Original article HERE

The traditional way of buying and selling in Canada has its limitations. You are only given one way to buy or sell a house. In a real estate economy that had previously only seen auctions as distressed property sales, it’s an unfamiliar system to many Canadians. But with over 125 years of proven success around the world – and growing popularity in the USA – auctions are evolving in the minds of Vancouverites as a successful, practiced and proven method of sale for all types of homes, from your everyday condo to luxury estates.

The best part about auctions is that they work well in both cold and hot markets, and benefit both buyers and sellers. In a slow or cooling market, the auction gives sellers another competitive way to stand out, and the process sets a clear timeline of sale and ensures the highest true market value of the home.

The same goes for a hot or rising market: you don’t want to sell for too little, so you let the competition bid up the price.

In both cases, buyers have an opportunity to negotiate terms and conditions prior to bidding, and to see how all other interested bidders value the property. It’s transparent, clear and equitable.

Here are some tips for both selling and buying a home via auction.

Selling at Auction

As a seller, the traditional pricing process can sometimes feel like a guessing game. How do you know the right price? What if your list price is too high? What if no one is interested? What if your list price is too low?

At auction, the buyers’ focus is shifted from price to value, as many auction properties are simply listed with no price at all.

The terms, conditions and property information take centre stage and negotiation around this is dealt with in an orderly fashion. The buyer must complete all due diligence before auction day, and the home is readily made available with a generous timeline – not the four or five days that many MLS® listings are exposed to the market for.

Once all interested buyers have individually agreed their terms with the seller, they register to bid at auction, and then it’s only price that remains to be established. Sellers know that all registered bidders are happy with the terms and the home, and all buyers know that whatever terms they have already negotiated with the seller are acceptable and that they are now completely qualified and ready to bid and to buy.

As a seller, the key to successfully using the auction process is to understand that when selling real estate, it’s never you or your agent that sets the selling price of your home; it’s the buying public that sets the true market value. That said, you can set a reserve price; if the bidding doesn’t reach your minimum, you’re under no obligation to sell.

At the end of the day, auctions don’t always result in a sale before auction or on auction day. This doesn’t mean your property or the process has failed; it has taught you exactly how much buyersaren’t willing to pay for your home. Your property’s reputation remains intact because you haven’t advertised your list price, and it’s a win-win situation because you can now go to market as a conventional listing, armed with a tremendous amount of information about the true perceived market value of your home.

Buying at Auction

As buyers, the auction process is a beautifully transparent and equitable process.

Firstly, there is more clarity surrounding the sellers’ desired terms. You will know the deposit, terms of sale, and closing timeline prior to even making an offer or bidding. All reports and disclosures – often reviewed by the buyer during the subject removal period – have been offered in advance by the seller. You can even submit offers on an auction property prior to auction, and the seller may accept your offer then and there. If your offer isn’t enough to “stop the show”, you simply register to bid at auction and see if your budget will allow you to make the purchase.

At auction, bids are called in a transparent environment and you see exactly how much money it will take to be the highest bid instead of wondering why your offer wasn’t accepted. If other bidders surpass the amount you’re willing to pay, you’re under no obligation to keep bidding, and while you may walk away disappointed, you’ll never leave wondering what just happened. You will also never blindly overpay.

In short, an auction is simply another way in which to transact real estate, and both buyers and sellers can benefit from the process. Auctions of all types of homes will see an increase in popularity in Vancouver in the years to come, as more of the public come to appreciate its simple effectiveness as a proven method to buy or sell a home. 

Original Article HERE

In early October, there was an affordable housing event hosted by the Kehilla Residential Program that discussed affordable housing and overall trends in the Canadian residential housing market. Dr. Frank Clayton, a noted housing economist at Ryerson University, proclaimed that the government essentially wants to make building suburban single-detached housing illegal in the Greater Toronto Area.

ACH-DP VIA GETTY IMAGES

Environmentalists are in favour of such a ban, as they want to preserve farmland and reduce commuting. Many municipalities struggle to fund the short- and long-term infrastructure costs required to service many of these new communities. Despite the opposition, buyers continue to flock to inexpensive new low-rise subdivisions far from employment centres.

In our latest Market Manuscript report, we asked urban planners what could be done to keep those buyers local, and prevent them from buying and/or moving elsewhere. Over half of the respondents indicated that governments should provide incentives for developers to build family-size condominiums. Sales of larger three-bedroom condos tend to be much slower than smaller units, and developers offer them less frequently as a result. New apartment units can be very expensive as well, due to high land, construction and financing costs. According to the latest census data, there were approximately 416,250 households in 2016 that own condominium apartments in Canada that are five storeys or taller; just 11 per cent of those units are occupied by families with children.

Many young couples currently living in high-rise buildings that are looking to start a family plan to move to a single-family house once they have children. The question remains as to whether there are enough homes to accommodate them, as the demographic clog that are the Baby Boomers will continue to occupy the most desirable ground-related homes for years to come. In addition, the Canadian population grew by nearly 450,000 people over the past year based on estimates from Statistics Canada, the highest level since the late 1980s. If we continue to add more people, but don't build new suburban housing, young families will have no choice but to live in vertical communities (unless they outbid others for a low-rise home, increasing their debt burden and further driving up house prices).

Should the government make financial incentives available to condominium or rental apartment developers to build larger units and encourage more families in high-rise towers? Is it smart to push families to high-density housing, even though a high percentage of future buyers don't desire it? Would it even help subdue the domestic housing crisis?

GETTY IMAGES/ALL CANADA PHOTOS

If a developer's apartment proposal has a certain percentage of larger units, a municipality could waive the application or building permit fees, they could reduce development charges, they could fast-track zoning approvals or support a much taller building. Perhaps the incentives could target the buyer instead of the builder: no property taxes for families in larger condos for the first five years after completion, or a direct rental subsidy to families that are leasing those suites.

Alternatively, the province could provide low-interest loans to developers for construction financing, or agree in advance to buy the larger units during pre-construction to ensure the developer is not stuck with unsold inventory. The city could buy up space in a new building to provide low-cost daycare to the residents, which is another major financial impediment for families in downtown locations.

If it was guaranteed that these units would be used by local families, would you support your tax dollars being used to boost the supply of family sized condos?

Original Article HERE

The Bank of Canada has decided to keep its benchmark interest rate steady at 1 per cent.

The bank's rate, officially known as the target for the overnight rate, has a large impact on the rates that retail banks offer consumers on savings accounts and loans.

The bank has already hiked its rate twice this year — once in July and then again last month.

Those moves came amid signs that Canada's economy was heating up, but since then economic indicators have been more subdued, which helps to explain the bank's cautious tone.

"The current stance of monetary policy is appropriate," the bank said in announcing its decision. "While less monetary policy stimulus will likely be required over time, [the bank] will be cautious in making future adjustments to the policy rate."

Aubrey Basdeo, the head of fixed income at BlackRock Canada, said that word — "cautious" — could be just the right strategy. "They're trying to have a very measured approach in terms of removing stimulus," he said.

None of the economists polled by Bloomberg were expecting the bank to move its rate. But currency traders were caught a little by surprise — the Canadian dollar lost almost a full cent from where it was before the decision, changing hands at 78.15 cents US after the bank's decision came out.

"The Bank of Canada shifted to a significantly more cautious tone on interest rates Wednesday, prompting a sharp descent by the Canadian dollar," said Don Curren, strategist at Cambridge Global Payments, "and perhaps presaging more weakness in the currency as expectations about … monetary policy evolve."

Along with its rate decision, the bank also released its Monetary Policy Report, which comes out four times a year and provides a deeper dive into the bank's line of thinking. 

The bank said it expects inflation to rise to two per cent by the end of next year — a little later than expected, because of strength in the Canadian dollar.

According to the latest MPR, the bank expects Canada's economy to expand by 3.1 per cent in 2017, 2.1 per cent in 2018 and 1.5 per cent in 2019. The figure for next year is slightly better than the bank was forecasting three months ago, but the 2019 figure is a little worse.

One of the main reasons for that slight downgrade is a "shift toward protectionist trade policies" and "uncertainty around the outcome of the North American Free Trade Agreement (NAFTA) renegotiations," the bank said in its MPR.

The uncertainty around NAFTA  alone could be enough to explain the bank's caution.

"As things stand today," TD Bank economist Brian DePratto said, "it appears that the urgency to increase rates has faded."

While growth of just 1.5 per cent two years from now isn't an optimistic view, forecasting that far into the future always has to come with a grain of salt, Blackrock's Basdeo said.

BlackRock is slightly more optimistic than the bank, forecasting growth of 2.5 per cent in 2018.

"By all accounts the economy does look reasonably healthy," he said. "We think growth of 2.5 per cent is pretty darn good at this stage."

Links: 

• How a central bank rate hike affects you
• Interest rates are about to go up — no, for real this time

Original article HERE

All mortgage applicants will have to pass a “stress test” on their qualifying income – no matter how high their down payment – from January 1, the Office of the Superintendent of Financial Institutions (OFSI) confirmed October 17.

The stress test was introduced last fall to all applicants of insured mortgages (those with less than 20% down), but has now been extended to all mortgage applicants including uninsured borrowers, as that group comprises a larger segment of the mortgage market. The test requires an applicant’s income to qualify them for mortgage repayments at the Bank of Canada’s five-year posted rate – higher than the discounted rate they would pay in reality, and currently 4.89% – to create a buffer against future rate rises and any financial difficulties.

The move is said by mortgage professionals to reduce Canadians’ home-purchasing power by around 20% as the higher interest rate will reduce the maximum mortgage that buyers will be able to borrow.

Mortgage professionals widely criticized the new policy as making it harder for buyers to enter an already challenging market, but opinions seem to differ widely on the reasons behind the new policy.

Michael Lloyd, team leader for Dominion Lending Centres (DLC) Canadian Mortgage Experts, told Mortgage Broker News that he thinks the feds’ true aim is to lower high housing prices in Vancouver and Toronto.

“It certainly seems that way,” Lloyd told Mortgage Broker News. “They don’t have any room to raise rates, so it seems like the only other options they can do is make it tougher for people to qualify for mortgages.”

However, Lloyd’s DLC colleague Dustan Woodhouse, a mortgage broker and coach for Dominion Lending Centres, disagrees with this assessment. When asked whether cooling hot housing markets was one of OFSI’s goals, he told REW.ca, “I don’t think that’s the case, nor do I think that’s the premise [for this policy]. I spent some time in Ottawa talking to senior government members about why. Why, why, why? And OSFI’s mandate is the stability of the Canadian banking system. Period, full stop. They are not worried about the consumer, they are not worried about condo prices in Vancouver. They are looking at the banking system, and finding cause for concern in the stats on household debt numbers (which I think you really have to look hard to find cause for concern in those numbers), but they feel these steps are worth taking to preserve the stability of the banking system.”

Woodhouse added, “This [stress test] will mean a reduction in the amount of mortgage money available to a buyer of about 20%. So if you’re looking at $500K homes, you’re being told, well sorry, now you’re looking at $400,000. That’s a very significant drop... And in this next round of changes… this is for someone with a large down payment, impeccable credit, clearly documented income… And we’re saying all this in the face of rising home prices. So it seems odd that the government is handicapping Canadians in the way that they are.”

Public policy think tank the Fraser Institute last week released a report stating that the new rules will do “more harm than good” and are “unnecessary” for the Canadian banking system.

Original report HERE

As the oldest millennials enter their 30s, more and more are entering the housing market. In fact, according to a 2015 report, peak levels of millennials will be making housing decisions in the next five years, including the decision to buy. Although some of their ‘must haves’ are the same as those of generations past—such as ample storage and updated bathrooms—they also have a few new items on their list. If you’re thinking of selling your home in the next few years, here are five things that today’s homebuyers are looking for.

1. Open Kitchen

As part of an overall trend away from rigidly compartmentalized floor plans, there has been a move in recent years toward the open kitchen. Many homebuyers are now opting for kitchens that flow seamlessly into other spaces, as opposed to formal dining rooms, so that they can cook, socialize and watch television all at the same time. While a modern kitchen has always been on many homebuyers’ wish lists, it now has to have an open concept as well.

2. Office Space

As working from home becomes increasingly common, working from the kitchen table no longer cuts it. Many homebuyers are now seeking a designated office space that allows them to conduct business as usual, away from household distractions. Although an extra room is often sought out by growing families, it is becoming increasingly popular among professional couples that are looking to make a living from home.

3. Low Maintenance

People are busier than ever nowadays, meaning they have less time to spend keeping up with their homes. As a result, more and more buyers are looking for turnkey homes that require little or no maintenance. That’s why low maintenance materials, such as hardwood floors and granite countertops, are an increasingly popular choice. Not only do they look modern, they are easy to wipe up and mop down, which is especially convenient for families with young children.

4. Outdoor Living

Perhaps a side effect of social media platforms like Pinterest and Instagram, more and more homebuyers are seeking functional outdoor living spaces. Long gone are the days of a simple patio set and umbrella—today’s homebuyers want outdoor fireplaces, comfy lounge chairs and a hammock where they can take a Sunday afternoon nap. This is as true for those with mild weather year-round as it is for those who just want to make the most of those few precious summer months.

5. Energy Efficiency

An increasing focus on environmental sustainability, as well as rising energy costs, has many modern homebuyers gravitating toward green homes. Although it is not the most important factor when selecting a home, energy efficient features are certainly a welcome bonus for this environmentally conscious generation. These features don’t have to be elaborate either—they can be as simple as energy efficient appliances or double-paned windows.

If you’re thinking about selling your home in the foreseeable future, it is important to keep in mind what the new generation of homebuyers is looking for. Whether you plan to do some renovations or simply stage your home to fit more modern tastes, keeping these 5 things in mind can help you fetch a higher price when your home finally sells!

Original Articles HERE

After going through a divorce and hearing the struggles of one of his co-workers he decided to finally go through with an idea he had had for a long time. Through this plan he is enabling those unable to come up with a down payment to become home owners. 

See the CTV article below for details. 

A North Vancouver, B.C. developer is offering a rent-to-own program for multimillion-dollar homes as a way to help would-be buyers get in to Canada's most expensive real estate market.

Ray Vesely, CEO of Apex Western Homes, allows those interested to lock into a five-year lease with five per cent down. He explains the deal as similar to a traditional home purchase, but with five years to "close."

A portion of the buyer's rent each month goes toward their future purchase, Vesely said. The buyer has the option to purchase the home between one and five years at the rate locked in on the date the agreement is made. If its value increases, the buyer keeps the market gains.

Rent is higher than a traditional lease, but the money goes to building up a down payment to secure a mortgage in the future. When the renter decides to exercise the "buy" option, they apply for a mortgage and use the equity already built up in the home.

He came up with the idea following his own experience after a divorce, but was also inspired by his staff members' struggles.

"I try to come up with creative ways to help them get a place… I've been thinking about this program for a while," Vesely said Thursday.

The rent-to-own option is meant to help those who want to buy their own place, but are unable to come up with a down payment.

The minimum down payment in Canada is five per cent of the first $500,000, but those buying a home for $1 million or more are required to have 20 per cent. In a market where the benchmark detached home price was $1,617,300 last month, down payments can easily exceed $200,000.

Vesely showed CTV News one of the homes that could be rented to own: a 3,800-sq.-ft. house on MacKay Avenue with four bedrooms, three bathrooms and a legal two-bedroom basement suite. The home was appraised at $2.3 million.

The monthly rent for the MacKay Avenue home is listedat $10,000 online, but those on a rent-to-own contract would be able to live in the basement and rent out the house or vice versa to help with the payments, Vesely said.

Buyers also defer paying GST and property transfer taxes until they exercise the "buy" option.

And the company is marketing the rent-to-own option to foreign buyers as a way to avoid the 15 per cent transfer tax imposed on all foreign nationals or corporations purchasing property in Metro Vancouver.

However, Vesely says the offer is only available to those who are approved for permanent residency status before buying.

B.C.'s finance minister says rent-to-own leases are legal, but that the ministry will be taking a closer look at the tax policy.

"We're very serious about ending tax loopholes and finding those tax loopholes, so I'm very concerned and we'll be investigating," Carole James told CTV.

Vesely said he's already spoken with the ministry and was told what he's offering is permitted.

"Really it's targeting guys like the tech community that are trying to come in. They actually have well-paying jobs, it's just hard to save up for the down payment," he said.

He added that while his program is generating interest, no one has taken him up on his offer so far.

Currently the program is only offered on homes in North Vancouver, but he said he's thinking of expanding into the condo market.

Original article HERE

A recent report from Royal Bank of Canada painted a scary picture of home affordability — it's the worst it's been in 27 years nationwide, and in Toronto, it's the worst on record.

But all this talk about declining affordability masks the reality of today's market: It has rarely, if ever, been cheaper to take out a mortgage.

Even with the Bank of Canada hiking rates twice this past summer, rates remain near historic lows, and many lenders are offering fixed-rate mortgages at around 3 per cent.

What this means is that, despite record-high house prices in many markets, there are actually many places where you can afford a home today on a modest income. (If the Bank of Canada keeps hiking rates, that may not be the case for long.)

Using Ratehub's mortgage affordability calculator, we determined that a household income of $50,000 a year will buy you a house of up $364,360, assuming a 3-per-cent mortgage rate, a 30-year amortization period and a 20-per-cent down payment.

That's enough to buy an average home in numerous markets. Here they are. (Note: This is a list only of major Canadian metro areas. Plenty of smaller cities, including Thunder Bay, Saguenay and Saint John are also affordable for the $50,000 crowd.)

Montreal

PAWEL.GAUL VIA GETTY IMAGES

Average house price (Aug. 2017): $374,333

Montreal's average house price has moved slightly out of range for someone earning $50,000 a year, but given how close it is, we've added the city to the list anyway. Montreal is also enjoying some record-low unemployment rates, so this may be a good time to take a second look at Canada's second-largest city.

Saskatoon

GETTY IMAGES/ISTOCKPHOTO

Average house price (Aug. 2017): $329,654

Saskatoon's economy is struggling in the wake of the oil price crash, and its unemployment rate is above 8 per cent, among the highest in the country. All the same, if you have a job here, odds are good you can afford to own a home.

Regina

BENKRUT

Average house price (Aug. 2017): $328,586

With an unemployment rate around 5 per cent, Regina is faring much better than its cousin Saskatoon. Despite this, house prices are very similar in the two cities, and Regina remains a relatively affordable city for those earning $50,000 or more.

Winnipeg

MYSTICENERGY VIA GETTY IMAGES

Average house price (Aug. 2017): $297,897

Winnipeg's housing market has been famously affordable for a city its size for some time now, and with the city's economy humming along nicely these days, it's a fairly easy place to buy a home.

Halifax

SHAUNL VIA GETTY IMAGES

Average house price (Aug. 2017): $284,037

Halifax has surprisingly expensive rental housing, given the level of house prices in the area. And with an average price below $300,000, the argument for buying a home may be stronger here than anywhere else.

Quebec City

ONFOKUS

Average house price (Aug. 2017): $266,072

Beautiful Quebec City is also beautifully affordable, with an average house price that's roughly one-third of Toronto's. If francophone culture is for you, and if you can handle some fairly sharp winters, this could be the place to buy a home.

BIG CAVEAT: All the above estimates of affordable cities will be instantly wrong if the federal government goes through with plans to tighten mortgage rules this fall.

The country's financial regulator, OSFI, has proposed a new rule that would require borrowers of uninsured mortgages to qualify at a rate two percentage points higher than the one being offered. (OSFI introduced a similar rule for insured mortgages last year.)

According to Ratehub, the new rule would shave 21 per cent off of the purchasing power of homebuyers.

In our scenario, a $50,000 annual income would afford you a house of only $297,915 with the new rules in place. That would move average homes in Montreal, Regina and Saskatoon out of affordable range for those earning $50,000.

So given that you may soon be required to qualify at higher rates, and given that interest rates are on the rise in Canada as it is, this might be a good time to lock in a mortgage rate with your local lender.

Buying a home can cost more than the price of the property - read below for more information and what it can cost for your next purchase. Contact me if you have any questions or concerns about your next step! 

Original Article HERE

Buying a home is a big investment – likely the largest one you will ever make. The cost to buy a home should be carefully considered to avoid the risk of financial difficulty in the future.

Since this decision has a large impact on your wallet, we want to take some time to explore the many costs associated with buying a home. Doing your homework and knowing the average cost of these services in your neighbourhood will help you choose a home within a realistic price range.

Deposit: Depending on your location and the price of a home, you may need to put a deposit on a home as a security measure to ensure you don’t lose it to another interested buyer. If you are required to pay a deposit, it will become part of your down payment once you have purchased the home.

Down Payment: In Canada, the minimum amount you need to put down on a home is 5%. While this is realistic for most first time home buyers, having a down payment of 20% or more will help buyers avoid paying Mortgage Loan Insurance.

Land Transfer Tax: When you buy a home, you are required to pay a land transfer tax to the province upon closing. This tax is normally based on the amount paid for the land, as well as the remaining amount on any mortgage or debt assumed as part of the arrangement to buy the land. Cost will vary depending on your municipality, the size of the land and other factors.  Alberta, Saskatchewan, and parts of Nova Scotia do not have Land Transfer Tax at all, while other provinces use a tiered system.

Appraisal Fee: An appraisal will normally cost between $200 and $300 but can vary depending on your location. This will help prevent you from borrowing more than you need to, and will prevent lenders from giving you too much.

Home Inspection: A home inspection is a necessary step in your home buying process and will normally cost an average of $350 depending on the size, age, and condition of the home. This helps ensure there are no unexpected maintenance or home improvement costs upon purchasing the home.

Property Insurance: While property insurance is likely already something you have factored into your budget, it’s important to do your research and find a reasonable quote that will ensure you are covered should anything unexpected happen.

Mortgage Insurance: There is mortgage life insurance, which is designed to protect the repayment of a mortgage if anything were to happen to you. There is also mortgage loan insurance if your down payment is less than 20% of the total house cost. Premiums for this type of insurance range from 0.5% to 3% and increase if you are self employed.

Lawyer Fees: The fee you will be charged by your lawyer will vary depending on the person representing you and must be paid upon closing. Ask your real estate agent for advice as they likely have a preferred trusted lawyer they can refer you to.

Title Insurance: Title insurance is a one-time-fee that provides protection from losses related to the properties title or ownership. Learn more about what it is in this blog post.

Property Taxes: The cost for property taxes is expressed as a dollar rate for every $1,000 estimated to be the market value of your property.

Maintenance and Energy Costs: Potentially your largest ongoing homeowner expense, these costs include lawn care/ yard work, professional services, additions/upgrades and the cost of keeping the house running year-round. You can use our monthly home budget planner to help map out all of these costs.

Moving Expenses: It’s easy to forget about the small things when moving, but it’s important to remember they can add up quickly! Consider the cost for phone, electricity, and other utility installations and don’t forget about movers, a moving truck and feeding your friends who are helping out!

Now that you have a better idea of the cost to buy a home, it’s time to hit the books to find out how much these services will cost in your area. Make a list, create a budget, and get started!

Download our Hidden Costs of Home Ownership guide to find out more the cost to buy a home. Looking for information on a cost not listed above? Leave a comment & we will do the research for you!

See below for a message from the REBGV President, Jill Oudil, and what effect it can have for you! 

Original article HERE

BC’s Office of the Superintendent of Real Estate (OSRE) is overseeing changes that’ll have a profound impact on our profession. The OSRE has begun implementing the 28 recommendations that the Real Estate Council of BC's Independent Advisory Group (IAG) made last year.

To date, the OSRE has implemented recommendations to:

• raise English proficiency standards for new entrants to the profession;
• overhaul the composition of people who sit on Council; and
• increase the maximum fine to $250,000 for licensees and to $500,000 for brokerages.

The most recent announcement was a ban on limited dual agency in the province.

Beginning January 15, 2018, you’ll no longer be able to provide agency representation to two parties in the same transaction. This means you won't be able to represent a buyer and a seller in a deal, or represent two competing buyers in the same transaction.

The OSRE exempted remote areas underserved by real estate licensees. The BC Real Estate Association (BCREA) advocated for this exemption and we're pleased it’s in the new rules. Double-ending will also be allowed within the rules, as will the practice of designated agency, wherewo licensees in the same brokerage represent different parties in a transaction.

Members are asking us questions about how the new rules will affect their responsibilities to clients and customers, particularly with respect to teams and commercial real estate. We're working with BCREA to surface your questions and concerns, get the answers you need and, where complexities continue to exist, forward them to the superintendent.

You can also give feedback on these changes directly to the OSRE until October 6. Click hereto do so.

(Read more about this change and the actions we’re taking in response in the week’s GR Voice article here.)

The remaining IAG recommendations will be implemented. It’s a matter of when and how.

We hosted a productive meeting with the superintendent and his team earlier this year. They expressed a willingness to maintain a regular dialogue to ensure they understand our perspective on the changes they’re making. We’ll look for every opportunity to continue these discussions in the weeks and months ahead.

We’re working with BCREA to understand the implications around each of the recommendations, identify the potential impact on our members, meet with government officials, and coordinate our advocacy efforts. Click here to read a letter BCREA sent Finance Minister Carol James on this issue.

We’re in a period of significant government intervention. National, provincial, and local politicians of all political stripes are responding to public concerns about housing affordability and a perceived lack of fairness and transparency in how the real estate transaction is conducted.

On these issues, governments at all levels have public support for change:

• Last year’s foreign buyer tax was popular, as was the City of Vancouver’s empty homes tax.
• In its bid to stave off potential mortgage debt issues, the federal government has made it harder for people to get a mortgage six times in the last nine years. They’re proposing regulation changes again, this time targeting people renewing uninsured mortgages.
• The new provincial government will spend $208 million to build 1,700 new affordable rental housing units over the next 10 years.

Our philosophy on government policy is simple: REALTORS® support measures that protect the public and strengthen accountability for those in our profession who act outside the public interest. We also support measures that improve housing affordability and build better communities in a meaningful, lasting, and sustainable way. 

We assess the merits of every proposed policy against these criteria.

We can’t be successful in our government advocacy work without your support. In this time of change, it’s important that you read our communications and give your feedback as we continue to work on your behalf.

If you have questions or comments, you can reach me at president@rebgv.org.

Sincerely,

Jill Oudil
President
Real Estate Board of Greater Vancouver 

Many Canadian Cities To See Years Of Falling House Prices: Moody's

Original Article HERE

MERONN

 

 

A majority of Canada's major cities will see falling single-family home prices over the next five years, including slight price declines in once-hot Vancouver, according to a forecast from Moody's Analytics.

 

But that won't include Toronto. Despite the city's detached homes being 60 per cent overvalued, a shortage of supply and an influx of wealth into the region will mean prices in Canada's largest city will continue to grow, though at a slower pace, the risk analysis firm predicted.

 

While Calgary, Montreal and Vancouver will experience slightly falling house prices over the next five years, cities such as Edmonton, Quebec City, Regina, Saskatoon and Winnipeg are expected to see more significant declines in single-family home prices, the forecast stated.

 

Prices will likely experience "a sharp change in momentum, especially if speculative home purchases in Toronto and Vancouver are reduced or shut down," wrote Moody's Analytics director Andres Carbacho-Burgos.

 

Interest rates have started to rise; the federal government has introduced tougher new standards for insured mortgage lending, and more tough mortgage rules may be on the way; and British Columbia and Ontario have slapped taxes on foreign homebuyers.

All this, coupled with the fact that affordability is near record lows, will keep Canada's housing market in a state of "retrenchment" for several years, Carbacho-Burgos wrote.

 

How different markets react to the new reality will differ widely, the report states.

 

Despite a steep drop in the average price since Ontario's new housing rules came into effect in April, Toronto and surrounding cities will continue to see house-price growth over the next five years, Carbacho-Burgos predicted.

 

But at an annual growth rate of 7.7 per cent, it will be considerably slower than the double-digit price growth seen in recent years.

The area has seen population growth that is faster than the national average for some years now, and housing supply has not kept up, the Moody's report noted. 

 

Carbacho-Burgos estimated that Toronto house prices are overvalued by 60 per cent compared to the long-run trend, while in Vancouver they are about 50-per-cent overvalued.

But unlike Toronto, Vancouver will see slight price declines over the next five years, falling an average of 0.3 per cent per year.

"With higher mortgage rates and restrictions on speculative purchases and foreign purchases, Vancouver's housing market can ... expect approximately level house prices over the coming five years," Carbacho-Burgos wrote.

 

Montreal will experience outright house-price declines, thanks to "slower demographics" than in other Canadian cities, the report predicted.

The forecast sees an absolute housing bust in St. John's, Nfld., predicting detached house prices there will fall by more than six per cent per year, between now and 2022.

The Market Report for August 2017 is now available via the Real Estate Board of Greater Vancouver. 

See below for 5 year trend for Greater Vancouver. 

If you have any questions about the current trend or are curious about what your home is worth. don't hesistate to contact me! 

For the full market report, click HERE

Original article HERE - By Holly Amaya | Aug 1, 2017

The dog days of summer are barking and Labor Day is just around the bend, signaling the end of yet another epic season in the sun. But before you give your flamingo pool float one last hurrah, take a break with some home maintenance prep for the changing season ahead.

We know what you're thinking: It's still summer, and you're being a buzzkill! Why worry now about what you can do next month? Well, as it turns out, some home maintenance tasks are best tackled in August, before temperatures start dipping.

Don't worry: We’re here to make all those chores as quick and easy on you as possible. With our handy checklist of home maintenance tasks, you can knock 'em out and be back to your barbecues and beach days in no time.

1. Check your washing machine connections

With the kids home from school and loads of sweaty garments to clean, your washing machine has likely taken a major beating this summer. With all that extra use, be sure to check that the water supply hoses which connect to your machine are in good condition.

"If they are older black rubber hoses, check for any bulging in the hose or any parts that look worn," says Tony Dunaway of BEST Plumbing of Cincinnati.

DIY: If you have worn hoses, you can swap them out with replacements for as little as $25, but it'll take you some effort. After you've turned off the water supply to the hoses, use adjustable pliers to loosen one hose at a time from the water supply, and then from the washing machine. You'll also need to make sure your new hose has a rubber washer in each end. If your hoses are made of rubber, consider upgrading and replacing them with rupture-proof, braided stainless-steel hoses.

Call in the pros: A pro will save you the effort, but you'll shell out around $140 for the job. How much are your days in the summer sun worth to you, anyhow?

2. Prune dead wood from your lawn and garden

Now's the time to tidy up your perennials and clear those unsightly dead twigs and branches, according to Tony Smith, president of Nursery Enterprises in Rexburg, ID.

Not only will you have a more attractive yard, but "by cleaning them out this summer, you'll create a clean slate—and next summer you'll have a better grasp in understanding your plants' health." Smith says.

DIY: You'll need pruners, a saw, and loppers (or a chain saw) to really attack this job.

Call in the pros: If the mere thought of wielding a chain saw gives you the heebie-jeebies, call in a professional landscape company to do the deed. The cost depends, of course, on the extent of the work and the size of your yard, but expect to pay at least $400 to $700 for a reputable, licensed tree trimmer.

3. Clear the gutters

Summer thunderstorms can clog your gutters and lead to costly water damage down the road. Properly functioning gutters direct water away from your home, but muck and debris can cause water to collect around your home's foundation and seep into your basement, if you have one. (Clogged gutters also make great homes for rodents and other vermin, just in case you needed another reason to tackle this task.)

DIY: Grab a ladder and shimmy up to the roof to inspect your gutters and drains, taking care to wear proper hand and eye protection. A simple garden trowel is effective for clearing most debris.

Call in the pros: Scared of heights? The average gutter job will run you around $150.

4. Deal with wasps, mosquitoes, and other insects

Wasp activity peaks in late summer; these insects become more aggressive and likely to sting in, you guessed it, August. So you'll want to spray for wasps and eliminate them, pronto.

DIY: "The first step to eliminating a wasp nest is to identify where the colony lives," says Dave Patterson, owner of Tactix Pest Control in Boise, ID. "Scan your lawn, looking for activity close to the ground. Once you find where the wasps are coming and going, apply wasp treatment to the entrance. Repeat this step every few days until you no longer see any activity."

Patterson also recommends patrolling your property for stagnant water, which can be a breeding ground for mosquitoes.

"First, drain any areas that are holding water—this step alone should significantly cut down on mosquito activity," he says. This means birdbaths, planters, or any other places where rainfall might have accumulated. "For further prevention, invest in forms of mosquito repellant like citronella candles, mosquito traps, and bug zappers."

Finally, check the seals around your home, including doors, windows, and dryer vents. Caulk or expanding sealants should be more than enough to seal most openings, according to Patterson.

Call in the pros: The national average cost of wasp removal ranges between $100 and $400. The cost of mosquito control depends on a variety of factors, including property size and treatment frequency. An entire summer of mosquito treatment could run $500 or more, but you're more likely to get a deal now that it's later in the season.

5. Clean your natural stone

“After a summer filled with nonstop grilling fests, family gatherings, and just general outdoor fun and wear and tear, it’s important to properly clean natural stone around your home—whether it's outdoor granite countertops, stone walkways, or patios—to prevent food, dirt, and oil stains from setting in and leaving permanent marks," says James Freeman, chief operating officer of Colonial Marble & Granite.

DIY: Start by dusting off stone surfaces, because abrasive materials such as dirt or sand (carried home from weekend getaways) can cause damage. Avoid using harsh cleaning products on natural stone; instead, choose a gentle cleanser with a neutral pH (preferably without soap, which causes streaks and film) and a soft cloth. For a longer-lasting finish and better protection against stains and grime, consider applying a water-based penetrating sealer.

Call in the pros: For serious stains, call in a professional stone maintenance company to restore your stone. Expect to spend anywhere between $400 and $1,100, depending on the level of grime.

6.  Get your furnace prepped for winter

“When residential furnaces fail, they typically do so during the coldest days of the year, which is why it’s important to have these systems inspected in August, before temperatures drop,” says Michael Petri, owner of Petri Plumbing & Heating, in New York City. “An annual tuneup and inspection can help homeowners save money, maintain comfort, and ensure safety when units are turned on for the first time in several months.”

Call in the pros: There's no shortcut for this one; maintaining your furnace is something you'll want to defer to a pro. Typically, HVAC companies run prewinter specials for this kind of work, so keep your eyes peeled for deals—but expect to spend between $130 and $450.

Great article underlining the importance of understanding everything you sign in a real estate agreement! Contact me for any details or information on what you need to know. 

Original article found HERE 

There's nothing like the humdrum of paperwork to bog down the excitement of a house hunt. But much like opening a new bank account or purchasing a car, buying a home comes with its fair share of contracts to sign and legalese to decode.

Arguably the first contract that comes into play for buyers is a Buyer Representation Agreement (commonly abbreviated to BRA).

A BRA is a legally binding contract that puts in writing that you will work exclusively with one real-estate brokerage for a certain amount of time. So, why would you sign a BRA as a buyer and what do you need to be aware of before putting your name on the dotted line?

HERO IMAGES VIA GETTY IMAGES

Below, TheRedPin has outlined the six key facts you need to be aware of regarding BRAs:

1. There are benefits to signing a BRA for home buyers

A home is a huge financial and emotional purchase, and a BRA helps bring some much-needed clarity and formality to the process.

By a signing a BRA, you can outline all your wants and needs for a property (legally on paper), clearly outlining all the services your realtor is obliged to deliver and remove any possible concerns around how commissions will be paid out.

A BRA also makes it so a real-estate brokerage has a fiduciary responsibility to work in your best interest and ensures they're prohibited from sharing anything you'd like to be kept private from the home seller. Remember, while your agent is helping you find a home, technically, they're also working with the seller's agent to get a deal closed. With a BRA, you can rest assured knowing your agent isn't sharing anything without your explicit permission.

2. Signing a BRA isn't a legal requirement

You don't have to sign a BRA and you can hire a real-estate agent when buying a home without putting anything on paper. While some agents have it as a personal customer-client requirement, many agents are receptive to working without a BRA in place.

The big takeaway here is, don't let anyone rush you into signing paperwork under the guise it's a legal requirement.

3. You don't have to buy a home even if you signed a BRA

BRAs have an expiry date and you can negotiate with your realtor the extent of the contract period.

Also, you're not required to buy a home during the BRA period, so if you negotiated a one-month contract with your agent, don't worry, you won't actually have to put an offer on a home during that time. A BRA can expire without you ever buying a home.

A BRA is a legal agreement, so take that into account when signing off your name and initials.

4. BRAs help sort out commissions

Real estate commissions are confusing, but BRAs go a long way in clearing them up.

As a buyer, you don't directly pay any commission to your realtor, as they receive their earnings from the home seller. However, in some cases, such as when the property you're looking at is a for sale by owner, you may have to fork over the commission yourself.

In such cases, a BRA helps clarify what percentage of a property's selling price you would owe to an agent. This helps remove any confusion around how and by how much your agent will be compensated ahead of time.

If you want to read more about how realtor commissions work, make sure to read TheRedPin's blog post here.

5. Keep an eye out for the holdover period

The holdover period is a clause present in most BRAs that all buyers should be aware of because, in those rare situations where it can come into play, it can add up to thousands more in unexpected commissions for buyers.

When does the holdover clause apply?

Let's say your agent showed you a home, and you liked it but didn't put an offer down. Once your BRA expires, you decide to go to the home seller directly (or with a different agent) and sign an agreement to purchase the property. If you do so during a short window of time after your BRA with the first agent expired, you may still have to pay them commissions.

The holdover clause is meant to protect the buyer's agent to ensure if he or she was responsible for showing you the property, they get appropriately compensated.

6. Read the fine print. BRAs can be tough to cancel

While some agents may be willing to cancel a BRA before it expires, that won't always be the case. A BRA is a legal agreement, so take that into account when signing off your name and initials. If you do face issues and an agent isn't willing to scrap or amend the contract, raising your concerns with your agent's brokerage should be your first course of action.

This bright and spacious corner suite, in sought after Keith One Hundred features two bedrooms, one and a half bathrooms and large open living dining rooms! Enjoy Souhwest exposure right across the street from beautiful Victoria Park. Spend evenings on the huge outdoor, wrap-around, covered and tiled, balcony. Feel the conveince of in-suite laundry, 1 parking place, one storage locker and exercise room! Updated building with beautiful grounds situated in a very conveinent Central Lonsdale location just steps away to everything! 

Contact me for details or to book a showing! 

Just one of the great things REALTORS® do for their community! Our thoughts are with those affected by the wildfires! 

Interesting article out of Huffington Post this morning:

Original article can be found HERE

Daniel Tencer - Senior Business Editor, HuffPost Canada

With a new foreign speculator's tax in place in southern Ontario and tighter new mortgage rules nationwide, many of the country's housing markets are showing signs of cooling off.

"Based on a survey of real estate boards that we conducted earlier this month, home sales declined on a [year-on-year] basis in July in most large Canadian cities west of Ottawa," National Bank economist Marc Pinsonneault wrote in a client note Monday.

"If that trend persists, home price growth might decelerate in these regions."

Sales were down 40.4 per cent in July in Greater Toronto, following the introduction of a slate of new housing rules by the provincial government, including expanded rent controls and a new 15-per-cent foreign speculator's tax.

In Greater Vancouver, sales slid 8.2 per cent lower this July compared to the same month a year ago.

Still, the latest edition of the Teranet house price index, which is put out in conjunction with National Bank, shows strong year-on-year price growth: The index was up 14.2 per cent in July from the same month a year earlier, the same pace as the previous month.

"The Teranet-National Bank data comes from a land registry, and so transactions are recorded in the land registry about one or two months after the sale is recorded in the (multiple listing service) system," he told BuzzBuzzHome last month.

"When you have a sudden shift in price trends, it's plausible that the Teranet-National Bank index will be lagged with the MLS [data]."

That shift in price trends seems to have taken place in Greater Toronto, where Toronto Real Estate Board data shows the average resale house price has already fallen 19 per cent from its peak. It was $746,218 in July, down from $920,791 in April.

But the latest Teranet house price index shows prices in Toronto were up 28 per cent in July from a year ago — though, again, that number may be lagging the reality in the city's market.

.

In Greater Vancouver, the benchmark price of $1.02 million is 8.7 per cent higher than a year ago, a solid increase though much slower than the double-digit increases seen until last year. That's in line with Teranet's house price numbers, showing an 8.6 per cent increase over the past year.

Pinsonneault singled out two housing markets that are bucking the trend and doing better these days: Ottawa and Montreal. He called them "two areas where the Teranet-National Bank Home Price Index was at a record level in July."

House price growth accelerated to around 4 per cent in Ottawa and 5.5 per cent in Montreal on a year-over-year basis.

Pinsonneault predicted "pressure on home price growth" from new regulations that require borrowers of insured mortgages to undergo a "stress test" to ensure they can afford higher rates, and from Ontario's new housing rules.

"Downward pressure is likely to be more acute in regions where affordability has been eroded by past price escalation, while home prices should be more resilient in regions where homes are more affordable," Pinsonneault wrote. 

If you’re getting ready tosell your home, you want to get the most money for your investment, right? One of the key factors that will sell your home is price, and having a sound pricing strategy is a must if you want to find the right buyer.

Your home may be the biggest investment you’ll ever make. That means you want to be smart with your mortgage. Although we can’t say for sure what mortgage rates will do – or how the housing market will shift – we have compiled our top tips for the year ahead; sensible strategies for today’s homebuyers and owners.

1. Variables are back. Several lenders are offering strong “prime minus” rates that could save you thousands in interest. And the Bank of Canada is still holding their key “overnight rate” very steady and very low… making variable-rate mortgages a sensible option right now. Fixed versus variable has always been a challenging mortgage decision. Let us help you decide which financing option best meets your needs.
2. Don’t sleepwalk through your mortgage renewal. Don’t miss out on an opportunity to save thousands on your mortgage. When your lender sends you a letter saying it’s time to renew… then it’s time to get an expert second opinion. We’re independent and we have access to over 50 lenders. If there’s a better deal, we’ll find it.
3. Pay your phone bill on time! Paying your bills on time has always been the most important credit habit. Equifax recently started to include phone companies on credit bureau reports – so your lender can see if you have any delinquencies with your phone bills. Look like a good borrower.
4. Keep other good credit habits. Don’t let your credit accounts exceed 30 per cent of your limit. Don’t cancel an old credit card without getting advice. And don’t sign up for store cards: they often have crazy interest rates, and the application triggers a credit inquiry (you don’t want a lot of those).
5. Mortgage versus total debt. Do you have high-interest debt outside your mortgage that you won’t be able to pay off in the next few months? Then think about rolling that debt into a new low-rate mortgage. This one, smart strategy could save you thousands… and boost your monthly cash flow. We can analyze your situation to see if you qualify.
6. What’s the prepayment penalty? Don’t let anyone tell you prepayment penalties are “all the same”. They’re not. If you ever need to get out of your mortgage early, the right mortgage could save you thousands. Not all lenders calculate penalties the same way, and the differences can be substantial. It helps to know which lenders have the most fair prepayment penalties. With access to dozens of lenders – we’ve got that information at our fingertips.
7. If one of you wants to keep the marital home. If you are going through a separation or divorce and one of you wants to keep the marital home, we’ve got some great mortgage options, including a mortgage to 95 per cent. Your home can be the asset that gives you both a fresh start!
8. A paydown will pay it forward. Take every opportunity to beat down your mortgage principal using any prepayment privileges! Use tax refunds, bonuses, whatever. Or switch to weekly or bi-weekly payments. Every dollar you pay down on principal means every future payment goes further.
9. Thinking renovation? We see what you see. Your reno will add value to your home. That’s why we have a special “Refinance Plus Improvements” mortgage that lets you refinance up to 80 per cent of the new, post-reno value of your home. Cool deal.
10. Visit your mortgage broker for a checkup. Your mortgage needs an annual checkup. Really. Life doesn’t stand still, which means your needs may have changed. Even a minor tweak can pay big dividends.