Housing Market Conditions Improve on the South Coast

The British Columbia Real Estate Association (BCREA) reports that a total of 6,904 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during April, up 1.9 per cent from March on a seasonally adjusted basis, but down 2.2 per cent compared to April 2012. Total sales dollar volume declined 3 per cent to $3.65 billion. The average MLS® residential price in the province was $528,507, down 0.8 per cent from a year ago.

"BC home sales trended higher again in April, with seasonally adjusted unit sales now 8 per cent higher since the beginning of the year," said Cameron Muir, BCREA Chief Economist. "Market conditions were at or near balanced conditions in Victoria, Vancouver, the Fraser Valley and the North last month, leading to a firming up of home prices." The MLS® Home Price Index edged up 0.7 per cent over the past month in the Lower Mainland, and 1.5 per cent over the past three months.

Year-to-date, BC residential sales dollar volume was down 16.6 per cent to $10.8 billion, compared to the same period last year. Residential unit sales dipped 13.9 per cent to 20,476 units, while the average MLS® residential price was down 3.1 per cent at $529,785.

Copyright BCREA - reprinted with permission 

6035 Woodward Rd Winlaw, BC

The Choice is yours: ski, swim, bike or hike. Close to a variety of outdoor recreation opportunities, this home is within easy walking distance of Winlaw central and is located on a secondary road. Meticulously maintained and energy efficient, it sits on a very private and flat 2 acre property complete with fenced garden area and shed. The main floor has been recently renovated and features beautiful hardwood floors. The excellent water is provided via a reliable gravity fed shared system. Don’t let the compact size fool you; this home utilizes all of its space through the use of built-ins and its well designed floor plan. Well insulated, air tight and with a large, efficient wood stove, stay warm and comfy in the winter and cool in the summer. Call your REALTOR© today to arrange a showing.  

April Housing Market Update

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Canadian Employment

Canadian employment was little changed in April, increasing by 12,500 following a decline in March. The level of Canadian employment has grown just under 1 per cent over the past 12 months while the unemployment rate remains at 7.2 per cent.

The BC economy added 9,500 jobs in April, with an impressive 17,500 new full-time positions partially offset by a decline in part-time work. The jump in full-time jobs helped to recover some of the 22,400 full-time jobs lost March. The provincial unemployment rate declined 0.6 points to 6.4 per cent. Through April, employment has been flat compared to last year, though we anticipate job growth to accelerate in the second half of 2013.

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Transition Year Expected for BC Housing Market

BCREA 2013 Second Quarter Housing Forecast

Vancouver, BC – May 9, 2013. The British Columbia Real Estate Association (BCREA) released its 2013 Second Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to edge up 1.9 per cent to 68,900 units this year, before increasing a further 6.5 per cent to 73,400 units in 2014. The five-year average is 74,600 unit sales, while the ten-year average is 86,800 unit sales. A record 106,300 MLS® residential sales were recorded in 2005.

"Stricter mortgage credit regulation combined with slower economic growth has kept BC home sales at a cyclical low over the past three quarters," said Cameron Muir, BCREA Chief Economist. "However, a faster growing economy is expected during the second half of the year and through 2014 which will support a growth trend in provincial housing demand."

"The BC average home price forecast is revised upward for 2013, from a decline of 1 per cent to remaining unchanged, as a result of stronger than expected market conditions in Vancouver," added Muir. The average MLS® residential price in BC is forecast at $515,800 this year, before rising 1.7 per cent to $524,500 in 2014.

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Canadian Housing Starts

Canadian housing starts dipped 3.5 per cent to 174,858 new units at a seasonally adjusted annual rate (SAAR) in April.  New home construction continues to trend lower, averaging approximately 183,000 units over the past six months.  On a year-over-year basis, housing starts were down 29 per cent. 

New home construction in BC urban centres fell 5 per cent month-over-month in April to a seasonally adjusted annual rate of 23,000 units. On a year-over-year basis, total starts were 4 per cent higher than April 2012. Single-detached starts were 10 per cent lower over last year, while multiples increased 11 per cent.

Looking at census metropolitan areas (CMA) in BC, total starts in the Vancouver CMA declined 8 per cent compared to last year  with multiple starts falling 13 per cent while single-detached starts were up 20 per cent.  New home construction in the Abbotsford CMA fell 80 per cent year-over-year, though that number was significantly skewed by a relative lack of building activity in multiples, which can be volatile. Housing starts in the Victoria CMA were down 1 per cent compared to April 2012 as an 18 per cent rise in multiples was offset by a 27 per cent decline in single-detached starts. Conversely, housing starts in the Kelowna CMA increased 11 per cent year-over-year in April, driven by a 20 per cent rise in multiple starts. 

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Canadian Building Permits

Canadian building permits rose 8.6 per cent in March to $6.5 billion, the third consecutive monthly advance. Much of the increase was a result of large increases in the Ontario and Alberta non-residential sector which pushed non-residential permits 19 per cent higher while residential permits posted a 1.7 per cent increase.

After a significant decline in February, BC building permits increases a modest 1.7 per cent in March, with balanced contributions to growth from the residential and non-residential sectors. However, on a year-over-year basis, total building permits were close to 7 per cent lower.

Looking at permit activity in BC's four major census metropolitan areas (CMA),  permits rose 43 per cent in the Kelowna CMA from February, but were 14 per cent lower year-over-year. In the Abbotsford-Mission CMA, permits jumped 70 per cent on a monthly basis but were 21 per cent lower than March 2012. In the Vancouver CMA, permits fell 12 per cent on both a monthly basis and year-over-year. Finally, in the Victoria CMA, permits more than doubled compared to February and were 9 per cent higher than March 2012. 

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US Unemployment

The US economy added a better than expected 165,000 jobs in April while the unemployment rate ticked lower from 7.6 to 7.5 per cent.  Moreover, jobs numbers were revised significantly higher for both February and March by a combined 144,000 jobs.

So far in 2013, US job growth have averaged 196,000 per month and the unemployment rate has fallen 0.3 percentage points.  We anticipate some degree of slowing over the next two quarters as the result of legislated declines in government spending, but the US economy is clearly on a persistent recovery path that should gain strength over the coming year. 

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Finance Minister Announces Stephen Poloz as New Governor of the Bank of Canada

In somewhat of a surprise move, Finance Minister Jim Flaherty passed over presumptive favourite Senior Deputy Governor Tiff Macklem in naming Stephen Poloz as the new governor of the Bank of Canada. 

Mr. Poloz spent 14 years with the Bank of Canada in numerous roles including Chief of the Bank's Research Department before moving on to Export Development Canada (EDC) where he served as the Chief Economist and, since 2011,  as the EDC's CEO and President. 

While Mr. Poloz has been outside of monetary policy-making for some time and his views are relatively unknown, we do not expect the Bank's approach to change in a material way in the near future. The Bank will still operate under a flexible inflation targeting regime with a focus on medium-run inflation of 2 per cent and our view remains that interest rates will remain on hold over the next year while the Bank's forward guidance on rates will remain neutral.

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3 Home Buying Tips

If you’re thinking of buying your first home or upgrading to a new one, the inventory of homes on the market every Spring is definitely plentiful – providing for a great selection of homes to serve your unique needs.

Still, there are also generally more people out looking at homes in the Spring as well. And while some homebuyers feel anxious about securing their dream home as soon as possible, it’s important to take the time to be patient and make sure the home is a good fit for you and your family.

After all, home-buying is likely the largest investment you’ll ever make, and doing your due diligence when determining which house to buy ensures that fewer surprises arise after your moving day.

Following are three top considerations to keep in mind when looking for your new home:

1. Get preapproved for a mortgage. Not only will this step help you compete against other buyers who have not been preapproved, but it will also ensure you only look at home’s within your price range – saving you the trouble of falling in love with a home you can’t afford. Your mortgage broker or lender will be able to get you preapproved before you start browsing homes.

2. Think about what you need. Jotting down specifics regarding what you “need” in a home – as opposed to what you “want” – will help determine the types of homes you should be viewing. It’s rarely possible, however, to find a perfect home for your needs, tastes and budget. While it’s important to weigh your priorities before you start your home search, it’s equally important to be flexible and willing to change your mind once you see what your true options are – viewing properties can shift your priorities. And remember that if you can only find places that require too many compromises, it’s okay to keep looking – new homes come on the market daily!

3. Look past the staging. Many sellers enlist staging professionals to help sell their homes faster and at a higher price. While this often makes listings more visually appealing to buyers, some major flaws may be covered up through staging. And while minor cosmetic issues can often be overcome with a simple fix such as a coat of paint, larger, more costly issues can arise with a home if you don’t notice poor conditions before you buy. Some things to look for include: leaks around plumbing fixtures and ceilings (thanks to upper floor bathrooms); stains on walls or ceilings; evidence of mould; poor workmanship on flooring, moulding, windows and doors; or aging and worn seals around windows and doors.