Why such a hot detached houseing market in Vancouver?
Just the other day I read and posted the latest real estate board market statistics for Vancouver. Take away all the numbers and percentages, what’s the report saying? The housing market has settled a little bit over last month but it’s still crazy out there. Why is this? Well, in my opinion there are a number of factors that play into this active home market and i’ll try to point out a few.
First, we’re seeing more sales of condos and homes because our housing market is more balanced. Let me explain. Besides a few months in 2008 when the world was coming to an end, it’s been a sellers market. Not enough supply of houses and buyers fighting for scraps. Now there’s more supply of residential detached homes and apartments for sale. Buyers have more choice, more to buy. All the construction over the years is finally catching up and filling the gap. Also, with the higher prices of detached houses more sellers are feeling comfortable putting there Westside and Eastside homes up for sale. People are feeling it’s a good time to sell if they must.
Lots of foreign buyers and investors looking to purchase homes in Canada. As Realtors selling in Vancouver we notice a surge of over-seas investors, especially from China. There’s no government policy to deter foreign investment in our real estate market, besides banks requiring a slightly higher down-payment on homes. In any case, most of these deals are mostly cash without mortgages. I believe we all know why people would be interested in our country. Fresh air, clean, safe, stable, good schools, beautiful….. Also, China has recently introduced some policies to cool there busy real estate market. They’re marking it much harder for their citizens to buy multiple properties. So, if you can’t buy at home, buy in Vancouver.
Thirdly, the general public still sees investing in real estate as a great option. Where else are you going to park your money. I think most have lost confidence in stocks and similar investments. Having a tangible, usable investment is easy to sell. Over the last decade buying real estate has produced results, simple as that. Money is still cheap and accessible. While people continue to favor real estate as an investment and have the ability to buy, they will.
To read the latest real estate board housing statistics for June please click here.
Vancouver housing market on fire
We’re now well into 2011 and the housing market is on fire. I just finished reading the statistics from the Real Estate Board in relation to house sales in Vancouver; this has been a record-breaking year. Based on the numbers, we’re going to be selling more houses this year than any other on record. So, why is there a frenzy to buy houses now?
About five years ago the condo market seemed unstoppable in Vancouver. With all the construction and new buildings, the city is now reaching a point of saturation. There are so many apartments hitting the market every year. Now it seems there are too many for the volume of buyers out there. I’m not saying this is a bad thing, for so many years we had a shortage and prices were going through the roof. Now it’s more balanced. Investors recognize there’s going to be slow growth in condo market in the coming years. Owning a house with land is another story.
Vancouver is a market fueled by foreign investment, mostly from Asia/China. From our experience as Vancouver Realtors, buyers from China are looking for real estate with land, mostly on the Westside. Our market is attractive as Canada and Vancouver have a lot to offer. A stable country, beautiful city, clean air, great schools, moderate climate, good food, easy travel access, safe neighborhoods and the list goes on.
The short story is, everyone wants to buy a house. Most homes placed on the market right now are snapped up quickly, sometimes in multiple offers over listing price. This in return is motivating other owners to sell when they see their neighbors cash out at attractive prices. Investors recognize the value of our Vancouver housing market. There’s no shortage of buyers in the house market.
If you’re searching for a house to buy on the Westside, try searching through our site. We provide the most complete list of houses for sale. As Vancouver’s top Realtors we’ve also been selling a lot of homes on the Eastside of Vancouver (Please visit www.EastVanHouses.com for East Vancouver Houses For Sale). Our resources for the neighborhoods East of Main St have recently been revamped to include an interactive map featuring predefined searches of homes in all East Vancouver communities.
Government will reduce the mortgage amortization period
The federal government announced this morning three changes to the rules for government-backed insured mortgages.
First, the government will reduce the maximum mortgage amortization period from 35 to 30 years. Second, the maximum amount of the value of a home that can be re-financed will drop from 90 per cent to 85 per cent. And finally, government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit.
“These are prudent measures that promote responsible lending practices and further strengthen our internationally recognized mortgage finance system,” Jake Moldowan, Board president said.
The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.
Here’s a great company when you need help organizing during a move.
Need help from a professional when moving? This girl takes her moving seriously, In The Box moving!
‘In The Box’ is a moving company who will help you organize and pack all your items before a move. They show up with all the supplies including boxes, bubble wrap, tape, labels and everything else. You become the contractor telling them what to pack and where it’s going to go in your new home. They will label everything making it easier on the other end unpacking.
Pricing, they charge per hour so it really depends on how large your home is and how much stuff you have. It usually costs about $600 to do a larger 2 bedroom condo or townhouse. If you want to have them pack and unpack it’s going to be closer to $1000. That includes all of the supplies and boxes. One of the convenient things is they provide re-usable plastic boxes so you’re not left with packaging at the end of the move. Plus, using the plastic ‘Frog boxes’, your items are protected and less garbage is going into the dumpster at the end of the move.
Their service area includes all of Greater Vancouver. We’re had a number of clients use their services and everyone has been extremely happy.
If you’re interested in selling or buying real estate in Vancouver, feel free to contact Jacob or Jacky to learn how they can help you with your next transaction!
Realtors using innovative ways to market real estate
Real estate marketing is always changing and Jacob and Jacky are constantly coming up with innovative ways to market homes. Through their strong internet presence Jacob and Jacky have been successful matching local and international buyers with homes in Vancouver. They’re also leaders in more conventional real estate marketing but wanted to do something different this summer.
Jacob and Jacky decided on a few marketing ideas and one of them is a balloon campaign. They wanted to do something fun and interesting, something the family could all enjoy. Jacky is a father himself and has always noticed how son enjoys helium balloons. This summer you’ll find them at a lot of events giving away free balloons. The two Realtors explain, “it’s something parents and kids appreciate. It’s a bit different from the regular real estate marketing most people are sick of receiving. Hopefully this gets noticed and gets the word out about our website (VancouverSpaces.com).”
Over the past number of weeks Jacob and Jacky have setup at Granville Island and the Celebration of Lights, working hard giving away balloons. If you haven’t already seen them this summer you’ll likely see them out so0n. Jacob and Jacky always welcome your thoughts or ideas on the their marketing so feel free to leave a comment.
Townhouse receives a facelift by renovating and staging
This townhouse was updated in about one week in preparation to be listed for sale. Jacob and Jacky managed the whole project and helped their clients with renovations and home staging.
As Vancouver Realtors Jacob and Jacky often assist home sellers prepare their home before putting it on the market. This latest project needed a lot of renovations. The baseboards and sections of the hardwood flooring was missing, walls needed painting, electrical work was needed and doors had to be replacing.
As full service Realtors Jacob and Jacky were able to manage the whole project from start to finish. They coordinated the handy-men, cleaning and staging company. When they were finished preparing the home it looking like a showroom suite….ok, maybe not quite but close to it! This was all done on a client budget of less than $2000.
Going through the process of repairs, de-cluttering, cleaning and staging will make your home more attractive to potential home buyers. Your home will look better in real estate videos and photos, increasing showings and traffic during open houses. Jacob and Jacky feel staged homes do sell faster and usually for a higher price.
Jacob explains, “this was definitely a success story as this particular townhouse sold quickly and close to what the owners were asking. We work with a lot of non-resident sellers who appreciate working with Realtors who are willing to manage a project in their absence.
If you’re interested in selling or buying real estate in Vancouver, feel free to contact Jacob or Jacky to learn how they can help you with your next transaction!
Real Estate Staging – Home and condo staging for sale
Over time we’ve been extremely successful selling real estate in Vancouver. Often we have other realtors ask us how we do it. I always say it’s being extremely organized, long hours, good marketing and presenting our properties properly. I have to say, one of the most important elements when selling houses and condos is to work with the owners to present their home in the best light possible. This includes repairing any damage, cleaning, landscaping and working with a professional home stager.
Using a real estate staging company makes our homes for sale look good in pictures and video. When buyers enter the home during a showing, right away they feel comfortable and picture themselves living there. A staging company will help plan the furniture in a room, art on the walls and match the colors. Often they can work with some of the existing furniture and add pieces from their inventory to improve the look of the space. Basically, a home stager will make a home stand out from the rest to get a home sold while maximizing the selling price.
For sellers who are deciding to stage or not to stage, just do it. As Vancouver Realtors we have an opportunity to market many homes, some prepared and some not. Properties that have been de-cluttered, cleaned and staged sell much faster and for more money. I’m talking about apartments and homes where there are no other negative determining factors. If you have an overpriced dilapidated house or a leaky condo, staging isn’t going to make miracles happen. If you have a nice home your selling and want buyers to add it to their shortlist – I couldn’t stress how important staging your home is before placing it on the market.
If you have questions about staging and interior decorating, feel free to contact us. We’re always happy to speak with clients about preparing their home for sale and introduce them to the staging companies we use on a regular basis. Most companies offer free consultations at your home.
Bank of Canada raise the interest rates
After more than a year at a record low level, Bank of Canada Governor Mark Carney raised the benchmark interest rate for the first time since 2007 by one-quarter percentage point to 0.5% this morning. Bank of Canada is the first in the Group of Seven to do so since the financial crisis and recession began in 2008.
In a statement Carney emphasized that the increase should not be interpreted as just the first of more to come.
“This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending and the uneven global recovery,” the central bank said. “Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.”
How will this affect the housing market and home sales? Well, this does mean the variable rate will increase slightly. Especially for investment properties, it’s often difficult to make the numbers work based on rent received and cost of purchasing. In most cases property investors want the rent to cover the mortgage payments, property tax and strata fees. Higher interest rates will increase the costs for investors and this will put downward pressure on prices or upward pressure on tenant tent.
For home buyers planning to purchase as their primary residence it’s the same story, increased costs of home ownership when borrowing money. If someone is already have a hard time affording to their monthly payments this will slightly increase their costs.
Stepping back and taking a hard look at the situation, we’ve been spoiled with record low interest rates. Over the last number of years and especially in the last year and a half. I think we shouldn’t be too surprised seeing the rates going up slightly.
Although the lenders have not announced it yet, they in all likelihood will soon be following suit in the coming days by increasing their Prime lending rate also by .25% to 2.5%. For those of you on a variable rate please be advised that this means that your interest rate will be increasing in the near future.
As residential Realtors, Jacob and Jacky are always there to answer your questions about the Vancouver housing market. Contact their team if you’re planning on buying or selling your home!
Interview with real estate lawyer | Vancouver BC
Jacob and Jacky interview Mark Braeder to learn more about the services he provides clients buying and selling real estate.
Mark talks about the process of transferring ownership of a property during a sale. He highlights some of the differences between a Notary Public and his real estate lawyer services. One of the important differences is a lawyer is able to help with any legal issues that may arise during a purchase or sale.
Jacob and Jacky have been working with Mark for a number of years and recommend him to their clients. Mark is friendly, knowledgeable and always makes time to talk with his clients. Mark also has very fair fees for transferring a property and is located in a convenient location in Fairview Slopes.
If you’re interested in selling or buying real estate in Vancouver, feel free to contact Jacob or Jacky to learn how they can help you with your next transaction!
Client Testimonials – Your experience working with Realtors Jacob & Jacky?
Clients who have bought or sold properties with Realtors Jacob & Jacky talk about their experience dealing with VancouverSpaces. – Video with client testimonials.
When buying or selling real estate you want to work with Realtors who not only know the product their selling but offer great service. Clients in this video talk about their experience dealing with VancouverSpaces.com.
Some of the comments throughout the video are Jacob and Jacky’s attention to detail, communication throughout the transaction, negotiation skills and competence. Whether you’re selling a multi-million dollar house, apartment or townhome, Jacob and Jacky provide clients with a customized marketing plan to highlight the best features of your home. Your property is showcased to thousands of buyers online through their strong internet presence.
When helping clients buy real estate Jacob and Jacky feel it’s important to understand what key features are important to their clients. This is achieved by getting to know their clients and what’s going to fit their lifestyle. Having a deep understanding of the product on the market allows Jacob and Jacky to provide valuable information about neighborhoods, schools, types of contraction and pricing. When it comes to placing an offer on a home you can feel comfortable you’re working with top Realtors who will negotiate the best terms and price for your house.
If you’re interested in selling or buying real estate in Vancouver, feel free to contact Jacob or Jacky to learn how they can help you with your next transaction!
