Real Estate Information

A strong international demand for bonds from Canada's biggest banks is trickling through the system and pushing mortgage rates to record lows at the consumer level. This is a result of a broader trend in which international bond investors are gobbling up Canadian offerings because they're generally perceived as being safer than bonds from other countries (Italy and eight other European countries saw their S&P credit ratings downgraded).

This has resulted in the lowest mortgage rate in Canadian history - the five year fixed rate is 2.99%.  This could be enough to entice new home buyers to enter the market and could also benefit existing owners who are looking to refinance their existing mortgage. 

Some economists have begun to question how long housing prices will continue to climb and predicted a plateau in housing sales and inventory. This will likely add a few more months to the spree of housing sales.

Consumers must keep in mind that these rates will be short term and prepare themselves for an future increase at the time they need to renew their mortgage.

Como Lake Gardens is a YWCA Metro Vancouver supportive housing development with construction due to complete in the next couple of months.  The YWCA will take possession the the building toward the end of March and families will begin moving in shortly thereafter.  The 4 storey building located at 528 Como Lake Avenue, which is designed to meet LEED gold standards and incorporates "green-friendly" standards, will contain 30 residential units. 

This is a housing project for single moms and their children and it already has a waiting list.  The rent is based on 30% of the mother's income and support will be available 4 days a week to help parents connect with YWCA services as well as daycare and education in the area. This project is made possible by the granting of a 60-year lease (for one dollar per year) by the City of Coquitlam, a mortgage provided by key project partner BC Housing and monies contributed by Generous YWCA donors.

Although housing starts in Canada rose almost 8% month over month in December, new home construction in BC urban centres fell 26% year over year in the same month. In our province, the 2011 story ended on a positive note with an overall increase of 3% to a total of 24,235 starts.

Major metropolitan areas in BC varied from city to city.  Vancouver finished 2011 up 17% (17,687 units) while Abbotsford new home construction was up only 3% for the year (543 units).  And Victoria finished the year down 22% from 2010.

For 2012, it is expected that housing starts will grow roughly in-line with new household formations at about 27,500 units. There will be a clear bias toward multi-family units and relatively weak new single family starts.

2011 began with varied demand in various regional hot-spots and concluded with greater balance between Seller supply and Buyer demand.  There were more than 32,000 sales on the mls system which is up 6% from recorded sales in 2010 but still down 6% from the 10 year average.

The total number of properties listed in 2011 was just short of 60,000 which is the second highest amount in the 10 year average.

Even though the market remained relatively balanced for most of the year, higher demand for detached properties in our larger communities caused prices in some areas to rise higher than others (double digit increases were realized in several communities - West and North Vancouver, Vancouver, Port Moody, Burnaby, Richmond and South Delta).  The benchmark price for all properties peaked in June at over 7% increase but has since come down about 1.5%.

In December the total number of sales was 1,658 which is down 12% from last December and 30% from November 2011(it should be noted that December is traditionally a quieter time in Real Estate).  Currently, there are over 11,000 properties for sale on our mls system.

We wish you a healthy, happy 2012.

If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (down payment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.

2. Relationships: Renters tend to see their neighbors come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbors stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.

4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the Strata allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a down payment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!

by Carla Hill

As you're sprucing up your home this season, keep an eye out for these common holiday trip-ups, fire hazards, and other safety snafus.

1. Merry and Bright: Carefully inspect holiday light strings each year and discard any with frayed cords, cracked lamp holders, or loose connections. When replacing bulbs, unplug the light string and be sure to match voltage and wattage to the original bulb.

2. Lights Out: Always turn off holiday lights when you leave the house unattended or when going to bed.

3. Fresh Is Best: Try to purchase a freshly cut tree, as they are more resistant to ignition. Keep your Christmas tree watered and away from open candles.

4. Timing Is Everything: Use an outdoor timer certified by CSA International to switch lights on and off. Lights should be turned on after 7 p.m. to avoid the electricity rush hour.

5. Check for the Certification Mark: When purchasing light strings, extension cords, spotlights, electrical decorations, gas appliances, or carbon monoxide alarms, look for the certification mark of an accredited certification organization such as CSA International, UL, or ELT to ensure that the products comply with applicable standards for safety and performance.

6. One and Done: Never connect more than one extension cord together; instead use a single cord that is long enough to reach the outlet without stretching, but not so long that it can get easily tangled.

7. The Great Outdoors: When hanging outdoor lights, keep electrical connectors off the ground and away from metal rain gutters. Use insulated tape or plastic clips instead of metal nails or tacks to hold them in place.

8. Climbing Up: Using a ladder when you put up lights? Choose the correct ladder for the job and double check for a certification mark to ensure your portable ladder complies with applicable standards.

9. Keep the Gas Behind Glass: Do not use your gas fireplace if the glass panel is removed, cracked, or broken, and only allow a qualified service person to replace fireplace parts.

10. Sound the Alarm: Test your smoke alarms monthly to make sure they work, and be sure to install smoke and carbon monoxide (CO) alarms on every level of your home -- especially near sleeping areas.

11. Filter-Friendly Furnace: To help prevent CO hazards in your home, have a qualified heating contractor perform a yearly maintenance check of your furnace and venting system, and clean or replace your furnace filter frequently during the heating seasons.

12. Clean the Clutter: Do not store combustible materials such as gasoline, propane, paper, chemicals, paint, rags, and cleaning products near your gas furnace. Gasoline or propane cylinders should be stored outside the home.

Source: CSA International

If you're wondering why your house has languished on the market for all these months, check out our tongue-in-cheek guide to common mistakes sellers make

1. Leave out your pictures, magazines, books, and knickknacks. You want a prospective buyer to feel that they know you, right?

Wrong. You want the buyers to immediately begin imagining themselves living in your house, and they'll have a hard time seeing beyond the pictures of your family at Beaver Creek and the old issues of Gun & Garden.

Even worse, they might find your taste in books laughable or your choice of evening wear tacky and decide they couldn't possibly live in your house.

So clear every surface, every side table, every coffee table, the sideboard, the desk and the dining room table. You can put one item in each room, and it should be a plant or flowers.

2. Don't change the cat litter. After all, you changed it yesterday, right? It doesn't smell that bad yet.

Or.....give your house the sniff test. It should smell fresh and clean. Nothing is more off-putting to a prospective buyer than a house that's stale-smelling, or worse.

Often, you become so inured to the smell of your own home that you don't notice scents that might offend a visitor. Empty the garbage cans, load dirty clothes into the washing machine, run a lemon through the disposal, give wood furniture a quick swipe with polish, and for goodness sake, change the litter box.

3. Express yourself! Indulge in your favorite colors in vividly painted walls and furniture. Paint an accent wall a bright color. It's fun!

Or...make your house a place anyone could imagine making their own. This means removing most evidence of your own personality. Decorate with a rigorous devotion to beige.

Neutral walls, pale furniture, soft lighting, and inoffensive art all go a long way towards creating a crowd-pleasing interior. Remove your collections to a safe place for the duration of the selling process, since you want a prospective buyer to look at the space, not get distracted by your Beanie Baby collection.

4. Stash your dirty magazines and movies in your oven or drawers! No one will open them to look inside.

Oh, yes they will. Get rid of everything you wouldn't want your mother to see. Prospective buyers will open the oven, investigate drawers for function and capacity, and study your closets and your medicine cabinet.

Lots of fun was had at our office with children decorating 'house' cookies with oodles of icing and candies.  We ran out of cookies early so next year we will know better.  Apologizes to those who couldn't participate.

Santa and his elves were there for photo ops and lots of candy canes.  The tree was lit (eventually) and it's beautiful.  Make sure you come down one evening to enjoy all the decorations.  There are lots of of fabulously decorated balconies as well.

Mark December 1, from 4:00 - 9:00  pm on your calendar to visit the Suterbrook Mall for loads and loads of fun and festivities.

Santa and his elves will be here. Children and adults alike can enjoy the:

Christmas Tree lighting,
Sleigh rides,
Crafts for kids,
Choirs and singing,
Snacks and drinks for all.

Drop by our office at 13-201 Morrissey Road and decorate a Christmas House cookie. 

It's on no matter what the weather is doing so we look forward to seeing you here! Suterbrook is located on the corner of Ioco Road and Murray Street (the Thrifty Market mall).