Bob Sethi, B.Comm | 604.273.2828

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Strong finish for mediocre year in Fraser Valley real estate   


SURREY, BC – After a sluggish first half of the year, property sales in the Fraser Valley started picking up speed in the summer and finished strong in December, but not enough to surpass last year’s sales totals.         


The Board’s Multiple Listing Service® (MLS®) processed 15,487 sales in 2019, a 0.6 per cent decrease compared to 2018’s 15,586 sales and the lowest total sales volume for the Fraser Valley since 2013. The total dollar volume of MLS® transactions for the year was $11.2 billion, dropping from $11.8 billion sold during the year prior.  


In 2019, total sales of the three main residential property types – detached, townhome and apartment – was 13,773.  Of that total, 5,770 were detached, 3,888 were townhouses and 4,115 were apartments. Year‐over‐year, sales of detached and townhomes increased by 0.6 per cent compared to 2018, while apartment sales dropped by 4.2 per cent.     


“Comparatively, 2019 was slower than normal for our region,” said Darin Germyn, President of the Board.  “Earlier in the year, we were still feeling the impact of the stress test introduced in 2018, but with steady job growth in our region and a stable economy, we’ve seen sales in the last few months return to above‐average levels.”   


In December the Board processed a total of 1,247 sales, the third best December since 2010. Active inventory finished at 4,686 units in December, 20.3 per cent lower than the 10‐year average for the month, with a total of 948 new listings entering the market throughout the month.


Germyn added, “Some sellers have been holding back on listing, waiting until the market improves, with the result that supply in many areas currently is quite tight; so if you’re looking to enter the market in 2020, now is a good time. Without a healthy supply of inventory in the coming months, we could see upward pressure on prices.”


A total of 30,568 new listings were received by the Board’s MLS® system in 2019. This year was the second lowest for new inventory for the Board in the last decade.


MLS® HPI Benchmark Price Activity:


  • Single Family Detached: At $953,700, the Benchmark price for a single‐family detached home in the Fraser Valley increased 0.2 per cent compared to November 2019 and decreased 1.2 per cent compared to December 2018.
  • Townhomes: At $514,900, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley remained on par with November 2019 and decreased 3.2 per cent compared to December 2018.
  • Apartments: At $405,500, the Benchmark price for apartments/condos in the Fraser Valley increased 0.2 per cent compared to November 2019 and decreased 3.1 per cent compared to December 2018.


The Fraser Valley Real Estate Board is an association of 3,691 real estate professionals who live and work in the BC communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission. The FVREB will mark its 100‐year anniversary in 2021.

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Home sales decline below long-term averages in 2019 despite increased demand to end the year



VANCOUVER, BC – January 3, 2020 – The Metro Vancouver* housing market experienced below average sales activity and moderate price declines in 2019.


The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment homes reached 25,351 in 2019, a three per cent increase from the 24,619 sales recorded in 2018, and a 29.6 per cent decrease over the 35,993 residential sales in 2017.


Last year’s sales total was 20.3 per cent below the region’s 10-year sales average.


“We didn’t see typical seasonal patterns in 2019. Home buyer demand was quieter in the normally busy spring season and it picked up in the second half of the year,” Ashley Smith, REBGV president said. “In terms of home values, prices dipped between two and four per cent across the region last year depending on property type.”


Home listings on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 51,918 in 2019. This is a 3.2 per cent decrease compared to the 53,614 homes listed in 2018 and a five per cent decrease compared to the 54,655 homes listed in 2017.


Last year’s listings total was 7.6 per cent below the 10-year average.


“Home buyer confidence was a factor throughout the year. In the first quarter, many prospective buyers were in a holding pattern, waiting to see how prices would react to the mortgage stress test, new taxes, and other policy changes,” Smith said. “Confidence started to return in the summer, and we saw above average sales in the final quarter of 2019.”


The MLS® HPI composite benchmark price for all residential properties in Metro Vancouver ends the year at $1,001,000. This is a 3.1 per cent decrease compared to December 2018.


The benchmark price of apartments decreased 2.7 per cent in the region last year. Townhomes decreased 2.4 per cent and detached homes decreased four per cent.


December summary


REBGV reports that residential home sales in the region totalled 2,016 in December 2019, an 88.1 per cent increase from the 1,072 sales recorded in December 2018, and a 19.3 per cent decrease from the 2,498 homes sold in November 2019.


Last month’s sales were 9.5 per cent above the 10-year December sales average. There were 1,588 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in December 2019. This represents a 12.9 per cent increase compared to the 1,407 homes listed in December 2018 and a 46.8 per cent decrease compared to November 2019 when 2,987 homes were listed.


The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,603, a 16.3 per cent decrease compared to December 2018 (10,275) and a 20.1 per cent decrease compared to November 2019 (10,770).


For all property types, the sales-to-active listings ratio for December 2019 is 23.4 per cent. By property type, the ratio is 15.2 per cent for detached homes, 25.7 per cent for townhomes, and 32.5 per cent for apartments.


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.


Sales of detached homes in December 2019 reached 599, a 72.1 per cent increase from the 348 detached sales recorded in December 2018. The benchmark price for detached properties is $1,423,500. This represents a four per cent decrease from December 2018, and a 0.6 per cent increase compared to November 2019.


Sales of apartment homes reached 1,053 in December 2019, a 96.8 per cent increase compared to the 535 sales in December 2018. The benchmark price of an apartment property is $656,700. This represents a 2.7 per cent decrease from December 2018, and a 0.8 per cent increase compared to November 2019.


Attached home sales in December 2019 totalled 364, a 92.6 per cent increase compared to the 189 sales in December 2018. The benchmark price of an attached home is $778,400. This represents a 2.4 per cent decrease from December 2018, and a 0.7 per cent increase compared to November 2019. -30-


*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler. The Real Estate Board of Greater Vancouver is an association representing more than 14,000 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

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October 2, 2019


Increased demand helps housing market reach balanced territory


Home buyer demand has returned to more historically typical levels in Metro Vancouver over the last three months.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,333 in September 2019, a 46.3 per cent increase from the 1,595 sales recorded in September 2018, and a 4.6 per cent increase from the 2,231 homes sold in August 2019.

 

Last month’s sales were 1.7 per cent below the 10-year September sales average.

 

“We’re seeing more balanced housing market conditions over the last three months compared to what we saw at this time last year,” Ashley Smith, REBGV president said. “Home buyers are more willing to make offers today, particularly in the townhome and apartment markets.”

 

There were 4,866 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2019. This represents a 7.8 per cent decrease compared to the 5,279 homes listed in September 2018 and a 29.9 per cent increase compared to August 2019 when 3,747 homes were listed.

 

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 13,439, a 2.7 per cent increase compared to September 2018 (13,084) and a 0.3 per cent increase compared to August 2019 (13,396).

 

For all property types, the sales-to-active listings ratio for September 2019 is 17.4 per cent. By property type, the ratio is 12.7 per cent for detached homes, 18.9 per cent for townhomes, and 21.9 per cent for apartments.

 

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

 

“This is a more comfortable market for people on both sides of a real estate transaction,” said Smith. “Home sale and listing activity were both at typical levels for our region in September.”

 

The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $990,600. This represents a 7.3 per cent decrease over September 2018 and a 0.3 per cent decrease compared to August 2019.

 

Sales of detached homes in September 2019 reached 745, a 46.7 per cent increase from the 508 detached sales recorded in September 2018. The benchmark price for a detached home is $1,406,200. This represents an 8.6 per cent decrease from September 2018 and is virtually unchanged compared to August 2019.

 

Sales of apartment homes reached 1,166 in September 2019, a 43.6 per cent increase compared to the 812 sales in September 2018. The benchmark price of an apartment property is $651,500. This represents a 6.5 per cent decrease from September 2018 and a 0.4 per cent decrease compared to August 2019.

 

Attached home sales in September 2019 totalled 422, a 53.5 per cent increase compared to the 275 sales in September 2018. The benchmark price of an attached home is $767,500. This represents a 7.2 per cent decrease from September 2018 and a 0.6 per cent decrease compared to August 2019.



Source: Real Estate Board of Greater Vancouver, 2019.10.02

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B.C. government opens exemption process for speculation tax


NDP's misguided Speculation Tax hitting BC residents first

Estimated two-thirds of those who will pay the Speculation Tax will not be out-of-province speculators, but British Columbians.


The NDP's "Speculation Tax" being charged to all homeowners in BC's largest urban centres - whether they're speculators or not.


It's up to those affected homeowners to apply for exemptions by March 31, 2019 or wait up to 6 years (yes, years) for a rebate if they fail to opt-out.


Read more from The Province here.



Note - Declaration forms are being mailed by the NDP - if you haven't received your's by mid-February I recommend you visit the Speculation and Vacancy Tax page to contact the Provincial Government.




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Bank of Canada Raising Rates Again

2018 01 17

 

The Bank of Canada, led by governor Stephen Poloz, has hiked its benchmark lending rate to 1.25 per cent. (Bloomberg)

The Bank of Canada, led by governor Stephen Poloz, has hiked its benchmark lending rate to 1.25 per cent.(Bloomberg)


The Bank of Canada is raising its' key interest rate as economic pieces fall into place including strong job gains, consumer spending, housing investment and the energy sector.

 

Forward growth is predicted to come from business investment and exports as opposed to consumers and home construction.

  

What does this mean for you?

 

Buying or selling it's prudent to arrange a mortgage pre-approval from an expert - email me today for a referral to protect your interests.

 

Read more here.

 

 


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Home buyer demand continues to differ based on housing type

 

Apartment and townhome activity is outpacing the detached home market across Metro Vancouver. This activity helped push total residential sales above the historical average in September.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,821 in September 2017, a 25.2 per cent increase from the 2,253 sales recorded in September 2016, and a 7.3 per cent decrease compared to August 2017 when 3,043 homes sold.

 

Last month’s sales were 13.1 per cent above the 10-year September sales average.

 

“Our detached homes market is balanced today, while apartment and townhome sales remain in sellers’ market territory,” Jill Oudil, REBGV president said. “If you’re looking to enter the market, as either a buyer or seller, it’s important to understand these trends and use this information to set realistic expectations.”

 

There were 5,375 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2017. This represents a 12 per cent increase compared to the 4,799 homes listed in September 2016 and a 26.6 per cent increase compared to August 2017 when 4,245 homes were listed.

 

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,466, a 1.2 per cent increase compared to September 2016 (9,354) and a 7.5 per cent increase compared to August 2017 (8,807).

 

“Detached homes made up 30 per cent of all sales in September and represented 62 per cent of all the homes listed for sale on the MLS®,” said Oudil. “This dynamic has slowed the pace of upward pressure that we’ve seen on detached home prices in our market over the last few years.”

 

For all property types, the sales-to-active listings ratio for September 2017 is 29.8 per cent. By property type, the ratio is 14.6 per cent for detached homes, 42.3 per cent for townhomes, and 60.4 per cent for apartments.

 

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,037,300. This represents a 10.9 per cent increase over September 2016 and a 0.7 per cent increase compared to August 2017.

 

Sales of detached properties in September 2017 reached 852, a 27.9 per cent increase from the sales recorded in September 2016 (666), a decrease of 33 per cent from September 2015 (1,272), and a decrease of 32.9 per cent from September 2014 (1,270). The benchmark price for detached properties is $1,617,300. This represents a 2.9 per cent increase from September 2016 and a 0.1 per cent increase compared to August 2017.

 

Sales of apartment properties reached 1,451 in September 2017, a 19.1 per cent increase compared from the sales recorded in September 2016 (1,218), a 5.1 per cent decrease from September 2015 (1,529), and a 22.1 per cent increase from September 2014 (1,188). The benchmark price of an apartment property is $635,800. This represents a 21.7 per cent increase from September 2016 and a 1.4 per cent increase compared to August 2017.

 

Attached property sales in September 2017 totalled 518, a 40.4 per cent increase compared to the sales recorded in September 2016 (369), a 4.8 per cent decrease from September 2015 (544), and an 11.6 per cent increase from September 2014 (464). The benchmark price of an attached home is $786,600. This represents a 14.5 per cent increase from September 2016 and a 1.1 per cent increase compared to August 2017.

 

Real Estate Board of Greater Vancouver. October 3rd, 2017.

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BC government to offer up to $37,500 down payment loans for first-time home buyers


Premier Christy Clark unveiled a new loan program today to help first-time home buyers come up with their down payment.


The BC Home Owner Mortgage and Equity (HOME) Partnership program will offer qualifying home buyers loans of up to $37,500, interest and payment free, for five years.


The province will begin accepting applications on January 16, 2017.


To qualify, buyers must:

  • be buying their first home;
  • obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price;  
  • have a combined gross household income not exceeding $150,000;
  • have saved a down payment amount at least equal to the loan amount;
  • be a Canadian citizen or permanent resident for at least five years; and
  • have lived in BC for at least the full year preceding their application.

The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.


Key facts:

  • The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price. 
  • The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees).
  • After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.
  • Loans through the program are due after 25 years.

“This program will boost sales to first-time home buyers. Without question, they’ll take advantage of it wherever they can,” said Helmut Pastrick, Central 1 Credit Union chief economist.


The province estimates this initiative will help at least 42,000 buyers or households province-wide over the next three years. About half of these buyers will be in the Lower Mainland, according to Pastrick.


copyright© real estate board of greater vancouver. all rights reserved.


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Will more taxes solve housing affordability challenges? History says no and so do we.

The rising cost of homes in our region is well-documented. Metro Vancouver home prices have increased nearly 80 per cent since 2005. Detached home prices have increased over 100 per cent.

We worry about how our children can afford a home and how the most vulnerable among us can find basic shelter. These concerns have led to public debate about possible solutions.

One suggestion is for government to introduce new taxes. Some believe government should tax non-Canadian investors who buy properties. Mayor Robertson believes there should be a "luxury housing" tax on the sale of the most expensive homes in Vancouver.

We believe more taxes won’t help. Taxes bring unintended consequences. There’s little to no evidence that a luxury or foreign buyer tax would make homes more affordable.

History tells us that taxes like this fail to have the desired impact and succeed in permanently adding to government coffers.

In 1987, the provincial government implemented what was advertised as a “wealth tax”. It was supposed to apply to the sale of the most expensive five per cent of homes sold in BC. It's been 28 years since that tax was introduced and the thresholds have never been adjusted for inflation.
           
Today, that tax is known as the Property Transfer Tax (PTT). It’s applied to 95 per cent of all residential property sales in the province. This tax makes housing less affordable.

The home is where many people’s financial net worth resides. It's one of the last major assets that residents can sell and not pay a tax on the revenue. A little mentioned fact is that we already have tax disincentives for foreign owners. If a foreign home owner wants to sell a property in Canada, they are unable to receive a capital gains exemption.

The picture of affordability and home ownership is changing in Metro Vancouver. Our region's affordability challenges are complicated and, unfortunately, there isn't a single action that can solve them. Economists will tell you that offshore investment is a factor in today’s market. To what extent, no one has the data to know.

What we do know is that local conditions have a much more significant impact. We live in one of the most beautiful, progressive and prosperous areas of the world. There are more people who want to live here than there are homes available. This causes prices to rise.

The natural solution would be to create more supply, but we're constrained by mountains to the north, an ocean to the west, and a border to the south.

Despite the headlines, the majority of home sales in Metro Vancouver are not $1-million and beyond. Based on our Multiple Listing Service (MLS) statistics, nearly 70 per cent of all sales in the region last year were below $800,000.

The price of condominiums today ranges between $200,000 and $600,000 depending on size and location. Townhomes range between $300,000 and $800,000 in the region.

Detached homes in the City of Vancouver are at the high-end of our market. Recent activity has pushed homes on the Vancouver Westside above $2.5 million.
           
It’s a different story in neighbouring communities. The benchmark price of a detached home in Maple Ridge today is $499,100; in Ladner the benchmark price is $713,200; in Coquitlam the benchmark price is $845,400.

Affordability challenges exist. But there are also more options and aspects to the story than is typically discussed in the media. Certainly more than the mayor is putting forward.

Sincerely, 

J. Darcy McLeod
President of the Real Estate Board of Greater Vancouver

 

copyright© real estate board of greater vancouver. all rights reserved.

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RE/MAX Quest for Excellence

 

 

 

What is RE/MAX Quest for Excellence?

The Quest for Excellence Program is a bursary program for grade 12 students in Western Canada.  It was established by RE/MAX of Western Canada to recognize the success and ongoing pursuits of Western Canadian students in regards to leadership and community contribution initiatives.

 

What is awarded?

RE/MAX of Western Canada will award 16 bursaries of $1,000 each to qualifying Grade 12 students.  In addition, the 16 bursary winners will be entered into a draw and one lucky recipient will receive a RE/MAX Hot Air Balloon ride for two. Bursary winners will be notified and all winners will be posted in April 2015.

 

Who Can Participate?

The Quest for Excellence is open to all Grade 12 students attending high school from September, 2014 - March, 2015. Grade 12 students may not have participated in graduation commencement ceremonies in the past. Applicants must be a resident of one of the following provinces/territories.

    British Columbia
    Alberta
    Saskatchewan
    Manitoba
    Yukon Territory

 

What is Required?

Students are to convey the contributions they have made to their communities in a short online essay, maximum 1,250 words. Key qualities students should demonstrate are leadership, motivation and communication skills.  Other attributes may include volunteering, participation in charitable events or fundraising, and contributions that enrich the lives of others and their communities.

Note: All entries become the property of RE/MAX of Western Canada and photos and names of winners may be used in print publications and media.

 

Submission Instructions

Complete the following on-line application form.
Deadline for entry is March 9th, 2015.
A maximum of one on-line essay per student.

 

CLICK HERE TO ENTER!

 

To print a Quest for Excellence information flyer, click here 

 

If you have any questions regarding this program, please email Kelsey Woodliffe, kwoodliffe@remax.netat RE/MAX of Western Canada.

 

Note: All entries become the property of RE/MAX of Western Canada and photos and names of winners may be used in print publications and media.






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Metro Vancouver home sales above average in October

Metro Vancouver experiences above average October home sales. Come see your next home at Jade in Richmond's amenity rich McLennan North neighbourhood.


November 4, 2014.


Home sales in the Metro Vancouver* housing market continue to outpace long-term averages for this time of year.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,057 on the Multiple Listing Service® (MLS®) in October 2014. This represents a 14.9 per cent increase compared to the 2,661 sales in October 2013, and a 4.6 per cent increase over the 2,922 sales in September 2014.
 
Last month’s sales were 16.6 per cent above the 10-year sales average for October.

“We’ve seen strong and consistent demand from home buyers in Metro Vancouver throughout this year. This has led to steady increases in home prices of between four and eight per cent depending on the property,” said REBGV president Ray Harris.

New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,487 in October. This represents a four per cent increase compared to the 4,315 new listings in October 2013 and a 14.7 per cent decline from the 5,259 new listings in September.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,851, a 9.2 per cent decline compared to October 2013 and a 6.6 per cent decrease compared to September 2014.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $637,000. This represents a six per cent increase compared to October 2013.

“Detached homes continue to increase in price more than condominium and townhome properties. This is largely a function of supply and demand as the supply of condominium and townhome properties are more abundant than detached homes in our region,” Harris said. 

Sales of detached properties in October 2014 reached 1,271, an increase of 19.1 per cent from the 1,067 detached sales recorded in October 2013, and a 60.9 per cent increase from the 790 units sold in October 2012. The benchmark price for detached properties increased 7.9 per cent from October 2013 to $995,100.

Sales of apartment properties reached 1,268 in October 2014, an increase of 15.5 per cent compared to the 1,098 sales in October 2013, and a 57.9 per cent increase compared to the 803 sales in October 2012. The benchmark price of an apartment property increased four per cent from October 2013 to $380,200.

Attached property sales in October 2014 totalled 518, a 4.4 per cent increase compared to the 496 sales in October 2013, and an 53.3 per cent increase over the 338 attached properties sold in October 2012. The benchmark price of an attached unit increased 4.7 per cent between October 2013 and 2014 to $479,500.

* Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.


As printed in 'Newsflash' by Real Estate Board of Greater Vancouver, November 4th, 2014.


Not intended to solicit properties currently listed for sale. E. & O.E.

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What does no change to borrowing rates mean for you? Whether you're buying or selling, locking in your rate is the first and best step you can make towards keeping your payments low. Ready to get started? Call or email me today for a list of the best mortgage professionals in the area.

 

Read more below.


Bank of Canada Interest Rate Announcement - September 3, 2014

The Bank of Canada once again opted to leave its target for the overnight rate unchanged at 1 per cent. In the statement accompanying today's announcement, the Bank noted that though inflation is close to its 2 per cent target, the recent pick-up in inflation was largely due to temporary factors as the Bank anticipated. In spite of stronger global and domestic economic growth last quarter, the Bank still expects excess capacity in the economy to be absorbed over the next 2 years and judges risks to its outlook to be balanced between higher inflation and still elevated household debt. Therefore, the Bank remains neutral with respect to timing and direction of its next change to the policy rate.


As the Bank noted, economic growth exceeded expectations in the second quarter. However, the economy looks far more pedestrian if averaged over the entire first half of 2014.  Employment growth has been uneven and the Canadian unemployment rate remains stubbornly high. Therefore, the Bank is unlikely to be moved from its current stance after just one strong quarter of economic growth. We expect that the Bank will continue to take a cautious approach to monetary policy until it sees concrete signs that the economy is growing above trend. That means at least one more quarter of solid GDP growth paired with more steady employment gains, as well as similarly strong data in the United States. While the Bank left the door open to lower interest rates given its "neutral" stance, we still anticipate that the next move for interest rates will be upward, though not until 2015. 

 

Article credit: Cameron Muir, Chief Economist and Brendon Ogmundson, Economist, BCREA.

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Rent or Buy? Here's a Calculator to Help You Decide.

Thu, August 21, 2014


Rent or Buy?


Wondering if you should buy a home or keep renting? You’re not alone.

Millions of people are faced with this decision every day, and your move is dependent on a variety of factors: your income, ability to manage maintenance costs/upkeep, how much you’ve saved for a down payment, job stability, the housing market, rental vacancies, monthly payments, interest rates, proximity to work and school – the list goes on.

If you’re stuck trying to choose which option is best for you and your family, the New York Times has a cool tool worth checking out: a rent vs. buy calculator. Input items such as home price, income, the number of years you plan to stay in a place, taxes, fees, etc.. Once you’re done, the calculator computes the equivalent monthly rent. Give it a try!


For a complete picture of what the rent vs. buy prospects are like in your area, give me a call or email

 

Source: The RE/MAX Housing Blog

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Thinking of buying a home soon? Read this! 



New homes in Richmond, BC


5 Financial Missteps to Avoid When Buying a Home


You might have pulled off a great feat, like saving up for that down payment, but there are several financial missteps that can complicate your prospects of buying a home. Avoid these five blunders by managing your spending and bills long before you look for a new home.

1. Letting Your Credit Score Drop


Your credit score directly impacts your ability to get a home loan, the type of loan you qualify for and the interest rate. If you have borderline credit – a score in the low- to mid-600s – further credit mishaps can prevent approval. If you have credit challenges such as bankruptcy or late payments, start your house search several months earlier. Re-establish your credit by paying down credit cards to 30 percent or less of the limit and correcting errors on your report. And avoid checking your credit score too much; constantly checking it counts against you.

2. Languishing in Debt


Consumer debt accounts for 35 percent of your credit score. A late payment's effect depends on the strength of your score, but the account type and the time since the last late payment also matters. If any of your accounts are in collection, it's highly advised you pay them off before seeking loan approval.

3. Shopping Sprees


Stay far away from credit-driven shopping sprees. Even paying cash for big-ticket purchases can raise red flags with a lender. They'll check your bank statements for unusually large deposits and withdrawals and may require an explanation for them.

4. Changing Jobs


A job change may have an adverse effect on your loan approval because lenders calculate your ability to pay a home loan by averaging your past two years of income. If you can avoid interrupting stable employment during the home-buying process, that's probably best.

5. Maxing Out Your Purchasing Power


Even though your lender qualifies you for a certain amount, only you know whether you can comfortably afford the payment. Try to stick with the price range that yields your ideal monthly payment. Looking for homes at the top of your budget limits your ability to increase your offer in a multiple-offer situation.

When you've nurtured your credit and are ready to start looking for a home, contact a lender – and, of course, a RE/MAX agent who can help you find the right home at the right price for you.​


*Source: RE/MAX Mainstreet - The Real Estate Blog, Tue, July 29, 2014.

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British Columbia - CMHC points to signs of improvement

 

The Canada Mortgage and Housing Corporation (CMHC) is forecasting growth for British Columbia's housing market in 2014. CMHC's Housing Market Outlook - Canada Edition points to a growing BC economy, expected to expand by 2.5% and putting us ahead of the national average. Additionally, our labour market is forecast to increase 1.0% with a shift to higher levels of full-time employment. Both these indicators point to an increase in homeownership demand and the number of new housing starts:

  1. Single-family starts of new homes are projected to rise to 9,200 units this year.
  2. Multiple-family starts of townhomes, condos, etc are projected to remain relatively stable, rising to 18,700 units this year.

 

So what does all this mean for you?


If you're looking to buy or sell an existing home, you'll have more selection with stable prices. And, if you're looking to buy a new home, the number of homes that will come to market will keep prices in check allowing you to choose the new home you want without fear of prices jumping up or dropping unexpectantly. 

 

Find your new home before other homebuyers even know it's for sale! Click here to get started today.

 

 

*Information based on CMHC Housing Market Outlook, Canada Edition, full report available at www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2013_Q04.pdf (BC overview found on page 7).

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February 28, 2014


Effective May 1st, 2014, CMHC mortgage loan insurance premiums will be increasing. This change will affect:

  • Owner-occupied homeowner;
  • Self-employed homeowner; and
  • 1 to 4 unit rental properties.

How much will this affect you? On average, the increased premiums will equate to an approximate $5 increase in monthly mortgage payments - so not very much at all. The premium increases are also not expected to have any material impact on the Canadian housing market.


If you'd prefer to save the extra $5 per month, get your mortgage application in before May 1st, 2014 with one of my Preferred Mortgage Specialists. Call or email today.

 

 

 

*Special thanks to Randy Chin of RBC for notifying me of this announcment.

*This post made with information referenced from today's CMHC release.

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Government reduces tax burden on first-time buyers

 



First-time home buyers received some welcome news in today’s provincial budget.

 

The Liberal Government announced, effective February 19th, 2014, qualifying first-time buyers can buy a home worth up to $475,000 under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program. This is a significant increase where the previous threshold was $425,000.

 

In addition, homes priced $475,000 to $500,000 qualify for the continuiing partial exemption falling more in-line with B.C.'s housing prices, most notably in Metro Vancouver.

 

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when buying their home.

 

These new exemptions are estimated to cost $8 million in lost tax revenue each year.

 

Together with BC Real Estate Association, the BC Real Estate Board has actively lobbied to make home ownership more affordable for first-time homebuyers. The increased limits in the threshold indicate these lobbying efforts on behalf of the public have paid off. Note that in 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. And, in 2005, the government increased the threshold to $325,000 from $275,000.

 

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.


Find out how the new exemption limits affect you by contacting me today at bob@bobsethi.com

 

For more on the Budget, http://www.bcbudget.gov.bc.ca/2014/default.htm

 

Based on reporting from the real estate board of greater vancouver.

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How to Have a Clean (Enough) Home Over the Kids' Summer Break

 

It's the kids' summer break and keeping your home clean just got alot harder. This is the time to spend outdoors with your kids - not indoors cleaning.


Click here for some easy suggestions to keep your home tidy.

 

 

Have tips to share? Post them here.

 

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HARPER'S CONSERVATIVE GOVERNMENT
TIGHTENING MORTGAGE RULES - AGAIN!
 
The Conservative Government is once again tightening rules for government-backed insured mortgages.  Changes which are leaving many in the industry puzzled given the positive market data concerning Canada's housing market and economy.  The effects of these new mortgage insurance rules will be watched closely by the housing industry and Canadian homebuyers.
 
If you've already bought, or are thinking of buying, you still have time to qualify on the existing rules.  Mortgage insurance applications received before June 21st, 2012 for binding purchase and sale agreements will be under the 'old' rules.  Applications received between June 21st, 2012 but before July 9th, 2012 that do not conform to the new rules must be funded by December 31st, 2012.  For full clarification I recommend you talk to a mortgage lending representative.  If you don't have one please let me know and I will recommend one for you.
 
Interested in reading the Government's official announcements?  See the following links:

Official press release made this morning @ http://www.fin.gc.ca/n12/12-070-eng.asp; and

FAQ’s regarding the specifics of the rule changes @ http://www.fin.gc.ca/n12/data/12-070_2-eng.asp.
 
I'll be posting more information as it becomes available.  Should you or anyone you know have any questions please feel free to contact me directly.
 
- Bob
 
 
 
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Bubble? What Bubble?

Alberta homebuyers eyeing B.C. again

British Columbians love talking about their real estate.
 
And nowhere is that topic hotter than in the Lower Mainland and Vancouver, where average housing prices upward of $700,000 are not uncommon.

Yet in the wake of recent news reports about a housing market swoon on the West Coast due to price plunge headlines, the talk of a housing bubble has popped up yet again.
 
The average residential price in B.C. dropped 10.9 per cent in April compared to a year ago to $532,855, but B.C. Real Estate Association Cameron Muir says that decline was offset by a 14 per cent increase in the rest of the province.

He says Kamloops, the Okanagan and the North all posted double-digit increases in home sales compared to levels one year ago.
 
In Kamloops, the Canadian Home Builders’ Association of the Central Interior executive officer Patsy Bourassa says she has noticed a definite pick-up in the market compared to the same time a year ago.
“With this spring, things have started moving again,” she says.
 
Bourassa credits a few things for spurring the current increase, which she describes as slow but steady, such as the First Time Homebuyers’ tax credit and HST transition measures announced by the provincial government earlier this year, as well as a generally robust resource economy – she notes there are five mines in the Central Interior – and homebuyers from Alberta.

UBC Sauder School of Business real estate economist Tsur Somerville also notes the Interior and the North are doing better than the Lower Mainland lately.
 
“A lot of that is being driven by the second home purchase market in Alberta,” he says.
 
Those areas are popular for Albertans who purchase vacation properties and with that province’s economy recovering, more consumers are thinking about buying in B.C., Somerville said.
 
He points out the B.C. market now is very different form one or two years ago, as high-end market sales and the foreign source of wealth market have both slowed down.
 

Somerville doesn’t think British Columbians needs to worry about a housing market bubble.

“I never thought there was a bubble to begin with,” he says.
 
While there’s a lot of inventory in the new-home market, there are locations with a lot of starts happening, he notes.
 
Despite a lot of inventory – depending on where you live in the province – Somerville doesn’t go so far as to say B.C. is experiencing a buyer’s market.
 
“When average prices are in excess of $700,000, I don’t think you can really say it’s a buyer’s market,” he says.
 
He advises potential homebuyers not to base big decisions on what the market may or may not be doing.
 
“If you’re buying real estate for yourself to live in, I think you need to do that based on your life cycle and not try to time it with the market.”
 
When you get listings to sales ratios rising, consumers don’t have to approach the market with as much anxiety and can take their time to choose a product they really love, he says.

In the Central Interior, “Everybody’s cautiously optimistic” the housing market will continue to move, Bourassa said.
 
 
Excerpted from BCHomesmag.com.  Article written by Tricia Leslie. 
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THE $10,000 B.C. FIRST-TIME NEW HOME BUYERS’ BONUS
 

 

Subject to approval by the legislature, the B.C. government intends to implement a temporary BC First-Time New Home Buyers’ Bonus. Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000.

 

 
Contact me to see how this program can benefit you - bob@bobsethi.com
 
 
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Bob Sethi, B.Comm
Office:604.273.2828
Fax:604.273.0685
RE/MAX Westcoast
#110-6086 Russ Baker Way
Richmond, BC
V7B 1B4 Canada

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