has kept rates unchanged since May because a high dollar slowed exports, helping control inflation in an economy overstretched by record demand for new homes and energy. His next move depends on whether exports rebound this year or if there's a shift in the job market, where unemployment is the lowest in three decades.

`On Hold'

``The Bank will be on hold for a few more months at least, though we still expect rate cuts thereafter,'' Avery Shenfeld, an economist with CIBC World Markets in Toronto, said in a note to clients. The central bank is focusing more on low unemployment than on slower economic growth, he said.

Canada's economy probably grew at a 1.5 percent annualized pace in the fourth quarter, the slowest pace since the second quarter of 2003, according to the median estimate of 13 economists surveyed Jan. 2-8 by Bloomberg News. Growth will probably rebound to 2.3 percent this quarter, the survey said.

The central bank will probably cut the benchmark rate in the third quarter, the economists' poll shows. The next rate announcements are scheduled for March 6 and April 24. Dodge also holds a press conference in Ottawa Jan. 18 after releasing the broad economic forecast used to make today's decision.

Full Output

Canada's economy will remain ``near'' full output this year and next, the Bank of Canada said today. Core inflation, the central bank's preferred measure of future price trends because it excludes eight volatile items and the impact of tax changes, will slow to the bank's 2 percent target in the first half of this year.

Dodge said last month that the economy's slowdown would last longer than he had expected, after saying in November that it would be ``mild'' and ``short-lived.''

The Canadian dollar's rise to a 28-year high of more than 91 U.S. cents in May has hurt manufacturers, by making their products less competitive in the U.S. and elsewhere overseas. Canada's trade surplus with the U.S. fell to a three-year low of C$6.65 billion in October before rebounding to C$7.34 billion in November as the dollar fell to about 85 U.S. cents.

The currency, which touched a 13-month low on Jan. 11, has fallen on lower prices for Canada's exported crude oil and natural gas. Today the currency rose to 85.68 U.S. cents at 9:18 a.m., from 85.59 cents yesterday.

Oil Reserves

The western province of Alberta has the largest oil reserves outside the Middle East, and energy companies have scrambled to find workers to build pipelines and refineries. That has boosted wages and lowered the jobless rate to 6.1 percent in December, which matched a 31-year low set in May.

Consumers have spent their new paychecks on new homes, driving prices up 11 percent in November from a year earlier. Dodge has said consumer spending and home prices create the risk that inflation may move above his 2 percent target.

The consumer price index excluding eight volatile items such as fruit and gasoline rose 2.2 percent in November from a year earlier, led by food and shelter costs. Permits for new buildings rose to a seasonally adjusted record C$6.3 billion in November, suggesting housing costs may increase further.

Central bankers ``aren't going to reduce rates until they see the core inflation rate below the 2 percent level,'' Dale Orr, managing director of Canadian economic research in Toronto for Global Insight, a forecasting firm, said before today's announcement.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net .

In the Fairfield area of Victoria, since January 1st there are 4 new listings so far this year. Three detached single family homes and one strata duplex.  New listings range from $454,900. to $739,000. as of today.  Also, today it started to snow and is expected to hit 0 degrees...so real estate will probably be a little quiet for the next couple of days.   

Friday Dec. 1st is World AIDS Day. 

Watch Bono's message to you for World AIDS Day. (RED) NEWS

http://www.joinred.com/news.asp