Sanjin Cvetkovic : Blog posts labelled: real estate : page 2

Spring Market Outlook

Posted on February 26, 2010 by Sanjin Cvetkovic

OTTAWA - With new mortgage rules, a new harmonized sales tax in some provinces and the possibility of higher interest rates all set to kick in this summer, Canadian home buyers are on a tear and it is only going to get busier leading up to this summer, according to the Re/Max Market Trends Report 2010 released Wednesday.

The report, which examined real estate trends in 16 markets across the country, found that unusually strong activity in January -- traditionally one of the quietest months of the year -- has led to a sharp decline in active listings in 81% of markets surveyed. Too many buyers and not enough homes will probably be the main problem in coming months, according to the report.

Markets experiencing the tightest inventory levels include Toronto (-41 per cent), Kitchener-Waterloo (-33 per cent), Ottawa (-30 per cent), Victoria (-30 per cent) and Greater Vancouver (-27 per cent), which also had some of the highest year-over-year sales gains.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent), the report said.

Western Canada dominated the list of centres with the greatest increases in price, with Victoria home prices jumping 25.5 per cent in January compared with the same month a year before. Kelowna jumped 22 per cent and Greater Vancouver rose 19.5 per cent. St. John's saw an increase of 23 per cent and Toronto rose 19 per cent.

"While home ownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now," Elton Ash, regional executive vice-president at Re/Max of Western Canada said in a release.

With the Harmonized Sales Tax, which will add more tax to home buying in two of the biggest and most squeezed markets - Ontario and B.C. - set to start July 1, and the Bank of Canada's record-low interest rates expected to rise around the same time, that pace of growth could slow dramatically in the second half of 2010. Last week, Finance Minister Jim Flaherty also said starting April 19 all borrowers must meet standards for a five-year fixed-rate mortgage, even if the buyer wants a variable rate mortgage, among other mortgage rule changes.

"There have never been so many motivating factors in play at once," Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada said in a release. "We're in for a heated spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."

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September Stats

Posted on October 2, 2009 by REBGV

Posted in real estate, sales, stats

Buyer demand remains strong while home listings increase

Greater Vancouver home sales remained strong last month, with the second highest number of residential sales ever recorded for the month of September.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 3,559 in September 2009, an increase of 3.4 per cent from the 3,441 sales recorded in August 2009, and an increase of 124.5 per cent compared to September 2008 when 1,585 sales were recorded.

“As homes sales in Greater Vancouver continued at an elevated pace in September it’s encouraging to see that more homes were listed on the MLS® in the month than any other so far this year,” Scott Russell, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,764 in September 2009. This represents a 6.2 per cent decline compared to September 2008 when 6,142 new units were listed, but a 26.8 per cent increase compared to August 2009 when 4,544 properties were listed on the Multiple Listing Service® (MLS®) in Greater Vancouver.

At 12,596, the total number of property listings on the MLS® increased 5.5 per cent in September compared to last month and declined 36 per cent from the 19,852 homes listed for sale during the buyer’s market that was experienced at this time last year.

“During this period of renewed demand in our marketplace, home values have gradually recovered from the declines that occurred in 2008,” said Russell.

Since the beginning of the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 13 per cent to $547,092 from $484,211, while home prices compared to Septembers 2008 levels are up 1.6 per cent.

Sales of detached properties increased 160.6 per cent to 1,423 from the 546 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties increased 2.1 per cent from September 2008 to $741,632.

Sales of apartment properties in September 2009 increased 94.9 per cent to 1,489, compared to 764 sales in September 2008. The benchmark price of an apartment property increased 1.5 per cent from September 2008 to $374,686.

Attached property sales in September 2009 are up 135.3 per cent to 647, compared with the 275 sales in September 2008. The benchmark price of an attached unit increased 0.4 per cent between Septembers 2008 and 2009 to $466,276.

Download complete stats package by clicking here.

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HST - How it affects you

Posted on October 1, 2009 by BCREA

Posted in gst, hst, provincial, real estate, taxes

What the HST means for you

The provincial government's decision to harmonize the provincial and federal sales taxes into the new 12% HST will remove $2 billion in costs to BC businesses and provide point-of-sale rebates on many important goods and services.

However, we are concerned that the proposed HST will increase the cost of buying and selling all property and have a significant impact on the purchase of newly-built homes.

Increasing Cost of Professional Services like REALTOR® Commissions

Under the previous system, only five per cent GST was charged on professional services associated with real estate transactions such as appraisals, inspections and REALTOR® commissions.

Under the proposed HST, the taxes charged on those services will jump an additional seven per cent, adding to nearly all closing costs.

Increasing Cost of New Homes

For new homes, under the previous system, only five per cent GST was charged on new home sales. Under the proposed HST, a very complicated new arrangement will drive up the cost of new homes.

Partial Rebate Not Enough

To offset the increase in costs, the BC Government plans to offer a partial rebate of the HST for new housing, intending that new homes up to $400,000 should bear no more tax than under the current PST system. Homes above $400,000 will receive a flat rebate of $20,000. New home sales over $400,000 will be dramatically impacted, as buyers will have to pay an additional seven per cent tax on amounts over $400,000.

Consider a new home in Greater Vancouver: with a current Housing Price Index benchmark price for all new residential properties combined (single family detached, townhouse, and condo) of $528,821, the current taxes (GST and the Property Transfer Tax) total over $ 35,000. On July 1, 2010, the same home buyer will pay almost $5,000 more in taxes due to the HST.

British Columbians Already Taxed Unfairly on Housing

In addition, the Property Transfer Tax already requires BC homebuyers to shoulder an unfair tax burden. British Columbians pay 222 per cent more in land transfer taxes per transaction than the average Canadian.

The BC Government levies a Property Transfer Tax rate that is 129 per cent higher than the average for Canadian provinces. Higher property prices are not solely to blame for this scenario; prices in British Columbia are 45 per cent higher, so the inequitable structure of the BC Government's Property Transfer Tax adds an additional burden of up to 177 per cent.

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