March 30, 2017

A foreign national who purchases a home within Metro Vancouver (GVRD) pays an additional tax of 15%.  The government recently announced that this tax will no longer apply to foreign nationals who receive confirmation under the B.C. Provincial Nominee Program.  To qualify, the buyer must be a confirmed B.C. Provincial Nominee before the title changes hands and the property must be used as a principal residence.  Further, this exemption may only be claimed once. 

If the foreign national purchases another property, they will pay the additional property transfer tax.

From what I can tell the B.C. Provincial Nominee Program is a program to allow skilled and qualified people to enter the labour market.  Feel free to review www.welcomebc.ca/immigrate-to-b-c/b-c-provincial-nominee-program.

If you are helping a foreign national purchase property within Metro Vancouver you should ask if they are registered under the B.C. Provincial Nominee Program to determine if they are eligible for this exemption.

Also, a refund may be available to a foreign national who has paid the additional property transfer tax between August 1, 2016 and March 17, 2017 and

1.            is subsequently confirmed as a B.C. Provincial Nominee, or

2.            becomes a permanent resident or Canadian citizen within 1 year of the transfer date.

Application forms are available on the government’s website.

With all of the recent changes, some website sand PTT calculators are a little out of date. 

Finally, I send these updates to hundereds of people I have worked with over the years.  There are occasions when these emails generate many questions.  While I will try to answer every question in the order on which they are received.

Best,

Repairs And Upgrades: How Much Will They Cost?

During the process of buying or selling a home, clients often learn about recommended or required repairs and upgrades. This can happen as a result of your Realtors' expert knowledge of the market and comparable homes as well as a pre-listing home inspection. Of course, the first thing clients want to know is, "How much will that cost?"

After 26 years in the Real Estate industry and more in construction experience, I have compiled Residential Construction and Remodeling Estimatescost guide, which provides estimated cost ranges for repair and/or replacement of the major systems and components in a home. It also includes general guidelines for the life expectancies of those systems. This information can help your clients make informed decisions when they're considering home repairs or improvements, and is valued by buyers and sellers alike.

When entering a home the first thing most people notice is the flooring, you want to make an impression cleanliness and quality.

Floors

Refinishing Hardwood                                                                    $3 - $6 / sq. ft

Carpet Cleaning                                                                             $125 / room

Ceramic Tile                                                                                   $6 - $20 / sq. ft

The heart of the home should show clean and be efficient.

Kitchen

Cabinet re-finishing                                                                        $30 - $60 per door

Cabinets                                                                                         $3,500 plus

Kitchen counter - laminate                                                             $45.00 / Ln ft

Kitchen counter - Marble/Granite                                                   $80 - $300 Ln ft

New and fresh paint should be in neutral or earth tone colours

Paint

Inside                                                                                             $125 per room

Outside                                                                                          $3,200 plus

Decks are an extension of your living space, they should be cleaned or pressure washed and repaired as required.

Exterior Decks

Pressure Treated                                                                          $15 - $30 sq ft

Custom Designed & Built                                                              $55 - $100 sq ft

Windows should be cleaned inside and out. If any seals have been broken replace the pains or if need be the entire window.

Windows

Skylight                                                                                          $800 and up

Casement - replace                                                                       $50 - $100 sq ft

Above is just a sampling of the list of estimated costs for hundreds of repairs/upgrades I have compiled. If you have a question regarding any repair or replacement inside or out, I can help. I also have a number of qualified bonded contractors, skilled trades and landscapers I have worked with over the years.

These estimates reflect the average basic costs for supplies and installation of building materials in Canada. Costs may vary depending on regions, upgrades, complexity, and disposal fees inn your area.

February 8, 2017

Canadian housing starts began the year on a high note, edging up from a strong December to 207,400 total units at a seasonally adjusted annual rate (SAAR) in January. The six-month trend in Canadian housing starts was also higher at 199,900 units, which is slightly above average annual growth in Canadian households. 

Housing starts in BC slowed to begin the year from a torrid pace is 2016. Starts were down 33 per cent on a monthly basis and 13 per cent year-over-year,  though unseasonably high snowfall in December and January likely played a role in limiting construction activity. Single detached starts were down 36 per cent while multiple unit starts were down 5 per cent year-over-year. 

Looking at census metropolitan areas (CMA) in BC, total starts in the Vancouver CMA were down 24 per cent year-over-year in January, with a sharp decline in single detached starts compared to last year. In the Victoria CMA, housing starts were up 28 per cent year-over-year due to strong growth in new multiple unit starts. New home construction in the Kelowna CMA fell 6 per cent compared to last year as fewer multiple unit projects got underway. Housing starts in the Abbotsford-Mission CMA were 87 per cent higher compared to January 2016 as several multiple unit projects broke ground, leading to a doubling of multiple unit starts compared to last year.

Thinking of buying or selling in 2017? I am celebrating 26 years in realestate & construction practises. I will get the home or property you really want. My clients call me innovative, insightful, diligent and direct. All of my clients enjoy my competitive knowledge base an advantage they won’t get from anyone else. I treat my clients like family, so they are comfortable moving forward, and have complete confidence they have made the right decision.

I'm never too busy for any of your referrals.

Your Realtor for Life

Brian

Surrey RCMP search warrants and arrests yield street drugs and cash:

Last week Surrey RCMP arrested three individuals and seized thousands of dosages of street level drugs, including fentanyl, and approximately $16,000 in Canadian currency as a result of a two month long drug investigation.
In November 2016, Surrey RCMP launched a strategic drug investigation as a result of the high number of overdose related deaths. The investigation focused on drug traffickers who were believed to be supplying drugs to the 135A Street area in north Surrey.
As a result of this complex investigation, a search warrant was executed on January 13, 2017, in the 10100 block of 127th Street in Surrey. This search resulted in the seizure of approximately 240 doses of suspected heroin/fentanyl, 21 doses of methamphetamine packaged for sale, and approximately $13,000 in Canadian currency. A 30 year old Surrey man was arrested.
A subsequent search warrant was executed on January 26, 2017, in the 9500 block of 127th Street. The search warrant resulted in the seizure of 3,600 doses of suspected heroin/fentanyl, 500 doses of methamphetamine, and 410 doses of crack cocaine all packaged for street level sale. Also seized was approximately $3,000 in Canadian currency. Lee Roy BRAATEN, 54 years old from Surrey, has been charged with three counts of Possession of a controlled substance for the purpose of trafficking.
Also arrested and charged with drug related offences is 47 year old Surrey resident Wanda STOPA. STOPA was arrested in the 10600 block of 135A Street as a result of this ongoing investigation. Her arrest and the subsequent seizure of suspected heroin/fentanyl prevented approximately 300 doses of the potentially fatal drug from reaching the streets. STOPA has been charged with two counts of Possession of a controlled substance for the purposes of trafficking and one count of Failing to comply with a recognizance.
“Surrey has had the second highest number of overdose deaths in BC, second only to Vancouver,” says Inspector Shawna Baher, Surrey RCMP Proactive Enforcement Officer. “The 135A Street area and the people that frequent that area have been significantly impacted by the ongoing fentanyl health crisis. These drug seizures, arrests, and charges were the result of the coordinated efforts of the Surrey RCMP Drug Section, our Crime Reduction Unit, and the Surrey Outreach Team. This investigation will have a significant impact on illegal drug activity in this area and has no doubt saved lives.”
“The Surrey Outreach Team has been working diligently to build relationships with the residents and businesses in and around 135A Street,“says Inspector Andy LeClair, Surrey RCMP’s Community Support and Safety Officer. “By being present and gaining an understanding of the needs of the residents and businesses, we are able to improve public safety. One of the goals of this team has always been to take any enforcement action necessary as it relates to those that prey upon the most vulnerable people in this area.”
For more information on the Surrey Outreach Team and how it is engaging the community please visit the Surrey RCMP website.

Canadian Retail Sales - January 20, 2017

Canadian retail sales inched 0.2 per cent higher in November.  Sales were higher in just 5 of 11 sub-sectors, with motor vehicle and parts dealers and building materials supplies leading the way.  E-commerce sales accounted for 3 per cent of total retail sales, the highest proportion to date in 2016.  Given today's data,  we are currently tracking fourth quarter Canadian real GDP growth at 1.5 per cent. 

In BC, retail sales were down 0.7 per cent on a monthly basis, but were 5.5 per cent higher year-over-year.  Year-to-date, retail sales in the province are up 6.5 per cent. 

The BC economy is the best in the country based on the policies of the current administration.

January 18, 2017

The Bank of Canada announced this morning that it is holding the target for its overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that uncertainty in the global outlook, particularly with regard to policies in the United States, is undiminished. The Canadian economy is forecast to grow 2.1 per cent in both 2017 and 2018, implying the Canadian economy will return to full capacity in mid-2018.  On inflation, the Bank noted that it continued to be lower than expected but should return to it 2 per cent target in coming months.

Political uncertainty in the United States will likely govern the direction of both policy rates and long-term bond yields over the next year. The interest rate on 5-year government of Canada bonds has risen to its highest point in a year, which is adding upward pressure to mortgage rates offered by Canadian lenders.  While the Canadian economy is forecast to post steady growth in 2017, overall slack in the Canadian economy remains persistent.  Without a significant uptick in economic growth, inflation will likely continue to trend at or below the Bank's 2 per cent target.  That, along with lingering uncertainty, will keep the Bank sidelined through 2017 with a chance of lowering its target rate should current downside risks to the economy become realized.

Thinking of buying or selling in 2017? Celebrating 26 years of experience in realestate and construction practises I get the home or property you really want. I’m innovative, insightful, diligent and direct. All of my clients enjoy a competitive knowledge base advantage they won’t get from anyone else so they can move forward with complete confidence. Honesty, Dedication and RESULTS! "

I'm never too busy for any of your referrals.

Your Realtor for Life

Brian

January 10, 2017

The BC Government announced on Tuesday, January 10 that it would be raising the Home Owner Grant threshold to $1.6 million from $1.2 million. This represents a 33 per cent increase compared to last year.

Anyone who owns a home valued at up to $1.6 million may be eligible to receive the full home owner grant of $570, while a partial grant may be available to owners of homes above the new threshold.

The increase means that province-wide, 91 per cent of homes will remain below the threshold. In Metro Vancouver, that includes 83 per cent of homes. For properties assessed above the threshold, the grant will be reduced by $5 for every $1,000 of assessed value in excess of the threshold.

There are two types of home owner grants:

• The basic grant can reduce residential property taxes on an owner’s principal residence by up to $570, or if the home is located in a northern and rural area, up to $770.
• An additional grant is available to home owners 65 years of age or older, or who qualify under the persons with disabilities category, or who are the surviving spouse of a veteran who received certain war-veteran allowances. This additional grant can reduce residential property taxes on an owner’s principal residence by up to $845, or if the home is located in a northern and rural area, up to $1,045.

• Home owner grant thresholds in recent years:
  • 2016: $1.2 million
  • 2015: $1.1 million
  • 2014: $1.1 million (threshold lowered as a cost-savings measure)
  • 2013: $1.295 million
  • 2012: $1.285 million
  • 2011: $1.15 million
  • 2010: $1.05 million

Low-income home owners who would have received the additional home owner grant can apply for a low-income supplement, which replaces any reduction in the grant caused by having a property valued over the threshold. The low-income supplement is available to qualifying seniors, certain veterans or their surviving spouse and persons with disabilities.

Property tax deferment is another option that can help make home ownership more affordable. Property tax deferment is a low-interest loan program that allows qualifying BC home owners to use the equity in their homes to defer payment of their annual property taxes. Qualifying home owners can defer all, or a portion of, the annual property taxes on their principal residence.

Learn More:

For more information about home owner grants, visit: http://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/reduce/home-owner-grant/under-65
or contact your municipality or the Province if your property is in a rural area.

For a current market evaluation on your home or investment property visit: http://brianwhite.ca/home-evaluation.html

if links don't connect, copy and paste to your browser.

Thinking of a move now your 2017 assessment is up?

Staging tips,

1. Don't be afraid to open up spaces when ever possible in order to make your home more livable for today's lifestyle.

2. Scale the furniture to suit the rooms while avoiding too many small pieces, fewer large items work better.

3. Colour: Don't go overboard with a variety of shades, stuck to a simple colour palette for continuity.

4. Details make a difference. Consider adding special elements like wood beams or highlights if your going for a cottage feel or upgrade your doors.

5. Use recessed spotlights to highlight a few of your favorite features inside and out in the garden.

Get a complimentary market evaluation in 24 hours at www.brianwhite.ca

Below are five things you should know about your property assessment and how to dispute what you think is inaccurate.

1 - Your property assessment is essentially an appraisal of your property's value considering changes in land value, including things such as rezoning nearby, neighbour home sales and improvements to your home or building. Assessments are set by the authority July 1st every year.

Whatever market changes that happened after July 1, 2016 like the impact of the 15% foreign buyers tax, will be reflected in your 2018 assessment.

2 – Municipalities use assessments to adjust property tax rates to account for changes in assessed values for various property classes. The concern for many homeowners is whether their assessment rose more than the average for their property class. If so, the homeowner will see a tax increase larger than the municipal’s general increase. Typically, in areas where there has been a number of older home demolished and new much larger homes were built. Homeowners whose assessments rose less than the average will get a tax break.

3 – The provincial government uses property assessments to establish eligibility for the B.C. Homeowners Grant ($570 per household offered to help defray property taxes on home that are their principal residence). The threshold value for 2016 was set at $1.2 million, above which the grant is reduced $5 per $1,00 in value. However Finance Minister Mike de Jong said that the province is reviewing the threshold considering soaring property prices and assessments.

4 – Homeowners with questions regarding their assessments can go online at B.C. Assessment’s e-valueBC site to check how their assessment compares with their neighbours and comparable property sales that would have been used in setting the value. If that doesn’t answer questions, they’re welcome to call B.C. Assessment an assessor will figure out if there are any discrepancies. The B.C. Assessment Authority always encourages people to call, sometimes it’s something that can be resolved easily or give people a better understanding of how their assessment was determined.

5 – Homeowners always have the right to formally appeal their assessments if they disagree with the result. Failing an understanding at that level, the homeowner can file an independent complaint. Those are heard by a three-member independent property assessment review panel for each community.

The deadline to appeal your assessment is January 31, 2017. Typically only one to two percent of homeowners will appeal their assessments.

Assessments on average rose from 31.4 in Vancouver to 43.3 in Surrey, personally mine went up 49%.

Get your current market evaluation in 24hours at www.brianwhite.ca

Congratulations to Thea Copeman-Haynes from KUP for being awarded the Laura Szendrei Endowed Memorial Scholarship 2016

Sales of detached, attached and apartment properties in the region reached 39,943 in 2016, a 5.6 per cent decrease from the 42,326 sales recorded in 2015, and a 20.6 per cent increase over the 33,116 residential sales in 2014.

“It was an eventful year for real estate in Metro Vancouver. Escalating prices caused by low supply and strong home buyer demand brought more attention to the market than ever before,” Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president said. "As prices rose in the first half of the year, public debate waged about what was fuelling demand and what should be done to stop it. This led to multiple government interventions into the market. The long-term effects of these actions won’t be fully understood for some time.”

Residential properties listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 57,596 in 2016. This is an increase of 0.6 per cent compared to the 57,249 properties listed in 2015 and a 2.6 per cent increase compared to the 56,066 properties listed in 2014. “The supply of homes for sale couldn't keep up with home buyer demand for much of 2016. This allowed home sellers to raise their asking price. It wasn’t until the last half of the year that prices began to show modest declines.”

The MLS® Home Price Index (HPI) composite benchmark price for all residential properties in Metro Vancouver ends the year at $897,600. This represents a 2.2 per cent decrease over the past six months and a 17.8 per cent increase compared to December 2015.

December summary

Residential property sales in the region totalled 1,714 in December 2016, a decrease of 39.4 per cent from the 2,827 sales recorded in December 2015 and a decrease of 22.6 per cent compared to November 2016 when 2,214 homes sold. Last month’s sales were 8.1 per cent below the 10-year sales average for the month.

New listings for detached, attached and apartment properties in Metro Vancouver totalled 1,312 in December 2016. This represents a decrease of 35.1 per cent compared to the 2,021 units listed in December 2015 and a 58.3 per cent decrease compared to November 2016 when 3,147 properties were listed.

The total number of properties currently listed for sale on the MLS® in Metro Vancouver is 6,345, a 5.3 per cent increase compared to December 2015 (6,024) and a 24.3 per cent decrease compared to November 2016 (8,385).

Sales of detached properties in December 2016 reached 541, a decrease of 52.4 per cent from the 1,136 detached sales recorded in December 2015. The benchmark price for detached properties is $1,483,500. This represents an 18.6 per cent increase compared to December 2015 and a 1.8 per cent decrease compared to November 2016.

Sales of apartment properties reached 915 in December 2016, a decrease of 25.3 per cent compared to the 1,225 sales in December 2015.The benchmark price of an apartment property is $510,300. This represents a 17.3 per cent increase compared to December 2015 and a 0.3 per cent decrease compared to November 2016.

Town home and duplex property sales in December 2016 totalled 258, a decrease of 44.6 per cent compared to the 466 sales in December 2015. The benchmark price of an attached unit is $661,800. This represents a 20.4 per cent increase compared to December 2015 and a 0.8 per cent decrease compared to November 2016.

Get your current property evaluation within 24 hours at www.brianwhite.ca

Brian White

Licenced local Realtor since 1990.

SURREY, BC – Fraser Valley real estate experienced the strongest year in its history in 2016, with record-setting numbers seen in both total MLS® transactions and overall dollar volume sold.

The Board’s Multiple Listing Service® (MLS®) processed 23,974 sales in 2016, 13.6 per cent more than the 21,095 sales in 2015, and 12.6 per cent more than the previous record of 21,282 sales in 2005. The total dollar volume of MLS® sales was a record setting $16.2 billion, four billion more than the previous record set in 2015.

Of the total transactions for the year, 5,369 were townhouses sold and 5,069 were apartments, the highest each category has reached in the Board’s history.

Charles Wiebe, President of the Fraser Valley Real Estate Board, attributes this year's extraordinary market activity to a strong provincial economy and the diverse inventory available to consumers entering the Valley. "Our region boasts a vast range of homes available at all price points, which made it a very enticing option for buyers of all types last year."

For inventory, a total of 34,768 new listings were received by the Board’s MLS® system during 2016, the second highest in the Board’s history and only 883 behind the 35,651 received in 2008.

In December the Board processed 966 sales, a decrease of 37.4 per cent compared to December of 2015, but level with the ten-year average for the month. December’s total inventory in the Fraser Valley was 3,930 active listings; 29.8 per cent fewer than were available in November 2016 and 8 per cent fewer than December 2015.

Wiebe adds, “The Fraser Valley market was consistently strong throughout 2016, and at times tremendously active.

However, at year’s end, we see sales returning to more typical levels and low overall inventory.

“Moving into 2017 and the spring market, would-be sellers are in a great position to take advantage of strong pricing and, depending on the area, a limited selection for buyers. Talk to a REALTOR® who can help you kick-off the New Year with incredible opportunity.”

HPI® Benchmark Price Activity

• Single Family Detached: At $856,700, the Benchmark price for a single family detached home in the Valley decreased 0.5 per cent compared to November 2016, and increased 27.4 per cent compared to December 2015.

• Townhomes: At $416,600, the Benchmark price for a townhouse in the Valley decreased 1.8 per cent compared to November 2016, and increased 29.5 per cent compared to December 2015.

• Apartments: At $259,000, the Benchmark price for an apartment in the Valley increased 0.2 per cent compared to November 2016, and increased 26.4 per cent compared to December 2015.

Get your current market evaluation within 24hrs at www.brianwhite.ca

This past July, the British Columbia government unexpectedly slapped a 15% tax on any foreign national buying real estate in Metro Vancouver. This sudden move was designed to dampen the market for the steady inflow of offshore money – mainly Chinese – that has been blamed for Vancouver’s red-hot real estate market.

Some have speculated that Premier Christy Clark, who is running for re-election in 2017, took this measure to ease what was a growing chorus of criticism from NDP housing critic David Eby of her government’s apparent inaction in curbing an overheated housing market.

The tax seems to have had its desired effect: the volume of transactions since last summer has fallen dramatically, although prices remain relatively steady, with only a minor dip in the past few months. Lost equity for home owners :(

Vancouver is what we in the real estate trade call a “super-prime city.” Others in this category include Tokyo, Shanghai, Hong Kong, Singapore, London, Paris, Monaco, San Francisco, New York and Los Angeles.  These cities attract high-net-worth people who want to establish a residence. They also are places where they have confidence that their investment is safe and secure.

There are several key reasons investors continue to flock to these locations: the brand of the city, its reputation for safety and the rule of law, world-class services, easy access to amenities, quality of life and, finally, the prospect of capital appreciation.

Do I believe a 15% tax will stop Asians, and particularly Chinese, from investing in Metro Vancouver? Absolutely not. Moreover, such a tax won’t reduce the Asian thirst for an investment beachhead abroad. It’s been tried in places such as Hong Kong and Australia, and it has not slowed the inbound investment from China. The Socreds tried with the introduction of the PPT to curb the surge of Hong Kong money coming in and buying up expensive Vancouver properties.  That tax did'nt stop the Hong Kong buyer investing in Vancouver but it raised our prices and filled and continues to fill he coffers for the Government. I believe this tax will have the same affect and outcome.

The Chinese currency, the renminbi, continues to fall, which is fuelling fears of a bubble in China. People are looking for ways to protect their wealth, which is another reason why foreign safe havens will be in high demand well into the future. Higher taxes on foreigners won’t change that.

One of Vancouver’s strong attractions for the Chinese isn’t about to change – there is a deeply established and vibrant Chinese and Asian community here. According to the Asia Pacific Foundation of Canada, within the next 20 years Vancouver will be the city with the largest Chinese population outside of China itself.

Asians want to set down roots here. And that very much means buying property. People sometimes forget that Asians seek to invest overseas for more fundamental reasons than just a financial return. 

Middle-class buyers

Despite the common perception that Vancouver’s home prices have risen to stratospheric heights because of wealthy Chinese, most foreign buyers come from the new Chinese middle class. By some estimates, the new middle class in China is over 500 million people and growing fast. Even if a tiny fraction of them want to invest or live in Vancouver, that’s a huge number. Vancouver will be a preferred destination for foreign investors for many years to come.

Brian White (www.brianwhite.ca) has been a local realtor since 1990.

source in part by Tina Mak

January, 2017

You have talked about it and decided to put your home on the market.

As you start checking things off your to-do list, it’s also important to pay mind of what not to do. Below are a handful of things to get you started.

Don’t over-improve.
As you ready your home for sale, you may realize you will get a great return on your investment if you make a couple of changes. Updating the appliances or replacing that cracked cabinet in the bathroom are all great ideas; however, it’s important not to over-improve, or make improvements that are hyper-specific to your tastes. For example, not everyone wants a pimped-out finished basement equipped with a wet bar and lifted stage for their rock-and-roll buds to jam out on. (Okay, everyone should want that.) What if your buyers are family-oriented and want a basement space for their kids to play in? That rock-and-roll room may look to them like a huge project to un-do. Make any needed fixes to your space, but don’t go above and beyond—you may lose money doing so. Remember rooms with water get the best return on investment, kitchens and bathrooms.

Don’t over-decorate.
Over-decorating is just as bad as over-improving. You may love the look of lace and lavender, but your potential buyer may enter your home and cringe. When prepping for sale, neutralize your decorating scheme so it’s more universally palatable.

Don’t hang around.
Your agent calls to let you know they will be bringing buyers by this afternoon. Great! You rally your whole family, Fluffy the dog included, to be waiting at the door with fresh baked cookies and big smiles. Right? Wrong. Buyers want to imagine themselves in your space, not be confronted by you in your space. Trust me when I say, it’s awkward for your potential buyer to go about judging your home while you stand in the corner smiling. Get out of the house, take the kids with you, and if you can’t leave for whatever reason, take a book and sit in the yard or on your deck, this will get you out of their way and show them how relaxing your home is.

Don’t take things personal.
Real estate is a business, but buying and selling homes is very, very emotional. However, when selling your home, try your very best not to take things personally. When a buyer lowballs you or says they will need to replace your prized vintage carpet or barn board pannelling with something “more modern,” try not to raise your hackles.

There is a lot of speculation as to what the market will do this coming year. We are hearing lots of varied opinions from all manner of "experts"! The key thing is to know how to react and create a positive, memorable customer experience when people view your home regardless of whether the market is hot, cold, or flat. With 26 years of experience we have the tools to help you achieve your go...als and help you move forward regardless of the market conditions.

FVREB -

The Fraser Valley real estate market remained active through October, with sales breaking slightly higher than the 10-year historical average for the month.

The Fraser Valley Real Estate Board processed 1,463 sales of all property types on its Multiple Listing Service® (MLS®) in October, a decrease of 17.4 per cent compared to the 1,772 sales in October of last year, and a 12.1 per cent increase compared to the 1,305 sales in September 2016.

Of the 1,463 sales processed last month, 389 were townhouses and 400 were apartments, representing a significant portion of October’s market activity. Townhome transactions increased 10.2 per cent when compared to last year, and apartment sales reached even higher levels seeing a 56.3 per cent gain.

“Sales activity was healthy in October, especially in the townhome and apartment categories. With prices beginning to level-off, it appears that buyers are becoming more motivated to explore the Valley’s available inventory,” said Charles Wiebe, Board President.

Last month the total active inventory for the Fraser Valley was 6,035 listings, the lowest level seen for an October in ten years. Active inventory decreased by 6 per cent month-over-month, and decreased 7.7 per cent when compared to October 2015.

The Board received 2,197 new listings in October, an 18.9 per cent decrease from September 2016, and a 1.9 per cent increase compared to October 2015’s 2,155 new listings.

“It seems that there’s no bad time to sell a home in 2016 as demand for Fraser Valley real estate remains strong. Talk to your REALTOR® if you’re looking to make a move before the end of the year, and they can get you where you need to be.”

For the Fraser Valley region, the average number of days to sell a single family detached home in October 2016 was 31 days, compared to 36 days in October 2015.

The MLS® HPI benchmark price of a Fraser Valley single family detached home in October was $872,100, an increase of 34.3 per cent compared to October 2015 when it was $649,200.

The benchmark price of Fraser Valley townhomes in October was $421,300, an increase of 34.3 per cent compared to October 2015’s benchmark price of $313,700. The benchmark price for an apartment in the Fraser Valley increased 25.2 per cent year-over-year, from $203,100 in October 2015 to $254,300 in October of this year.

To find out what your home is worth in todays market contact me or get your market valuation in 24 hrs at www.brianwhite.ca

Fearing a major crash in the near future, home owners in Canada’s hottest real estate markets, Toronto and Vancouver are starting to sell off their assets in droves.
 
Drastic changes such as the B.C. government’s 15 per cent tax on foreign buyers have led to significant declines in home sales numbers, sparking worries that a major price correction is imminent.
 
“Some homeowners are fearful,” Vancouver-area agent James Garbutt told Global News.
 
“When you compare it to the peak of the madness in April, we’re off — for certain products — by about 20 per cent.”
 
Among the segments suffering the most from the recent changes are luxury and investment properties, Garbutt said.
 
“The homes that were inflated the most, got the most attention and climbed the most at the peak of spring, are also the ones starting to get hit the most." Areas such as North & West Vancouver, Vancouver's west side as well as the White Rock area in the Fraser Valley are getting hit first.
 
In addition, recent revisions to federal mortgage rules—intended to moderate the country’s most overheated markets—might instead lead to increases in mortgage rates, prompting owners to exit ownership while the getting is still good.
 
“One client purchased a home for $440,000 one year ago, sold it before the tax was implimented for just over $600,000 without putting barely any money into it, They did pretty well.” But that's just market pressure.
 
However, in a report released mid-October, Moody’s Analytics assured that while the Canadian real estate sector will experience a more relaxed pace in home price growth over the next half decade, rumors of a massive crash are greatly exaggerated.
 
“There has been a lot of speculation about Canada’s housing markets overheating during the past two years,” Moody’s economist Andres Carbacho-Burgos said in the report.
 
“The house price outlook calls for a deceleration of house price growth, not for a serious decline, though there are exceptions for smaller regions,” the analyst added.

What's your property worth now? Get a current valuation in 24 hours at brianwhite.ca

Canadian Building Permits - May 5, 2016

The total value of Canadian building permits declined 7 per cent on a monthly basis in March following a 15 per cent increase in February. The drop in permits was the result of lower permit activity in the commercial sector in Alberta, Ontario and BC. 

In BC, total permit activity declined 5 per cent from February to March but remained above $1 billion for the fifth consecutive month. On a year-over-year basis, the dollar value of building permits in the province was 10 per cent lower than March 2015. Non-residential permits accounted for all of the decline, falling 33 per cent on a monthly basis and 37 per cent year-over-year. Residential permits rose 8 per cent on a monthly basis and were up 2.6 per cent year-over-year. 

Construction intentions were mixed in BC's four census metropolitan areas (CMA). Permits in the Abbotsford-Mission CMA were up 31.5 cent on a monthly basis and 11 per cent higher year-over-year.  In the Kelowna CMA, permits fell 16 per cent from February and were 34 per cent lower year-over-year. In the Vancouver CMA, permits increased 6 per cent on a monthly basis and were down 12 per cent year-over-year.  In the Victoria CMA, permit activity was down 29 per cent on a monthly basis but was up 41 per cent compared to March 2015.

If you ave any questions or need more information, email me or let's meet for a coffee.

Brian 

April 28, 2016

US real GDP growth registered a disappointing 0.5 per cent in the first quarter of 2016, the slowest quarterly growth in two years. Growth was pulled lower by a softening of consumer spending as well as the high US dollar's impact on exports. It should be noted that today's release is a preliminary estimate and is subject to revisions which can be substantial. 

As noted yesterday afternoon by the US Federal Reserve's Open Market Committee in its decision to leave its target interest rate unchanged, the US faces some headwinds from a struggling global economy but consumer demand is expected to accelerate, buoyed by strong gains in the labour market.  We expect that the US economy will get back on track in subsequent quarters, ultimately expanding 2.2 per cent in 2016. Low growth and modest inflationary pressure should keep the Federal Reserve sidelined most of this year, though one more rate-hike before the end of the year remains likely.  

What are the Down Payment Requirements?

The amount of your down payment will determine whether you'll have a conventional mortgage or a high-ratio mortgage, which must be insured.

What's the difference?

• Conventional mortgage: means your down payment is 20% of the purchase price or more.
• High-ratio mortgage: means your down payment is less than 20% of the purchase price.

Effective February 15, 2016, the minimum down payment for new mortgages have been modified. The new breakdown is as follows:

• For homes with a purchase price less than or equal to $500,000 the minimum down payment is 5%
• For homes with a purchase price greater than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
• For homes with a purchase price of $1 million or more, the minimum down payment is 20%

High ratio mortgages must be insured by a mortgage insurer such as the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial Canada or Canada Guaranty. You will be required to pay the premium for this insurance.

The insurance premium:

• Will depend on the amount you are borrowing and the percentage of your down payment. Usually, mortgage default insurance premiums range between 0.5% and 2.75% of the mortgage amount
• Can be paid at the time of purchase, or added to the principal amount of your mortgage.The insurance premium may be subject to provincial sales tax, which cannot be added to mortgage amount.