Hi,

FOR IMMEDIATE RELEASE
November 1, 2013          

VICTORIA, BC–Greater Victoria continued to experience strong home sales during the month of October, reports the Victoria Real Estate Board (VREB). According to the Board’s MLS® System, 512 properties sold compared to 373 in October 2012, an increase of 37.27 per cent. There were 4,322 active listings.

“While we are all very pleased with the October results, we are tempering our enthusiasm,” says Shelley Mann, Board President. “After a slow market for the last half of 2012, we are still climbing back to previous annual sales numbers.”

Today, the VREB and joins the Canadian Real Estate Association and ten major real estate markets in Canada by adopting a new approach to the reporting of trends in residential property prices. Instead of relying on average and median sale prices which are subject to fluctuation, the Board moved to a new system called the MLS® Home Price Index (MLS® HPI). The methodology used by MLS® HPI has been endorsed by Statistics Canada, Canada Mortgage and Housing Corporation, the Bank of Canada, Finance Canada and Central 1 Credit Union.

At the heart of the MLS® HPI is the concept of the "benchmark" home, a notional home comprising the most common attributes of typical homes in a given area. Through the analysis of ten years of VREB MLS® sales data, MLS® HPI has defined benchmark homes for Greater Victoria as a whole as well as for each of our regions, districts and neighbourhoods. In each of these areas, MLS® HPI has defined a benchmark home for each category: single family homes, townhouses and condo apartments. Each month, VREB MLS® sales data will be fed into the MLS® HPI to calculate and track changes in the prices of our benchmark homes. 

Benchmark prices are generally lower than corresponding medians and averages.  MLS® HPI estimates the values of our typical homes, whereas medians and averages merely reflect the overall selling prices of the particular mix of homes that sold in a given month.

In a manner similar to the Consumer Price Index (CPI), MLS® HPI maintains a running index of the percentage change in benchmark prices.  Like the CPI, the MLS® HPI assigns an index value of 100 to the benchmark prices at its starting point: January 2005.  By tracking both benchmark prices and index values each month, MLS® HPI will provide a much clearer picture of real estate market trends in Greater Victoria. 

“Past reporting of averages and medians showed flat pricing across the Board’s trading area but MLS® HPI indicates a moderate decline in prices in many markets over the last year,” Mann says. “Benchmark prices are flat month-over-month, and we will be watching very carefully to see where pricing goes.

“With average and median prices, it was often difficult to gauge whether prices of typical homes were rising or falling, but the HPI provides us with exactly this type of information,” she says.

For October 2013, the benchmark price for the Greater Victoria single family benchmark home was $485,400 and its corresponding MLS® HPI index value was 137.2.  (This represents a 37.2 per cent increase since January 2005, when the index was 100). This benchmark price increased 0.15 per cent over the past month and decreased 3.18 per cent over the last year.

At the regional level, the benchmark price for the single family benchmark home in the Core municipalities was $547,800, a decrease of 0.56 per cent over the previous month and a 2.66 per cent decrease over October 2012. In Westshore, the benchmark price for the single family benchmark home was $410,600, a decrease of 0.37 per cent over September 2013 and 4.37 per cent decrease over October 2012. The benchmark price for the single family benchmark home on the Peninsula was $508,700 for September, an increase of 1.22 per cent over the previous month and a 3.56 per cent decrease year-over-year.

There were a total of 274 single family homes sold in September, an increase of 29 per cent over September 2012. September also saw the reporting of 126 condominium sales and 51 townhouse sales in Greater Victoria. Benchmark prices for the Greater Victoria condominium benchmark home and for the Greater Victoria townhouse benchmark home for September $283,100 and $393,100 respectively.

Total Waterfront Single Family Dwellings sold:                      17, up 2 over October 2012

Total Non-waterfront Single Family Dwellings sold:           257, up 62 over October 2012

Single Family Dwellings sold over $1 million:                          16 (1 over $2 million)

For more information on MLS®HPI benchmark prices and index values for September, visit www.vreb.org. Those requiring specific information on property values in their area should contact a REALTOR®. The Victoria Real Estate Board has 1,224 Members.

BCREA ECONOMICS NOW

Vancouver, BC – October 15, 2013. The British Columbia Real Estate Association (BCREA) reports that a total of 6,498 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during September, up 43.2 per cent from September 2012. Total sales dollar volume was 55.7 per cent higher than a year ago at $3.49 billion. The average MLS® residential price in the province was $537,458, up 8.8 per cent from September 2012.

"Consumer demand for housing in September was the strongest in four years,” said Cameron Muir, BCREA Chief Economist. “After declining for most of 2012, BC home sales have increased now for seven consecutive months."

"While a return to a more normal level of demand is good news for buyers and sellers, relatively weak economic conditions and muted provincial job growth will likely limit continued acceleration of home sales over the next few quarters,” added Muir.

Year-to-date, BC residential sales dollar volume was up 5.7 per cent to $30 billion, compared to the same period last year. Residential unit sales were up 3.1 per cent to 56,347 units, while the average MLS® residential price was up 2.6 per cent at $532,745.

Subject: Hottest Summer For Property Sales In Five Years!

Hottest Real Estate Market in Five Years! PLUS: Sept HOT Property! VICTORIA BC - Summer-time real estate sales numbers were the best they've been in Greater Victoria in five years. There was a total of 1,787 sales in June, July and August. On a monthly scale, total real estate sales in Greater Victoria were up 16.8 per cent in August 2013 over August 2012, the Victoria Real Estate Board reports. A total of 540 properties sold in August "I'm very pleased with the August results. MLS® sales are strong and, with 4,593 active listings in all categories at month end, we remain on the cusp of a balanced market," says Shelley Mann, President of the Victoria Real Estate Board. The BC Real Estate Association defines a balanced market as when the ratio of sales to active listings is between 15 and 20 per cent. At month end, Victoria's ratio for residential properties was 14 per cent. There were 308 single family homes sold in August, an increase of 28.3 per cent over August 2012, while the median price of $529,950 is up less than one per cent year over year from $526,250. There were 125 condominium sales with a median price of $287,000 and 70 townhomes sold at a median price of $415,000. "Overall, pricing remains flat and our provincial economist predicts the trend will continue for another year. That said, the year-over-year median price of condos is up 9.2 per cent and the median of townhomes is up 12.5 percent," Mann says. "This will vary between neighbourhoods, which is why I always recommend that consumers consult a REALTOR® for local pricing. "With interest rates starting to increase, many buyers are locking into preapproved mortgages. These consumers should be purchasing in the next three to four months, so I believe the market will remain steady," Mann says. Total Waterfront Single Family Dwellings sold: 20, up 7 over August 2012 Total Non-waterfront Single Family Dwellings sold: 288, up 61 over August 2012 Single Family Dwellings sold over $1 million: 17 (2 over $2 million) Stats Quick Reference Total Single Family All Areas includes Shawnigan Lake/Malahat, Gulf Islands and Up Island   HOT PROPERTY ALERT ONLY $159,900! Open House Wednesday Sept. 4 @ 4-6 pm @ #204-3363 Glasgow Ave. Yes, there is work to do but at this price you'll have a fabulous, spacious 2 bdrm, 2 full bthrm suite w/in-suite laundry, in a pet friendly bldg. w/no age restrictions, secure underground parking, at the end of a quiet cul-de-sac, on a fabulous bus route, walking distance to Thrifty's, Italian Bakery & shops. Call today to view this exciting opportunity! Call me if you would like to know how the current Real Estate Market affects you or if you know anyone who is looking to buying or selling! You could earn up to $1000! Visit my website or call me at 250-884-3980 Stay tuned for the next Newsletter - Foreclosures. How the process works and how to spot great deals!   Visit my website, www.NewImageHomeSales.com »

Bank of Canada Interest Rate Decision - September 4, 2013

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 1 per cent. In its accompanying statement, the Bank highlighted that an uncertain global economy is delaying an expected rotation of growth in Canada toward exports and investment. This means that the burden of economic growth will remain on households at a time when most households are deleveraging and looking to slow consumption. All of this adds up to a Canadian economy that will grow below trend in 2013, likely at a rate of around 1.5 per cent. Below trend growth will translate to continued subdued inflation, which the Bank anticipates will return slowly to its 2 per cent target in 2014. As for the Bank's tightening bias, language around the withdrawal of monetary stimulus has been significantly moderated. The Bank anticipates a gradual normalization of policy interest rates as conditions for inflation, growth and household debt normalize.

Rising long-term Canadian interest rates, along with somewhat soft economic growth through the first half of 2013, have taken some urgency out of future monetary policy tightening. In particular, higher long-term rates will further slow growth in household debt via higher mortgage and other key lending rates which will allow the Bank to push increases in its overnight out to late 2014 or early 2015.

Housing Market Picking Up Steam
BCREA 2013 Third Quarter Housing Forecast Update

Vancouver, BC – August 22, 2013. The British Columbia Real Estate Association (BCREA) released its 2013 Third Quarter Housing Forecast Update today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to increase 3.9 per cent to 70,300 units this year, before increasing a further 6.1 per cent to 74,600 units in 2014. The five-year average is 74,600 unit sales, while the ten-year average is 86,800 unit sales. A record 106,300 MLS® residential sales were recorded in 2005.

"After a marked pull back of consumer demand in 2012, the housing market is now transitioning to more elevated home buying activity,” said Cameron Muir, BCREA Chief Economist. “However, the effect of sluggish employment growth this year is expected to spill over into 2014, limiting housing demand to a 6 per cent increase, with total home sales matching the 5 year average."

"The average MLS® residential price in the province has been revised from remaining unchanged to increasing 3.3 per cent to $531,700 this year. A stronger than expected decline in the inventory of homes for sale has created balanced market conditions in the Lower Mainland, causing home prices to align more closely with overall consumer price inflation,” added Muir. The average MLS® residential price in BC is forecast to increase 2.2 per cent to 543,400 in 2014.

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To view the full BCREA Housing Forecast Update, click here.

For more information, please contact:

Vancouver, BC – August 14, 2013. The British Columbia Real Estate Association (BCREA) reports that a total of 7,650 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC for July, up 18 per cent from July of 2012. Total sales dollar volume was 32.8 per cent higher than a year ago at $4.09 billion. The average MLS® residential price in the province was $534,360, up 12.5 per cent from July 2012.

"Home sales in the province posted their strongest July since 2007,” said Cameron Muir, BCREA Chief Economist. “After six consecutive months of rising consumer demand, it’s now clear that BC housing markets are recovering from tighter lending regulations introduced last year,” added Muir.

"Rising home sales are unlikely to put any significant upward pressure on home prices,” cautioned Muir, “as the inventory of homes for sale is expected to keep pace with demand.” Many potential home sellers that have been holding off for improved market conditions are expected to put their homes on the market to meet the swelling ranks of home buyers.

Year-to-date, BC residential sales dollar volume was down 2.8 per cent to $22.9 billion, compared to the same period last year. Residential unit sales were down 4 per cent to 42,986 units, while the average MLS® residential price was up 1.3 per cent at $531,928.

Re: Final Cost of Buying a Home

1. Down Payment: This is any amount greater than 5% of the purchase price of the home. Anything less than a 20% down payment and you will have to get mortgage loan insurance.

2. Deposit: This is due when a contract of Purchase and Sale is written and accepted. This deposit forms part of your down payment with the remainder of the down payment due at closing.

3. Mortgage/Application fee: There can be some fees involved with applications and or mortgage fees, but they are quite rare and will be explained to you before you move forward. And they are usually due to a tough situation where conventional lenders cannot help you.

4. Appraisal Fee: In order to complete a mortgage loan your lender may ask you to do an appraisal and this will usually run between $250-350 + tax, but it can vary according to the location and property type.

5. Mortgage Loan Insurance: If you make less than a 20% down payment, you have a high ratio mortgage.  Mortgage insurance lets you buy a home with a minimum of 5% down.  This insurance protects the lender by ensuring that they are paid out by the insurer if the borrower defaults. This amount is a % and based off the down payment and mortgage amounts.  Expect to pay at least a few thousand dollars if you have a minimum down payment.
NOTE: This is not a fee that is charged up front, standard practice is to add it to the mortgage amount. And you only have to purchase it once for the life of your mortgage.

6. Home Inspection Fee: It is recommended that you have a property inspection for the property as a condition of your Offer to Purcahse. This cost is usually around $500 for a single family home and $350 for a strata condo unit. The inspection looks at all the components of the home and gives you an idea of the condition of the home.

7. Survey (certificate of location): This is done at the buyer’s expense and is sometimes needed as a condition to receive a mortgage. If the survey is more than five years old, you will need to have it updated. If the seller does not provide it the buyer will have to pay. The cost is anywhere from $1000 to $2000 for the survey.

8. Title Insurance:  Your lawyer may suggest that you get title insurance. Title Insurance is an insurance policy for the benefit of the lender only, and it's bought at the solicitor at closing. It costs roughly $200-$300.

9. Property Transfer Tax: This tax is 1% on the first $200,000 and 2% on the balance. First time home buyers are exempt from this tax if the purchase price is less than $425,000. There is a partial exemption on amounts between $425,000 and $450,000, however at $450,000 or above the full tax is payable. 

NOTE: PTT has to be paid in cash at closing - it can't be added into the mortgage unless you make a smaller down payment.

10. Water tests: The potability of the water should be tested if the home is on a well system. This will ensure that the quality and supply is adequate. This costs is usually between $50-$170 and can be negotiated into the Contract of Purchase and Sale.

11. Septic Tank: If the home has a septic tank, it should be professional inspected to make sure the components are in good working condition. The cost is usually $250-$350 and can be negotiated into the Contract to Purchase.

12. Status Certificate (Condo): This certificate outlines the financial and legal state of the strata corporation.  The cost is up to $100.

13. Prepaid Property Taxes and/or Utility Bills: If the seller has paid the property taxes for the year or other costs (such as filling the oil tank), you will need to pay the seller back. This is done at closing time when adjustments take place.

14. Property Insurance: The lender will require that you have contents and property insurance to cover the cost of replacing the home in case of loss. Speak to a home insurance company for costs, they average around $400-$800 depending on the home, location, riders, etc… You will need to have this in place at 12:01am closing day to cover you for loss.

15. Legal fees:  Vary depending on which lawyer/notary you use, as well as what work is required from them. Expect to pay at least $700+ for a home purchase (less for a mortgage renewal or refinance).

16. GST: This is the 5% provincial tax cost plus the 2% transitional tax, which is on the purchase price.  There are refunds of the gst amount up to $350,000 on a new home. The rebate is 36% of the GST on any price up to $350,000 which equates to 1.8% of the purchase price, with a max rebate of $6300 at $350,000. Between $350,000 and $450,000 the rebate decreases to zero, (for every $10,000 increase in price, the rebate is $600 lower).  Over $450,000 there is no rebate.