Govt Confirms PST Exemption for BC Real Estate Commission & New Homes under Tax Rule Changes.

BC’s transition back to a Goods and Services Tax (GST)/Provincial Sales Tax (PST) system is expected to be complete by March 31, 2013. When that happens, real estate commissions and new home sales will once again be exempt from the 7% PST, modestly improving affordability.

BCREA received confirmation of these exemptions from Minister of Finance Kevin Falcon in early October. Every year, the all-party Select Standing Committee on Finance and Government Services of the Legislative Assembly of BC conducts a budget consultation around the province. In mid-October, BCREA made a presentation to the committee, urging the provincial government to ensure that transition rules are clear and straightforward.

The committee’s report quotes BCREA CEO Robert Laing in urging the government to reveal its transition plan quickly.

BCREA’s presentation also put forward recommendations to amend the structure of the Property Transfer Tax (PTT), which has remained the same since it was introduced in the late 1980s. BCREA believes that increasing the 1% PTT threshold to $525,000 (with 2% applying to the remainder of the selling price) and indexing that threshold annually would help restore tax fairness for BC homebuyers now and in the future.

Kind Regards

Trish Cenci

Tel 250 864 1707

Kelowna Real Estate - OMREB Buyers Survey Results October 2011

The results of OMREB's October 2011 Buyers Survey are now posted!

A total of 177 respondents participated in this survey – representing 57.8% of the 306 OMREB sales representatives who acted as Buyers Agents and 42.6% of the 415 deals closed on behalf of Buyers in October.

As you can see, move up buyers taking advantage of the 'Buyers Market' in the Kelowna area have continued to be the main purchasers, together with First Time Buyers.
 
OCTOBER SURVEY SUMMARY
Property Type:
21.9% of purchases were by Move-Up Buyers
19.5% by First Time Buyers
13.0% moving from Single Family Home to Strata Unit
12.4% buying Revenue/Investment Property
7.7% moving into Retirement Home/Seniors Community
6.5% Recreation Property Buyers
1.8% moving from Strata property to Single Family Home

Moving From:
46.0% from Within OMREB Board Area
15.3% from Other Areas in BC
14.2% from Alberta
13.6% from Lower Mainland/Vancouver Island
4.5% from Saskatchewan/Manitoba
3.4% from Eastern Canada/Maritimes
2.8% from Outside Canada
0.0% from NWT/Yukon (second month reported)

Kind Regards

Trish Cenci
Cell 250 864 1707

Quail Ridge Hotel Breaks Ground in Airport Buisness Park !

Hi All,

After many months of waiting I thought you would like to see that they have finally broken ground on the new Sheraton Four Points Hotel in Quail Ridge!

Kind Regards

Trish Cenci

Tel 250 864 1707

Kelowna Real Estate Housing Forecast for 2012 from BCREA

Hi All,

I am sure for many of you reading about Real Estate in the Kelowna area, your number one question is 'have we reached the bottom of the market and what is the forecast for 2012'.

In an attempt to help your with this, I have attached a copy of this months publication by the BC Real Estate Association, giving their thoughts.

BCREA Fourth Quarter Housing Forecast For the Central Okanagan November 2011

MLS® residential sales through the Okanagan Mainline Real Estate Board are estimated to edge down 1 per cent to 4,790 units this year.

While continuing low mortgage interest rates are underpinning the market by helping to maintain affordability and consumer purchasing power, slower economic and employment growth, consumer belt-tightening and more moderate net migration are providing some headwinds to housing demand.

In addition, many recreation and investment buyers are being diverted to the United States by relative bargains. Next year, we anticipate an improvement in consumer demand will be driven by stronger job growth locally and in Alberta, whose residents account for approximately 15 per cent of home sales in the Okanagan.

MLS® residential sales in 2012 are forecast to increase 5 per cent to 5,020 units.The average annual MLS® residential price is forecast to edge down 3 per cent to $382,000 this year, after increasing 4 per cent in 2009.

The inventory of active residential listings remains relatively high. This imbalance between supply and consumer demand is expected to keep home prices unchanged in 2012, albeit up 0.5 per cent to $384,000.

A significant accumulation of newly completed homes in the Kelowna market has hampered construction activity over the past two years. However, there are some nascent signs of recovery in the multi-family market, which have posted double-digit growth this year.

Nonetheless, total multi-family starts remain well below levels seen in years leading up to the 2009 recession. Single family starts, however, remain a source of weakness in the Kelowna construction market, down nearly 20 per cent year to-date. Overall, we expect total housing starts in Kelowna to decline 3 per cent this year, followed by slight pick-up in activity next year of 8 per cent.

To read the full report please view - http://www.bcrea.bc.ca/docs/economics-forecasts-and-presentations/housingforecast.pdf

“Copyright British Columbia Real Estate Association. Reprinted with permission.”

Kind Regards

Trish Cenci

Tel 250 864 1707

Better news for BC Real Estate as Home Sales Climb Higher Outside Vancouver - BCREA

Dear All,

I have been quite encouraged in the outlook for Real Estate in B.C. over the last week, having read the CMHC outlook last week and the BCREA report for  October 2011.

I have attached the details below.

Kind Regards

Trish Cenci

Tel 250 864 1707

Vancouver, BC – November 15, 2011.

The British Columbia Real Estate Association (BCREA)reports that Multiple Listing Service® (MLS®) residential unit sales in the province rose 6.5 per cent to 5,865 units in October compared to the same month last year.

The average MLS® residential price was up 2.6 per cent to $535,695 last month compared to October 2010.“BC home sales rose three per cent in October compared to September on a seasonally adjusted basis,” said Cameron Muir, BCREA Chief Economist.

“While consumer demand in Vancouver edged lower last month on a year-over year basis, strong increases were recorded in the Fraser Valley, Kamloops, Kootenay, the North and on Vancouver Island.”

“Total active residential listings in the province declined by 3,360 units in October from September. However, active listings were up 6.9 per cent from October 2010,” added Muir.

“Market conditions remained slightly in favour of home buyers last month.” Year-to-date, BC residential sales dollar volume increased 16.8 per cent to $38 billion, compared to the same period last year. Residential unit sales increased 3.5 per cent to 66,922 units, while the average MLS® residential price rose 12.9 per cent to $566,925 over the same period.

For the full report please view -:

http://www.bcrea.bc.ca/docs/news-2011/2011-10.pdf

Thinking of Buying an Investment Property & don't have 20% to put down?

Hi All,

I was reading an interesting article today from April Dunn, one of our local Mortgage Brokers here in Kelowna, and thought you might be interested in reading more.

Kind Regards

Trish Cenci

Tel 250 864 1707

See this Amp at http://amplify.com/u/a1i1c7

Have you thought about US Estate Tax when Buying a US Property?

Hi All,

For those of you considering buying a property in the US, I thought you would be interested to read this article on US Federal Estate Tax.

Kind Regards

Trish Cenci

Tel 250 864 1707

See this Amp at http://amplify.com/u/a1hmh6

Increasing International Student numbers for BC bound to have a positive effect on our Local Economy.

Hi All,

Here is a story that you may have missed this fall.

With the expansion of International Student numbers in BC, this is bound to have a positive impact on the Central Okanagan, as UBCO continues to grow.

Kind regards



Trish Cenci

Tel 250 864 1707

See this Amp at http://amplify.com/u/a1h4eg

Positive 2012 Forecast for Kelowna Real Estate - CMHC

Hi All,
I was reading the Fall 2011 Outlook from CMHC today and was very pleased to read their positive forecasts for the Kelowna Real Estate Market for 2012.

To read more please view http://www.cmhc-schl.gc.ca/odpub/esub/64359/64359_2011_B02.pdf

Kind Regards

Trish Cenci

Cell 250 864 1707

Kelowna Real Estate Update November 2011

Dear All,

As I look at the local real estate sales results for this month, they are showing their usual  Okanagan 'slow down' which we tend to see this time of year.

Interestingly, I have continued to be busy this month with a mix of local buyers and sellers, as well as other areas of the Province, looking at condos, town homes and single family in various sectors of the market.

Since the recent price reductions on our Court Ordered sales at the Brookstone Complex in Beaver Lake Road Winfield, I am also seeing increased activity, which continues to prove that price continues to be so important in the current 'buyers market'.

Looking at the level of inventory currently on the market, compared to sales, it is interesting to see that supply is down to between 10 and 13 months, depending on which area of the market you are looking at. This is much better news for Sellers, as we are getting nearer to a more balanced market.

Below are the figures from the Central Okanagan Real Estate Board as at the end of October.

Central Okanagan Real Estate Board Sales for October 2011

Date	Total	S/Fm	Strata	Lots	Manuf
Oct-11*	265	147	87	12	19
Sept -11	289	158	105	11	15
Aug -11	276	145	103	17	11
Jul -11	329	149	130	27	23
Oct 10	246	149	74	10	13

 *Figures are as at close of business 31st October 2011, and may be subject to slight change.

My forecast of the market in the coming months.

As we now head towards winter, we will probably continue to see sales numbers fall, in the Central Okanagan and I expect to see prices hold steady for the foreseeable future.A quieter market is perfectly normal in this area, as there is seasonality to the real estate market in this area.

We are seeing tough times continuing in many economies throughout the world. The Euro - Zone crisis and continuing problems in the US, while not having a major effect on our economy at the moment, may do so in the future.

The 'knock -on' effect  could be a fall in Canadian Consumer confidence, which is already fragile, and this may continue to affect Real Estate Investors willingness to invest in the market again during next year, which will keep demand down and prices fairly flat.

As ever, if you have any specific questions you would like me to answer, please do not hesitate to call or e.mail me.

Kind Regards

Trish Cenci

Tel 250 864 1707.