Don Kennedy (www.donkennedyrealtor.com): HomeBlog http://www.donkennedyrealtor.com/Blog.php This page contains the blog. Sat, 21 Apr 2018 21:27:07 -0700 http://ubertor.com/?v=1.0 en BANK RATE GOING UP? http://www.donkennedyrealtor.com/Blog.php/bank-rate-going-up Wed, 18 Apr 2018 09:13:17 -0700 Don Kennedy General http://www.donkennedyrealtor.com/Blog.php/bank-rate-going-up
Bank of Canada Interest Rate Announcement - April 18, 2018

The Bank of Canada decided to leave the target for the overnight policy rate unchanged at 1.25 per cent this morning. In the statement accompanying the decision, the Bank noted that inflation is forecast to be slightly higher in 2018 than originally expected but will return to the Bank's 2 per cent target once the impact of higher gas prices and minimum wage increases dissipate.  While the mortgage stress test has been a contributor to weaker growth in the first quarter of 2018, the Bank expects the economy to be operating at above potential over the next three years, growing at an average rate of about 2 per cent.

Although the Bank held steady today, with inflation rising to the Bank's two per cent target and many Canadian firms operating at or near capacity, interest rates are very likely headed higher this year.  Headwinds from the trade sector have moderated, energy prices are higher and growth for the first quarter appears to be firming after a slow start. Given those trends, the Bank is likely to adjust its policy rate higher in coming months. That will translate to higher mortgage rates which, combined with the erosion of purchasing power from the mortgage stress test, will temper housing demand in 2018.
 

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Housing Starts Fall Nationally, Not So In BC http://www.donkennedyrealtor.com/Blog.php/housing-starts-fall-nationally-not-so-in-bc Tue, 10 Apr 2018 12:28:40 -0700 Don Kennedy British Columbia http://www.donkennedyrealtor.com/Blog.php/housing-starts-fall-nationally-not-so-in-bc
Canadian Housing Starts - April 10, 2018

Canadian housing starts fell 3 per cent on a monthly basis in march to 225,213 units at a seasonally adjusted annual rate (SAAR).  The six-month trend in Canadian housing starts was steady at about 226,000 units SAAR.

In BC, total housing starts jumped 48 per cent on a monthly basis to 46,629 units SAAR with multiple unit starts rising over 60 per cent. On a year-over-year basis, total starts in the province were 4 per cent higher.

Looking at census metropolitan areas (CMA) in BC:

Total starts in the Vancouver CMA were up 60 per cent on a monthly basis after falling close to 40 per cent in February. Year-over-year, Vancouver starts were up 6 per cent. The 32,000 unit annual pace set in March was the result of an increase in both condo and rental units in core parts of the Metro area including the City of Vancouver, Richmond and North Vancouver.

In the Victoria CMA, housing starts were down 5 per cent on a monthly basis but were almost double the level of March 2017 due to a surge of new multi-unit starts. Apartment starts were 77 per cent higher than March last year while single detached starts were down 32 per cent.

In the Kelowna CMA, new home construction bounced back from a slow February with total housing starting rising by over 4 times the previous months activity.  However, starts were down 68 per cent compared to what was a very busy March of 2017.
Housing starts in the Abbotsford-Mission CMA  increased 71 per cent on a monthly basis but were down 20 per cent year-over-year, largely due to lower single detached starts. Multiple unit starts were essentially flat compared to last year.  

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BCREA Report: The Economic Fallout of Housing Price Shocks http://www.donkennedyrealtor.com/Blog.php/bcrea-report-the-economic-fallout-of-housing-price-shocks Fri, 06 Apr 2018 22:47:02 -0700 Don Kennedy British Columbia http://www.donkennedyrealtor.com/Blog.php/bcrea-report-the-economic-fallout-of-housing-price-shocks The desire of some well-meaning British Columbians for government to drive down the price of homes through demand-side policy may sound practical at first blush. However, when you consider the broad and deep economic toll that a negative shock to home prices would exact on both homeowners and renters, it quickly becomes apparent that such an approach is at best, a mug’s game. BCREA Economics analysis* shows that even a relatively modest negative price shock will produce significant consequences to the BC economy.

Nearly 70 per cent of British Columbian households own their home. A relatively minor 10 per cent negative shock to home prices would extinguish $90 billion of their wealth, or $70,000 of the average home owner’s equity. While some may see this as a paper loss, it will have a significant impact on the economy, as declining household wealth reins in consumer spending. Retail sales would suffer, with an estimated $1.8 billion in forgone revenue in the first year after the shock.

Home construction activity would fall dramatically. Home builders would cut back production 25 per cent; that’s 10,000 fewer housing starts in the first year alone. A negative price shock would markedly slow the expansion of the housing stock, creating even more critical housing supply problems down the road.

Across the economy, a negative home price shock will slow growth. Tens of thousands of jobs will be forfeited. The unemployment rate will shoot up. A 10 per cent negative price shock will slow real GDP growth to 1.5 per cent from a baseline of 2.7 per cent. That’s $3 billion in lost activity. If home prices fell 35 per cent, a level some activists are championing, the BC economy would collapse into recession. The average home owner would have lost $245,000 in equity, housing starts would fall by half, 64,000 jobs would be forfeited – sending the unemployment rate to 7.5 per cent with $4.4 billion in forgone retail sales and a colossal $8 billion loss to GDP in the first year.

This analysis does not account for the negative impact on provincial tax revenues, expanding deficits, ballooning debt and credit downgrade risks.]]>
VANCOUVER WEST MARCH HOUSE MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-west-march-house-market Fri, 06 Apr 2018 09:34:15 -0700 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-march-house-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release reports the regions lowest first quarter sales total in five years as mortgage stress tests, increased interest rates, new taxes and elevated prices lower demand. However low inventory due to fewer homes listed for sale maintains upward pressure on value. Last month total residential sales decline 29.7 percent compared to March 2017. Although total inventory of listed properties is up 10.5 percent year to year new listings are 6.6 percent lower. The composite value of all Metro Vancouver properties increases 16.1 percent March 2018 over March 2017.

 

The graph shows the average price of Metro Vancouver detached properties falling 7.4 percent from February to March. Coincidentally the benchmark price for detached houses last month compared to March 2017 is up 7.4 percent. The volume of house sales is down significantly year to year by 37 percent.

 
Last month versus March 2017 Vancouver west detached prices 0.4 percent lower. Year to year west side house sales continue free falling by 44.2 percent. March to March inventory increases 17.9 percent.

 

February to March this year sales of west side houses are at par. Month to month detached inventory declines 7.3 percent.




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VANCOUVER EAST MARCH HOUSE MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-east-march-house-market Fri, 06 Apr 2018 09:31:06 -0700 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-east-march-house-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release reports the regions lowest first quarter sales total in five years as mortgage stress tests, increased interest rates, new taxes and elevated prices lower demand. However low inventory due to fewer homes listed for sale maintains upward pressure on value. Last month total residential sales decline 29.7 percent compared to March 2017. Although total inventory of listed properties is up 10.5 percent year to year new listings are 6.6 percent lower. The composite value of all Metro Vancouver properties increases 16.1 percent March 2018 over March 2017.

 

The graph shows the average price of Metro Vancouver detached properties falling 7.4 percent from February to March. Coincidentally the benchmark price for detached houses last month compared to March 2017 is up 7.4 percent. The volume of house sales is down significantly year to year by 37 percent.

 

East side house prices in March record a 6.9 percent increase over March 2017. Year to year Vancouver east detached sales drop 46.4 percent. March to March inventory declines 9.2 percent.

 

February to March east side house sales rise a bit, by 7.8 percent. Month to month east side inventory is up 8.8 percent.

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VANCOUVER WEST MARCH APARTMENT MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-west-march-apartment-market Fri, 06 Apr 2018 09:29:47 -0700 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-march-apartment-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release reports the regions lowest first quarter sales total in five years as mortgage stress tests, increased interest rates, new taxes and elevated prices lower demand. However low inventory due to fewer homes listed for sale maintains upward pressure on value. Last month total residential sales decline 29.7 percent compared to March 2017. Although total inventory of listed properties is up 10.5 percent year to year new listings are 6.6 percent lower. The composite value of all Metro Vancouver properties increases 16.1 percent March 2018 over March 2017.

 

The graph illustrates a decrease in the average condominium sale price for Metro Vancouver of 3.5 percent from February to March. Year to year the overall benchmark price for apartments is up 26.2 percent. The volume of condo sales last month compared to March 2017 reduces 26.7 percent.

 

Last month versus March 2017 the benchmark price for west side apartments is 20.6 percent higher. March to March Vancouver west condo sales are down by 23.1 percent. Year to year west side apartment inventory increases 6.4 percent.

 

February to March Vancouver west apartment sales increase 5.1 percent. Month to month west side condo inventory is up by 5.4 percent.

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VANCOUVER EAST MARCH APARTMENT MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-east-march-apartment-market Fri, 06 Apr 2018 09:27:50 -0700 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-east-march-apartment-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release reports the regions lowest first quarter sales total in five years as mortgage stress tests, increased interest rates, new taxes and elevated prices lower demand. However low inventory due to fewer homes listed for sale maintains upward pressure on value. Last month total residential sales decline 29.7 percent compared to March 2017. Although total inventory of listed properties is up 10.5 percent year to year new listings are 6.6 percent lower. The composite value of all Metro Vancouver properties increases 16.1 percent March 2018 over March 2017.

 

The graph illustrates a decrease in the average condominium sale price for Metro Vancouver of 3.5 percent from February to March. Year to year the overall benchmark price for apartments is up 26.2 percent. The volume of condo sales last month compared to March 2017 reduces 26.7 percent.

 

Vancouver east apartment prices in March 2018 compared to the previous March rise 24.3 percent. Year to year east side apartment sales are less by 13.3 percent. East side condo inventory dips 3.3 percent March to March.

 

February to March east side apartment sales are up a strong 22.8 percent. Month to month inventory is up 7.5 percent.

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VANCOUVER EAST MARCH TOWNHOME MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-east-march-townhome-market Fri, 06 Apr 2018 09:26:05 -0700 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-east-march-townhome-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release reports the regions lowest first quarter sales total in five years as mortgage stress tests, increased interest rates, new taxes and elevated prices lower demand. However low inventory due to fewer homes listed for sale maintains upward pressure on value. Last month total residential sales decline 29.7 percent compared to March 2017. Although total inventory of listed properties is up 10.5 percent year to year new listings are 6.6 percent lower. The composite value of all Metro Vancouver properties increases 16.1 percent March 2018 over March 2017.

 

The graph displays an increase of 2.9 percent from March to February for the average attached unit price in Metro Vancouver. Last month compared to March 2017 the benchmark townhouse price increases 17.7 percent. Year to year the volume of townhome sales is down 24.1 percent.

 

Last month versus March 2017 Vancouver east townhouse prices increase 22.2 percent. Year to year attached unit sales are lower by 2.2 percent. March 2018 inventory is remarkably higher than the previous March by 43.1 percent.

 

East side attached sales are up 18.9 percent from February to March. Month to month Vancouver east attached inventory rises 10.6 percent.

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VANCOUVER WEST MARCH TOWNHOME MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-west-march-townhome-market Fri, 06 Apr 2018 09:24:36 -0700 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-march-townhome-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release reports the regions lowest first quarter sales total in five years as mortgage stress tests, increased interest rates, new taxes and elevated prices lower demand. However low inventory due to fewer homes listed for sale maintains upward pressure on value. Last month total residential sales decline 29.7 percent compared to March 2017. Although total inventory of listed properties is up 10.5 percent year to year new listings are 6.6 percent lower. The composite value of all Metro Vancouver properties increases 16.1 percent March 2018 over March 2017.

 

The graph displays an increase of 2.9 percent from March to February for the average attached unit price in Metro Vancouver. Last month compared to March 2017 the benchmark townhouse price increases 17.7 percent. Year to year the volume of townhome sales is down 24.1 percent.

 

Last month versus March 2017 Vancouver west townhouse prices rise by 11.3 percent. This March compared to last March attached unit sales are down 39 percent. Year to year inventory is 3.2 percent lower.

 

From February to March west side attached sales decline 11.4 percent. Month to month Vancouver west attached inventory is down by 6.3 percent.

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VANCOUVER WEST FEBRUARY HOUSE MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-west-february-house-market Thu, 08 Mar 2018 11:03:30 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-february-house-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release outlines anticipation within Real Estate as to what effect rising interest rates and legislation from all levels of government will have on the traditionally most active spring market. Meantime February saw all sectors slip below the 10 year average for the first time in a while and detached properties are approaching the threshold of a buyers’ market. Last month total residential sales decrease 9 percent compared to February 2017. Year to year new listings are 15.2 percent higher and total inventory of listed properties is up 3 percent. The composite value of all Metro Vancouver properties increases 16.9 percent February 2018 over February 2017.

 

The graph shows the average price of Metro Vancouver detached properties dipping 0.72 percent from January to February. The benchmark price for detached houses last month compared to February 2017 is up 8.2 percent. The volume of house sales is down 16.6 percent year to year.

 

Last month versus February 2017 Vancouver west detached prices are 2.3 percent higher. Year to year west side house sales plummet 43 percent. February to February inventory balloons by 49.3 percent.

 

January to February this year sales of west side houses increase by 15.2 percent. Month to month detached inventory declines 7.5 percent.

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VANCOUVER EAST FEBRUARY HOUSE MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-east-february-house-market Thu, 08 Mar 2018 11:01:53 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-east-february-house-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release outlines anticipation within Real Estate as to what effect rising interest rates and legislation from all levels of government will have on the traditionally most active spring market. Meantime February saw all sectors slip below the 10 year average for the first time in a while and detached properties are approaching the threshold of a buyers’ market. Last month total residential sales decrease 9 percent compared to February 2017. Year to year new listings are 15.2 percent higher and total inventory of listed properties is up 3 percent. The composite value of all Metro Vancouver properties increases 16.9 percent February 2018 over February 2017.

 

The graph shows the average price of Metro Vancouver detached properties dipping 0.72 percent from January to February. The benchmark price for detached houses last month compared to February 2017 is up 8.2 percent. The volume of house sales is down 16.6 percent year to year.

 

East side house prices in February record a 9.5 percent increase over February 2017. Year to year Vancouver east detached sales drop 6 percent. February to February inventory is up 20 percent.

 

January to February east side house sales rise dramatically by 71.1 percent. Month to month east side inventory is up 22.7 percent.

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VANCOUVER WEST FEBRUARY CONDO MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-west-february-condo-market Thu, 08 Mar 2018 10:57:58 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-february-condo-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release outlines anticipation within Real Estate as to what effect rising interest rates and legislation from all levels of government will have on the traditionally most active spring market. Meantime February saw all sectors slip below the 10 year average for the first time in a while and detached properties are approaching the threshold of a buyers’ market. Last month total residential sales decrease 9 percent compared to February 2017. Year to year new listings are 15.2 percent higher and total inventory of listed properties is up 3 percent. The composite value of all Metro Vancouver properties increases 16.9 percent February 2018 over February 2017.

 

The graph displays a slight decrease of 0.17 percent from January to February in the average condominium sale price for Metro Vancouver. Year to year the overall benchmark price for apartments is up 27.2 percent. The volume of condo sales last month compared to February 2017 drops 7.1 percent.

 

Last month versus February 2017 the benchmark price for west side apartments is 20.5 percent higher. February to February Vancouver west condo sales are down by 10 percent. Year to year west side apartment inventory increases 17.5 percent.

 

January to February Vancouver west apartment sales jump up 36.6 percent. Month to month west side condo inventory is up by 18.3 percent.

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VANCOUVER EAST FEBRUARY CONDO MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-east-condo-market-3 Thu, 08 Mar 2018 10:54:48 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-east-condo-market-3 Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release outlines anticipation within Real Estate as to what effect rising interest rates and legislation from all levels of government will have on the traditionally most active spring market. Meantime February saw all sectors slip below the 10 year average for the first time in a while and detached properties are approaching the threshold of a buyers’ market. Last month total residential sales decrease 9 percent compared to February 2017. Year to year new listings are 15.2 percent higher and total inventory of listed properties is up 3 percent. The composite value of all Metro Vancouver properties increases 16.9 percent February 2018 over February 2017.

 

The graph displays a slight decrease of 0.17 percent from January to February in the average condominium sale price for Metro Vancouver. Year to year the overall benchmark price for apartments is up 27.2 percent. The volume of condo sales last month compared to February 2017 drops 7.1 percent.

 

Vancouver east apartment prices in February 2018 compared to the previous February rise 26.7 percent. Year to year east side apartment sales are up 6.7 percent. East side condo inventory rises 14 percent February to February.

 

January to February east side apartment sales rocket skyward by 89.6 percent. Month to month inventory is up 30.8 percent.

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VANCOUVER EAST FEBRUARY TOWNHOUSE MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-east-february-townhouse-market Thu, 08 Mar 2018 10:41:29 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-east-february-townhouse-market Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release outlines anticipation within Real Estate as to what effect rising interest rates and legislation from all levels of government will have on the traditionally most active spring market. Meantime February saw all sectors slip below the 10 year average for the first time in a while and detached properties are approaching the threshold of a buyers’ market. Last month total residential sales decrease 9 percent compared to February 2017. Year to year new listings are 15.2 percent higher and total inventory of listed properties is up 3 percent. The composite value of all Metro Vancouver properties increases 16.9 percent February 2018 over February 2017.

 

The graph records an increase of 3.8 percent for the average attached unit price for Metro Vancouver in February compared to January. Last month compared to February 2017 the benchmark townhouse price increases 18.1 percent. Year to year the volume of townhome sales dips down 0.7 percent.

 

Last month versus February 2017 Vancouver east townhouse prices increase 16.2 percent. Year to year attached unit sales continue to be higher by 32 percent. February 2018 inventory is 10 percent greater than the previous February.

 

East side attached sales dramatically improve by 48 percent from January to February. Month to month Vancouver east attached inventory goes up 9.6 percent.

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VANCOUVER WEST FEBRUARY TOWNHOUSE MARKET http://www.donkennedyrealtor.com/Blog.php/vancouver-1 Thu, 08 Mar 2018 10:08:36 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-1 Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release outlines anticipation within Real Estate as to what effect rising interest rates and legislation from all levels of government will have on the traditionally most active spring market. Meantime February saw all sectors slip below the 10 year average for the first time in a while and detached properties are approaching the threshold of a buyers’ market. Last month total residential sales decrease 9 percent compared to February 2017. Year to year new listings are 15.2 percent higher and total inventory of listed properties is up 3 percent. The composite value of all Metro Vancouver properties increases 16.9 percent February 2018 over February 2017.

 

The graph records an increase of 3.8 percent for the average attached unit price for Metro Vancouver in February compared to January. Last month compared to February 2017 the benchmark townhouse price increases 18.1 percent. Year to year the volume of townhome sales dips down 0.7 percent.

 

Last month versus February 2017 Vancouver west townhouse prices rise by 11.1 percent. This February compared to last February attached unit sales are down 10 percent. Year to year inventory is 43.3 percent higher.

 

From January to February west side attached sales burgeon by 83.3 percent. Month to month Vancouver west attached inventory is up by 18.5 percent.

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Interest Rates Won't Rise - For Now. http://www.donkennedyrealtor.com/Blog.php/interest-rates-won-t-rise-for-now. Wed, 07 Mar 2018 10:54:35 -0800 Don Kennedy General http://www.donkennedyrealtor.com/Blog.php/interest-rates-won-t-rise-for-now. BCREA ECONOMICS NOW

Bank of Canada Interest Rate Announcement  - March 7, 2018

The Bank of Canada opted to maintain its target for the overnight interest rate this morning at 1.25 per cent.  In the statement accompanying the decision, the Bank noted that although growth in the Canadian economy slowed more than expected in the fourth quarter of 2017, the economy is expected to operate at capacity going forward. The bank cited recent trade policy developments, mainly the threat of a trade war with the United States, as a significant risk to its outlook for growth and inflation.

The Canadian economy is at or very close to full-employment, meaning there is little room for Canadian firms to expand output without putting undue pressure on inflation. There are signs core inflation is already firming up. Two of the Bank’s three core inflation measures are closing in on the Bank’s 2 per cent target and all three measures have increased significantly in the past six months. Absent any unforeseen challenges to the Canadian economy, monetary policy will be biased in the direction of higher interest rates.  However, the Bank will likely hold off raising its overnight rate while it assesses the impact of tighter monetary policy over the past year, the impact of newly implemented B-20 guidelines on mortgage qualification rules, and heightened risk to Canadian exports from US trade policy.]]>
Expect Another Interest Rate Hike This Year http://www.donkennedyrealtor.com/Blog.php/expect-another-interest-rate-hike-this-year Fri, 23 Feb 2018 09:43:59 -0800 Don Kennedy General http://www.donkennedyrealtor.com/Blog.php/expect-another-interest-rate-hike-this-year BCREA ECONOMICS NOW

 

Canadian Inflation - February 23, 2018

 

Canadian inflation, as measured by the Consumer Price Index (CPI), slowed for a second consecutive month to 1.7 per cent year-over-year, down from 1.9 per cent in December. The Bank of Canada's three measures of trend inflation were either up or flat in January, and are all now close to 2 per cent.   In BC, provincial consumer price inflation was 2.1 per cent in the 12 months to January.

 

Although total CPI inflation has ticked lower in the past two months, core inflation continues to firm up. The Bank of Canada has a tendency to look past short-term movements in CPI inflation so the most recent downtrend probably will not prompt a shift in thinking at the Bank, at least as long as core inflation moves higher.  That means the Bank is still likely to raise its overnight rate at least one more time this year.

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BC Budget: Taxes Won't Make Housing Affordable http://www.donkennedyrealtor.com/Blog.php/bc-budget-will-common-sense-win Thu, 22 Feb 2018 11:12:12 -0800 Don Kennedy British Columbia http://www.donkennedyrealtor.com/Blog.php/bc-budget-will-common-sense-win

Government Needs Transitional Rules For All Transactions Impacted By Taxes Introduced In Budget 2018

New taxes unlikely to stabilize housing market

Victoria, BC – February 20, 2018. The British Columbia Real Estate Association calls on the government to introduce transitional rules for all transactions impacted by the new tax measures introduced in Budget 2018. The new tax measures come into effect on February 21, 2018. The Property Transfer Tax (PTT) increase to 5 per cent for properties over $3 million, as well as the increase to 20 per cent and expansion of the Foreign Buyer's Tax to other parts of the province will have an immediate impact on transactions underway.

When the Foreign Buyers Tax was introduced in 2016, consumers and REALTORS® were frustrated by the number of collapsed deals due to how the tax was introduced. At the time, the Association called for grandfathering of transactions underway to ensure a smooth transition. While the province has indicated transitional rules for the expansion of the Foreign Buyers Tax to other parts of BC, the Association believes this should apply to all transactions.

Of additional concern, the "speculation" tax introduced in the budget will affect British Columbians who own or want to invest in those markets by buying a second home or recreational property

The Association welcomes measures in Budget 2018 to increase the supply of affordable housing in British Columbia. These initiatives are important steps in supporting those who need the most assistance to find and afford housing. However, the government missed the opportunity to help homebuyers across the province by increasing the thresholds to the Property Transfer Tax (PTT) or index those thresholds to reflect the changing real estate market.

The new tax measures introduced by the government to "stabilize the housing market" are unlikely to achieve the intended objective. The taxes ignore the major culprit – matching housing supply and demand within a reasonable timeframe. Additional taxes, whether targeted at foreign buyers or speculators, do not reduce the gap between when a housing project starts, and when it is available to purchase.

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]]> Mortgage Stress Test Blamed For Dip In BC Home Sales http://www.donkennedyrealtor.com/Blog.php/mortgage-stress-test-blamed-for-dip-in-bc-home-sales Thu, 15 Feb 2018 09:31:11 -0800 Don Kennedy British Columbia http://www.donkennedyrealtor.com/Blog.php/mortgage-stress-test-blamed-for-dip-in-bc-home-sales

BC Home Sales Dip After Strong December

Vancouver, BC – February 15, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 5,306 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in January, an increase of 18.3 per cent from the same period last year. The average MLS® residential price in BC was $721,477, up 16.2 per cent from the previous year. Total sales dollar volume was $3.83 billion, a 37.4 per cent increase from January 2017.

“BC home sales dipped 10 per cent from December to January, on a seasonally adjusted basis," said Cameron Muir, BCREA Chief Economist. "New mortgage rules requiring conventional borrowers to qualify at a higher interest rate likely contributed to the decline in home sales last month. The impact was magnified by a strong December as many households advanced their purchase decisions ahead of the policy's implementation."

Despite the decline in January transactions, the seasonally adjusted annual rate of home sales was 101,800 units.

Compared to January 2017, market conditions tightened in all BC board areas except Victoria, where the sales-to-active listings ratio declined from 46.3 per cent to 40.5 per cent. Despite this decline, Victoria remains in strong sellers' market territory. Total active listings in the province were down 8.6 per cent to 20,901 units, compared to the same period last year.

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Vancouver West House Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-house-market-1 Fri, 09 Feb 2018 12:52:25 -0800 Don Kennedy Vancouver Market http://www.donkennedyrealtor.com/Blog.php/vancouver-west-house-market-1 Stats 18 2.pdf

Attached please find the latest statistics from the Real Estate Board of Greater Vancouver.

 

The News Release paints a robust picture for strata units to start 2018 but for detached homes not so much. The supply of apartments and townhomes is not meeting demand whereas houses are the only sector to slip under the 10 year sales average for January. Also the detached sales-to-active ration is now at 11.6 percent and a sustained period under the 12 percent threshold will likely put downward pressure on the value of those properties. Last month total residential sales increase 19.4 percent compared to January 2017. Year to year new listings are 8.3 percent lower while total inventory of listed properties is down 4 percent. The composite value of all Metro Vancouver properties increases 16.6 percent January 2018 over January 2017.

 

The graph shows a dip for the average price of Metro Vancouver detached properties, dropping 0.95 percent from December to January. The benchmark price for detached houses last month compared to January 2017 is up 8.3 percent. The volume of house sales is up 9.7 percent year to year.

 

Last month versus January 2017 Vancouver west detached prices are 3.8 percent higher. Rebounding year to year, west side house sales are up 27.7 percent. This while January to January inventory declines 13.3 percent.

 

December to January sales of west side houses pivot to the plus side, increasing 27.8 percent. Month to month detached inventory balloons, up 272.2 percent.

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