residential properties

The Housing Market Scenario At the Greater Vancouver Area In 2010

The housing price at the Greater Vancouver Area in Canada has significantly increased in the present times. As per industry exerts, the residential real estate market has roared back in 2010 with the housing prices at or above pre-recession levels.  One of an interesting feature is that the housing sales have also increased notably at the beginning of the second quarter in 2010.

As per the reports of REBGV (Real Estate Board of Greater Vancouver), about 3,512 residential properties have been sold in April 2010. It is about 18.5% increase in comparison to 2,693 sales during the same month a year back and 9.1% increase (with 3,218 sales) from that of April 2008. The housing sales figure of April 2010 also signifies that there has been about 12% increase in comparison to March 2010.

There have been about 7,648 new listings (in April 2010) for attached, detached and apartment properties in the Greater Vancouver Area that amounts to about 64.5% increase as compared to the similar period in 2009. In comparison to March 2010, there has been about 9.2% increase in property listings. The sales of detached, attached and apartment properties have also increased remarkably in the past 1 year.

The housing prices have also increased during the similar time period. In the past 12 months, the HPI (Housing Price Index) benchmark for all residential real estate properties has increased from $499,021 (in April 2009) to $593,419 (in April 2010). The benchmark for detached, attached and apartment properties in April 2010 has increased by 21.2%, 16.4% and 16.9% respectively as compared to April 2009.

One of the major reasons behind the increased price of Vancouver homes is that the demand has been a lot more than the supply for the past 1 year. According to the industry experts, the housing price will continue to be higher in 2010. So, this is the ideal time for the Vancouverites to own a property before the price rises more. Moreover, the low mortgage rates may soon disappear along with the addition of 12% HST (‘Harmonized Sales Tax’, the combined federal-provincial tax) to the price of homes from July 1, 2010.

Due to the housing mortgage meltdown in US, Canadian lenders have become cautious about offering home loans to the borrowers. They’re assessing the financial condition of the mortgage borrower before originating a home loan. So, make sure that your finances are in order so that you can qualify for taking out a mortgage loan if you want to own a property in the Greater Vancouver Area, Canada.

residential properties

What You Should Know About HST Housing Rebate In BC

As you’ve already known that July 1st is the day when the BC provincial government and federal government will combine the 7% provincial sales tax (PST) and the 5% federal Goods and Services Tax (GST) into a 12% Harmonized Sales Tax (HST).

People here in BC had talked or complained about this new tax a lot since the day it’s announced back in Summer 2009. Now is the time to start preparing for this change, no matter what. As a rule of thumb, the GST rules that now apply to residential property will also apply under the HST.

New rules about HST housing rebate:

Buyers of new homes will be eligible for a rebate of 71.43% of the provincial portion (7% of the HST’s 12%) of the HST paid on the new home up to a maximum rebate of $26,250. Homes prices at more than $525,000 will be eligible for a flat rebate of $26,250.

The rule is pretty straight forward. But that new rebate of the provincial portion will be for primary residence purchase only. Or if you are a residential property developer or builder, you may qualify for up to $8,663 rebate.

When everybody is talking about the New rebate, people almost forget the Old one. That is the Federal GST new housing rebate, which is 36% of the tax paid on the first $350,000 of the home price. The GST rebate is phased out for homes priced between $350,000 and $450,000.

Here is an example of you buying a new home valued at $1,000,000. If you purchase it now you will get no tax rebate from either BC government or Federal government. And you will pay 50,000 GST. If you purchase it on or after July 1, you will be qualified for $26,250 new housing rebate. But you will pay $120,000 HST.

That’s a big difference! Especially for my potential clients who will most likely invest in properties in Vancouver west side, West Vancouver. Because the housing price is rarely go below $1,000,000 when you invest in single house in those areas.

Another interesting thing about this new housing rebate is…

There is an enhanced provincial New Rental Housing rebate. If you construct or substantially renovate a residential property to rent to tenants, you will be eligible for a rebate up to $26,250 on units priced up to $525,000. There is a flat rebate of $26,250 for units priced above $525,000.

So the interesting thing is: you will not be eligible for any housing rebate if you buy a new property which is not your principal residence and you don’t rent it.

But, if you buy a new rental apartment building and rent all of the units, you will be eligible for a New Rental Housing Rebate for each unit up to a maximum rebate of $26,250 per unit.

Of course, there are always some conditions apply that you want to double check with BC government about new HST rules.

And actually the new HST rule won’t just impact on new home price. Because the overall housing market value, including those previously built homes, will be adjusted to a higher level when the new HST rules apply.

residential properties

Vancouver Real Estate News: Housing supply and demand reach closer alignment in January

According to The Real Estate Board of Greater Vancouver (REBGV) latest report, residential property sales in Greater Vancouver totalled 1,923 in January 2010, an increase of 152.4 per cent compared to January 2009 when 762 sales were recorded and a 23.5 per cent decline compared to the 2,515 sales recorded in December 2009.

The news was released lately in VANCOUVER, B.C. on February 2, 2010.

In terms of historical perspective, January ranked as an average month for number of residential housing sales over the past decade, with higher sales in January 2002, 2003, 2004, and 2006.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 17.2 per cent to $573,241 from $489,007 in January 2009. This price is 0.8 per cent
above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

There is also closer alignment between supply and demand in today’s housing market. At 18 per cent, the sales to-active listings ratio in January is approximately 10 per cent lower than we’ve seen in our market over the last six
months.

In January, sales of detached properties increased 141.4 per cent to 705 from the 292 detached sales recorded during the same period in 2009. The benchmark price, as calculated by the MLSLink® Housing Price Index, for detached
properties increased 19.5 per cent from January 2009 to $788,499.

Sales of apartment properties in January 2010 increased 146.8 per cent to 891 compared to 361 sales in January 2009. The benchmark price of an apartment property increased 15.2 per cent from January 2009 to $385,487.
Attached property sales in January 2010 are up 200 per cent to 327, compared with the 109 sales in January 2009. The benchmark price of an attached unit increased 13.4 per cent between January 2009 and 2010 to $482,478.

While everyone is wondering how the Olympics is going to effect on Vancouver’s real estate market in February and in the future, diverse selection and favorable interest rates continue to drive demand in the Greater Vancouver housing market.

Download the complete report with chart (PDF) here.