News Release: September 2, 2015

STRONG SALES ACTIVITY CONTINUES THROUGH AUGUST

SURREY, BC – In August, home sales in the Fraser Valley moderated in comparison to July’s record-setting pace, however, they remained elevated compared to historical norms for the month.

There was a total of 1,734 property sales processed in August, an increase of 33 per cent compared to 1,302 sales during August of last year and a decrease of 21 per cent compared to July’s 2,184 sales.

Jorda Maisey is the Board’s President. “High consumer confidence and low mortgage rates continue to drive the activity we’ve seen in our market this summer.

“Even with the holiday season, sales last month remained 25 per cent higher than the Board’s 10-year average for August. This year marks one of the busiest summer markets we’ve ever had in the Fraser Valley, second only to 2005.”

In August, the total number of active listings in the Fraser Valley decreased 4 per cent compared to July, dropping to 7,407 listings. This represents a 21 per cent decrease from last year’s 9,403 active listings. The MLS® received 2,457 new listings in August, an increase of 3 per cent compared to August of last year.

Maisey adds, “In our market, price is key. Demand remains strongest for single family detached homes and townhomes that are priced correctly. Sellers who hope to take advantage of the current market will find that neither buyers nor their lenders are prepared to over pay.

“We anticipate more inventory will be coming on stream come fall, and we advise our buyers who can wait, to wait.”

The MLS® Home Price Index benchmark price of a detached home in August was $629,400, an increase of 10.5 per cent compared to August of last year when it was $569,800. The MLS® HPI benchmark price of Fraser Valley townhouses increased 2.7 per cent going from $298,500 in August of last year to $306,700 last month. The benchmark price of apartments decreased year-over-year by 2.4 per cent, going from $196,700 in August of last year to $191,900 last month.

Maisey adds, “First time buyers and investors are noticing that of the three main property types, the best selection in the Fraser Valley is in the condo market. In August, we saw apartment sales pick up specifically in White Rock, Langley and North Surrey.”

Full package:
http://www.fvreb.bc.ca/statistics/Package%20201508.pdf

News Release: August 5, 2015

JULY PROPERTY SALES HIT RECORD LEVELS IN FRASER VALLEY

SURREY, BC – Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) saw the highest number of real estate transactions ever recorded for the month of July.

There were 2,184 property sales processed, an increase of 35 per cent compared to 1,615 sales in July of last year. The previous highest July was in 2009, with 2,089 sales and prior to that in 2005.

Jorda Maisey is the Board’s President. “Home ownership is a passion in our country and in our region currently, conditions couldn’t be better to support that goal. Interest rates are the lowest they’ve been in six years, our provincial economy is on track to be the strongest in the country this year and in the Fraser Valley we have amongst the most affordable homes in the region.

“This is why this summer is shaping up to be the busiest in our history.”

The Fraser Valley Board's MLS® showed 7,681 active listings at the end of July, a decrease of 20 per cent compared to the 9,636 listings available in July of last year. It received 3 per cent more new listings in July; 2,815 compared to the 2,724 new listings received during the same month last year.

Maisey notes that despite seeing a slight increase in new listings in July, demand has led to a shortage of inventory in certain markets. "A detached home in the Fraser Valley is selling on average in just over one month and in many communities buyers will find themselves in multiple offer situations. It’s critical to tap into local real estate expertise in a market this hectic. Your REALTOR® will have the knowledge, tools and services to best position you for success.”

The MLS® Home Price Index benchmark price of a detached home in July was $621,100, an increase of 9.3 per cent compared to July of last year when it was $568,300. The MLS® HPI benchmark price of Fraser Valley townhouses increased 2.1 per cent going from $298,500 in July of last year to $304,900 last month. The benchmark price of apartments decreased year-over-year by 1 per cent, going from $194,700 in July of last year to $192,700 last month.

Maisey adds, “Renters take note. Given interest rates and the affordable price of condos in certain neighbourhoods in Surrey, Langley and Abbotsford, it may be more economical over the long-term for you to own. There are excellent opportunities currently in the Fraser Valley for first-time buyers."

Full package:
http://www.fvreb.bc.ca/statistics/Package%20201507.pdf

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Metro Vancouver reached 4,179 on the Multiple Listing Service® (MLS®) in April 2015. This represents a 37 per cent increase compared to the 3,050 sales recorded in April 2014, and a 2.9 per cent increase compared to the 4,060 sales in March 2015.

Last month’s sales were 29.3 per cent above the 10-year sales average for the month.

“The supply of homes for sale today in the region is not meeting the demand we're seeing from home buyers. This is putting upward pressure on prices, particularly in the detached home market," Darcy McLeod, REBGV president said.

New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,897 in April. This represents a 0.9 per cent decrease compared to the 5,950 new listings reported in April 2014.

The total number of properties currently listed for sale on the region’s MLS® is 12,436, a 19.8 per cent decline compared to April 2014 and an increase of 0.5 per cent compared to March 2015.

“It’s a competitive and fast-moving market today that is tilted in favour of home sellers. To be competitive, it’s important to connect with a local REALTOR® who can help you develop a strategy to meet your home buying or selling needs,” McLeod said.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $673,000. This represents an 8.5 per cent increase compared to April 2014.

The sales-to-active-listings ratio in April was 33.6 per cent. This is the highest that this ratio has been in Metro Vancouver since June 2007.

Sales of detached properties in April 2015 reached 1,815, an increase of 35.9 per cent from the 1,336 detached sales recorded in April 2014, and a 70.6 per cent increase from the 1,064 units sold in April 2013. The benchmark price for a detached property in Metro Vancouver increased 12.5 per cent from April 2014 to $1,078,900.

Sales of apartment properties reached 1,579 in April 2015, an increase of 34.7 per cent compared to the 1,172 sales in April 2014, and an increase of 50.1 per cent compared to the 1,052 sales in April 2013. The benchmark price of an apartment property increased 4.4 per cent from April 2014 to $394,200.

Attached property sales in April 2015 totalled 785, an increase of 44.8 per cent compared to the 542 sales in April 2014, and a 53.6 per cent increase from the 511 attached properties sold in April 2013. The benchmark price of an attached unit increased 5.7 per cent between April 2014 and 2015 to $493,300.

*Editor’s Note:  Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.

The real estate industry is a key economic driver in British Columbia. In 2014, 33,116 homes changed ownership in the Board’s area, generating $2.136 billion in economic spin-off activity and an estimated 16,227 jobs. The total dollar value of residential sales transacted through the MLS® system in Metro Vancouver totalled $27.3 billion in 2014. The Real Estate Board of Greater Vancouver is an association representing nearly 12,000 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.    
    

CMHC Has increased their rates again. It’s the second time in about a year that CMHC has raised its fees on homeowners.  CMHC’s move targets only those putting down less than 10%, which equates to $450 per $100,000 of mortgage.

• If your loan-to-value is over 90% and your lender submits your complete application to CMHC before June 1, 2015, you’ll pay the old (cheaper) CMHC fees. It doesn’t matter when your mortgage closes.
• Submitting a pre-approval as opposed to a complete application will not hold the old insurance premiums.
• If you borrow your down payment, the fee is another 5 basis points (0.05%) higher, or 3.85% of the mortgage amount.

• Effective June 1^st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage loan insurance premiums will be:

Mortgage wars heat up Vancouver’s already hot real estate market!

A lowering of a popular financing option for home buyers could cause more harm than good for at least one Vancouver couple.

“Why couldn’t [interest rates] just go up to where they were before, and we would probably be able to find a place?” asks Melanie Lee. She and her husband are looking to buy their first home, but have found themselves on the losing end of several bidding wars.

“It always feels like you’re getting slapped down and not winning the war. It’s a very tough market,” she says.

Virtually all major Canadian banks have lowered their five-year fix term mortgageto 2.79 per cent in recent days, the second major reduction they’ve made since the Bank of Canada lowered its overnight interest rate to 0.75 per cent in January.

READ MORE: Mortgage rates are dropping — so how much house can you handle?

It’s one of the reasons that Vancouver’s housing market has surged in recent months. The Real Estate Board of Greater Vancouver said total sales in February were 20.2 per cent above the 10-year sales average for the month. They also reported the average price for a single family detached property in Metro Vancouver is now over a million dollars.

“These housing are selling 100 to 200 thousand above asking price. As a first-time home buyer, it’s very frustrating,” says Sherlock Yam, a mortgage broker for Verico Clear Trust Mortgages.

READ MORE: ‘Average’ million dollar homes now being seen throughout Metro Van

“We’re seeing a lot of people who own houses see how crazy the market is going, and they’re listing their properties, hoping to get way above asking price, which is what’s happening.”

WATCH GLOBAL NEWS VIDEO HERE

© Shaw Media, 2015

• by  Canadian Press - BC Local News
• posted Mar 18, 2015 at 2:21 PM— updated Mar 19, 2015 at 3:44 AM

No plan to cool hot housing market: Harper

Prime Minister Stephen Harper announces a government initiative to help assist small and medium-sized businesses to open new markets abroad, in Mississauga, Ont. on Wednesday, March 18 2015. THE CANADIAN PRESS/Chris Young

— Image Credit:

By The Canadian Press

MISSISSAUGA, Ont. - Prime Minister Stephen Harper says the federal government is keeping a careful watch on borrowing and lending tied to the country's hot housing market.

But Harper says Ottawa has no immediate plans to take action to cool it down, like it has in the past.

Responding to a question in Mississauga, Ont., he said debt-servicing costs are falling and default rates remain extremely low.

Harper made the remarks at a time when big banks and other lenders are cutting mortgage rates to kick off the spring real-estate season.

They also come amid concerns Canadians have piled on too much debt and worries that housing markets in Toronto and Vancouver have become overheated.

Harper says he's not "unconcerned" about the housing-market situation, but he believes Canada's financial institutions remain very strong.

• 90% rental offset:  This treatment of unauthorized or legal suites can make a huge difference to obtain the financing required or obtain a variable rate mortgage.
• New low fixed rate with cash back: Currently I have a lender willing to provide cash back with 5 year fixed rates as low as banks rates. Requirements are more difficult, but this is a great offer for those who qualify.
• Construction draw mortgages:  A great product for customers looking to build their home and allows great flexibility to meet your builders draw requirements.
• Private lending options: This can be a great solution to access up to 90% of the equity in your home to bridge time to allow customers to qualify back to discounted rates or to pay off debts which are at much higher rates.

(Surrey, BC) – In February, sales of all property types in the Fraser Valley increased by 21 per cent in one year with demand for two property types in particular - single family detached homes and townhomes - outpacing supply.

Last month, the Fraser Valley Real Estate Board processed 1,337 sales on the Multiple Listing Service® compared to 1,102 sales in February of last year. New listings in February totaled 2,610 which added up to 7,864 active listings, up from January’s 7,307 but a decrease of 4 per cent compared to February 2014’s 8,210 active listings.

“It was our busiest February since 2007,” says newly elected Board President Jorda Maisey. “In my community of Langley, the average number of days to sell a detached home is now less than one month and it’s a challenge finding the right product for some of our buyers, however every area is different. To understand the market for your home in your neighbourhood, talk to your REALTOR®.”

A measurement the real estate industry relies on to gauge the health of the housing market is the ratio between sales and active listings. For the Lower Mainland, the balanced range is between 12 and 20 per cent; which means when it’s less than 12 it favours buyers and greater than 20 it favours sellers. The ratio in February for single family detached homes was 26 per cent; townhomes 22 per cent and apartments 12 per cent.

Maisey adds, “Our best seller in the Fraser Valley remains the single family detached home, followed by townhomes in part because almost half our buyers are families with children, but also because these products are so much more affordable in the Fraser Valley. With a typical townhome costing less than $300,000 and interest rates so low, many first-time buyers are finding they can get more for their money here.”

The MLS® HPI benchmark price of a Fraser Valley single family detached home in February was $581,400, an increase of 4.2 per cent compared to February 2014 when it was $558,100.

In February, the benchmark price of townhouses was $297,200, a decrease of 0.6 per cent compared to $298,900 in February 2014. The benchmark price of apartments also decreased year-over-year by 1.8 per cent, going from $193,200 in February 2014 to $189,700 in February 2015.

Across Fraser Valley, the average number of days to sell a single family detached home in February was 41 days, ten days faster than last year. Townhouses on average took 55 days to sell; one day faster than last February, while Fraser Valley apartments sold on average in 70 days, on par with February 2014.

CMHC announcing fee 15% fee increases begining may 1st. Now is the time to get pre approved and take advantage of the current lower rates.

UPDATE: Since the CMHC premium hike, the largest private mortgage insurer, Genworth, has announced that its premiums will increase to match CMHC’s effective May 1.

The Canadian Mortgage and Housing Corporation has announced 15 per cent increases to the premiums on its mortgage insurance. These will come into effect for new CMHC-insured mortgages taken out May 1, 2014 or after.

• If you already have a CMHC-insured mortgage or mortgage approval, your premiums will stay the same.
• If you refinance and still require CMHC insurance, your premiums will then go up.
• If you submit an application to CMHC before May 1, your premiums will be at the old rate. Therefore, if you plan to buy a home soon and have a down payment of five to 20 per cent, you can save yourself about $5 per month by buying and nailing down your mortgage before the May 1 deadline. Check with an independent mortgage broker to find out how much you qualify to borrow so you can search within your price range.
• If you take out a mortgage after May 1 that requires CMHC insurance , these will be your premiums.

Mortgage insurance is required on all mortgages that meet these criteria:

• Down payment of 5-to-20 per cent of home’s value
• Maximum amortization period: 25 years
• Maximum home price: $999,999
• Maximum amount to refinance a mortgage: 80 per cent of home’s value

You can only qualify for CMHC insurance if your maximum gross debt service (GDS) is 39 per cent and your maximum total debt service (TDS) is 44 per cent. These numbers refer to the percentage of your income needed for all housing costs (GDS) and the percentage required for GDS plus other debts (TDS). Some lenders may have more stringent guidelines.

Again, a mortgage broker can give you guidance.