Vancouver, BC – July 16, 2013. The British Columbia Real Estate Association (BCREA) reports that a total of 7,196 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC in the month of June, up 5.6 per cent from June of 2012. Total sales dollar volume was 11.9 per cent higher at $3.84 billion. The average MLS® residential price in the province was $533,219, up 6 per cent from a year ago.

"BC home sales rose 6.7 per cent from May, on a seasonally adjusted basis, with June being the fourth consecutive month of increasing sales activity,” said Cameron Muir, BCREA Chief Economist. “Since February, home sales across the province have climbed by 23 per cent, on a seasonally adjusted basis,” added Muir.

On a quarterly basis, MLS® residential sales climbed 15 per cent in the second quarter, while the inventory of homes for sale has moved down 5 per cent over the last two quarters, creating improved market conditions in many regions of the province.

Year-to-date, BC residential sales dollar volume was down 8.2 per cent to $18.8 billion, compared to the same period last year. Residential unit sales were down 7.8 per cent to 35,336 units, while the average MLS® residential price was down 0.4 per cent at $531,401.

VICTORIA, BC–Greater Victoria real estate sales for May are identical to the same period one year ago: 659 properties sold on the MLS® System.

“We are continuing to see improved consumer confidence in the marketplace,” says Shelley Mann, President of the Victoria Real Estate Board. “Our Members are much busier with showings and writing offers, but say they are working harder to help their clients satisfy stricter lending rules. This quarter is definitely much stronger than the first quarter of 2013.”

Buyers remain price sensitive. “Homeowners who are pricing their properties competitively, not expecting the higher sale prices of 2008, are selling their homes,” Mann says. “With 4,783 active listings, buyers have plenty to choose from. With higher sales volumes and a reasonable inventory level, Greater Victoria continues to edge towards a balanced market.”

There were 384 single family homes sold in May at a median price of $515,000, down 3.4% over May 2012 at $533,000. Condominium sales were 142 at a median price of $289,500 and 68 townhomes sold at a median price of $400,000. “With average and median prices fluctuating on a monthly basis, it’s more important than ever for consumer to consult a REALTOR®,” Mann says.

Total Waterfront Single Family Dwellings sold: 18, up 3 over May 2012

Total Non-waterfront Single Family Dwellings sold: 366, down 7 over May 2012

Single Family Dwellings sold over $1 million: 18 (2 over $2 million)

While the use of average price information can be useful in establishing trends when applied over a period of time, e.g. six months or longer, the Victoria Real Estate Board cautions that an average price does not indicate the actual value of a property in a particular neighbourhood. 

If you are looking for specfic information in regards to prices in your area or would like to find out what your home is worth, call me today... 250.884.3980

Housing Market Conditions Improve on the South Coast

Vancouver, BC – May 15, 2013. The British Columbia Real Estate Association (BCREA) reports that a total of 6,904 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during April, up 1.9 per cent from March on a seasonally adjusted basis, but down 2.2 per cent compared to April 2012. Total sales dollar volume declined 3 per cent to $3.65 billion. The average MLS® residential price in the province was $528,507, down 0.8 per cent from a year ago.

"BC home sales trended higher again in April, with seasonally adjusted unit sales now 8 per cent higher since the beginning of the year," said Cameron Muir, BCREA Chief Economist. "Market conditions were at or near balanced conditions in Victoria, Vancouver, the Fraser Valley and the North last month, leading to a firming up of home prices." The MLS® Home Price Index edged up 0.7 per cent over the past month in the Lower Mainland, and 1.5 per cent over the past three months.

Transition Year Expected for BC Housing Market
BCREA 2013 Second Quarter Housing Forecast

Vancouver, BC – May 9, 2013. The British Columbia Real Estate Association (BCREA) released its 2013 Second Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to edge up 1.9 per cent to 68,900 units this year, before increasing a further 6.5 per cent to 73,400 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.

"Stricter mortgage credit regulation combined with slower economic growth has kept BC home sales at a cyclical low over the past three quarters," said Cameron Muir, BCREA Chief Economist. "However, a faster growing economy is expected during the second half of the year and through 2014 which will support a growth trend in provincial housing demand."

"The BC average home price forecast is revised upward for 2013, from a decline of 1 per cent to remaining unchanged, as a result of stronger than expected market conditions in Vancouver," added Muir. The average MLS® residential price in BC is forecast at $515,800 this year, before rising 1.7 per cent to $524,500 in 2014.

Depreciation Reports...

These reports look at the current systems and structures of the building and advise on the life expectancy of each.

Who does the report?
The regulations allow almost anyone to produce a report. This will take time to change but it is needed as the person providing the report needs to be qualified and competent.

Go for the Money!
What you will want to look at is to see if there is going to be any Special Levies. When? How Much? There will need to be a minimum of 3 financial plans for the Strata as this is a regulatory requirement. This may show an indication of a Strata Fee increase possibly.

Recommendations/Executive Summary.
What are the important aspects of the plan that you want to look for? The recommendations area of the plan will give you an idea of the issues that may need to be addressed in the near future. This is where you will get an idea of how much money you will possibly need to come up with and timelines for this.


The depreciation report is going to be the gold standard once it is fully phased in. It will be important for you to pay attention to the report so you get an indication of the overall life expectancy of the various systems and when they will need to be replaced and if there will need to be special levies imposed due to a shortfall in funds. 

Greater Victoria Residential Real Estate Transitions to a Balanced Market

May 1, 2013

VICTORIA BC - Weighing in on the best April since 2010, Shelley Mann, President of the Victoria Real Estate Board, is cautiously optimistic that the Greater Victoria is back into a balanced market.

"Consumer confidence is increasing," Mann says. "Our total number of sales for April is 615, a 5% increase compared to April 2012 with 586 sales. On the residential side, more properties are selling, and slightly fewer are entering the market, so we are moving from a buyers' market to more balanced market conditions."

Mann's cautions that one month doesn't indicate a market trend, but is encouraged by increased showings by REALTORS®, the number of sales, and comments from other REALTORS® about multiple offers on properties.

Prices remained relatively flat, as predicted by Cameron Muir, Chief Economist of the BC Real Estate Association. There were 367 single family homes sold in April at a median price of $540,000, a 16% increase of homes sold over April 2012. Condominium sales were 149 at a median price of $265,000 and with 62 townhomes sold at a median price of $415,450. There are 4,585 active listings.

Total Waterfront Single Family Dwellings sold: 15, up 2 over April 2012
Total Non-waterfront Single Family Dwellings sold: 352, up 36 over April 2012
Single Family Dwellings sold over $1 million: 30 (5 over $2 million)

Stats Quick Reference

Listing Property Where One Owner is Deceased

Q – Can this deal complete with the title as is providing she supplies the lawyer with a death certificate? Or does the title need to be changed prior to completion?

A – In theory the deceased owner's interest has passed, on death, to the surviving joint tenant, so only Mrs. Client should be on the listing agreement.

Title can be transferred to the survivor by the filing of the death certificate at any time up to and including completion. However it is a good idea to have it taken care of in advance.

Home makeover shows give you the impression you can transform your house in a few short weeks. Real renovations are nothing like what you see on TV.  The expectations of consumers have been changed by the fancy reveals and glamour which TV brings to a renovation project.

The costs on TV aren't realistic.  You can't do a complete high-end kitchen reno for $20,000. The TV costs don't always factor in costs such as, donated materials and free labour. Do your research and make a realistic budget for your project.  Plan for 20% to 40% mark-up on the labour as you never know what you'll run into. (See below for a chart of costs vs home values realized)

Renovations take a long time.  On TV you will see the reno's go from conception to finished project in a few weeks. The timelines for TV are tight and renovations seem to take only days sometimes. Draw up a timeline with a contractor to have realistic expectations. Permits take time to get from city hall so factor in possible delays. Contractors aren't always readily available to start tomorrow and they usually book two to three months out. It is always a good idea to buy your materials ahead of time and give the contractor the ability to purchase the materials that they need if you can't obtain them yourself.  Plan the renovations in stages as you don't have to do everything at once. 

DIY isn’t as easy as it looks. Watching the hopeless couples on a TV reno show roll up their shelves and do some work makes it look easy.  In reality it is a lot harder to do unless you have some experience in the trades. Maybe you have an electrical background or drywalling experience which will save you money. Remember, you can't do it as well as a professional unless you’re a professional!

Paying for the renovation.  The option most used is a Line of Credit.   You might not have to pay it off right away and usually you just pay interest on the borrowed amount until your done borrowing. It is advisable to save a chunk on money in advance of the project. A high interest savings account inside a TFSA (Tax Free Savings Account) is a good place to put your money as it will be readily available. If you go the route of a line of credit secured against your home you will get a lower interest rate and but you might need to pay $700-$1200 for legal fees and appraisal. Make sure you have the cash flow to make payments and make a deadline to pay it off. Credit from lenders is usually extended if monthly debts are less than 40% of your gross income. If you can't pay the debt right away you can refinance and lock in at a cheap rate. Refinancing with a locked in rate can save you interest up front, shield you from variable-rate risk and pay lump sums based off the prepayment privileges of the lender. 

The reno may not add to your home's resale value. On the TV reno shows you will have seen the hosts tell the homeowners that doing a reno will net an increased home value. For example doing a $50,000 reno will add $80,000 to the value of the home.   The truth is that your have value will increase by 2/3 of the reno costs. If you do the wrong renovations or make a unpopular design choice the may get no return on your investment, or even decrease the value of the home.   Remember that your new kitchen is only considered new if you sell in the next couple of years otherwise it will have no impact on the amount buyers are willing to pay. 

Job Costs and Increases in Value! 

Cost (appr)                                                                                            Increase in home's value(appr)

Two-story addition -       $165,000                                                                        $105,000 

Master Suite addition -   $106,000                                                                       $ 62,000

Family Room addition -          $81,000                                                                 $ 49,000

Basement remodel -               $60,000                                                                 $ 40,000

Attic bedroom -                         $58,000                                                                 $ 30,000

Major Kitchen remdel -   $50,000                                                                          $35,000

Bathroom addition -        $40,000                                                                           $20,000

Home office remodel -   $19,000                                                                         $13,000

Bathroom remodel -       $15,000                                                                         $9,000

Deck addition -           $10,000                                                                               $8,000

Entry door -                  $1,000                                                                                 $1,000

This list gives you a glimpse into the approximate cost of renovations (always consult a licensed home contractor for exact costs) and the value they add to your home.

Adding a rental suite to your home always increases the homes value.. So count on at least a door and kitchen reno and you will be on your way (depending on your home setup).  

Stay current as to trends and in terms of renovations always be realistic as to the budget, length of time to complete and the extra costs that may come up. 

If you have any comments or suggestions please feel free to call or email me.

To your health,
Arran  

All the figures are approximate values and must be treated as such. Always consult a licensed builder and tax advisor for your unique situation.   

Asbestos and YOU!

Asbestos and buildings, how can it affect you? If not handled correctly, people are in danger of inhaling asbestos contaminated air and serious chronic health problems can result.

It is important to have a heighted awareness to asbestos when acquiring, disposing, renovating, and demolishing a property that may have materials that contain asbestos.  It is advisable to have an inspection done on a property to determine if there is asbestos in advance of undertaking any of the above mentioned activities.  Costs to remove asbestos can be very substantial.

WorkSafe BC outlines those buildings older than 1990 have a potential of containing asbestos. Materials that can contain asbestos include but are not limited to, insulations; shingles and felt for roofing; exterior siding; pipe and boiler covering; compounds and cement, such as caulk, putty, roof patching, furnace cement; drywall; texture coat; ceiling tiles; vinyl floor tiles; and wiring.  For more information on this check out WorkSafe BC’s website... www.hiddenkiller.ca