New Mortgage Rules Now Official

Tougher Lending in Canada

Effective March 18, 2011, it will become harder to buy a new home or consolidate debt into your mortgage.
That's due to three new changes announced today by Finance Minister Jim Flaherty:

1. A 30-year maximum amortization on insured mortgages over 80% LTV
2. An 85% LTV limit on insured refinances
3. Elimination of government insurance on secured lines of credit (aka., HELOCs)

Flaherty says these regulations are meant to "(encourage) hard-working Canadian families to save by investing in their homes and future."

Here is the full press release:http://www.fin.gc.ca/n11/11-003-eng.asp

How will this affect the market and you?

It should stabilize prices and further prevent an over lending disaster like in the US. It will keep more highly leveraged speculators out of the market. It should keep rates lower because if rates increase and 30 year amortizations are all Buyers are allowed with less than 20% down, affordability for Canadians will become an issue.

Personally I am in favor of tougher lending laws as it protects home owners against a price crash and it protects Buyers from prices soaring beyond reason.

I believe strongly in the appreciation of the Vancouver Real Estate Market and fear Vancouverites will get priced out of the armlet as investors prey on lucrative rent/vacancy rates. I think lower monthly payments can be beneficial to first timers and locals, so I would encourage Buyers to make their move before the new law so they at least have the option of a 35 year amortization. Any Accepted and Firm offer dated before March 18th 2011 will still be eligible for 35 years amortizations.

The Canadian Real Estate Market is already very leverage today, hence the all time high prices, so slightly less leveraged prices should be good for the overall economics of the Real Estate Market.

Write stu@stubell.com with all questions, or call me anytime at 604.562.0532.

2011 BC Assessments Have Been Released

This January 2011, homeowners across the Lower Mainland and BC received their 2011 Property Assessment Notice.


In General, Assessment Values increased and the total assessed value increased 8%. In West Vancouver the increase was 13.03%, slightly ahead of 12.71% in Vancouver, 8.84% in the District of North Vancouver and 8.05% in the City of North Vancouver.


The largest increase in the Lower Mainland was Richmond at 17.04%.

The assessments are based on a market value approach with a valuation date of July 1, 2010. The figures are based on sales in a property owner’s area from January 1, 2010 to October 31, 2010.


The highest increase was in Mackenzie, BC at 21.25% and the largest decline was in Gold River at -8%.


Recreational Property of particular interest was a 2% decline in Whistler and no change in Kelowna.


Homeowners must remember that an increase in assessed value does not necessarily mean an increase in Taxes, you have to check to see if the Tax rate in your municipality has changed or if it is the same as 2010, the BC Assessment Authority has nothing to do with tax rates.


For the first time in British Columbia’s history, the value of all real estate on the annual provincial assessment roll has surpassed $1.0 trillion.


The actual (total) value of the 2011 assessment roll is $1,043,127,129,141 a increase of eight per cent over the 2010 roll total value of $970 billion.


BC Assessment is sending 2,066,261 assessment notices to British Columbia property owners, an increase of 5.5 per cent from last year’s total of 1,957,440. (Note: Several properties have multiple owners who may each receive an assessment notice.)


If you disagree with your property assessment you can dispute and get a re-assessment http://www.cd.gov.bc.ca/parp.


If you have any questions please feel free to contact Stu Bell anytime at 604.562.0532 or write me a stu@stubell.com.

December 2010 Greater Vancouver Real Estate Stats

January 5, 2011
December Stats Real estate market stable at year-end The Greater Vancouver residential housing market entered three distinctive phases in 2010. Continued buoyancy from the post-recession recovery began the year, followed by a summer lull and, throughout the fall, a sustained period of stability. The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2010 reached 30,595, a 14.2 per cent decrease from the 35,669 sales recorded in 2009, but a 24.2 per cent increase from the 24,626 residential sales in 2008. Last year’s number of housing sales was 10.3 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region. The number of residential properties listed for sale on the MLS® in Greater Vancouver increased 9.7 per cent in 2010 to 58,009 compared to the 52,869 properties listed in 2009. Compared to 2008, last year’s total represents a 7.3 per cent decline compared to the 62,561 residential properties listed in 2008. The number of properties added to the MLS® peaked in April and generally declined for the remainder of the year. “The last two years have been a bit of a rollercoaster for the real estate market. However, sales over the past six months have definitely shown a trend toward stability. We think that’s good news for home buyers and sellers,” Jake Moldowan, REBGV president said. “The Greater Vancouver housing market experienced a modest increase in home prices in 2010, and a continual decrease in the number of properties being listed for sale.” Residential property sales in Greater Vancouver totalled 1,899 in December 2010, a decrease of 24.5 per cent from the 2,515 sales recorded in December 2009—an all time record for the month—and a 24.3 per cent decline compared to November 2010 when 2,509 home sales occurred.  More broadly, last month’s residential sales represent a 105.5 per cent increase over the 924 residential sales in December 2008, a 0.1 per cent increase compared to December 2007’s 1,897 sales, and a 12.6 per cent increase compared to the 1,686 sales in December 2006. The residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 2.7 per cent to $577,808 between Decembers 2009 and 2010. However, prices have decreased 2.6 per cent since hitting a peak of $593,419 in April 2010. “Although we saw some pressure on home prices throughout the year, home values in 2010 remained relatively steady in the region compared to the last few years when we witnessed much more fluctuation,” Moldowan said. New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,699 in December 2010. This represents a 21.1 per cent decline compared to the 2,153 units listed in December 2009 and a 43.9 per cent decline compared to November 2010 when 3,030 properties were listed. Sales of detached properties in December 2010 reached 769, a decrease of 14.8 per cent from the 902 detached sales recorded in December 2009, and a 121.1 per cent increase from the 348 units sold in December 2008. The benchmark price for detached properties increased 4.0 per cent from December 2009 to $797,868. Sales of apartment properties reached 811 in December 2010, a decline of 29.7 per cent compared to the 1,154 sales in December 2009, and an increase of 94.5 per cent compared to the 417 sales in December 2008.The benchmark price of an apartment property increased 1.2 per cent from December 2009 to $387,115. Attached property sales in December 2010 totalled 319, a decline of 30.5 per cent compared to the 459 sales in December 2009, and a 100.6 per cent increase from the 159 attached properties sold in December 2008. The benchmark price of an attached unit increased 2.7 per cent between December 2009 and 2010 to $490,869. Download the complete stats package by clicking here. Follow the Board's social media sites on Twitter and Facebook!

Chinese Home Buyers Driving Vancouver Real Estate Market

Chinese Home Buyers in Vancouver, British Columbia

Vancouver BC has seen a decade of Real Estate Price appreciation and new Development. The price of Multi-million dollar estates, state-of-the-art Downtown Luxury Penthouses, and Waterfront Dream Homes have risen dramatically in the past 10 years. Some people call it a Real Estate Bubble, I like to call it Sustainable Demand for arguably the Best City in the World.

The Buzz for Vancouver must be experienced first hand to truly appreciate. In the winter gorgeous snow-capped mountains tower over the Northshore, and in the summer the beaches and the marinas are flooded with activity. A global selection of fine restaurants, excellent shopping, World-Class outdoor activities such as golf, skiing, and boating, and a thriving City Center filled with entertainment keeps Vancouverites alive and active.

The Chinese influence on Real Estate has been a factor in the increase in Vancouver Home Values since the turn of the new millennium, but in the past 6-8 months the number of Chinese Home Buyers coming from Mainland China and Hong Kong has intensified and boosted Home Prices by up to 50% in the past 2 years, with their focus being on Richmond, Vancouver's West Side, and now West Vancouver.

Vancouver West Side is a very prestigious part of Vancouver with excellent schools and safe neighborhoods. It has also been the hottest Real Estate in Vancouver and driven by offshore Chinese Buyers and Investors. Since August 2009, Chinese Real Estate Companies have been arranging tours of Chinese Buyers coming to Vancouver for a few days and often buying multiple properties with cash offers. The average detached Home Price in Vancouver's West Side is $1,698,925, up 46% from January 2009 of $1,165,007. There have been many cases of homes in communities such as Point Grey, Kitsilano, Dunbar, and Shaughnessy listing and selling within days for $300,000 or 25% over asking when a multiple offer scenario arises.

Richmond, BC is also a very popular suburb for Chinese immigrants and investors. Richmond has the finest Chinese Restaurants, Grocery Stores, and amenities, as well as a close proximity to YVR Airport with non-stop flights to China daily. Since January 2009 detached home prices have risen 33% to $920,410. The New Canad Line has made Richmond very accessible to and from Downtown Vancouver by Subway/Sky-train. The negatives are the flat landscape as it is built on deposits from the Fraser River and could be susceptible to flooding, and then the proximity to Vancouver.

West Vancouver is a luxurious, family-orientated community on The Northshore of Vancouver accessible by the Lions Gate Bridge and the Second Narrows Bridge. Home to some of Canada's most spectacular Real Estate. A sliver of paradise nestled between ocean and mountains boasting beaches, spectacular southern views, and first-class schools, parks, and amenities. Home values here took a big hit after the 2007 recession, and have recovered the slowest, presenting an excellent investment opportunity as demand, quality, and prestige remain high. The average detached home in West Vancouver is now $1,420,220, a 21.5% increase from January 2008 but still lower than the September 2007 average of $1,463,554. With the opening of a new T&T Chinese Supermarket at Park Royal in West Vancouver and the realization of how much more Real Estate Home Buyers can get for their Dollar in West Vancouver, Chinese Buyers are beginning to focus on West Vancouver.

While Richmond, Vancouver West, and West Vancouver are all safe Real Estate Investments, in 2011 I think the Detached Home market in West Vancouver is the Best investment. West Vancouver has not seen the steep increase that The Vancouver West Side has and could be due for another hot market as all signs indicate and new Chinese Buyers are exploring the communities of West Vancouver. Canada's stable banking system makes a US type over-lending disaster impossible, our rich natural resources are increasing wealth and interest in British Columbia, Canada's safe and desirable multi-cultural lifestyle, the superb educational system from Elementary to University, and the fresh and mild climate make Vancouver one of the most sought after and highly demanded Global Cities Worldwide. Continually ranked and voted #1 Livable City in the World, and still relatively inexpensive compared to other global cities, the future is bright for Vancouver.

Merry Christmas! Buyers get Agressive, Sellers be Patient!

Merry Christmas & Happy Holidays from mine to yours! The Christmas Holidays is an excellent time to spend with family, exchange gifts with loved ones, feast on turkey with all the fixings, and head up to Whistler to shred the slopes, but what about Real Estate?

I have received a few inquiries from clients interested in listing this December, and I have told them all the same thing, wait until the 1st or second week of January 2011. I strongly believe the first week of a listing is a critical period. In the first week all Buyers who have been searching and waiting for a property like yours with come to your open houses and request showings to view the property. If you are listed at the right price and your home is staged and shows well, then often in this first week you will receive a very good offer or ideally, multiple offers and sell for over asking. Therefor, December, when Buyers focus on their Christmas lists and entertaining guests, is not a good time to list as your critical first few weeks are compromised and when January comes around Buyers tend to jump on the New Listings while yours may appear as a dead listing with people skipping or driving by it with the assumption it hasn't sold for a reason.

As for listings that haven't sold, I would say it is personal preference to take off the market for Christmas or not. There is a benefit to canceling and re-lisintg in January as it will appear like a fresh listing and catch more eyes, but you also risk missing out on a motivated Buyer over the Holiday Season. I would cancel on Christmas Eve and re-list on the first Monday of 2011.

The other side of the game is the Buyers. There are a couple of reasons why I believe December to be a great time to write offers. Often Sellers who are listed at this time are motivated for a variety of reasons, and the thought of getting the sale over with before Christmas and New Years is very attractive. Often Sellers may need to close before year end for financial reasons. Another factor is uncertainty of the market in the New Year as December is often slow and Sellers can feel pressured to sell fearing a downturn or a slowstart to 2011. The final reason is the less likelihood for competing offers. A Buyer has a lot of power in a negotiation until another Buyer enters into the picture. Buyers, like Sellers, are busy during the Holidays and often wait until January when their lives ate less hectic and when product will undoubtedly come on the market. If you are a qualified Buyer who sees something you like then December may be the time to get an extra discount in a non-competitive situation. If you don't see the right place, then by all means wait until January and in the meantime meet with your mortgage broker to get pre-approved so you can win you dream home if a multiple offer scenario unfolds.

For all you Vancouver Real Estate inquiries please contact me anytime at 604.562.0532 or write me at stu@stubell.com.

Happy New Year Vancouver! Lets make 2011 unforgettable!