July 2017

Nearly a year ago, the provincial government implemented an additional 15 per cent Property Transfer Tax (PTT) for residential real estate purchases by foreign buyers in the Metro Vancouver region.

BCREA's Economics Department conducted a thorough analysis of the impacts of this policy. The Association created a simulation for the Real Estate Board of Greater Vancouver (REBGV) region, showing where sales would have been if the foreign buyers' PTT had not been implemented.

The result? Over time, the impact has been minor. 

http://web.bcrea.bc.ca/Connections/articles/2017-07_article3.html

Huffpost Canada

July 14.2017

They Raised the Interest Rate.....Now What?

They finally did it. After seven years, the Bank of Canada raised its rates to 0.75%. So what now?

HuffPost Canada business editor Daniel Tencer outlined what the rate hike could mean for most Canadians. If you're carrying debt in the form of variable-rate mortgages or lines of credit, the next few weeks would be a good time to review your finances to make sure that the new rates won't stretch your budget.

http://www.huffingtonpost.ca/2017/07/14/housing-newsletter-they-raised-the-interest-rate-now-what_a_23030268/?utm_hp_ref=ca-british-columbia

Vancouver Globe and Mail

Friday, June 2, 2017

The Vancouver region’s detached-housing market has turned hot again as the affordability crisis becomes a priority for the new political alliance formed by the BC NDP and Greens.

The average price for detached houses sold in Greater Vancouver reached a record of $1,830,956 in May, up 5 per cent from the same month in 2016 and just surpassing the previous high of $1,826,541 in January, 2016.

While the market for detached homes cooled in the second half of 2016, condos and townhouses experienced a short lull before continuing on a tear, smashing former highs. The average price for condos sold in Greater Vancouver last month hit a record of $656,919, up 15.1 per cent from a year earlier, and the average price for townhouses jumped 7.4 per cent to a new high of $858,994.

This week, the BC NDP formed a political alliance with the Green Party to co-operate, notably with plans to vote down the BC Liberals once Premier Christy Clark reconvenes the legislature. Reining in housing prices ranks high on the agenda for BC NDP Leader John Horgan and BC Green Party Leader Andrew Weaver.

https://www.theglobeandmail.com/real-estate/vancouver/vancouver-home-sales-edging-back-toward-record-levels/article35186406/

Royal LePage – The Homeowner Summer 2017

According to the Royal LePage House Price Survey, Canada’s residential real estate market saw substantial price growth in the first quarter of 2017. While the majority of Canadian housing markets posted modest gains, price appreciation across much of Ontario significantly outpaced the rest of the country. Meanwhile, the pace of home price appreciation in Greater Vancouver was noticeably lower than the historic highs witnessed in 2016, and for the first time since 2013, home values for the region as a whole declined on a quarterly basis.

In the first quarter of 2017, the price of a home in Canada increased 12.6 per cent year-over-year to $574,575. When broken out by housing type, the price of a two-storey home rose 13.9 per cent year-over-year to $681,728, and the price of a bungalow climbed 10.9 per cent to $490,018. During the same period, the price of a condominium increased 8.9 per cent to $373,768.

“For the first time in several years, real estate markets in Vancouver and Toronto are headed in opposite directions,” said Phil Soper, President and CEO, Royal LePage. “The Vancouver market stalled, as confused consumers took to the sidelines after a series of uncoordinated moves by all three levels of government. With its housing shortage becoming more acute, Toronto easily stepped forward to assume the title of Canada’s most overheated real estate market.”

Significant home price appreciation, caused by market dynamics similar to those that have driven housing activity in the Greater Toronto Area, is being seen across the entire “Golden Horseshoe” region of south-central Ontario, and as far away as Windsor and London in southwestern Ontario. In fact, the torrid pace of home price appreciation in much of Ontario contributed almost half of the national aggregate home price increase in the first quarter, with the rest of Canada appreciating by a healthy, but much lower, 6.4 per cent year-over-year when excluding all Ontario-based regions.

“The overall Canadian market is healthier in 2017 than it has been in years, yet the downside risks are greater too,” concluded Soper. “Our economy, which has recovered nicely from the 2014 oil crisis, is sadly dependent on moves by an unpredictable U.S. federal government and can be swayed by unforeseen global events, such as fallout from Europe’s restructuring. Still, housing activity is strong and prices are rising at a healthy mid-single-digit rate across the land. The trend in Alberta, Quebec and Atlantic Canada is particularly encouraging. Our concerns with the state of Canadian real estate begin and end in Toronto and Vancouver.”

Condominiums and townhomes in high demand across Metro Vancouver

VANCOUVER, BC – May 2, 2017 – Demand for condominiums and townhomes continues to drive the Metro Vancouver* housing market. Residential property sales in the region totalled 3,553 in April 2017, a 25.7 per cent decline compared to April 2016 when 4,781 homes sold and a 0.7 per cent decrease from the 3,579 sales recorded in March 2017. April sales were 4.8 per cent above the 10-year average for the month. For the first four months of the year, condominium and townhome sales have comprised a larger percentage of all residential sales on the Multiple Listing Service® (MLS®) in Metro Vancouver.

Over this time, they’ve accounted for 68.5 per cent, on average, of all residential sales. This is up 10 per cent from the 58.2 per cent average over the same period last year. “Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets,"

http://www.rebgv.org/sites/default/files/4.%20REBGV%20Stats%20Package%20April%202017%20%281%29.pdf

TORONTO — Royal LePage says early evidence suggests that the recent correction in Vancouver’s housing market may be short-lived.

The realtor released a report Tuesday saying Canada’s two largest real estate markets continued their divergence in the first quarter of the year.

The aggregate price of a home in the Greater Toronto Area rose by an “unprecedented” 20 per cent across all housing types to $759,241 in the first three months of 2017.

In the Greater Vancouver area, the price of a home rose 12.3 per cent year-over-year to $1,179,482.

Royal LePage CEO Phil Soper says the housing correction in Vancouver began seven months ago, around the time that the B.C. government introduced a 15 per cent tax on foreign nationals buying real estate in the city.

Sales volumes then plunged and prices slowed their torrid upwards trajectory.

But just in the past month, sales in the Vancouver area have leapt forward by close to 50 per cent on a month-over-month basis, says Soper — better than the seasonal average.

“An unfortunate side effect of heavy-handed regulatory intervention is that we risk market whiplash,” Soper said in a statement.

“In the coming weeks, it is possible that six months of pent-up demand will be unleashed on the market, sending prices sharply upward again; this when the pre-intervention 2016 trend was a natural market slowdown based on eroding affordability.”

Across Canada, the aggregate price of a home grew 12.6 per cent year-over-year to $574,575 during the first quarter, Royal LePage said.

The price of a two-storey home climbed 13.9 per cent year-over-year to $681,728, while the price of a bungalow rose 10.9 per cent to $490,018. Condo prices increased by 8.9 per cent to $373,768.

In Calgary, home prices were up 0.6 per cent to $461,635, while in Edmonton they rose 0.3 per cent to $381,733.

Royal LePage says early evidence suggests that the recent correction in Vancouver’s housing market may be short-lived.

The realtor released a report Tuesday saying Canada’s two largest real estate markets continued their divergence in the first quarter of the year.

Demand for homes continues to outpace supply in Metro Vancouver

VANCOUVER, BC – April 4, 2017 – A shortage of residential property listings coupled with strong demand, particularly for condos and townhomes, continued to impact Metro Vancouver’s housing market in March.

http://www.rebgv.org/sites/default/files/2017-01-March-Stats--Package.pdf

PRINCIPAL RESIDENCE EXEMPTION

For the 70% of Canadians who own a home, it is a place to live, raise a family, and connects them to their community.

Due to Canada’s tax system’s Principal Residence Exemption, when we sell our homes, any increased value or “capital gains” are not taxed.

This tax break matters to Canadian homeowners. Collectively, we have about $3 trillion in home equity and our homes are often our largest financial asset. However, starting with 2016 income tax returns, there are some changes in how homeowners qualify for the Principal Residence Exemption.

Until now, the Canada Revenue Agency has not required Canadians to report on a home sale during a tax season. However, if you sold your home in 2016 or later, you will need to complete a Schedule 3, Capital Gains of the T1 Income Tax and Benefit Return in order to report your sale.

The good news is that, in terms of taxes, nothing has changed. The same tax benefit is available to anyone who sells their home, provided the property was the principal residence for every year you owned it – even if you use part of your home for business purposes. There is no “new tax” involved, only a requirement you report the sale details on your tax returns.

The province unveiled changes to its foreign-buyer tax on real estate on Friday, exempting skilled workers immigrating here under the provincial nominee program and offering rebates to foreign buyers who put down roots as permanent residents.

https://www.vrbo.com/ListingPage.Mvc/InquiryConfirmed/988901?sid=vrbo&unitId=1536857

Mortgage Rate Outlook

After an initial upward adjustment in global interest rates following the US presidential election, bond markets have since adopted a wait and see approach to US economic policy. As a result, the yield on the benchmark five-year bond has stayed constant through the first quarter of the year. Consequently, Canadian mortgage rates have also remained relatively unchanged. However, we could see some upward movement in interest rates over the second half of 2017, due to a stronger Canadian economy and a large degree of policy incoherence in the United States.

http://www.bcrea.bc.ca/docs/economics-forecasts-and-presentations/mortgagerateforecast.pdf

WV MAYOR CALLS FOR RE-INVIGORATION OF WEST VANCOUVER

The mayor won the room but can the room win West Vancouver?

That was the question Wednesday night after Mayor Michael Smith beseeched the sold-out West Vancouver Yacht Club crowd to reinvigorate the community with new development and political advocacy.

“I’ve lost a lot of friends in the last few years,” Smith said. “They move out.”

- See more at: http://www.nsnews.com/news/mayor-calls-for-reinvigoration-of-west-vancouver-1.11514656#sthash.15LCC3KH.dpuf

http://www.nsnews.com/news/mayor-calls-for-reinvigoration-of-west-vancouver-1.11514656

City of North Vancouver Mayor calls for Downtown Subway Tunnel Study

City of North Vancouver Mayor Darrell Mussatto says it’s time to start discussing the possibility of a rapid transit line to downtown Vancouver via a tunnel under Burrard Inlet.

The North Shore has yet to see its long-promised third SeaBus and 10-minute rush- hour service but Mussatto said, it’s already time to start thinking longer term.

http://www.nsnews.com/news/city-of-north-vancouver-mayor-calls-for-downtown-subway-tunnel-study-1.10826638 

New bylaw allows coach house and secondary suite on single lot

February 28, 2017

You’re once, twice, three times more likely to find a residence on a single-family lot following the City of North Vancouver’s decision Monday.

But while council was unanimous in deciding to allow a home, secondary suite and a coach house on every single-family lot in the city, there was a little dissension on the move to require two parking spots.

- See more at: http://www.nsnews.com/news/north-vancouver-city-council-triples-homes-per-lot-1.10625107#sthash.AisbRZzV.dpuf

Vancouver, BC – February 22, 2017. On the heels of multiple government announcements in 2016 and early 2017, the British Columbia Real Estate Association (BCREA) welcomes the latest: an increase in the Property Transfer Tax exemption threshold for first-time buyers, announced in Budget 2017. The increase, to $500,000 from $475,000, takes effect today.

http://www.bcrea.bc.ca/docs/news-2017/2017-02-22bcbudget.pdf

Since receiving your property assessment recently in the mail, have you wondered  how this might affect your property taxes? The following link will explain the process....

https://www.youtube.com/watch?v=kEhzXBNfkOc&list=PLfsXSGK-4UHpUTRlH-47res4mwbw-aZPA&index=3

The City of Vancouver's Empty Homes Tax is applied annually. The first tax year began January 1, 2017.

The rate is 1.0% of the property’s assessed value.

Owners of non-principal residences that are unoccupied for six months or more each year will pay this tax.

http://www.rebgv.ca/content/rebgv/en/Guidelines-Rules-and-Legislation/Government-Legislation-and-Bylaws/Taxation/Local/empty-homes-tax/vancouver-empty-homes-tax-now-in-effect.html?

Many, if not most, first-time buyers will experience a steep decline in housing affordability on October 17. New rules introduced by the Federal Government will cause the sharpest drop in the purchasing power of low equity home buyers in years. At a time when housing affordability is a critical issue, deliberately chopping millennials’ purchasing power by as much as 20 per cent will only exacerbate a well-known problem.

http://www.bcrea.bc.ca/docs/economics-forecasts-and-presentations/millennials-bear-the-brunt-of-fed-policy-changes.pdf%5d

Government is appointing nine public-interest members to the Real Estate Council of British Columbia, increasing its accountability and objectivity in fulfilling its role of protecting the public interest, Finance Minister Michael de Jong announced today.

Robert D. Holmes is appointed as chair of the council. Holmes brings a wealth of legal expertise to the council, having worked as a litigation and arbitration lawyer for more than 32 years.

https://news.gov.bc.ca/releases/2016FIN0043-001983

Houses with large square footage have big carbon footprints.

That was one of the findings of Monday’s presentation that ended with West Vancouver council committing to lower the district’s carbon footprint by 40 per cent by 2040.

The sprawling ‘monster houses’ that occupy the district’s hills fell under scrutiny as the main contributor to the 260,000 tonnes of greenhouse gasses emitted annually by West Vancouver

http://www.nsnews.com/news/west-vancouver-s-monster-homes-add-to-greenhouse-gasses-1.2360330