Vancouver Condo Selling Tips 7 – What Not To Do!

In How to Sell a Condo 6, we discussed home staging as a very effective way to get a property to look its best so it will sell for the most money in the shortest amount of time.

Today we are going to discuss what to avoid when preparing a condo for sale in Vancouver.

What NOT to Do When Selling a Condo in Vancouver!

In episode 5, we discussed the basics of what to do to get a condo ready for sale in Vancouver to make the condo attractive to the broadest possible audience.

There are also some things you want to avoid when preparing a condo for market in Vancouver and here are some of the most common examples:

• Major Renovations for Profit – There is a common myth in Vancouver that a major renovation on a condo will automatically result in a profit on the money spent on the reno. This is not always the case. If a property is dated, in bad condition, or has other issues, a major reno by qualified professionals could make sense. BUT, If you’re thinking of this option CONSULT with your REALTOR!
  
• Using Strong Smelling Air “Fresheners” – First impressions matter when selling a condo. Many prospective buyers may be turned off by the strong smell of air fresheners in a home. Also, many Buyers may question why a strong air freshener is being used. Is it masking a mouldy smell? Has the condo been smoked in? Is there some other issue or problem with the condo that normally would be noticeable if the air freshener was not used?
• Smoking Inside the Home – Most people in this day and age do not smoke and if they do, they smoke outside. Smoking in a condo creates a smell that is a major turn off for most of the prospective buyers of your condo, because most don’t smoke. Long term smoking inside the home also discolours and damages interior surfaces that will have to be fixed which costs money that a Buyer will not want to spend.
• Not Tidying – Many Buyers are turned off by mess (which kills the buying impulse) and a messy condo is going to look far smaller than a tidy condo. If they percieve the condo to be smaller than it is because its messy, they won’t want to pay top dollar.
• Not Cleaning – A property that is not clean will be an instant turn off for most Buyers. When selling a condo it is imperative to keep the property as clean as possible. Hiring a professional cleaner can be a great way to get the property to the standard it needs to be at for a sale ( I have some great cleaners if you need referrals).
• Allowing Clutter – Space is at a premium in most condos. A cluttered condo will feel waaay smaller than a de-cluttered property. If a condo is perceived as being small, it will be perceived as being worth less than a comparable property that is not cluttered.
• Over-Personalizing – Pictures of yourself and your family all over the condo do not help a prospective buyer imagine themselves living in the home. Exciting paint colours that you may love may put people off. Keep it neutral to appeal to the broadest possible audience!
• Displaying Controversial/Inappropriate Pictures/Symbols – We all have our opinions, viewpoints, and preferences. Some of these may be objectionable to a prospective buyer or make them uncomfortable. If Buyers are put off by a message or an image in your condo, there’s not a very good chance they’ll want to buy it.
• Leaving Loud/Aggressive Animals in the Condo – I am an animal lover, but leaving your large dog (or cat) in the suite likes to bark and jump up on people will not go over well during showings. At worst you may get a Buyer who is deathly scared of dogs (allergic to cats) that will run out of the suite screaming (I’ve seen it) or at best the prospective Buyer will be uncomfortable. Either way, this situation will not help the sale. (Just to clarify, you don’t have to get rid of your pet, but just keep boisterous ones out of the property during showings.
• Buying New Large Dark Over Stuffed Furniture for the Sale – The size, shape, and colour of furniture can have a major impact on how big or small a condo feels. Large, dark, overstuffed, or tall furniture can do a lot to make a space feel smaller than it is. Best is to go with light coloured, small, sleek furniture that has lots of glass or reflective surfaces.
• Leaving Repairs Undone – Most Buyers do not know how much repairs to condos cost. Most over-estimate the cost and hassle of such repairs. Repairs left undone will turn buyers off, because they think they will have to pay the cost and deal with the hassle of the repair. Hassle and cost is not conducive to the buying impulse.

Any questions on getting your condo ready for sale? Feel free to call me at any time by clicking on the “For Sellers” button above and filling out the form or call me at 604-763-3136

Stay tuned for Episode 8 of How to Sell a Condo in Vancouver, When to Sell Your Condo in Vancouver!

Looking for Vancouver Presale Condos? Have a look at this great Map of Vancouver Presale Condos!

Worried about Buying a Leaky Condo? Check out this great video explaining How to Avoid Leaky Condos!

April 2012 REBGV Stats Package Mike Stewart

Greater Vancouver housing market maintains a steady spring pace

Home sale and listing activity has maintained a consistent pace on the Multiple Listing Service® (MLS®) in Greater Vancouver in recent months, which has helped create balanced conditions for the region’s housing market.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,799 on the Multiple Listing Service® (MLS®) in April 2012. This represents a 13.2 per cent decline compared to the 3,225 sales recorded in April 2011 and a decline of 2.6 per cent compared to the 2,874 sales in March 2012.

April sales were the lowest total for the month in the region since 2001 and 16.9 per cent below the 10-year April sales average of 3,369.

“Although April sales were below what’s typical for the month, we continue to see, with a sales-to-active listing ratio of nearly 17 per cent, a balanced relationship between buyer demand and seller supply in our marketplace,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,056 in April 2012. This represents a 3.6 per cent increase compared to both March 2012 when 5,843 homes were listed and April 2011 when 5,847 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 6.7 per cent above the 10-year average for listings in Greater Vancouver for April.

At 16,538, the total number of homes listed for sale on the region’s MLS® increased 8.5 per cent in April compared to last month and increased 16 per cent from this time last year.
“Recent activity has had a stabilizing effect on home prices at the regional level, although pricing can vary depending on area and property type,” Klein said “To best understand conditions within your area of interest, it’s important to do your homework and consult a local REALTOR®.”

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $683,800, up 3.7 per cent compared to April 2011 and an increase of 2.8 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland is $612,000, which is a 3.4 per cent increase compared to April 2011 and a 2.6 per cent increase compared to three months ago.

Sales of detached properties on the MLS® in April 2012 reached 1,126, a decline of 19.7 per cent from the 1,402 detached sales recorded in April 2011, and a 17.8 per cent decrease from the 1,370 units sold in April 2010. The benchmark price for detached properties increased 6.3 per cent from April 2011 to $1,064,800.

Sales of apartment properties reached 1,190 in April 2012, a decline of 0.9 per cent compared to the 1,201 sales in April 2011, and a decrease of 22 per cent compared to the 1,526 sales in April 2010.The benchmark price of an apartment property increased 1.1 per cent from April 2011 to $375,900.

Townhome property sales in April 2012 totalled 483, a decline of 22.3 per cent compared to the 622 sales in April 2011, and a 21.6 per cent decrease from the 616 townhome properties sold in April 2010. The benchmark price of a townhome unit increased 1.7 per cent between April 2011 and 2012 to $487,300.

Looking for More Vancouver Real Estate Statistics?!

Have a look at all the REBGV Monthly Statistics from May 2010!

How Much Does it Cost to Sell a Property in Vancouver?

Check out How Much with this Great Video on Vancouver Real Estate Commissions!

New Relief for First Time Home Buyers and Increased HST Rebate for New Homes & Others!

I recently had the pleasure of interviewing Sean Akeroyd of Akeroyd Leung in Vancouver about some changes to the HST in the 2012 BC Budget and here’s what’s new:

First-Time New Home Buyers Bonus

The 2012 British Columbia Budget has some great goodies for the first time buyers of newly built properties. Effective February 21, 2012, to March 31, 2013, the $10,000 B.C. First-Time New Home Buyers’ Bonus will give a temporary, refundable income tax credit for first-time buyers purchasing newly-built homes.

Rebate Boosted for Newly Built Homes

Effective April 1, 2012, the current HST rebate threshold for home purchases increases to $850,000. More than 90 per cent of newly built homes are below that price. Purchasers will now be eligible for a provincial HST rebate of up to $42,500. And, for the first time, purchasers of new secondary vacation or recreational properties built outside the GVRD and Capital Regional District priced up to $850,000 will be eligible to claim a provincial grant of up to $42,500, effective April 1, 2012.

A Renovation Tax Credit for Seniors

We are introducing a Seniors Home Renovation Tax Credit worth up to $1,000 a year, helping B.C. seniors stay in their homes longer and also supporting the home renovation sector. It will be available to seniors or family members sharing their home, whether they rent or own, and help to reduce the costs of structural changes, such hand rails, ramps or walk-in bathtubs.

Remember folks!

Please do not make investment decisions based on this information. I am not an Accountant and I am not giving tax advice. Certain situations nullify the credits or bonuses. Always contact your tax advisor or accountant prior to engaging in such transactions

2012 BC Budget Highlights

Looking to Calculate an HST Rebate?

Check out this great HST Rebate Calculator!

Thinking of getting a 35 or 40 year Amortization on a Mortgage?

Check out this great 40 year Canadian Mortgage Calculator!

March 2012 REBGV Stats Package Mike Stewart

Increased selection helps maintain balance in Greater Vancouver housing market

Home sales in March trended below the 10-year average in Greater Vancouver while home listing activity outpaced what’s typical for the month.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,874 on the Multiple Listing Service® (MLS®) in March 2012. This represents a 12.9 per cent increase compared to the 2,545 sales recorded in February 2012, a decline of 29.6 per cent compared to the 4,080 sales in March 2011 and an 8.4 per cent decline compared to the 3,137 home sales in March 2010.

March sales in Greater Vancouver were the second lowest total for the month in the region since 2002 and were 16.8 per cent below the 10-year sales average for the month.

“Home sellers have been more active than buyers the first few months of the year, but we continue to see a relative balance in the total supply of homes for sale and current demand in the marketplace,” Eugen Klein, REBGV president said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,843 in March 2012. This represents a 5.2 per cent increase compared to February when 5,552 homes were listed and a 14 per cent decline compared to March 2011 when 6,797 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 4.5 per cent above the 10-year average for listings in Greater Vancouver for March.

At 15,236, the total number of residential property listings on the MLS® increased 8.4 per cent in March compared to last month and increased 16 per cent from this time last year.
“The total number of properties for sale in Greater Vancouver has increased each month since December, which means there’s more selection to choose from as we enter what’s traditionally the busiest season of the year in our market,” Klein said.

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $679,000, up 5.3 per cent compared to March 2011 and an increase of 1.1 per cent compared to February 2012. The benchmark price for all residential properties in the Lower Mainland is $607,700, an increase of 4.8 per cent compared to March 2011.

Sales of detached properties on the MLS® in March 2012 reached 1,183, a decline of 34.1 per cent from the 1,795 detached sales recorded in March 2011, and an 11.5 per cent decrease from the 1,336 units sold in March 2010. The benchmark price for detached properties increased 9.2 per cent from March 2011 to $1,056,400.

Sales of apartment properties reached 1,191 in March 2012, a decline of 26.6 per cent compared to the 1,622 sales in March 2011, and a decrease of 4.9 per cent compared to the 1,252 sales in March 2010.The benchmark price of an apartment property increased 2.2 per cent from March 2011 to $375,100.

Townhome property sales in March 2012 totalled 500, a decline of 24.6 per cent compared to the 663 sales in March 2011, and an 8.9 per cent decrease from the 549 townhome properties sold in March 2010. The benchmark price of a townhome unit increased 0.9 per cent between March 2011 and 2012 to $480,900.

Looking for More Vancouver Real Estate Statistics?! Check out all the REBGV Monthly Stats from May 2010!

Canadian Mortgage Calculator for Vancouver Real Estate with Amortizations up to 40 Years

I am both a property owner in Vancouver and a Realtor. I am constantly watching the mortgage market here in Canada to see how changes to mortgage interest rates and amortization affect both the Vancouver real estate market and my personal real estate holdings.

The current ultra low mortgage rates (Like 2.99% on a 5 Year Fixed Rate Mortgage!?) have really focused my mind on mortgages and one of the things I use online A LOT (OK, compulsively, all the time) is a mortgage calculator.

Frustration with Online Mortgage Calculators

Consistently finding a good Canadian mortgage calculator that could work for both investors and owner occupiers was quite frustrating for me. In using online mortgage calculators I noticed that many of the calculators I found are specific to the US and not Canada.

This mortgage calculator you see above is proudly Canadian and Canadian made! Among the Canadian mortgage calculators, I also noticed that they could not do long amortizations out to 40 years.

Why are 40 Year Amortizations on this Mortgage Calculator?

In the Spring of 2011, Canada’s Department of Finance changed the amortization rules so that INSURED mortgages could not have an amortization longer than 35 years.

But keep in mind, that is ONLY for mortgages INSURED by the CMHC which are at 80% loan to value (ie a property where the mortgage is less than 80% of the properties value, like a property worth $1 that has a mortgage on it for $.80 or less).

Amortizations of up to 40 years are still allowed in Canada?

YES! Mortgages that are low ratio (ie less than 80% loan to value) amortizations of up to 40 years are still allowed!. These longer amortizations can be be useful and powerful for investors (but are not for everyone!). The rarity of decent Canadian Mortgage Calculators with amortizations of up to 40 years is a major reason I had this calculator set up on my site.

Just to clarify, you can get up to a 40 year amortization on low ratio mortgages!

I would love to hear your thoughts and comments on this Canadian Mortgage Calculator that is good for amortizations out to 40 years!

Worried about Buying a Nightmare Condo in Vancouver? Check out this great post on How To Avoid Leaky Condos!

Thinking of Getting a Mortgage on a Presale Condo in Vancouver? Check out this great video on Mortgages for Presale Condos in Vancouver!

Are High Strata Fees Bad? Are Low Strata Fees Good?

When buyers are looking at condos to purchase in Vancouver, many focus on the maintenance/strata fee and generally feel that a low strata fee is a good thing and a high strata fee is a bad thing.

In many cases, this is not the correct conclusion. Why?

Good Car, Bad Car

Cars and condos are a lot alike, especially when it comes to the relationship between maintenance and repairs and how this impacts their future value.

Consider the example of two high end good quality automobiles that were exactly the same and bought brand new.

Car A is never ever taken in for service or maintenance, never washed, oil never changed, fluids never refilled, and nothing was ever repaired on the car including damage and normal wear and tear.

In this example the maintenance costs would be zero.

Now imagine the same car, we’ll call it Car B.

Car B was bought at the same time and well maintained, washed, serviced, and repaired in a consistent and timely manner by qualified professionals and all the work was fully documented.

The maintenance cost for Car B would have been far higher than for Car A and because it was a high end good quality car, the maintenance fees may be higher than for other cars that aren’t quite as good.

Which car would you want to buy as a 5 or 10 year old used car? Which car would be worth more to you?

Lower Strata Fees Can Cost ME More in the Future?!

Yes! All condo buildings require and maintenance and repairs, especially in rainy Vancouver, BC! If required maintenance and repairs are not done properly in a timely manner they will lead to more and in most cases far more costly problems.

Aside from making life in the building miserable, a lack of proper maintenance and repairs to the building will reduce the value of suites in the building both now and in the future.

Remember, an ounce of prevention is worth a pound of cure.

Higher Strata Fees can save ME Money in the Future?

Yes! Condominium buildings, in order to perform as designed over their predicted lifespan, need to be regularly maintained and repaired by qualified professionals in a timely manner. (INCLUDING brand new condo buildings!)

This work costs money. This money can be raised with either higher strata fees or assessments/special levies (either way the cost to condo owners is the same).

If the work is done correctly, it is at worst the minimum necessary to maintain value of the suites in the building and will keep maintenance and repair costs lower in future. At best good maintenance and consistent repairs can result in the building standing out as a good building as it ages that should cause it to be worth far more in future than its less well maintained neighbours.

How do We Know if Enough is Being Spent on Maintenance?

For both condo buyers and condo owners, the first step is reading the condo’s strata documents. A well maintained condo building will disclose issues and will deal with the promptly and transparently. Be wary of buildings that never mention repairs or maintenance in the minutes!

Where is the money going? Is it being spent on maintenance and repairs? If so, what is being done and what are the issues? For buyers, have your qualified home inspector read the condo documents and relate what they read to what they see physically in the building in terms of maintenance and repairs to ensure the work is actually being done.

For condo owners, be rigorous and ask questions! After all, this is your money that is being spent on your property paid for with your hard earned money!

Other Good Reasons Strata Fees May Be High

Older buildings tend to require more work than newer buildings. Older condos that are not using assessments to raise money for maintenance and repairs may be financing required work with higher strata fees. This is a good thing.

A Concierge is a popular yet relatively amenity in a condo building. For investors, it provides an extra set of eyes on a revenue property and provides many services popular with tenants a landlord would otherwise have to spend time dealing with (Time is money!). For owner/occupiers a Concierge provides extra security, convenience, and an accessible contact for building issues and concerns. A pool, sauna, hot tub, bowling alley are popular with tenants and for owner/occupiers may be less costly than membership fees for the same services elsewhere.

Central Air Conditioning, Central Hot Water Heat, and an Internet Connection included in the maintenance fee (Like the Woodwards Building) can also increase a strata fee, but be less expensive for an owner from a total cost perspective.

When Low Strata Fees are Good and High Strata Fees are Bad

Older simple condo buildings without any amenities that have recently undergone major repairs such as rainscreening and brand new simple condo buildings very often have lower strata fees. This is because the newer condo building is under warranty and is just newly completed, so maintenance requirements are low as with newly rainscreened older condo buildings. For the most part, the lower maintenance fess should be alright as long as there is a budgeted professional maintenance plan and the work is being done properly in a timely manner.

High strata fees are bad when the condo’s Strata Council in a building is paying for expensive Band-Aid measures to avoid an even greater cost to perform far more costly work that is what has been recommended by an Engineering Company or other professionals. Another example of when high strata fees are bad is when certain costs associated with a building may be excessive without a reasonable explanation.

Wondering at the Cost to Hire a Realtor to Sell Your Condo?

Have a look at this Informative Video on Real Estate Commission Rates in Vancouver!

Worried about Buying a Vancouver Condo that Leaks?

Check out this Great Video with a great explanation of Leaky Condos in Vancouver!

February 2012 Real Estate Board of Greater Vancouver Statistics Package

Greater Vancouver housing market trends near long-term averages as spring market approaches

Closer alignment between home buyer and seller activity helped bring greater balance to the Greater Vancouver housing market in February.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,545 on the MLS® system in February 2012. This represents a 61.4 per cent increase compared to the 1,577 sales recorded in January 2012, a decline of 17.8 per cent compared to the 3,097 sales in February 2011 and a 2.9 per cent increase from the 2,473 home sales in February 2010.
February sales in Greater Vancouver were the third lowest February total in the region since 2002, though only 151 sales below the 10-year average.

“With a sales-to-active-listings ratio of over 18 per cent, we see fairly balanced conditions in our marketplace as we move into the traditionally busier spring season,” Rosario Setticasi, REBGV president said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,552 in February 2012. This represents a 2.5 per cent decline compared to February 2011 when 5,693 properties were listed, and a 3.5 per cent decline compared to January 2012 when 5,756 homes were added to the MLS® in Greater Vancouver.

Last month’s new listing count was the second highest February total in Greater Vancouver since 1996.
At 14,055, the total number of residential property listings on the MLS® increased 12 per cent in February compared to last month and increased 17.9 per cent from this time last year.
“Region-wide we’ve seen relative stability in home prices over the last six months, but it’s important to do your homework and consult your REALTOR® because pricing can vary considerably depending on the neighbourhood and property type,” Setticasi said.

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $670,900, up 6 per cent compared to February 2011 and an increase of 0.9 per cent compared to January 2012. The benchmark price for all residential properties in the Lower Mainland is $601,300, an increase of 5.5 per cent compared to February 2011.

Sales of detached properties on the MLS® in February 2012 reached 1,101, a decline of 21.5 per cent from the 1,402 detached sales recorded in February 2011, and a 12 per cent increase from the 983 units sold in February 2010. The benchmark price for detached properties increased 10.5 per cent from February 2011 to $1,042,900.

Sales of apartment properties reached 1,020 in February 2012, a decline of 15.4 per cent compared to the 1,206 sales in February 2011, and a decrease of 5 per cent compared to the 1,074 sales in February 2010. The benchmark price of an apartment property increased 2.8 per cent from February 2011 to $373,300.

Townhome property sales in February 2012 totalled 424, a decline of 13.3 per cent compared to the 489 sales in February 2011, and a 1.9 per cent increase from the 416 townhome properties sold in February 2010. The benchmark price of a townhome unit increased 0.7 per cent between February 2011 and 2012 to $472,800.

Looking for More Stats?! Check out all the Real Estate Board of Greater Vancouver Stats from May 2010!

January 2012 REBGV Stats Package

Selection broadens and demand eases to kick off 2012 in the Greater Vancouver housing market

VANCOUVER, B.C. – February 6, 2012 – Greater Vancouver home sellers were more active
than buyers in January and overall home prices, according to the new MLS® Home Price Index
(MLS® HPI), continued to experience more stability and less fluctuation compared to the
beginning of 2011.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in
Greater Vancouver reached 1,577 on the Multiple Listing Service® (MLS®) in January 2012.
This represents a 4.9 per cent decrease compared to the 1,658 sales recorded in December 2011,
a decrease of 13.3 per cent compared to the 1,819 sales in January 2011 and an 18 per cent
decline from the 1,923 home sales in January 2010.

January sales in Greater Vancouver were the second lowest January total in the region since
2002, though only 146 sales below the 10-year average.
“We’re seeing trends emerge in our market that favour buyers, such as increased selection and
more stability in pricing compared to this time last year,” Rosario Setticasi, REBGV president
said. “Last month’s activity tells us that competition amongst home buyers was reduced in
January, which means that individuals looking to purchase a home had more time to do their
homework, consult with their REALTOR®, and make a decision.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,756
in January. This represents a 19.9 per cent increase compared to the 4,801 new listings reported
in January 2011, and a 253.3 per cent increase compared to the 1,629 new listings reported in
December 2011.

Last month’s new listing count was the highest January total in Greater Vancouver since 1995.
The total number of properties currently listed for sale on the Greater Vancouver MLS® is
12,544, a 12.5 per cent increase compared to December 2011 and an increase of 20.2 per cent
compared to January 2011.

New MLS® Home Price Index launches in Canada

Today marks the launch of the MLS® Home Price Index (MLS® HPI), the best and purest way
of determining price trends in the housing market. The MLS® HPI was pioneered by six
founding partners: the real estate boards of Calgary, Fraser Valley, Greater Montreal, Greater
Vancouver, and Toronto and the Canadian Real Estate Association. The partners contracted with
Altus Group to develop the MLS® HPI which measures home price trends in the five major
markets serviced by those boards.

The new index replaces the MLSLink Housing Price Index, which had been used by Greater
Vancouver and Fraser Valley REALTORS® since the mid 1990s. MLS® HPI statistics should
not be compared with previous MLSLink HPI statistics.1

“The MLS® HPI is a national collaboration intended to give the public a more reliable and
comprehensive tool to understand home price trends across the country,” Setticasi said.
The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently
sits at $660,600, up 5.7 per cent compared to January 2011 and down 0.1 per cent compared to
December 2011. The MLS® HPI also tracks home prices across the Lower Mainland.2 The
benchmark price for all residential properties in the Lower Mainland is $593,300, an increase of
5 per cent compared to January 2011.

Sales of detached properties on the MLS® in January 2012 reached 659, a decline of 16.9 per
cent from the 793 detached sales recorded in January 2011, and a 6.5 per cent decrease from the
705 units sold in January 2010. The benchmark price for detached properties increased 11.3 per
cent from January 2011 to $1,034,700.

Sales of apartment properties reached 657 in January 2012, a decline of 7.9 per cent compared to
the 713 sales in January 2011, and a decrease of 26.3 per cent compared to the 891 sales in
January 2010.The benchmark price of an apartment property increased 2.4 per cent from January
2011 to $371,500.

Attached property sales in January 2012 totalled 261, a decline of 16.6 per cent compared to the
313 sales in January 2011, and a 20.2 per cent decrease from the 327 attached properties sold in
January 2010. The benchmark price of a townhome3 unit declined 0.5 per cent between January
2011 and 2012 to $468,000.

Editor’s notes:
1.) The new MLS® HPI will be indexed to equal 100 in January 2005. The previous MLSLink HPI was
indexed to 2001. Sales prior to 2005 will not be considered in the MLS® HPI. Click here to view more
detailed information on the MLS® HPI.
2.) The Lower Mainland includes the areas serviced by both the Real Estate Board of Greater Vancouver
and the Fraser Valley Real Estate Board, and is comprised of communities from Whistler to
Abbotsford.
3.) Townhome properties are similar to attached properties, a category that was used in the previous
MLSLink HPI, but do not included duplexes.

The real estate industry is a key economic driver in British Columbia. In 2011, 32,390 homes changed ownership in the Board’s area, generating $1.36 billion in spin-off activity and 9,069.2 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $21 billion in 2010. The Real Estate Board of Greater Vancouver is an association representing more than 10,900 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®.

Looking for More Stats?! Check out all the Real Estate Board of Greater Vancouver Stats from May 2010!

Lowest 5 year Fixed Rate Mortgages in Canada Ever!

The Finance Minister and the heads of the Big Canadian Banks have recently been alluding to the fact that the property market in Canada, particularly in the real estate markets in Vancouver and Toronto may be getting a bit too hot for their liking based on the very low interest rates we are seeing in Canada right now.

And then came this…

2.99% on a 5 Year Fixed Mortgage? Whats the Catch?

This is the lowest 5 Year Fixed Rate Mortgages have EVER been!

I recently interviewed Vancouver mortgage broker, Chad Watts about the ultra low mortgage rates that the big banks are offering, primarily the 2.99% 5 Year Fixed Rate Mortgage.

When I heard about these mortgages, I thought:

A) “Whats the Catch?” and,

B) “How can the Banks afford to offer money this cheap?” and apparently others shared my thoughts on that question.

The Catch.

But today we are talking about the “Catch” with these 2.99% 5 Year Fixed Mortgages, and here’s what it is:

1. Amortization: No amortizations longer than 25 years. Investors looking for the longer 30 to 40 year amortizations still allowed with non-insured low ratio mortgages will need to look elsewhere as will those who like the lower payment a longer amortization offers.
2. Prepayments: Borrowers can only pay down 10% per year with this mortgage rather than the standard 20% per year.
3. Closed Mortgage: You can only get rid of this mortgage if you sell the property.
4. Renewal: You can only renew into a very limited range of mortgages offered by the bank if you choose to renew. Very often these options may not be all that good.
5. Not Portable: If you want to sell the property the mortgage is on, you will not be able to port the mortgage over to another property
6. Non-Assumable: You can’t sell the mortgage with the property.

The basic catch is that these mortgages may be great for specific property owners, but their lack of flexibility may not work for many home owners who may have changing housing and investment needs over the next 5 years (which is a long time).

If its Too Good to be True, It is!

Very often it is possible to get mortgages at a slightly higher rate that will allow far more flexibility and can SAVE a borrower a lot of money should they need to make changes to the mortgage in the future.

Looking for Advice on Buying a Property? Check out these great videos for New Home Buyers in Vancouver!

Thinking of Selling and Don’t Know Where to Start? Have a look at the Informative Videos on How to Sell a Property in Vancouver!

Chinese New Year and Vancouver Real Estate

I recently had the pleasure of interviewing Jonathan Fung, a Mortgage Specialist with Vancity who was kind enough to discuss Chinese New Year with me and its impact on Vancouver’s real estate market.

Chinese New Year or Lunar New Year is the most important Holiday of the year for Chinese people as well as for many Chinese-Canadians here in Vancouver. It’s a time to celebrate with family and friends and reflect on the previous year, and there is a heavy emphasis on making the upcoming year a good/prosperous year in terms of wealth.

How does Chinese New Year affect the Vancouver Real Estate Market?

During Chinese New Year, many celebrants will be looking to acquire new wealth (buy real estate) and upgrade their investment holdings (sell real estate). Chinese New Year is seen as a time of good fortune and investments or sales made during this time are believed to benefit from this.

The traditional busy time in the Vancouver property market is Spring, followed in ascending order of business by Autumn, Summer, and Winter.

With the increased activity in the Vancouver housing market due to Chinese New Year late Winter/Early Spring based on 2011′s numbers, almost as busy as the traditional Spring market.

Historically January and February are slow months for the Vancouver real estate market, but in January and February of 2011 sales were significantly higher than the 10 year average. As the article mentions, many people from Mainland China and elsewhere used the time over Chinese New Year to visit Vancouver and buy property.

According to media reports the Chinese economy and real estate market that is not as hot as in early 2011, so Chinese New Year 2012, The Year of the Dragon may not be as busy as 2011, but sales activity in the Vancouver real estate market could very well be again above the 10 year average.

That said, Economist Tsur Sommerville had this to say about what could happen for Chinese New Year 2012:

“There’s a sense in China that the property market there is slowing down, so that can play out here in terms of people who are looking to perhaps invest someplace else that’s more attractive.”

Mr. Somerville added these property buyers are primarily wealthy immigrants with enough money in the bank to pay for properties immediately.

“They’re not going to be able to get a loan here for it and they can’t get a loan at home for it.”

Will Chinese New Year Continue to by a Busy Season in the Vancouver Housing Market and Will House Prices Increase?

This is a very difficult thing to predict and as you may have noticed, I am not one to make predictions on Vancouver’s housing market.

That said, I am very interested to hear YOUR OPINION in the form of a comment down below.

Happy Lunar/Chinese New Year and Gung Hay Fat Choy!

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