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"

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).

"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!  

Located across from Mayfair Mall & near the new UpTown Centre, this affordable and well maintained home is ideal for investors or buyers looking for revenue from the existing suite(s). The owners suite consists of a 2 bedroom, 1 bathroom unit just recently constructed (2009) with wood and tile flooring, new appliances, and granite countertops.

The secondary suite is a 3 bedroom, 2 bathroom unit which currently rents for $1650/month & it has plenty of room to be expanded.

Conveniently located...only a few minutes to downtown, with easy access to highways & bus routes, this affordable revenue property features a low maintenance yard with a huge double garage, 2 driveways, and parking for 6-8 cars. Sunny, fenced & landscaped corner lot with loads of storage. Backs onto park, great schools, & near Public Library. Ideal for a home based business; priced to sell and the seller is motivated.

Make money or live free! Call Rob for more details! 

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Call Rob today for your private viewing (250) 704-6970

NOTE: The propane tank leased $80/yr. 

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

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.

Priced for immediate sale, this 9th floor, 1 bedroom condo in "The Falls" features breath taking views of the ocean, Legislature & Empress Hotel. In the heart of Victoria, this residence is ideal for anyone wanting to work downtown, while having some of the finest boutiques/shops, restaurants, and entertainment only a short walk away. The exterior is of timeless design and features beautiful garden courtyards & a 100’ waterfall located adjacent to a swimming pool, hot tub & exercise area. Basked in natural light, this modern, luxurious unit has accents such as: Italian kitchens, granite countertops, stainless steel appliances, hardwood floors, A/C, secured u/g parking, 9' ceilings & more. Zoning allows for vacation rentals. GREAT VALUE!!!

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! 

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. 

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!

So what do the "big wigs" in major federal positions have to say? Here's an excerpt of what a chief economist-to our friends down south, a Bank of Canada governor, and Housing Economist for CIBC have to say:

Dean Baker, Economist of the Washington-based Centre for Economic and Policy Research (one of the 1st economists to accurately predict America's housing meltdown) says he sees no reason why average home prices in Canada are about 50% higher than in the United States. 

He noted that average incomes in Canada are less than those in the U.S. and land values are not appreciably higher to justify Canada's price premium. He predicts a "house price collapse by 25-30% if interest rates rise by about two percentage points."

He goes on to say, "There's a lot of things that look ominous. Debt to income ratios in Canada are close to what they were in the U.S. at the peak of the bubble, so there could be some fallout".

Bank of Canada governor, Mark Carney, is questioning the quality of debt that Canadians and Americans carry. "Americans carry a lot of bad debt, where many homeowners were unable to withstand a price drop or higher mortgage payments". Carney has also repeatedly cautioned Canadians against taking on too much debt, given that mortgage rates will rise in the next few years.

Based on what Carney is saying, lower-income Canadians, those most vulnerable to rises in rates, will be affected the most. Current low mortgage rates are fuelling the market beyond fundamentals. 

Benjamin Tal, an economist who has written extensively on housing for CIBC, says there is a world of difference between the U.S. market and Canada. He points out that unlike the U.S, very few Canadians have less than 20% equity in their homes. By his calculation, homes in Canada are only about 10% overpriced.

So, here you have it! 3 experts with 3 different opinions. You can take these to heart, or take them with a grain of salt. Whichever you analyze it, keep on thing in mind...its all about timing.

Take a look at the illustration below:

The "Lucky Zone" is where you ultimately want to buy, just before the market begins its upswing. The opportunity for maximum profit.  

When buying in the "Safe Zone" your property will consistently appreciate & generate a decent return. 

The "Unlucky Zone"is where you try not to buy.  You'll have to sit and ride out the waves until the next pricing spike.

Here's some advice that I consistently give all my buyers: "If it's the perfect home, at a fair price, and within your budget...buy it!!! 

Stay tuned for more useful information and be sure to leave me your comments.

Remember, for all your buying and selling needs, call the local expert...Rob Cvitanovic (sit`an`oh`vik) at Keller Williams Realty West (250) 704-6970. You can always email me at:rob@robsoldit.com

This well appointed 1 bdrm unit with large west-facing deck is great for sunset bbq's. This unit is priced to sell & ready for occupancy in June 2011. You won't have to lower your expectations of value & quality based on your budget. Each unit offered in this cutting-edge development is equipped with environmental-friendly technologies such as geothermal radiant in-floor heating, endless hot water, customized concrete soundproofing, fibre optic wireless communications, hardwood flooring, granite countertops & the building will exceed "Gold Standards" in Green Build technology. All suites include: secure underground parking, heated storage, a top-of-the-line stainless steel appliance package, & full window treatments. Live Green - Sleep Easy

A total of 395 properties sold in September through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 425 sales in August. There were 776 sales in September of last year.

September’s sales were well below traditional levels for the month, and the trend for the past six months is a strong indication of the downward pressures placed on the real estate market by the inception of the Harmonized Sales Tax (H.S.T) and the new mortgage qualification requirements implemented by the Canada Mortgage and Housing Corporation (CMHC). 

The average price for single-family homes sold in Greater Victoria last month was $599,825 up from $586,676 in August. The median price, however, declined to $531,000. The overall average price for condominiums was $295,463 last month, down from $320,874 in August. The median price for condominiums in September rose to $290,000. The average price of all townhomes sold last month rose to $439,040 from $432,284 in August. The median price rose to $425,633. 

The number of properties available for sale at the end of last month declined slightly to 4,323 but this was still 26 per cent higher compared to the 3,419 available properties in September of last year.

MLS® sales last month included 228 single family homes, 100 condominiums, 36 townhomes and 13 manufactured homes.

Here is a Year to Date break down of the overall sale in the Greater Victoria real estate market:

Jan    Feb    Mar    Apr    May    Jun    July   Aug    Sep

386    621   789    707    695    625    527   425    395

Whether you're buying or selling, you owe it to yourself to have the right information to make the right decisions...call the local market economists The Victoria Home Team for all your real estate needs! (250) 595-3200

Please Note

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

Just one look at the most recent stats for the month of September and you'll notice that it truly is a Buyers Market here in Greater Victoria.

Increased inventory, fewer sales, combined with historically low interest rates, and low levels of unemployment... what does all this mean to buyers thinking of purchasing in Victoria?

ACT NOW BEFORE THE PENT UP DEMAND FOR HOUSING EXPLODES!

We have seen this trend occur many times in the last 10 years. Buyers ready to buy, but holding off until the time is right.  7 times out of 10 these buyers have missed the mark because they waited too long to commit to buying a property.

As history has shown, real estate in Victoria has consistently rebounded from small blips in the market. Prices in some of the worst hit housing markets in the US have risen 25-50% in the last year.  1st time home buyers in America are jumping into the market knowing that prices have no where to go but up.

There are currently over 4200 listings on the market. How many of these sellers truly need to sell RIGHT NOW!  At least 15% of these sellers need their home sold today. Another 15% are serious about looking at reasonable offers, and would most likely bend if the terms were right. 10% of the selling market overpriced by 4-9%, while the remaining 60% will most likely never sell.

So why not concentrate on seeing the top 15% of the listings in your price range, and focus on negotiating a deal suitable to your budget.

Call us today for your FREE, NO OBLIGATION Buyers Consultation. We will get you the most home for the least amount of money...Guaranteed!

Call Rob or Dave at the Victoria Home Team (250) 595-3200

A total of 425 properties sold in August via the Victoria Real Estate Board’s MLS, slightly down from the 527 sales in July. In comparison, there were 764 sales for the month of August in 2009. Softening of the sales this year was not unexpected, given that 2009 was an exceptional year. 

The outlook for the remainder of the year is that we anticipate the market to remain relatively stable; as any increase in interest rates in the near future will likely be modest.

The number of properties available for sale at the end of last month declined to 4,356 but this was still 24 per cent higher compared to the 3,509 available properties in August of last year.

The average price for single-family homes sold in Greater Victoria last month was $586,676 down from $615,004 in July. The median price declined to $548,500. The six-month average declined slightly to $629,272. There were eight single family home sales of over $1 million in August compared to 16 such sales the previous month. The overall average price for condominiums was $320,874 last month, down from $322,905 in July. The average for the last six months was $330,234. The median price for condominiums in August declined to $275,000. The average price of all townhomes sold last month, however, rose to $432,284 from $420,578 in July. The median price rose to $405,000. The six month average was $439,636.

MLS® sales last month included 223 single family homes, 113 condominiums, 43 townhomes and 15 manufactured homes.