The threshold for home sales is unlikely to be lifted soon after the B.C. Real Estate Association met with local MLA’s during Government Liason Days, a two-day event in which B.C. Real Estate Association members meet MLA’s to lobby for legislative changes favourable to the industry.

When introduced 25 years ago, the property sales tax that was only payable on the most posh of homes, but is now paid on almost every home sale on the Lower Mainland & Vancouver Island.

Realtors were among those talking to the province's 85 MLA's about issues such as lifting the property sales tax threshold to $525,000, from $200,000.

All properties are subject to the tax, at 1% on the first $200,000 and 2% on the balance. Today, very few properties can escape the 2% that was applied only to the most “lavish houses” back in 1987.

For instance, in the late 1980’s, most home’s in Nanaimo, BC cost less than $100,000; but today the average Nanaimo home sells for about $350,000, for another $4,000 in taxes.

The tax has contributed $11.9 billion to general revenues since it was introduced, according to B.C. Finance Ministry figures. The biggest challenge for the government, if changes are to take place, is finding an alternative to replace the money the tax contributes to the provincial treasury.

​Tell us what you think! We would love to hear your views on this topic or any other topic that's the "Talk of the Town".

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Stats & Market Report for the month of April 2012.

Please Note

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

Please Note

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

By the end of the business day, we should surpass the amount of Unconditional Sales (574) registered in April of 2011. The total amount of New Listings will most likely be less than those in April 2011, which means that our market is gaining strength and buyers are gaining confidence. 

Check back tomorrow...by then I will have a complete breakdown of all the stats for April 2012, and how the market shaped up in each individual segment (ie, single family homes, townhouses, condos etc).

However, several nations defied the average and had exponential growth in the last 5 years. Here are the Top 10 Nations with the Highest Growth in the Past 5 Years:

10.  Switzerland: 5-year price growth: 27.5%   The city of Geneva had an average Price/Sq.Ft of $3000.00 in the 4th Quarter of 2011.

9.  Malaysia: 5-year price growth: 28.5%   So many homes were bought by foreigners in Malaysia that the government is considering raising the minimum price of homes that foreigners can purchase from $162,972 to $325,944.  Prime real estate in the capital city of Kuala Lumpur costs about $500/Sq.Ft.

7. Norway (tie): 5-year price growth: 28.7%   Switzerland and Norway were the only European nations to make the list of the world's hottest housing markets, primarily due to all the economic gloom hovering over the rest of Europe. Norway, is an oil-rich nation which has seen prices in some cities rise 92% in the past 5 years.

7. Canada (tie): 5-year price growth: 28.7%   The hottest housing market in Canada is the City of Vancouver.  It has always been a draw for foreign buyers, and Chinese investors are pushing the market up. The average price for a residential property in Vancouver was $734,207 in December 2011, compared with the national average of $358,261 for that same time period.

6. Taiwan: 5-year price growth: 30.1%   Taiwan, one of the world's most densely populated nations, has seen huge increases in housing due to rapid urbanization and overcrowding in the major metropolitan centre of Taipei.

5. Columbia: 5-year price growth: 39.4%  Columbia, the only South American country to make the list, has seen a major housing boom among its growing middle class. As well, there has been a spike in the amount of foreign investment which can be attributed to the decade-long military offensive against illegal armed groups, which in turn has made it safer to do business in the country.

4. Singapore: 5-year price growth: 50.5%   A major financial hub, Singapore, has a large foreign population which is helping drive up real estate prices. Singapore has the most expensive real estate prices in Southeast Asia, with an average price per square foot of $2600

3. Israel: 5-year price growth: 54.5%  A housing shortage, and high rents, are two key contributing factors in Israel holding down #3 in Knight Frank's ranking. Home prices were so high that in 2011 protests made the headline's with demonstrators demanding that the government intervene to cool the red hot housing market.

2. Hong Kong: 5-year price growth: 93.7%   A major global financial centre, Hong Kong overtook the city of London as the world's most expensive office rental market. In 2011 the average price of a home in prime areas was a whopping $47,500/sq.ft

1. China: 5-year price growth: 110.9%  The worlds 2nd largest economy, topped the list for the hottest real estate prices. Homes prices in Beijing and Shanghai have surged by over 110% in the last 5 years.  

Like the blogpost that you just read? Well stay tuned, we have more interesting and informative posts on the way...and feel free to comment on any one of them. Enjoy!

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Rob Cvitanovic (sit`an`oh`vik)...Bringing Home Guaranteed Results!

Now, we all cringe when we hear the word "Tax", and we all associate April 30 as the final day to file our tax returns. But, the government doesn't stop reaching into our pockets come May 1. They have their hands on our money all year long. 

Here is a breakdown of how much a typical Canadian family, earning $74,000 per year, pays in taxes ALL YEAR LONG:

• Personal Income Tax: $9,137 (single largest tax)
• Canada Pension Plan (CPP) and Employment Insurance (EI) Taxes: $6,328
• Sales Taxes (on every purchase made): $4,748
• Property Taxes: $3,520
• Profit Taxes: $3,133
• Taxes on liquor, tobacco & amusement: $1,735
• Automobile & Fuel Tax: $775
• Miscellaneous Taxes (i.e. import duties, etc) $1,1416

Summed up, the average Canadian family faced a tax bill of $30,792 in 2011 against income of $74,233.  Do the simple calculation: 41.5% OF THE AVERAGE FAMILY'S BUDGET WENT TO PAYING TAXES.  If you think that is crazy, get a load of this:

33.6% of the average family's budget went to paying for the bare necessities: FOOD, CLOTHING, & SHELTER combined.  WE ARE PAYING NOW MORE IN TAXES THAN WHAT WE NEED TO SURVIVE! 

HOLD ON A MINUTE, IT DOESN'T STOP HERE: The federal, and most provincial governments, are running budget deficits...meaning current taxes (revenues) cannot cover government spending. The costs on these overruns will eventually get passed onto the tax payers, so just chalk up another $2,633 per family to cover these costs.  In conclusion, the average family pays $33,355 annually in taxes, or 44.9% of their total combined income...AMAZING!

I would like to see the Fraser Institute do a tax analysis or breakdown for the top 5% income earners in Canada. I am sure, we would be surprised of discrepancy in the figures...the rich keep getting richer!

If our taxes keep skyrocketing, Tax Relief Day will be on Thanksgiving Day (another reason to give thanks) instead of June 6! 

The month of April is shaping up to be typical normal month in real estate for Victoria. Historically, we have always hovered around 500 sales for the month, and it looks as though we will reach that number by months end.

In comparison to April of last year, we have seen a dramatic decrease in the number of active listings... a third less homes on the market (although we still have 1 week remaining before months end). This is great for those looking to sell their homes in Spring 2012. However, we still have an absorption rate of 8 months, which clearly depicts a buyers market.

We should see these numbers remain consistent for the upcoming months, unless, of course,there is a spike in the interest rates. The Bank of Canada has hinted that rates will slightly rise, and this will bring more buyers to the table; which in turn will result in a spike in home sales. Stay tuned, to see what the Fed's do with the lending rates in Canada.

Want your home SOLD, FAST & FOR TOP DOLLAR? WE GUARANTEE your home SOLD IN 60 DAYS or LESS, or we will sell it for FREE! Take a look at our recent sales...we guarantee results! Call us now (250) 704-6970

Rob Cvitanovic (sit`an`oh`vik)...Bringing Home Guaranteed Results!

The target for the overnight Rate is the main tool used by the Bank of Canada to conduct monetary policy—for this reason, it is also known as the policy interest rate. It tells major lending institutions the average interest rate that the Bank wants to see in the market where they lend each other money "overnight." When the Bank changes the target for the overnight rate, this change affects other interest rates in the economy

The rate was not expected to rise before mid-2013 as long as the inflation rate stays on the Bank's 2 per cent target, but the Bank is now projecting 2.4 per cent growth in the economy for 2012 and 2013. Meanwhile, household spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk.

Further clarification as to when these “modest” rate hikes may be expected will no doubt be the subject of the various speeches and remarks given by the Governor and his deputies between now and the next announcement on June 5^th, 2012.

As of April 17^th 2012, the advertised five-year lending rate stood at 5.44 per cent. This is up 0.2 percentage points from 5.24 per cent on March 8^th, when the Bank made its previous policy interest rate announcement.

Join our Unique Buyer Profile Service and Receive Daily Updates of HOT, NEW LISTINGS as they hit the market! It's Fast. Easy. Automatic. FREE!

www.VictoriaHomeListings.com is a FREE service to help area home buyers find their dream home. Your first email will list all homes currently for sale that meet your search criteria. Then each morning you will be emailed a list of all of the new homes for sale and price changes since your previous search. No more having to rely on manual searches.

Please Note
 

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

Join our Unique Buyer Profile Service and Receive Daily Updates of HOT, NEW LISTINGS as they hit the market! It's Fast. Easy. Automatic. FREE!

www.VictoriaHomeListings.com is a FREE service to help area home buyers find their dream home. Your first email will list all homes currently for sale that meet your search criteria. Then each morning you will be emailed a list of all of the new homes for sale and price changes since your previous search. No more having to rely on manual searches.

In addition Minister Falcon stated that housing prices in British Columbia will drift “downward,” representing a welcome development in Canada’s westernmost province. Prices for residential real estate in B.C., Canada’s third-most-populous province, may fall about 5 percent in the next 24 months.

According to Falcon, “There will be some downward drift in the B.C. housing market and that won’t be an unhealthy thing,” Falcon said, adding that price speculation is not a significant feature in the province. Price declines “will not be dramatic, certainly nothing like we’ve seen in the U.S.”

One million dollars would only buy you 56 square feet of living area in Monaco. 

Vancouver, Toronto and Montreal didn't even make the Top 20. New York City was the only city in North America to make the TOP 20 rankings...Amazing!

Here's how the first 9 days of April shape up:

Here's how the first 9 days of April shape up:

Here's how the first 9 days of April shape up:

The month of March showed some promise of recovery as single-family home sales rose 17% over last month. In addition, the six-month average price of single-family residences increased by 1% to $599,550 as the average price of single family homes in March 2012 increased to $640,553 from $579,985. This figure is greatly skewed by the sale of two homes over $4 million.  Compared to March 2011, active single-family listings were up 5% to 1,858, while the number of sales dropped by 7%.

Sales of condos and townhomes were flat as compared to those of February 2012, and were down significantly from 12 months ago (17% and 15% respectively). Condo prices are unchanged, while townhomes are 1% lower than March 2011.

With a total of 4,274 active listings, properties on the market have edged up from last month (3,977 active listings at February 29, 2011). Increased supply levels reflect typical spring activity as seen year over year.

Have a look at the figures below, which are broken down and give you a better assessment of the activity seen in March 20112.

Please Note

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

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The forecasted drop of four per cent - the biggest decline in the country and far steeper than the 1.1-per-cent forecast drop nationally - will bring the average price of a residential B.C. property down to $539,100 from $561,300 in 2011. However, the average price is expected to rise 0.5 per cent to $541,800 in 2013.

The primary reason for B.C.'s forecast price decline is because multimillion-dollar sales activity in West Vancouver, Vancouver's west side and Richmond in early 2011 caused both the provincial and national average prices to temporarily spike, a phenomenon that's not expected to repeat itself this year.

For B.C., home re-sales are expected to drop by 1.9 per cent, before rising slightly in 2013.

According to the forecast report, so long as the European debt crisis is contained and a global economic recession avoided, low interest rates will support Canadian home sales and prices.

Join our Unique Buyer Profile Service and Receive Daily Updates of HOT, NEW LISTINGS as they hit the market! It's Fast. Easy. Automatic. FREE!  

www.VictoriaHomeListings.com is a FREE service to help area home buyers find their dream home. Your first email will list all homes currently for sale that meet your search criteria. Then each morning you will be emailed a list of all of the new homes for sale and price changes since your previous search. No more having to rely on manual searches.

Please Note

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

Join our Unique Buyer Profile Service and Receive Daily Updates of HOT, NEW LISTINGS as they hit the market! It's Fast. Easy. Automatic. FREE!  

www.VictoriaHomeListings.com is a FREE service to help area home buyers find their dream home. Your first email will list all homes currently for sale that meet your search criteria. Then each morning you will be emailed a list of all of the new homes for sale and price changes since your previous search. No more having to rely on manual searches.

Please Note

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

Join our Unique Buyer Profile Service and Receive Daily Updates of HOT, NEW LISTINGS as they hit the market! It's Fast. Easy. Automatic. FREE!  

www.VictoriaHomeListings.com is a FREE service to help area home buyers find their dream home. Your first email will list all homes currently for sale that meet your search criteria. Then each morning you will be emailed a list of all of the new homes for sale and price changes since your previous search. No more having to rely on manual searches.

The statistics are genuine, and this particular writer's comments are valid... the mentality of home owners has to change. We have to change our mindset and get back to the basics in life. WORK HARD, INVEST  & SAVE!  I'm not one to preach, so check it out for yourself 

http://www2.macleans.ca/2012/02/28/youre-about-to-get-burned/#.T01ba1WrY50.email

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"