Thanks to strong buyers’ confidence, continued low interest rates and decreased inventory, North Shore home sales for July outpaced 2014 levels.

In North Vancouver, 281 properties sold during the past month, representing an increase of 28.3% over last year.

In West Vancouver, there were 100 sales in the month of July, with 81 of those being detached properties.  This represents an increase of 17.4% compared to July 2014.

The summer months usually bring a slowing trend for home sales and July sales decreased 15% from June, with all homes listed for sale down by 17 % for the month.  However, the month of September generally sees an increase in overall sales activities.

Please do not hesitate to contact me to ensure you receive timely updates regarding the North Shore real estate market.  I deliver valuable insight to provide you with the right tools to make an informed decision for all your real estate needs.

Following are the monthly market reports published by the Real Estate Board of Greater Vancouver:

REPORTS

In an effort to address the lack of affordable housing, the Canada Mortgage and Housing Corporation (CMHC) is going to make it easier for homeowners renting out suites in their principal residence to borrow money.   Effective September 28, 2015, homeowners will be able to count the income from their secondary suite when qualifying for a mortgage loan.  This change will assist more people in taking the first step into homeownership.  It will also allow existing homeowners to take that next step to a bigger property.  However, one key issue will be whether the rental unit is legal or conforms to municipal standards.  But many municipalities across the lower mainland now formally recognize secondary rental suites as a source of affordable housing. 

Under the new rules, homeowners can consider up to 100% of gross rental income from a secondary suite for calculating their household income which determines how much they can borrow.  At the moment, homeowners with legal suites can only count 50% of the rental income.  It is thought that this change will have a positive effect on qualifying for a mortgage.  As an example, a potential buyer looking at purchasing a house with a secondary suite that will generate $1,200 in monthly rent, can borrow an additional $72,000.

As many homeowners show a strong interest in renting out part of their principal residence, these rule changes could be an effective way to boost affordability.  The change could also further heat up the market in the Lower Mainland.

If you have any questions about the new rules please contact me directly and I would happy to assist you, I can be reached at 604-317-7810.