A New Year, reflection on last year's happenings, reciept of your new B.C. tax assesment, and of course  . . . holiday shopping bills!!!  Yes, it is the start of the new year, 2012!!

By now, everyone has received thier B.C. tax assesments, and depending on where you live have increased or decreased.  Either way, a very modest change, as we have not had anyone inform us of any marked difference!  

We usually get a lot of calls in regards to "assessed values" when they arrive, but this year has been very quite.  Something to remember though, the B.C. Assement Board (who perform the assesments), actually compile and evaluate your value in the June/July period of the previous year.  They do have a reciprocal agreement with the local Multiple Listing Services and Boards, in that they can access information on sales for the varied areas, without the in-depth analaysis a Realtor would perform.

So, in short, the value you recieve is usually very general in approach and really depends on what the Real Estate market was doing during the June/July period.  As an example, we had a tremendous market a few years back with record prices being realized . . . up and until July . . . then the world's economic bottom fell out!  Well, when the tax assesments showed up in January, we had a large portion of homes valued well above what they could sell for (we know because we had a number of listings for sale at $40,000.00 less than their "assessed" values!).  How can this be?  Well, the bottom line for these tax assesments is to establish your property value so as to charge taxes that the municipalities and city's will use to cover services provided.  Does this mean the value that the B.C. Assesment is, is all your home is worth?(or is it really worth this?)  Absolutely not!!  As you can see it is very discretionary in approach and does not take into account improvements, different neighbourhoods, property assets, etc.

As Realtors, we can only establish values through a comprehensive evaluation of "like" properties, that have sold in current market conditions.  We take a look at the home, inside and out, check out similar homes, look at recent sales, look at current "for sales" and give an opinion of value based on these many variables.  Yes, there is some "give and take" as no two homes are exact, and although this is not brain surgery, it is not a "shot in the dark" guess either.  Simply put, your B.C. assessed value should not be a value that is wieghed too much in establishing "real market values".  Leave that to your Realtor or a professional appraiser!

Back to the year ahead . . . we should expect a very balanced road ahead with many a pot holes to the side that could easily change everything.  There will most likely be some valleys and peaks (European economic changes!), but from what we can see, a very straight forward year. 

Where one will find the differences, is in the varied areas and neighbourhoods.  What happens in Vancouver or Richmond, does not equate the same for South Surrey, Cloverdale or Langley.  It is paramount to obtain advice that is relative to your community, as T.V. News and large newspapers report in "generals" and usually only those issues that make news . . . "market crashes" (where?).

If you want our advice . . . do your home work and get informed.  You will quickly discover a totally different story and when put into perspective, may be just what you have been waiting for. 

Taking a look at last year's happenings, the largest "ups and downs" seemed to happen in the stock markets. . . mainly down, as I believe the average stock fell 11 to 12% overall.  In contrast, Real Estate saw a modest increase on average of apprx. 4-6% depending on areas.  With the situations in Europe and the U.S., the stocks are still looking bleak.  Maybe it's time to take advantage of low interst rates and put your money into Real Estate.  Values remain constant and returns are definatley better than the alternatives in the stock market.

Did we come to that conclusion because we are Realtors?  Not at all . . . we just didn't like watching our "stock" values decrease!!  After all we are human too!! ;-)

Well by now you know of the new mortgage rules and guidelines that will be inforce come March 18th. 2011.  Has this made an impact on sales one way or the other?  It's hard to say . . . if anything, we noticed an increase of activity in February, but since it has been fairly steady keel. So I'm guessing the changes will come without fan fair and for most, the adjustment will just be accepted!  

If anything has changed, we have noticed an intense segregation of different markets and areas, to the point we can no longer make a statement on our Real Estate market that will "blanket" cover the entire market or Greater Vancouver/Fraser Valley.  Everyone knows Richmond increased 17% in values last year alone and appears to be up a further 3.75% this year.  This is directly due to a flush arrival of Asian buyers.  This "flow" has also had impact on Vancouver's downtown condo market (how many sales the first weekend of the Olympic Village being open?!) and on South Surrey / White Rock's million dollar properties.  Since Jan. there have been apprx. 59 sales of homes over a million dollars in South Surrey / White Rock alone!  But what about other outlaying areas like Cloverdale, Langley, Fleetwood, etc..  We can't make statements of rising values in double digets, nor can we state sales have been going at rocket speed.  There has been some impact (mainly from second money buyer's, those who may have sold to Asian buyers) but nothing to the degree the media has proclaimed.  Take Langley for example, the spike right now is new product in Yorkson, but re-sales in surrounding neighbourhoods has been O.K. at best.  Walnut Grove's "Forest Hills" has seen a resurgence but other neighbourhoods are still finding the price point of attraction.  And this, if anything, will have the greatest impact on sales . . . finding the level of attraction in pricing.  Once a home is listed at this level (that being what buyers immediatley percieve as good value) it sells relatively quick.  Does this mean prices are dropping?  Absolutely not!!  But it does demonstrate that too many homes are still trying to sell speculatively above current value levels. 

"We know that our neighbour down the street sold a couple of years back for "X" amount of dollars, and their home wasn't as nice as ours!" is a fair statement, but markets change as do values.  So, your neighbour just happened to sell at a peak time (much like those in the stock market who seem to always sell high!), but now, even they would be lucky to sell for the same amount.  On the flip side, it is all relative if you are buying . . . these values are also down!  Right now you will notice those homes that are selling are not selling at record sale prices, but are consistant (even slightly higher) with recent sales that have taken place.  And don't blame the Realtors!  We do not control values, or market trends for that matter (if we could, do you really think selling homes would be our profession?), we are to provide you with and interpret to the best of our abilities, the knowledge of what is happening.  You (as a home owner) make the decisions to sell or not!  There is no amount of marketing a Realtor can do, to convince a buyer to pay beyond market value for a home.  Could you be convinced to pay thousands more for a home, when you already know similar properties sold for less?  Of course not! 

All in all, our sales have surpassed last year's numbers, but values are still being kept in check by number of product available.  True, the available product is down considerably from last year, but there is still enough for Buyers to choose from!

My advice is to get good advice!  It is still a great time to buy and sell, but it all depends on your reality of today's values and if they can work for you, based on your own personal situations!  That's why we always state, "give us a call to discuss the market and see if this is your time to sell or buy!" 

P.S. That number is 604-618-6736 direct.

Mid November and this news is just released . . . 5 year fixed term rate to go up tomorrow.  Word is the "discounted" rate of 3.39% (best discount) is about to rise to either 3.89 or 3.99%, yes . . . a good 1/2 point rise!  How is this possible when the Bank of Canada rate has not changed?  Well, the major banks don't need to wait for the Bank of Canada nor do they when it comes to their rates on fixed and variable rate discounts.  If you remember earlier this year, the 5 year fixed jumped well over 4% and then fell again, yet this was all before the Bank of Canada had done any adjusting of it's rate.

How does this affect the market?  As a buyer, directly!  Most buyers need to qualify for a fixed 5 year term based on the "current 5 year rate".  So, if the rate goes up, the amount a buyer can qualify for is reduced!  This holds true even when the buyer chooses to take the fixed 5 year term and then only needs to qualify with the discounted rate! 

As a seller, this will also have impact.  Initially, you may experience a "rush" of buyers looking to secure their pre-approved lower rates.  But there after, a buyer who may have been able to afford your home prior to rate increases, now can not.  In simple terms, the buyer has "lost" some buying power or ability in terms of price.  This can equate to thousands and takes place as quick as a bank changes their rate.  Now imagine your Realtor coming to you as a Seller and telling you that you must reduce your price $30,000.00 now, because the buyers have just lost this in buying power.  As you can imagine, this side of it becomes a wee bit difficult to swallow.

What steps can be taken?  As a Buyer, you should have a rate guarantee in place and if you don't, get on the phone now!  There is no cost for this, and it will actually help you understand what your real ability in buying power is.  Most lenders will give either a 60 or 90 rate guarantee (this means that you have closed on your purchase with in this time!), so don't think you can take 90 days then make an offer . . . it doesn't work this way.

As a Seller, this news should strike some fear into you, especially depending on what price "sweet spot" you may be sitting at.  Meaning, if you are in the lower price ranges, where buyers are generally tighter for money, then these Buyers will be very sensitive to any rate changes and will reflect this quickly in their offers to purchase.  The Seller should ensure they are priced "dead on" to take advantage of those Buyers who will jump tomorrow and buy (so they get their lower pre-approved rate).  Also, well priced homes attract the most Buyers, which will also help mitigate future price reductions if you can attract offers now as opposed to some weeks down the road.

So, tomorrow morning, become "PRO-ACTIVE".  If you are a Buyer or thinking of Buying, get on the phone to your mortgage broker and get that rate "locked in" and if you are a Seller, call your Realtor to ensure your price is as attractive as it can be (without giving up the farm!) to attract those Buyers!

Many people are asking this question.  Especially those who are listed for sale, looking to buy or seriously thinking of selling.

This year has seen a tumultuous change in markets that seem to be going in all directions at the same time.  We have seen prices rise, stabilize, rise again, fall and stabilize again.  Homes for sale have seen record highs and homes sold hit 10 year lows.  All in all, a rolling ride that will confuse the hell out the average home owner and even test the mettle of an experienced Realtor.  If anything, the "experience" of a Realtor will be key for anyone contemplating selling or buying, as it is imperative to be on top of things as they happen, and understand why.

No, this is not a pre-Halloween scare story, but our attempt to shed some light on the why and whats of this market.

Figures since January have shown an average price increase in Real Estate of apprx. 4.8%.  Not bad!, but this is down 1.5 - 2% since June, when it peaked at apprx. 6.2%.  If you are now thinking of selling, you will most likely gravitate to those `peak`prices, but unfortunately they have passed.  As a buyer, you most likely are thinking this recent slump is the start of the `bubble bursting` and where will it end?  For the fore see able future, we will continue this rolling ride with what we expect peaks and valleys of apprx. 2 -3%, otherwise . . . up 3%, down 3%, and so on and so on . . . 2012.

Bubble? No! Just a slump before we skyrocket again? Definately not!!  Somewhat balanced and signs of a normal market returning?  I think so.  The real difference . . . staying on top of the little changes and reacting quickly.  At present, the largest change we are faced with . . . fewer buyers buying.  Our success ratio is currently 10-11 homes out of 100 selling in a given month.  This is down from a high of apprx. 43 out of 100.  In short, a seller needs to stand out more than ever right now, when the buyer come around.  Unlike past markets, one buyer didn't matter so much, when others where right behind . . . but now . . . are they right behind or do you have to wait a month or two or more?!? 

Sharp pricing, effective marketing, and Realtors with experience will start making the major difference in selling homes now, so do your homework when choosing who works for you.  Life can be a lot simpler for those who choose wisely!!

Another day at the office where we are all in agreement that the market has changed, but is not all doom and gloom.  Yet, as Realtors, we know it is not what we could call up and coming.  Summer stats are down, way down in fact, but as professionals we know that in recent summers they where "way up"!  So, overall I would suggest the summer was our first return to a "normal seasonal adjustment", where people enjoyed holidays, hot summer days, and in general relaxed!  No push on buyers to buy, interest rates seemed steady, and house prices (in the media at least!) where on the edge of collapsing due to their imaginary "Bubble".  By the way, this is the same "Bubble" we have heard of for the past 7 years!!  As a buyer, it would appear the course of action would be to head to the beach and tan!  They can then buy in the fall when prices will be way down.

Fast forward to mid-Sept. and low and behold on the news we find they are now reporting the "Buyer's market" is coming to a close.  Seems product is down, good homes are hard to find and guess what? . . .prices are about to rise again!?!?!?  Where did this come from?  Hhhmmm, the same source as usual . . . your local t.v. and media outlets.  Again, it appears we have provided some data (from the local Real Estate Boards) and this is how they report it.  HONESTLY!!  Was it, or is it a "BUYERS" market?  Not based on what we have seen.  Granted, the market conditions are favorable in terms of supply and demand and interest rates, for the buyer.  But we have not had the situation where prices are falling and buyers are dictating terms and conditions outright.  We have been in a steady, balanced market with sales taking place over a longer time frame and in fact, paying higher prices than the previous year.  Right now, a lot of homes ARE over priced and will need to correct before selling.  It would appear we "peaked" in early July for the year with an average price increase of apprx. 6.4% since January, but that increase has fallen back now to apprx. 4.8%.  Not a collapse by any means. 

Realistically, sellers need to sharpen their pencils and realize "REAL" market value to sell.  Buyers are no dummies!  And yes, we will see a lot of homes come off the market that are too speculative in price.  Don't forget though, the "realativity" of a market will not go away . . . you get more, you pay more and vice versa.  The fact the market is still healthy makes it a great time to buy or sell, you just have to be realistic and maybe watch a little less news!

A couple of weeks past, we had the privilage of being interviewed and posted on the front page of the local newspaper!  Fantastic exposure but much to our horror, the headline "Buyers Disappearing!", with our smiling faces underneath it.  Ahhhhh!

We all know media likes to play up facts and comments in a way that "draws in" the public to viewing their publications, but sometimes the conclusions are not clearly defined, due to lack of showing the "whole" picture.  This headline was based on the facts of sales figures released by the Fraser Valley Board which stated that sales numbers of July ,09 compared to sales in July '10 had realized a drop of roughly 50%.  A huge number by any standard, but wait . . . why just these two months?  What is the drop rate from the start of the year? And really . . have Buyers stopped buying? or are they on holiday?

What is not stated (by most of the media) is that July '09 was a record year for sales in that month, never in the month of July had we seen this many sales.  Now, in contrast, this July ('10) has seen the fewest sales in 10 years.  This leaves a comparison of two of the widest points of the pendulam one could find, explaining the huge 50% drop!   What is not pointed out is the fact that last July '09, buyers where under pressure to act, due to rising interest rates.  July just happened to be the time period where a lot of buyers would see the loss of their guaranteed rate of apprx. 3.19%, jump to 4.15% (5 yr fixed term).  We had buyers pleading to complete quickly, just to ensure the guaranteed rate!  Now, jump ahead a year, buyers are not really under any economic pressure to buy, in fact the fixed rates have dropped again recently, we are having a rare sunny and hot summer, HST is now in play . . . we have returned to our normal Summer style market.  Traditionally, Summer is always slow for selling numbers, with the market (or Buyers starting to buy, so to say!) picking up again in the Fall. 

So, are Buyers disappearing?  Is the market crashing?  Simply stated "NO"!!  The Buyers are working on their "tans" and if you check the numbers closely you'll notice the average price has increased a modest 6% since year's start.  Not bad for a number that really does have some meaning on the bottom line. 

We are still working away (no tanning permitted here!!) so feel free to call us for a more realistic and optomistic view if selling your home!  The glass is still "HALF FULL"!!

Yes, HST has arrived and unlike the gov't claims of "easy transition", is already causing a deal of confusion.  In an attempt to mitigate mis-understanding of what has HST applicable, there have been a number of web sites put out explaining (in short) what has HST, including "increase" or "no change" comments.  For the most part, these do help understand what has the new tax on it, but in regards to Real Estate, they seemed to have "muddied" the water further.

On many of these sites, they indicate "Real Estate" with HST applicable indicated at only above $525,000.00.  In a sense this is true, but what many fail to understand is the HST is applicable only on new home purchases . . . regardless of price!  Why they state only above $525,000.00 is because there are also rebates on the HST, which up to the $525,000.00 price, will cancel out the HST paid.  This rebate is on a sliding scale up to the $525,000.00 and past this, is capped at a maximum rebate of $26,500.00, regardless of purchase price.  So in effect (or what is the intent) you really are only paying HST past the $525,000.00, it's just not a simple case of the HST not being applicable at all!

Will the HST stop you from purchasing a new home or just make you consider all options before taking the plunge?  We'd love to hear from you and see the difference of opinions. 

This isn't on our site yet, but a super buy to be had in Walnut Grove!  Two level home with 3 bdrms up, full basement, two car garage all on large, inside cul-de-sac loc of 6595 sq. ft. lot!  ASKING $463,900 but very open to offers.  Home does need some TLC, but last sale on street was $509K.  (Bank Ordered Sale).  Call us direct to view!

The local "MOPARS UNLIMITED" car club is having thier 19th. Annual "MOPAR MADNESS CAR SHOW 2010" at their new location at George Preston Recreation Centre (208th. & 42nd. Ave.).

Date: July 11th. 2010

More Details at www.moparsunlimited.net

Why not take a walk through your past and relive some of your youth!