Connect with us

Headlines

Rising rates to dampen BC market

Editor

Published

on

[ad_1]

The British Columbia Real Estate Association (BCREA) recently forecasted a slowdown in home sales as the mortgage stress test and rising interest rates continue to hurt the BC housing market

In its 2018 Fourth Quarter Housing Forecast, BCREA stated that Multiple Listing Service (MLS) residential sales in the province are projected to drop 23% to 80,000 units this year compared to the 103,768 residential sales in 2017. Meanwhile, MLS residential sales in 2019 are expected to rise by 12% to 89,500. A closer look on the figures revealed that next year’s forecast is below the 10-year average for MLS residential sales of 84,800 units.

BCREA Chief Economist Cameron Muir pointed out that the anticipated downward shift was driven by increasing rates and stricter regulations. “The marked erosion of affordability and purchasing power caused by the mortgage stress test and rising interest rates continue to be a drag on the housing demand,” said Muir.

“However, continuing strong performance in the economy combined with favorable demographics is expected to push home sales above their 10-year average in 2019.”

Fortunately, the robust performance of the BC economy, with five consecutive years of above-trend growth and low rates of unemployment, continues to be highly supportive of housing demand.

Additionally, the report found that a combination of fewer home sales and a larger inventory allowed most markets to achieve balanced conditions. Home price growth is expected to closely reflect overall consumer price inflation over the coming year

The report also observed that a record number of homes are currently under construction in BC. This will provide for a much needed expansion of the housing stock and greater market stability.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate


[ad_2]

Source link

قالب وردپرس

Headlines

Victoria real estate agent disciplined for false advertising, encouraging cash deal to avoid taxes

Editor

Published

on

By

A Victoria real estate agent is facing $9,000 in fines and a 60-day licence suspension after breaking several professional rules during the sale of her father’s half-million-dollar property, according to a decision by the Real Estate Council of B.C. 

Whitney Garside’s missteps — outlined this week in a disciplinary decision posted on the council’s website — included falsely advertising the property as being almost twice its actual size and advising the buyer they could avoid the property transfer tax if they paid cash directly to the seller.

The property on Burnett Road in Victoria was being sold in 2016 by the real estate agent’s father. That relationship was disclosed and isn’t among the reasons she has been disciplined.

According to the disciplinary consent order, Garside told the buyer — whose name is redacted — that by paying $42,000 cash on the side, the value of the property could be reduced to avoid paying the property transfer tax.

That cash arrangement was not shared with Garside’s brokerage, Re/Max Camosun, a failure that contravened the Real Estate Services Act.

The council also ruled that she “failed to act honestly and with reasonable care and skill” when she advised the buyer the property transfer tax could be avoided by paying cash directly to the seller. 

The council’s discipline committee also found that Garside committed professional misconduct when she failed to recommend the seller and buyer seek independent legal advice, specifically regarding the property transfer tax and the cash agreement.

Another issue the council considered professional misconduct involved the size of the property in question.

The council ruled that Garside published false and misleading advertising and failed to act with reasonable care and skill when the property was advertised as 8,712 square feet, when in fact a portion of the lot belonged to the Ministry of Transportation, and the actual size was just 4,711 square feet.

The discipline committee ordered Garside’s licence be suspended for 60 days, which will be completed Jan. 3, 2021.

She has also been ordered to complete real estate ethics and remedial classes at her own expense.

Garside was also fined $7,500 as a disciplinary penalty and $1,500 in enforcement expenses.

She agreed to waive her right to appeal the council’s discipline committee’s decision in September.

Continue Reading

Headlines

Frisco apartment community sells to Canadian investor

Editor

Published

on

By

A Canada-based investor has purchased a Frisco apartment community as part of a larger Texas deal.

The 330-unit Satori Frisco apartments opened last year on Research Road in Frisco.

BSR Real Estate Investment Trust bought the four-story rental community that was built by Atlanta-based Davis Development.

Satori Frisco was more than 90% leased at the time of sale. The property includes a two-story fitness center, a car care center, a dog park and a resort-style swimming pool.

The Frisco property sold along with Houston’s Vale luxury apartments in a deal valued at $129 million.

“BSR recently exited the smaller Beaumont and Longview, Texas, markets and also sold noncore properties in other markets,” John Bailey, BSR’s chief executive officer, said in a statement. “We are now using our strong liquidity position to invest in Vale and Satori Frisco, modern communities in core growth markets with the amenities our residents desire.”

Continue Reading

Headlines

House prices on Prince Edward Island continue steady climb

Editor

Published

on

By

Residential real estate prices on Prince Edward Island continue to climb at a rate higher than the national average, according to the latest report from a national organization. 

The Canadian Real Estate Association released monthly figures for November 2020 on Tuesday.

They show that the average price for a resale home on P.E.I. is about 21 per cent higher than it was a year earlier. 

Only Quebec had a bigger year-over-year increase, at about 23 per cent. Overall across Canada, prices were up 13.8 per cent year over year in the ninth month of the COVID-19 pandemic.

“For the fifth straight month, year-over-year sales activity was up in almost all Canadian housing markets compared to the same month in 2019,” the report noted.

“Meanwhile, an ongoing shortage of supply of homes available for purchase across most of Ontario, Quebec and the Maritime provinces means sellers there hold the upper hand in sales negotiations.”

That lack of houses coming onto the market compared to the demand means that in those provinces, there is “increased competition among buyers for listings and … fertile ground for price gains.”

There have been anecdotal reports for months that Prince Edward Island’s low rate of COVID-19 infection and looser rules around social activities have been encouraging people to buy homes on the Island. 

Continue Reading

Chat

Trending