House prices continue to surge in Greater Vancouver

METRO VANCOUVER - House prices continue to surge in the greater Vancouver area, where the price of a typical single-family home has risen by 20 per cent in the last year, hitting $1.2 million in October.

The latest housing price index from the Canadian Real Estate Association shows a 15.33-per-cent jump in the prices of all real estate types in the region between October 2014 and last month. The average sale price of a detached home in Vancouver nearly doubled the national index price of $585,800.

Price gains were slightly more modest for condos, but greater Vancouver still saw the largest jump in prices in the country at 11.39 per cent. A typical apartment sold for $425,800 last month.

Gregory Klump, the CREA’s chief economist, predicts that prices for single-family homes in urban B.C. and Ontario will continue to rise more steeply than those of condos for the foreseeable future.

“The balance between supply and demand is generally tighter for single detached homes than it is for condo apartments, and that’s unlikely to change anytime soon,” he said in a press release.

Sale prices in the Toronto and Vancouver real estate markets continue to outpace those in the rest of the country, pushing the national average sale price to an 8.3-per-cent increase in the last year. Prices in the remainder of Canada rose by just 2.5 per cent in the year leading up to October.

BMO chief economist Doug Porter said the housing market has split into three groups, with Toronto and Vancouver too hot for comfort, the Prairies hit by the sliding price of oil and a middle ground which includes places like Ottawa and Montreal.

Porter described Vancouver’s 19.3-per-cent year-over-year gain in the number of sales out of this world.

"If anything, October saw an even greater divergence of Vancouver from the rest of the country (and perhaps planet Earth)," he wrote.

Across the country, the number of home sales rose by 1.8 per cent from September to October of this year, hitting the second-highest monthly level in close to six years, according to the CREA.

Calgary, Edmonton, Saskatoon and Regina all posted double-digit sales declines in October. Calgary's housing sales are down 36.4 per cent from a year earlier.

"The renewed sag in oil in recent months looks to have triggered a renewed weakening in housing markets across much of Alberta and Saskatchewan," Porter said.

Copyright (c) Vancouver Sun

Maria Mak - Burnaby REALTOR®

Maria Mak. Burnaby REALTOR^®. Metro Vancouver Real Estate Agent

 

My name is Maria Mak 麥福玲, a Burnaby REALTOR® / Metro Vancouver Real Estate Agent with Sutton Centre Realty. 

  

I approach real estate the same way I approach my art...with passion! When it comes to serving my clients, I always come with a big smile and, most importantly, a big heart!

Contact Maria Mak and her elite team @ Sutton Centre Realty or visit her website @ www.mariamak.com. Thank you!

Maria Mak - Metro Vancouver REALTOR® - Buying costs

If you’ve decided to buy a home, it’s important to go into the process knowing all of the costs involved beyond the asking price of the property.

Here’s an overview of costs involved.

Buying costs

Mortgage application

Lenders may charge a mortgage application fee, which will vary depending on the lending institution.

Mortgage insurance

The federal government requires high-ratio mortgages (with less than 20% down payment) to be insured against default. The cost ranges between 1.25 to 3.75 per cent of the mortgage amount which is added to the mortgage principal.

Appraisal fees

Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender will cover this cost, if not, you are responsible. The fee ranges and is typically as much as $300.

Land survey fees

Lenders may require a survey of the property. Survey costs vary.

Home inspection fees

A home inspection is a report on the condition of the home that can alert you to any potential issues such as structural and moisture problems, as well as electrical, plumbing, roofing and insulation. Fees can range from $500 - $700 depending on the size of the home and the complexity of the inspection. Some inspectors have surcharges for a secondary suite, a crawlspace, over even an older home.

Goods and Services Tax (GST)

A GST rebate equivalent to 36% of the GST paid is available for new homes priced up to $350,000 and a partial rebate on new homes priced up to $450,000.

Buyers will also pay the GST if payable on services such as appraisals and home inspections and survey fees.

Provincial Sales Tax

The PST is generally not payable on services except for legal and notary fees.  Both the GST and PST are paid on legal and notary fees.

2% BC Transition Tax

This is a new tax coming into effect on April 1, 2013. It applies to the sale of new residential homes that are 10% or more complete on April 1, 2013, with ownership or possession occurring on or after April 1, 2013 and before April 1, 2015.

Property Transfer Tax

Home buyers in BC pay a provincial Property Transfer Tax (PTT) when they buy a home. The tax is charged at a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder.

First-time home buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $475,000. There is a proportional exemption for between $475,000 and $500,000. At $500,000 and above the rebate is nil. Click here for more cost saving programs.

Property taxes

Some lenders require property buyers to add property tax installments to monthly mortgage payments.

Pre-paid property taxes or utility bills

A buyer typically is required to reimburse the seller for any prepayments.

Mortgage life insurance

If the owner dies, this type of insurance will pay off the balance owing on their mortgage.

Fire and liability insurance

Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.

Home insurance

Buyers will a mortgage will be required to buy home insurance. To be safe, make the insurance effective on the earlier of either the completion date or the date that you pay the balance of the funds in trust. 

Most lenders also require property buyers to carry fire and extended coverage insurance and liability insurance.

Legal or Notary Public fees

Legal or notary public fees and expenses will likely apply to assist with drafting documents and ensuring the title of the home is transferred properly and without incident. 

Moving fees

Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.

Maria Mak - Burnaby REALTOR® - Selling costs

REALTORS® fees or commissions vary. Compensation is always agreed to beforehand between you and your REALTOR®. There is no set commission rate in the real estate profession, and any fee or commission paid depends on the services provided by your REALTOR®, which can vary significantly depending on your needs as a client or the business model used by the REALTOR®.

When is the commission or fee payable?

The Standard Multiple Listing Contract provides that the fee or commission is payable on the earlier of the following:

• completion date under the Contract of Purchase and Sale; or
• the actual date that the sale completes.

 

The GST

GST applies to REALTOR® fees and other services. 

Other

Don’t forget to ask your REALTOR® about these costs when calculating the total cost of selling your home:

• Adjustments, may include property tax adjustments
• Final maintenance and utility costs
• Lawyer or notary fees and expenses – attending to execution of documents
• Costs of clearing the title, including:
  • Discharge fees charged by encumbrance holders
  • Pre-payment penalties
• Insurance – should maintain until the latter of either the date when you receive the proceeds of sale or when you vacate the property
• Home improvements, staging
• Real estate commission fee
• Moving fees