I am excited to start 2012 off with positive statistics from another year in real estate! The 2011 Greater Vancouver housing market began with heightened demand in regional hot spots and concluded with greater balance between seller supply and buyer demand.

Real Estate Stats:

• Residential property sales of detached, attached and apartment properties reached 32,390 in 2011
• A 5.9 per cent increase from the 30,595 sales recorded in 2010
• The number of residential properties listed for sale increased 2.7 per cent in 2011 to 59,549
• Compared to the 58,009 properties listed in 2010
• Last year’s listing total was 11.1 per cent above the ten-year average
• “It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below,” Rosario Setticasi, REBGV president said.
• We are still in a buyers market so enjoy it while it lasts!

Source: REBGV

The Buying Process

Whether you are a first home buyer or veteran purchaser, it never hurts to have a refresher of the process. The following simplified steps outline what you should expect during the duration of your purchase of real estate.

Select your mortgage broker √

• Complete the online application
• Create a budget of how much “you” can comfortably afford for your mortgage payment
• Get pre-approved and obtain a rate hold to protect yourself
• Review the process with your mortgage broker
• Provide requested documentation for review

Obtain a trusted real estate agent √

• I am looking forward to working with you!

Home Shopping

• Take your time and know what you are looking for
• Get your offer accepted

Subject removal stage (most important stage)

>>Financing

• Your mortgage broker will give you the go-ahead when this is approved

>>Inspection

• This shows the quality of the home you are buying

>>Appraisal

• This proves the value of the home you are buying
  Book Suggestion

Time before completion

• Prepare for the move
• Make decision on mortgage or life insurance
• The lender will send the final mortgage instructions to your solicitor

Instruction process

• The solicitor will contact you to arrange a time to sign final docs
• We will provide a trusted solicitor if you need one

Welcome home!

• You are no longer paying someone else’s mortgage!
• You receive the keys to your new home

Make sure to review these steps to ensure you are aware of what is going on and are properly prepared. Always have your documents approved by your broker prior to writing any offers.

Source: www.ownyourlife.ca

We would like to take this time to wish you and your family a Merry Christmas. They don’t call this the most wonderful time of the year for nothing!

Real Estate Stats:

• Residential property sales of detached, attached and apartment properties reached 2,360 in November
• This represents a 5.9 per cent decline compared to the 2,509 sales in November 2010
• New listings for detached, attached and apartment properties in Greater Vancouver totaled 3,222 in November
• This represents a 26.3 per cent decline compared to the 4,374 new listings reported in October 2011
• Bottom line, this is a buyers market so enjoy it while it lasts!

Source: REBGV

Gourmet “Spiked” Eggnog recipe for you….

• 12 egg whites
• 12 egg yolks
• 1 1/2 cups granulated sugar
• 1 1/2 quarts brandy
• 1 pint dark rum
• 1 quart milk
• 1 quart heavy cream (lightly whipped)

Beat the whites until stiff. Put aside. Beat the yolks until they are light. Add gradually the sugar and beat the mixture until it is thick and pale. Chill the mixture. Beat in slowly the brandy and the rum. Add in the milk and the cream, beating constantly with a wire whisk. Fold in the egg whites and sprinkle the surface of the punch with the nutmeg for garnish.

• Consistent increases in property listings and fewer home sales over the summer months has helped move the Greater Vancouver housing market into the upper end of a buyers’ market
• Residential property sales of detached, attached and apartment properties on the region’s MLS ® reached 2,246 in September
• A 1.2 per cent increase compared to the 2,220 sales in September 2010
• Those sales also rank as the third lowest total for September over the last 10 years
• New listings for detached, attached and apartment properties in Greater Vancouver totaled 5,680 in September
• The third highest volume for September in 17 years

Source: REBGV

No down payment to purchase a home?

Are you renting or an existing owner and you would like to purchase a home but simply don’t have the down payment? There are a number of solutions to this problem to share with you but first we should suggest what not to do. Yes there still are a few options to get you a zero down mortgage immediately but they are not in your best interest.The government of Canada made it illegal for lenders to provide a mortgage with no down payment. The minimum down payment in Canada is still 5%. There are however a few lenders still “creatively” offering a zero down mortgage but many people (and brokers) don’t understand the negative implications of this. Not only is it a danger purchase a home that is already leveraged as high as it can possibly go but the cost to do this is huge.

How this program (that we don’t recommend) works is as follows:

• The lender literally gives you 5% as a way around the new government rules
• They increase your mortgage interest rate on the entire amount to a rate they equates to you playing 100% interest on that 5% down payment
• Essentially you have to pay $20,000 in order to get $20,000
• You are not allowed to cancel this mortgage before the end of the 5 year term or you have to pay all the money back and a penalty

Instead we offer much better solutions:

1. LOC (line of credit) advancement: Obtain a LOC (line of credit) from your branch for the required amount and immediately place the funds into a savings account. You will begin to pay the interest payments. This total is added to your liabilities and does work against your ability to qualify but technically after 3 months, this money is considered yours and can be used for down payment
2. Forced savings account: Figure out how much you need to purchase your home, divide it by the amount of months for your goal to purchase (12, 24?) and set up a forced savings account to automatically draw the funds from your pay cheque. I suggest setting up the forced savings account in a way that you can’t withdraw the funds until 7 or more days has passed from your request. This will avoid any unnecessary withdraws while in Las Vegas
3. Gifted funds from a family member: Probably the quickest and easiest solution if you have this available

I hope that helps!

Source: ownyourlife.ca

• As expected the Bank of Canada kept the overnight lending rate the same.
• They are currently at 1% and have been in that same position for over a year now.
• Lenders will typically access these funds at the overnight lending rate, then increase them for a profit.
• You generally see the banks lending rate for floating rate dictated by Prime.
• The next meeting is October 25th, 2011
• For now and likely a while, your VRM (variable rate mortgage) and LOC (line of credit) are safe!

Set your child up for success this school year

We’ve all heard that breakfast is the most important meal of the day – and it’s true. Research reveals that people who skip breakfast don’t make up for the missed nutrients later in the day. But, how many of us follow that advice and ensure that our kids eat it too? It’s crucial to start your day with a nutritious breakfast and even more so for your children as they head back to school this September.

As we literally “break the fast” of 8 to 12 hours without eating, the body and brain need to refuel. A balanced breakfast not only kick-starts the metabolism, it sets us up for a more successful day. More than a quarter-century of research supports a positive link between breakfast and mental alertness and physical performance.

Families count on cereal for convenient, affordable nutrition, too, making it a popular breakfast choice among parents. In fact, ready-to-eat cereal is the preferred breakfast in many countries and the choices keep getting better. The taste, nutrition, simplicity and affordability of Kellogg cereals (just 50 cents a serving for cereal and milk) explain why they are a mainstay in nearly 77 per cent of Canadian homes.

What many parents may not know is that cereal is also an extremely nutritious choice. Cereal ranks as one of the best choices available as it is typically low fat and a nutrient dense food with many essential vitamins and minerals such as iron, B vitamins and zinc. Cereal also delivers the important benefits of grains, including fiber. Add to that the fact that kids and adults who regularly eat cereal tend to have lower body mass indexes and are less likely to be overweight than those who eat cereal less frequently and parents can be confident that are choosing a healthy breakfast option.

(Source www.newscanada.com)

Should you really have that Live of Credit?

There are is an incredibly high amount of people out there who have line of credits when they shouldn’t. A line of credit (LOC) should only be kept if you are actually using it. Why you ask? Because they are not cheap and this wonderful (sarcastically speaking) interest only payment is working against you. A current line of credit will cost you 3.50% interest where as the current closed variable mortgage will only cost your 2.35%. That is a difference of 1.15% which is huge. If and only if you plan to pay out this LOC soon, will it make sense to pay a higher rate to avoid a penalty. However if you have an existing LOC (secured or not) and plan to keep it for at least a year, you should highly consider converting into a closed variable.

You don’t need to be concerned about being able to repay it because … CLICK HERE TO READ MORE

Canada Mortgage and Housing Corporation (CMHC) released its 2011 Mortgage Consumer Survey today providing insight into the attitudes and behaviours of Canadian mortgage consumers.

• Internet appears to be the most popular location for research
• 86% used an online mortgage calculator
• Canadians take, on average, 11 months to plan their purchase
• The majority of homebuyers (88%) indicated they had a good sense of how much mortgage they could afford before purchasing a home
• 75% of recent homebuyers felt it is very important to pay-off their mortgage as soon as possible while many have already taken steps to do so
• 39% of recent buyers have their mortgage payment set higher than the minimum required
• 20% have made a lump-sum payment since taking out their mortgage
• 80%, to some extent, follow a household budget
• CLICK HERE for the full report
• The on-line survey, which polled more than 3,500 active mortgage consumers who undertook a mortgage transaction within the previous 12 months

The survey also showed that during their mortgage research 23% of first time buyers received advice on budgeting while 18% received advice on managing debt. In addition, the survey found that one in four (25%) recent buyers is not sure where to go to receive reliable advice in case of financial difficulty.

We suggest you try calling a mortgage broker first!

(Source: CMHC & moi)

Tips for the first-time home buyers

More than ever, first–time homebuyers are weighing their options before embarking on the Canadian dream of owning a home. “We want consumers to be comfortable with the financial responsibilities of owning a home, so it’s important to determine what they can afford in order to maintain a reasonable lifestyle once they’ve made the leap and purchase. The following are key points to consider and review;

-    Determine your net worth – Take your assets (cash, investments, savings, vehicles and other items you own) and subtract your liabilities (car loans, lines of credit, overdrafts and credit cards). A positive number is a good sign that you may be ready to purchase your first home.

-    Obtain mortgage pre-approval – There are many different mortgage options available on the market today. Thoroughly investigate the terms and rates available, and once you have settled on a rate, term and amortization period, apply for mortgage pre–approval with your lender. Mortgage pre–approval presents you as a serious purchaser, to both real estate agents and sellers.

-    Hire a real estate agent – Top agents have extensive experience and demonstrate dedication and commitment to helping their clients. Ask your family and friends for a referral, or explore real estate sites to read profiles on agents, including their areas of expertise and languages spoken. A real estate agent will have knowledge of accurate, real–time market data to leverage your negotiating position, as well as access to properties often even before they are listed on MLS.

Greater Vancouver housing market sees typical spring activity in April

“While it continues to be a seller’s market in Greater Vancouver, last month’s activity brought greater balance between supply and demand in the overall marketplace,” Rosario Setticasi, REBGV president said.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5 per cent to $622,991 in April 2011 from $593,419 in April 2010.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2 per cent decrease compared to the 3,512 sales in April 2010 and a 21 per cent decline compared to the 4,080 sales in March 2011.

(Source: REBGV)

How to use zero down payment without the high rates

The zero down payment option was abolished after the recent recession. Previously banks would offer zero down payment purchases with high fees. When this option was removed, a few banks found an expensive way around it. They would essentially give you a 5% down payment but the interest rate on the entire loan equated to about a 100% interest charge on the 5% down payment.

This is certainly not a good route to take. Furthermore if you cancelled the mortgage before term completion, you owed all that money back. Not good.

We have come up with an alternative strategy to a zero down payment. Obtain yourself an unsecured LOC (line of credit) for the amount required for down payment and closing costs. Then take these funds and deposit them into your bank account. After three months, those funds are considered yours and now you can use them for a 5% down payment. Of course you will pay interest on the LOC, however the rate will be significantly less. The only downside is you obviously must claim this liability which will hinder your purchasing potential and slightly decrease what you can afford.

This strategy is also suggested for those of you who find it hard to save up a down payment.

(Source: www.ownyourlife.ca)

Home buyers and sellers enter the housing market at near record pace in March

Activity in the Greater Vancouver housing market continued to strengthen in March with both the number of homes sold and added to the region’s Multiple Listing Service® (MLS®) reaching near record levels.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached near record numbers.

• 4,080 in March 2011.
• This represents a 31.7% increase compared to the 3,097 sales recorded in February 2011
• An increase of 30.1% compared to the 3,137 sales in March 2010
• And an 80.1% increase from the 2,265 home sales in March 2009.
• The all-time sales record for March occurred in 2004 when 4,371 transactions were recorded.

(Source: REBGV)

New research shows these five driving habits will save you money on fuel

Natural Resources Canada (NRCan) has compiled some compelling data on why we should adopt safer, greener driving habits. The latest statistics are very telling and point to a whole new mindset in the way we drive. Studies show that these five driving techniques can reduce your fuel costs by up to 25 per cent:

• Accelerate gently
• Maintain a steady speed
• Avoid high speeds
• Anticipate traffic
• Coast to decelerate

You should still combine errands, monitor your fuel consumption, reduce idling, maintain proper tire inflation and vehicle maintenance, cut back on air conditioning use and lighten your load; however, these five driving techniques will definitely put your wallet and the environment in the green.

Demand for detached homes continues to be strong across Greater Vancouver, with particularly high sales volumes occurring in Richmond and Vancouver Westside.

Between November 2010 and February 2011, the MLSLink® Housing Price Index (HPI) benchmark price of a detached home in Richmond increased $190,739 to $1,099,679; in Vancouver West, detached home prices increased $222,185 to $1,850,072. In comparison, detached home prices across the region increased $51,762 between November 2010 and February 2011 to $848,645.

For the past two months, the number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) in Greater Vancouver outpaced the 10-year average in both categories. From a historical perspective, February’s 3,097 homes sales outpace the 2,742 home-sale average recorded in the region over the last ten years.

(Source: REBGV)

How do I increase the value of my property?

That’s the question on every homeowners mind. There are two key survival strategies. The first is to think long term, have a plan and stick to it. History shows that this plan of action can pay off.

The second tactic is to outperform the market. This means ensuring your property increases in value at a greater rate than those in your surrounding market. One way to do that is through renovations – but not all projects are created equal when it comes to generating a return on investment (ROI).

Here are the top four “renos for ROI”:

1. Building an income suite (also knows as a rental suite). This is by far the most profitable reno a homeowner can undertake. Income suites typically have a 150% to 250% ROI.
2. Painting. This is an inexpensive way to freshen up a property. Picking neutral tones and doing a good job are key. This simple reno project gives 100% ROI.
3. Renovating Kitchens and bathrooms. Kitchens should be bright and spacious with a smart layout. Replacing old appliances with inexpensive and more efficient newer ones also adds a lot of appeal. Bathrooms are equally important. The more you have, the better the ROI. This delivers about 75% to 100% ROI.
4. New Flooring. This has a dramatic impact and hard surfaces are the way to go. Laminate flooring is inexpensive, easy to lay, durable and looks great. With modern styles and improved design, it has become the flooring of choice for real estate investors. New flooring can generate an avg. of 70% to 90% ROI.

(Source: HGTV.ca)

On January 17, 2011, Minister of Finance, Jim Flaherty, announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped to protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

The new measures:

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.

• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the re-packaging of consumer debt into mortgages guaranteed by taxpayers.

• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

The Canadian government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

(Source: JAC News)

Stability and regional ‘hot spots’

The Greater Vancouver housing market remained in balanced market conditions in January, although higher levels of buyer demand were seen in some of the region’s largest communities.

The number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) last month outpaced the 10-year average in both categories for January.

“There was a healthy balance between the number of home buyers and sellers in our market in January, but there’s always variation in activity from region to region,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). “We’re seeing strong sellers’ market conditions in areas like Richmond and the west side of Vancouver.”

“When you’re looking to buy or sell a home, it’s important to familiarize yourself with the wider trends in the market. It’s equally important to seek out knowledge of your local area so you understand current market conditions in your neighbourhood,” Moldowan said.

Looking across the region, the REBGV reports that residential property sales in Greater Vancouver reached 1,819 on the MLS® in January 2011. This represents a 4.2 per cent decline compared to the 1,899 sales recorded in December 2010, a decrease of 5.4 per cent compared to the 1,923 sales in January 2010 and a 138.7 per cent increase from the 762 home sales in January 2009.

From a historical perspective, January’s 1,819 homes sales slightly surpassed the 1,790 home sale average recorded in the region over the last ten years.

(Source: REBGV)

The Greater Vancouver residential housing market entered three distinctive phases in 2010. Continued buoyancy from the post-recession recovery began the year, followed by a summer lull and, throughout the fall, a sustained period of stability.

• Total sales of detached, attached and apartment properties in 2010 reached 30,595
• A 14.2 per cent decrease from the 35,669 sales recorded in 2009
• But a 24.2 per cent increase from the 24,626 residential sales in 2008
• Residential properties listed for sale on the MLS® in Greater Vancouver increased 9.7 per cent in 2010 to 58,009
• Compared to the 52,869 properties listed in 2009
• Compared to 2008, last year’s total represents a 7.3 per cent decline compared to the 62,561 residential properties listed in 2008

“The last two years have been a bit of a rollercoaster for the real estate market. However, sales over the past six months have definitely shown a trend toward stability. We think that’s good news for home buyers and sellers,” Jake Moldowan, REBGV president said. “The Greater Vancouver housing market experienced a modest increase in home prices in 2010, and a continual decrease in the number of properties being listed for sale.”

(Source: REBGV)

Budgeting for Interest Rate Hikes

Interest rates, near historic lows for much of the past two years, are widely expected to increase through the latter half of 2011. The cost of carrying debt, including mortgages, lines of credit and credit cards, will be affected.

“Low interest rates have enticed many Canadians to spend more on credit,” says Stephen Reichenfeld, VP and wealth counselor, Fiduciary Trust Company of Canada. “But an improving economy means lending rates will likely rise. It’s important to take steps today and prepare for potential higher borrowing costs in the years to come.”

Four steps that can help you prepare to come out ahead:

• Reduce personal debt. Do what you can today to decrease your debt load before borrowing costs increase. Review the option to lock in borrowing costs now and consolidate debt at a lower interest rate. If you’re only making minimum payments on your credit cards, start paying more.
• Rethink your mortgage. If you have an adjustable rate mortgage, and you plan to be in your home for at least five years, consider refinancing options such as converting to a fixed rate mortgage at current rates. Speak to your mortgage broker to discuss your options.
• Equity funds. Stocks tend to benefit more than fixed income products like bonds in a rising interest environment. Past market cycles indicates sectors like industrials and technology benefit when interest rates rise.
• Don’t hesitate on a major purchase. Consider accelerating your plans to purchase now before interest rates rise. If you’re in the market for a new car, there may be zero percent financing and other incentives available. These offers often disappear as rates rise.

(Source: News Canada)