Report from CREA on Canadian Real Estate in October

Canadian homes sales held steady in October from the previous month after a string of monthly increases that began in March, the Canadian Real Estate Association (CREA) reported on Friday, November 15th.

The industry group said actual sales, not seasonally adjusted sales, rose 12.9% from a year earlier, while the group's Home Price Index was up 1.8% from October last year.

Read the full report: https://creastats.crea.ca/en-CA

Enjoy Bach

Bach’s melodies are still so culturally relevant that contemporary musicians have reused them several times throughout the centuries since his death. You can hear Bach references in pop music and jazz. There is something for anyone, and Bach’s work can be played on any instrument.

Enjoy some of the best of Bach by Victoria Chamber Orchestra Concert on Friday, November 22nd, from 7:30 - 9:30 PM at the First Metropolitan Church, and then on Sunday, November 24th, 2:30 PM at the Honeymoon Bay Community Hall.

Tickets for each event are $20 Adults; $15 Seniors (over 65) & Students; free admission for Music Students. Find out more details HERE: http://www.victoriachamberorchestra.org/2019-2020-concert-season.html

Greater Victoria Neighbourhoods – Malahat

When we hear about the Malahat, it usually evokes thoughts of the long drive over the mountain for which our vehicle must be fitted with winter or all-season tires this time of year. It’s not often considered as a place to live, and that’s a shame because it’s a beautiful area. The Malahat Area is nestled in a mature rain forest with steep cliffs and spectacular views of the Gulf Islands and the Saanich Peninsula.

The approximately 1,200 sq. km. Malahat & Area district is sub-divided into 5 neighbourhoods: Cobble Hill, Malahat Proper, Mill Bay, Shawnigan Lake and Sooke Lake. To the North is the community of Shawnigan Lake and Mill Bay. Beyond Mill Bay is the farming village of Cobble Hill. Much of the western portion is undeveloped.

Mill Bay, 41 km north of Victoria, features quiet waterfront streets and delightful views of the Gulf Islands. The serene parks and scenery are perfect for hiking, cycling and boating. As an alternative route, B.C. Ferries operates a regularly scheduled service from Brentwood Bay. If you haven’t tried it, do. It’s a relaxing alternative to driving over the summit.

Located on the eastern shore of the lake, Shawnigan Lake Village contains two small general stores, three restaurants, several beaches and various small businesses. It is well-known for arts and craft shows. An excellent museum is run by the Shawnigan Lake Historical Society.

Cobble Hill, surrounded by a picturesque landscape, is a creative community for painters, sculptors, potters and totem pole carvers. The warmer weather is ideal for wineries that have begun operating in the Cowichan Valley in the last few decades.

The Malahat features a diverse selection of homes for sale in a natural community setting away from the city, and while the drive may not appeal to you if your job is in Victoria proper, a growing number of employees, especially government employees, are enjoying the privilege of working at least part-time from home. (See B.C. government’s mandate for “flexible workplaces” https://www2.gov.bc.ca/gov/content/careers-myhr/all-employees/work-arrangements/flexible-workplaces.)

Schools include George Bonner Elementary, Frances Kelsey Secondary, Shawnigan Lake School and Brentwood College School.

Why Are Household Savings Important?

High savings rates are good for future growth, and long-term economic prosperity. Household savings can be used to finance capital investments. They also provide cushioning for an economic downturn, allowing for a more rapid recovery.

It can be tough to save money and budgeting is key. Here are a few apps and website reviewed by ratehub that could be helpful: https://www.ratehub.ca/blog/the-best-money-saving-apps-and-money-management-apps-in-canada

Canadian Households Owe Over $2.24 Trillion In Debt

Canadian households are still into debt, just not if it’s for anything other than a house. Bank of Canada (BoC) data shows household debt reached a new high in September. While mortgage debt is accelerating, other forms of consumer credit are decelerating. The balance of household debt reached $2.24 trillion in September, up $82.0 billion from last year. Most of the household debt is tied to mortgages representing $1.60 trillion of the September balance, up $63.8 billion from last year.

Canadians Are Saving Less Than 10 Years Ago

Canadian savings rates are dropping. the past 12 months, they managed to save $15.62 billion though, a decline of 29.52% from the same period a year before. Households spent $5.82 billion in savings in Q2 2019, The rate of savings fell to negative 1.9% in Q2 2019 when households spent $5.82 billion in savings.

It’s worth pointing out that this is the quarter where real estate sales were also the highest, so a good portion of that negative print is likely going into down payments.

Reference: https://betterdwelling.com/canadian-households-are-saving-a-quarter-of-what-americans-do

Federal Foreign Real Estate Speculator Tax

Prime Minister Justin Trudeau and his Liberals campaigned on taxing offshore buyers, and it’s expected the federal tax on foreign real estate speculators will be passed by Parliament.

Parliamentary Budget Office expects the tax to take in $217 million in revenue for the first year.
The one per cent tax would apply to all residential properties owned by non-Canadians, including corporations and trusts, but homes, condos and townhomes rented to tenants who are not immediate family members will be exempt.

The tax mimics what some provinces have already implemented. Our province implemented a 15% property transfer tax on foreign property buyers in downtown Vancouver in 2016, which the NDP increased to 20% and expanded to include more regions.

Reference: https://canoe.com/news/national/federal-foreign-real-estate-speculator-tax-expected-to-pass