Home Sales Will Pick Up in 2013: BC Real Estate Association

Who’s Buying Real Estate in BC?

RE/MAX interviewed over 1,100 Canadians who intend to buy a home in the coming 24 month for its Canadian Homebuying Trends Report. It covers all of Canada, but also breaks home buying trends down by province. So here’s a look at who’s buying a home in BC, what they’re looking for and how much they want to spend.

One standout impression comes from the stats on who’s buying. It looks like multi-time buyers are in the driver’s seat, i.e., investors or people who are onto their third or fourth home. Canadian Real Estate Wealth magazine quotes Elton Ash, Regional Executive VP of RE/MAX Western Canada: “”Between 2009 and 2011, first-time buyers were the engine driving housing activity, taking advantage of favourable conditions and a recovering economy. That changed in 2012, and even earlier in B.C., as prices reached a breaking point.”

Click on the infographic to see a full-sized version.

Interest Rates Stay in the Basement… Maybe Till 2014

The Bank of Canada surprised most analysts Wednesday by cutting Canada’s 2013 growth estimate (to 2.0%) and calling the timing of the next interest rate hike “less imminent than previously anticipated.”

The BoC has used the “less imminent” wording before, but not in any recent rate decision statements. It attributed its position, in part, to “more muted inflation” and cooling household debt levels.

The decision leaves Canada’s prime rate stuck at 3.00% for the 27th straight month—to the delight of most variable-rate mortgage holders.

These were some highlights from the announcement:

• “Core inflation has softened by more than the Bank had expected…”
• “…global tail risks have diminished.”
• “Caution about high debt levels has begun to restrain household spending.”
• “…exports should remain below their pre-recession peak until the second half of 2014…”
• “…Some modest withdrawal of monetary policy stimulus will likely be required over time…”

The benchmark 5-year bond, which is closely correlated with fixed mortgage rates, fell 5 bps to 1.41% on the Bank’s decision.

Economists will now likely revise their rate hike calls (which have proven hopelessly non-predictive) to late 2013 or early 2014.

The next Bank of Canada Rate meeting is six weeks away on March 6.

One interesting side note: The Bank added that household debt growth has eased to just 3%. That’s the weakest annualized rate since 1999 and it reflects “a slowdown in the growth of both residential mortgage and consumer credit.”

Canadians are both voluntarily heeding government debt warnings and being forced to heed them through stricter lending rules.

MLS Condo Market Update: December 2012

Welcome to the New Normal 

The way the year ended, Realtors may just as well have closed shop on November 30th and started their Hawaii vacation early. December MLS® condo sales were at or close to record lows, which had many pundits (mostly in Eastern Canada) proclaiming that the Coast was toast.

Although the outlook for MLS condo sales over the next 12 months is not good, it’s not “that” bad.  (see: 2013 MLS Condo Market Forecast)

The worst-hit markets are the ones that previously attracted the most offshore (aka Chinese) buyers and investors. Downtown Vancouver high-rise sales are taking a big hit. Westside high-rise sales and prices are both down. Richmond high-rise sales have cratered. But despite the downward sales trend in most markets, selling prices are either holding steady or showing only a modest downward trend.

The next three to four months will set the pace for the condo market in 2013. These are typically the best months for condo sales. The return to the PST/GST tax on April 1st may help sales but what would be more helpful is a reversal of the population loss to other provinces and an increase in international migration. Third quarter 2012 figures show that BC had a net loss 6,423 persons to other provinces for the first nine months of 2012 and a net gain of 35,255 persons from international migration. Total net migration to BC in 2012 will likely be close to 30,000 persons which is down by about 5,000 from 2011 and about half the total net migration in 2009.

MLS High-Rise Markets

High-rise MLS condo sales – Strategics Vancouver Condo Report

The 150 or so MLS high-rise sales in December brought the year’s total to just over 3,530 units, or 21% below total MLS high-rise sales in 2011. The average MLS high-rise selling price in December was $521,000 or $547 per square foot. This was up by 2% from December 2011, but the overall average selling price in 2012 was down by 4% from 2011.

As reported by the real estate board, more sellers have pulled their units off the market over the past few months. Total listings are down but given the drop in sales, the MLS high-rise market still had about 46 weeks worth of active listings at the end of December. Perhaps sellers who pulled their units are hoping for better prices, but over the last quarter of 2012 sellers had to drop their asking prices by an average of 6% or almost $40,000, and this is likely to continue.

Of the approximately 2,220 high-rise condos listed on MLS at the end of December, just over 800 were either under construction or vacant. These sellers most likely don’t have the option of pulling their units off the market and will have to ride this market to wherever it takes them. A comparison of list prices for under-construction units and a price estimate based on the Premium Condo Price Calculator indicates that many have already been substantially discounted. (For specific high rise markets in Greater Vancouver and the Fraser Valley see: Detailed Market Trends)

MLS Low Rise Markets

Low-rise MLS condo sales – Strategics Vancouver Condo Report

MLS low-rise sales were also down in December. The 190 sales brought total sales for the year to 4,070 units; down by 18% from total sales in 2011. The average MLS selling price for low-rise condos in December was $316,000 or $352 per square foot. The overall average selling price in 2012 was 3% lower than the average price in 2011. The average difference between list and selling price is now 6%, which suggests that 2013 prices will drop even further in 2013.

At the end of December, the Greater Vancouver MLS market had approximately 3,200 active low-rise listings; enough to supply the market for 55 weeks given the way sales have gone. About 1,250 or 40% of the active low-rise listings are either under construction or vacant. (For specific low rise markets in Greater Vancouver and the Fraser Valley see: Detailed Market Trends)

MLS Townhouse Condo Markets

Townhouse MLS sales – from Strategics Vancouver Condo Report

 The 155 MLS townhouse sales in December, a new low for the past four years, brought the year’s total to 2,640 units. YTD townhouse sales were down by 17% compared to 2011. The average MLS selling price in December was $427,000 or $278 per square foot. The overall average selling price for townhomes in 2012 was down by 5% from 2011. Over the past three months, the average selling price for townhouse condos has been 5% below the list price suggesting that further price cutting will be the norm for 2013.

The number of active townhouse listings in December was just over 2,400 units; enough to supply the market for the next 49 weeks if sales continue to follow the present trend. About 35% of these active listings are either vacant or under construction. (For specific townhouse markets in Greater Vancouver and the Fraser Valley see: Detailed

Market Trends)

 

If you have any Questions please contact Carmen Leal @ 604-218-4846

Open House:

Saturday January 19th, 2013 11am to 130pm

@ #9-900 Smithe Mews 3bd 3bth 2081 sqft

$1,899,900

Saturday January 19th, 2013 2pm to 4pm

@ #2002-1028 Barclay St. 2bd 2bth 1057 sqft

$848,000

B.C. home builders and renovators expect business will pick up

after the HST disappears in 2013. 

New rules could mean good news for the home renovation business.

PST-GST system now coming into play may have those people that

were sitting on the fence before all of a sudden start thinking seriously

about that renovation again.

Business will pick up during the transitional year, but the real push will

come when the HST actually disappears as of April 1, 2013.

This will spark the economy because construction is — and home

renovation and new home construction — is one of the biggest drivers

in the economy.

Please copy and past video to web browser.

http://www.cbc.ca/player/Embedded-Only/News/BC/ID/2198518737/

Give me a call with more details.

Carmen Leal  Direct Line: 604-218-4846

http://www.rew.ca/news/how-to-appeal-your-bc-assessment#.UPhZgJOrQiQ.facebook

If you have any questions please give me a call at 604-218-4846

Carmen Leal

RE/MAX Crest Realty Westside

Website: www.carmenleal.ca

Email: carmen@carmenleal.ca

Direct Number: 604-218-4846

Open House this weekend Sat and Sun 2 to 4pm

1 bedroom and 1 bathroom 750sqft for $388,000

@ #306-511 W 7th Avenue Vancouver, BC

Open Houses:

Saturday January 5, 2013 & Sunday January 6, 2013

1130 to 1pm @ 1060 Cardero Street 3 Bedrooms and 2 Bathrooms 1,088 sqft Priced at $749,000

2 to 4pm @ 4722 Medfield Place 4 Bedrooms and 4 Bathrooms 4110 sqft Priced at $2,949,900

1060 Cardero4722 Medfield Place

Ten Steps to Buying Your Home

Why Use a Realtor?

In dealing with buying your own home it is important to consider the following:

• Do you have the time, energy, experience and resources to find the right home?
• Do you have access to all of the relevant information concerning one of the largest purchases you will make?
• Are you confident in your ability to draft and execute a legally binding Contract of Purchase and Sale?
• Are you comfortable and capable of negotiating the best price for yourself?
• Do you have a firm understanding of all of the stages involved in buying a home?

Read on, and find out about the steps involved in buying a home and how I can help you with this process.

1) Determining Location & Type - The first step involves taking your dreams (and a good dosage of reality) and deciding the location, size, and type of home you want and need.

2) Finding a Real Estate Agent - Buying a home is one of the largest financial investments you will be making, so it is important that you have a real estate professional working for you. When you buy a home you will be entering into a legally binding contract, and a Realtor is professionally trained to create this contract for you, and ensure that your interests are protected. Look for someone who will be comfortable working with, who will answer your questions and help you find a property that meets for specifications.

3) Getting Pre-qualified - It is also important at the beginning of the process that you evaluate what price range you can afford and determine the amount of financing you will require. I can help you with this process by getting some basic information about your income, debts and credit. Finding out how much of a loan you qualify for will also help in determining the type of property to look for. Some lenders will pre-qualify you and guarantee a rate and terms for a set period of time - a great idea to do when rates are on the rise.

4) House Hunting - This is where the fun begins! However, you might find that your initial optimism of finding the right place quickly fading if you do not have access to all of the available information about the current market. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by Myself to find all available properties.

5) Selecting Your Home - Your main job in this whole process is to make the final selection of the right property for you. Emotions run high during this time, and your Realtor can offer you informed objective information about the properties that you are considering. Your Realtor spends their day dealing with all aspects of property and their advice can be invaluable. For instance, information concerning zoning, schools, and the local community can help in your decision making process.

6) Finding a Lawyer/ Notary - It is also important to find a Lawyer or Notary to help in the closing and conveyance of the property. Having a professional lined up ahead of time will help in making the buying process as smooth as possible. I can recommend several Lawyers or Notaries to use.

7) Making an Offer & Negotiating the Deal - Once you have found the right home now is the time to make an Offer to Purchase. There are many aspects involved in making your offer including, but not limited to price, financing, terms, possession date, inclusion and/or exclusion of repairs and fixtures or equipment. You will also want to provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase.

8) Professional Inspection - Once you have negotiated an agreement it is time to complete the evaluation of the property. Depending on the area and property, this could include inspections for leaks, dry rot, asbestos, faulty structure, roof condition, heating systems, oil tanks... just to name a few. I can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property, which your I can provide. The title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities.

9) Setting up Your Mortgage - If you have already pre-qualified with a lender for a mortgage the step will be fairly painless! Remember mortgage interest rates, fees and other terms vary widely and are often open for negotiation. Research what is available by calling several mortgage lenders or using the Internet. I can help you in finding the appropriate lender.

10) Closing - The last step is the closing. Closing involves:

• Transfer of title - arranged by your lawyer and the seller's lawyer
• Transfer of money - deposited to your lawyer's trust account
• Verification of the offer-to-purchase
• Pre-possession walk-through of your new home

10 steps for selling your home

1. Decide when to sell In real estate, timing can influence your home’s selling price. Factors like how quickly you need to sell, whether it’s a buyers or sellers market and seasonality all play a role in your home’s final selling price.
2. Find a REALTOR® who is right for you The REALTOR® who helped you buy your home is a good place to start. They already know your home and they know you, so you’ll be saving time right from the start. Or look for names on “For Sale” signs in your neighbourhood or ask your friends and family. Make sure to interview two or three candidates and choose the one you like best.
3. Sign a Listing Agreement This authorizes your REALTOR® and their brokerage to market and sell your home. It will define the legal relationship between you and the real estate brokerage and also set a time limit for your REALTOR® to sell your home.
4. Determine your home’s asking price The right asking price will attract buyers and pay you a maximum return. Setting too low a price means you could miss out on thousands of dollars. Setting too high a price will scare away buyers. Your goal is to find fair market value.
5. Add some specialists to your team Similar to when you bought your home, it’s essential to have a notary public or a lawyer handle all the various documents that change hands and make sure your best interests are being protected at all times.
6. Prepare your home for sale First impressions matter. Now is the time to see your home through a buyer’s eyes: get ride of the clutter, clean and repair as much as you can, within reason. Remember, weigh the cost of all your improvements versus the potential financial return.
7. Let your REALTOR® do what they do best Your home has never looked so good and now it’s time for your REALTOR® to market it to potential buyers. This happens with a “For Sale” sign, open houses, newspaper ads, a listing on the MLS®, the internet, and, of course, through your REALTORS®’ relationship with other REALTORS®.
8. Prepare your finances Will the buyer “assume” your mortgage or are you “discharging” it? If you’re buying a new home, is your mortgage “portable”? What taxes are involved? These are important questions to ask your REALTOR®, your mortgage lender and your notary public or lawyer.
9. Receive an offer Although your REALTOR® will walk you through the process, be prepared for some stress. You will see every offer since it’s required that your REALTOR® show you every offer that’s submitted. You will have three options: you can accept, you can reject or you can “sign back” or “counter”. Ask your REALTOR® what these terms mean. Happy negotiating!
10. Close the deal You were successful and have drafted a legally binding agreement. Are you done? Not quite yet. Contact your lawyer or notary public, contact your lending institution and consult your REALTOR®. Immediately start satisfying any conditions of the agreement that require action on your part. On closing day, your lawyer or notary public will finalize all the details and give you a cheque for the net proceeds.

What to Expect for 2013

1. Prices will rise

Prices finally bottomed.  They'll go up in 2013.

Prediction is that the prices will rise from 5 percent to 7 percent in 2013.

2. Sales will rise

Industry observers say sales will climb in 2013, buoyed by low interest rates and rising consumer confidence.

Several industry observers predicted that more young people will move out of their parents' homes, triggering increased demand. So will rising prices.

First-time homeowners, who have been sitting on the sidelines waiting for a sign of the bottom, will hear about price increases in their desired neighborhood and rush to become homeowners.

Home buying by investors and flippers will continue to grow since housing provides better returns than other assets.

Move-up buyers, move-down buyers and boomerang buyers (people returning to the market after a foreclosure) also will swell the ranks of homebuyers.

3. Expect (more) rent hikes

2013 will be "a landlord's market."

4. Inventory will rise -- slightly

As prices move up, more sellers will jump into the market.

The supply of homes for sale won't go up much. For one thing, rising demand will keep inventory in check.

Other homeowners either are unwilling or unable to sell – particularly those who bought at the top of the housing market. Some can't sell because they owe more than their homes are worth. Others are holding out for higher prices.

5. Foreclosures will drop

The "shadow inventory" of pre-foreclosures continues to shrink, reducing the risk that the market will be flooded with discounted bank-owned properties.

Lenders are expected to modify more loans and approve more short sales in the year ahead.

6. Money will stay cheap

Mortgage interest rates will rise slightly, but will remain close to historic lows seen throughout 2012, industry observers predicted.

Interest rates on 30-year, fixed-rate loans will rise to 4 percent. Rates could rise a percentage point from this past year, which would keep 30-year rates well below 5 percent. But lending standards are expected to remain tight, so qualifying for home loans will remain tough.

Private lending will become more common.

7. Homebuilding will grow

2013 homebuilding will be to the highest level since 2007.

Some developers complained they couldn't build houses fast enough to meet all the demand in 2012.

Demand is out there for new homes, and it will increase over the next several years.

8. Furniture sales going up

More home sales results in more people buying furniture for their new homes.

That's just one example of how a rebounding housing market will ripple through the economy. As people see home prices go up, they're more willing to spend on home remodeling projects.

9. Commercial real estate remains weak

Happy New Year to Everyone...
Looking forward to a beginning of a New Year!

Thank you for all your support Last Year and Looking forward to working will all of you in the New Year...
We will work so good together!

Saturday December 29 & Sunday December 30 from 1130 to 1pm

@1060 Cardero Street. Priced at $749,000 (price drop from $779,000)

3 Bedrooms and 2 Bathrooms. 1,088 sqft.

Sunday December 30 from 2 to 4pm

@ #2002-1028 Barclay Street. Priced at $898,800

2 Bedrooms and 2 Bathrooms. 1,057 sqft.

& #4002-1028 BARCLAY Street. 1819 sq ft, 2 bedrooms & 3 bathrooms. Priced at $2,288,800.

#4002-1028 Barclay Street

http://lnkd.in/AaYJs8

2013: How Rising Prices Could Boost Housing Demand

blogs.wsj.com

Potential buyers now have something they haven’t had in a long time: urgency. This next year will be the first time since 2006 where prices ended the previous year in positive territory.

 

 

http://blogs.wsj.com/economics/2012/12/14/home-prices-could-jump-9-7-in-2013-j-p-morgan-says/?ljvOeWkjpk27dwx-DNoL1A=1

Home Prices Could Jump 9.7% in 2013, J.P. Morgan Says

blogs.wsj.com

Home-price forecasts for 2013 are on the rise. J.P. Morgan expects U.S. home prices to rise 3.4% in its

4 OPENS THIS WEEKEND COME OUT AND HAVE A LOOK...

Open Houses this weekend!!!

Saturday December 22 & Sunday December 23 from 1130 to 1pm

@1060 Cardero Street. Priced at $749,000 (price drop from $779,000)

3 Bedrooms and 2 Bathrooms. 1,088 sqft.

Saturday December 22 & Sunday December 23 from 2 to 4pm

@ #2002-1028 Barclay Street. Priced at $898,800

2 Bedrooms and 2 Bathrooms. 1,057 sqft.

1060 Cardero Street.

#2002-1028 Barclay Street