How do housing bubbles work? A look at Toronto and Vancouver’s Real Estate Market.
Credit: Vancouver Sun
One of the questions that I get asked regularly is “Why Use a Realtor?”
This video from the Real Estate Board of Greater Vancouver explains why you should use a Realtor in the purchase or sale of your next home
So why should you use me as your Realtor? I understand that in buying or selling your home you are making one the biggest decisions of your lifetime, and I will be with you every step of the way! My passion is real estate, and my hope is that once we’ve worked together, the next time you go through one of these big life transitions, you won’t want to do it with anyone else. For me, there is no bigger compliment than when a client sends their friends or family to work with me.
The program offers first-time home buyers who have saved a down payment:
A down payment loan of up to 5% of a home’s purchase price to a maximum of $37,500, on a home with a maximum price of $750,000.
This loan matches the buyer’s down payment and is interest-free and payment-free for five years. After five years, buyers can either repay their loan or enter into monthly payments at interest rates that are current five years from the date of the loan. Loans through the program are due after 25 years – the same length as most mortgages.
To qualify for the program, home buyers with a registered interest on title must reside in the home and be a:
1. Canadian citizen or permanent resident for at least five years;
2. Resident of BC for at least one year immediately preceding the date of application; and
3. First-time buyer who has not owned an interest in a residence anywhere in the world at any time.
The first-time home buyer must:
1. Use the property as their principal residence for the first five years;
2. Obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price; and
3. Have a combined, gross household income of all individuals on title not exceeding $150,000.
First-time home buyers can begin gathering the documents they’ll need to submit an online application.
Buyers will need:
1. Proof of status in Canada and residency in British Columbia.
2. Secondary identification (must include your photo).
3. Proof of income and tax filings.
4. Insured first mortgage pre-approval.
Reported by REBGV
Please see the chart below describing the Market Trends for December 2016 on the Sunshine Coast BC.
When buying or selling a home, everyone wants the most advantageous situation. Both buyers and sellers want “the best price,” but this definition varies: Home buyers want to purchase the desired property at a good deal, while sellers want to receive their asking price.
A Balanced Market is a perfect solution being that you sell and buy within the same market (which is a huge advantage for those who are risk adverse in the Real Estate Industry).
The Sunshine Coast market activity by the end of November 2016, continued to demonstrative above average levels of sale activity and steady increases in value, compared to the same period in 2015.
Current market activity trends indicate that 2016 has been the busiest year for transactions since 2003.
With high levels of buyer interest combined with historically low levels of properties being offered for sale, the market continues to move in favour of sellers in all segments of the market place as of the end of November 2016. The number of transactions have increased by 43% in 2016, when compared to the same period last year, resulting in average sales prices increasing of: $487,000 for detached homes (a 19% increase in 11 months); $297,500 for attached (a 10% increase in 11 months); and $198,000 for land sales ( a 5% increase in 11 months).
As a result of the consistently strong levels of activity for the last 12-18 months, the number of properties being offered for sale has fallen during the third quarter of 2016. Looking forward in 2017, we expect the market to continue being a sellers market. With the increase of sales volumes and prices from this year, we expect that the 2017 market will demonstrate the characteristics of a low supply – high demand marketplace with strong support for prices at current or higher price levels.
The latest assessed values of properties on the Sunshine Coast are now available online with estimated increases of up to 40 per cent in some cases:
“The 2016 assessments are indicating significant increases from 2015,”says Assessor Jason Grant. “Increases of 15-25 per cent will be typical for single-family homes in Vancouver, North Vancouver, West Vancouver, Burnaby, Tri-Cities, New Westminster and Squamish. Single-family market movement in Whistler, Pemberton and the Sunshine Coast is less dramatic, with typical increases in the zero to 15 per cent range. Typical strata residential increases throughout the region will be in the five to 10 per cent range.”
The assessed values of houses in B.C. can be found at E-Value BC.
On October 3, 2016, the federal government released new rules that apply to your ability to qualify for a mortgage. The following statements will be released.
To help ensure new homeowners can afford their mortgages even when interest rates begin to rise, mortgage insurance rules require in some cases that lenders “stress test” a borrower’s ability to make their mortgage payments at a higher interest rate. Currently, this requirement only applies to a subset of insured mortgages with variable interest rates or fixed interest rates with terms less than five years. Effective October 17, 2016 (TOMORROW), this requirement will apply to all insured mortgages, including fixed-rate mortgages with terms of five years and more. Homeowners with an existing insured mortgage or those renewing existing insured mortgages are not affected by this measure.
What does this mean?
1. As of October 17, 2016, any arranged mortgage that is an insured mortgage has to qualify at 4.64%. This means:
How this affects you?
Your purchasing power will likely decrease. Historically, clients have been able to qualify at the 5 year discounted rate (for example, current 5 year rates are at about 2.49%).
2. As of November 30, 2016, any mortgage that is back end insured (regardless of down payment amount or equity) has to qualify at 4.64%.
How this affects you?
The amount of equity that you can take from your owner occupied home could decrease, based on you ability to debt service. Although you can still mortgage up to 80% of the appraised value of your home, you will have to qualify at 4.64%.
3. As of November 30, 2016, any low-ratio insured loans (mortgages with more than 20% down) will have to comply to new criteria. Monoline lenders are notably lenders that do low -ratio insured mortgages.
How this affects you?
Property has to be owner occupied. No rental properties
Maximum amortization of 25 years
Maximum property purchase of $1,000,000
Minimum credit score of 600
For more information on these announcements please click on the following link:
First time on the market in 25 years! Well maintained home on a large, level 50×125 ft. lot (6,250 sq.ft.) with a south facing rear yard in prestigious Shaughnessy location. Surrounded by multi-million dollar homes, here is your opportunity to live in Shaughnessy with the potential to build your dream home. This home has been recently updated and includes 5 bedrooms plus office and 4 bathrooms in a desirable location. Two-level living with fully finished basement offers spacious living, dining and family rooms, bright kitchen with breakfast bar & eating area which opens to your south-facing sundeck and fully-fenced yard. This home has many original features: classic cross-hall formal living and dining room, gorgeous original hardwood flooring and wainscotting. The main level has a good-sized den, office and a 2 piece bathroom, while the upstairs features a big master with 3 piece ensuite and a second bedroom with a 3 piece bathroom. The lower level has a large recreation room, two bedrooms, 3 piece bathroom and a wine cellar. The backyard has a south-facing sundeck and detached 2.5 car garage with lane access. Central location, close to King Edward Mall, Queen Elizabeth Park & all amenities along Oak St, Cambie St & Granville St. Great schools: Emily Carr Elem., Eric Hamber Sec. Vancouver College, Little Flower Academy & UBC.
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