Contact Kim Cheng

Contact Kim Cheng
Coldwell Banker
Cell: 604-880-8971
Office: 604-437-1123
Coldwell Banker
Westburn Rlty.
5489 Kingsway
Burnaby, BC
V5H 2G1 CA
 

Stronger Mortgage Underwriting

 

As you’ve seen in the news, in October, the Office of the Superintendent of Financial Institutions Canada (OSFI) released new Residential Mortgage Underwriting Guidelines.  The Guidelines are said to reinforce a strong and prudent regulatory regime for residential mortgage underwriting.  The Guidelines can be found here http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/b20_dft.aspx

 

Highlights of the Guidelines include now requiring a minimum qualifying rate for uninsured mortgages to be 2% greater than the five-year benchmark rate.  This would protect the public in the event of small interest rate increases.  Financial institutions must now enhance their loan-to-value ratio limits so that they are dynamic and responsive to risk.

 

It is expected that these measures will decrease the amount of credit available which could potentially be another government tool being used to cool the housing market.  If you would like to discuss how these measures might affect your real estate plans, please feel free to contact me. 

 

Turning to the October numbers:

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

2

$1,183

1

$1,198

2

$1,077

3

$1,076

Downtown

221

$1,409

61

$1,122

134

$1,152

91

$1,079

Coal Harbour

33

$1,989

11

$1,546

11

$1,697

6

$1,256

 

 

Regards,


Kim

 

E&OE

 

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Market Update

 

September 2017 saw the market starting to stabilize.  We are still seeing multiple offers and sales.  Lower priced units continue to move quickly.  However, we are also seeing price reductions throughout the lower mainland including Vancouver.

 

Contributing to the uncertainty is speculation as to whether the Bank of Canada will raise rates for the third time this year at its next scheduled rate announcement on October 25.  A raise in rates usually contributes to a decrease in prices although it can lead to a short-term increase in activity and hence prices as buyers look to lock in pre-approved lower rates.  We have seen some of that buyer instigated activity since the last two rate increases.  

 

If you are thinking about buying or selling, feel free to call me to talk about your particular circumstances and how timing could affect your risk. 

 

And for those of you following the numbers, the September numbers were:

 

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

1

$1,362

3

$922

1

$1,025

1

$988

Downtown

209

$1,400

88

$1,106

137

$1,160

95

$1,081

Coal Harbour

37

$1,797

9

$1,528

16

$1,647

6

$1,293

 

 

Regards,

 

Kim

 

E&OE

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At the time of this email, the bank of Canada has raisin it’s rate to 1%.  Usually what this mean is a flurry of activity as the Buyers are trying to capture the lower rates.

 

Not much has changed in the Greater Vancouver market over the last month. Condos continue to be high and houses are relatively lower priced.  However nationally things are continuing to change.  For example, in July Greater Toronto average prices were down 19% from the market’s peak in April and year-over-year sales were 40% lower.  Vancouver has always had a different market and this shows to need to get advice from someone who understands the local market.

 

The August numbers were:

 

 

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

3

$1,218

2

$941

1

$1,041

3

$1,064

Downtown

250

$1,440

81

$1,217

138

$1,143

112

$1,101

Coal Harbour

40

$1,883

10

$1,506

11

$1,534

9

$1,190

 


Regards,


Kim


E&OE

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Market Update:

 

July saw the first change in the overnight interest rate since July 2015.  The overnight rate increased to 0.75% from 0.5%.  The next scheduled interest rate announcement date is September 6, 2017 but the experts widely expect no change, particularly since the US Federal Reserve Board did not increase its rates.  Of course, it depends on the economic situation at the time but the panic to enter the market before interest rates increase, seems to have eased off.  Houses remain relatively flat.  The most active market continues to be the one bedroom condominium market, although investor activity seems to have decreased at this end as well.

 

Looking back at July, the numbers were:

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

3

$1,128

1

$1,124

3

$1,009

1

$987

Downtown

259

$1,450

79

$1,193

165

$1,136

105

$1,063

Coal Harbour

42

$1,904

5

$1,372

14

$1,227

8

$1,235

 

 

As always I would be happy to discuss your long and short term real estate strategies with you or how the market affects your personal property.  Call or email me today!

 

Regards,

 

Kim

 

 

E&OE

 

 

 

 

 

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The only thing that is Constant is Change - Heraclitus

 

Right now the market is quite variable.  With the uncertainty surrounding the provincial government and the NDP/Green alliance certain sectors of the market are showing increased activity.  For example, those who qualify for the current first-time homebuyer incentives are trying to close quickly to ensure that they can take advantage of the incentives before any changes can be made in particular, to the program introduced by the Liberal government at the beginning of this year.  Others are waiting to see what changes the new government might bring. 

 

Personally, I would recommend that Sellers consider listing as soon as possible as the NDP has hinted that it intends to bring in measures that will depress housing prices.  On the other hand, if you don’t need to buy right away, I would suggest waiting to see what political measure are in place as the rapid price increases seems to have slowed.  Of course, if you need more space for your family or have reasons why buying right away makes sense, at least the prices are starting to be closer to asking rather than the 10% or 20% above asking we were seeing a few weeks ago.

 

Looking back at May, the numbers were:

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

4

$1,222

0

$--

2

$967

2

$1,019

Downtown

341

$1,324

123

$1,155

279

$1,071

139

$1,037

Coal Harbour

54

$1,719

18

$1,531

19

$1,383

6

$1,308

 

 

I would be happy to discuss your long and short term real estate strategies with you or how the market affects your personal property.  Call or email me today!

 

 

Regards,

 

Kim

 

 

E&OE

 

 

 

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Nothing can be said to be certain, except death and taxes (Benjamin Franklin)

 

With the tax filing deadline just past hopefully we all filed on time and can procrastinate for another year.  You might have noticed something new on the tax form this year.  While the Principal Residence Exemption continues, as of the 2016 tax year there was a new reporting requirement.  Previously when you sold a principal residence, nothing was reported as the capital gains were exempt from tax.  However, if you sell your home in 2016 or later, it must be recorded on the Schedule 3 Capital Gains schedule.  There is still a tax exemption but now it must be reported.[1]

 

The trend of a hot condo market continues.  While inventory is increasing, it is still relatively low which is contributing to the price gains.  Starter home prices are also starting to increase after a period of slow activity and low inventory. 

 

The April numbers were:

 

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

2

$1,070

2

$1,162

2

$969

2

$986

Downtown

188

$1,247

89

$1,169

180

$1,015

104

$1,032

Coal Harbour

33

$1,640

10

$1,662

12

$1,141

5

$987

 

 

I would be happy to discuss your long and short term real estate strategies with you.  Call or email me today!

 

 

Regards,

 

Kim

 

 

E&OE

 



[1] Not meant to be tax advice.  Professional advice should be sought regarding your particular situation.

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How flexible is your investment plan?  In the days leading up to the federal budget there was speculation that the capital gains exemption would be reduced.  While there were no changes in this budget, could the speculation be telegraphing a change in the future?  Have you considered how your investment strategy would be affected by a tax change?  Don’t forget to consult your tax and investment professionals to find out how much risk a change represents to you. 

 

Meanwhile, the condo market continues to be extremely hot in the lower priced two bedroom and one bedroom units, partially due to the low amounts of inventory.  Starter home prices are also starting to increase after a period of slow activity and low inventory. 

 

The March numbers were:

 

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

3

$1,356

2

$967

6

$977

1

$950

Downtown

295

$1,299

91

$1,073

268

$1,031

107

$979

Coal Harbour

45

$1,755

7

$1,480

17

$1,260

7

$1,170

 

 

I would be happy to discuss your long and short term real estate strategies with you.  Call or email me today!

 

 

Regards,

 

Kim

 

 

E&OE

 

 

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In honour of the recent official opening of the Trump Tower in Vancouver …

 

“This is not FAKE NEWS!!!”*

 

“Really, really – I think this is going to be good” “All negative real estate news are the enemy of the people”*

 

We are continuing to see an upturn in the Vancouver real estate market.  As you may recall from our last market update, economists believed that the then recently announced BC Home Owner Mortgage and Equity Partnership would cause increases for properties at the low end and indeed that has seemed to be the case.  We are also starting to see more activity with houses under $1.5 million.  The greatest activity is in the one bedroom condo market with a return to multiple offers on entry level units. 

 

And now for the facts, the February market update numbers are:

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

2

$1,206

0

$---

2

$1,010

2

$889

Downtown

200

$1,299

66

$1,108

164

$1,072

82

$938

Coal Harbour

26

$1,782

9

$1,342

15

$1,379

5

$1,107

 

 

I would be happy to discuss your long and short term real estate strategies with you.  Call or email me today!

 

 

Regards,

 

Kim

 

 

E&OE

 

* Trumpisms used for satirical purposes only and do not express the viewpoints of the viewpoints of the writer or Coldwell Banker

         

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Happy 2017!

 

As you know, the BC government recently released interest free loans for half of the down payment for first time homebuyers.  The BC Home Owner Mortgage and Equity Partnership will be available for purchases that close on or after February 15, 2017.  In order to be eligible all individuals with a registered interest on title must:

 

  • reside in the home

  • have resided in BC for at least one year immediately preceeding the date of application

  • be a first-time buyer who has not owned an interest in a residence anywhere in the world at any time

  • use the property as their principal residence for the first 5 years

  • purchase a home that has a purchase price of $750,000 or less (excluding taxes and fees)

  • obtain a high-ratio insured first mortgage on the property for at least 80% of the purchase price

  • have a combined, gross household income of all individuals on title not exceeding $150,000

  • have save a down payment amount as least equal to the loan amount for which the buyer applied

 

Economists believe this programme will have the opposite of the intended effect of affordability by raising the prices of properties at the low end of the market. 

 

We will keep you updated.  In the meantime the December market update numbers follow:

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

1

$1,588

0

---

1

$1,052

2

$882

Downtown

133

$1,288

47

$1,014

102

$1,111

61

$935

Coal Harbour

16

$1,621

6

$1,150

14

$1,344

1

$1,522

 

 

I would be happy to discuss your long and short term real estate strategies with you.  Call or email me today!

 

 

Regards,

 

Kim

 

 

E&OE

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Happy Holidays!

 

November saw another strange month of market activity.  At the end of November, prices at the low end spiked with multiple offers again being submitted.  The higher range of the market continues to normalize.  Only time will tell which trend is the market direction.  Likely we will also see some market effects over the next 6-8 months as President-Elect Trump takes office. 

 

Attached below is the November market update numbers.

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

3

$1,169

1

$945

5

$913

3

$845

Downtown

313

$1,196

56

$1,028

299

$996

66

$907

Coal Harbour

28

$1,385

2

$1,320

27

$1,164

3

$954

 

 

We have also included the Real Estate Board statistics which show that prices are roughly the same although as expected with the recent government changes, the activity is lower both month-over-month and compared to last year.

 

I would be happy to discuss your long and short term real estate strategies with you.  Call or email me today!

.

Regards,

 

Kim

 

E&OE

 

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Change is afoot!

 

The  results of the recent US presidential election has caused speculation as to the effect on Canadian real estate.  We’ve added a link to a sample article so you can draw your own conclusions. https://www.msn.com/en-ca/news/other/impact-of-trump-win-on-canada%E2%80%99s-real-estate/ar-AAk3PmS

 

We are also changing the format of our video updates so it will be a few months before you will see another one.  But we wanted to give you the October market update numbers.

 

 

2 Bedroom

1 Bedroom

 

#Active

/sq.ft.

#Sold

/sq.ft.

#Active

/sq.ft.

#Sold

/sq.ft.

Woodwards

4

$1,071

1

$885

3

$895

2

$768

Downtown

290

$1,222

68

$1,051

247

$997

86

$913

Coal Harbour

24

$1,405

7

$1,514

22

$1,063

4

$923

 

 

I would be happy to discuss your long and short term real estate strategies with you.  Call or email me today!

 

 

Regards,

 

Kim

 

 

E&OE

 

 

 

 

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December 9, 2010 - According to Canada Mortgage and Housing Corporation (CMHC), the average rental apartment vacancy rate in urban British Columbia centres edged lower to 2.7 per cent in October 2010, compared to 2.8 per cent in October 2009.

“Although the rental vacancy rate increased in more than half of the centres surveyed, lower vacancy rates in the other 12 centres, including the Vancouver Census Metropolitan Area, pushed the provincial average lower,” noted Carol Frketich, CMHC’s BC Regional Economist. “Strong migration flows and fewer first-time homebuyers shifting tenure from rental to homeownership pushed the vacancy rate lower,” she added.

Stable demand and increased supply from the secondary rental market slowed the increase in rents among all bedroom types. The estimated increase in same sample apartment rents for units common to both the October 2009 survey and the October 2010 survey, was 2.3 per cent, down from 2.8 per cent a year ago.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

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Home buyer and seller activity increases in busy spring market
 
VANCOUVER, B.C. – May 4, 2010 –The Greater Vancouver housing market experienced increased activity in April thanks to a steady balance of home buyers and sellers entering the marketplace.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 3,512 in April 2010, the fifth highest-selling April on record. The figure represents an increase of 18.5 percent compared to the 2,963 sales in April 2009; 9.1 percent more than April 2008’s 3,218 sales; and 3.7 percent more than April 2007’s 3,387 sales. April 2010 sales also represent a 12 percent increase compared to last month.
 
“We’re in the midst of another strong spring season thanks to high levels of activity on both the buyer and seller side of our market,” Jake Moldowan, REBGV president said. “The number of homes coming on the market has increased significantly in recent months, which is providing a healthy level of choice for those looking to buy during this busy period.”
 
New listings for detached, attached and apartment properties in Greater Vancouver totalled 7,648 in April 2010, a 64.5 percent increase compared to April 2009 when 4,649 new units were listed, and a 9.2 percent increase compared to March 2010 when 7,004 properties were added to the Multiple Listing Service® (MLS®).
 
At 15,901, the total number of property listings on the MLS® increased 17 percent in April compared to last month, and is up 11 percent compared to this time last year.
 

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 18.9 percent to $593,419 from $499,021 in April 2009.

“It was at this time last year when home prices in our region began their recovery from the declines that occurred during the recession period,” Moldowan said.
 
Sales of detached properties in April 2010 reached 1,370, an increase of 15.1 percent from the 1,190 detached sales recorded in April 2009 and a six percent increase from the 1,293 units sold in April 2008. The benchmark price for detached properties increased 21.2 per cent from April 2009 to $818,403.
 
Sales of apartment properties reached 1,526 in April 2010, an increase of 29.4 percent compared to the 1,179 sales in April 2009 and an increase of 15.9 percent compared to the 1,317 sales in April 2008.The benchmark price of an apartment property increased 16.9 percent from April 2009 to $397,779.
 

Attached property sales in April 2010 totalled 616, an increase of 3.7 percent compared to the 594 sales in April 2009 and a 1.3 percent increase from the 608 attached properties sold in April 2008. The benchmark price of an attached unit increased 16.4 percent between April 2009 and 2010 to $502,399. ~Real Estate Board of Greater Vancouver

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VANCOUVER, B.C. – April 6, 2010 – A steady influx of new listings has helped create a balanced ‘typical spring’ housing market in the Greater Vancouver region.

 
The Real Estate Board of Greater Vancouver (REBGV) reports that new listings for detached, attached and apartment properties in Greater Vancouver totalled 7,004 in March 2010. This represents a 60 percent increase compared to March 2009 when 4,385 new units were listed, and a 52.1 percent increase compared to February 2010 when 4,606 properties were listed on the Multiple Listing Service® (MLS®).
 
At 13,538, the total number of property listings on the Multiple Listing Service (MLS®) increased 19 percent in March compared to last month, but remains 7.6 percent below this time last year.
 
“The total number of homes listed for sale on our MLS® is at its highest level in 10 months, which translates into more options and variety for those looking to buy during the traditionally busy spring period,” Jake Moldowan, REBGV president said.
 
Residential property sales in Greater Vancouver reached 3,137 in March 2010, a 38.5 per cent increase compared to March 2009, a 4.7 percent increase over March 2008, and a 12.4 percent decrease compared to March 2007. The current figure also represents a 26.8 percent increase compared to the 2,473 sales recorded in February 2010.

 

“With a sales-to-listing ratio of 23 percent, we see a healthy balance between buyer demand and seller supply in the marketplace,” Moldowan said.

 
Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 20.3 percent to $584,435 from $485,845 in March 2009. This price is 2.8 percent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.
 
Sales of detached properties in March 2010 reached 1,336, an increase of 49 percent from the 897 detached sales recorded in March 2009 and a 19.7 percent increase from the 1,116 units sold in March 2008. The benchmark price for detached properties increased 23.3 percent from March 2009 to $800,341, but declined 0.6 percent compared to last month when the benchmark price was $800,796.
 
Sales of apartment properties in March 2010 reached 1,252, an increase of 28.3 per cent compared to the 976 sales in March 2009 and a decline of 8.6 percent compared to the 1,370 sales in March 2008.The benchmark price of an apartment property increased 17.3 percent from March 2009 to $395,507 and is up 1.2 percent compared to last month when the benchmark price was $390,899.
 
Attached property sales in March 2010 totalled 549, an increase of 40.1 percent compared to the 392 sales in March 2009 and a 7.4 percent increase from the 511 attached properties sold in March 2008. The benchmark price of an attached unit increased 17.3 percent between March 2009 and 2010 to $493,263, but declined 0.5 percent compared to last month when the benchmark price was $495,496.
 
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FOR IMMEDIATE RELEASE
20 October 2009
 
CONTACT: Jeremy Harrison
613 782-8782
 
Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010
 
OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.
 
Recent indicators point to the start of a global recovery from a deep, synchronous recession. Global economic and financial developments have been somewhat more favourable than expected at the time of the July Monetary Policy Report (MPR), although significant fragilities remain.
 
A recovery in economic activity is also under way in Canada. This resumption of growth is supported by monetary and fiscal stimulus, increased household wealth, improving financial conditions, higher commodity prices, and stronger business and consumer confidence. However, heightened volatility and persistent strength in the Canadian dollar are working to slow growth and subdue inflation pressures. The current strength in the dollar is expected, over time, to more than fully offset the favourable developments since July.
 
Given all of these factors, the Bank now projects that, relative to the July MPR, the composition of aggregate demand will shift further towards final domestic demand and away from net exports. Growth is expected to be slightly higher in the second half of this year than previously projected but to average slightly lower over the balance of the projection period. The Canadian economy is projected to grow by 3.0 per cent in 2010 and 3.3 per cent in 2011, after contracting by 2.4 per cent this year. This is a somewhat more modest recovery in Canada than the average of previous economic cycles.
 
The Bank now expects that the output gap will be closed in the third quarter of 2011, one quarter later than it had projected in July. Correspondingly, inflation is also expected to return to the 2 per cent target in the third quarter of 2011, one quarter later than in July's projection.
 
While the underlying macroeconomic risks to the projection are roughly balanced, the Bank judges that, as a consequence of operating at the effective lower bound, the overall risks to its inflation projection are tilted slightly to the downside.
 
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target. Consistent with this conditional commitment, the Bank will continue to conduct longer-term Purchase and Resale Agreements based on existing terms and conditions and according to the accompanying schedule: http://www.bankofcanada.ca/en/notices_fmd/2009/notice_fad201009.pdf.
 
In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility, consistent with the framework outlined in the April MPR.
 

Information note:
A full update of the Bank's outlook for the economy and inflation, including risks to the projection, will be published in the MPR on Thursday, 22 October. The next scheduled date for announcing the overnight rate target is 8 December 2009.

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