For the Market Update, this will be the last one in this format. Starting in February, expect a new Market Update that will incorporate more content in fewer words! One of the biggest pieces of feedback we’ve received about this piece is that we’ve tended to be a bit too verbose in our analysis of the market. We’ve therefore decided to use a combination of pictures and links in future additions to convey all of the valuable information you’ve come to expect, at a fraction of the text.
We’re always looking to improve though, so if you have any suggestions on things about the real estate market you’d like to know about on a monthly basis, please feel free to let us know.
On the market-front, below are the 3 most expensive homes and condos sold in BC in 2013. It is interesting to note that this is [...]
Midway through 2013, the BC luxury real estate market has rebounded from a sluggish 2012. After breaking all luxury records with 691 $3-million+ sales in 2011, the luxury market slowed to 439 $3-million+ sales in 2012. This year, that number is forecast to reach 588 sales, which represents over $2.8 billion in luxury real estate changing hands in 2013.
This compares to only 10 $3-million+ homes, with a total value of $39 million, that sold in 2000.
Much of the rebound can be attributed to the overall health of the housing market, says Macdonald Realty manager Matthew Lee. Says Lee, “Year-to-date, both in terms of gross sales and units sold, the Greater Vancouver housing market has seen an increase of 10% over 2012, so it’s no surprise that the luxury market has followed suit.”
Dan Scarrow, VP Strategy for Macdonald Realty, agrees. “The luxury market in Vancouver is more [...]
With the reintroduction of the GST/PST tax regime on April 1st, we have received some questions about how this will affect the real estate market. The short answer is: There will be a minimal effect; some people will win, while others will lose. However, we must break down its effects into 3 separate categories: New Construction, Resale, and Fees.
This category is the one that is likely to be most influenced by the change back from HST to GST. All new residential construction will be taxable at the 5% rate rather than the previous 12%. However, the government will also be eliminating the New Housing Rebate, and adding a 2% transitional tax (for a total 7% rate, down from 12%). With the lower tax burden, there should be a net savings for buyers of newly constructed real estate in B.C.
2012 was a transition year for real estate in many areas of the Province, as many hot markets cooled and took an inevitable ‘breather’ while others look poised to turn positive. The rapid run-up in prices in a core set of markets (Vancouver, Richmond, Burnaby, and West Vancouver) over the past few years has actually overshadowed the fact that many other areas of the province have experienced slow to average markets since 2008. Looking forward, it appears as though 2013 will see a continuation of 2012, with flatter market in some of the traditionally hotter areas and a stronger market in areas that have recently performed relatively poorly.
In December, Macdonald Realty surveyed its managers around the province to debrief the year that was, and forecast the year to come. As a comparison, last year’s forecast was a mixed bag, as our forecasts for prices were largely correct but our forecast for the number of [...]
All corners of the province have experienced unbelievably good weather through August and September, and it looks like the trend may be continuing into October.
For the real estate market, a relatively sluggish summer has given way to another fall market. Some areas are continuing to see softening prices and slower sales while others have seen a strong market. Remember, real estate is local. It’s hard to take national stats and make inferences about a neighbourhood.
For those of you thinking about selling, it is important to realize how vital the Art of Pricing is to the sale of your home.
All sellers want the highest price possible for their homes, but the strategies to get there are not always intuitive. In certain circumstances, pricing low can be more effective than pricing high, while in others, pricing above market value can be a winning strategy. In most cases, however, the [...]
Summer is traditionally a slower time for real estate and 2012 was no different. Lower sales activity had several prognosticators predicting that Canada’s housing market would see a correction; however, to date, prices have remained relatively stable in most jurisdictions. In fact, Vancouver’s seemingly inflated Westside saw its average price rise by 15% over August 2011 thanks to a relatively low sales volume and several significant transactions (this is why last month we talked about how misleading ‘average’ statistics can be).
But aside from internal market forces, it’s hard not to ignore how problems in the US and Europe and the resulting economic turmoil will influence our housing market. And while it’s true that consumer confidence plays a big role in the overall health of housing, it’s important to remember that Canada continues to look like an economic oasis in a desert of bad financial news.