Wednesday, February 28, 2007
Royal Bank Latest Mortgage Rates
Tony Rossander Mortgage Specialist RBC Royal Bank 604 418 6252 Expert advice for your clients means the right mortgage for your clients! Variable rate up to prime -.85 6 mth. convertible at 5.39% 4 Years @ up to 1.30% off 5 Years @ 5.19% Ask about our 30, 35 & 40 year amortizationsSunday, February 25, 2007
What's ahead for the next two years in B.C.'s Real Estate Sector
Cameron Muir, Chief Economist, BC Real Estate Association Economy underpins marketThe BC economy will continue its strong pace into 2008. Employment growth will be bolstered by investment in non-residential construction, while increased purchases of machinery and equipment signals business confidence and future productivity gains. Consumer spending, underpinned by wage growth and low unemployment, is on track to equal last year's strong performance.
Interest rates are facing downward pressure, but expect both the Bank Rate and fixed mortgage rates to remain flat this year. Bond yields will edge up in 2008, impacting fixed mortgage rates, and further eroding housing affordability.
Home sales in BC are forecast to dip another two per cent in 2007. While the robust provincial economy continues to stimulate housing demand, affordability constraints will keep some would-be home buyers on the sidelines. As a result, home prices will rise more moderately this year, five-eight per cent on average, but still several times the rate of inflation.
Saturday, February 24, 2007
Is it better to rent or buy Real Estate in Canada?
Many people wonder which makes the best investment sense, buying a home and paying off a mortgage, or renting a home and investing the cost differential in the stock market.
For most people, especially city dwellers in Canada, the better route to wealth is buying a home, according to a study released this week by researchers at the University of British Columbia.
But in at least four cities renting isn't such an unprofitable choice, so long as 100 per cent of the cost difference is invested in high-performing stocks with a minimum of management fees, a team from the university's Sauder School of Business reported.
In best-case scenarios in a few Canadian cities, renters can actually outdo their owning counterparts in terms of wealth accumulation, so long as they remain highly focused, the researchers said.
There's no surprise in their finding that home purchasers in the booming markets of Toronto and Calgary get richer than renters, at least on paper.
But what may surprise some is that renters in Vancouver, which has the highest home prices in Canada, can hold their own financially if they invest their money wisely. So can renters in Ottawa and Winnipeg.
And investment-savvy renters in Edmonton, Halifax, Montreal and Regina can accumulate 20 per cent more wealth than home buyers in those cities, the study said.
The catch?
For renters to accumulate the same amount of wealth as owners, they must be extremely diligent savers, invest in a high-yield instrument, do so with minimal fees and have the good fortune to live in one of the cities where the right combination of low rents and/or low house price growth allows them to invest more in a relatively higher return asset, said Prof. Tsur Somerville, the study's lead author.
Even in the most optimal investment scenario, renters cannot match the wealth of owners in strong housing markets like Toronto and Calgary, the study said.
In Vancouver they can keep up, but must invest 100 per cent of what they save on a down payment, realtor fees, taxes and other ownership costs in the Toronto Stock Exchange and pay extremely low management fees.
The significant benefit of home ownership is that a mortgage effectively forces people to save and build equity, Prof. Somerville said.
The study looked at households in nine cities from 1979 through 2006. It used data on house prices, house rents, annual ownership and mortgage costs, interest rates and investment returns.
It also took into account the fact that selling a principal residence does not incur capital-gains taxes, while profiting from stock investments does.
Friday, February 23, 2007
Just Listed, Brand New Town Home off Vancouver's Commercial Drive
I will be hosting an open house Saturday February 24th and Sunday February 25th from 2:00 - 4:00pm for 1646 East Georgia Street. Vitals:2 Bedrooms, plus Den 2 full bathrooms 1104 square feet GST has been paid One secured underground parking stall $485,000 Pets allowed Rentals allowed Full 2-5-10 Year Warranty Minutes from downtown and walking distance to all the outstanding restaurants, funky cafes, exquisite patisseries and everything that makes the drive… 'The Drive'. Solid engineered wood floors throughout the main level are perfectly complimented by imported ceramic tile, large elegant gas fireplace, beautifully crafted granite countertops and stainless steel (gas) appliances. Roughed in central vacuum and security system, plenty of storage, wired for high speed internet and one secure underground parking space. Catch the next big Vancouver wave, head for the Drive! The next new hot spot in the Vancouver Real Estate Market.Wednesday, February 21, 2007
British Columbia Housing at a glance
During the last quarter of 2006, builders started construction on 8,708 homes in the province which is down 3.7 % from the final quarter of 2005. Unusually wintery weather held back some building activity during the quarter. For the year, British Columbia recorded 36,443 housing starts, a 5.1 % increase from 2005. Positive labour market developments continued to support demand for housing in both the resale and new home markets during the final quarter of 2006. The average level of employment was 0.7 % higher during the forth quarter compared to the third quarter. For the Year, B.C recorded a solid 3.1 % increase in employment, second only to Alberta in job creation. The province's relatively low unemployment rate and strong job performance is one factor attracting people to B.C. from other provinces in Canada, boosting housing market activity. Resale activity remains strong despite some moderation during the second half of 2006. The increased supply of existing homes available for sale partly offset demand in the resale housing market. At the end of 2006, most markets continued to record double digit year over year price gains despite the increased supply of listing and fewer resales. According to the Canadian Real Estate Association, the seasonally-adjusted BC average price was $407,726, a 15.8 percent increase from the final quarter of 2005. For 2007, expect to see moderation in resale activity, slower growth in existing home prices, and 34,700 housing starts.Wednesday, February 07, 2007
The New Year brings an increase in new and active listings in Vancouver Real Estate
The Real Estate Board of Greater Vancouver reports that total residential sales for detached, attached and apartment properties reached 1,806 units in January 2007, a decrease of 6.1 per cent when compared to the 1,924 units sold in January 2006 and an increase of 6.2 per cent when compared to the 1,700 sales in January 2005.
New listings for detached, attached and apartment properties increased by 17.2 per cent to 4,067 units compared to the 3,471 units listed in January 2006. The total number of active listings increased by 30.1 per cent to 9,312 units when compared to January 2006's 7,160 units.
"We're currently seeing double-digit increases in both our new and carried-over listings inventory, a continuation of a trend started last September," says REBGV president Rick Valouche. "This may be one of the factors currently relieving the pressure we saw on home prices throughout 2006, which are increasing at a slightly lower rate than they were a year ago at this time.
"We also saw the average days-on-market for residential homes increase to 58 days versus 49 days in January 2006. Clearly, buyers are realizing they have an increase in home selection and are taking more time when making a decision to buy. On the other hand, sellers are still seeing a significant return on their investment. These make for excellent market conditions throughout Greater Vancouver. To find the best value for your dollar, contact your local REALTOR®," advises Valouche.
According to Multiple Listings Service® (MLS®) data, sales of apartment properties decreased by 9.2 per cent to 770 sales in January 2007 compared to 848 sales in January 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $332,460, up 15.3 per cent from one year ago.
Sales of attached properties increased by 1.2 per cent in January 2007 to 341 sales, compared to 337 sales in January 2006. The benchmark price of an attached unit is $411,564, up 15.5 per cent from a year ago.
Sales of detached properties decreased by six per cent in January 2007 to 695 sales, compared to 739 sales in January 2006. The benchmark price of a detached unit is $641,596, up 9.9 per cent from last year.
