posted by Dave on Dec 3

From Friday’s Globe and Mail

You could easily pardon anyone looking for a new condominium today for having a case of the jitters. Every day we are bombarded by U.S. reports of a housing market meltdown. CNN headlines a survey that shows one of every 452 homes in the United States is in foreclosure.

The media is chock-a-block with stories about a credit crunch, banks reluctant to lend to other banks, let alone new-home buyers.

Now take a deep breath, sit down and listen up. To paraphrase Dorothy’s line in The Wizard of Oz: This isn’t Kansas any more.

The simple fact is that any comparison between the Greater Toronto Area condo market and what is happening in the United States is about as valuable as discussing whether Batman or Spiderman would come out on top in a fight. It has no relationship to reality.

Yes, sales are down, but then again, last year was a blip, an anomaly, a Yukon gold rush. The market, experts say, is returning to the levels of more normal times.

That is probably good news. It may mean the rise in prices will slow or, even better, stall. It also means buyers will have an enormous range of choice. There are more than 330 different projects on sale in the GTA right now — the most ever.

And, as a shiny red cherry on top, mortgage money is still available for most buyers and at reassuringly low rates.

Granted, lenders are unlikely to offer the discounts on rates across the board that they did last year in the frenzy to do business. First-time buyers with anything less than 5 per cent cash to put down may face a tough time. New Canadians with no credit history in this country can expect to face challenges, and the 40-year amortization period is as dead as Sarah Palin’s hopes of being a heart beat away from power.

Jim Murphy, president of the Canadian Association of Accredited Mortgage Professionals, which represents brokers, lenders and mortgage insurers, says it is, in fact, business as usual.

“There is a plentiful supply at reasonable rates for any borrower who can qualify,” he points out. “Condos have taken over from single-family housing as the major force in the residential market and the industry has recognized that.

“There is no issue with supply, and those lenders that focused on subprime mortgages have left the market.”

Five-year, fixed-rate mortgages are available starting at 5.55 per cent and variable-rate mortgages are in plentiful supply at about one percentage point above prime.

“You can occasionally negotiate a discount on fixed-rate mortgages if you have great credit, but discounts on variable-rate mortgages have disappeared,” Mr. Murphy says.

At the Royal Bank of Canada, a spokesperson says it is business as usual in the mortgage department.

“RBC has not seen a decline in mortgage applications in the last four months,” the spokesperson says in an e-mail. “We continue to guarantee rates on new purchases for 90 days, and mortgage rates over the last four months have remained relatively steady.”

At HSBC Bank Canada, Loree Gray, vice-president branch banking for Toronto, says lending to condo buyers continues as strong as ever — to those who meet credit requirements.

“We look for strong employment, enough income to service the debt (between 32 and 45 per cent of income), an acceptable down payment and a strong credit history,” she explains. Buyers who meet all of those tests and can plunk down 20 per cent of the purchase price as their down payment will be welcomed with open arms by lenders, the bankers say.

Less than that 20 per cent down, however, means you likely will have to seek an insured mortgage from Canada Mortgage and Housing Corp. In that case, the federal government, acting through third-party insurers, guarantees the mortgage will be repaid if the borrower defaults.

These insurers charge between 2 and 3 per cent on top of the mortgage interest rate, and, this fall, CMHC set out new rules for mortgage insurance.

As Mr. Murphy explains, there are three basic guidelines borrowers should be aware of.

First, condo buyers must be able to make a down payment of at least 5 per cent of the purchase price, but at the same time, they can borrow that if they can find a lender willing to take the risk.

Second, CMHC says no more 40-year amortization periods. Now, 35 years is as long as it is willing to go.

Finally, borrowers must have a credit score higher than 600. (This score is a statistical analysis of a person’s credit file.)

HSBC’s Ms. Gray offers a tip to new Canadians. If, in their country of origin, they were customers of a bank with offices in Canada, such as her own, that credit score may not prove to be a hurdle.

“If we know you and if you have been a good customer in the past, even if you have no credit history in Canada, our comfort level rises,” she says.

In fact, establishing a track record with a bank in anticipation of some day needing a mortgage is a great idea for anyone, she adds.

“Not only does it give us the level of comfort we need to make that loan, … it also gives insight into which product might best suit your needs.”

posted by Dave on Dec 3

Real estate markets in 2009 will be mired in the economic slowdown and their performance will depend on how government stimulus affects consumer confidence, the realty firm Re/Max said Wednesday.

In its 2009 outlook, Re/Max said the threat of global recession will weigh on markets, and estimated that half of the 22 major Canadian cities it surveys will see market declines, with B.C. markets seeing some of the steepest drops.

Elton Ash, Re/Max regional executive vice-president for Western Canada, said the beginning of 2009 will look a lot like the end of 2008.

“The confidence issue, certainly from our perspective, [will be key] when we look at 2009,” Ash said in an interview. “The first quarter of 2009 will certainly be a continuation of the trend we’re seeing now, with reduced transactions and average prices coming down in Vancouver and throughout British Columbia.”

Ash said consumers should have a better idea after the first quarter of 2009 what kinds of stimuli governments plan to inject into the economy, which should bolster confidence through the rest of 2009.

“The good news, from the first-time homebuyer’s perspective, is that homes will become slightly more affordable, provided they have the confidence to buy,” Ash said.

Re/Max said Metro Vancouver will have experienced a 33-per-cent drop in sales by the end of 2008, and 2009 sales should end at the same level. Vancouver’s average price at the end of 2009 should be seven per cent below 2008’s average price.

Victoria and Kelowna, after experiencing 23-per-cent and 37-per-cent declines in sales, should see sales decline a further 11 per cent and 10 per cent, respectively. The 2009 average prices in those cities, in Re/Max’s assessment, will dip 10 per cent from 2008.

Nationally, Re/Max expects sales to decline 15 per cent by the end of 2008 to 440,000 units and stay at that level for 2009. It believes the national average price will decrease three per cent to $300,000 in 2008, and a further two per cent to $293,000 in 2009.

Re/Max’s assessment is the latest of the fall forecasts tracking B.C. and Canadian real estate markets. Not all came to the same conclusions.

Canada Mortgage and Housing Corp.’s 2009 forecast is for B.C.’s average price to decline nine per cent in 2009 and provincial sales to fall just under one per cent.

Central 1 Credit Union’s forecast calls for 13-per-cent declines in B.C.’s average price for 2009 and a further five per cent in 2010, when it expects the market to recover. It expects sales to drop 17 per cent in 2009.

Other analysts have estimated that prices in B.C.’s markets overshot their equilibrium on the up-cycle, such as Carl Gomez, vice-president of research at Bentall Investment Management, who believes prices might have spiked as much as 30 per cent over equilibrium.

However, Ash said B.C.’s markets have geography and demographics going for them in the long run. Over time, the province will continue to be the place where baby boomers move in retirement.

“There’s no reason for British Columbians to be overly concerned about the value of the real estate they’re holding today,” Ash said. “It will come back in a big way.”

depenner@vancouversun.com

 

posted by Dave on Nov 4

FOR IMMEDIATE RELEASE

Nov 4, 2008

VIREB reports October sales statistics

NANAIMO, BC – Multiple Listing Service® (MLS®) sales summary data released by the Vancouver

Island Real Estate Board (VIREB) for October 2008, shows lowering unit sales volumes and some

declines in average sale prices.

VIREB President Subhadra Ghose says the local real estate market continues to correct.

“Despite recent global economic issues, there is encouraging news in the latest local market numbers. Our

local market remains stable overall,” Ghose says.

There were 235 sales of single family properties in the VIREB area through the Multiple Listing Service®

(MLS®) in October 2008, down from the 446 unit sales in October 2007.

The 12-month average sale price across the VIREB region for October 2008 was $345,094, down one

per cent from the $348,327 posted in October 2007. Prices increased slightly in 4 of VIREB’s 6 individual

zones.

“As expected, the average sale prices are starting to moderate,” she says. “Properties that are priced right

are selling. We’re continuing to advise sellers to be realistic and work with their REALTORS®.”

Single family properties listed for sale in October 2008 were up approximately 50% from the

end of Oct 2007.

For the 12-month period from the end of October 2007 to October 2008, average sale prices in

VIREB’s six zones saw: Campbell River decrease 10 per cent (to $285,085), the Comox Valley was up

8 per cent (at $367,779), Nanaimo is up 2 per cent (to $373,031), Parksville/Qualicum was up 3 per cent

(to $402,876), Port Alberni dropped 17 per cent (to $207,845) and the Cowichan Valley rose 3 per cent

(to $367,453).

Ghose points to a pre Halloween housing forecast from the Chief Economist of the BC Real Estate

Association, who is expecting downward pressure on home prices to ease by the second quarter of 2009

along with a rebound in sales volumes.

VIREB represents approximately 1,173 licensed REALTOR® members in more than 85 member offices

on Vancouver Island (north of Victoria).

VIREB cautions that average price information can be useful in establishing trends over time, but does

not indicate the actual prices in centers comprised of widely divergent neighborhoods or account for price

differential between geographic areas.

- 30 -

REALTOR® is a trademark identifying real estate professionals who are members of the Canadian Real

Estate Association (CREA). REALTORS® subscribe to a Code of Ethics and Standards of Business

Practices as set out by CREA. MLS® is a cooperative marketing system used by Canada’s real estate

boards.

posted by Dave on Apr 30

The “Meadows” is a 33 lot residential subdivision located off Lazo Rd. in Comox. These lots are fully serviced & range is size from 5575-9612 sq. ft. There will be building guidelines in place plus the zoning will allow for a secondary suite within the home. This quality development will appeal to those looking to live in a neighborhood with a semi-rural feel but still want to be close to all amenities. The beach is only a short distance away make this a very desirable location.

posted by Dave on Apr 18

Well this weekend the lot selection will be done on or registerd buyers, if you are interested please call Dave today so you can get in on your lot selection. This is a wonderful subdivision on the East side of Comox only a very short stroll to Radfords Beach, the lots are fully serviced with some mature vegitation on a number of the lots. There are two cul-de-sacs which are great lots for familys.

posted by Dave on Mar 13

It was a fairly regular month for the start of the year with the activity a bit off in the homes over $400,000. the activity below the $400,000 range was up over the same time period of last year but to give you some idea of what the activity did over $400,000 was very obvious when you see Crown Isle posted no sales on MLS for the month of February.

 

We are seeing a number of buyers coming into the area looking for affordable homes from the northern Alberta region; Fort Mc Murray is one area that seems to be looking at the Comox Valley as a place that is appealing for families, with the working spouse commuting back and forth.  I think this is a trend we will see develop more and more in the coming years.

 

Well the hot spots for the month were Comox posting 20 home sales for an average of $379,408, followed by Courtenay East with 17 sales for and average of $368,382 and in third position we had Cumberland with 15 sales for an average price of $272,113. As you can see all the averages in the hot areas were below the $400,000 price range, and if I look further no area in the Comox Valley had a average over $400,000 for February.

 

Activity was up 10% in home sales for the month with virtually the same number new listing as 2007. Condo apartment sales were up for the month by 10% while the number of new Condo listings was up by 10%. In general when you look at the stats we had a very similar month to 2007.

posted by Dave on Mar 13

We are getting close to putting the Meadows lots on the market, the Developer is working with his Lawyer to file a disclosure on the property which will allow us to start selling these wonderful lots. The services are all on schedule and the lots are looking very nice, if your interested please ensure you register with us soon, we will be notifing all those that leave their names and phone numbers with us when they come available.

Upon the disclosure being filed we will give a copy of the disclosure, we will require a selection of three choises you would have in lot selection, we will do our best to satisfy your request. We will get back to you as soon as possible to verify your selection, after which we will need your offer to purchase within 7 days. So don’t delay, if you have interest register or give me a call today.

posted by Dave on Feb 15

January 2008 Stats 

Here is a detailed breakdown of the homes sales in the Comox Valley for January 2008. This map identifies the number of sales in each area of the Comox Valley and gives you athe average prices in the area’s as well. This is published by the Vancouver Island Real Estate Board

posted by Dave on Feb 15

The year is off to a fairly good start, activity was a little slow at the beginning of January but sales picked up about half way through the month!! This is not uncommon for this time of year. The weather has kept things a bit on the quiet side as we experienced some cold weather with that dreaded snow that made the appeal for our recreation buyers a bit on the slower side. This was really obvious over the Christmas period last year as we had one of the slowest festive seasons on the selling front in a number of years!!

 

The market in general is healthy with listing counts not rising too dramatically. We keep hearing the effects the “sub prime” market has put on the US real estate markets, I just want to reconfirm that we are not experiencing what the U.S.A. is experiencing!!

 

We will be starting to see the military families getting their posting notices so the listing inventory of homes in Courtenay, Courtenay East and Comox will increase in the coming months. At the same time we will see new families posted to CFB Comox arriving on house hunting trips looking for a new home!!

 

Well, the hot spot for number of sales this month was the Town of Comox with 12 residential sales followed by Cumberland with 9 sales. In third place was Courtenay East with 7 single-family sales. The average residential home sale price for the month of January in the Comox Valley is sitting at $330,479, this is an 11% increase in value since January 2007!!

 

Active residential listings on the market are sitting at 332 with 128 new listings coming on in the month in January!! The condominium/apartment market has 167 active listings with 43 new listings for the month & condominium/townhouse market have 52 active listings with 13 new listings for the month of January.

 

posted by Dave on Feb 15

Only the finest details combine with stylish design to create a living space you’ll love to get away to. A building consciously designed with the environment in mind, to enhance the spectacular views, to brighten and enrich your comfort and livability. Wildwood is the first of its kind at Mt. Washington, a truly sophisticated retreat.

These 3 bedroom townhomes are right across the street from Strathcona Park and you are minutes away from the Hawk High Speed Chair. Price at $399,900 they are an incredible buy and value for Mt Washington.

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