Real Estate Information

The housing market proved to be a "tough one" for the sellers of homes in US back in 2011. Given that January 2012 has only 24 hours remaining, how does the US housing market fair so early into the New Year?

President Obama announced just this past Tuesday that he's asked the Justice Department to create a special unit of prosecutors and state attorneys general to investigate abusive lending and packaging of risky mortgages that led to the housing crisis. He's tapped an avowed Wall Street enemy, New York Attorney General Eric Schneiderman, to help run the crime unit, according to a White House official.

On top of the 2.5 million homes that have already fallen to foreclosure since the bubble burst, another 4.5 million mortgage holders have given up paying and are likely to lose their homes... this according to CNN Money

Millions of more homeowners are underwater -- owing more than their home is worth -- and may give up if things don't improve soon. All told, more than 10 million of the nation's 55 million mortgage holders could default by 2018. If home prices fall much more than the 6% or so she's projecting over the next 12 to 18 months, the picture worsens, as more foreclosures drive prices down further, in turn causing more sheriffs' sales.

Research into who defaults shows that many governmental and private efforts at saving borrowers -- and reducing investors' losses -- by modifying mortgages weren't helping because they only extended payments or reduced interest rates. They didn't fix the fundamental problem of unsupportable debt loads.

So where are the best deals to be found in the 50 States of America???

America’s Worst Zip Codes for foreclosures belong to the Western States (California, Nevada, Arizona).  In Fontana, California's 92336 zip code, the average home price has been cut in half since December, 2007, according to the real estate web service Zillow.  A four-bedroom, 2,000-square-foot house, was recently listed for $200,500, down 57% from the $465,000 it last sold for in October, 2007.

So how does the sunny State of Florida in the US Gulf States fair??? In a neighborhood like 32811 (Zip Code) in Orlando, Fla., which counted 275 homes with foreclosure filings in just one month last year, home prices have plunged dramatically. One thre-bedroom in the area is currently listed for just under $40,000, for example. In 2005, that same home sold for $120,900, according to real estate agent Jerome Baker.

Not only that, but the listing price is "a little bit on the high end," said Baker. "We'll probably have to lower it to $29,000 to generate some interest."

As told by the local real estate experts, "it will continue to be a buyers market in most of the United States"...but what about us here in BC.

With domestic mortgage and interest rates expected to remain near record lows for most of 2012, it’s still a good time to buy a house in British Columbia. First quarter results for 2012 show the province’s resale housing market is humming along with average results and prices forecast to remain relatively unchanged over the next 24 months.

“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, chief economist for British Columbia Real Estate Association (BCREA).

B.C. Multiple Listing Service (MLS) residential sales are forecast to increase 2.1% from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7% to 80,500 units in 2013. The 15-year average is 79,000 unit sales. A record 106,310 MLS residential sales were recorded in 2005.

“While European sovereign debt concerns and a sluggish United States economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir.

Home prices in most B.C. markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand.

The average MLS residential price in the province is forecast to edge down 2.2% to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8% to $553,000.

Remember, if you're looking to buy or sell a property, call the local economist & tech savvy agent: Rob Cvitanovic (sit`an`oh`vik) of Re/Max Alliance (250) 704-6970.

We're known for "Bringing Home Guaranteed Results"

Monday, January 30, 2012 8:00am

 

Please Note
 

• Left Column: stats so far this month
• Right Column: stats for the entire month from last year

To sum it up, we are on par with January of 2011. We will  most likely surpass January 2011 sales (these stats were calculated a day before the end of the month).

According to the Victoria Real Estate Board, the real estate market started out sluggish in 2011, but by mid-summer unit sales had stabilized. By December, annual sales for single family homes, townhomes and manufactured homes had increased, while condominium sales decreased by 15% compared to December 2010.

"This may be the result of an increased number of lower priced single-family homes that became available," says Carol Crabb, President of the Victoria Real Estate Board.

Housing prices have softened since December 2010, when the average single family home sold for $647,063, while in 2011 average prices fluctuated and now rest at $592,582. Remember, we are talking about AVERAGE PRICE AND NOT MEDIAN PRICE. 

The President of the VREB also indicated that "While we were trending towards a buyers’ market, based on both the prices and number of properties for sale, the decline in the number of active listings in December 2011 continues to reflect a balanced market". The truth is that we are in a Buyers Market. The truth is, we have an inventory level that exceeds 6 months of saturation.  

December marked fewer real estate sales in Greater Victoria, with a total of 339 homes and other properties selling through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from 482 sales in November. There were 349 sales in December 2010. 

The average price for single-family homes sold in Greater Victoria last month was $592,582, up slightly from $592,034 in November. The median price also increased (December Only) to $535,750 while the six-month average declined to $607,221. The median price dropped by 12% in the last 6 months. This is significant and is a strong indicator of what is coming. The Median Price is the most accurate indicator of market performance.

The overall average price for condominiums last month was $312,066, down from $320,558 in November. The median price for condominiums in December also decreased to $270,000 while the average for the last six months declined marginally to $321,177. The average price of all townhomes sold last month was $387,719 compared to $380,675 in November. The median price increased to $375,000 from 360,000, while the six month average declined to $416,361.

With the economic meltdown of most of Europe (Germany being the only country to retain its current credit rating), and the ailing American markets, the global economy will affect our local maket.

Sellers will be faced the difficult decision of having to settle for less money for their home, or will have to sit back and wait until the market becomes more lucrative. For buyers, there will be less of an urgency to buy (due to increased inventory) and more opportunities to find the right buy!  

Stats from Tuesday, September 1, 2011 through to Tuesday, September 6, 2011 8:30am:

Please Note

• Left Column: stats so far this month
• Right Column: stats for the entire month from last year

Thursday September 1, 2011 7:50am:

Please Note

• Left Column: stats for the entire month from this year
• Right Column: stats for the entire month from last year

Recent statistics definitely prove that we are in, what experts say, a BUYERS MARKET - more than 6 months of inventory on the market. A total of 523 properties sold in July through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®). This figure is significantly down from 618 sales in June, but very close to the 527 sales in July of last year. Overall prices have been declining somewhat across all major property types.

The basic Law of Supply and Demand is taking effect, whereby the glut of listings available on the market is putting downward pressure on home and property prices. The number of properties available for sale continued to increase at the end of last month with inventory levels currently 14 per cent higher than a year ago, and inventory is at its highest level in 15 years.

The available selection for buyers increased last month with nearly 5,100 properties available for sale. The increasing inventory means sellers need to be realistic in pricing their homes in order to attract qualified buyers. 

 The average price for single-family homes sold in Greater Victoria last month was $581,117, down from $629,292 in June. The median price also declined to $535,000 while the six-month average declined to $615,439. The overall average price for condominiums last month was $315,371, down from $320,172 in June. The average for the last six months declined to $327,762. The median price for condominiums in July also declined to $289,000. The average price of all townhomes sold last month declined to $412,178 from $444,768 in June. The median price also declined to $385,000 while the six month average declined to $443,341.

MLS® sales last month included 283 single family homes, 147 condominiums, 47 townhomes and 19 manufactured homes.

Here is how our current stats look as of Tuesday August 2, 2011 at 8:30am:

Please Note

• Left Column: stats for the entire month from this year
• Right Column: stats for the entire month from last year

Now more ever,  a REALTOR’S® expertise can be invaluable in today’s market to help sellers price their homes to best advantage. If you are considering buying or selling in the Victoria market, call the local specialist, Rob Cvitanovic at (250) 704-6970.

According to a new survey, more Canadians are planning to buy what will likely be their most significant investment in their lives this year: their first home.

A poll conducted by Genworth Financial Mortgage Insurance Company showed that 11% of Canadians are planning to buy their first abode this year, compared to 6% in 2010.

While the survey doesn’t say why the number has increased, it’s a good bet it has to do with low interest rates, which is making mortgage payments more affordable for Canadians. 

Let's look at what is happening nationally with the real estate market in some of Canada's major cities. Refer to the chart below:

 Some cities posted huge gains—Vancouver, always a hot market, saw it’s average price for a detached bungalow jump 14% to $1,033,000; Regina’s detached bungalow prices rose 11% to $313,000 in Q2.

HOWEVER, New homebuyers might be better buying in some of the cities that saw prices decrease. (That’s right, DECREASE.)

Victoria saw prices fall 4.8% for a detached bungalow, while Calgary saw its bungalow market drop by 2.8%.

So why the sudden drop??? Many experts agree that we are "past the period of peak house price appreciation".  In Victoria, overall sales so far this year are down 21 per cent compared to a year ago, while inventory increased further last month with 5,050 properties available for sale at the end of June - the highest monthly level in 15 years.

As we know, the basic law of supply and demand dictates pricing and the trend of real estate. The combination of low interest rates, and downward pressure on prices - due to increased inventory, are a winning combination for buyers in Victoria.

To receive daily email list of HOT NEW BUYS as they Hit the Market, simply click here! 

If you haven't heard by now, the Major Lending Institutions of Canada are raising their Long Term Rates and are decreasing the Amortization periods from a maximum of 35 years to 30 years.

NOW is precisely the time to get pre-approved and locked in to a mortgage rate before the new CHMC rules come into effect next month and the chartered banks increase their mortgage rates.

As of March 18^th CMHC will only allow a 30 year amortization versus a 35 year amortization, which means payments will be higher and some people will no longer qualify if they were already tight on their debt service ratios.

There is no time to lose as of yesterday; the TD Bank is lifting its 5-year rates by ¼ percentage point. The bank’s other fixed rates are also rising.

Look for all the chartered banks to raise their long term rates over the next 48 hours, as the bond yields rise so does the long term mortgage rates. The banks do this to get their spreads back in line with “normal” historical levels.

So, if you are thinking about buying – this is the time to call your mortgage broker and arrange a rate hold (today's interest rate is reserved for you and held for 60-90 days should you decide to buy).   This service is FREE and NO OBLIGATION through most Mortgage Brokerages.

Contact your broker or banker today, and find out what option works best for you. Remember to always ask for the best discounted and not just the posted rates advertised in the bank's branch.

If you are not working with a mortgage broker, we have several financial experts on hand who can give you some sound, professional advice.

WAITING CAN COST YOU THOUSANDS OF DOLLARS!  Today is the time to buy that new home or investment property. 

Here is how the month of November 2011 compared to that of November 2010 - one year ago.

As indicated in the chart above, the number of unconditional sales virtually remained the same from that a year ago. However, the number of New Listings in Nov. 2011 jumped by 17% in comparison to November 2010. Additionally, the number Active Listings (Year to Date) shot up by 16% in comparison the same period (Jan. 1, 2010 - Nov.30, 2010).

According to these figures we are definitely in a Buyers Market. We have 9 months of inventory on the market, and prices have come down. But what does this mean to both buyers and sellers???

For sellers, this means that the market is "fetching" prices that are more realistic and true. It does not mean that you, as a seller, are having to take less...you're just receiving what would be considered a realistic value/price in today's real estate environment. Serious sellers still get close to 100%, or over 100% of their ask price, if their properties are priced competitively.

For buyers, it finally means that home somewhat more affordable. The increase in inventory means that there is no longer a mad dash to have to buy a home TODAY!