Government adds new qualifying requirements for uninsured mortgages

june vancouver real estate market

Effective January 1, 2018, home buyers who don’t require mortgage insurance — those with a down payment of 20 per cent or more — must qualify for their mortgage at a higher rate.

This new stress test won’t apply to people renewing their uninsured mortgage.

Canada’s Office of the Superintendent of Financial Institutions (OSFI) announced these rule changes today. Draft changes were released in the summer for public feedback. (The Canadian Real Estate Association submitted this response to the draft rules in August on behalf of REALTORS® across the country.)

Under the new rules, the minimum qualifying rate for uninsured mortgages will be the greater of the Bank of Canada’s five-year benchmark rate or the contractual mortgage rate plus two per cent.

OSFI will also require lenders to enhance their loan-to-value (LTV) limits and restrict certain lending arrangements designed to circumvent LTV limits.

These changes apply to all federally regulated financial institutions.

This is the seventh time since 2008 that the federal government has made mortgage policy changes.

Read the government’s full announcement here.

Economic analysis from the BC Real Estate Association (BCREA):

“The impact of the new stress test requirement will be to lower the purchasing power of households by up to 20 per cent. Like past tightening of mortgage regulations, we anticipate that the market impact will be sharp but temporary. In the past, we’ve seen home sales decline in the three to nine months following the implementation of tighter mortgage lending standards, with the severity of the impact fading within one year. However, these new regulations impact a larger pool of mortgages and so the impact could be more significant than in the past,” said Cameron Muir, BCREA chief economist.

Greater Vancouver Real Estate Market Statistics – September 2017

Here are the latest Greater Vancouver real estate market statistics from Macdonald Realty on Greater Vancouver listings and sales in September 2017.

Vancouver

In the Vancouver Westside, there were 74 sales of detached homes and 871 active listings at the end of the month. The benchmark sale price was $3,653,500, with an average days on market of 59. The hottest market for sales was Dunbar with 12 sales.

In comparison, the condo market had 403 sales, 757 active listings and a benchmark sale price of $796,100 with an average of 26 days on market. The hottest market for sales was Downtown VW, 96 sales.

Townhome sales were 58, active listings were 129. The benchmark sale price was $1,265,100 with an average days on market of 29. Fairview VW and Kitsliano with 12 sales each were the hottest markets of the month.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_September2017_VanWest

The Vancouver Eastside had 95 sales and 801 active listings for detached homes at the end of the month. The benchmark sales price was $1,564,900, and the average days on market were 32. The hottest sales market was Killarney VE with 13 sales.

The condo market featured 129 sales, 184 active listing, and a benchmark sales price was $535,600. The average days on market were 17 days, and the hottest market for sales was Mount Pleasant VE with 37 sales.

The townhome market, on the other hand, had 32 sales and 50 active listings. The benchmark sale price was $851,200 with 23 average days on market. Champlain Heights and Mount Pleasant VE, with 6 sales each, had the most sales of the month.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_September2017_VanEast

North Shore

In September, the North Vancouver market had 74 sales and 376 active listings for detached homes. The benchmark sale price was $1,713,000 with an average days on market of 30. Lynn Valley with 13 sales had the most sales activity.

There were 108 sales and 156 active listings for condos. The benchmark sale price was $553,500 with 14 average days on market. The neighbourhoods of Lower Lonsdale with 31 sales was the hottest sales market.

Townhome sales were 23, active listings were 52, the benchmark sale price was $964,700, and the average days on market were 19. Edgemont with 3 sales had the most sales activity.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_September2017_NorthVan

The West Vancouver market had 35 sales and 551 active listings for detached homes. The benchmark sale price was $3,136,600 with 57 average days on market. Ambleside and Eagle Harbour with 5 sales each were the neighbourhoods with the most sales activities.

Condo sales were 17 and active listings were 54 at the end of the month. The benchmark sales price was $1,153,700 with an average days on market of 49. Ambleside had the most sales at 8.

In comparison, townhome market had 4 sales and 18 active listings.

It’s a buyer’s market for single family homes.

MarketHotSheet_September2017_WestVan

Tri Cities

In the Coquitlam market, there were 75 sales and 466 active listings for detached homes at the end of the month. The benchmark sale price was $1,280,600, and the average days on market were 34. Central Coquitlam with 19 sales experienced the most sales activity.

The condo market had 109 sales and 173 active listings. The benchmark sale price was $482,300 with 20 average days on market. The hottest market for sales was North Coquitlam, 50 sales.

Townhome featured 39 sales and 60 active listings. The benchmark sales price was $641,400 with an average days on market of 15. Burke Mountain with 14 sales had the most sales activity.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_September2017_Coquitlam

The Port Coquitlam had 41 sales and 99 active listings for detached homes. The benchmark sale price was $995,800 with an average days on market of 23. Mary Hill with 7 sales experienced the most sales activity of the month.

Condo featured 55 sales, 67 active listings, a $414,200 benchmark sales price, and 10 average days on market. Central Pt Coquitlam had the most sales activity at 47.

In comparison, townhome had 25 sales and 36 active listings. The benchmark sales price was $635,400 with an average days on market of 12. Riverwood was the hottest market with 13 sales.

It’s a seller’s market for all product types.

MarketHotSheet_September2017_PortCoquitlam

There were 17 sales and 104 active listings for detached homes in the Port Moody market. The benchmark sale price was $1,497,200, and the average days on market were 44. Heritage Mountain with 3 sales each had the most sales activity.

The condo market featured 24 sales, 50 active listings, $601,300 benchmark sale price, and 12 average days on market. Port Moody Centre, 19 sales, had most sales activity.

In comparison, townhome sales were 12, active listings were 23 and the benchmark sale price was $605,400. The average days on market were 12. Heritage Woods PM and Port Moody Centre, with 4 sales each, were the hottest markets for sales.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_September2017_PortMoody

Maple Ridge

In the Maple Ridge market, there were 123 sales and 392 active listings for detached homes at the end of the month. The benchmark sale price was $812,600, and the average days on market were 31. Albion with 21 sales experienced the most sales activity.

The condo market had 24 sales and 36 active listings. The benchmark sale price was $262,400 with 14 average days on market. The hottest market for sales was West Central, 12 sales.

Townhome featured 45 sales and 47 active listings. The benchmark sales price was $514,600 with an average days on market of 21. East Central with 18 sales had the most sales activity.

It’s a seller’s market for all product types.

MarketHotSheet_September2017_MapleRidge

The followings are the summaries of the surrounding areas:

Burnaby East

MarketHotSheet_September2017_BurnabyEast

Burnaby North

MarketHotSheet_September2017_BurnabyNorth

Burnaby South

MarketHotSheet_September2017_BurnabySouth

New Westminster

MarketHotSheet_September2017_NewWest

Richmond

MarketHotSheet_September2017_Richmond

Ladner

MarketHotSheet_September2017_Ladner

Tsawwassen

MarketHotSheet_September2017_Tsawwassen

Pitt Meadows

MarketHotSheet_September2017_PittMeadows

Bowen Island

MarketHotSheet_September2017_BowenIsland

Looking for more information about the real estate market in specific neighbourhoods in the Greater Vancouver?

Macdonald Realty has offices across the Greater Vancouver. Please email bijan@macrealty.com or call 1-604-365-0185 to reach a local expert in your area.

September 2017 Market Update

june vancouver real estate market

Home buyer demand continues to differ based on housing type.
Apartment and townhome activity is outpacing the detached home market across Metro Vancouver. This activity helped push total residential sales above the historical average in September.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,821 in September 2017, a 25.2 per cent increase from the 2,253 sales recorded in September 2016, and a 7.3 per cent decrease compared to August 2017 when 3,043 homes sold.

Last month’s sales were 13.1 per cent above the 10-year September sales average.

“Our detached homes market is balanced today, while apartment and townhome sales remain in sellers’ market territory,” Jill Oudil, REBGV president said. “If you’re looking to enter the market, as either a buyer or seller, it’s important to understand these trends and use this information to set realistic expectations.”

There were 5,375 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2017. This represents a 12 per cent increase compared to the 4,799 homes listed in September 2016 and a 26.6 per cent increase compared to August 2017 when 4,245 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,466, a 1.2 per cent increase compared to September 2016 (9,354) and a 7.5 per cent increase compared to August 2017 (8,807).

“Detached homes made up 30 per cent of all sales in September and represented 62 per cent of all the homes listed for sale on the MLS®,” said Oudil. “This dynamic has slowed the pace of upward pressure that we’ve seen on detached home prices in our market over the last few years.”

For all property types, the sales-to-active listings ratio for September 2017 is 29.8 per cent. By property type, the ratio is 14.6 per cent for detached homes, 42.3 per cent for townhomes, and 60.4 per cent for apartments.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,037,300. This represents a 10.9 per cent increase over September 2016 and a 0.7 per cent increase compared to August 2017.

Sales of detached properties in September 2017 reached 852, a 27.9 per cent increase from the sales recorded in September 2016 (666), a decrease of 33 per cent from September 2015 (1,272), and a decrease of 32.9 per cent from September 2014 (1,270). The benchmark price for detached properties is $1,617,300. This represents a 2.9 per cent increase from September 2016 and a 0.1 per cent increase compared to August 2017.

Sales of apartment properties reached 1,451 in September 2017, a 19.1 per cent increase compared from the sales recorded in September 2016 (1,218), a 5.1 per cent decrease from September 2015 (1,529), and a 22.1 per cent increase from September 2014 (1,188). The benchmark price of an apartment property is $635,800. This represents a 21.7 per cent increase from September 2016 and a 1.4 per cent increase compared to August 2017.

Attached property sales in September 2017 totalled 518, a 40.4 per cent increase compared to the sales recorded in September 2016 (369), a 4.8 per cent decrease from September 2015 (544), and an 11.6 per cent increase from September 2014 (464). The benchmark price of an attached home is $786,600. This represents a 14.5 per cent increase from September 2016 and a 1.1 per cent increase compared to August 2017.

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Macdonald Realty Luxury Homes Magazine | Autumn 2017

The latest edition of Macdonald Realty’s Luxury Homes Collection digital luxury homes magazine is now available! This publication showcases unique and luxurious homes listed with my company across the province.

Highlights of this Autumn 2017 issue include an exceptional condo in Downtown Vancouver, with an ensuite wall that turns into a window from the bedroom!

Simply click the cover image below to see the digital version!

Autumn 2017 Luxury Homes Collection Magazine

If you have a luxury home that you are considering selling and would like featured in the next edition of Luxury Homes Collection, check out my Luxury Home Marketing Program.

Greater Vancouver Real Estate Market Statistics – August 2017

Here are the latest Greater Vancouver real estate market statistics from Macdonald Realty on sales in August 2017.

Vancouver

In the Vancouver Westside, there were 52 sales of detached homes and 789 active listings at the end of the month. The benchmark sale price was $3,654,500, with an average days on market of 36. The hottest market for sales was Dunbar with 12 sales.

In comparison, the condo market had 407 sales, 698 active listings and a benchmark sale price of $787,400 with an average of 21 days on market. The hottest market for sales was Downtown VW, 103 sales.

Townhome sales were 47, active listings were 136. The benchmark sale price was $1,254,200 with an average days on market of 22. Fairview VW and Kitsliano with 11 sales each were the hottest markets in August.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_August2017_VanWest

The Vancouver Eastside had 115 sales and 771 active listings for detached homes at the end of the month. The benchmark sales price was $1,565,300, and the average days on market were 28. The hottest sales market was Killarney VE with 17 sales.

The condo market featured 143 sales, 152 active listing, and a benchmark sales price was $529,400. The average days on market were 16 days, and the hottest market for sales was Mount Pleasant VE with 46 sales.

The townhome market, on the other hand, had 24 sales and 53 active listings. The benchmark sale price was $858,500 with 17 average days on market. Champlain Heights with 6 sales had the most sales in August.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_August2017_VanEast

North Shore

In August, the North Vancouver market had 75 sales and 306 active listings for detached homes. The benchmark sale price was $1,711,100 with an average days on market of 31. Upper Lonsdale with 8 sales had the most sales activity.

There were 112 sales and 106 active listings for condos. The benchmark sale price was $551,000 with 17 average days on market. The neighbourhoods of Lower Lonsdale with 39 sales was the hottest sales market.

Townhome sales were 26, active listings were 49, the benchmark sale price was $968,400, and the average days on market were 15. Central Lonsdale, Hamilton Heights, Lower Lonsdale, and Lynn Valley, with 4 sales each, had the most sales activities.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_August2017_NorthVan

The West Vancouver market had 30 sales and 501 active listings for detached homes. The benchmark sale price was $3,189,500 with 40 average days on market. British Properties with 5 sales was the neighbourhood with the most sales activity.

Condo sales were 19 and active listings were 47 at the end of the month. The benchmark sales price was $1,128,000 with an average days on market of 36. Ambleside had the most sales at 11.

In comparison, townhome market had 0 sales and 13 active listings.

It’s a buyer’s market for single family homes and townhouses.

MarketHotSheet_August2017_WestVan

Tri Cities

In the Coquitlam market, there were 85 sales and 412 active listings for detached homes at the end of the month. The benchmark sale price was $1,279,200, and the average days on market were 34. Central Coquitlam with 19 sales experienced the most sales activity.

The condo market had 126 sales and 149 active listings. The benchmark sale price was $476,900 with 15 average days on market. The hottest market for sales was North Coquitlam, 46 sales.

Townhome featured 34 sales and 62 active listings. The benchmark sales price was $640,300 with an average days on market of 15. Burke Mountain with 11 sales had the most sales activity.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_August2017_Coquitlam

The Port Coquitlam had 48 sales and 117 active listings for detached homes. The benchmark sale price was $1,002,900 with an average days on market of 21. Glenwood PQ and Oxford Heights, with 7 sales each, experienced the most sales activities of the month.

Condo featured 45 sales, 50 active listings, a $412,200 benchmark sales price, and 12 average days on market. Central Pt Coquitlam had the most sales activity at 32.

In comparison, townhome had 18 sales and 38 active listings. The benchmark sales price was $642,800 with an average days on market of 23. Riverwood was the hottest market with 6 sales.

It’s a seller’s market for all product types.

MarketHotSheet_August2017_PortCoquitlam

There were 13 sales and 92 active listings for detached homes in the Port Moody market. The benchmark sale price was $1,491,300, and the average days on market were 50. College Park PM and Heritage Woods PM with 3 sales each had the most sales activities.

The condo market featured 33 sales, 30 active listings, $580,700 benchmark sale price, and 17 average days on market. Port Moody Centre, 22 sales, had most sales activity.

In comparison, townhome sales were 19, active listings were 16 and the benchmark sale price was $608,700. The average days on market were 15. North Shore Pt Moody, Pt Moody, and Port Moody Centre, with 5 sales each, were the hottest markets for sales.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_August2017_PortMoody

Maple Ridge

In the Maple Ridge market, there were 120 sales and 393 active listings for detached homes at the end of the month. The benchmark sale price was $803,800, and the average days on market were 26. Cottonwood MR with 20 sales experienced the most sales activity.

The condo market had 29 sales and 28 active listings. The benchmark sale price was $252,000 with 12 average days on market. The hottest market for sales was East Central, 15 sales.

Townhome featured 47 sales and 44 active listings. The benchmark sales price was $508,100 with an average days on market of 11. Cottonwood MR with 14 sales had the most sales activity.

It’s a seller’s market for all product types.

MarketHotSheet_August2017_MapleRidge

The followings are the summaries of the surrounding areas:

Burnaby East

MarketHotSheet_August2017_BurnabyEast

Burnaby North

MarketHotSheet_August2017_BurnabyNorth

Burnaby South

MarketHotSheet_August2017_BurnabySouth

New Westminster

MarketHotSheet_August2017_NewWest

Richmond

MarketHotSheet_August2017_Richmond

Ladner

MarketHotSheet_August2017_Ladner

Tsawwassen

MarketHotSheet_August2017_Tsawwassen

Pitt Meadows

MarketHotSheet_August2017_PittMeadows

Bowen Island

MarketHotSheet_August2017_BowenIsland

Looking for more information about the real estate market in specific neighbourhoods in the Greater Vancouver?

Macdonald Realty has offices across the Greater Vancouver. Please email bijan@macrealty.com or call 1-604-365-0185 to be get in touch with Bijan, the trusted local realtor in the Tri-Cities .

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MLS® Home Price Index (HPI) Benchmark Price

Average and median home prices are often misinterpreted, are affected by change in the mix of homes sold, and can swing dramatically from month to month (based on the types and prices of properties that sold in a given month). The MLS® HPI overcomes these shortcomings and uses the concept of a benchmark home, a notional home with common attributes of typical homes in a defined area. Visit www.housepriceindex.ca for more information.

This blog post is based on market data provided by the Real Estate Board of Greater Vancouver (REBGV) www.rebgv.org

OKANAGAN REAL ESTATE MARKET STATISTICS – JULY 2017

Here are the latest Okanagan real estate market statistics from Macdonald Realty on Okanagan listings and sales in July 2017.

Central Okanagan: Kelowna and Lake Country

There were 282 sales, 898 active listings, and a $692,838 average sale price for detached homes in the Central Okanagan market, including Kelowna and Lake Country. The average days on market were 41.

The condo market featured 169 sales and 424 active listings at the end of the month. The average sale price was $326,770 with 38 average days on market.

Townhome sales were 100, active listings were 263, average sale price was $464,463, and the average days on market were 41.

MarketHotSheet_July2017_CentralOkanagan

North Okanagan: Vernon and surrounding area

In North Okanagan, including Vernon and the surrounding area, the average sale price was $514,031 with an average days on market of 49 days for detached homes. At the end of the month, there were 142 sales and 387 active listings.

There were 19 sales and 93 active listings for condos. The average sale price was $210,609, and the average days on market were 67.

In comparison, townhome featured 41 sales, 89 active listings and a $316,774 average sale price with 46 average days on market.

MarketHotSheet_July2017_NorthOkanagan

Looking for more information about the real estate market in specific neighbourhoods in Okanagan?

Macdonald Realty has offices in Kelowna and across British Columbia. Please email bijan@macrealty.com or call 1-604-365-0185 to be matched with a REALTOR® working in your area.

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This blog post is based on market data provided by Okanagan Mainline Real Estate Board (OMREB) www.omreb.com.

GREATER VANCOUVER REAL ESTATE MARKET STATISTICS – JULY 2017

Here are the latest real estate market statistics from Macdonald Realty on the Greater Vancouver listings and sales in July 2017.

Vancouver

In the Vancouver Westside, there were 74 sales of detached homes and 768 active listings at the end of the month. The benchmark sale price was $3,666,200, with an average days on market of 36. The hottest markets for sales were Dunbar and South Granville with 9 sales each.

In comparison, the condo market had 397 sales, 797 active listings and a benchmark sale price of $783,700 with an average of 17 days on market. The hottest market for sales was Downtown VW, 100 sales.

Townhome sales were 40, active listings were 146. The benchmark sale price was $1,232,000 with an average days on market of 14. Fairview VW with 9 sales was the hottest market in July.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_July2017_VanWest

The Vancouver Eastside had 110 sales and 822 active listings for detached homes at the end of the month. The benchmark sales price was $1,561,700, and the average days on market were 22. The hottest sales market was Renfrew Heights with 15 sales.

The condo market featured 151 sales, 178 active listing, and a benchmark sales price was $524,700. The average days on market were 15 days, and the hottest market for sales was Mount Pleasant VE with 43 sales.

The townhome market, on the other hand, had 32 sales and 58 active listings. The benchmark sale price was $854,900 with 20 average days on market. Mount Pleasant VE, 9 sales, had the most sales in June.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_July2017_VanEast

North Shore

In June, the North Vancouver market had 81 sales and 344 active listings for detached homes. The benchmark sale price was $1,716,800 with an average days on market of 23. Canyon Heights NV and Lynn Valley with 10 sales had the most sales activity.

There were 79 sales and 136 active listings for condos. The benchmark sale price was $545,100 with 10 average days on market. The neighbourhoods of Lower Lonsdale with 27 sales was the hottest sales market.

Townhome sales were 37, active listings were 61, the benchmark sale price was $950,300, and the average days on market were 12. Central Lonsdale with 6 sales had the most sales activity.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_July2017_NorthVan

The West Vancouver market had 41 sales and 500 active listings for detached homes. The benchmark sale price was $3,180,000 with 64 average days on market. Ambleside with 6 sales was the neighbourhood with the most sales activity.

Condo sales were 11 and active listings were 56 at the end of the month. The benchmark sales price was $1,137,400 with an average days on market of 21. Ambleside had the most sales at 5.

In comparison, townhome market had 4 sales and 15 active listings; the average days on market were 14.

It’s a buyer’s market for single family homes.

MarketHotSheet_July2017_WestVan

Tri Cities

In the Coquitlam market, there were 92 sales and 405 active listings for detached homes at the end of the month. The benchmark sale price was $1,276,500, and the average days on market were 25. Central Coquitlam with 27 sales experienced the most sales activity.

The condo market had 139 sales and 147 active listings. The benchmark sale price was $459,400 with 15 average days on market. The hottest market for sales was North Coquitlam, 60 sales.

Townhome featured 40 sales and 60 active listings. The benchmark sales price was $631,000 with an average days on market of 23. Burke Mountain with 14 sales had the most sales activity.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_July2017_Coquitlam

The Port Coquitlam had 44 sales and 115 active listings for detached homes. The benchmark sale price was $995,400 with an average days on market of 23. Glenwood PQ with 10 sales experienced the most sales activity of the month.

Condo featured 46 sales, 37 active listings, a $401,000 benchmark sales price, and 13 average days on 10market. Central Pt Coquitlam had the most sales activity at 30.

In comparison, townhome had 26 sales and 25 active listings. The benchmark sales price was $625,300 with an average days on market of 9. Riverwood was the hottest market with 12 sales.

It’s a seller’s market for all product types.

MarketHotSheet_July2017_PortCoquitlam

There were 18 sales and 104 active listings for detached homes in the Port Moody market. The benchmark sale price was $1,446,300, and the average days on market were 60. Anmore with 4 sales had the most sales activity.

The condo market featured 36 sales, 34 active listings, $576,600 benchmark sale price, and 14 average days on market. Port Moody Centre, 29 sales, had most sales activity.

In comparison, townhome sales were 21, active listings were 18 and the benchmark sale price was $597,400. The average days on market were 11. North Shore Pt Moody with 8 sales was the hottest market for sales.

It’s a seller’s market for condos and townhomes.

MarketHotSheet_July2017_PortMoody

Maple Ridge

In the Maple Ridge market, there were 118 sales and 388 active listings for detached homes at the end of the month. The benchmark sale price was $793,600, and the average days on market were 21. Southwest Maple Ridge with 20 sales experienced the most sales activity.

The condo market had 38 sales and 30 active listings. The benchmark sale price was $236,900 with 26 average days on market. The hottest market for sales was East Central, 18 sales.

Townhome featured 52 sales and 39 active listings. The benchmark sales price was $500,600 with an average days on market of 10. Cottonwood MR with 17 sales had the most sales activity.

It’s a seller’s market for all product types.

MarketHotSheet_July2017_MapleRidge

The followings are the summaries of the surrounding areas:

Burnaby East

MarketHotSheet_July2017_BurnabyEast

Burnaby North

MarketHotSheet_July2017_BurnabyNorth

Burnaby South

MarketHotSheet_July2017_BurnabySouth

New Westminster

MarketHotSheet_July2017_NewWest

Richmond

MarketHotSheet_July2017_Richmond

Ladner

MarketHotSheet_July2017_Ladner

Tsawwassen

MarketHotSheet_July2017_Tsawwassen

Pitt Meadows

MarketHotSheet_July2017_PittMeadows

Bowen Island

MarketHotSheet_July2017_BowenIsland

Looking for more information about the real estate market in specific neighbourhoods in the Greater Vancouver?

Please email bijan@macrealty.com or call 1-604-365-0185 to speak with Bijan!

—–

MLS® Home Price Index (HPI) Benchmark Price

Average and median home prices are often misinterpreted, are affected by change in the mix of homes sold, and can swing dramatically from month to month (based on the types and prices of properties that sold in a given month). The MLS® HPI overcomes these shortcomings and uses the concept of a benchmark home, a notional home with common attributes of typical homes in a defined area. Visit www.housepriceindex.ca for more information.

This blog post is based on market data provided by the Real Estate Board of Greater Vancouver (REBGV) www.rebgv.org

6 Affordable Townhomes in Maple Ridge

July 2017 Market Update

june vancouver real estate market

Metro Vancouver sees fewer home sales and more listings in July

Home buyer activity returned to more typical summer levels in Metro Vancouver last month.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,960 in July 2017, an 8.2 per cent decrease from the 3,226 sales recorded in July 2016, and a decrease of 24 per cent compared to June 2017 when 3,893 homes sold.

Last month’s sales were 0.7 per cent above the 10-year July sales average.

“Housing demand is inconsistent across the region right now. Pockets of the market are still receiving multiple offers and others are not. It depends on price, property type, and location,” Jill Oudil, REBGV president said. “For example, it’s taking twice as long, on average, for a detached home to sell compared to both townhomes and condominiums.”

There were 5,256 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in July 2017. This represents a 0.3 per cent increase compared to the 5,241 homes listed in July 2016 and an 8.1 per cent decrease compared to June 2017 when 5,721 homes were listed.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,194, a 10.1 per cent increase compared to July 2016 (8,351) and an eight per cent increase compared to June 2017 (8,515).

“Because home sale activity decreased to more historically normal levels in July, the selection of homes for sale in the region was able to edge above 9,000 for the first time this year,” Oudil, said.

For all property types, the sales-to-active listings ratio for July 2017 is 32.2 per cent. By property type, the ratio is 16.9 per cent for detached homes, 44.9 per cent for townhomes, and 62 per cent for condominiums.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,019,400. This represents an 8.7 per cent increase over July 2016 and a 2.1 per cent increase compared to June 2017.

Sales of detached properties in July 2017 reached 949, a decrease of 11.9 per cent from the 1,077 detached sales recorded in July 2016. The benchmark price for detached properties is $1,612,400. This represents a 1.9 per cent increase from July 2016 and a 1.5 per cent increase compared to June 2017.

Sales of apartment properties reached 1,468 in July 2017, a decrease of 8.4 per cent compared to the 1,602 sales in July 2016. The benchmark price of an apartment property is $616,600. This represents an 18.5 per cent increase from July 2016 and a 2.7 per cent increase compared to June 2017.

Attached property sales in July 2017 totalled 543, a decrease of 0.7 per cent compared to the 547 sales in July 2016. The benchmark price of an attached unit is $763,700. This represents an 11.9 per cent increase from July 2016 and a 2.4 per cent increase compared to June 2017.

Capital Region Homeowners Consider Locking In After Interest-Rate Hikes | Times Colonist

b1-ray-jpg

Josh Ray is accompanied by his dog, Harley, outside his home in Saanich’s Glanford area on Wednesday. Photograph By DARREN STONE, Times Colonist

First-time homebuyers and owners about to renew their mortgages are nervous about the first benchmark interest-rate hike, a Victoria mortgage broker said Wednesday.

The increase, the first in nearly seven years, might prompt some people to lock in their mortgage rates, Colleen Flynn of Select Mortgage Group said. “It’s a concern for people. They are saying: ‘What’s this going to mean for me?’ ” she said. “I think more people are locking in to be cautious.”

Flynn said she’s also getting calls from homeowners who want to renew their mortgages early.

The Bank of Canada raised its key interest-rate target to 0.75 per cent from 0.5 per cent on Wednesday, prompting the five big banks to raise their prime rates a quarter of a percentage point. At the Royal Bank of Canada, that puts the prime rate at 2.95 per cent, up from 2.7 per cent.

Economists expect a gradual cycle of rate hikes amid rising confidence in the economy and projected growth.

Someone with a $540,000 mortgage over 25 years at an interest rate of 2.95 per cent would have monthly payments of $2,541, up from $2,473 at the lower rate. That $68 a month might not sound like a lot, Flynn said, but it takes earnings of $200 more a month to qualify for a mortgage at the higher rate.

“It’s going to affect their borrowing power,” she said.

Also, a greater share of the monthly payments will go toward interest, so the homeowner will pay $2,300 less toward their principal over five years, Flynn said.

Josh Ray and Nancy Schmidt, who are in their mid-30s, bought their first home in Saanich’s Glanford area on June 30.

Ray, a real estate agent and property manager, said the couple initially went with a variable rate of 2.3 per cent but switched to a fixed rate of 2.54 per cent once news broke of the rate hike.

The increased cost amounts to less than $100 a month and is manageable for them, since the home also has a rental suite.

“That’s still an amazing rate — it’s a no-brainer to lock into that,” Ray said. “They’re talking about raising [interest rates] two or three times this year.”

Ara Balabanian, president of the Greater Victoria Real Estate Board, said the interest-rate hike could push would-be buyers into the market in an attempt to beat another rate increase.

“I think the effects might be more psychological than real financial,” said Balabanian, a Managing Broker with Macdonald Realty Victoria. “There’s a lot of people who have been sitting on the sidelines watching [the market] and they might think, the rates are beginning to move up, maybe this is the time to go forward and buy something and lock it in. This low interest-rate environment will not continue forever.”

The interest rate is only one factor influencing the real estate market, and Balabanian said he doesn’t anticipate a major change in Greater Victoria house prices.

Mortgage broker Maria Dominelli said most first-time homebuyers have fixed mortgage rates, so the rate hike will not immediately affect them.

Variable rates tend to be lower but riskier, since the rates could rise. Borrowers seeking a variable-rate mortgage would have to qualify at the Bank of Canada benchmark of 4.64 per cent, “so there’s already that cushion built in for those borrowers to handle the ups and downs and ride the wave,” Dominelli said.

She said a period of consistent rate hikes could make it harder for people to get into the market.

“Let’s put it this way: It’s not going to make their bottom line any easier,” she said. “A higher rate will mean they have to take on a slightly higher debt load.”

The “bigger bombshell,” Dominelli said, would be the new stress test for uninsured mortgages being proposed by Canada’s banking regulator.

The new rules would mean homebuyers with a down payment of 20 per cent or more will have to show they can handle their monthly payments if interest rates rise.

Currently, only homebuyers with less than 20 per cent down — who must be insured by Canada Mortgage and Housing Corporation — are required to face the test.

“When these new rules come in, it’s going to be a rude awakening,” she said.


The article was originally posted on Times Colonist, July 13, 2017. Written by Katie Derosa.