Maria Mak- Burnaby Realtors - Metro Vancouver home sales above average in October

Metro Vancouver home sales above average in October

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

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,057 on the Multiple Listing Service® (MLS®) in October 2014. This represents a 14.9 per cent increase compared to the 2,661 sales in October 2013, and a 4.6 per cent increase over the 2,922 sales in September 2014.

Last month’s sales were 16.6 per cent above the 10-year sales average for October.

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

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

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

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

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

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

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

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

Important information

The Real Estate Board of Greater Vancouver is an association representing more than 11,000 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

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Maria Mak. Burnaby Real Estate - preparing for a flood

Many residents and businesses in the Lower Mainland are located in a floodplain - close to or beside local rivers, creeks, or coastlines.

Reduce the chances of flood damage by:

1  Reading material about flood reduction supplied by the local
       municipality.
2  Walking around the home after heavy rainfall to see where water
       is pooling. If water flows toward the home, the owner should get
       professional advice about directing water away from the home.
3  Cleaning gutters and downspouts.
4  Making sure the home’s drain tiles work. The basement will
       flood if tiles are old or plugged and need replacing.
5  Flood proofing the basement or ground floor, which involves
       sealing the foundation.
6  Installing backflow valves on basement floor drains, washing machine drains, toilets and sink drains.
7  Locating the storm sewer on the road. It will look like a large grate and is designed to carry storm related water runoff. If
        it’s plugged with leaves, the owner should phone the local municipal public works department and they will clean it.
8  Buying a sump pump and testing it so it’s ready to be used if needed during heavy rain storms.
9  Contacting the municipality to find out where sand and bags are available should a flood occur.

Maria Mak. Burnaby Real Estate Agents - buying a home

Maria Mak- Burnaby Real Estate Agents - Buying a home.

Homebuying Step by Step: CMHC's Homebuying Step by Step guide is here to make things easier for you by providing the information you need to make a wise homebuying decision. This section provides examples and worksheets that will guide you through the entire homebuying process, from the moment you make the decision to buy your own home to the moment the movers carry the first box through the front door. It couldn't be easier!

In this Section:

• Step 1: Is Homeownership Right for You?
  Buying a home is one of the biggest emotional and financial decisions you'll ever make. Prepare by learning about the process of home buying and the responsibilities of homeownership.
• Step 2: Are You Financially Ready?
  This step guides you through some simple calculations to figure out your current financial situation, and the maximum home price that you should consider.
• Step 3: Which Home is Right for You?
  Once you have a good idea about your finances, you’ll need to think clearly about the home you’d like to buy. You need to think about your current and future housing needs and what characteristics are important to you in a home.
  

• Step 4: The Buying Process
  Before you start searching for a home you need to think about your current and future housing needs and what characteristics are important to you in a home.
• Step 5: Now That You're a Homeowner
  Practical advice for homeowners on their financial responsibilities as well as the importance of home maintenance and renovations.
  
• Words to Know When Buying a Home
  This glossary provides simple yet accurate definitions of certain terms you may encounter in the Homebuying Step by Step guide.
• Worksheets
  These user-friendly checklists and worksheets will help you all throughout the home buying process.

https://www.cmhc-schl.gc.ca/en/co/buho/hostst/index.cfm

Maria Mak.Burnaby Realtors - right time to reduce the PPT

*Home Sense - right time to reduce the PPT*

Each year, the BC Legislature's Select Standing Committee on Finance and Government Services travels throughout BC seeking input about spending and taxation priorities for the upcoming provincial budget.

The Committee reviews and summarizes this information and reports its findings to the Finance Minister, who uses it as input in budget deliberations.

Representatives of the Real Estate Board of Greater Vancouver had the opportunity to make recommendations.

Here is our written submission. (The printer-friendly copy is the full written version that contains a page of income and housing price data for neighbourhoods in the Real Estate Board area.)

BCis on target to balance the 2014/15 budget with a projected surplus of $266 million. This means the time is right to reduce the Property Transfer Tax (PTT).

Reducing the PTT matters to families and anyone working in real estate-related jobs including architecture, construction, home inspection, leasing, brokerage, mortgage lending and legal services.

Real estate plays a vital role in growth, providing jobs and small business opportunities.

Real estate’s contribution to the economy in Greater Vancouver is enormous. In 2013, 28,524 MLS® home sales in the Real Estate Board’s area generated $1.84 billion in economic  pin-offs and created 13,977 jobs. Real estate is the backbone of our communities. Province-wide, the housing sector (construction and real estate) accounts for 25.6% of total economic activity (GDP).

Government is responsive

In 2013, in response to our message, “Help Reduce the Property Transfer Tax", the government made it possible for first-time buyers to buy a home worth up to $475,000 and not pay the PTT. Previously the threshold was $425,000.

Given the projected 2014/15 budget surplus, the government can afford to make changes to the PTT. Continuing to rely on the PTT for a large share of revenue – estimated to be $854 million in 2014/15 – unfairly increases the cost of homes and reduces access for middle- and lower-income buyers.

Who will benefit?

Our communities, including first-time buyers and anyone working in real estate-related jobs will benefit.

Think about when we were younger, landing a first job, buying a modest first home, starting a family and then trading up to a larger home has been a right of passage for generations.

Today, this is possible for fewer and fewer younger British Columbians. The rate of home ownership for 25-34 year olds in BC is now 48.2%. In Ontario it’s 53.8%, in Alberta it’s 59.3% and Canada-wide it’s 52.4%.2

In our Real Estate Board area, the benchmark price of a detached home is $633,500.3 The PTT adds $10,670 to this price given that this home does not qualify for the first-time buyers’ exemption. It’s difficult for first-time buyers to afford this home given that the annual income required is $100,216.4 The average household total income in the Vancouver CMA is $83,666.5

As a consequence, six in 10 first-time buyers are delaying their home purchase, which in turn, significantly dampens economic activity in our neighbourhoods.6

Making adjustments to the PTT would ensure home ownership is more affordable, which in turn is a strategy for a secure and prosperous future.

Recommendations

The PTT is charged at a rate of 1% on the first $200,000 and 2% on the remainder of the home price. We urge the government to:

1. Increase the 1% threshold to $525,000 from $200,000 to modernize the PTT to better reflect the current price of homes. The 2% rate would be applied to the remainder of the home price.

2. Index the 1% threshold to ensure it more accurately reflects housing market changes over time, using Statistics Canada’s New Housing Price Index or the MLS® Home Price Index, and make annual adjustments.

1 Natural Resources 7.7% is comprised of Agriculture, Forestry, Fishing and Hunting at 1.85% and Mining, Quarrying and Oil and Gas Extraction at 5.81%.

2 Statistics Canada 2011 National Household Survey. Home ownership, by province, as a percentage of all households where the primary maintainer is aged 25 to 34 years old.

3 Real Estate Board of Greater Vancouver composite residential benchmark price, as at September 2014.

4 See Footnote D on reverse.

5 Statistics Canada 2011 National Household Survey. Vancouver Census Metropolitan Area (CMA) Average Household Total Income.

6 BMO Home Buying Report, First-time Buyers’ Budgets Increase to $316,100 (Canada-wide) While Rising Prices Cause Delays, BMO,

March 18, 2014.