Market Updates

There are currently 22 blog entries related to this category.


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It's not just Vancouver; Chinese buying drying up in Seattle too!

We knew there was going to be a sharp turn in the market coming into 2018 and now the numbers reflect it: the Real Estate Board of Greater Vancouver (REBGV) has just reported that July’s residential housing sales in Metro Vancouver reached their lowest levels for that month since the year 2000. Without a doubt, this has something to do with the Foreign Buyers Tax and the Additional Property Transfer Tax for Foreign Nationals. But what you probably didn't know is that our friends South of the border are experiencing the same cool down in their housing market.

Seattle has been one of the hottest markets in America and one of the greatest

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We wanted to let you know about a new real estate rule that came into effect last Friday, June 15 that will affect the way you work with a realtor. Limited Dual Agency will no longer be allowed. What is "limited dual agency"? And what impact will this have on you? Keep reading to find out. 

Limited Dual Agency

In the very recent past, real estate agents were able to represent both the buyer and the seller. Example: if a realtor's client was interested in buying a property that was listed by the same Realtor. The "limited dual agency" would require that the Realtor sign an agreement, where he/she is bound by contract to act impartially on behalf of both the buyer and the seller. Although this works in theory, clients are at the mercy of

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For those new to our blog: we had a previous blog post about the effects of new lending rules and the stress test that came into effect January 1st. As a result, the market is officially slowing down and we predict it will continue to stay this way for the next little while (more on these stats in a separate post later).

A slowing market means the banks will have to "up" their strategy on getting new customers and retaining current customers. We have seen this with BMO (Bank of Montreal) earlier in May, which discounted its variable mortgage rate to 2.45 per cent until the end of the month. TD has now followed suit as competition rises! TD is also lowering its five-year variable rate to 2.45 per cent (1.15 per cent lower than the TD Mortgage Prime

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    There were 4770 detached homes listed for sale in the Greater Vancouver area last month (February) and only 13% (621 homes) sold! The market seems to be entering buyers' territory, giving buyers a chance to buy their dream home. But what does this mean for sellers? What if you need to sell your home right away? You very likely loved your home and want to see it do well. To ensure a transaction and maximize your profit from the sale, here are a few pointers for today's Vancouver market.   

PRICING IS EVERYTHING

The most common pitfall of a home lingering on the market is overpricing. It's important to price your home just right - there's a fine line between undervaluing your home and pricing it above buyers' expectations. Find out from…
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Multiple Offers on Condominiums and Townhouses the "New Norm"

Many condos jumped 25% or more year-over-year in 2017 and that strength is continuing in early 2018. “Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm," says Jill Oudil, Real Estate Board of Great Vancouver (REBGV) president. What does this mean for first-time home buyers or those who are trying to get into the market? 

Knowledge

Know exactly how much you can afford or how high you can go; this includes being pre-approved for a mortgage so it shows the seller you are serious about the offer you are making. Research the market and know exactly what is within your budget.

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Declaration Due By February 2, 2018 March 5, 2018 

Only 1 in 10 homeowners in the City of Vancouver submitted their declaration form so the city has decided to extend the deadline for one month. If you live in the City of Vancouver, have you submitted your Empty Homes Declaration Form yet? We've provided the link below for quick reference on how to submit the form. Even if your home is occupied or is your primary residence, you are still required to submit the declaration. Otherwise, the city will assume that your home is empty. Submit before the new deadline! 

Why and How? 

According to the Canada Mortgage and Housing Corporation, the vacancy rate in Vancouver remains below 1% (0.9%) as of a report that was released on November 28, 2017.

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Goodbye 2017

Let's just dive right into it! 2017 was like sailing uncharted waters. 2015 and 2016 had some of the busiest activity we've seen in the Vancouver market since we've been in the real estate business but as soon as 2017 came around, it was clear that the tides had turned and things were not going to be as easy. The Greater Vancouver Real Estate Board (www.rebgv.org) - link to the article below - reported that there was a 9.9% decrease in activity compared to 2016 and a 15% decrease in activity compared to 2015. We've mentioned in a previous post that there were a few contributing factors to this decrease in 2017: (1) surprise interest rate early in the year; (2) continued drop in offshore money/investment; (3) bank tightening and

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The government announced new mortgage rules, including a stress test for borrowers last week, effective January 1. The stress test is designed to simulate a borrower's financial situation by assuming they would have to pay back the loan at the posted average — not whatever deal they were able to negotiate. So under OSFI's new rules, borrowers would be stress tested at either the 5-year average posted rate, or 2% higher than their actual mortgage rate — whichever one is higher.

So what does this all mean? Regardless of whether you have 20% down, you will have to qualify for a mortgage under the new stress test. If you are thinking about buying, especially as a new homebuyer, please take these new lending rules into consideration. Unless you have an

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We recently sent out a Market Update to our clients as we have become quite concerned about some of the stats and activity lately. We thought we'd also post this update for all our readers out there so you can also be informed, especially if you're thinking about buying or selling.  

SUPPLY > DEMAND 

Active listings in Burnaby have now exceeded 500 for the first time in over 2 years. Sales have plunged in the last 30-60 days after solid activity in March and April. There have only been 18 sales of detached homes in South Burnaby in the last 30 days and only 2 of those sales were over $2 million - highest was $2.8. By comparison in the 30 day period prior to that: 41 homes sold and 10 homes sold over $2 million.  

We feel…
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This really caught my eye today:

In March 2017, not one house in Eastside Vancouver sold over 3 million. How many are listed for over 3 million? -- 72 altogether. And the 2,250-3 million price range didn't fare a lot better with only 9 sales and over 180 listings for about a 5% sell rate. That's extreme buyer's market territory. We predict continued pressure on the higher end of the detached market to intensify as we move into summer.

The good news is homes under 1,750,000 are selling well.

 

 

 

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