For immediate release: BCREA 2013 Second Quarter Housing Forecast
Transition Year Expected for BC Housing Market

Vancouver, BC – May 9, 2013. The British Columbia Real Estate Association (BCREA) released its 2013 Second Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales 
are forecast to edge up 1.9 per cent to 68,900 units this year, before increasing a further 6.5 per cent to 73,400 units in 2014. -year average is 86,800 unit sales. A record 106,300 MLS® residential sales were recorded in 2005.

“Stricter mortgage credit regulation combined with slower economic growth has kept BC home sales at a cyclical low over the past three quarters,” said Cameron Muir, BCREA Chief Economist. “However, a faster growing economy is expected during the second half of the year and through 2014 which will support a growth trend in provincial housing demand.”

“The BC average home price forecast is revised upward for 2013, from a decline of 1 per cent to remaining unchanged, as result of stronger than expected market conditions in Vancouver,” added Muir.  The average MLS® residential price in BC is forecast at $515,800 this year, before rising 1.7 per cent to $524,500 in 2014.

In short, the Vancouver market looks to have more sales and a slight increase in prices going forward.

Further Reading

Download the Vancouver Forecast, Economic Outlook, Housing Starts, Mortgage Rate Forecast & Vancouver Stats 

Download the full PDF version of: BCREA: 2nd Quarter Housing Report

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What do Vancouver’s April Real Estate Stats Mean To You?

Stats At A Glance

To read the full report, Click on the Real Estate Board of Greater Vancouver's April Media package.

Notable

• Sales were 20.9% below (March sales were 30.2% below) the 10 year annual average and the lowest since 2001
• Sales were up 280 Units compared to last month, which was up 550 units compared to the month before
• Listing Totals were 0.4% below (March listings were 14.4% below) the 10 year annual average 
• The Benchmark price went up last month by $4300
• 15.7% of all homes on the market in April sold.  This is second month in a row
• Interest Rates are low and they are expected to remain there for the next year
• Since January the benchmark price of Detached homes has gone up 1.4%, Condos are up 2.1% and Townhomes are up 1.2%

What does it mean?

When sales are less than 35% of inventory (Vancouver is at 15.7%) or there is more than 7 months of supply (We are at 6.4 Months) it's Buyers Market.  

Condo's, Townhomes, and Detached prices went up slightly.  

Sales and the number of listings are way down compared to the normal April stats in Vancouver, but they are slightly up from last month. The new normal continues in the Vancouver market.

Prices are up for the second month in a row, which could be a sign of a slow recovery.  

It doesn't look like the big price drops are going to happen in Vancouver.  Now is the time to get into the market so you are settled by the end of the summer.

For Sellers:

On average, homes in Greater Vancouver are taking an average of 56 days to sell, which is down 1 day from March.  The number of days it takes to sell your home will differ as Real Estate is a hyper local market.  Each neighbourhood has its own DOM (Days On the Market) for each type of home (Condo, Townhome, Detached).  Contact me if you want to know what the average DOM would be for your home.

Look at when you want to make your move and then work backwards to when you should put it on the market.  It's taking two months on average to sell and most offers have a move in date that's about a month away, so put your home on the market around 3 months before you want to be out.

If this weekends weather is anything to go by, then summer is upon us.  You will want to get your home on the market now, before everyone goes away on their vacation.  

You need a new Competitive Market Analysis (AKA a Comparative Market Analysis or a CMA), done in the last 30 days to properly price your home.  I'll be happy to help you with that if you don't currently have a Realtor®.  Just fill in my my Free Home Evaluation form.  

The best pricing strategy in this market is to price your home as one of the best 3 prices for your type of home in your neighbourhood.  Price too high, and buyers won't even come to see it unless it's special to them.  Pricing low to try and get multiple offers is foolish in a buyers market.  

For people who have both a home to sell and one to buy:  

When it's a great time to buy, it's a lousy time to sell and visa versa.  Getting less for your current home than you want is fine as long as you get the same amount off of your new home.  

• Be realistic.
• It's the net between the two transactions that matters.
• Don't overprice your home.  
• Don't expect the sellers of your new home to accept lowball offers any more than you would
• 'Subject to buyer selling their current home' offers aren't really sales, so few are accepted and fewer are completed

What Others Are Saying

Vancouver housing market shows signs of improvement - Globe and Mail

Canadian Housing Prices in Toronto and Vancouver to Continue to Rise - Coldwell Banker

A New Look at Affordability - Metro 604

Why The Greater Vancouver Multifamily Real Estate Market Is, Well, Better Than Gold - CEO.ca

Bank of Canada may not hike rates until 2015 - Globe And Mail

Please let me know how I can help, if you are thinking of buying or selling.

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I updated my website today to give logged on users much more information on all listings and I removed the annoying (To me anyways) 'Click here for more info' prompts on the listing details.

Sign up is still free.

When you are logged in: 

Additional details include:

• Room Sizes
• Bathroom configuration
• Parking spaces and if they are covered or not
• What the maintenance fees include
• Listing date
• Original Price
• Construction
• Heating
• Foundation
• Exterior finish 

When you are not logged in:

Pictures and description are the same then....

Please let me know if you have any problems with this change or if I can do anything to help you find your new home.

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For immediate release 

Vancouver, BC – April 15, 2013.

The British Columbia Real Estate Association (BCREA) reports
that a total of 5,661 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during March, up 6.6 per cent from February on a seasonally adjusted basis, but down 17.7 per cent compared to March 2012.

Total sales dollar volume was down 18.5 per cent to $3.06 billion. The average MLS® residential price in the province was $540,662, up 2 per cent from February, but down 1 per cent from a year ago.

“BC home sales in March posted the largest seasonally adjusted month-to-month increase since January 2011,” said Cameron Muir, BCREA Chief Economist. “However, homes sale per capita continue to remain near a cyclical low, suggesting that pent-up demand may be beginning to grow in the housing market.”

Year-to-date, BC residential sales dollar volume declined 22.1 per cent to $7.2 billion, compared to the same period last year. Residential unit sales dipped 18.8 per cent to 13,572 units, while the average MLS® residential price was down 4.0 per cent at $530,435.

Click on: The Complete BCREA News Release, to get detailed statistics. 

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BC Real Estate: Back To PST

On April 1, 2013, BC reverted back from the HST to the GST + PST.  

The good news...You pay 5% GST on Real Estate Commissions instead of the 12% HST.

The bad news... There is a temporary 2% transition tax on new homes/condos.

BC’s 2% New Home Transition Tax At A Glance

Applies to all new residential homes that were 10% or more complete by April 1, 2013 & possession takes place between April 1, 2013 and April 1 2015.

Payable by the buyer on the earlier of the completion date or 60 days after the Strata plan is registered.

You can get a rebate based on percent complete as of April 1, 2013 as shown in the following table:

Additional Reading

BCREA: HST to GST: Transition Rules for Real Property

BCREA: HST to PST: Transition Rules for Real Property.PDF

Canada Revenue Agency: GST/HST Info Sheet GI-128

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What do Vancouver’s March Real Estate Stats Mean To You?

Stats At A Glance

To read the full report, Click on the Real Estate Board of Greater Vancouver's March Media package.

Notable

• March Sales were 30.2% below the 10 year annual average and the second lowest since 2001
• Sales were up 550 Units compared to last month
• March Listing Totals were 14.4% below the 10 year annual average 
• The Benchmark price went up last month
• 15.2% of all homes on the market in March sold.  This is the first time the ratio has been above 15% since May 2012
• Interest Rates are low and they are expected to remain there for the next year

What does it mean?

When sales are less than 35% of inventory (Vancouver is at 15.2%) or there is more than 7 months of supply (We are at 6.6 Months) it's Buyers Market.  

Condo and Detached prices went up slightly, while Townhomes went down slightly.  The overall Benchmark Price went up .9% overall last month.  

Sales and the number of listings are way down compared to the normal March stats in Vancouver.  After a year of below average sales, it has to be considered the new normal for the Vancouver market.

Most people have a vested interest in keeping housing prices high.  Home owners don't want their biggest asset to go down in value.  Developers want the most money for their work.  In fact, the only group who wants prices to go down are first time home buyers.  The last year has shown that they are not a big enough group to force the prices downward, especially after the Government changed the mortgage rules to eliminate many of them.

I don't think that the prices will go down much in the near future.  In fact, they are actually going up slightly right now, which could be the first signs of a slow recovery.  

After a year of waiting for the big drop in prices that some were predicting, buyers are slowly beginning to realize that it's not going to happen.  If big price drops aren't coming, then you have to ask yourself... what are you waiting for?

For Sellers:

Homes in Greater Vancouver are taking an average of 57 days to sell, which is up 1 day from February.

Look at when you want to make your move and then work backwards to when you should put it on the market.  It's taking 57 days on average to sell and most offers have a move in date that's about a month away, so put your home on the market around 3 months before you want to be out.

If you want to be out of your home this summer, then it's time to put it on the market.  

You need a new Competitive Market Analysis (AKA a Comparative Market Analysis or a CMA), done in the last 30 days to properly price your home.  I'll be happy to help you with that if you don't currently have a Realtor®.  Just fill in my my Free Home Evaluation form.  

The best pricing strategy in this market is to price your home as one of the best 3 prices for your type of home in your neighbourhood.  Price too high, and buyers won't even come to see it unless it's special to them.  Pricing low to try and get multiple offers is foolish in a buyers market.  

For people who have both a home to sell and one to buy:  

When it's a great time to buy, it's a lousy time to sell and visa versa.  Getting less for your current home than you want is fine as long as you get the same amount off of your new home.  

• Be realistic.
• It's the net between the two transactions that matters.
• Don't overprice your home.  
• Don't expect the sellers of your new home to accept lowball offers any more than you would
• 'Subject to buyer selling their current home' offers aren't really sales, so few are accepted and fewer are completed

What Others Are Saying

Home Ownership Offsets BC’s High Cost of Living - REW.CA

Change to mortgage default rules turning more people into savers - Financial Post

Credit union predicts housing sales will pick up in B.C. but at a snail's pace - Vancouver Sun

BC housing forecast for 2013 to 2015 - Beacon News

Why you should lock in your mortgage - Financial Post

Please let me know how I can help, if you are thinking of buying or selling.

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For the complete news release, including detailed statistics, click here

For immediate release

Vancouver, BC – March 14, 2013.  The British Columbia Real Estate Association (BCREA) reports that a total of 4,501 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during February, down 23.6 per cent compared to February 2012. Total sales dollar volume was down 29.9 per cent to $2.39 million. The average MLS® residential price in the province was $514,134, up 3.1 per cent from January, but down 8.1 per cent from a year ago.

"BC home sales continued at a modest pace in February,” said Cameron Muir, BCREA Chief Economist. “Despite improved affordability, many potential buyers and sellers remain in a holding pattern. With pent up demand now becoming latent in the market, it’s not a matter of if, but when home sales rise above their current pace."

“An unusual spike in the average MLS® residential price in February 2012 is largely responsible for the year-over-year percentage change,” added Muir. “Most BC markets have experienced relatively stable price levels during the first two months of the year.”

Year-to-date, BC residential sales dollar volume declined 24.6 per cent to $4.1 billion, compared to the same period last year. Residential unit sales dipped 19.6 per cent to 7,911 units, while the average MLS® residential price was down 6.2 per cent at $523,117.

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Why you need your own Real Estate Agent

BC uses the Designated Agency system where there are 3 types of Agency:

1. Designated Agents for each of the Buyer and Seller
2. Limited Dual Agent of both the Buyer And Seller
3. No Agency

Each type has it’s own Duties and Responsibilities.  

The British Columbia Real Estate Association has created a Working With A Realtor contract that you will have to sign that outlines the 3 types of agency and allows you to choose the Agency that you want.

If you are like most people, you will skip over the details and just sign where your Realtor® says to, but you will reduce or eliminate some of your rights if you choose anything other than Designated Agency.

Real Estate Is Adversarial

Sellers want the best price for their home and terms that they want.  Buyers want to pay the least and get the terms that suit them.  The resulting negotiation is adversarial.

Buyers and Sellers give up exclusive loyalty and some disclosure when they enter into a Limited Dual Agency agreement.  An Agent is supposed to work in the best interests of their client.  When both the Buyer and Seller are clients, it’s unclear who’s best interests are being served.

You wouldn’t go into a courtroom without having your own lawyer to protect your best interests and you shouldn’t Buy or Sell a home without having an Agent who is specifically protecting your best interests either.  Everyone seems to know this, but it is still common practice for buyers and Sellers to sign Dual Agency Agreements.

Why Do People Sign Dual Agency Agreements When It Limits Their Rights?

I could say, because they haven’t been educated in what they are giving up, but that’s only part of the story.

From The Buyers Point Of View

95%+ of buyers find the homes on the internet and they seem to want the listing agent to show them the home they have found.  This forces one of two things: Either the Buyer and Seller both have to sign a Limited Dual Agency agreement with the listing Agent, OR the Buyer has to find a different Realtor® to make actually make an offer.  The second choice makes the most sense for both Buyers and Sellers, but it’s usually not done.  A better choice is to use a designated Buyers agent to help you find the home and make the offer.

Some Buyers think: “I’ll bet I can get a better deal if I have one Agent who will reduce their commission”.  

Fair enough, but:

• The Dual Agent has twice as much to gain or lose by having both sides of the deal which will make them extremely motivated to get the deal done.  
• The Dual Agent at least helped set the price of the home in the first place and they won’t want to pitch low offers, even if they are in line with the current market conditions.
• Very few Realtors® can act completely impartially with a Buyer they have just met and a Seller they have a relationship with.

From The Sellers Point Of View

Sellers rarely sign a Limited Dual Agency Agreement when they put their home on the market.  They sign a Designated Agency Agreement, in part, to get the undivided loyalty of their Realtor®.  If the Agent finds a buyer and the offer comes in with the Limited Dual Agency agreement, the Sellers just want to see the offer.  They don’t want to sour a deal or their relationship with their Realtor® by saying to the potential buyer, “I don’t want to give up any of my rights, go find another Realtor® to make your offer.

From The Agents Point Of View

Agents love to talk about the ‘Win/Win’ situation.  We tell ourselves that we can be impartial and that we can act in good faith for both parties and that our job is to bring the deal together anyway, but in my opinion, double the income without double the work is the reason we do it.

When Is It OK To Use The Same Realtor® To Buy And Sell?

If both the Buyer and the Seller are savvy in Real Estate, have multiple transactions each, and neither needs the Agent’s council or expertise, then using the it’s OK to use the same Realtor® for both sides of the same transaction.

Realtors® at open houses who aren’t the Listing Agent can not offer you Designated Agency.  There is little to no difference between them and any other agent you pick off the street.  I’d say it’s OK to use them under Limited Dual Agency, as long as they don’t have a Designated Agency Agreement in place with the sellers.  Just don’t tell them anything that you don’t want the listing agent or sellers to know, and things should work out.

It makes things easier when you are selling your current home and buying a new one to use the same Realtor® for both transactions.  If your Realtor® specializes in being a Buyer Agent or doesn’t know the new area you are moving into, then ask them to refer you to a local area specialist because they will know the type of Realtor® you need.

Agents Duties and Responsibilities

Designated Seller / Listing Agent

• Provides undivided loyalty to the Seller
• Obey all lawful instructions from the Seller
• Put the best interests of the Seller before the Agents
• Protects the Sellers Interests
• Negotiates the best price & terms for the Seller
• Disclose all known facts that may influence decisions
• Maintain the confidentiality of the Seller’s private information
• Probably knows the Seller’s Motivation
• Probably knows the Seller’s low price
• Seller must sign a designated Agency acknowledgment

Designated Buyer Agent

• Provides undivided loyalty to the Buyer
• Obey all lawful instructions from the Buyer
• Put the best interests of the Buyer before the Agents
• Protects the Buyers Interests
• Negotiates the best price & terms for the Buyer
• Disclose all known facts that may influence decisions
• Maintain the confidentiality of the Seller’s private information
• Probably knows the Buyer’s Motivation
• Probably knows the Buyers high price
• Buyer must sign a designated Agency acknowledgment

Limited Dual Agent (Working for both Buyer and Seller)

• Deal with both parties fairly
• Disclosure to both parties of all known facts that may influence decisions except:
• Price
• Terms (other than in those in the contract or listing)
• Motivation of either Buyer or Seller (Unless authorized in writing)
• Personal Information of the Buyer or Seller
• Must disclose any known defects to the Buyer
• Buyer and Seller must sign an acknowledgment agreeing to Limited Dual Agency
• Take a look at the INMANNews Dual Agency Map to see how it’s limited in the US

No Agency

Note: Your must sign an acknowledgment agreeing to No Agency

The agent can:

• Explain Real Estate Terms, Practises and forms
• Assist with screening or viewing properties
• Prepare and present offers at your direction
• Provide a list of lenders and inform you of their policies
• Identify the other costs involved in your transaction

The agent can not:

• Suggest a Price
• Negotiate a deal
• Inform you of their clients bottom line price
• Disclose any confidential information

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Mortgage Checklist

Qualifying

Lenders take 3 things into account to qualify you for a mortgage:

1. Credit Score
• The Scale runs from 300 to 600 in Canada
• 680-900 is ideal
• 600-680 is average 
• Less than 600 means a higher rate and you may not get a mortgage 
2. Down Payment
• Minimum of 5%
• CMHC insurance required below 20%
• Minimum down of 20% for investment properties
3. Debt Service Ratio
• Monthly housing costs shouldn't be more than 32% of your gross monthly income
• Your entire monthly debt load should not be more than 40% of your gross monthly income

Pre-Approval

When you decide to buy a new home, your first stop should be your friendly neighbourhood bank or mortgage broker to get Pre-Approved for your mortgage.  

The bank or Mortgage Broker will tell you:

• How much you can afford to spend on a new home   
  
• The Interest Rate
• The Total cost of the loan
• The Payment
• How long they can hold the rate (Usually 120 Days)

The Pre-Approval approves you for the loan.  It doesn’t approve the property you want to buy.  When you have negotiated an offer for your new home, the bank will probably need to do an assessment to make sure that the property qualifies for the loan amount.  This is one of the reasons that you need to include a ‘Subject To Financing’ clause in every contract for purchase and sale.

The Mortgage approval process can take between 7 and 10 business days to complete. Being Pre-Approved removes the worry that you won’t qualify for the loan and allows you to make offers with a shorter ‘Subject To Financing’ time frame which makes your offer stronger in the eyes of the seller.

A lot of people worry about going to a lender to ask for money because they don’t know what to bring or what questions they will be expected to answer.  Here is a checklist that should help you to make the Mortgage application as quick and painless as possible.

Income Verification

Salaried Or Hourly

• A letter from your employer on Company Letterhead with the following information:
• Your Name
• Your Salary or Hourly rate
• The Name and Title of the person writing the letter
• A current pay stub
• A copy of your current Bank Account Statement showing direct deposit of your income
• If you want to add bonuses, overtime, gratuities, or profit sharing
• Two years Notice Of Assessments from Revenue Canada (NOA’s)

Self Employed Or Contract

• Two years Notice Of Assessments from Revenue Canada (NOA’s)

Questions You Will Be Asked

• What are your current assets?
• Cash
• Savings
• Short Term Investments
• RRSP
• Property
• Vehicle
• What are your current liabilities/Debt?
• Mortgage
• Credit Cards
• Loans
• What are your monthly expenses?
• What specific Critical Illness/Life Insurance do you have?

When You Currently Own A Home

• Current Mortgage Statement
• Current Homeowners Insurance Policy
• Most Recent Property Tax Bill / Statement
• Legal Description of the property
• Contract of Purchase And Sale when you bought the property -or-
• Property Tax Statement
• Property Value
• Latest Assessment statement
• Comparable Market Analysis from your Realtor®
• How much are the Property Taxes?
• What are the heating costs?
• What are your Condo fees?
• What is the total square footage of your home?
• What is the total square footage of your land?

When You Have Made An Offer

• Purchase And Sale Agreement contract
• Your Realtor® should provide this
• MLS Listing with photo
• Your Realtor® should provide this
• Name, Address, and Phone Number of your Lawyer or Notary
• Your Realtor® can give you a list of Lawyers and Notaries to choose from
• Confirmation of your Down Payment (Generally 5% of purchase price) amount from:
• Savings Account and/or Deposit
• Assets you can quickly liquify to pay the deposit
• Gift Letter if the Down Payment is coming from someone else
• Proceeds of the sale of another property

Mortgage Pre-Approval Links

Bank Of Montreal

CIBC

CMHC Homebuying Step by Step - Takes you through the entire Home Buying process.  Step 2 has calculators so you can do it yourself before you go to the bank

Royal Bank

TD Canada Trust

Let me know if you don't have a Morgage specialist and I'll give you a list of some of the best mortgage people in Vancouver.

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What do Vancouver’s February Real Estate Stats Mean To You?

Stats At A Glance

To read the full report, Click on the Real Estate Board of Greater Vancouver's February Media package.

Notable

• February Sales were 30.9% below the 10 year annual average and the second lowest since 2001
• Sales were up 33% compared to last month
• February's Listing Totals were 4% above the 10 year annual average (In Jan they were 18.9% above)
• The Benchmark price has fallen 5.6% since it peaked in May
• 12.2% of all homes on the market in January sold
• Interest Rates are low and they are expected to remain there for the next year

What does it mean?

When sales are less than 35% of inventory (Vancouver is at 12.2%) or there is more than 7 months of supply (We are at 8 Months) it's Buyers Market.  

We are about 10 months into the standoff between buyers and sellers.   We are starting to get some mixed signals.  Sales were up 33% over last month, but down 30% compared to last year.  Prices have pretty much stopped declining and have actually gone up in some neighbourhoods/property types. 

Sales are slow compared to normal years in Vancouver, but we are starting to see more people out looking.  We don't know if this spring will go back to normal or if the slow pace will continue.  We do know, however, that competition for the best homes is at it's peak during the spring.  

If you want to be in your new home by the summer, the time to start looking is now, before the spring competition hits the market.  

Even in a slow market, the best properties go fast.  Most websites only allow for a small subset of all the search criteria.  If you are looking for that special property, let me know exactly what you are looking for and I'll send you the properties as soon as they hit the market.  

If you are looking for an average to below average property then there is a lot of choice and you might as well take a wait and see approach.  

For Sellers:

Homes in Greater Vancouver are taking an average of 56 days to sell, which is down from 75 days from last month.  If you want to be out of your home by this summer, then it's time to put your home on the market.  

You need a new Competitive Market Analysis (AKA a Comparative Market Analysis or a CMA), done in the last 30 days to properly price your home.  I'll be happy to help you with that if you don't currently have a Realtor®.  Just fill in my my Free Home Evaluation form.  

The best pricing strategy in this market is to price your home as one of the best 3 prices for your type of home in your neighbourhood.  Price too high, and buyers won't even come to see it unless it's special to them.  Pricing low to try and get multiple offers is foolish in a buyers market.  

For people who have both a home to sell and one to buy:  

Read the For Buyers and For Sellers sections.

Look at when you want to make your move and then work backwards to when you should put it on the market.  It's taking 56 days on average to sell, so put your home on the market at least 2 months before you want to be in your new home.

Don't overprice your home and don't expect the sellers of your new home to accept low ball or 'Subject to buyer selling their current home'  offers.

What Others Are Saying

BMO lowers five-year fixed mortgage rate - CTV News

BoC should keep interest rates on hold for another year: C.D. Howe - Financial Post

BC Real Estate: Housing Starts To Trend Up This Year - Huffington Post 

I'd love to help you with your Real Estate needs.

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