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Kootenay Connector Real Estate Blog
Nelson BC real estate blog by Robert Goertz of Valhalla Path Realty. Keeping you up to date with the Nelson and West Kootenay real estate markets.
Wednesday, March 22, 2017
Wednesday, March 15, 2017
February Home Sales Reflect Typical Consumer Demand
The British Columbia Real Estate Association (BCREA)
reports that a total of 6,580 residential unit sales were recorded by the
Multiple Listing Service® (MLS®) in February, down 31.7 per cent from the same
period last year. Total sales dollar volume was $4.53 billion, down 39.7 per
cent from February 2016. The average MLS® residential price in the province was
$688,117, an 11.7 per cent decrease from the same period last year.
“Consumer demand has returned to a more typical level
over the first two months of the year," said Cameron Muir, BCREA Chief
Economist. "While the home sales have declined nearly 32 per cent from the
extraordinary performance of a year ago, last month's activity reflected the
average for the month February since the year 2000."
“The average MLS® residential price for the province was
down nearly 12 per cent from a record $779,419 in February 2016. However, this
change is largely the result of a decline in the proportion of provincial sales
originating from the Vancouver region. Last month, 37 per cent of BC home sales
occurred in the Real Estate Board of Greater Vancouver's area, compared to 44
per cent in February 2016.
Year-to-date, BC residential sales dollar volume was down
38.5 per cent to $7.3 billion, when compared with the same period in 2016.
Residential unit sales declined 28.5 per cent to 11,067 units, while the
average MLS® residential price was down 14.1 per cent to $660,943.
Copyright BCREA - reprinted with permission
Tuesday, March 7, 2017
Where do Buyers come from?
This is one of the questions I am most frequently asked. Where are the Buyers coming from? Are they from Alberta? Are they escaping Vancouver or the Lower Mainland? As you can see most of them are still coming from right here.
KREB REALTORS® collect buyer origin information when a property sells. KREB compiles this information and provides yearly reports to members. In 2016, REALTORS® confirmed 3515 buyers’ origins from a total of 3567 sales in the Kootenay Real Estate Board area. Although deemed accurate, KREB cannot guarantee the information contained within the report.
KREB REALTORS® collect buyer origin information when a property sells. KREB compiles this information and provides yearly reports to members. In 2016, REALTORS® confirmed 3515 buyers’ origins from a total of 3567 sales in the Kootenay Real Estate Board area. Although deemed accurate, KREB cannot guarantee the information contained within the report.
Wednesday, February 22, 2017
Budget 2017—BCREA News Release
On the heels of multiple government announcements in 2016
and early 2017, the British Columbia Real Estate Association (BCREA) welcomes
the latest: an increase in the Property Transfer Tax exemption threshold for
first-time buyers, announced in Budget 2017. The increase, to $500,000 from
$475,000, takes effect today.
BCREA appreciates this government’s attention to the
needs of first-time homebuyers. To keep pace with the dynamic real estate
market and ensure that homebuyers aren’t left behind, the Association strongly
believes that this threshold—and all others related to the Property Transfer
Tax—should be indexed, with adjustments made annually.
During Minister de Jong’s budget consultation in January,
BCREA recommended that the first-time buyer exemption be increased to $750,000.
That number would align with the exemption for newly-built homes and with the
BC HOME Partnership program. This measure would have expanded consumer choices,
because the First Time Home Buyers’ Program exemption applies to all homes,
rather than only newly-built homes, which are often out of reach of first-time
buyers.
BCREA also looks forward to learning more about the
provincial government’s plans to partner with local governments to increase
housing supply. Specifically, the Association supports incentives that result
in faster housing and development approval processes, as well as increased
density of family-oriented homes along transit corridors.
Copyright BCREA – reprinted with permission
Friday, February 17, 2017
Economy, Population Growth Support Housing Demand Through 2018
The British Columbia Real Estate Association (BCREA)
released its 2017 First Quarter Housing Forecast Update today.
Multiple Listing Service® (MLS®) residential sales in the
province are forecast to decline 14.1 per cent to 96,345 units this year, after
reaching a record 112,209 units in 2016. A moderation trend that began early in
2016, combined with tougher federal government mortgage qualification rules and
the foreign buyer tax in Vancouver, is expected to limit consumer demand over
the next two years. However, housing demand is expected to remain well above
the ten-year average of 84,700 unit sales.
“Solid fundamentals continue to underpin housing demand
in the province," said Cameron Muir, BCREA Chief Economist.
"International trade, population growth and consumer confidence will be
key economic drivers this year." Of note, net migration to the province
exceeded 50,000 individuals during the first three quarters of 2016, the
highest level since 2008 and a 50 per cent increase from the previous year.
The average MLS® residential price in the province is
forecast to decline nearly 5 per cent to $657,000 this year, largely the result
of increased consumer demand for multi-family homes and a higher proportion of
transactions occurring outside the Metro Vancouver market. While a significant
number of new homes are under construction in the province, market conditions
will continue to be tilted in favour of home sellers in many regions, while
home builders scramble to complete existing projects.
Canadian homeowners’ average before-tax household income was about double that of renters between 2006 and 2014
According to new and revised data from Statistics
Canada’s Canadian Income Survey and Survey of Labour and Income Dynamics, the
average before-tax household income, adjusted for inflation, increased 10.1%
from $79,200 in 2006 to $87,200 in 2014. Homeowners’ average household income
increased from 2006 to 2008, fell from 2008 to 2009, then increased from 2009
to 2014. For renters, the increase was from 2006 to 2008, the decrease between
2009 and 2011, and continuation of the upward trend was from 2012 to 2014.
Canadian homeowners’ average household income was roughly
double that of renters throughout the 2006 to 2014 period. However, renters’
average household income grew more between 2006 and 2014 with a 12.2% increase
compared to 9.8% for homeowners.
In 2014, Alberta had the highest average provincial
household income at $116,400 while New Brunswick had the lowest at $70,800.
Copyright CMHC
BC Home Sales Return to Historic Average
The British Columbia Real Estate Association (BCREA)
reports that a total of 4,487 residential unit sales were recorded by the
Multiple Listing Service® (MLS®) in January, down 23 per cent from the same
period last year. Total sales dollar volume was $2.79 billion, down 36.5 per
cent from January 2016. The average MLS® residential price in the province was
$621,093, a 17.5 per cent decrease from the same period last year.
“Housing demand across the province returned to long-term
average levels last month," said Cameron Muir, BCREA Chief Economist.
"However, regional variations persist, with Victoria posting above average
performance and Vancouver falling below the average."
“A marked decrease in the average MLS® residential price
is largely the result of relatively more home sales occurring outside of the
Lower Mainland," added Muir.
Home sales from Vancouver fell from 43 per cent of
provincial transactions in January 2016 to 35 per cent last month. In addition,
fewer detached home sales in Vancouver relative to multi-family units has
skewed the average price statistic down in the province's largest urban area.
In contrast, the MLS® Residential Benchmark Price in the Real Estate Board of
Greater Vancouver area has declined 3.7 per cent over the past six months, but
is up 15.6 per cent from January 2016.
Copyright BCREA – reprinted with permission
Saturday, January 21, 2017
Bank of Canada Interest Rate Announcement
The Bank of Canada announced this morning that it is
holding the target for its overnight rate at 0.5 per cent. In the press release
accompanying the decision, the Bank noted that uncertainty in the global
outlook, particularly with regard to policies in the United States, is
undiminished. The Canadian economy is forecast to grow 2.1 per cent in both
2017 and 2018, implying the Canadian economy will return to full capacity in
mid-2018. On inflation, the Bank noted
that it continued to be lower than expected but should return to it 2 per cent
target in coming months.
Political uncertainty in the United States will likely
govern the direction of both policy rates and long-term bond yields over the
next year. The interest rate on 5-year government of Canada bonds has risen to
its highest point in a year, which is adding upward pressure to mortgage rates
offered by Canadian lenders. While the
Canadian economy is forecast to post steady growth in 2017, overall slack in
the Canadian economy remains persistent.
Without a significant uptick in economic growth, inflation will likely
continue to trend at or below the Bank's 2 per cent target. That, along with lingering uncertainty, will
keep the Bank sidelined through 2017 with a chance of lowering its target rate
should current downside risks to the economy become realized.
Copyright BCREA – reprinted with permission
Thursday, January 19, 2017
Canadian Manufacturing Sales
Canadian manufacturing sales rose 1.5 per cent in
November after posting a moderate decline the previous month. Sales were higher in 14 of 21 manufacturing
sub-sectors. After adjusting for inflation, the total volume of sales was 1.2
per cent higher.
In BC, where the manufacturing sector is a significant
employer and a key driver of economic growth, sales were up 2.4 per cent on a
monthly basis and 9.2 per cent year-over-year. The manufacturing sector has
been on a significant upswing after a slow first half with sales posting nearly
8 per cent growth over the second half of the year. That growth is adding to
already strong momentum in other sectors and supporting housing demand across
BC communities where manufacturing, particularly of forestry products, is an
important driver of local economic activity.
Copyright BCREA – reprinted with permission
Friday, January 13, 2017
BC Home Sales Post Record Year
The British Columbia Real Estate Association (BCREA)
reports that a record 112,209 residential unit sales were recorded by the
Multiple Listing Service® (MLS®) in 2016, an increase of 9.5 per cent from the
previous year. Total sales dollar volume was a record $77.6 billion, up 18.8
per cent from 2015. The average MLS® residential price in the province climbed
8.6 per cent to $691,144 on an annual basis in 2016.
“Broad-based consumer demand driven by strong economic
conditions, employment growth, consumer confidence, and an expanding population
base pushed home sales to record levels in many BC regions last year,"
said Cameron Muir, BCREA Chief Economist. "However, home sales have fallen
back from their lofty peaks early last year." The seasonally adjusted
annual rate of sales activity was approximately 92,000 units in December.
A total of 4,721 residential unit sales were recorded by
the MLS® in December, down 28.4 per cent from the same month last year. Total
sales dollar volume was $3.1 billion last month, a decline of 33.1 per cent
compared to the same month the previous year. The average MLS® residential
price in the province was $654,699 in December, a 6.6 per cent decline from
December 2015.
Copyright BCREA – reprinted with permission
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