November 30, 2017
Higher rates could spell comeback for 5-year mortgages
Time to get ready for a return of the popularity of the five-year mortgage? Twenty years ago, in the mid-1990s —conventional wisdom still held where most home buyers and mortgage holders opted for five-year-closed mortgages, as a hedge against the ominous threat of rising interest rates. The security of locking in a constant, predictable mortgage payment for the long term was more valued than hunting for the lowest possible variable rate mortgage.
© Used with permission of / © Rogers Media Inc. 2017. The Bank of Canada says to expect higher interest rates...
November 30, 2017
The push for rental-only zoning in Vancouver
About five decades ago, Vancouverites lived almost entirely in single-family homes and rental buildings. The majority of the rental was purpose built, a lot of it in West End towers, with midrise rentals scattered throughout other parts of the city.
Some co-op housing had been built. But condos didn't exist.
"If you wanted to build a higher density, you had to build rental," University of Toronto professor David Hulchanski says.
November 28, 2017
Growth Continues in the BC Commercial Real Estate Sector
The BCREA Commercial Leading Indicator (CLI) increased for the ninth consecutive quarter, rising 2 points in the third quarter of 2017 to 135.3. That increase represents a 1.7 per cent rise over the second quarter and a 7.3 per cent increase from one year ago.
The sustained rise in the CLI has been driven by several years of strong growth in the BC economy, particularly in sectors beneficial to commercial real estate activity. While we expect that the almost unprecedented cycle of abovetrend growth in the BC economy will end next year, the overall economic environment remains very supportive...
November 28, 2017
Housing Market Facing Headwinds Despite Strong Economy
The British Columbia Real Estate Association (BCREA) released its 2017 Fourth Quarter Housing Forecast today.
Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 10.4 per cent to 91,700 units in 2018, after an expected 8.8 per cent decrease this year. A record 112,209 unit sales were recorded in 2016. The ten-year average for MLS® residential sales in BC is 84,700 units. Strong economic and demographic fundamentals are supporting elevated housing demand. However, a number of factors are expected to temper home sales in the province next year....
November 20, 2017
Costs to expect when buying, selling a house
The purchase price you negotiate when buying or selling a home is just one part of the ultimate cost for a home. In addition to the purchase price there are a number of other fees—known as closing fees—that need to be factored in to any purchase or sale price. To help you plan the purchase or sale of your property, here’s a snapshot of the extra fees you can expect to pay out of pocket once you’ve settled on the home sale price.
Buyer’s Closing Costs
→ Land Transfer Tax
Most provinces and some major cities impose a land transfer tax that is calculated as a percentage...
November 20, 2017
8 ways to start the home-buying process
Real estate isn’t just a place to live anymore, it’s now an integral part of your financial plan. But that doesn’t mean you should get in at all cost. To make it work, you need to consider the purchase of a home as part of your overall financial plan. To help you stay on track, here are eight simple steps you can take to start the home-buying process in a fiscally responsible way.
1. Start budgeting
Most people start their home buying process by going to an open house or by going online to the Multiple Listing Service— a collection of private databases...
November 17, 2017
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The SFU, UniverCity market boasts one of the lowest vacancy rates & some of the highest rental yields in Metro Vancouver. Looking for an ideal long term real estate invesment? Look no further than UniverCity,...
November 17, 2017
Academic takes on Vancouver’s housing-supply ‘myth’
Condos in the Gilmore area of Burnaby are seen in the distance behind houses in east Vancouver, B.C. DARRYL DYCK/The Globe and Mail
In Vancouver, the detached house owner is often vilified. So too, is the resident who protests density.
They are vilified by what one academic is calling "the housing supply myth," which is the belief that we need more housing in order to lower costs. It's an argument commonly used by politicians, industry, and some academics and citizen activists.
"There is an intuitive appeal to that argument," says Dr. John Rose, who spent the last year on education leave,...
November 12, 2017
BC Home Sales Rise Despite Low Level of Supply
The British Columbia Real Estate Association (BCREA) reports that a total of 8,677 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in October, an increase of 19.3 per cent from the same period last year. Total sales dollar volume was $6.25 billion, up 41.6 per cent from October 2016. The average MLS® residential price in the province was $720,129, up 18.7 per cent from October 2016.
“BC home sales trended higher in October, up 23 per cent from January on a seasonally adjusted basis,” said Cameron Muir, BCREA Chief Economist. “A lack of supply...
November 8, 2017
Canadian housing starts trend steady in October
The trend in housing starts was 216,770 units in October 2017, compared to 215,153 units in September 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
”The trend in housing starts essentially held steady in October following a decrease in September,” said Bob Dugan, CMHC’s chief economist. ”Nevertheless, new home construction remains very strong in 2017, as the seasonally adjusted number of starts has been above 200,000 units in nine...
November 6, 2017
The Surge in Metro Vancouver New Home Completions
Housing affordability is fundamentally linked to the relationship between the housing stock and market demand. Strong economic growth has created rising labour demand and consumer confidence side effects, while net migration and a wave of millennials entering their household-forming years have rounded out a “perfect storm” of demand-side momentum. In turn, the supply of resale homes on the market in Metro Vancouver has plunged to decade lows. This has led to continuing upward pressure on home prices, because elevated consumer demand hasn’t been matched by an equivalent increase...
November 3, 2017
October sales exceed historical average
Metro Vancouver* home sales exceeded typical historical levels in October with the majority concentrated in the townhouse and apartment markets.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 3,022 in October 2017, a 35.3 per cent increase from the 2,233 sales recorded in October 2016, and an increase of 7.1 per cent compared to September 2017 when 2,821 homes sold.
Last month’s sales were 15 per cent above the 10-year October sales average.
"Conditions continue to vary significantly based on property type. The detached home...