British Columbia is following Ontario's retreat on the HST, rolling out fresh rebates for new housing that will cushion the tax blow to consumers – but will cost the provincial treasury $80-million.

And another step in that retreat could be in the offing. This morning, Finance Minister Colin Hansen will meet with restaurant industry representatives who will push for an outright exemption from the increasingly controversial sales tax, a move the sector says would cost $700-million.

Under the measures announced yesterday, buyers of new homes in British Columbia won't have to pay the provincial portion of the harmonized sales tax for the first $525,000 of purchase price, up from the previous ceiling of $400,000, pushing the maximum rebate to $26,250 from $20,000. In an e-mail, Mr. Hansen chalked up that move to the industry's lobbying effort and the province's unique housing market, said M.J. Whitemarsh, chief executive officer of the British Columbia Home Builders Association.

Mr. Hansen isn't saying yet if he will give the restaurant industry relief, but he is clearly signalling that any measures will be constrained. British Columbia has all but exhausted the point-of-sale exemptions allowed by Ottawa, meaning that any further offsets to the HST will come straight out of B.C.'s pockets, at a time when the province is saddled with a $2.8-billion deficit.

The Finance Minister is ruling out any new measures that would further tinker with the structure of the HST.

If the restaurant industry gets relief, it will be outside the boundaries of the HST regulations.

Ian Tostenson, president and CEO of the British Columbia Restaurant and Foodservices Association, has said there are several possibilities, including a holiday on provincial liquor taxes, reduced small-business taxes, or even having the province pay part of companies' municipal tax bills.

Yesterday, Mr. Tostenson said he will make the case to the Finance Minister that the restaurant industry will need to resort to widespread layoffs if there is no relief, since it will see little reduction in costs with the new tax, while its customers will face a new provincial levy on dining bills.

Other industries will see costs fall as they are able to pass through the sales tax bill to consumers, a feature that Mr. Hansen says will spur economic efficiency and growth. Economic theory backs him up, but the Liberal government has seen its popular support melt since announcing in the summer that B.C. would harmonize its provincial tax with the federal GST on July 1, 2010.

The Manitoba government decided this week not to jump on the harmonized tax bandwagon, because of concerns that consumers would face higher prices on many everyday goods and services. The New Democratic government conducted an analysis that showed harmonization would cost consumers $400-million.

Saskatchewan Premier Brad Wall also reiterated that he has no plans to make the switch to a harmonized tax.Ontario Premier Dalton McGuinty said he is not concerned that the two Prairie provinces' outright rejection of harmonization will make it a tougher sell for him. Last week, the government gave consumers new relief from the HST, granting an exemption on newspapers and snack foods under $4. But opposition members in Ontario stepped up their efforts to derail the HST following this week's introduction of legislation on the proposed 13-per-cent, value-added tax.

In B.C., the opposition New Democrats also want to scrap the move to the HST, although they have little prospect of doing so. NDP finance critic Bruce Ralston said the changes announced yesterday indicate the intense lobbying effort that the HST has triggered. “Everyone is jockeying for position to save their industry,” he said.

Public transit to be improved

By Games time, public transit around Metro Vancouver will be strengthened to accommodate for the expected increased ridership.

The rapid transit Canada Line, which organizers are counting on to carry 5,400 passengers per hour from downtown Vancouver to Richmond and the airport, will be up and running for extended hours. A 30 per cent increase in SkyTrain cars during peak hours will be implemented and a third SeaBus will be added.

Specific Games-time additions include the availability of 180 extra city buses, additional runs by the West Coast Express train and a free Olympic streetcar that will connect Granville Island with the Canada Line.

Restrictions in Whistler

Navigating to and from Whistler, where the road network is limited and where the overnight population is expected to surge 10 to 20 per cent, will also be a challenge.

Plans to mitigate the influx of visitors to Whistler include the introduction of more buses, changes to parking arrangements and active snow clearing on widely used routes.

The Sea to Sky Highway and Highway 99 in Whistler will also be reconfigured to allow for two northbound lanes during the morning rush and two southbound lanes when needed.

A checkpoint will also be set up north of Squamish on the Sea to Sky Highway to discourage unnecessary car trips into Whistler during peak travel times.

Transportation for the Games will be led by the Olympic and Paralympic Transportation Team, which includes the Vancouver Olympic organizing committee, the City of Vancouver, the Municipality of Whistler, and TransLink, the Greater Vancouver transit authority.

The transportation team will operate a command centre during the Olympics and will provide real-time transportation updates to the public.

Moving into the transitional fall months of September, October and November, Canadians can expect the developing El Niño conditions in the Pacific Ocean to have an impact on the North American weather patterns for the next six to twelve months. The jet stream is forecast to take on more of a zonal west to east pattern this fall, meaning a more rapid flow of systems across the country. Overall, the jet stream will trend further north for the beginning of the season, however as the season progresses, expect it to move south as fall comes to a close. Overall, Canadians can anticipate temperatures from British Columbia to Ontario to be above normal. Near normal precipitation is expected for most of the country with a few pockets of above normal precipitation. Normal temperatures or precipitation are an average based on 30 years of data.

Updated: Thu Sep. 24 2009 06:12:34

The Canadian Press

KELOWNA, B.C. — A new Re/Max real-estate survey says house values have recovered in many major Canadian markets to where they were before the market crashed.

The survey found house values are ahead of record highs set in 2008 in seven of the 11 markets surveyed for the real-estate brokerage network.

The national average price was $312,585, up 0.5 per cent from a year ago.

Re/Max attributed the recovery to low interest rates, pent-up demand and improved affordability.

The survey was based on information from Canada's major urban centres and may not reflect what's happening in smaller markets.

Reasons to Renovate

If you intend on staying in the home you may want to:

• Add extra space to accommodate an expanding family, or simply to add a sense of spaciousness.
• Add rooms for special purposes, such as an office or games room.
• Change the configuration of the house for better flow, ease of use or orientation to sun and views.
• Update and remodel to give the house a fresher, more modern look – this could involve major changes such as taking out walls to enlarge a room, putting in a new kitchen, or installing new wallboards and ceilings. Or it could simply be a matter of painting or wallpapering.
• Restore the house to its original style (while adding modern features in some areas, like the kitchen and bathroom).
• Add value to increase your investment.

If you are renovating to sell, it is likely that you’ll want to give the house an inexpensive makeover to freshen it up and make it more attractive to buyers. For example, repainting, repapering, or changing dated or damaged fixtures, such as a cracked basin in the bathroom.

You need to consider the tastes of potential buyers, which really means keeping everything fairly neutral to appeal to a wider range of people. Not everyone warms to bright feature walls or pink bathtubs.

Renovations that will increase the appeal of your home may include painting the kitchen and bathroom, or putting in some decking to give an indoor-outdoor flow and an increased sense of space or some landscaping.

Don’t spend money that you won’t get back in the sale price. Ask Steve for ideas to increase the house’s appeal, and how much you should spend without overcapitalising

Compliments of CMHC

B.C. real estate sales to keep climbing this year: forecast

Home purchases have doubled since January's near collapse, says economist

Vancouver Sun: Thursday, August 27, 2009 11:13 AM

 

The provincial average price for a home of $451,200 will be one per cent below the 2008 level, and should show a one-per-cent gain to $457,600 in 2010.

Photo Credit: Reuters files,

 

VANCOUVER — British Columbia real estate sales should continue to rise through the remainder of 2009 from last year's market fall, according to the B.C. Real Estate Association's latest forecast.

Home sales have doubled since January's near collapse in sales, association chief economist Cameron Muir said in a news release, and he expects transactions recorded through the Multiple Listing Service to climb some 15 per cent from 2008 to 79,400 units.

Prices, although edging up from their declines through the last half of 2008, will remain below last year's levels before showing slight gains again in 2010, according to Muir's forecast.

The provincial average price for a home of $451,200 will be one per cent below the 2008 level, and should show a one-per-cent gain to $457,600 in 2010.

"After 12 months of significant volatility in B.C.'s housing markets, greater stability is expected through 2010," Muir said.

Economic forecasts continue to indicate that the province's recovery from recession will be slow. Central 1 Credit Union was the latest with its forecast that B.C. will experience below-average growth until 2012.

Muir, however, sees housing as a brighter spot in the economy signaling that "the economy is coming out of recession, with a recovery in the broader economy expected to develop over the next three quarters."

He added that not all regions of the province will experience the recovery in the same way.

Vancouver and Victoria have seen a sharper recovery in sales, Muir noted, while other regions, will return to more balanced conditions at a slower pace.

 

© Copyright (c) The Vancouver Sun

Back on Track!

 

The Greater Vancouver housing market gained further momentum in July with record sales levels and a continued strengthening of home prices. The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 4,114 in July 2009, becoming the highest volume of sales ever recorded within the REBGV for that month, outpacing the 4,023 sales in July 2003, which is the only other year that July sales exceeded the 4,000 mark.

 

Since the beginning of the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 9.2 per cent to $528,821 from $484,211. However, home prices compared to July 2008 levels are down 5 per cent. “Home sales this summer are seasonally higher than normal, which is due in large part to the price correction that has taken place in the last year and low interest rates,” Scott Russell, REBGV president said. “Although well priced listings and lower-to mid-range priced properties remain in the highest demand across Greater Vancouver, recent activity from first-time buyers is beginning to boost demand in the “move-up” segment of the market.”

 

Compliments of REBGV

Sell Your Home Faster!

CMHC’s 2009 Second Quarter Forecast

 

Canada Mortgage and Housing Corporation published the following forecast for the upcoming months:

 

Growth in house prices will slow as the housing market turns more balanced.

 

Existing home sales activity will decrease to 357,800 units this year, but will rebound to 386,100 in 2010 as economic activity becomes more positive across Canada.

 

The Canadian resale market was back into buyers’ market territory by the end of 2008. At present, markets in Canada can be characterized as balanced. For 2009, prices are expected to decrease by 6.8 per cent to $283,100 and remain at that average in 2010.

 

It was also suggested that, as economic struggle continues, multi-family housing will become more popular. Therefore, CMHC estimates that there will be a “positive growth in the construction of multiple-family units”.

 

Another benefit that we are experiencing due to the economic conditions is a drop in mortgage rates. The forecast from CMHC expects rates to remain stable throughout the end of 2009 before gradually increasing in 2010.

 

What does all this mean to prospective home buyers and sellers? While the market is balanced and mortgage rates remain low, now is the perfect time to buy or sell.

 

Quotes compliments of www.cmhc-schl.gc.ca. Check website for more information.

Each time a home changes hands in British Columbia, the transaction generates significant spin-offs, creates jobs and wealth and helps keep our communities growing.

When multiplied by the 24,626 homes that changed hands in the Real Estate Board of Greater Vancouver (REBGV) area in 2008, total spin-offs amount to $1.48 billion and 10,343 jobs.

What accounts for this difference?

What is also interesting is that the dollar amount of spin-offs has been growing each year for Canada as a whole.

 

Canada-wide, using data from 2006 to 2008, CREA/Altus Group estimates a resale transaction Canada-wide generated $46,400 in economic spin-offs. From 2004 to 2006, that same resale transaction generated $32,200 in spin-offs, while from 2002 to 2004, spin-off spending was $24,697.

 

“No matter which numbers you choose to use,” says Muir, “one thing is certain: real estate continues to be a major engine driving our economy.”

 

Compliments of REBGV

http://www.rebgv.org/news-statistics/what-home-sale-worth-economy

Board realtors recorded 4,259 sales through the Multiple Listing Service in June, a 76-per-cent increase from the same month a year ago.

The inventory of unsold homes in the board's area declined 27 per cent to 13,252, compared with the same month a year ago.

“Many people who were reluctant to purchase a home last fall and earlier this year are returning to the market because they see conditions that appeal to their personal and financial needs,” board president Scott Russell said in a news release. “However, the current marketplace is such that buyers are more inclined to walk if they don’t like the terms of an offer.”

The benchmark price for a typical detached home was $701,384 in June, still down 8.4 per cent from the same month a year ago.

The benchmark price is a calculation based on the features of homes most typically sold in that category.

Fraser Valley realtors recorded their fourth busiest June on record racking up 1,982 sales during the month, a 40-per-cent increase from the same month a year ago, the Fraser Valley Real Estate Board reported Friday.

Buyers taking advantage of lower prices helps to partly explain the surge. The benchmark price of a typical detached home was $471,788, which is still down eight per cent from June 2008.

That price, however, is up 1.3 per cent from May when the benchmark was $465,939.

“We’re essentially seeing two markets right now," Paul Penner, president of the Fraser Valley Real Estate Board said in a news release.

"Sellers have the advantage when it comes to more affordable homes, but buyers hold more sway with higher-end properties.”

Copyright (c) The Vancouver Sun 

And This Too Shall Pass

After last years sudden switch from a Seller’s Market to a Buyer’s Market, things are finally starting to even out. Last month, May 2009, we saw a total of 3,524 recorded sales in Greater Vancouver. Comparing this to the 3,002 recorded a year ago, we can see that buyers have finally emerged. If you are a perspective buyer, now is the time to get into the market and find your new home, before prices rise and the market becomes more and more competitive. We are already starting to see multiple offers and increasing list prices. Since the beginning of 2009, benchmark prices have already gone up 4.5% in Greater Vancouver.

 

This is an exciting time for both buyers and sellers. If you are looking to buy, it is time to take advantage of reduced prices, and if you are looking to sell, start preparing your home because the wait for the end of this drought is over.

 

Statistics from Real Estate Board of Greater Vancouver

Pre-approval of a mortgage is when your lender has reviewed all your financial information and has determined the maximum amount of money you can borrow. The advantages to pre-approval include:

• You know how much you can borrow, so you don't waste time looking at properties you can't afford.
• You don't have to worry about rising interest rates while shopping for a home, as usually the mortgage broker will guarantee the current interest rate for 60 - 90 days.
• You have an edge when you make an offer, because the seller knows you're more likely to get a loan.
• You save time when you apply for your loan because you've already assembled your paperwork.

Compliments of Realtylink.ca

Following five years of unprecedented growth in home values in Greater Vancouver, home prices began to moderate in 2008. Last spring it became apparent that a more buyerfriendly real estate market was afoot. In May, home price reductions began to occur across the Lower Mainland. Over the last 12 months, home prices, as calculated by the MLS®Link Housing Price Index , have declined 14 per cent for detached and condominium properties in Greater Vancouver, while townhomes have come down nine per cent in price. These figures provide a broad view of home prices in the region; however, they fail to explain what the changes means to the individual from a financial perspective.

 

Home prices and interest rates have both declined in Greater Vancouver. Together, these trends amount to a significant reduction in monthly payment costs on a new mortgage compared to last year. When mortgage rates fall, like we’re seeing today, from approximately five per cent to four per cent, this does not just represent a one per cent decline but a 20 per cent reduction in the amount of interest paid over the course of a mortgage. The typical single-family detached home in Greater Vancouver in March 2008 was $764,000. With a 25 per cent down payment and a 5.7 per cent rate of interest, which was the five-year, fixed term interest rate in March 2008, the monthly payment on a 30-year mortgage was $3,301.58 one year ago.

 

A typical home today in Greater Vancouver costs $653,000 and the current five-year fixed interest is 4.29 per cent. Today that same monthly payment on a 30-year mortgage with a 25 per cent down payment is $2,409.90. This amounts to a total savings of $891.68 each month. These are real dollar savings that have materialized in our housing market within the last 12 months.

 

Compliments of realtorlink.ca

Sellers are reluctant to accept the very first offer in the hopes that "something better" will come along. This can be a costly error. Statistics show that, in a normal market, the "best" offer for your home will come within the first 30 days of being listed. After that time, the price you can expect to receive for your home, will decline.

When you're buying a home, the location is just as important as the home itself. It impacts your quality of life and the resale value of your home. Most REALTORS® agree that the first step in home-hunting should be narrowing your search to a specific neighbourhood.

First, look at your lifestyle and future plans. Will you need schools or public transit nearby? What about green spaces or recreational facilities? What's the maximum daily commute you're willing to make? Think about your family and friends – do you want to live close to them?

Once you've determined your needs, Steve can source information about different neighbourhoods, pricing trends and community information.

Spend time researching neighbourhoods that interest you. Talk to the residents and merchants. Go for a walk in the local park. Have coffee in the cafés and try out one or two restaurants. Read the community newspaper to get an idea of community activities, issues and concerns.

Zoning and community planning.

Safety and noise.

Schools.

Drop by the local schools and ask about class sizes, programs, activities and parental involvement. If schools are crowded, find out if there are plans for expansion. Even if you don't have children, the quality of local schools affects the value of your home.

With Steve’s assistance and your own research efforts, you're sure to end up in a neighbourhood that's right for you.

 

http://www.realtylink.org/