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This blog will explore upcoming changes to economy of real estate and present our readers with opportunities to Invest, Prosper and Advance.
Geared towards investors and prospective buyers, we hope to give you a better look at the Real Estate Market Opportunities in BC.
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| Winds of Change in BC: From Pricing to Interest Rates |
Friday, May 14, 2010 |
The latest from B.C. Real Estate Association shows that while real estate prices have increased during the month of April, Vancouver will experience a shift, or a levelling of market.
New homes will be heavily taxed through the newly introduced HST, but that is only pertaining to new developments, which still hold a lot of interest from buyers and investors. However, it is the rising interest rates that will actually impact the market, as growth of pricing is expected to stabilize and slow.
While this may sound like a great time to wait to buy, you might also be mistaken - BC Real Estate Association says that the major plummeting in prices has already occurred.
"Balanced markets are emerging in Victoria, Vancouver and the Fraser Valley. There's now little downward pressure on home prices in these areas," explains Cameron Muir, chief economist of BC Real Estate Association, who also adds that strong consumer demand will continue to push the market, anticipating a 10% growth by end of 2010.
Average home price has jumped by 17% since the beginning of the year to $$507,616 and over 26,000 properties were sold Jan through April 2010.
For investment advice, new opportunities and upcoming projects, CALL 604-518-7767 or email info@darinchamberlain.com
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posted by Irma Arkus at 10:30 am - 0 comments
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| HST: What Does That Mean For the Market? |
Wednesday, May 12, 2010 |
As anticipated, the HST is heating up an already steamy Vancouver real estate market, as buyers rush to purchase their new homes prior to the introduction of taxes that will hike up the costs.
While developers are trying to do everything possible, including trying to beat the rush and finish many of the units in construction prior to the HST July 1st deadline, many buyers are worried that the introduction of the new law, requiring 20% deposits from new buyers, once matched with new harmonized taxes, will hurt the thriving real estate market, as HST alone will add thousands of dollars to the real estate purchasing costs.
The new Harmonized Tax is anticipated to add 5% to purchases. While new homes buyers who are purchasing real estate valued up to $525,000 are said to be in line for a rebate program, anything valued above that would be experiencing a full tax.
That adds up. According to Vancouver Sun's Derrick Penner, for example, properties valued at $750,000 - $800,000 will be costing $35,000 - $40,000 in taxes alone. And the situation for Vancouver especially is even more complex as average house price is estimated at around $800,000. That leaves many tethering buyers out of the market.
This will lead many buyers to real estate opportunities that are tied to smaller purchases, such as mid-size condominiums and apartments, rather than towards single, detached homes. More importantly, during the small window of opportunity between now and July 1st, many will look forward to buy while allowing investors to decrease their excess inventory.
HST is already widely criticized and real estate market is just one aspect of the economy in BC that will feel the effect of the tax. What effects it will have is yet to be seen, but experts agree: increase in pricing in this already hot market will discourage certain buyers.
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posted by Irma Arkus at 11:41 am - 0 comments
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| Is Vancouver Real Estate Pricing Out Of Control? |
Tuesday, April 20, 2010 |
 Live here.
The recent "Crack Shack or Mansion" game in Vancouver has provoked a lot of conversations on whether Vancouver pricing is realistic, or has escaped our common realm. The game has outlined the very painful but real situation in Vancouver real estate market - prices have skyrocketted, and yet the sales have kept pace.
Economists and experts have been quite clear on the fact that Vancouver market is a rare beast as well as a unique opportunity. In the time of an economic crisis, when real estate prices have been plummeting everywhere, Vancouver has actually experienced growth and price increase.
North Vancouver had a benchmark price in March for a typical detached home at $927,122. Similarly, entry price point for West Vancouver is $1,440,747, and Vancouver’s West Side it spells more like $1,656,986, according to the latest figures from the Greater Vancouver Real Estate Board.
The reasons are multiple. Some say that Olympic fervor also opened up the market to speculation and drew in real estate investments, others say that Vancouver's real estate prices have only now caught up with world markets. While HST and new regulations regarding deposit requirements are expected to stabilize and even decrease pricing in some cases, Vancouver still represents a great potential for investment in real estate, due to the fact that geographically it cannot expand as other cities can, there is an anticipated scarcity of residential options.
Vancouver represents one of the best living environments with highest standards of living. Most who arrive to Vancouver agree that the city is remarkably beautiful, with its mild climate and intimate setting, nestled between the Rockies and the ocean.
The current real estate prices leave a lot to be desired. For one, an interest rates increase would translate into high risk for those struggling with current mortgage payments. Market also has to develop a way to integrate those who find themselves unable to access it at this moment. But it also offers plenty of opportunities for shrewd investors as well as those who see potential in smaller purchases, such as small to mid-size condominiums.
Vancouver real estate has something for everyone, it seems. |
posted by Irma Arkus at 11:36 am - 0 comments
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Vancouver Real Estate Investment Specialists & Marketing Strategists.
