Durham Region Real Estate Blog

So the real estate market is booming and it seems that not much else is! In 2009 there has been a 20% increase in the average purchase price of a home in Canada. There is excessive demand in the market and the government is starting to worry that home buyers are taking on too much debt.

The government says they are going to keep a close eye on the market and the debt load of Canadians to see if we are getting ourselves into too much trouble. There is talk they will change the laws and you’ll need to have  a larger downpayment before you can qualify for your mortgage. They may also reduce the maximum amortization period from the current 35 year maximum. A balance will need to be maintained to stop people from being overextended, while not increasing the rates for the rest of us.

So, what does all this mean for you? Well, don’t panic. You’ll be fine. If you have an existing mortgage, check on your interest rate. Are you locked in or do you have a variable rate mortgage? Perhaps you can refinance to lower your interest rate. If you can, then take advantage of the lower rate to shorten your amortization period. Maintain the same payments you are currently making and chip away at the principal owed. You could be mortgage free years sooner!

If you are thinking about buying your first house, make sure you don’t overextend yourself based on very low interest rates and long amortization periods. You don’t want to find yourself in a bind when it comes time to renew your mortgage and interest rates have increased. Ask your mortgage broker or financial adviser to educate you on what the difference in your payments would be if the interest rates were 1% or 2% higher than they are now. Could you still afford that mortgage?

Most mortgages are arranged using conservative numbers, so don’t worry. Just ask plenty of questions and do business with people you can trust. Email me with any questions you have and I’ll give you as much information as I can.

In the Durham Region there were 695 sales of single family homes in November which is down 19% from the 860 record sales in October, but up a whopping 70% from the 409 sales in November, 2008! Not bad at all. One year ago many people would have bet that the market would be back up tot the levels we saw in November 2004 to 2007 which averaged 661. At $286,497, average prices dipped slightly from October but did increase 6.5% from the $268,902 we saw in November, 2008.

The number of listings on the MLS® system have dropped again this month, to 1,593 from 1,753 last month and 44% less than the 2,838 of November, 2008.  This slumps is reflective of a seller’s market!

So what will the final numbers be for 2009? Tune here to find out and in the meantime, have a fantastic Christmas!!

If you are buying a rural property, you are likely going to have a septic system to treat your waste water. When functioning properly, the septic system treats the waste water to a safe level and returns the treated effluent to the ground water system. The septic system consists of a tank and a soil filter called a leaching bed or drain field. 

The septic tank is buried and watertight and it accepts waste water from your house.  Solid waste settles to the bottom of the tank to form a sludge layer, and oil and grease float to the top to form a scum layer. You should have your tank pumped out about every three to five years, or when the tank is filled about 1/3 of the way with solid waste.

Partially treated waste water from the septic tank flows into the leaching bed. This is a network of perforated plastic distribution pipes laid in gravel trenches over a layer of soil. The size and design of the bed is based on the volume of sewage generated, the absorptive capacity of the underlying soils and the depth to the high ground water table or limiting/restrictive layer. The leaching bed is a soil filter which uses natural processes to treat the waste water.

A biomat layer of bacteria does much of the treatment. Bacteria in the layer and surrounding soil consumes the organic matter and transforms ammonia nitrogen into the less toxic nitrate-nitrogen.  This bacteria is sensitive and does a good job of treating the waste in your septic system so it makes sense to avoid poisoning these micro-organisms. Even small amounts of paints, solvents, thinners , nail polish remover and other common household compounds flushed or poured down the drain can kill the bacteria that break down the organic matter in the waste water. Household disinfectants can be used in moderation without affecting the operation of the septic system, however, overuse of these products can kill the micro-organisms. There are products promoted to clean or enhance, your system, but they are typically of little value and are not recommended.

Also avoid putting oils, grease, tampons, condoms, paper towels, facial tissues, cat box litter cigarette filter or kitchen wastes into the system. You don’t want to clog up your system as the repairs can be costly.

Try also, to control your water usage. Water moves out of your tank and into the leaching bed as fast as water flows into the tank. The more time that solid waste has to settle in the tank, the less likely that it will flow out into your leaching bed and clog up your system.  Whenever possible, you should try to regulate the amount of water entering the septic system; for instance, laundry can be spread out over several days during the week.

Looking after your leaching bed is easy. Maintain a good cover of grass. Good ventilation and adequate sunlight should be maintained to promote evaporation. Do not drive vehicles or machinery of the bed, as weight could crush the distribution popes or compact the soil. In winter, avoid packing the snow down with a snowmobile as this reduces the natural insulating effect of the snow and increases your chance of freezing the pipes.  Keep trees and shrubs away from your bed as their roots can wreak havoc on the pipes.

Repairs will have to be done eventually, so if you notice a problem like ground water around the septic tank or over the leaching bed, toilets and showers taking longer to drain or occasional sewage odours, make sure you have a professional out as soon as possible!

Septic systems have been around for a very long time and are successful at treating waste water. So don’t worry about buying a property with one, just ask some questions and be sure to work with a real estate agent with a good understanding of them!