B.C. to drop HST for 'improved' PST

B.C. will drop the HST and return to an "improved" PST next year with all previous exemptions, Finance Minister Kevin Falcon announced on Monday in Victoria.
The legislation introduced by Falcon Monday includes some significant changes to the old tax, but only a few basic exemptions — such as those food and fuel — were contained in the bill.
Falcon promised those would be included in regulations to be introduced in the fall.
"As promised, on April 1, 2013 consumers will only pay PST on those goods and services that were subject to PST before the implementation of the HST. All permanent PST exemptions will be re-implemented," said Falcon.
"There will be no PST on purchases like food, restaurant meals, bicycles, gym memberships, movie tickets or for personal services like haircuts, just as it was previously."
NDP finance critic Bruce Ralston says the government's message is, "Trust us."
"And I think, frankly on this file, the government doesn't have a big reservoir of trust," Ralston said.

Changes for businesses

For business, there are a number of changes being introduced in the legislation, including an online system that will allow businesses to track their PST information and remit payments.
The online system will cut down on paperwork, allowing the government to reduce the number of staff needed to administer the PST by about one third.
The Liberal government had taken a lot of criticism in recent months for delays in revealing exactly what the PST will look like once it's reinstated along with the GST.
The opposition NDP had suggested the PST might not feature the same exemptions it did before it was removed to make way for the HST.
Prior to the introduction of the 12 per cent Harmonized Sales Tax in July 2010, B.C. residents paid a combination of the federal government's five per cent Goods and Services Tax and B.C.'s seven per cent Provincial Sales Tax on most items.
But the HST eliminated a number of significant exemptions. For example, restaurant meals were previously exempt from PST but were fully taxed under the HST system.
The HST was soundly defeated in a province-wide referendum last summer after a successful campaign to scrap the tax. That tax revolt eventually lead to the resignation of former premier Gordon Campbell and has been equally damaging to current Premier Christy Clark.

CBC News  May 14, 2012

Maintenance Matters: Cladding in Multi-Unit Residential Buildings

Advice from the Homeowner Protection Branch of BC Housing on preventative measures to help ensure the exterior cladding of your building stays in good shape and how to know when to call in professional assistance. Cladding is the first line of defence in an exterior wall assembly. It's critical for the protection of the building's interior and an important part of the building's appearance.

The Corporation of the City of Nelson launches the “ecosave” energy retrofits program

The City of Nelson is pleased to announce the launch of the EcoSave Energy Retrofits Program. This pilot program will be implemented by Nelson Hydro over the course of 2012 and 2013. The program objective is to encourage homeowners to make energy efficiency improvements to their properties thereby reducing energy dependency and reducing greenhouse gas emissions.  

This program is one of the measures being taken to achieve the goals of the Low Carbon Path to 2040 plan the city recently adopted. Through the EcoSave Program homeowners can access reduced cost home energy assessments, rebates for energy efficiency improvements to their home and may qualify for a Nelson Hydro on-bill financing program. 

Mayor John Dooley states “The Nelson Hydro EcoSave Energy Retrofit Program is another way we can help our citizens to reduce our energy consumption and greenhouse gas emissions, we will continue to seek out new and innovative ways to meet our commitment to a healthy environment in Nelson”

Councillor Donna Macdonald further stated “Nelson is a leader in fighting climate change, and the EcoSave Program will help us reduce emissions and energy. It's an exciting, innovative program, and communities across the country are watching its development."

The public rollout of the program is beginning immediately.

April 2012 Housing Starts

The seasonally adjusted annual rate of housing starts was 244,900 units in April, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 214,800 units in March.

“Most of the increase was in the multiples segment. The increase in this segment is partly a reflection of the high level of pre-sales in large multi-unit projects since 2011, which is in line with job gains over the last year,” said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre. “Looking at single-detached homes, 67,700 such units were started across Canada in April, a rate which is consistent with that of the recent past,” added Laberge.

The seasonally adjusted annual rate of urban starts increased by 18.0 per cent to 226,200 units in April. Urban single starts increased modestly by 0.6 per cent in April to 67,700 units. Meanwhile, multiple urban starts increased by 27.4 per cent to 158,500 units.

April’s seasonally adjusted annual rate of urban starts increased by 56.5 per cent in Québec, by 12.2 per cent in Ontario, by 6.3 per cent in the Prairies and British Columbia, and by 2.6 per cent in Atlantic Canada. In each region, the increase was mainly due to multiple starts, particularly in Québec and Ontario. Meanwhile, single-detached starts decreased in April in all regions, with the exception of Ontario (+7.9 per cent).

Rural starts were estimated at a seasonally adjusted annual rate of 18,700 units in April.



CMHC

Home prices up in March, but gains continue to moderate

The MLS® Home Price Index (HPI)1, the leading measure of Canadian home prices, stayed above year-ago levels in March 2012 according to statistics released today by The Canadian Real Estate Association (CREA). Year-over-year gains have been moderating. The increase in March was the smallest since last June.

Highlights:

·         The Aggregate Composite MLS® Home Price Index in March 2012 was up 5.1% yearover-year – on par with the gain in February and the smallest increase since June 2011.
·         Toronto posted the largest year-over-year increase (7.3%), followed by Vancouver (5.3%), the Fraser Valley (3.3%), Calgary (2.6%), and Montreal (2.2%).
·         Year-over-year gains were largest for one-and two-storey single family homes, which rose 5.4% and 6.8% respectively. Apartment prices climbed 3%, and townhouse prices were up 2.6%.

The MLS® Home Price Index rose 5.1 per cent in March 2012 compared to the same month last year. The increase was on par with February’s gain, which was the smallest since last June.

“Overall price trends show that Canada’s housing market continues to moderate,” said Wayne Moen, CREA President. “Price increases have been shrinking since last fall. While that trend paused in March, it may in part reflect an early spring in many parts of the country, resulting in increased competition among buyers. That said, headline numbers mask some important differences in price trends among local housing markets and housing types. Since all real estate is local, buyers and sellers should talk to their local REALTOR® to best understand how home price trends are shaping up where they live.”

The MLS® HPI remained above its year-ago level in all five of the markets tracked, led by Toronto (7.3%). It also held above year-ago levels in all housing “The index typically experiences these types of month-over-month gains in the spring, which coincides with when the balance of supply to demand is tightest,” said Gregory Klump, CREA’s Chief Economist. “With that in mind, it’s important to look at month-to-month movements in the context of how they compare to the same period in previous years. While the overall monthly price increase was on par with last year’s figure, it masks slowing price momentum in the Lower Mainland area of British Columbia. Slower price gains there were offset in March by a modest acceleration of price gains Calgary, Toronto, and Montreal.”

In focus: Some of the trends underlying the overall MLS® HPI

Momentum in the overall MLS® HPI held steady between February and March 2012, with equal yearover-year gains of 5.1 per cent. However, because the MLS® HPI is composed of four Benchmark housing types and more than 1,600 sub-areas spread among five housing markets, the overall index can mask price trend variations among Benchmark housing categories within a single housing market and between different parts of the country.

Price gains for two-storey single family homes have surpassed this in other housing categories since the beginning of the economic recovery. Despite a recent deceleration in gains, two-storey single family homes posted the strongest year-over-year price gains in March. By contrast, price gains for one-storey single family homes picked up in March, which was driven mainly by increases in Montreal and Toronto.

Price growth remains much stronger for one-and two-storey single family homes compared to multi-family units, with price gains for single family homes (6.4%) running roughly double that for townhouse units (2.6%) or apartment units (3.0%). Even so, there are significant differences between housing markets.

In Montreal, townhouse unit prices are rising faster than prices for other housing types. This likely reflects the desirability of their location, since townhouse units are predominantly centrally located while single family homes are often located further from Montreal’s city centre.

Price gains have remained strongest in Toronto since mid-2011. The rise in Toronto’s Composite MLS® HPI was a full two per cent above the year-over-year increase in Vancouver’s composite index. This represents the largest spread for price growth between these two markets in more than a year. This gap may widen further, since the Vancouver market is showing signs of coming off the boil while a lack of available supply relative to demand keeps Toronto’s housing market in seller’s market territory.

Copyright CREA reprinted with permission

Reduced to $255,000

912 Observatory

Built in 1919, this heritage home sits on a superb lot in a desirable Uphill neighbourhood that offers views of Kootenay Lake and surrounding mountains.. Currently a comfortable residence but it is ready for some work. There are however plenty of rewards for undertaking this project. Great views, a good floor plan and a fantastic fenced yard are already there. Those with a green thumb will love the level yard which features fruit trees, a garden area and great sun exposure. It is also close to schools, parks and all of the City of Nelson's many amenities. Start the renovation today or enjoy this affordable 3 bedroom heritage home as it is. If you are ready to uncover this Victorian homes hidden character and complete its restoration then call today to book your showing. 

No March Madness Repeat in March 2012

The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC declined 26.5 per cent to $3.8 billion in March compared to the same month last year. A total of 6,882 MLS® residential unit sales were recorded over the same period, a decline of 20 per cent. The average MLS® residential price was $545,959 in March, 8.1 per cent lower than in March 2011.

"The spike in consumer demand recorded a year ago was not repeated last month,” said Cameron Muir, BCREA Chief Economist. “A marked increase in high-end home sales a year ago pushed up unit sales and skewed average prices higher, so it’s no surprise to see fewer home sales and lower average prices in March of this year."

Year-to-date, BC residential sales dollar volume declined 17 per cent to $9.2 billion, compared to the same period last year. Residential unit sales dipped 12.7 per cent to 16,724 units, while the average MLS® residential price edged back 5 per cent to $552,785 over the same period.

Copyright BCREA reprinted with permission

BCREA Housing Market Update (April 2012)

BC Real Estate Association (BCREA) Chief Economist Cameron Muir discusses the March 2012 statistics.

National Resale Housing Activity Higher in March

According to statistics released April 16, by The Canadian Real Estate Association (CREA), national resale housing activity edged higher in March 2012. Highlights: Home sales rose 2.5% from February to March. Actual (not seasonally adjusted) activity stood 1.6% above levels in March 2011, the smallest year-over-year increase since last April. The number of newly listed homes eased 0.3% from February to March. While still well balanced, the national housing market tightened due to the rise in activity. The national average home price edged down 0.5% on a year-over-year basis in March. Sales activity over MLS® Systems of Canadian real estate Boards and Associations rose 2.5 per cent from February to March 2012. The increase lifted national activity to its highest monthly level since April 2010. Activity in March was up from the previous month in two-thirds of all local markets, with Toronto, Calgary, and Edmonton contributing most to the national increase. Actual (not seasonally adjusted) activity stood 1.6 per cent above levels in March 2011, the smallest year-over-year increase since last April. It reflects moderate gains in a number of major centres, including Toronto, Calgary, Montreal, Ottawa, and Quebec City. Increases in these housing markets offset larger declines in Vancouver and the Fraser Valley, where activity last year ran at unusually strong levels. A total of 108,373 homes traded hands in the first three months of the year. This is 5.0 per cent above the five-year average for first quarter sales, 3.8 per cent above the 10-year average, and 4.4 per cent above activity in the first quarter of 2011. New listings were little changed following their uptick in February, having edged lower by 0.3 per cent on a month-over-month basis in March. The number of newly listed homes declined from the previous month in just over half of all local Canadian housing markets, and rose in almost all of the remainder. “The spring housing market is off to a good start,” said Wayne Moen, CREA’s President. “The number of sales and newly listed properties are up from levels last year, and the vast majority of housing markets remain balanced. That said, all housing is local, so buyers and sellers should talk to their local REALTOR® to understand current and prospective trends where they live.” The national housing market remains well balanced, although the monthly increase in sales activity caused the balance between supply and demand to tighten slightly. The national sales-to-new listings ratio, a measure of market balance, stood at 55.1 per cent in March. This remains firmly in balanced market territory, but is up from 53.6 per cent in February. Based on a ratio of between 40 and 60 per cent, more than half of local markets were balanced in March. The number of months of inventory stood at 5.7 at the end of March on a national basis, down slightly from 5.8 months in February. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand. The actual (not seasonally adjusted) national average price for homes sold in March 2012 was $369,677, representing a decline of one half of a percentage point from the same month last year. “Average prices are up from year-ago levels in most large urban centres,” said Gregory Klump, CREA’s Chief Economist. “The slight decline in the national average price points to a tug of war between Toronto and Vancouver from the standpoint of their sales mix compared to last year.” “The national average price was skewed higher last spring by record level high-end home sales in some of Vancouver’s priciest neighbourhoods. It was expected that this would not recur this spring, which the latest sales figures confirm. The decline in average price reflects the change in Vancouver’s sales mix, not housing price deflation.” “At the same time, overall home sales activity in Toronto is stronger than it was last spring, and higher-end home sales are up from year-ago levels. Being by far the most active housing market in Canada, Toronto represents the single biggest factor supporting national average price compared to last year.” Copyright CREA reprinted with permission

factors that can affect the market value of your property

There are many factors that can affect the market value of your property, ranging from home improvements to the mood of the seller. All of this is a lot to internalize, but you can make an informed decision while pricing your home if you tackle these issues one at a time.

1. Location
Your home’s proximity to public transportation, train stations, shopping facilities, schools, etc., plays an important factor in determining your property’s market value. Every location has a high end and a low end. The market value of your property is affected by that reality. People that purchase homes in “lower end” areas expect to pay less than they would if they bought the same home in a “higher end” neighbourhood.

2. Features
One of the key factors in your home’s value is the features it provides. For example, some house styles are more popular with buyers than others. The age and size of your home compared to other available properties also plays a part in affecting your home’s value.

3. Condition
Potential buyers will take into account the condition of your home in deciding if they want to buy it and how much they are willing to pay for it. A home in immaculate condition has a much higher potential for a top dollar sale than one that is lacking the most basic routine maintenance.

Experienced buyers look for important conditions like paint, floor coverings, walls, ceilings, floors, doors and windows. Buyers may also pay close attention to the plumbing, electricity work, repairs, bathrooms, kitchen, and so on.

4. Home Improvements
Most people think that home improvements are a sure way to increase the value of a home. Major home improvements are unquestionably important factors that affect the property value. Improvements like room additions, bedrooms, bathrooms, kitchens and other items like floor tiles, swimming pools, etc., can increase the value of your home. However, it only matters what those improvements are worth to the buyer.

5. Market Conditions
When the market is flooded with similar properties for sale and real estate buyers are scarce, you can expect to sell your home for less than you would if there was a shortage of supply and lots of eager potential homebuyers.

6. Seller Motivation
Seller motivation is also a major factor which affects the offer price made by the buyer. For example, if you bought a home in a new area you may be willing to accept a lower price to quickly complete the sale of your current home.

7. Marketing
The marketing plan that your agent executes on your behalf will determine the amount of interest that is shown in your property. Your agent’s level of skill and expertise in the negotiating process will affect the amount of money you’ll be able to get for your home. Many people put more thought into what they’ll have for dinner tonight than who they will trust to market their most valuable asset. Don’t make the same mistake.