For immediate release

BC Home Sales Moderate in First Quarter

Vancouver, BC – April 13, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 43 per cent to 7,110 units in March compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province increased 6 per cent compared to February 2010. However, home sales in March were 20 per cent lower than December 2009 on a seasonally adjusted basis.  

“Home sales have moderated since the beginning of the year,” said Cameron Muir, BCREA Chief Economist. Waning pent-up demand and eroding affordability were key factors in the market. “Despite an improving provincial economy, higher mortgage interest rates and tighter credit conditions for low-equity homebuyers and investors will squeeze some prospective buyers out of the market this spring,” added Muir.

The BC residential sales dollar volume increased 95 per cent to $9.22 billion in the first quarter of 2010 compared to the same period last year.  Residential units sales rose 64 per cent to 18,284 units, while the average MLS® residential price climbed 19 per cent to $504,312 over the same period.

For immediate release

February Home Sales Strong Despite Olympic Fervor

Vancouver, BC – March 11, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 63 per cent to 5,955 units in February compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province declined 13 per cent compared to January 2010.  

“Home sales continued to moderate in February after the record pace of the fourth quarter.” said Cameron Muir, BCREA Chief Economist. “However, February’s performance was better than expected considering many households were preoccupied with Olympic gold."

The BC residential sales dollar volume increased 91 per cent to $2.96 billion in February compared to the same period last year. The average MLS® residential price climbed 17 per cent to $497,807 over the same period.

"Low mortgage interest rates are continuing to underpin consumer demand and fuel first-time homebuyer activity,” added Muir. “Improving economic conditions are expected to bolster consumer confidence over the coming months.”

The latest edition of RBC Economics Research’s “Economics Digest”, containing succinct summaries of the latest reports produced this month by RBC Economics Research with direct links to each full report, is now posted on our website.

Link to “Economics Digest”
To view, print and download the new report, click on the following link:

http://www.rbc.com/economics/market/pdf/digest.pdf

With kind regards,

Linda Bugaziyanos  | Research Associate, RBC Economics Research | Royal Bank of Canada  | T. 416-974-5845

The 15th annual REALTORS® Care Blanket Drive is on NOW and will run until Monday, December 7. Since 1994, REALTORS® in the Lower Mainland have collected an astonishing 26,000 bags of blankets and warm clothing for people in our communities who need them the most.

This year, donations are needed more than ever. Pick up a bag from any of the Board's 40 participating offices or fill your own bag. The list of drop-off locations is on REALTOR Link® and www.blanketdrive.ca.

Here's what local charities have requested this year:

• NEW blankets, sheets or bedding for drop-in centres afflicted with bed-bugs...they can't accept used items this year.
• GENTLY-USED warm clothing, winter coats, jeans, sweats, hoodies, footwear to be given out to the homeless or working poor
• NEW socks, underwear, gloves or hats, handed out directly to people coming in off the street

Members should know and be proud that this Drive is now a critical contributor to many charities that rely on it to stock their shelves with clothing well into spring. Thank you everyone for your support!

Government listens to Real Estate Board on HST

The BC Government has announced that it will exclude new homes costing up to $525,000 from its proposed 12 per cent Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010.

The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.

This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.

This is good news for the Real Estate Board and proof that its lobbying efforts produce results.

In October 2009, the Board asked the government to raise the threshold for the HST on new homes as well as the new housing rebate.

Clearly the government listened to the Board and the real estate sector.

“We heard the concerns from consumers and industry about how the HST might affect home buyers, and
this increase will move the threshold to above the average new home price in the province,” said the Hon. Colin Hansen, Minister of Finance.

A similar rebate will also support the construction or substantial renovation of affordable rental housing.

The government has released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, which provides details on new housing rebates including transitional rules for real property. This includes:

Transitional rules: The HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010;

Grandparenting: Sales of new homes under written agreements of purchase and sale including presales entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.

For a copy of the new Transitional Rules, visit: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html

Effective 11:59pm ET November 16, 2009 (9pm Pacific)

Rate: Prime -.25% is now 2.00%

Rate hold: Max 30 days

Details:

-       Available for:

-               Purchases up to 95% LTV

-               Refinances up to 90% LTV

-               Fully Qualifying applicants only.

-               Owner occupied single family dwellings.

-       Minimum Beacon Score: 680

-       Minimum Amortization: 10 years

-       Maximum Amortization: 35 years

-       Minimum Mortgage Amount: $100,000

-       All other features such as prepayment, qualifying rates, conversion to fixed, etc. are located in our ARM product guide.

Sincerely,

Kristina Berg, Professional Mortgage Advisor

Integrity Mortgage Inc.

www.integritymortgage.ca

email:  mortgagediva@shaw.ca

Bus:  778-808-7756

Fax:  604-909-4823

There are growing expectations that mortgage rates are increasing: the question is whether the rising rates will expose the fragility - and perhaps sink - the current mini-boom in housing sales. The flush market remains a bit of a mystery, even in B.C. We have fairly high unemployment, a suffering resource sector and lower counts on everything from tourist visits to exports, yet consumer confidence remains apparently unshakeable. But that confidence may be tested. 

There are a number of signals for a rate hike: the surprising strong housing market (Victoria area MLS sales, for instance, hit a 17-year high last month); a stronger Canadian dollar than what the federal government believes is healthy; and fears of higher inflation. We have long felt that interest rates are too low and now it appears more people maybe agreeing with us. 

After the recent rate hike, the big banks are now charging between 5.78% and 5.84% for five-year, fixed rate mortgages. That is up from 5.25% this spring and, while still low in a historical sense, is harbinger of where rates are heading. (Best rate still at 3.9% though.) It would not take much of an increase to cool the housing market, since there are many first-time buyers and investors now active, lured by what can only be described as overly generous aid from Canada Mortgage and Housing Corp.

 Recently, the federal government raised CMHC's allowable insured mortgage limit to $600-billion, or about double what it was two years ago. In 2008, when the market was slow, CMHC managed to insure nearly $150 billion in mortgages, many of which were likely written with from 5% to 10% down payments. Banks are eager to lend with CMHC mortgage insurance, even to questionable applicants: the insurance protects the lenders from defaults. The result is it is easier and cheaper now to buy a $1 million house than a $1 million office building!!!

 Major Point: We are not saying higher interest rates - which are inevitable - will kill the current housing surge, but we believe it will take froth out of the market, especially for lower-end properties. Lock in now before rates go higher, and talk to your mortgage broker to get the best long-term rate - together with the personal bells and whistles you need.

 By: Ozzie Jurock

Lovely remodelled rancher. Repainted inside and out. Extra insul in ceil. New wkshp 10x16+ shed. Garden sized lot w/patio. Backs onto parkland. Quiet cul-de-sac. 1 year Home Warranty!

Immaculate 3 bedroom, 2 bathroom townhouse in beautiful Sunberry Court with 2 decks and a fully fenced yard. You'll be impressed by the spacious open floor plan, granite countertops, stainless steel appliances and 2 car tandem garage. Updat ed laminate flooring on the main makes this home show very well!

Variable-rate mortgages are finally back to prime and it’s been a year in the making.

Not coincidentally, we’ve been coming across more people who are thinking about riding out a variable for the next five years.  It’s a gutsy call given future rate hike expectations, but some people are willing to take the risk.  For those people, it’s worth considering a 1-year mortgage as well.

The key with a 1-year is that you’re not locked into a variable rate for 4-5 years.  Instead, you get a similar rate now, while retaining the option to switch into a variable rate next year at (potentially) below prime.

A 1-year fixed also protects you against rates rising in the next year, should the Bank of Canada hike its overnight target before September 2010.

The risk with a 1-year is that variable rate premiums and fixed rates rise before your renewal. In 8-12 months you could theoretically face prime + 1/4% or more.  Few expect this, but anything’s possible. 

Despite the risk, and given the apparent probabilities, a 1-year near prime frequently makes sense over a variable. Contact Kristina Berg, Integrity Mortgage Inc at 778-808-7756 or mortgagediva@shaw.ca for more details.

Sincerely,

Kristina Berg, Professional Mortgage Advisor

Integrity Mortgage Inc.

www.integritymortgage.ca

email:  mortgagediva@shaw.ca

Bus:  778-808-7756

Fax:  604-909-4823

a 15-million multipurpose complex for Cloverdale is one step closer to reality now thet city council has awarded the contract for its construction.  Construction will continue through most of 2010, with the multi-purpose, 60,000-sf.-ft. building at the corner of 176 street and 62a Avenue expected to open late next year or January 2011.

The new centre is designed to be flexible in an effort to keep pace with the evolving needs of Cloverdale's rapidly growing population, which has jumped by 21,000 to 53,000 in just 10 years, and is projected to grow by another 7,700 in five years.

Canada Mortgage and Housing Corporation (CMHC) is hosting its annual Housing Outlook Conference on Monday, November 9th, running 7:30 am to 12 noon, at the Westin Bayshore Hotel in Vancouver. This event provides housing industry professionals access to timely forecasts and solid analysis on BC�s housing market and is also an excellent networking opportunity.

CMHC experts will share their insights on housing demand, market fundamentals, as well as consumer, new home construction, and resale market trends with a focus on the Vancouver market. You�ll also expand your knowledge of Canada�s financial system and the importance of securitization for mortgage lending and learn what�s new in sustainable housing.

To register, or for more information, call 1.800.668.2642 or visit www.cmhc.ca, and click on Order Desk, then Conferences and Events. Early Bird Rate (before October 12)- $230 per person plus GST; Regular Rate (after October 12) - $265 per person plus GST; Group Rate - $1,200 (table of six) plus GST.

This event sells out every year so be sure to register early!

That's according to the BC Real Estate Association's Housing Forecast for the 3rd quarter of 2009 released on August 27. BCREA forecasts that residential home sales in BC will increase by 15 per cent in 2009 compared to last year and will rise an additional 6 per cent in 2010.

�After 12 months of significant volatility in BC�s housing markets, greater stability is expected through 2010,� said Cameron Muir, BCREA Chief Economist. �Robust housing demand is a strong signal that the economy is coming out of the recession, with a recovery in the broader economy expected to develop over the next three quarters.�  

For Fraser Valley, BCREA is forecasting MLS� sales to increase by 18 per cent this year compared to last year, and another 5 per cent next year. In terms of average prices, their forecast is for prices to decline -3 per cent in 2009 compared to 2008 taking the average Fraser Valley home price to $421,000. For 2010, they're predicting the average price will recover modestly by 2 per cent and reach $428,000.