Starting in January 2023, a new way to buy real estate will be mandator in BC. It involves a 3 day cooling off period. The recent trend to making an offer to buy residential real estate where there was no subject to financing is going to change. This will be the first of its kind in Canada and involves a 3 day cooling off period after the offer has been accepted so the buyer can back out of the deal.
Sounds simple, but wait there's more. There is a cancellation fee equal to $250 for every $1,000,000 of purchase price, so a $1M home would produce a cancellation fee of $2,500.
Once the offer is accepted the purchaser, would have 3 business days to do their due diligence such as home inspection, review of strata minutes, appraisal, financing, legal etc and if they are not happy they can cancel the deal subject to the penalty.
This is NOT what the provinces regulator not the BC Real Estate Association recommended in terms of steps to take to protect home buyers but it is what the government deemed most appropriate.
MORE GREAT NEWS FROM MORTGAGE BROKER CHAD DREYER
Hope you had a great weekend!
It looks like we may see some great upcoming changes to Insured mortgages in Canada!
There are plans to increase the maximum purchase price for insured mortgages (less than 20% down) mortgages from 1 million to 1.25 million which is great new for Markets like Vancouver where prices are hight and in situations where buyers may be able for a to qualify but could be short on downpayment needed for a purchase would have the option to look at an insured mortgage with a higher price point.
As this develops I will be sure to keep to keep you updated.
Bond yields have hit new highs that we have not seen since Feb 2020 and this is certainly going to put pressure on fixed rates to increase shortly, I have heard some lenders will be announcing rate increases overnight or over the coming days unless bond yields go back down shortly.
Given where bond yields are now, I suggest any clients you are currently working with who may not have a pre approval/rate hold currently that they do so ASAP!
Have a great week.
INTERESTING UPDATE FROM MORTGAGE BROKER CHAD DREYER ON PROMISES TO HELP HOME BUYERS.
Well as we all saw nothing much changed with last months Federal election, however the Liberals now have a fresh slate of policies for housing with hopes of sustainability and assisting first time buyers.
Here is a summary of their key housing promises:
The Liberals plan to build, preserve or repair 1.4 million new homes if the next 4 years, they plan to do so through the following initiatives:
- Housing accelerator fund
- Invest $4 billion in a housing accelerator fund to build 100,000 new middle-class homes by 2024/2025
- $2.7 billion for the National Housing Co-Investment Fund
- $600 million for office and retail space conversion to housing
- A temporary ban on foreign ownership
- Foreign citizens would be barred from purchasing Canadian housing for the next 2 years, unless its proven to be for future employment or immigration within the proceeding 2 years
- Anti-Flipping Tax
- Applicable to properties sold within 12 months of purchase
Mortgage Qualification Policies
- Changes to the First-Times Home Buyers Incentive
- Under the new plan participants could choose between the previous shared equity arrangement or now opt instead for a loan that is repayable only at time of sale
- Increase mortgage insurance eligibility cap to $1.25 million
- This is an increase from the current $1 million
- Reduce CMHC insurance premiums for new buyers by 25%
- Tax-Free Home Savings Account
- This allows Canadians under 40 to save up to $40,000 towards their first purchase, the money can withdrawn tax-free with no repayment requirement
- $1 billion for rent to own projects
- Multi-generational home renovations tax credit
- Provide a 15% tax credit of up to $50,000 for homeowners who add a secondary unit to their home for the use of immediate or extended family
- Double the First-Time Buyer Tax Credit from $10,000 from $5,000
There is definitely a lot of work here with everything the Liberals have proposed above and as we know by the time these come to law they could look much different that proposed above.
I will continue to monitor these and update you if any policy changes are announced.
If you have any questions please feel free to reach out!
- Prior to the 15% Tax in September 2016;
- These were our Langley SOLDS from May 1, 2016 to August 31, 2016
- Langley SOLDS 793 during this period.
- Langley City SOLDS 97 during this period.
- After 15% tax, from September 1, 2016 to December 31, 2016
- Huge Drop! ALMOST BY 1/2!
- Langley SOLDS 403 during this period.
- Langley City SOLDS 45 during this period.
- January 1, 2017 to February 15, 2017
- Langley SOLDS 91 during this time.
- Langley City SOLDS 15 during this time period
here is a quick market review and update for your reading pleasure.
MARKET REVIEW FOR 2016 & 2017
The Fraser Valley Real Estate Market experiences the strongest year in it's History with record breaking numbers in both MLS transactions and dollar volume.
The Board MLS Dept. processed 23, 974 Sales in 2016 which is 13.6% more than the 21,095 Sales in 2015 and broke the record set in 2005 for 21,282 Sales. The total dollar volume of the MLS Sales hit a record setting of $16.2 BILLION!!! which is $4 BILLION MORE than the previous set record in 2005.
Very interestingly, of the total transactions for the year, 5,369 were townhomes sold and 5,069 were apartments, the highest each category has reached in the Board's History! Detached House sales were 10,728 for the Fraser Valley.
For inventory, a total of 34, 748 New Listings were received by the MLS Dept. during 2016, the second highest in the Boards History and only 883 behind the 35,651 received in 2008.
In December the Board processed 966 Sales, which was down 37.4% compared to December 2015 but level with the 10 year average for the month. December's total inventory in the Fraser Valley is way down at only 3,930 Active listings, which is 29.8 % fewer than we had the previous month in November 2016 and 8 fewer that we had a year ago in December 2015. Prior to all of this, we normally carry around 10,000 listing for the Fraser Valley.
As 2016 came to an end, we now saw sales returning to more typical levels and LOW INVENTORY overall.
Now in 2017, with such low inventory, Great Interest Rates, New incentive for Government Help for 1St Buyers, Strong pricing and limited Selection.......Would be Sellers, are in a GREAT POSITION TO SELL before the rush of the Spring Market.
Currently in Walnut Grove, we only have 26 Detached homes available for sale as February 22, 2017.
Since November 1, 2016 to now, Jan 11, 2017 we have had 19 Solds for Detached homes in Walnut Grove.
- To compare to the height of the market, prior to the New 15% Foreign tax coming in beginning of September 2016 , see below;
- Prior to the 15% Tax, from May 1, 2016 to August 31, 2016 were the following;
- Langley SOLDS 793 during this period. Langley City SOLDS 97 during this period.
- After 15% tax, from September 1, 2016 to December 31, 2016 Huge Drop!
- Langley SOLDS 403 during this period. Langley City SOLDS 45 during this period.
- January 1, 2017 to February 15, 2017
- Langley SOLDS 91 during this time. Langley City SOLDS 15 during this time period
HISTORICAL LANGLEY DETACHED HOMES
BASED ON MEDIAN PRICING
- 2013 SALE PRICE $561,239 $226 a sq ft
- 2014 SALE PRICE $593,075 $236 a sq ft
- 2015 SALE PRICE $652,648 $259 a sq ft
- 2016 SALE PRICE $736,250
- 2017 Sale Price $799,000
As of January 2017, the Benchmark Price for a Detached home in
Fraser Valley is $856,300 & For Langley $866,500
• Single Family Detached: At $856,300, the Benchmark price for a single family detached home in the Fraser Valley did not change compared to December 2016, and increased 24.3 per cent compared to January 2016.
• Townhomes: At $420,400 the Benchmark price for a townhome in the Fraser Valley increased 0.9 per cent compared to December 2016, and increased 28.8 per cent compared to January 2016.
• Apartments: At $262,300, the Benchmark price for apartments/condos in the Fraser Valley increased 1.3 per cent compared to December 2016, and increased 27.6 per cent compared to January 2016.
If You are curious to the value of your home and would like a Free Market Evaluation........please give me call. I look forward to hearing from you. www.marleane.com
Wishing you all the best,
There is a reason I have spent 1/2 my life dedicated to My Real Estate Career and Homelife Benchmark. It was my Manager, Michael Dreyer who manages
both the Langley and Walnut Grove Real Estate Offices, that immediately sent out a challenge to all of the realtors in both offices, to donate money
to help the 80 suffering families. As usual we rose to the challenge, and were there once again to help the people/families in our community. These poor families had been displaced by this Massive & Tragic Fire on December 11, 2016. Most of them, leaving their burning homes with only the clothes on their backs. Langley Emergency Services only provide 3 nights of a Motel and then they are on their own. I am so proud of my company and my co-workers. $10,500.00 Dollars was collected and made payable to Westminister Savings Credit Union care of the Salvation Army - Gateway of Hope.