Feds to tighten mortgage rules for homes over 500k.

What impact do you think this will have in your local market?
http://bit.ly/1QzYzmz

Thinking of buying or selling a home next year?

According to a recent RE/MAX survey, the majority
of homeowners say REALTORs® provide value:
http://rem.ax/1NbrACN

Watch CTV News tomorrow evening between 6-7 pm where Jonathan
will make a live donation to Toy Mountain and the Salvation Army on
behalf of local RE/MAX agents. When you see him on TV, take a
photo and tag him on Facebook. You could win a $50 Gift Card
to Moxie’s!

https://www.facebook.com/jonathan.gelderman

MARKET MOMENTUM CONTINUES FOR FRASER VALLEY REAL ESTATE

SURREY, BC – Homebuyers showed no signs of slowing down last month as Fraser Valley REALTORS® experienced their second busiest November on record.

The Fraser Valley Real Estate Board processed 1,766 property sales on the Multiple Listing Service® (MLS®) in November compared with 1,136 in 2014, an increase of 55 per cent. The previous high of 2,154 sales was set in November, 1989.

Jorda Maisey, President of the Board, says, “November is not normally this busy. We’ve experienced our usual, seasonal dip in the number of new listings, but we’re just not seeing a decline in the demand.

“If you’ve been thinking about selling your home to capitalize on any equity you’ve acquired, now is a very good time.”

The Board received 1,854 new listings last month, 14 per cent fewer than were received in October and 6 per cent more than were received during November of last year. Last month’s total inventory in the Fraser Valley was 5,761 active listings; 31 per cent less than were available during November 2014.

Maisey says, “Our housing inventory overall hasn’t been this low since spring of 2006, however it’s important to emphasize that conditions vary depending on property type. Ground‐oriented homes are the highest in demand currently with about one out of every two active listings selling. For apartments, one in five is selling, so condo shoppers will find more selection and have greater negotiating power on price when it comes time to buy.”

The MLS® Home Price Index benchmark price of a detached home in November was $659,700, an increase of 14.7 per cent compared to November of last year when it was $575,400. The MLS® HPI benchmark price of Fraser Valley townhouses increased 6.7 per cent going from $298,900 in November of last year to $318,800 last month. The benchmark price of apartments was $207,100, an increase of 9.3 per cent compared to $189,400 in November 2014.

Maisey adds, “We understand that it is challenging buying a home in a market this competitive and that’s why we’re here, to help our buyers develop a successful strategy to secure the best home for them at a price they can afford.”

Bank of Canada rate update

From BCREA Economist Cameron Muir:

Bank of Canada Interest Rate Decision - December 2, 2015

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that inflation is in line with its outlook with total CPI inflation near the bottom of the Bank's 1 to 3 per cent target range while core inflation remains close to 2 per cent.  On growth, the Bank cited ongoing and complex adjustments in the Canadian economy to low commodity prices, but expects growth to move above potential (usually estimated to be about 2 per cent) in 2016. 
 
Absent a substantial recovery in global commodity prices, the Canadian economy will more than likely grow near its long-term trend rate over the next two years. That rate of growth will keep inflation relatively anchored at or below its 2 per cent target.  A baseline scenario of economic growth above 2 per cent, paired with low inflation and steady job growth should keep the Bank of Canada sidelined over the medium run. However, several quarters of steady growth following the oil price shock of late 2014 may convince policymakers that the economy is no longer in need of the monetary stimulus injected into the economy via two rate cuts in early 2015. If so, the Bank may shift back to a tightening bias with a potential rate increase late next year or in early 2017.

Impending Canadian Housing Crash??

When you read this article that’s started to resurface, you might start to agree to the author’s viewpoint……but he makes a number of errors in reaching his conclusion. Have a read:

http://www.cbc.ca/news/business/housing-market-a-bubble-set-to-burst-hilliard-macbeth-says-1.2784511

Here is why I disagree:

Firstly, let me say that if you predict rain daily in summer at Death Valley, you will be wrong for a very long time. Eventually however, given enough time…..at some point you will finally be vindicated and be able to say "I told you so!" However it neither proves your position as an expert, nor does it prove any intelligence on your part. Predict a housing bubble month by month, year by year, and given enough time you will be proven right……but it could be a very long wait yet.

Here are my issues with the author:

1)      He’s writing a book about it. He needs to scare people into buying his book…..that’s like listening to someone selling Y2K survival kits writing a book about the doomsday of the pending Y2K: if you believe his article, you might buy what he’s selling.

2)      He’s talking about a hard landing where prices could drop 40-50%. In the Fraser Valley, our housing costs are about the same as our land costs…..meaning if values drop 40-50% all the value will be in the construction and $0 in the land. That will never happen in the near future, and I will stake my reputation on that! In fact, I don’t believe we will ever see a drop of 40% on average across Canada, not in the next 10-30 years. Every time we see a massive drop in markets, we learn from the occasion and put more controls in place. We don’t decrease regulation.

3)      Stricter lending rules have already been put in place by CMHC. We’ve seen mortgage amortizations drop from 35 years to 25 years, we’ve seen decreases in rental suite income qualifications, stricter regulation on down payment verification, more stringent requirements for self employed people, tougher qualifications on investors, and so on. This has already happened!

4)      Interest rates have already fluctuated between 2.5 and 4.5% during the past few years, and at no point did buyers cease to qualify or buy. In fact, research has shown the vast majority of home owners could easily afford an increase in excess of 6% interest rates after their 5 year terms renew.

5)      “People should look at housing as where they live….but certainly not expect any investment component.” History has long proven true that real estate provides a more solid, stable, and profitable investment than the stock markets. As John D Rockefeller said, “The major fortunes in America have been made in land.” Then there is my favorite: “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” –Franklin D. Roosevelt

My crystal ball is no better than Hilliard MacBeth’s, however I will add that his position at Richardson GMP is to manage assets primarily in the markets, so he has to be biased against people investing in real estate. I will say this: there don’t appear to be any economic influences on the horizon that will drastically cause a reversal in buyers ability or desire to purchase, and most of his reasons for believing in a crash do not stand up to scrutiny.

So I continue to be an optimist, and yes I’m buying more real estate today.

Jonathan Gelderman

Jonathan has been one of Western Canada’s top producing residential and investment sales agents for over a decade, and manages a multi million dollar real estate investor fund.

 

NO SIGN OF SLOWDOWN FOR FRASER VALLEY REAL ESTATE MARKET

SURREY, BC – Fraser Valley’s housing market remained in a seller’s market in October, fuelled by low interest rates and strong consumer demand, according to the Fraser Valley Real Estate Board.


There were 1,772 sales processed on the Multiple Listing Service® (MLS®) in October compared with 1,448 in 2014, an increase of 22 per cent. For the month, sales are on par with the previous high in October 2005; and historically, only surpassed by the markets of October 1992 and 1989.


Jorda Maisey, President of the Board, says she’s not surprised that October sales were near historic levels, “BC continues to be an economic growth leader in our country and we’re seeing the impact of that in our housing market.


“In the Fraser Valley, demand is strongest for ground-oriented homes. Single family homes and townhomes garnered 83 per cent of our residential market last month. The reasons are due to low interest rates, pent-up demand and most importantly, price. People can afford to own their own single family home in the Fraser Valley.”


The Board received 2,155 new listings last month, 10 per cent fewer listings compared to October of last year. The total active inventory for October was 6,535, down 26 per cent from last year’s 8,807 active listings.


Maisey says with the lack of listings, sellers have had the advantage, “In some of our areas, active inventory of single family detached is down a third to a half of what was available this time last year. The fewer homes available, the more in demand they become, which is why we have seen an impact on prices, most notably on single family detached homes.”


The MLS® Home Price Index benchmark price of a detached home in October was $649,200, an increase of 13.2 per cent compared to October of last year when it was $573,500. The MLS® HPI benchmark price of Fraser Valley townhouses increased 5.1 per cent going from $298,500 in October of last year to $313,700 last month. The benchmark price of apartments was $203,100, an increase of 5.5 per cent compared to $192,600 in October 2014.


Maisey adds, “Our inventory shortage of ground-oriented homes has had a positive spin-off on our condo market. We’ve advised many of our entry-level buyers to consider an apartment rather than a townhome because the selection is far superior and prices, on average, $100,000 less. Many buyers just aren’t aware of the new and resale options available to them.”

SELLER’S MARKET CONTINUES FOR SINGLE FAMILY DETACHED AND TOWNHOMES IN FRASER VALLEY

SURREY, BC – Property sales in the Fraser Valley remained strong in September, consistent with the near-record setting pace of the last six months.

The Fraser Valley Real Estate Board processed 1,727 sales, an increase of 22 per cent compared to 1,419 sales during September of last year. Last month’s sales were on par with September 2005 and second to September’s all-time high for sales in 1992.

Jorda Maisey is the Board’s President. “Sales remain brisk depending on the property type and location. We’re continuing to see many family homes that are priced right receive multiple offers and sell in a matter of days. People actively looking for a home will already know that in some communities, selection is very tight.

“In Langley where I live and work, we have less than two months supply of single family homes and townhomes, which means buyers and their REALTORS® have to be informed, prepared and have a strategy.”

In September, the total number of active listings in the Fraser Valley was 7,122. This represents a 4 per cent decrease compared to August and a 22 per cent decrease compared to September of last year. For September, this is the lowest inventory levels have been since 2006.

Maisey says, “Where we have the best selection currently is within our Fraser Valley condo market. That market is currently in balanced conditions. In most communities, buyers have a healthy choice of both new and resale units and steady sales over the last few months have led to modest increases in prices, which is good news for sellers.”

The MLS® Home Price Index benchmark price of a detached home in September was $639,500, an increase of 12.2 per cent compared to September of last year when it was $569,800. The MLS® HPI benchmark price of Fraser Valley townhouses increased 3.1 per cent going from $299,600 in September of last year to $308,900 last month. The benchmark price of apartments was $197,500, an increase of 2.0 per cent compared to $193,600 in September 2014.

Maisey adds, “Our market this year has reflected consumers’ confidence in the economy and in the Fraser Valley. We have amongst the most affordable real estate in the Lower Mainland in some of the fastest-growing, dynamic communities in BC. It’s a smart place to invest.”

Grade 12 Graduates Eligible for $16,000 through RE/MAX Quest for Excellence Bursary Program

RE/MAX of Western Canada is committed to helping future community leaders by offering $16,000 in bursary funds through its annual Quest for Excellence Program. One recipient—in addition to his/her bursary—will receive a hot air balloon ride for two.

 

The Quest for Excellence Program recognizes the pursuits in leadership and community contributions of Western Canadian students. High school students graduating in 2016 from British Columbia, Alberta, Saskatchewan, Manitoba, Yukon and Northwest Territories are encouraged to write an essay to convey the contributions they have made to enrich the lives of others and their communities: Through leadership, motivation, volunteering and participation in charitable events or fundraising.

 

“Each year we are in awe of the passion and commitment these young adults display in giving back to their communities,” says Marie Sheppy, Manager, Corporate Affairs,RE/MAX of Western Canada. “We are inspired by their stories and are honoured to assist them in their future endeavours.”

 

Sixteen winners will be selected from entries received online at

remax.ca. Each winner will receive a $1,000 RE/MAX Quest for Excellence bursary. All 16 bursary recipients will be placed in a draw and one lucky student will also receive a hot air balloon ride for two from the closest major city. The application deadline is March 9, 2016. Award recipients will be notified in April 2016, with a formal presentation at the students’ commencement ceremonies.

 

“There are many young people in Western Canada who show leadership on a regular basis and maturity beyond their years,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western

Canada. “Their actions help make our communities better places to live. We’re proud to recognize those individuals.”

 

For more information, visit: www.remax.ca.

 

Marie Sheppy  I  RE/MAX of Western Canada (1998), LLC  I  250-860-3628

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.”


Fraser Valley Real Estate Board - Statistics Package

July 2015 Newsletter - STRONGEST JUNE MARKET IN FRASER VALLEY IN 10 YEARS

SURREY, BC – Last month’s sales volumes on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) were the highest for June since 2005 and rank as the fourth busiest month ever for MLS® sales in the Fraser Valley.

There were 2,413 sales processed on the MLS® in June, an increase of 45 per cent compared to the 1,668 sales processed in June of last year and also an increase of 23 per cent compared to May.

Jorda Maisey is the Board’s President. “This is the strongest residential market we’ve experienced since 2005 and prior to that in the early 90’s. What’s generating all this activity?

“Our informal market research shows that the majority of homebuyers in the Fraser Valley are families with children moving within their same community or moving within the Fraser Valley region. Our clients are telling us that they’re feeling confident with the current economic climate in BC and the long-term value of investing in real estate.”

In addition to a surge in sales, the number of new listings also picked up in June increasing by 11 per cent going from 2,989 last year to 3,316 last month; taking the number of active listings to 8,105.

Maisey adds, “With demand for detached homes and townhomes at peak levels, our advice to prospective buyers is interview a number of REALTORS® for help navigating what can be a stressful market. With the average home selling in just over a month and many homes receiving multiple offers, you need an expert to find you a home, protect you and position you for success.”

In June, the MLS® Home Price Index (MLS® HPI) benchmark price of a detached home was $609,900, an increase of 7.3 per cent compared to June 2014 when it was $568,600. The benchmark price of townhouses in June was $302,600, an increase of 1.6 per cent compared to $297,800 in June 2014. The benchmark price of apartments decreased year-over-year by 2.6 per cent, going from $197,000 in June 2014, to $191,900 last month.

June 2015 Newsletter - SLIGHT SHIFT IN FRASER VALLEY MARKET IN MAY; SALES EDGE DOWN WHILE INVENTORY INCHES UP

(Surrey, BC) – Sales on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) in May remained at strong levels – the highest since 2007 – however, they softened slightly compared to April.

There were 1,969 MLS® sales processed in May, a decrease of 2 per cent compared to April, however an increase of 21 per cent compared to the 1,633 sales processed in May of last year.

Jorda Maisey is the Board’s President. “Home sales in the Fraser Valley maintained a strong pace in May; however, we noticed a slight shift in the market. In certain areas, we saw interest in higher-end detached homes pick up while demand for attached homes, which typically appeal to first-time buyers, decreased.

 “The result is that the selection of apartments in the Fraser Valley improved in the last month creating greater opportunities for buyers. Inventory of detached homes and townhomes remains tight, keeping the market elevated.”

In May, the total number of active listings on the MLS® was 8,512, an increase of 1.5 per cent compared to April and a decrease of 14 per cent compared to May 2014. The volume of new listings decreased 7 per cent compared to April, and was also down 7 per cent compared to May of last year.

Maisey continues, “It may help consumers to understand that over half the housing inventory in the Fraser Valley is attached homes, either condos or townhomes, while 60 per cent of all home sales are for single family detached.

“What buyers and sellers are experiencing is effectively two markets: a sellers’ market for detached homes and townhomes and a balanced or buyers’ market depending on the location, for apartments. In either situation, you can benefit a tremendous amount from the experience and advice of your local REALTOR®.”

In May, the MLS® Home Price Index (MLS® HPI) benchmark price of a detached home was $603,100, an increase of 6.5 per cent compared to May 2014 when it was $595,600.

The benchmark price of townhouses in May was $303,100, an increase of 2 per cent compared to $297,300 in May 2014. The benchmark price of apartments decreased year-over-year by 2.8 per cent, going from $198,100 in May 2014, to $192,500 last month.


 - Fraser Valley Real Estate Board

RE/MAX expects ongoing seller's market and 6% increase in residential sale price for Vancouver in 2015

Click here to find out why --->


http://download.remax.ca/PR/SMT2015/Report/2015SpringMarketTrendsReport.pdf

2015 Quest for Excellence® Winners Announced!

Kelowna, BC (April 6, 2015) – Sixteen students from Western Canada are to be awarded a RE/MAX 2015 ‘Quest for Excellence’ bursary, valued at $1,000, during their school commencement ceremonies.

 

The annual RE/MAX Quest for Excellence program encourages graduating students from British Columbia, Alberta, Saskatchewan, Manitoba, North West and Yukon Territories to submit an essay detailing the contributions they have made to their communities. The bursary winners have all demonstrated exceptional motivation, leadership, and communication skills.

 

“The dedication and motivation these future leaders display at such a young age is truly inspiring,” said Marie Sheppy, Manager, Corporate Affairs, RE/MAX of Western Canada.

 

“We are very proud of the Quest for Excellence Bursary Program. It allows us to recognize outstanding students who have made significant contributions to their communities. Equally as important, the program recognizes the power that education provides; which is absolutely core to our own beliefs at RE/MAX,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Congratulations to all of this year’s recipients!”

 

Quest for Excellence Bursary Winners are as follows:

 

Erica Baker, Yorkton, SK

 

Tevin Ma, Calgary, AB

 

Shoni Baker, Red Deer, AB

               

Robert MacDonald, Victoria, BC

 

Amanda Dendys, Whitehorse, YK

               

Branden Notschaele, Regina, SK

 

Ryan Dunn, Fort McMurray, AB

               

Victoria Rea, Fort St. John, BC

 

Hannah Green, North Vancouver, BC

 

Julia Robertson, Spruce Grove, AB

 

Mollie Green, Mill Bay, BC

               

Kirsten Wiklund, Kelowna, BC

 

Morgan Hanson-Oliveira, Thompson, MB

               

Renee Yu, Edmonton, AB

 

Max Lu, Surrey, BC

               

Emily Zhou, Winnipeg, MB

 

RE/MAX of Western Canada would like to thank all applicants for their submissions and wish each and every one of them continued success in their own Quest for Excellence®.


To view our 2015 Quest for Excellence® winners, click here


To view the winning essays, click here


Previous Quest for Excellence® Bursary Winners


2014 Winners, click here


2013 Winners, click here

MARCH PROPERTY SALES CLIMB IN THE FRASER VALLEY

(Surrey, BC) – In March, sales on the Fraser Valley Real Estate Board's Multiple Listing Service® (MLS®) reached the highest they've been in nine years. The Board processed 1,857 sales, a 47 per cent increase compared to the 1,259 sales in March of last year. Sales during March of 2006 were 2,072.
Jorda Maisey, President of the Board, attributes the strength in the market to a number of factors. “Our population is growing, interest rates continue to remain supportive of housing demand and consumers are confident. It all adds up to a desire to invest in real estate now.”
In March, the Board processed 11 per cent more new listings compared to March 2014, however higher sales eroded the number of active listings. March finished with 8,193 active listings of all property types, 7 per cent fewer than available during the same month last year.
Maisey adds, “It's important to emphasize that supply and demand vary depending on property type and location. Currently, demand for single family detached homes is outpacing supply in most Fraser Valley communities resulting in lower inventory levels, upward pressure on prices and homes selling faster than they did last year.
“For buyers looking for a detached home or in certain areas a townhome, your REALTOR® will advise that selection is limited, you will have less time to make decisions and their ability to negotiate a lower price for you is diminished. This is not the case if you're looking to invest in an apartment or an acreage property where the market continues to favour buyers.”
The MLS® HPI benchmark price of a Fraser Valley single family detached home in March was $588,500, an increase of 4.5 per cent compared to March 2014 when it was $563,400.
In March, the benchmark price of townhouses was $299,700, an increase of 0.9 per cent compared to $297,100 in March 2014. The benchmark price of apartments decreased year-over-year by 2.4 per cent, going from $195,400 in March 2014 to $190,800 in March 2015.
In March, the average number of days to sell a single family detached home in the Fraser Valley was 38 days, down from 44 days in 2014. Townhomes took 48 days on average to sell, while apartments took 61 days, both comparable with March of last year.

EARLY SPRING FEVER HITS FRASER VALLEY REAL ESTATE MARKET

(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.



Full package:
http://www.fvreb.bc.ca/statistics/Package%20201502.pdf

Real Estate Watch: Unsold condos stacking up outside Toronto and Vancouver

When the federal government tightened mortgage rules in 2012, overheated condo markets in Toronto and Vancouver were widely seen as the main target. But little more than two years later, it’s many smaller cities that are bearing the brunt of stricter regulations.


Winnipeg, Montreal and Moncton are grappling with a surplus of unsold condo units driven by a surge in new construction and a dwindling supply of first-time buyers in the wake of Ottawa’s decision in June, 2012, to limit mortgage insurance to amortization periods of 25 years or less from 30 years.


While deep-pocketed investors in Toronto and Vancouver stepped in to fill the void, the picture has been different in smaller markets where condo sales are driven largely by first-time buyers.


“It definitely had an effect on first-time buyers,” said Paul Cardinal, manager of market analysis for the Quebec Federation of Real Estate Boards.


“What’s not really intuitive is that you would have thought the most expensive markets would have been impacted more than the less expensive market, but that’s not necessarily the case.”


The downturn has been most painful in Quebec, where the boom in condo construction started in 2011 and 2012 as young buyers, armed with cheap mortgages, flocked to the housing market.
Roughly a third of Quebec buyers had taken out mortgages with 30-year amortizations – and that number rose to 40 per cent in Montreal, Mr. Cardinal said. He calculated that the change was the equivalent of raising interest rates by one percentage point.


Similar problems have plagued markets such as Moncton and Halifax, according to a recent housing market forecast from Re/Max. In Regina and Saskatoon, the number of unsold housing units hit a 30-year high, Canadian Mortgage and Housing Corporation said, the majority of them condos.


Winnipeg has also seen a surge of new condo construction since 2012 as builders rushed to cater to new immigrants under Manitoba’s provincial nominee program and retirees looking to downsize and spend their winters down south.


Last year was the first time in 30 years that the city saw more multifamily units under construction than single-family homes. The level of unsold inventory has been rising, as have rental vacancy rates, sparking concerns about overbuilding. “That’s something we’re keeping an eye on,” said Dianne Himbeault, CMHC senior market analyst. “At this point levels are above the five-year average in terms of completed an unoccupied units.”


Montreal in particular has been grappling with a glut of unsold condos for the past two years as builders haven’t scaled back their plans in the wake of softening demand. The city had a backlog of nearly 3,000 unsold condos last year, yet condo starts in Montreal rose 19 per cent, defying analyst expectations for a slowdown in new construction.


There are now nearly 20 condo sellers for every one buyer in Quebec City and downtown Montreal, well above the long-term average, said Hélène Bégin, chief economist at Desjardins Group.


In Gatineau, near Ottawa, condo prices have fallen 14 per cent, as stricter rules and federal government job cuts have sapped the confidence of new buyers.


Yet despite a rising stockpile of unsold units, prices in Montreal’s condo market haven’t fallen, rising 1 per cent last year, in large part because developers are choosing instead of offer generous incentives instead of price breaks. “Instead of taking $10,000 or $20,000 off the price, they’re offering to furnish it with the whole washer, dryer, dishwasher, stove and fridge,” said real estate agent Mike Abatzidis of Re/Max Du Cartier.


Desjardins’ Ms. Bégin expects to see a slowdown in new construction this year if the city is to avoid a serious downturn in its condo market. “If we don’t, the adjustment will be just more painful,” she said.


Not everyone agrees. In downtown Montreal, a joint venture backed by Chinese investors recently broke ground on one of the city’s most ambitious condo projects, a two-phase, 800-unit project known as YUL Condominiums.


“This is a world-class city which is still not seen as a condo market,” said Steve Di Fruscia, CEO of Tianco Group, the Vancouver-based company developing the project with Montreal’s Brivia Group. “It’s just a question of time to get the local community out of the rental market and into [condos].”

So far the project is 50-percent sold, but Mr. Di Fruscia says he confident the city’s glut of unsold condo inventory is merely the short-term growing pains of a city whose condo market is still developing.


“We are very bullish on Montreal,” he said. “We think it’s a great time to plant seeds. We are very hungry for some more real estate in the city.”
 By: Tasmin McMahon, The Globe and Mail

WIN A GROUP OF 10 TICKETS TO WHL HOCKEY

RE/MAX wants to send your group of 10 to enjoy great local major junior hockey action! Enter for your chance to be sitting in the RE/MAX Home Team Contest Winners Section! Brought to you by your local RE/MAX agents!


Click here to enter ===>  http://media.whl.ca/forms/remax_home_team_contest-f53


Contest open until February 28, 2015

Canada Post cuts hit Abbotsford and Chilliwack this fall

Starting this fall, residents in Abbotsford and Chilliwack will no longer have mail delivered to their doors and will instead have to pick up mail from community mailboxes. The Fraser Valley cities will be among the first B.C. communities to lose door to door service.


Staff at the Chilliwack mail depot were notified of the change last week.


“Over the next several weeks and months, we will be able to determine in greater detail the impact on employees in your location,” said an internal memo.


More than 12,000 households in Chilliwack and at least another 15,000 in Abbotsford will be affected.


“They said that we’d be losing 40 to 45 percent of our workforce in the letter carrier delivery system by putting them into community mailboxes,” said Canadian Union of Postal Workers Local 741 President Peter Butcher.


“We have 23 routes altogether. With a 45 percent [reduction in staff] we’ll be looking at maybe 12 routes.”


Butcher is also worried about mail theft at community mailboxes, which have become targets for thieves. Canada Post is using more secure boxes, but Butcher doesn't believe that will make much of a difference.


“Mail theft is still a huge issue,” Butcher said. “We’re still getting break-ins and they’re not getting fixed. We had one in December and it’s still not fixed.”


Door-to-door service will also be cut this fall in Mission, Ladner and a handful of communities on Vancouver Island, as part of a cost-cutting plan to phase out home delivery across the country over the next five years. Rural service will not be affected.


By Jesse Johnston, CBC News

Continuing low interest rates and a healthy stream of newcomers will ensure the good times keep rolling in 2015

VANCOUVER — Continuing low interest rates and a healthy stream of newcomers will ensure the good times keep rolling in 2015 for the Lower Mainland’s property development industry. But it also means pricing will continue to pose a challenge.


Three of B.C.’s biggest developers used adjectives like “great” and “incredibly positive” as they delivered a forecast last week to more than 1,100 industry insiders and politicians attending an Urban Development Institute luncheon.


“Vancouver is going to do well, everyone wants to be here,” declared David Negrin, president of Aquilini Development.


He said a recent crackdown on democracy protesters in Hong Kong is likely to enhance Vancouver’s prospects. “We’re very positive on Vancouver, and it’s going to continue for some time.”


Added Neil Chrystal, CEO of Polygon Homes: “We’re picturesque, have a healthy environment, we’re a clean, safe city offering excellent health care and educational opportunities. We are politically stable and close to Asia.


“I see no sign of the residential market slowing down. ... The market will remain balanced and stable in the year ahead.”


B.C. will experience net immigration in 2015 of some 34,600 immigrants and 2,600 provincial migrants, according to research by Mac Marketing Solutions, a company that plans and markets housing projects.


Mac, with offices in Vancouver and Calgary, forecasts that in subsequent years even larger numbers of both immigrants and Canadians will arrive, noting Alberta’s economic slowdown will make heading further west all the more attractive.


So, while a total of 37,200 newcomers are expected this year, the number should grow to 53,200 by 2018.


Combine that trend with low interest rates and a low vacancy rate in the region, and you have a recipe for continuing strong growth in the property development and real estate sectors. Unfortunately, that does not augur well for affordability.


Between 2006 and 2014, benchmark prices for all types of real estate in Metro Vancouver saw significant price jumps, according to Mac research, with the greatest increase — 46 per cent — recorded in Vancouver’s east side. West Vancouver and Vancouver’s west side both saw increases of 41 per cent.


Referencing the retail sector, Kevin Layden, CEO of Wesbild, said North American stores are downsizing as they move online. But even here, Vancouver is well positioned, never having enthusiastically adopted a big-box retail model.


The city has 13 square feet of retail space per capita, compared to a Canadian per capita rate of 19 square feet and the U.S.’s 30 square feet.


Commenting on Vancouver’s affordability crisis, Negrin cited the high cost of land and remarked: “Everyone is frustrated.” The only way to keep prices down is to increase density, he said.


Yet a Demographia study released last week on housing affordability argues density and urban land containment boost housing prices by restricting development of cheaper perimeter lands.


Chrystal argued development is being constrained by an overly complex and time-consuming municipal approval process. At UBC, he reported, the development approval process takes six months, compared to 12 to 30 months elsewhere in the region.


Added Negrin: “We have to find a way to streamline the process. Anything over one year is too long.”


Chrystal pointed to another challenge for Lower Mainland developers — offshore buyers are starting to purchase land for development that he said could lead to oversupply in certain markets.


They are also posing a challenge in terms of what they are prepared to pay for land acquisitions. “They may be parking money from offshore. We can’t compete on price.”


The developers complained of increasing costs for building materials and a stronger U.S. dollar, forcing higher costs. Prices for drywall, windows and steel were cited.

By Barbara Yaffe - The Vancouver Sun

Home prices fall in Calgary as real estate chill deepens

The Calgary housing market is cooling fast. New sales and listing data for the first half of the month have been released and the numbers aren’t pretty.


The number of homes trading hands has plunged 37 per cent compared to the first two weeks of January 2014, while the number of active listings surged 64 per percent.

That means there are far more homes up for sale in Canada’s energy capital compared to a year ago, and far fewer buyers. The result: prices declined 1.5 per cent, according to data from the city’s real estate board.

There are now more than 4,000 homes on the market in Calgary versus about 2,500 in the same period a year ago.


“Calgary’s high-flying housing market has caught a serious chill,” Sal Guatieri, senior economist at Bank of Montreal, said Monday afternoon.


The price drop “is likely the start of a correction,” the economist said.


Until very recently, Calgary’s housing market was the top performing in the country alongside Toronto and Vancouver. Plunging oil prices have worked quickly to cool things down, however.


Oil prices have declined to about $47 (U.S.) a barrel, down more than 55 per cent from their June peak. The plunge has seen investment plans by companies in the energy patch cut back and led to layoffs. Most experts expect oil to remain at their current levels well into the new year.


A report from the Conference Board of Canada last week predicted that Alberta, which accounted for one in three new jobs in Canada last year, will contract in 2015 – an outlook Alberta Premier Jim Prentice disputed.


“More pain lies ahead,” BMO’s Guatieri said of the Alberta real estate market, noting pending sales in the province’s biggest city are also down 53 per cent year over year. “Ouch.”


BMO says economic growth in Alberta won’t contract this year but will slow to a crawl, or 0.5 per cent. That’s a sharp deceleration from the average annual growth rate of about 3.5 per cent in recent years, or the best clip in the country.








By Jamie Sturgeon 
Global News

REALTORS® HELP FRASER VALLEY FOOD BANKS BRING IN THE NEW YEAR WITH $21,000 DONATION

SURREY, BC – On behalf of Fraser Valley’s 2,700-plus REALTORS®, the Fraser Valley Real Estate Board has donated $21,000 to five of its region’s food banks.

Ray Werger is the Board’s president. “As REALTORS®, it is our commitment to support our communities in which we both live and work. The Fraser Valley continues to grow and develop each year at an incredible rate, and so does the need for food for our neighbours who are less fortunate.”

Werger adds, “In our region alone, food banks serve approximately 22,000 people every month, many of whom are children and babies. We hope this gift will help in providing aid for Fraser Valley residents that is so desperately needed.”

As in previous years, the donation is divided proportionately based on the number of REALTORS® represented in each community with $9,450 going to the Surrey Food Bank; $4,200 going to the Langley Food Bank; $3,900 going to Sources White Rock South Surrey Food Bank; $2,730 to the Abbotsford Food Bank; and $630 to St. Joseph’s Food Bank in Mission.

Marilyn Herrmann, Executive Director of the Surrey Food Bank, received FVREB’s cheque on behalf of the communities of North Delta and Surrey. “Regardless of where you live, there will always be someone close to you, be it a stranger or friend, who is hungry or needs to feed their family.

“We are very grateful to have received this gift, especially as this is a demanding time of year for many. Food banks in the Fraser Valley face an increasing population of low-income neighbours who need our help and our work is reliant on the donations we receive throughout the year. Thank you Fraser Valley REALTORS® for contributing to our vision to reduce hunger and elevate the quality of life in our communities.”

British Columbia’s food banks support nearly 100,000 people every year. To support your local food bank, please visit www.foodbanksbc.com. For more information about all FVREB community giving initiatives, go to www.fvreb.bc.ca.


By: Fraser Valley Real Estate Board

Real estate gains strongest for detached houses in 2014

Lower Mainland real estate prices recorded modest to strong gains in 2014, with detached houses generally rising faster than townhouses or condos.


Year-end statistics released by the Greater Vancouver and Fraser Valley real estate boards show benchmark detached houses on average gained 6.7 per cent over the past year.


Those increases ranged from more than 10 per cent in Vancouver, Tsawwassen and Burnaby to less than five per cent in West Vancouver, Maple Ridge, Pitt Meadows, Port Coquitlam, Langley, Abbotsford, Mission and parts of Surrey.


The increases pushed the benchmark price of houses above $1 million for the first time in Burnaby and for the Greater Vancouver area as a whole.


Benchmark house prices across the Fraser Valley area, which includes Surrey, White Rock and North Delta, ended the year at $573,100.


Benchmark prices show the shifts of a typical property and exclude the most expensive ones that can skew average prices much higher.


Price increases were more muted for townhouses and condos across the region.


Townhouses or attached homes averaged a 2.6 per cent gain across the Lower Mainland, with the strongest gains of more than seven per cent recorded in Maple Ridge, North Delta, Squamish and Vancouver's west side.


Benchmark townhouse prices were $293,500 in the Fraser Valley and $476,000 in Greater Vancouver.


Condo prices dropped in value in several areas in 2014, with the Fraser Valley benchmark down 0.8 per cent and the biggest drops of nearly 10 per cent in Maple Ridge and North Surrey. Greater Vancouver condos gained 3.5 per cent on average.


Benchmark condo prices ended the year at $191,100 for the Fraser Valley and $380,700 for Greater Vancouver.


The December 2014 statistics provided by realtor associations are different from the just-released home assessments, which are conducted by BC Assessment and are intended to provide a valuation snapshot as of each July 1.


by  Jeff Nagel - Surrey North Delta Leader


To view graphs click here

Steady home sales in December cap solid year for Fraser Valley real estate

SURREY, BC – Fraser’s Valley’s real estate market returned to normal activity levels in 2014 with sales of single family detached homes leading the way.

Ray Werger, President of the Board, says, “It was a busy year for both buyers and sellers. In 2014, both sales and new listings were stronger in Fraser Valley compared to 2013 – most notably for detached homes and townhomes – with the result that we’ve returned to normal market activity for our region on par with our 10‐year average.” 

The Board’s Multiple Listing Service® (MLS®) processed 15,840 sales in 2014, compared to 13,663 the previous year, an increase of 16 per cent. It also received 4 per cent more new listings during the same time period – 30,642 in 2014 compared to 29,338 in 2013. Over the year, the number of active listings for buyers to choose from dropped by 23 per cent going from 7,541 properties in December 2013 to 6,380 in December 2014. 

According to Werger, sales during the month of December followed the same trend as every month in 2014 with sales surpassing the same month compared to 2013. “It was the third busiest December we’ve experienced in the last decade with sales almost keeping pace with the number of new listings.

“As a result, we’ve seen our inventory deplete, which is normal for this time of year however, our selection hasn’t been this low for almost eight years. We hope to see the usual influx of new listings during the first quarter of 2015 because we’re currently seeing a shortage of affordably priced single family detached homes in certain areas.” 

In December, sales increased by 21 per cent, going from 890 in 2013 to 1,075 last month. New listings increased by 13 per cent in December compared to 2013 going from 1,013 to 1,147.

 Home prices in December continued along the same trends as seen for most of 2014, with prices of single family detached homes continuing to rise; townhouse prices remaining steady, and apartment prices decreasing slightly. The MLS® Home Price Index (MLS® HPI) benchmark price of a detached home in December was $573,100 an increase of 4.3 per cent compared to December 2013, when it was $549,500. 

The MLS® HPI benchmark price of townhouses in December was $293,500 on par with $293,300 in December 2013. The benchmark price of apartments decreased year‐over‐year by 0.8 per cent, going from $192,600 in December 2013 to $191,100 in December 2014.

Information provided by Fraser Valley Real Estate Board