September 3, 2013

Strong Home Sales Suggest a Stabilizing Market

NANAIMO, BC – Multiple Listing Service® (MLS®) sales summary data for August released by the Vancouver Island Real Estate Board (VIREB) shows housing sales activity across Vancouver Island was up 38 per cent compared to last year. The average price of a single family home sold within the VIREB region in August 2013 was $339,809, which is an increase of four per cent from the average sale price recorded in August 2012. There was a significant increase in unit sales for August 2013, where 391 units were recorded, in comparison to August 2012, when 283 single family homes sold. However, when looking at these same figures over a 12-month basis, units sold only grew by one per cent, while the average price actually dropped one per cent to $329,502.

In terms of unit sales year-over-year for the month of August, there continued to be a wide disparity among our different areas: Campbell River witnessed continued growth, reporting a 55% increase; Comox Valley unit sales were up 26%; Nanaimo sales spiked by 62%; Parksville/Qualicum sales rose by 14%; Cowichan Valley saw a 31% increase, and Port Alberni/West Coast experienced the largest growth, jumping 80% from last year.

“Although we have seen significant month-over-month increases in both unit sales and average pricing in most of our markets this month, when looking at these numbers on a longer term basis, we are still seeing a gradual upward trend indicative of a more balanced and stable market,” said VIREB president, Gary Gray. “We are encouraged that we have continued to experience slow and steady growth since the second quarter, and anticipate that consumer confidence will continue to increase leading into next year,” he stated.

At the end of August 2013 there were 2,805 single family homes available on the Multiple Listing Service® within VIREB’s coverage area, down from the 3,159 homes in the system at the end of August 2012. Additionally, the number of new listings for the month of August were down 25% from this time last year.

Cameron Muir, chief economist for the British Columbia Real Estate Association, felt that the 25% drop in new listings this month was not a concern, and suggested that it will lead to a more balanced market condition moving forward. “As sales activity and demand come up, it is anticipated that supply will rise to meet that demand,” he stated.

http://www.vireb.com/assets/uploads/08aug_13_sales_summary_news_release_6640.pdf

Harmonized Sales Tax—HST

$350,000     $42,000       (17,500)             $5,000             ($5,000)            ($6,300)     

                                         $525,000          $200,000,     $425,000           5 % of HST

· You set the pace

· Thinking out side of the box

· No Pressure

· Defining the “must haves & the want to haves”

· Negotiating the best price for you.

Selling Your Home:

· Free Home Evaluation

· Advice on Home Staging

· Professional Quality Photos

· Personal Contact, Accessibility & Accountability

· Customized Marketing Plan

Referral Appreciation Program

The average annual MLS® residential price in the province is expected to post a new record this year, rising 2 per cent to $463,200 and is forecast to climb an additional 4 per cent to $482,800 in 2010.

LD - Ladysmith:    Sales 12   Avg Sale Price   $285,098

CH - Chemainus:  Sales 3      Avg Sale Price   $314,667

CF - Crofton:           Sales 2     Avg Sale Price    $270,000

LC - Lake Cow:     Sales 2     Avg Sale Price    $297,500

DU - Duncan:        Sales 39   Avg Sale Price     $367,033

MI - Mill Bay:          Sales 3    Avg Sale Price     $551,667

SH - Shawnigan:  Sales 3    Avg Sale Price    $394,167

Cowichan Valley - October, 2009

Property Type

We all have questions about the new Harmonized Sales Tax (HST), so here’s the scoop & how it will effect you as a homebuyer.

If approved, the HST will become effective July 1st, 2010.  It is a combination of the 7% provincial sales tax (PST)  with the 5% federal goods  and services tax (GST).

As proposed, the HST will increase the cost of buying or selling all types of property and becomes essentially an additional tax on home ownership. REALTOR® commissions, appraisals and other services will be subject to a 12% HST, replacing the 5% GST now charged, and new homes will be subject to the full HST.

To offset the increase in costs, the BC Government plans to offer a partial rebate of the HST for new housing, intending that new homes up to $400,000 should bear no more tax than under the current PST system. Homes above $400,000 will receive a flat rebate of $20,000. New home sales over $400,000 will be dramatically impacted, as buyers will have to pay an additional seven per cent tax on amounts over $400,000.

The BCREA is recommending a number of changes be implemented to the HST before it comes  into effect.   Their  goal is to  alleviate  costs to the homebuyer.