Finance Minister Announces HST Housing Transition Measures for BC - February 2012

Hi All,

Finance Minister, Kevin Falcon, has made public his transition arrangements regarding HST in BC today, so I thought you would like to see the details.

New Housing Transitional Rules

On Feburary 17th, 2012 the Government announced the transitional rules for returning to the PST. Below you will find information as well as the detailed tax information notice on these rules.

The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax. The transition rules provide certainty for new-home construction and sales, particularly during the transition period.



For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.

• Average amount of embedded sales tax in newly built homes under PST: two per cent.
• Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent.
• Tax rate on a newly built home during transition: two per cent.

For the rest of this article please click -: http://www.pstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculator

Kind Regards

Trish Cenci
Tel 250 864 1707
Email trishcenci@shaw.ca

BCREA Housing Market Update Q1 BC Housing Forecast Update (Feb 2012)

Hi All,

The BC Real Estate Association has now published their latest report on the BC Real Estate Market and also gives their views on the latest Forecasts for 2012 & 2013.



Kind Regards
Trish Cenci
Tel 250 864 1707
Email trishcenci@shaw.ca

BCREA Reports Home Sales Rise Outside Lower Mainland

Hi All,

Thought you would like to see that there is better news from BCREA today on housing sales for January 2012.

Vancouver, BC – February 15, 2012. The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC dipped 7.6 per cent to $2.1 billion in January compared to the same month last year. A total of 3,976 homes traded hands on the MLS® over the same period, down 3.9 per cent. The average MLS® residential price was 3.8 per cent lower at $527,219 compared to January 2011.

“Increased market activity outside the Lower Mainland in January was offset by fewer sales in Vancouver and the Fraser Valley,” said Cameron Muir, BCREA Chief Economist. MLS® Residential sales rose 7 per cent to 1,620 units outside the Lower Mainland, while declining 10 per cent to 2,356 units in Vancouver and the Fraser Valley.

“While provincial sales activity was down in January from year ago levels, consumer demand has posted modest improvement since last fall, driven by low mortgage interest rates and gradually improving economic conditions,” added Muir.

Kind Regards 

Trish Cenci 

Tel 250 864 1707 

Email trishcenci@shaw.ca

Where did the Kelowna Real Estate Buyers come from in December 2011?

Hi All,

The results of OMREB's December 2011 Buyers Survey are in.  

A total of 103 respondents participated in this survey – representing 48.6% of the 212 OMREB sales representatives who acted as Buyers Agents and 38.7% of the 266 deals closed on behalf of Buyers in December. 

DECEMBER 2011 SURVEY SUMMARY

Property Type:23.8% of purchases were by Move-Up Buyers
21.8% buying Revenue/Investment Property
19.8% by First Time Buyers
8.9% moving from Single Family Home to Strata Unit
7.9% Recreation Property Buyers
5.0% moving from Strata property to Single Family Home
3.0% moving into Retirement Home/Seniors Community

It is interesting to note that the number of revenue and investment property purchases improved significantly and rose to second on the list for December (from fourth) – pushing first-time buyers down to third place.   

Reported purchases of recreation properties saw a noticeable improvement as well.

Moving From:
68.9% from Within OMREB Board Area
12.6% from Alberta
8.6% from Lower Mainland/Vancouver Island
2.9% from Other Areas in BC
2.9% from Saskatchewan/Manitoba
2.9% from Outside Canada
1.0% from NWT/Yukon (third month reported)
0% from Eastern Canada/Maritimes

Kind Regards

Trish Cenci

Tel 250 864 1707

Email trishcenci@shaw.ca

BC Home Sales Increase Last Year reports BCREA

Hi All,

BCREA announced their latest report on BC Real Estate today.

Whilst the news was good for the province as a whole figures were slightly disappointing for the Okanagan Mainline area.

Vancouver, BC – January 13, 2012. The British Columbia Real Estate Association (BCREA)
reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC
climbed 14.3 per cent to $43.1 billion in 2011. A total of 76,817 homes were sold in BC in 2011,
up 2.9 per cent from 2010. The average annual MLS® residential price climbed 11.1 per cent to
$561,026 over the same period.

“Low mortgage interest rates and gradually
improving economic conditions contributed to a
moderate increase in consumer demand last year,”
said Cameron Muir, BCREA Chief Economist.
“BC home sales came in about on par with their 15-
year average, but fell well below their ten-year
average of over 88,000 units.”

Vancouver, the Fraser Valley and the North
experienced the largest percentage increase in unit
sales last year, while consumer demand edged
lower in Victoria and on Vancouver Island.
BC residential unit sales in December dipped 1.7 per cent to 4,186 units, while the average
MLS® residential price was 2.8 per cent lower than in December 2010.

To read the remaining details please go to
http://www.bcrea.bc.ca/docs/news-2012/2011-12.pdf


Kind Regards
Trish Cenci
Tel 250 864 1707
Email trishcenci@shaw.ca

Kelowna Real Estate - Don’t read too much into your Property Assessment value.

Hi All,

It's that time again when we receive our BC Property Assessments through the post.

For many people, particularly those who own property in Kelowna, as a second home, you will be anxiously looking at this report as an indication of the value of your property.

Before you get too concerned, it is important to know that there are many factors that affect your property value which will not be taken into account in making the Assessment.

This is particularly true if you have done extensive renovations, for example.

While Assessments in some areas of the City are fairly accurate, there are a number of areas where properties are either well undervalued or overvalued.

My suggestion is, that if you are really wanting to get some idea of the value of your property, give either myself or your own Real Estate Agent a call, as we are much closer to the latest market information.

For more details of the recent Assessments you may like to read the report in the CHBC News Article - see the link below.

http://www.chbcnews.ca/okanagan+real+estate+values+take+a+hit/6442553237/story.html

Kind Regards
Trish Cenci
Tel 250 864 1707
EMail trishcenci@shaw.ca

Kelowna Real Estate Update January 2012

Hi All,

First and foremost may I take this opportunity to wish everyone a Happy New Year!

If you were reading the news and following my blog throughout last year you will know that Kelowna Real Estate went through another tough year.

Sales numbers in 2011 were up on 2010, but it remained a Buyers Market, as can be seen in the chart below showing the Months of Inventory available.

The good news for Sellers is that these numbers are falling, and providing we doesn't see a big increase in new inventory during the spring, we should see things moving closer to a more balanced market.

Other points to note are that the number of days to sell a property in 2011 compared to 2010 did vary according to category -:

                                            2011          2010

Single Family                      90                80

Condos                                115              118

Townhomes                       108              100

Lots                                     189              236

There was a modest increase in the number of days to sell Single Family and Town Homes while the was a fall in time to sell Condos and a big improvement for Lots.

Central Okanagan Sales Numbers December 2011

Date	Total	S/Fm	Strata	Lots	Manuf
Dec-11*	171	110	52	6	3
Nov -11	255	145	89	9	12
Oct -11	265	147	87	12	19
Sep -11	289	158	105	11	15
Dec 10	157	93	46	10	8

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

As you can see from the table above, sales were well down in December compared to November, but up on the previous year. This is quite normal for the Central Okanagan.

My Kelowna Real Estate Forecast for 2012

For those of you who may have missed my Real Estate Forecast for 2012, I have attached a link to my article  http://www.trishcenci.blogspot.com/2011/12/kelowna-real-estate-forecast-for-2012.html

Please Help me with you Feedback!

I know that everyone has busy schedules , but I do want to ensure that I keep my blog posts relevant and informative.

Please would you just take a couple of minutes to e.mail me with you comments on my blog, whether it is just to say that you find it helpful, or whether there is something else you would like to see included? My e.mail address is trishcenci@shaw.ca

Thank you in advance, as this will be really helpful!

Kind Regards

Trish Cenci

Tel 250 864 1707

BCREA Housing Market Update & Mortgage Rate Forecast - December 2011

Hi All,

Here is the latest Market Update from the BC Real Estate Association and their Mortgage Forecast for 2012.




Kind Regards

Trish Cenci

Tel 250 864 1707

Kelowna Real Estate Forecast for 2012 - clues in the latest TD Bank Economic forecast?

Hi All,

For those of you who read my blog regularly, you will know that I am always trying to make sense of the economic headlines and relate them to the Kelowna Real Estate market.

I have just been reading the TD Bank's latest quarterly Economic Report. They are predicting that the European Financial crisis, is going to continue to have an effect on the Global Economy and will in turn have an impact on our own economic growth.

Highlights of the TD report 

•  Canadian economic momentum over the second half of 2011 has been better than expected, led by a rebound in exports. Economic growth is projected to be 2.4% for the year as a whole. 

• In 2012, an escalation of the European financial crisis and a deepening recession in the region will exert a significant drag on the global economy.  Canada will be negatively impacted through weaker commodity prices, confidence and export growth. Labour markets will also soften as a result. 

• Canadian economic activity is expected to improve in late 2012 and into 2013.  Still, high household and government debt, rising interest rates and slowing housing activity will limit the speed of Canadian real GDP growth. 

• Overall, since our last forecast in September, TD Economics has shaved 0.2 and 0.4 percentage points off its Canadian growth forecast for 2012 and 2013 respectively. We now expect real GDP growth of 1.7% in 2012 and 2.2% in 2013.  The limited change to the 2012 annual growth reflects the momentum heading into next year. 

To read the full report go to http://www.td.com/document/PDF/economics/qef/qefdec11_can.pdf

So how does that affect Kelowna Real Estate?

Slow economic growth in B.C. and low employment gains, particularly in full-time employment, in the Okanagan Valley, will impact consumer confidence.

As we have seen previously, this is bound to have effect in the numbers of people committing to make real estate purchases - particularly in the 'move up', recreational and investment area of the market.

Even though we are continuing to see low interest rates in the forecast, if consumers don't feel confident about their job security and incomes, they will be less likely to be spending.

I therefore continue to offer the view that house prices will remain flat during the first half of next year.

Economic forecasters are predicting things will improve towards the end of next year, and as they do, that is the time we should start to see modest home price rises in this area, providing we don't see a large influx of listings, which will keep us heavily in 'buyers market' territory.

As I said in my report at the beginning of this month, we have some really good things happening in the Valley - the Hospital expansion, growth in UBCO and Kelowna International Airport together with the retail expansion in West Kelowna. So despite all the doom and gloom, we do have reason for some optimism in this area.

With the World Economy being in such a fragile state, however, my predictions are written in sand, not in stone!!

Kind Regards

Trish Cenci

Tel 250 864 1707

Kelowna Real Estate - OMREB Buyers Survey Results - December 2011

The results of OMREB's November 2011 Buyers Survey are now posted! A total of 139 respondents participated in this survey – representing 43.4% of the 297 OMREB sales representatives who acted as Buyers Agents and 35.2% of the 395 deals closed on behalf of Buyers in November.

NOVEMBER SURVEY SUMMARY

Property Type:

22.1% of purchases were by Move-Up Buyers
22.1% by First Time Buyers
13.2% moving from Single Family Home to Strata Unit
6.6% buying Revenue/Investment Property
5.1% moving from Strata property to Single Family Home
3.7% moving into Retirement Home/Seniors Community
3.7% Recreation Property Buyers

Moving From:

58.7% from Within OMREB Board Area
4.3% from Other Areas in BC
14.5% from Alberta
12.3% from Lower Mainland/Vancouver Island
4.3% from Other Areas in BC
3.6% from Saskatchewan/Manitoba
3.6% from Outside Canada
2.2% from Eastern Canada/Maritimes
0.7% from NWT/Yukon (second month reported)

First Time Buyers and Move- Up Buyers continue to be the main players in the market, as they are still taking advantage of lower prices and lower interest rates.

Kind Regards

Trish Cenci

Tel 250 864 1707

Report on BC Real Estate Sales from BCREA December 2011

Dear All,

I was reading the latest Real Estate Report from the BC Real Estate Association today, and thought you would like to see the latest update.

Things are really close to where they were at this time last year.

Kind Regards

Trish Cenci

Cell 250 864 1707

Vancouver, BC – December 14, 2011.

The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province remained relatively unchanged in November compared to the same month last year. A total of 5,640 units were sold last month compared to 5,647 units in November 2010. The average MLS® residential price was up 1.1 per cent to $529,140 in November compared to the same month last year.

"BC home sales continued to gain ground in November,” said Cameron Muir, BCREA Chief Economist. “After waning during the first half of the year, consumer demand has steadily increased since the summer months, bringing home sales within seven units of the November 2010 level."

"Low mortgage interest rates remain a key driver in the housing market, helping to maintain affordability and purchasing power,” added Muir.

Year-to-date, BC residential sales dollar volume increased 15.5 per cent to $41 billion, compared to the same period last year. Residential unit sales increased 3.2 per cent to 72,632 units, while the average MLS® residential price rose 11.9 per cent to $563,991 over the same period.

Kelowna Real Estate Update December 2011

Hi All,

I can't believe it is December already!

If we look back on the year, it has been a tough year for many parts of the Kelowna Real Estate Market. In reviewing the residential real estate sales, there have been some great deals for Buyers.

The number one question to Real Estate Agents continues to be  'How is the Market' and 'What do you think is going to happen to home prices in Kelowna'?

In my 'quest' to find the answer, I have been looking to a number of different sources, such as CMHC, Stats Canada and the BC Real Estate Association.

Only last week I attended a talk by Paul Farbi, Market Analyst for CMHC, about the Real Estate Market in Kelowna.

As part of his presentation, he talked about the reasons why the investment and second home market has been declining - putting it down to slower economic growth which cooled demand, investors pulling back due to uncertainty in the markets and softening prices, financing became harder and stronger competition from cheaper homes in the U.S.

What is the immediate future for Kelowna Real Estate?

Regionally, we are seeing job numbers beginning to rebound, and economic growth is beginning to recover. We have a number of positives for this area in particular - the growth in UBCO, the expansion projects at Kelowna International Airport and Kelowna General Hospital, Residential Construction is now stronger and Best Buy have just opened their new 34,000 square foot store in Orchard Park Mall.

The Rental Market has also been hit over the last couple of years with vacancy rates, in 2011, being around the 6% mark, whereas it was 3.7% in the previous year. The good news is that rents are now beginning to stabilise, and hopefully this area of the market will continue its recovery.

All in all, the economic and employment growth tend to support housing demand for 2012, so I do agree with the view that prices will remain stable over the coming months with a modest increase later in 2012, as inventory continues to be absorbed.

Central Okanagan Real Estate Sales for November 2011

Date	Total	S/Fm	Strata	Lots	Manuf
Nov-11*	255	145	89	9	12
Oct -11	265	147	87	12	19
Sept -11	289	158	105	11	15
Aug -11	276	145	103	17	11
Nov 10	199	117	68	7	7

*Figures are as at close of business 3oth November 2011, and may be subject to slight change.

As you can see from the November sales figures, numbers have remained quite reasonable, given that things do traditionally slow down during the winter months, and much better than this time last year.


And Finally....


For those of you I may not see or speak to over the next few weeks, I would like to take this opportunity of to wish you a very Merry Christmas and a Prosperous New Year!

Kind Regards


Trish Cenci


Cell 250 864 1707