Are Vancouverites looking to exit the market?

New listings for Greater Vancouver real estate made a sudden surge last month. According to the Real Estate Board of Greater Vancouver (REBGV) 4,848 new listings hit the market in January 2019, which is a 244.6% from December 2018.

Monthly increases in January are expected, but the numbers also show the number of new listings in January 2019 are up 27.7% from January 2018. People who wish to leave Vancouver and move to Victoria will find the continued difference in market prices very much in their favour.

References: Better Dwelling, REBGV

Canadian Consumer Debt

Canadian consumer debt is at an all-time high, but Canadians appear to be slowing down acquiring more, due in part to tighter mortgage lending rules.

Most of the debt was on mortgages, which printed a new record with outstanding mortgage debt reaching $1.546 trillion and consumer debt at $620 billion for a total of 2.16 trillion in December 2018 according to the Bank of Canada.

Speculation and Vacancy Tax Declarations: Mullin Demeo Wirk

Here is some information on the Speculation and Vacancy Tax from Mullin Demeo Wirk that I've reposted here with their permission. I trust you will find it useful.

MULLIN DEMEO WIRK ELECTRONIC LEGAL UPDATE

January 29, 2019 Speculation and Vacancy Tax Declarations:

Speculation and Vacancy Tax declaration letters are now being mailed out to owners of residential property in the taxable regions of British Columbia. And for this reason, it is very important that clients have previously made sure that the B.C. Assessment Authority has their correct names and addresses on record. Once your clients receive their letter, they can declare online or over the telephone and must complete the declaration to claim any relevant tax exemptions.

If your clients do not declare relevant and applicable exemptions by March 31, 2019, or fail to make a declaration at all by that time, then recent B.C. Government Bulletins indicate that non-declarants will be taxed at the highest maximum tax rate pursuant to the legislation.

The Speculation and Vacancy Tax website has recently been updated and includes some further information on the Tenancy Exemptions and Satellite Families.

Tenancy Exemptions:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals/tenancy-requirements

Satellite Families:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals/international-income

We note that there is a disclaimer that where information on the website and the legislation conflict, the legislation prevails, and your clients should be directed to their accountant or lawyer for appropriate advice.

If you have any questions on the above or other real estate related matters, please do not hesitate to contact our office at any time.

Yours truly, Mullin DeMeo Wirk

The content of this email is for information purposes only. It is not, and should not, be taken as legal advice. Never disregard professional legal advice, or delay in seeking it, because of something you have read in an email. We would be happy to discuss with you any specific legal concerns you have, and encourage you to contact our office. The content of this email is protected by copyright law, and, unless otherwise attributed, is owned by Mullin DeMeo Wirk. The content may be used for personal, non-commercial purposes, including the downloading and storage of information and making single copies, provided that all copyright notices are maintained. Any modification, transmission presentation, distribution, republication, or other exploitation of this content, in whole or in part, is prohibited without the express prior written consent of Mullin DeMeo Wirk.

Property Assessment Appeal Process by Mullin Demeo Wirk

I receive good information from Mullin Demeo Wirk, and the information below is about the Property Assessment Appeal reprinted with their permission.

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Hello and welcome to Mullin DeMeo Wirk’s Electronic Legal Update. We hope you will find this information interesting and helpful.

MULLIN DEMEO WIRK ELECTRONIC LEGAL UPDATE

January 22, 2019 Property Assessment Appeal Process:

If your client has received a property assessment that they would like to challenge, they should first contact their local BC Assessment office and discuss their concerns or questions with an appraiser.

If your client’s concerns are not satisfied, they may file a Notice of Complaint for a formal hearing with an independent Property Assessment Review Panel. The deadline for filing a Notice of Complaint is January 31, 2019.

If your client contests the Panel’s decision, they can file an appeal with the Property Assessment Appeal Board by April 30, 2019.

Following are links for useful information that your clients may need to challenge their property assessment:

Filing a Complaint with BC Assessment Online:

https://eforms.bcassessment.ca/online_appeal_form_PARP_2019.asp

Frequently Asked Questions:

https://www2.gov.bc.ca/gov/content/housing-tenancy/owning-a-home/property-assessment-review-panels2/property-assessment/frequently-asked-questions

Single Family Residential Guide:

http://www.assessmentappeal.bc.ca/other-guides-resources/help-your-with-appeal/single-family-residential-guide

If you have any questions on the above or other real estate related matters, please do not hesitate to contact our office at any time.

Yours truly, Mullin DeMeo Wirk

The content of this email is for information purposes only. It is not, and should not, be taken as legal advice. Never disregard professional legal advice, or delay in seeking it, because of something you have read in an email. We would be happy to discuss with you any specific legal concerns you have, and encourage you to contact our office. The content of this email is protected by copyright law, and, unless otherwise attributed, is owned by Mullin DeMeo Wirk. The content may be used for personal, non-commercial purposes, including the downloading and storage of information and making single copies, provided that all copyright notices are maintained. Any modification, transmission presentation, distribution, republication, or other exploitation of this content, in whole or in part, is prohibited without the express prior written consent of Mullin DeMeo Wirk.

Victoria Market

As expected, the number of properties sold has decreased, both due to the season and because sales in the market has been cooling. December 2017 saw 462 properties sold as compared to December 2018 with 375 sold. The December tally brought the total number of properties sold in Greater Victoria to 7,150 in 2018.

"All levels of government turned their focus to try to make housing more affordable and attainable across the property spectrum,” said the Victoria Real Estate Board President Kyle Kerr. Indeed, consumers lost 20 per cent of their purchasing power due to the federal government's change to mortgage lending qualification rules.

Meanwhile, municipal government has been leveraging and acquiring new land and creating partnerships with private and non-profit organizations to bring new affordable units to market. And the provincial government has committed to substantial investments into affordable housing.

The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core in December 2018 was $858,600 - a 3.2 per cent increase over December 2017, but lower than November's value of $865,200.

Interestingly, the MLS® HPI benchmark value for a condominium in the Victoria Core area, now at $502,400, is an increase of 8.2 per cent over December 2017, and a slight increase from November’s value of $500,00.

Last year, the hot real estate market and a shortage of supply drove up typical values by 15 to 35 per cent for condominiums and townhouses. This year, supply is less of a problem as more condominiums come on stream throughout the capital region amid a construction boom. Offsetting that, and perhaps pushing values upward, are the families and first-time home buyers who are now looking to condos and townhouses as a more affordable alternative to single-detached dwellings.

Whether you’re looking for a condo, townhouse or single-detached dwelling to call your own, I would enjoy working with you to help you find the best value for your budget.

Jane Logan

Who pays the Speculation Tax, and How Much?

“Only those who own multiple properties and leave them empty in major cities will be asked to contribute,” said Carol James. “People with cottages at the lake, or cabins, or the islands, will not pay this tax. People with second homes outside of high-cost urban areas will not pay the tax.”

The speculation tax, based on a percentage of property value and to be paid annually, applies to Metro Vancouver, the Capital Regional District (excluding the Gulf Islands and Juan de Fuca), Kelowna, West Kelowna, Nanaimo-Lantzville, Abbotsford, Chilliwack and Mission. Have a look at the map provided by the BC Government to see the areas that are impacted.

The highest rate of two per cent of assessed property value will apply to foreign owners. Canadians and permanent residents not living in B.C. will pay one per cent. British Columbians who are Canadians or permanent residents with second homes in major urban centres will pay 0.5 per cent.

Inventory Challenges for Buyers

Buyers still face a market with much less inventory available than the historical average. There were 2,646 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of September 2018. Even though that is a 33.9 per cent improvement over last September (2017), last year’s market inventory was exceptionally low.

Federal and provincial regulations applied to the housing market have certainly slowed down how quickly inventory is moving but it has had negligible impact on the prices of home and condo in Victoria. The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core in September 2018 was $883,700, a 6.2 per cent increase from 2017 when it was $832,000, and down slightly from August 2018 where it was $888,300.

How do you interpret this data if you are searching for a new home?

It can mean longer periods of searching for the right home if you’re looking for a single-family home at or below the Home Price Index benchmark value. Be prepared to make a competitive offer when you spot the house you desire. If you are searching for a 1.5-million-dollar home, the competition is far less fierce. These are general observations as each area is a real estate microcosm with its own market conditions.

"If you are considering buying or selling a home, you need to understand your local market, particularly in the context of your property type and price point," says Victoria Real Estate Board President Kyle Kerr. "Micro markets in our area behave very differently as they are influenced by different pressures.

I can help you establish the right mindset and stamina you will need in your search and advise you on the best strategies for success. I look forward to working with you!

Chart courtesy of Canadian Real Estate Association (CREA) http://creastats.crea.ca/vict