No Comments

7 things to Look Forward to in Canada’s Estate, Home and Real Properties

Canada has a vast land area covering up to almost 10m million square kilometres, considered as the second largest country in the world. Canadian government invites and encourages migrant workers and residents from other countries to fill up jobs and occupy uncovered areas in the country. This is in response to the rising economic status of the country.

Canada’s Federal Economic immigration platform has been recruiting a number of migrant skilled workers to accommodate demand for workers on Canada’s local job vacancy and manpower needs either as temporary workers or permanent residents. The country is also trying to attract foreign investors as an additional government funds and government profit opportunities.

Check out reasons why you need to invest and purchase real estate as soon as possible. There are a lot of positive and optimistic expectations this year, 2018.

There are 7 things that Canadian residents should count on in investing in land, property, house and real estate this year.

 #1 Growing Population

As the Canadian government allow express entry for foreign skilled workers to augment job vacancies for different industries, the number of population in the country proportionately grows as well. Demand for housing is growing rapidly.

 

 

 

 

 

 

 

Image source: Statistic Canada
Population
Table summary
This table displays the results of Population 2006, 2011, 2016 and 2006 to 2016, calculated using number and % change units of measure (appearing as column headers).
2006 2011 2016 2006 to 2016
number % change
Canada 31,612,897 33,476,688 35,151,728 11.2
Newfoundland and Labrador 505,469 514,536 519,716 2.8
Prince Edward Island 135,851 140,204 142,907 5.2
Nova Scotia 913,462 921,727 923,598 1.1
New Brunswick 729,997 751,171 747,101 2.3
Quebec 7,546,131 7,903,001 8,164,361 8.2
Ontario 12,160,282 12,851,821 13,448,494 10.6
Manitoba 1,148,401 1,208,268 1,278,365 11.3
Saskatchewan 968,157 1,033,381 1,098,352 13.4
Alberta 3,290,350 3,645,257 4,067,175 23.6
British Columbia 4,113,487 4,400,057 4,648,055 13.0
Yukon 30,372 33,897 35,874 18.1
Northwest Territories 41,464 41,462 41,786 0.8
Nunavut 29,474 31,906 35,944 22.0

#2 Value of Housing, Land and Property Estate May Drastically Increase in the Coming Years

Every year the land and real estate appraisal increases by months or by years. It is inevitable market pricing for all commodity and realty. Purchase and invest in property and housing estate as earliest as possible this year to skip paying an increased value on real estates. Even after retirement, your house and land’s price increases. It never stops increasing day by day.

Image source: Greater Vancouver Real Estate Board

#3 Interests Rates Are Expected to Increase

Due to demand for housing and land development in the past years (and is expected to continue this year), real estate loan interests are expected to increase. In line with the increase on the value of land, property and housing prices, as well.

Canadian banks are expected to increase their rate target up to 1.25% interest rate (and will possible surge more) from the start of this year, 2018. So, it is wise to invest as early as possible.

#4 Diversity of Permanent Residence in Canada

Since the new Federal Immigration project has been implementing, competition with owning a land or a house per family has been a race. Cities like Toronto, Montréal, Vancouver, and Ottawa have been now occupied pretty much by a lot of working migrants and their families. The diversity of residents and the surge in population limits the chances of getting the best area around town or cities, because   you get to compete with the purchasing of the real estate of your choice.

Purchase a piece of land or a house now, or let just have what area remains. It has now been a race to who will get the best location and best house to purchase.

#5 Expectation on Real Estate Long Term Trend Increase

Definitely, a real estate and properties price increases, every year. With the promising business opportunities and job vacancies in whole Canada including those from other far flung regions, expectations in competitive economy, country’s increased GDP rate and job vacancies can ploy buying and sales capacity; thus inducing increase in prices and higher interest rates, depending on location and economic progress of the area.

#6 House, Land and Property Ownership can be used as Leverage

Bank loans, purchasing another property, authentication of documents, and legal certification often requires land and housing ownership. Investing in real estate can open great deal of opportunities for you and your family. It is an asset you can use to gain another asset, property or gain connections, and work / business chances.

#7 Real Estates is a Good Legacy

The house and lot you purchased now can surely gain profit in the coming years, despite of the property tax, renovation and maintenance costs; Can be passed on to your children, or your children’s children. Do not wait till the whole Canada is crowded and there are no left space for you to purchase.

No Comments

Luxury Home Sales In Vancouver Plummet

All around the world, people seek a luxurious and dream residence. Vancouver luxury homes are the perfect combination of beauty, style, elegance & more. The city offers amazing quality of life and all the modern amenities.

The previous years in Vancouver saw high demand for luxury homes. But the scenario has changed this year. Let’s understand exactly why and how this has happened:

Introduction of Foreign Buyer Tax & Its Impact

When compared to July 2016, Vancouver house sales over $1 million have plunged in the first half of 2017,

The city has witnessed a slowdown in luxury home sales. This is due to the 15 per cent foreign-buyer tax introduced in August 2016, in a struggle to cool the previously red hot market. Only after living through historic highs the previous year, sales activity in the $1 million-plus market stabilised in the first half of this year.

In the $4 million-plus market, overall luxury sales experienced a 52 % year-over-year slump to 211 units.

What’s more? The BC Government’s latest data suggests foreign buyers have been decreasing for months.

4056 West 33rd Avenue, Vancouver, British Columbia V6N 2J1
4056 West 33rd Avenue, Vancouver. Asking: $6,988,000.00

Chinese Cities Drive Up Luxury Home Prices

Limiting capital outflows has been China’s zealous effort.

In the first three months of 2017, luxury house prices in prominent global cities escalated by 4.3% compared to the same period last year, and this upsurge can largely be credited to China’s cities.

Chinese officials limited foreign currency transactions to a paltry $9,000 as of July 1.

The new controls are aimed at ceasing “ants moving house,” says Anne Stevenson-Yang, of J. Capital Research Ltd., one of the leading experts on the Chinese economy. The term is used in China for getting many people to make small money transfers to eventually transfer plenty to purchase property.

The Charleson Sales from $3,600,000
The Charleson Sales from $3,600,00. Source: buzzbuzzhome.com

Though folks discover ways around the rules, Anne says. Mostly, the rich already have their wealth overseas, thus they are not impacted by new controls. Irrespective, foreign exchange reserves have upturned every month since January.

In the present, the slowdown is already surfacing in Vancouver’s luxury home market. Single family home sales above $3 Million have jumped 27% year over year while inventory has hiked 24%.

It will be interesting to see how long China withstands the latest tightening. If China stays determined on limiting outflows, Vancouver housing market won’t be the only one to experience the impact. According to a report, there will be an 84% decline in offshore property buying in 2017.

The people of Vancouver may finally be able to heave a sigh of relief.

No Comments

Steady Drop in Vancouver House Sales; July Experienced Price Rise

Sales Slow In the Country’s Costliest Real Estate Market

Vancouver area house sales saw a steady drop in July. On the other hand, the short supply of properties on the market has led to price rise almost a year after the B.C. government put a foreign buyers’ tax to curb the once-hot market.

On August 14, 2017, British Columbia Real Estate Association published data that reveals the sink in the number of houses sold across Metro Vancouver in the last month compared with July 2016, and the growth in the prices.

In July 2017, in total, 3,012 houses were sold across Vancouver – an 8.8% depression compared to 3,301 homes sold a year ago. However, the region witnessed price rise, with the average outreaching $1,029,786. This inclines that year-over-year, there is a 2.2% spike in the home prices.

July Statistics – Image Source: rebgv.org

The Prices Do The Talking!

Last month, prices augmented across all regions of British Columbia. Vancouver, the most populous city of British Columbia, made highlights with 18% price hike over the year, hitting an average of $452,353. The average home price upturned 11% to $644,510 in Victoria. The South Okanagan region and Kamloops were up by 9.5% to $415,720 and 8.1% to $367,303 respectively.

More Balanced Market Conditions Expected Before 2017 Ends

BCREA chief economist Cameron Muir stated, “Strong economic growth, an expanding population base and a lack of supply continue to drive B.C. home sales and prices this summer.” Though, he added that the decline in sales and consistent rising inventory has been easing the harsh market conditions experienced lately.

“Home sales have edged back 4% since May, with active listings beginning to bounce back from a 20-year low”, Cameron Muir stated. “If these trends continue, it may signal that more balanced market conditions could emerge before the end of the year.”

All over British Columbia, the number of homes sold diminished 6.3% year-over-year, with 9,275 homes sold in the month in total.

Repeat House Sales Ascent Last Month

The Teranet- National Bank Composite House Price Index indicates a 7.8% increase in repeat house sales and 8.56% year-over-year across Metro Vancouver last month. This indicates price modifications for repeat single-family houses’ sales.

The year-over-year progress was beneath the national average upsurge of 14.17%. The upturn country-wide was driven by growth in Toronto, however, according to Teranet, Vancouver’s growth is slowing as non-condo properties’ prices are tumbling.

Demand For Housing, Property Listing & Home Prices In Vancouver

According to the real estate board’s president, Jill Oudil, the demand for housing in Vancouver now differs by property type and location, with some parts of the real estate market still witnessing bidding wars.

There is only 0.3 per cent increase in the number of properties newly listed for sale from last year. If we talk about the sales-to-active listings ratio, the figure is 32.2 %.

According to sources, when the ratio is above 20% for many months, house prices often experience skyward pressure.

No Comments

Vancouver’s Property ‘Boom’: Heading for a Dark Future?

luxury home vancouver
Currently detached home in Vancouver in Kitsilano.

Vancouver is one major world city that’s had it made in the twenty-first century. From the best of consumerism’s pleasures to the best in Nature’s goodie bag for her adventure-hungry, more-affluent-than-ever children, it comes across as a space of amiable interactions, easy indulgences, natural leisure…

… and huge housing affordability shortfalls for locals.

Trouble in Paradise

Unfortunately, Vancouver’s reputation has made it a magnet for some bad news. Its property market was plagued by real-estate crimes in the past, to be sure, but that was a problem many considered either resolved or easily manageable. Now, however, the city faces a new threat as several locals can be witnessed setting up sleeping bags on pavements and other external spaces.

The urban center marked its apex per-unit cost for homes at $967,500 on average, with stand-alones easily reaching up to $1.831 million. The benchmark rise is an 8.8% growth over just the last year. Simultaneously, it has witnessed 30.8% drop in sales over the year.

Vancouver’s property rates have gotten out of hand, and are too uncontrollable for locals to live up to their domestic dreams.

Info-May-2017
Source: Vancouver Real Estate Board

Non-Local Investment to Blame

The government’s identification of the causes behind this affordability chasm can be deduced from a look at the Vancouver property tax section on the city website. The emphasis on their Empty Homes Tax (which penalizes under-utilized residential spaces) and home-owner grants makes it clear that they are trying to root out non-local Canadian purchasers and foreign investors who buy property away from their source countries to act as tax evasion maneuvers.

In fact, the British Columbia government tried incentivizing Vancouverite purchasers and discouraging foreign participants by introducing a 15% foreign buyer tax and granting first-time home buyer loans. Both these moves have come under attack, however.


Misguided Well-Intentioned Maneuvers

Experts believe that the measures to stave off foreign buyers was flimsy at best, as the main perpetrators behind under-utilized residential spaces that arose from the investment of non-Canadians would easily be able to add the new sum to their usual considerations. Meanwhile, like locals, foreign immigrants on work permits too would suffer the effects of this move, which led BC Premier Christy Clark to announce leniency measures for such workers within seven months of the roll-out of the tax.

At the same time, many see the lure for local buyers as bad economics. Coming as it does at a time when “sellers [are still] reluctant to put their homes on the market”, according to Jill Oudil, President of the Real Estate Board of Greater Vancouver, getting more sub-150k buyers to vie for a limited supply of houses by subsidizing loans for houses costing up to $750,000 will only cease to make cost-effective properties cost-effective. In addition, it will either put many buyers in a spiral of debt as they strive to match their lifestyles to new accommodation, and also because, those whom it targets must able to qualify for 20% mortgages (even though they belong to sub-150k households), which means many won’t, and many others will fall into the dubious trap of additional debt.

The only real solution is to incentivize sellers so as to increase supply-side flexibility.

vancouver-real-estate-2017-May-2

source: Vancouver Real Estate Board
Greater Vancouver May data. Source: Vancouver Real Estate Board

 

No Comments

Demand For Houses Still Outweighs Supply in Metro Vancouver’s Housing Market

apartment-constructionAccording to the Real Estate Board of Greater Vancouver, demand for homes in Metro Vancouver is constantly climbing the ladder. On the other hand, there is no sign of an increase in the supply of houses in the market. The REBGV said that listings combined with high demand, precisely for condos and townhomes, continued to influence Metro Vancouver’s real estate market in the month of March 2017.

The Real Estate Board of Greater Vancouver discovered that the sale of residential properties in the province amounted to 3,579 after the first quarter of the year 2017. And when juxtaposed to March 2016’s record-breaking sale of 5,173 houses, it was found that there has been a drop of 30.8% in the sale.

Despite such a fall, there is another statistics that would give the residents of Metro Vancouver a sigh of relief. The residential sales fell when compared to sales in March 2016 but when contrasted with the sales of the month of February 2017, there has been an increase of 47.6% in sales. In February 2017, only 2,425 residential properties were sold.

Also, the data revealed that the previous month’s sales were 7.9%, which is above the 10-year sales average for the month.

The President of REBGV Jill Oudil explained, “While demand in March was below the record high of last year, we saw demand increase month-to-month for condos and townhomes.” He further added, “Sellers still seem reluctant to put their homes on the market, making for stiff competition among home buyers.”

The Game of Numbers

In March 2017, in Metro Vancouver, the total number of detached, attached and apartment properties made available totalled 4,762. The figure indicates a fall of 24.1% as last year in March, the number of units listed were 6,278. On the contrary, the figure points to an increase of 29.9% when compared to the listings made available in February 2017. This is being considered the lowest number of listings in the month of March since 2009.

A statement released by the Real Estate Board of Greater Vancouver stated: “The total number of properties currently listed for sale on the MLS system in Metro Vancouver is 7,586, a 3.1 percent increase compared to March 2016 (7,358) and a 0.1 percent decrease compared to February 2017 (7,594).”

The board said that the market analysts could sense a downward pressure on the house prices when the ratio declines below the 12% mark for a continuous period. However, house prices usually feel mounting pressure when they outpace 20% ratio for over a number of months.

Oudil said, “Home prices will likely continue to increase until we see more housing supply coming on to the market.”

The benchmark prices in Metro Vancouver for all residential properties fell by 1% over the previous six months and rose by 1.4% juxtaposed to February 2017.

To sum it up, the statistics showed that the sale of detached, attached and apartment properties decreased when compared to the property sales of March 2016. The drop in sales also led to the change in benchmark prices of the properties.

vancouver-march-2017
Vancouver housing price overview March 2017 – Image source: www.rebgv.org

 

No Comments

Vancouver’s Turbulent Housing Market

vancouver real estate

Analysing the on-going hurly-burly situation of Vancouver’s real estate market, it can be predicted that the cluster of black clouds that has jam-packed the sky of the city will not permit the sky to become clearer and sun to rise anytime soon.

The incessant anger, frustration and rage of Vancouverites towards the housing market of the city have led to some intense situations. From the rise in prices to a shortage in supply of houses and from 15% tax imposition on foreign nationals to the abolishment of the foreign buyer tax on people with work permits, folks have seen it all; and believe it or not, this has given rise to a blame-game.

The Blame-Game

When the first-time buyers were priced out of the real estate market, it gave rise to an array of emotions, strong reactions and never-ending blame-game. The foreigners, the speculators, the real estate agents, Christy Clark, the rich and the poor, all have been blamed for the out-of-control Vancouver housing market.

But out of all, one aspect that has got overlooked in the debate is that the house owners in Canada are the most tax subsidised payers.

Tax Programs to Evenly Distribute British Columbia’s Wealth

The tax program that we’re going to discuss first is the Home Owner Grant. The Home Owner Grant enables the homeowners in Metro Vancouver to base their decision of whether to sell or not sell their real estate properties.

Every year in January a huge wonder game takes place that questions how much B.C. will change the exemption to.

The taxpayer of B.C. pays some of its residents an amount of $570 towards their property taxes every year, but in the case of an unsubsidised market, the house owners might be persuaded to sell their properties. In a housing market where the shortage of supply is often argued as a reason for mountain climbing prices, the B.C. government lays down an unwarranted restraint on the housing market’s original supply of listings with Home Owner Grant.

The next tax program is the property-tax deferral program. This is the only program where when a person turns 55, he/she can apply to have all of their property-tax delayed until the time they sell their home. When one has applied for the program, the B.C. government pays the taxes for the applied and charges a relatively low-interest rate of 0.7% for the benefit.

This way, it would become mandatory for some house owners to sell off their real estate properties, similar to how it is in other housing markets around the world. It is held that downscaling or losing your house is in a way a natural order of a free, housing market and presently the province’s government energetically interferes with this happening.

Further, it has been predicted that during the coming financial year, the Home Owner Grant will cost $857 million to B.C. taxpayers.

In the month of January, Christy Clark’s government presented two taxpayer-funded programs into the housing market – the B.C. Home Owner Mortgage and Equity Partnership. With this, it becomes every individual’s financial concern to possess their primary house at the very least. These programs will cost B.C. taxpayers $728 million during the coming three years. It is further expected that the program would add 1,400 buyers to the B.C. housing market in the future years.

Thus, the government subsidises the housing market around $1.25 billion every year. The two programs impact supply by providing an incentive not to sell their properties, and the other creates demand by motivating individuals to purchase.

The only way to calm the uncontrollable housing market is to put a halt on subsidising homeowners with these financial incentives in order to increase the supply for sale.

Property tax deferral program
Number of Property Tax Deferrals has increased year by year. Source: Metro News

No Comments

B.C. First-Time Home Buyers Program: A Boon or Curse?

vancouverbc-december-15-2016-b-c-premier-christy-clark
Premier Christy Clark announces a new program in Surrey on December 15th. Source: Vancouver Sun

Good news for those who have always wanted to buy a house, but could only fulfil their desire in a dream. Excited to know the entire talk, who wouldn’t be? After all, it’s about your new home that you are going to own and not the one that will be rented! The program will take head from Jan, 16 as the B.C. government offer down payment loans to the first time home buyers.  

Showers of opinions in the form of another real estate debate are attracting tremendous views on air as soon as the news hit the Vancouver housing market. Read the entire discussion worded here:

Highlights of the Program

The first time home buyers plan called the B.C. Home Owner Mortgage and Equity Partnership program has listed different eligibility criteria to provide its benefits to particular people in need. Given below is the checklist that your documents and potentials should match:

  • The 25-year loan is free from interest until first five years and will cover up to a maximum of $37,500. This means you have to pay interest on the current rate after five years.
  • Your down payment amount should be equal to the loan amount.
  • You should be a Canadian citizen or permanent resident for five years and have never previously owned property.
  • You should have lived in B.C. for at least one year.
  • You should be free from any legalities of owning an interest in the residential property at any point in time and in anywhere in the world.  
  • The value of the house you want to purchase should be less than $750,000.
  • Your document credentials should help you in qualifying an insured high-ratio first mortgage for at least 80 percent of the acquisition of prices.  
  • Combined gross household income of you and your home partner should not be more than $150,000.

An approximate figure of 42,000 B.C. residents has been expected to get benefits from the three-year program. Furthermore, the housing program will lessen the effects of the new mortgage rules and help first time home buyers to sustain competitively in the housing market.  

bc-first-time-home-buyers-program

 

All about the Demand and Supply

The market is growing higher and so do the pricing because of the unmatched fulfilment of demand and supply. As a result, sales of expensive single-family homes are falling.

However, as per the senior economist Bryan Yu with Central 1 Credit Union, trade of homes in the more affordable condominiums and town home segments of the market remains full of life. He also stated that the recent findings on program impact had thrown a considerable light on the improved local citizens’ home purchasing abilities than before in the condo and town home market. Nevertheless, the program is playing a significant role in heating further the B.C.’s real estate market which is already strong.

Concerns or Politics

Premier Christy Clark positively reviewed the program by stating that it will wipe out the stress of saving high down payments of the middle-class British Columbians.  The primary concern she raised revolves around the pocket weight and saving obstacles of an average home buyer.

Clark further said that for many first time home buyers, getting past that down payment and saving $25,000 or $50,000 to buy a new home is just impossible.

Tom Davidoff of the University of B.C.’s Sauder School of Business holds an entirely different opinion around the scheme. He settled the program as an amalgamation of bad economics and a step in the wrong direction.  He believed the program to be an attempt by the government to support the real estate market that holds a risk of severe disappointment by coming 2017.

New Democrat David Eby, the Opposition’s real estate critic, resolved a negative approach towards the initiative. He said that the plan increases the debt burden of the home buyers when the government should be constructing affordable accommodation on provincial land.

How people are taking it?

The current scenario hits positive responsiveness among developers, mortgage brokers, the real estate business and some housing forecasters in B.C. Especially, those with insufficient income and savings are looking forwards to getting enrolled in the first time home buyers program as soon as it takes ground. Furthermore, industry experts argued that the plan will help to speed up the entry into the real estate market of those who qualifies for the mortgage.  

The primary concern that is bothering all is whether the program will reveal out as a political stunt, caused only to attain public preference and favorability or will it be the “real thing”, and will the Vancouverites housing dreams come true just the way it’s been pictured by the program founders and the ruling politicians.

Until now, it seems that the first time home buyer scheme will be a boon and not a curse for the residents of B.C., yet only the future can decide the real outcome.

No Comments

Own a Home under $300K in City of Vancouver

Are you tired of renting but cannot afford to buy a place because of the crazy housing market in Vancouver? At the main time, you would also like to live by city center? The truth is that there are always SLIGHTLY REASONABLE homes out there as long as you have an OK job to get a mortgage, as well as updated information about the market.

Here are the reasons why you should probably thinking about OWNING A PLACE.

  • Housing price never go down in the long run, and your salary may not catch up with the increase in housing price.
  • You rents and never own a place. What about you pay the “rents” to the bank and you can actually own a place?
  • No landlord can kick you out.
  • Worse case scenario, sell the home if you really need some cash, and you can never do that when you rent.

 

How about $300k for a home in city of Vancouver ? Does that sound a little bit more reasonable?

You get 10% down payment and the rest you can mortgage.

mortgage
The mortgage rate is approximate based on the current 2-year variable rate. Please check with your bank or mortgage specialist for a more accurate rate. Calculation is completed with the Scotia Bank mortgage calculator.

Looks like you can own home with just a little bit over 1k. I am sure there are many people that pays 1k just for a single room, or for a tiny suite and old neighborhood.  What if I tell you that there are homes under 300k?

Here are the home under $300k that are available for sale in city of Vancouver (YES, it’s Vancouver Vancouver, not Barnaby, Richmond, Surrey…).  – as per December 15, 2016

109 2239 Kingsway, Vancouver, British Columbia V5N 0E5 (Built in 2011)

$253,000.00

property-17560857-largephoto-2 property-17560857-largephoto-4

 

202 930 E 7th Avenue,Vancouver, British Columbia V5T 1P6

$259,000.00

property-17641706-largephoto-1 property-17641706-largephoto-6

1003 3380 Vanness Avenue, Vancouver, British Columbia V5R 6B8

$285,000.00

property-17657701-largephoto-1property-17657701-largephoto-8

114 1149 W 11th Avenue, Vancouver, British Columbia V6H 1K4

$285,000.00

property-17527161-largephoto-6 property-17527161-largephoto-14

 

1003 3438 Vanness Avenue,Vancouver, British Columbia V5R 6E7

$299,000.00

property-17595833-largephoto-3 property-17595833-largephoto-6

No Comments

Vancouver Real Estate Market Update – December 2016

Vancouver’s High Housing Prices

This year too, Vancouver made it to the top on the list of high housing prices. In 2016, the average cost of a home in Canada climbed the peak in Metro Vancouver, at $864,556. This means that Canadian families who want to buy a home in that radius must earn nearly $140,000 per year.

According to the latest census, the median household income in Canada is $78,870. Those families who are obtaining the median income can have the wherewithal for a house priced between $460,000 and $490,000 – faintly exceeding bisection of the cost of the average housing price in Metro Vancouver.

canada-housing-price
Overview of average housing price in each major city in across Canada. Source: CTV News

Empty-Homes Tax – A Ray of Hope to Cool Off Housing Market

After public consultation, Mayor Gregor Robertson had revealed a proposal for a one percent tax on empty homes. Now, the proposal is approved by the city council, and thus, it has become the first of its kind in the country.

All non-principal houses and unoccupied residential land that are empty for the period of full six months of the year will be liable to pay one percent empty homes tax. All homeowners in the city will have to self-declare if a property is the typical place they call home, eligible for immunity or vacant.

Robertson said, “I just want to be really clear: Almost all Vancouverites will not pay the empty homes tax. This is only going to apply to those with second or third homes that are sitting empty most of the year.

Undergoing renovations, condos and townhouses that have restrictions on rentals, and homes whose owners are in medical or supportive care will be exempted from the tax.

Such a tax on empty homes can address the spinoff effects of a red hot housing market.

Solution to the Rental Housing Crisis

Vancouver is hopeful that empty homes tax will boost the city’s scanty supply of rental stock. Presently, the rental vacancy rate is 0.6 percent – ensuing in some of the maximum rents in Canada. City data puts forward that more than 10,800 homes are unoccupied and another 10,000 are left vacant for an extended span of time.

Robertson quoted, “Vancouver is in a rental-housing crisis.” “The city won’t sit on the sidelines while over 20,000 empty and under-occupied properties hold back homes from renters struggling to find an affordable and secure place to live,” he exclaimed further.

The city is of the view that the rental vacancy rate would upsurge to 3.5 percent with an upturn of 2,000 rental properties.

The empty homes tax will come into effect at the beginning of 2017. It will be based on the assessed value of the property. This means – the person owning a $1-million home would pay an extra $10,000 a year in taxes.

Vancouver Homes Selling For Less than Purchase Price

Often, Vancouver real estate is acclaimed for exceptional returns. However, recently, this blooming road took a new turn when three single family detached homes bought were listed for less than the owners paid for them. At times, benchmark prices slump due to the distribution of prices, but this isn’t the situation here since these homes were purchased just 8 months before, that owners are selling at a subordinate price.

Surely, the inflated housing market of Vancouver isn’t crashing but isn’t exactly the booming market of the previous years. Does this mean that in Vancouver real estate market, affordability is setting in? Fingers crossed! With British Columbia’s new 15% property transfer surtax on foreign nationals and foreign-controlled corporations, the house sales have become sluggish, and that, in turn, will hopefully lead to moderating prices.

November 2016 Real Estate

vancouver-real-estate-nov-2016
No Comments

Emerging Trend Not Obvious In Vancouver Real Estate Market Stats

While properties continue to sell in the Vancouver Real Estate Market, the totals from September 2016 was 9.6-percent lower than the sales average for the month over the past ten years. However, that does not reflect the increase in listings nor does it show the new trend in housing demands.

According to the Real Estate Board of Greater Vancouver, new listings in Metro Vancouver for detached, attached and apartment properties dipped marginally over the same period from 4,846 in September 2015 to 4,799 last month. That represents a decrease of one per cent.

Listing Numbers Show Increase

 However, compared to numbers from August 2016 there actually has been a bit of a burst of activity. There were 4,293 properties listed in the month which puts September at an increase of 11.8-per cent. According to REBGV President Dan Morrison there is a good reason for the overall ten year drop in listings and that it is not a negative sign.

He says the demand for housing has shifted away from detached, attached and apartment properties in recent years. Morrison explains that the current trend is built upon a larger demand for condominiums and townhouses. He says the supply and demand conditions are directly related to this trend which does not show in the overall sales numbers.

Historic Listings Numbers Drop But Recent Numbers Rise

His statement is verified by the Metro Vancouver totals of homes currently in the sales market through the MLS system. At the end of September 2016 the figure was 9,354 – down almost 13.5 per cent from a year ago but up 10-percent from August 2016.

The number of sales also speaks loudly about the trend. The sales-to-active listing ratio was 24.1 per cent for September 2016. That’s the lowest it has been since February 2015 which signals a time frame for the existing shift in the housing market conditions.

Sales Figures Could Bring Prices Down

Actual sales of detached properties in September 2016 were 666, down 47.6 per cent from the previous year. Apartment sales experienced the same fate, down 20.3 per cent from last year at the same time with attached property sales falling 32.2 percent from September 2015.

Morrison says the change in the market conditions is providing a huge positive – it is taking away the upward pressure on pricing. Due to the level of uncertainty the REBGV President explains that price points are becoming more difficult to put in place for both buyers and sellers.

Additional Data

Other interesting facts from September 2016 in Metro Vancouver:

 

  • Detached properties spent an average of 37 days on the market and reached a benchmark price of $1,579,400
  • Apartment properties spent an average of 24 days on the market with a benchmark price of $511,800 recorded
  • Townhouse properties attained a benchmark price of $677,000 and were on the market an average of 21 days.

 

 

infographic-sept-2016
Source: rebgv.org Monthly Statistical Reports

These stats verify the emerging trend on apartment and townhouse property sales with both selling faster than detached properties. Analysts say that the longer the sales-to-active listings ratio stays above 20 per cent, the more upward pressure housing prices will experience. Pricing will see downward pressure once the ratio dips below 12 percent