VREB July 2018 News

Continued uncertainty brings predictable results for the Victoria real estate market

July 3, 2018  A total of 708 properties sold in the Victoria Real Estate Board region this June, 29.8 per cent fewer than the 1,008 properties sold in June of last year, and a 6.2 per cent decrease from May 2018. The sales of condominiums were down 25.1 per cent from last year in June with 230 units sold. Sales of single family homes were down 34.7 per cent from 2017 with 357 sold this June.

“June typically signals the conclusion of the busy spring market, and activity lightens into the summer,” says Victoria Real Estate Board President Kyle Kerr. “However, because of decelerating growth due to aggressive government implementation of policies to reduce demand, Victoria’s real estate market has been hobbled since the start of the year when federal restrictions around mortgage qualifications were rolled out. Even demand side measures that are not yet live, like the Vancouver/Kelowna/Nanaimo/Victoria-specific Speculation Tax, are dragging the market down as many consumers stand aside to watch what happens.”

There were a total of 2,595 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of June 2018, an increase of 8.4 per cent compared to the month of May and 35.5 per cent more than the 1,915 active listings for sale at the end of June 2017. 

“The good news is that inventory is slowly being added to the market, though we are still very far off from our ten year average inventory level of 4,100 listings” adds President Kerr. “The slower pace of the market has created more time for buyers who may have been hesitant to jump in during the high pressure market conditions of recent years. Homes are spending a bit longer on the market and there are fewer multiple offer situations than in the past, and if we see more listings over the next few months we may be heading back into a more balanced market situation. Every type and location of property is a separate segment of our market, and there are varying pressures and demands, so if you are buying or selling it is wise to take advantage of the services of your local REALTOR® to help navigate this changing market.” 

VREB June 2018 News

Price Pressure Continues on Lower-Priced Housing in the Capital Regional District

June 1, 2018  A total of 755 properties sold in the Victoria Real Estate Board region this May, 25 per cent fewer than the 1,006   properties sold in May of last year, and a 2.5 per cent decrease from April 2018. The sales of condominiums were down 17.4 per cent from last year in May with 237 units sold. Sales of single family homes were down 23 per cent from 2017 with 406 sold this May.

“It’s no surprise that our current market is very different than it was last year,” says Victoria Real Estate Board President Kyle Kerr. “Due to recent changes in mortgage qualification rules, many buyers’ purchasing power has been reduced. Unfortunately, in our area we have one third fewer single family homes for sale under $750,000 when compared to last year, so we’re seeing pressure from increased competition on a smaller number of homes, which is really pushing the under million dollar market. We have a much larger inventory of higher value homes this year. For listings priced at $1.5 million and above, the number of active listings is almost 50% higher than last year at this time.  Arguably, many of these properties may be listed due to new and incoming taxes from the provincial government. The Foreign Buyer Property Transfer Tax, the Speculation Tax, and the increased School Tax are putting pressure on those high value home owners. Unfortunately, these taxes are not resulting in what the government said it intends – to increase the availability of affordable housing.”

There were a total of 2,394 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2018, an increase of 19.6 per cent compared to the month of April and 26.3 per cent more than the 1,896 active listings for sale at the end of May 2017.

“We’re in an interesting time here – we are seeing different levels of price pressure and price relief in micro-climates of our area,” adds President Kerr. “You may find more flexibility if you are shopping for a multi-million dollar estate in certain areas. You may be in for a competition if you’re shopping for a lower priced home or condominium. If you’re thinking of buying or selling, it’s a good idea to meet with a local REALTOR® to understand how the current environment will affect you.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in May 2017 was $820,800, while the benchmark value for the same home in May 2018 increased by 7 per cent to $878,100, higher than April’s value of $866,700. The MLS® HPI benchmark value for a condominium in the Victoria Core area in May 2017 was $426,900, while the benchmark value for the same condominium in May 2018 increased by 15.7 per cent to $493,900, slightly lower than April’s value of $495,100.

About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Victoria Real Estate Board represents 1,362 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

VREB May 2018 News

Slower start to spring does not signal lower prices for Victoria real estate market

May 1, 2018  A total of 774 properties sold in the Victoria Real Estate Board region this April, 12.5 per cent fewer than the 885  properties sold in April last year, but a 12.5 per cent increase from the month previous. The sales of condominiums were down 21.6 per cent from last year in April with 225 units sold. Single family homes were 8.1 per cent down from the year previous with 420 sold this April.

“We’re now into the spring real estate market, which is traditionally the busiest time of the year for buying and selling homes,” says Victoria Real Estate Board President Kyle Kerr. “Last year, the months of May and June were the busiest, so we may see this pattern again but on a slightly smaller scale than last year, since our sales for the year thus far are down about 18 per cent when compared to 2017. Although January to March was quite far behind last year’s pace, we may see that margin get smaller as we progress through the spring months and people adjust to the new mortgage qualifying rules.”

There were a total of 2,002 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of April 2018, an increase of 13.4 per cent compared to the month of March and 18.5 per cent more than the 1,690 active listings for sale at the end of April 2017.

“We continue to see low inventory in our market, and good homes in desirable locations are still seeing multiple bids,” adds President Kerr. “One interesting development we are tracking is the increase of prices in a market of fewer sales. Part of the reason for this is that there is strong pressure on lower-priced properties. After the new mortgage rule changes this year, many consumers have seen a reduction in their buying power, so more are competing for lower-priced properties and in multiple offer situations, pricing is pushed up. Our area just doesn’t have the supply or mix of homes needed to meet the demand. We are working with government at all levels to identify ways to meet this demand in the CRD.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in April 2017 was $800,100, while the benchmark value for the same home in April 2018 increased by 8.3 per cent to $866,700, higher than March’s value of $859,400. The MLS® HPI benchmark value for a condominium in the Victoria Core area in April 2017 was $418,200, while the benchmark value for the same condominium in April 2018 increased by 18.4 per cent to $495,100, which is higher than March’s value of $490,000.

About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Victoria Real Estate Board represents 1,361 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

VREB April 2018 News

Outside Influences Impact Spring Real Estate Market in Victoria

April 3, 2018  A total of 688 properties sold in the Victoria Real Estate Board region this March, 25.9 per cent fewer than the 929 properties sold in March last year, but a 26.2 per cent increase from the month previous. The sales of condominiums were down 28.2 per cent from last year in March with 211 units sold. Single family homes were 30.8 per cent down from the year previous, with 337 sold this March.

“As we expected, March sales are tracking lower than in 2017,” says Victoria Real Estate Board President Kyle Kerr. “This is likely due to a number of factors that have created hesitation in consumers, including recent heavy measures by the provincial government to reduce the value of home prices and the federal government’s new mortgage qualification rules. Combine these factors with rising interest rates and you’ve got a housing market that is in transition due to outside influences. Every time there is intervention into a market, it takes a few months for the market to rebalance. With the continual changes of late from different levels of government, our market is experiencing a new cycle of ongoing uncertainty.”

There were a total of 1,766 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of March 2018, an increase of 14.3 per cent compared to the month of February and 13.5 per cent more than the 1,556 active listings for sale at the end of March 2017. 

“Despite all of the above, we continue to see benchmark price increases across our market and demand persists – partly due to low inventory – but also because of our highly desirable location,” adds President Kerr. “Specific areas and price points are experiencing varying pressure on price and demand – which creates micro-markets. We are still seeing multiple offers and above asking price sales in some segments. Active buyers in our market may see some relief as inventory is slowly growing. This showcases why it is important to work with your local REALTOR® in this transitioning market to ensure you have the most up-to-date information to make purchasing and selling decisions.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in March 2017 was $785,600, while the benchmark value for the same home in March 2018 increased by 9.4 per cent to $859,400, higher than February’s value of $840,300. The MLS® HPI benchmark value for a condominium in the Victoria Core area in March 2017 was $409,700, while the benchmark value for the same condominium in March 2018 increased by 19.6 per cent to $490,000, which is higher than February’s value of $472,600.

About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of Realtors. The Victoria Real Estate Board represents 1,354 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

VREB March 2018 News

Victoria Real Estate Market Adapts to Changing Policy Landscape

A total of 545 properties sold in the Victoria Real Estate Board region this February, 19.3 per cent fewer than the 675 properties sold in February last year. The sales of condominiums were down 15.5 per cent from last year in February with 174 units sold. Single family homes were 24.4 per cent down from the year previous, with 260 sold this February.

“We certainly anticipated that we would see some lower numbers this year compared to last,” says Victoria Real Estate Board President Kyle Kerr. “Right now prospective home buyers are met with many hurdles as they start shopping for their new home. They’re in a market that’s experienced long-term low inventory, which means more price pressure and competition on homes. Buyers are navigating increasing interest rates and the new mortgage stress test. These factors all combine to constrain our market. Like any changes to consumer experience, there is a period of response before consumers adapt to the new rules. We saw an increase in buyers in November and December who bought early to avoid the mortgage stress test, and this likely means less buyers in the current market. However, with continued historical low inventory levels, demand is still outpacing supply.”

There were a total of 1,545 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of February 2018, an increase of 3.6 per cent compared to the month of January and 0.5 per cent more than the 1,537 active listings for sale at the end of February 2017.

“The provincial government recently rolled out its budget, which includes an admirable commitment to spend six billion dollars to build 114,000 units in ten years,” adds President Kerr. “These units will take years to come to market, and it is difficult to predict how many we will see in Victoria. The government needs a long-term approach to supply needs in our area, and that initial commitment is a good start. A reasonable way to bolster their commitment and improve current conditions is for the province to work with our municipalities to reduce the timelines and costs associated with bringing new housing to our market.”

 

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in February 2017 was $771,100, while the benchmark value for the same home in February 2018 increased by 9 per cent to $840,300, slightly higher than January’s value of $831,900. The MLS® HPI benchmark value for a condominium in the Victoria Core area in February 2017 was $394,400, while the benchmark value for the same condominium in February 2018 increased by 19.85 per cent to $472,600, which is slightly higher than January’s value of $460,500.
About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of REALTORS®. The Victoria Real Estate Board represents 1,371 local Realtors. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

Probate Issues

Backlog!

Tejpaul Wirk from Mullin Demeo came and talked to us regarding Probate.  

Selling prior to probate

It is highly recommended that a property not be marketed until probate has cleared.  Selling prior to probate can cause collateral issues on all ends.

Avoiding probate fees:

A question came up regarding estate tax and probate. A property owner may consider putting their children’s names on title in order to save the probate fee (currently 1.4%). Tej said this can open a number of issues including exposure to Capital Gains Tax, and credit issues caused by debts incurred by a child.  In most cases it is safer to leave the title as is.  It is always prudent to talk to your lawyer and financial planner regarding estate issues.

Home Staging

Planning on selling your home but baffled by where to begin? Let a home stager give you hands on assistance and expertise to prepare your home with confidence. Home stagers excel in creating spaces that evoke strong emotional responses which say “buy me”. A stager will help you

View the home from a buyer’s perspective and advise you on what changes would add the most value.
Identify and eliminate negative distractions.
Highlight the best features and add WOW factor!
Choose paint colors that appeal to the broadest range of buyers.
Detail your home to be photo ready.
Furnish and accessorize empty, occupied and rebuilt properties.
A consultation can be as litte as $200, and up to several thousand for a complete staging project including furniture, delivery and takeaway.

VREB February 2018 News

Victoria Real Estate market begins the new year with low inventory and high demand

February 1st, 2018

A total of 431 properties sold in the Victoria Real Estate Board region this January, 9.8 per cent fewer than the 478 properties sold in January last year. The sales of condominiums were down 30.6 per cent from last year in January – with 118 sold. Single family homes were 4 per cent down from the previous year, with 215 selling in the first month of 2018.

“We expected January to be a bit slower after the increase in activity we saw in November and December, which was likely due in part to buyers entering the market early to avoid the new mortgage stress test,” says 2018 Victoria Real Estate Board President Kyle Kerr. “We have yet to see the full effect of the stress test, as many people attained a 90 -120 day pre-approval before the test became required January 1. We won’t know how much that stress test will affect the spring market until we see the numbers, and spring is also the time when sales traditionally pick up.”  

There were a total of 1,491 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2018, an increase of 7.7 per cent compared to the month of December and 1.6 per cent fewer than the 1,516 active listings for sale at the end of January 2017.  

“2017 concluded with very constrained inventory levels, which hit record lows early in January. The lack of inventory in our market is maintaining pressure on pricing, especially as high demand continues in many areas of Victoria,” adds President Kerr. “We can also see the effects of headwinds influencing our market in 2018, including attempts to curb demand at all levels of government. The mortgage stress test is the latest to be introduced, and we may learn of further measures later this month when the provincial budget is released. We hope the government takes a balanced approach to our housing market in their budget and offsets any further demand-side measures with initiatives aimed at addressing the ongoing supply shortages for both home buyers and renters.  We also encourage our local governments to take some time to assess the effects of demand-side measures like the mortgage stress test and recent interest rate hikes before introducing further restraints on our market.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2017 was $761,100. The benchmark value for the same home in January 2018 increased by 9.3 per cent to $831,900, slightly higher than December’s value of $823,800. HPI benchmark value for a condominium in the Victoria area in January 2017 was $375,300. The benchmark value for the same condo in January 2018 increased by 20.1 per cent to $450,600, which is slightly higher than December’s value of $445,000.

About the Victoria Real Estate Board – Founded in 1921, the Victoria Real Estate Board is a key player in the development of standards and innovative programs to enhance the professionalism of Realtors. The Victoria Real Estate Board represents 1,357 local REALTORS®. If you are thinking about buying or selling a home, connect with your local Realtor for detailed information on the Victoria and area housing market.

Courtesy Victoria Real Estate Board

 

Form B and Parking

If you have ever purchased a strata property you know how confusing the parking designation can be. Designations can include LCP (Limited Common Property), Common Property with spot assigned by Strata, and may also include a lease. Starting in January 2014 the Strata Form B document will have to include the parking information. It is always prudent to verify the information by viewing the Strata Plan, Common Property Title & General Index. This information is publicly available by visiting the Land Title Office. The General Index is particularity important is it may show a change in designation not evident on the Strata Plan. As an example parking may change from Common Property to Limited Common Property by way of a general resolution, outlined in the General Index.

Exclusive Buyer’s Agency

Most people understand the value of signing an agreement to work with a REALTOR® when it comes to selling their home. But let’s examine the value of signing a similar agreement – an Exclusive Buyer’s Agent contract – when it comes to buying a home.Understanding Agency In British Columbia, A Designated Agent is a specific agent within a brokerage that has been designated to work exclusively with a particular client. This legally separates that agent from all other agents within the brokerage as someone who will work solely for that client.
There are three types of agents: seller’s agent, buyer’s agent, and dual agent.

Seller or “listing” agents are legally obligated to represent the seller’s interests. This includes securing the best possible sale price with the terms most agreeable to the seller. It also includes maintaining absolute confidentiality for the seller and disclosing information about buyers or would-be buyers. The Seller agent’s absolute loyalty is to the seller, and only the seller.

A buyer’s agent represents only the buyer’s interests. The buyer’s agent has a duty to maintain the buyer’s absolute confidentiality, disclose information about the seller, research and advise the buyer on properties, and negotiate for the best possible price on behalf of the buyer.

Dual agency is when an agent or broker represents both the seller and the buyer and, to avoid conflict of interest by the REALTOR®, neither party can be fully represented. A REALTOR® in a dual agency is truly more of a referee or mediator for the transaction. Both the buyer and the seller must agree to allow the REALTOR® to act in a dual agency role.  Dual Agency will likely disappear in 2018, more details are to be released by the Office of the Superintendent of Real Estate this spring.

Advantages of Hiring a Buyer Agent
When you sign an Exclusive Buyer’s Agent contract, you are agreeing to “hire” a personal representative who, by law, must represent your interests to the best of his or her ability.
A buyer’s agent will start by thoroughly evaluating your specific needs to help you locate the right property. He or she will become your personal specialist, seeking out properties, providing property and neighbourhood information, and carefully analyzing the market to help you make informed decisions. He or she will take you to see the properties you are interested in, and help identify any problems or issues.

Once you find the perfect home, your buyer’s agent will thoroughly explain and prepare the many detailed forms necessary for a purchase, help you structure your offer, and present the offer on your behalf. He or she will negotiate hard for the best possible purchase price and terms, and continue to work with you to ensure a smooth closing.

A buyer’s agent can also help guide you in securing appropriate financing and offer references to other services like home inspectors, movers, lawyers, and home improvement contractors. These services are especially helpful to out-of-town buyers who may not be familiar with the area.

The Exclusive Buyer’s Agent contract
If you choose to hire a buyer’s agent then you should clarify this relationship in a written legal contract, an Exclusive Buyer’s Agent contract. This outlines the terms of the relationship between you and your buyer’s agent, including the purpose of the relationship, the services offered, the duration of the agreement, and the terms of compensation.Making expectations clear right from the start – and putting them in writing – helps ensure your expectations will be met.