Real Estate Advisor with Engel & Völkers Vancouver, Canada

Cindy Stanley Realty Blog › December 2016

BC government to offer down payment loans for first-time buyers


newsflash

Premier Christy Clark unveiled a new loan program today to help first-time home buyers come up with their down payment.

The BC Home Owner Mortgage and Equity (HOME) Partnership program will offer qualifying home buyers loans of up to $37,500, interest and payment free, for five years.

The province will begin accepting applications on January 16, 2017.

To qualify, buyers must:

• be buying their first home;

• obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price;  

• have a combined gross household income not exceeding $150,000;

• have saved a down payment amount at least equal to the loan amount;

• be a Canadian citizen or permanent resident for at least five years; and

• have lived in BC for at least the full year preceding their application.

The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.

Key facts:

• The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price.

• The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees).

• After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.

• Loans through the program are due after 25 years.

“This program will boost sales to first-time home buyers. Without question, they’ll take advantage of it wherever they can,” said Helmut Pastrick, Central 1 Credit Union chief economist.

The province estimates this initiative will help at least 42,000 buyers or households province-wide over the next three years. About half of these buyers will be in the Lower Mainland, according to Pastrick.

Click here for more information.



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Nearly half of homeowners unprepared for job loss or other emergency


emergency prep

The poll released today by Manulife Bank finds that 24 per cent of those surveyed don't know how much is in their emergency fund, 14 per cent have not put away any funds and nine per cent have access to $1,000 or less.

GETTY IMAGES

 

An emergency fund is meant to be there in times of need, but a new survey suggests nearly half of Canadian homeowners would be ill prepared for a personal financial dilemma such as job loss.

The poll released Thursday by Manulife Bank found that 24 per cent of those surveyed don't know how much is in their emergency fund, 14 per cent admit to not putting away any funds and nine per cent only have access to $1,000 or less.

The remainder of those surveyed have up to $10,000 saved, with the average amount being $5,000.

Manulife Bank chief executive Rick Lunny says not having three to six months of expenses set aside can lead to desperation if a situation arises where you need to access money right away.

"The risk here is when they don't have that money, and an unexpected event happens like you need a new furnace or a car repair, many of these people don't have a choice but to lean on high interest cards," he said.

Lunny noted that instead of taking advantage of the current low-interest rate environment to save money, the poll suggests that many homeowners are using it to buy more expensive homes.

"They've taken on large mortgages and as a result of that, they're stretched in many ways," he said. "Because of that, maybe they haven't had the financial discipline to put aside rainy day money."

Manulife says among those polled, homeowners had an average of $174,000 in mortgage debt, with an average of 28 per cent of their net income going toward paying off their home each month.

 

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Home sales and listings just below 10-year average


VANCOUVER, BC – December 2, 2016 – Home buyer and seller activity remains near
historical averages in the Metro Vancouver* housing market.
 
Residential home sales in the region totalled 2,214 in November 2016, a decrease of 0.9 per cent
from the 2,233 sales recorded in October 2016 and a decrease of 37.2 per cent compared to
November 2015 when 3,524 homes sold.
 
Last month’s sales were 7.6 per cent below the 10-year sales average for the month.
 
“While 2016 has been anything but a normal year for the Metro Vancouver housing market,
supply and demand totals have returned to more historically normal levels over the last few
months,” said Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president.  
 
New listings for detached, attached and apartment properties in Metro Vancouver totalled 3,147
in November 2016. This represents a decrease of 20.9 per cent compared to the 3,981 units listed
in October 2016 and a 7.2 per cent decrease compared to November 2015 when 3,392 properties
were listed.
 
Last month’s new listing count was 1.2 per cent below the region’s 10-year new listing average
for the month.
 
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver
is 8,385, an 8.3 per cent decrease compared to October 2016 (9,143) and a 3.6 per cent increase
compared to November 2015 (8,096).
 
The sales-to-active listings ratio for November 2016 is 26.4 per cent. This is up two per cent
from last month (24.4 per cent).  
 
Downward pressure on home prices can occur when the ratio dips below the 12 per cent mark for
a sustained period, while home prices can experience upward pressure when it surpasses 20 per
cent over several months.
 
“Demand, relative to supply, for detached homes is lower right now than demand for townhomes
and apartments,” Morrison said. “This is causing prices to remain stable, or flat, for townhomes
and apartments, while detached homes are seeing modest month-over-moth declines.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro
Vancouver is currently $908,300. This represents a 1.2 per cent decrease compared to last month
and a 20.5 per cent increase compared to November 2015.
 
Sales of detached properties in November 2016 reached 638, a decrease of 2.1 per cent from the
652 detached sales recorded in October 2016 and a 52.2 per cent decline over November 2015.
The benchmark price for detached properties is $1,511,100. This represents a 2.2 per cent decline
compared to last month and a 23 per cent increase compared to November 2015.
 
Sales of apartment properties reached 1,200 in November 2016, an increase of 1.9 per cent
compared to the 1,178 sales in October 2016 and a 22.7 per cent decrease compared to
November 2015.The benchmark price of an apartment property is $512,100. This is unchanged
from last month and is an 18 per cent increase compared to November 2015.
 
Attached property sales in November 2016 totalled 376, a decrease of 6.7 per cent compared to
the 403 sales in October 2016 and a 40.9 per cent decline compared to November 2015. The
benchmark price of an attached unit is $667,100. This represents a 0.3 per cent decrease
compared to last month and a 23 per cent increase compared to November 2015.
 
*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, Pitt Meadows, Maple Ridge
and South Delta.
 
-30-    
 
The real estate industry is a key economic driver in British Columbia. In 2015, 42,326 homes changed ownership in
the Board’s area, generating $2.7 billion in economic spin-off activity and an estimated 19,000 jobs. The total dollar
value of residential sales transacted through the MLS® system in Greater Vancouver totalled $39 billion in 2015.
The Real Estate Board of Greater Vancouver is an association representing more than 13,000 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.       
 
For more information please contact:  Click Here to View full report
 
Craig Munn
Manager, Communication
Real Estate Board of Greater Vancouver 
604.730.3146



Metro Vancouver Market Highlights November 2016


metro vancouver market highlights november 2016



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