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Buying a Home: What Expenses to Expect
Budgeting for a new home can be tricky. Not only are there mortgage installments and the down payment to consider, there are a host of other—sometimes unexpected— expenses to add to the equation. The last thing you want is to be caught financially unprepared, blindsided by taxes and other hidden costs on closing day.
As a general rule it is recommended to have approximately 2-5% of the purchase price set aside for home buying costs, in addition to your downpayment/deposit amount. If you are a first time home buyer there are some exemptions that you may qualify for to help alleviate this cost. Use the following list to determine which costs will apply to your situation prior to structuring your budget.
1. Purchase offer deposit
This is usually about 5% of the purchase amount and needs to be paid within 7-10 days of making an offer to purchase a home. So if you are buying a $500,000 home, you need to have $25,000 ready, via bank draft, once you sign to remove all your subject clauses on your offer to purchase. This 5% can consititue part of your larger downpayment for a home. At closing you can contribute the remainder of your downpayment to the sale. To buy a home you need a minimum of 5% downpayment, although 20% is recommended in order to save on CMHC insurance costs.
Please keep in mind that this 5% deposit amount is not part of the 2-5% that should be budgeted for closing costs. You will need to pay the minimun 5% deposit amount ON TOP of all your 2-5% closing costs, plus any additional down payment amount that you would like to put on the mortgage. See all seperate closing costs below:
2. Inspection by certified building inspector
Never buy without hiring a home inspector for an inspection! Depending on the size and type of the home, this can cost anywhere between $300 to $600.
3. Appraisal fee
Your lending institution may request an appraisal of the property. This is where your lender sends in a professional property appraiser to justify the amount of the mortgage loan that you are asking for. This appraisal cost is your responsibility. This can cost you anywhere from $150 to $250.
4. Survey certificate
If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey. A survey accurately depicts the location of the house and outer buildings in relation to the property lines. Your lender will require an up-to-date survey and if the Seller does not have one, you will have to pay to have one done. This can be approximately $150-$350. This does not apply to condominiums or townhomes.
5. 5% GST
This fee applies to newly built homes only, or existing homes that have recently undergone extensive renovations. If you are buying a previously owned home, this tax is not applicable to you.
6. Legal fees
A lawyer should be involved in every real estate transaction to review all paperwork. Experience and rates offered by lawyers range quite a bit, so shop around before you hire. Lawyers review the Offer to Purchase, search the title, draw up mortgage documents and tend to the closing details. The fee will be approximately $800-$1500. This amount varies between Provinces depending on the complexity of the sale and the type of property.
7. Homeowner’s insurance
Your home will serve as security against your loan for your financial institution. You will be required to buy insurance in an amount equal to or greater than the mortgage loan for detatched homes. If you are buying a condominium or townhouse, part of your strata fees goes towards building insurance. In this case you may just want to purhase content insurance to protect the contents of your home.
8. Property Tax Adjustment
Based on the "adjustment date", you may have to reimburse the Seller for his/her portion of the prepaid property taxes. For example, if the Seller has already paid an annual property tax amount of $2,000 for the year, you will need to reimburse the Seller from your adjustment date (usually the day you possess the home) until the end of the year. If you take possession in May, for example, this re-imbursement amount for annual taxes of $2,000 would be $1,333.
9. Mortgage Insurance
Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% — with interest rates comparable to those with a 20% down payment.
To obtain mortgage loan insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.
Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.
10. Property Transfer Tax
The difference between Property Tax and Property Transfer Tax is that PTT is a one-time provincial tax which comes into effect upon transfer of property and Property Tax is paid annually to the local taxation authorities. The amount of the Property Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value and 2% on the remaining fair market value.
For example, if the fair market value of the property is $200,000.00, the tax payable would be $2,000.00 ($1% of $200,000.00). If the fair market value of the property is $450,000.00, the tax payable would be $7,000.00 (1% on the first $200,000.00 = $2,000.00 and 2% on the remaining $250,000.00 = $5,000.00).
If you are a first time home buyer you may qualify for a full or partial exemption from this tax. Click here to view the exemption criteria: PTT Exemption Criteria
March 2015 Market Update
Home buyer and seller activity outpaces historical averages in February
Conditions within the Metro Vancouver* housing market continued to strengthen in February as home sale and listing totals came in well above the region’s ten-year average for the month.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,061 on the Multiple Listing Service® (MLS®) in February 2015. This represents a 21 per cent increase compared to the 2,530 sales recorded in February 2014, and a 60 per cent increase compared to the 1,913 sales in January 2015.
Last month’s sales were 20.2 per cent above the 10-year sales average for the month.
“It’s an active and competitive marketplace today. Buyers are motivated and homes that are priced competitively are selling at a brisk pace right now,” Ray Harris, REBGV president, said.
New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,425 in February. This represents a 15.4 per cent increase compared to the 4,700 new listings reported in February 2014.
Last month’s new listing count was 11.8 per cent higher than the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the REBGV MLS® is 11,898, an 11.3 per cent decline compared to February 2014 and a 10.1 per cent increase compared to January 2015.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $649,700. This represents a 6.4 per cent increase compared to February 2014.
The sales-to-active-listings ratio in February was 25.7 per cent. This is the highest that this ratio has been in Metro Vancouver since March 2011.
“We’re seeing more multiple offer situations and generally more traffic at open houses today,” Harris said. “In a market such as this, it’s important to do your homework and work with your local REALTOR® before embarking on your home buying and selling journey.”
Sales of detached properties in February 2015 reached 1,296, an increase of 25.6 per cent from the 1,032 detached sales recorded in February 2014, and an 84.1 per cent increase from the 704 units sold in February 2013. The benchmark price for a detached property in Metro Vancouver increased 9.7 per cent from February 2014 to $1,026,300.
Sales of apartment properties reached 1,244 in February 2015, an increase of 20.5 per cent compared to the 1,032 sales in February 2014, and an increase of 63.7 per cent compared to the 760 sales in February 2013. The benchmark price of an apartment property increased 3 per cent from February 2014 to $386,500.
Attached property sales in February 2015 totalled 521, an increase of 11.8 per cent compared to the 466 sales in February 2014, and a 56.5 per cent increase from the 333 attached properties sold in February 2013. The benchmark price of an attached unit increased 4.6 per cent between February 2014 and 2015 to $481,500.
*Editor’s Note: Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.
February 2015 Market Update
Home buyers remain active despite reduced selection
The first month of 2015 saw home sale activity above historical norms, while the number of homes listed for sale trended below typical levels.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,913 on the Multiple Listing Service® (MLS®) in January 2015. This represents an 8.7 per cent increase compared to the 1,760 sales recorded in January 2014, and a 9.6 per cent decline compared to the 2,116 sales in December 2014.
Last month’s sales were 14.9 per cent above the 10-year sales average for the month.
“While demand remains steady, we’re seeing fewer homes for sale at the moment,” Ray Harris, REBGV president, said. "This is creating greater competition amongst buyers, particularly in the detached home market. The number of detached homes listed for sale today is the second lowest we’ve seen in four years.”
New listings for detached, attached and apartment properties in Metro Vancouver(1) totalled 4,737 in January. This represents an 11.4 per cent decline compared to the 5,345 new listings reported in January 2014.
Last month’s new listing count was 1.2 per cent higher than the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the REBGV MLS® is 10,811, a 14.2 per cent decline compared to January 2014 and a 4.8 per cent increase compared to December 2014.
The MLS® Home Price Index(2) composite benchmark price for all residential properties in Metro Vancouver is currently $641,600. This represents a 5.5 per cent increase compared to January 2014.
With the sales-to-active-listings ratio at 17.7 per cent, the region remains in balanced market territory.
“The Bank of Canada’s recent announcement to lower its benchmark interest rate is an important one for home buyers, sellers and owners to note,” Harris said. “A reduced rate could allow you to pay down your mortgage a little faster, save some money on your monthly payments, or change the amount you qualify for. It’s important that you do your homework and understand how these announcements impact your situation.”
Sales of detached properties in January 2015 reached 781, an increase of 7.3 per cent from the 728 detached sales recorded in January 2014, and a 44.1 per cent increase from the 542 units sold in January 2013. The benchmark price for a detached property in Metro Vancouver increased 8.4 per cent from January 2014 to $1,010,000.
Sales of apartment properties reached 809 in January 2015, an increase of 7.4 per cent compared to the 753 sales in January 2014, and an increase of 40.5 per cent compared to the 576 sales in January 2013. The benchmark price of an apartment property increased 2.5 per cent from January 2014 to $382,800.
Attached property sales in January 2015 totalled 323, an increase of 15.8 per cent compared to the 279 sales in January 2014, and a 38.6 per cent increase from the 233 attached properties sold in January 2013. The benchmark price of an attached unit increased 4.3 per cent between January 2014 and 2015 to $479,600.
Download the complete stats package by clicking here.
Editor’s Notes:
1.) Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.
2.) The national MLS® Home Price Index (MLS® HPI) operations group underwent an annual review of the model in January. This led to the following changes:
• Neighbourhoods where home sales over the past three years totaled 12 or less have been removed from the model. Neighbourhoods where sales have increased to 20 or more over the past three years have been added. Historical MLS® HPI data has been recalculated to reflect these changes.
• The benchmark property descriptions have been updated to reflect current buying trends.
Background: MLS® HPI benchmark prices represent the value of a ‘typical’ property within a market. When the HPI was developed in 2011, a composite description was created for every neighbourhood and property type based on MLS® sales data for that specific area. What people typically purchase can change over time due to changes in affordability and buyer preferences. Therefore, it’s necessary for these descriptions to be occasionally updated.
The MLS® HPI methodology has been updated to reflect these changes and is available athttp://homepriceindex.ca/hpi_tool_en.html.
Annual Market Update for 2014
Home sale and listing activity reach historical norms in 2014
It was a typical year for the Metro Vancouver housing market in certain respects. The region’s home sale and listing totals for 2014 both rank fifth when compared against the past 10 years of activity, while home prices increased.
The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2014 reached 33,116, a 16.1 per cent increase from the 28,524 sales recorded in 2013, and a 32.3 per cent increase over the 25,032 residential sales in 2012.
The number of residential properties listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver increased 2.4 per cent in 2014 to 56,066 compared to the 54,742 properties listed in 2013. Looking back further, last year’s total represents a four per cent decline compared to the 58,379 residential properties listed for sale in 2012.
“While home buyer and seller activity created balanced market conditions within the region, we also experienced some upward pressure on home prices over the course of the year,” Ray Harris, REBGV president said.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver ends the year at $638,500. This represents a 5.8 per cent increase compared to December 2013.
“Detached homes continue to be the most sought after property type in our market,” Harris, said. “Detached homes in Metro Vancouver have increased 8.1 per cent in value over the last 12 months while townhome and condominium properties have increased 4.5 and 3.5 per cent over the same period.”
December summary
Residential property sales in Greater Vancouver totalled 2,116 in December 2014, an increase of 8.3 per cent from the 1,953 sales recorded in December 2013 and a 15.9 per cent decline compared to November 2014 when 2,516 home sales occurred.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,888 in December 2014. This represents a 1.7 per cent increase compared to the 1,856 units listed in December 2013 and a 37.4 per cent decline compared to November 2014 when 3,016 properties were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 10,320, a 10.7 per cent decline compared to December 2013 and a 17.8 per cent decrease compared to November 2014.
Sales of detached properties in December 2014 reached 833, an increase of 9.3 per cent from the 762 detached sales recorded in December 2013. The benchmark price for detached properties increased 8.1 per cent from December 2013 to $1,002,200.
Sales of apartment properties reached 912 in December 2014, an increase of 7.3 per cent compared to the 850 sales in December 2013.The benchmark price of an apartment property increased 3.5 per cent from December 2013 to $380,700.
Attached property sales in December 2014 totalled 371, an increase of 8.8 per cent compared to the 341 sales in December 2013. The benchmark price of an attached unit increased 4.5 per cent between December 2013 and 2014 to $476,800.
November 2014 Market Update
Metro Vancouver home sales remain strong
VANCOUVER, B.C. – December 2014 – Home buyers in Metro Vancouver remained active in November, a month that is traditionally a quieter time of year for real estate.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Metro Vancouver reached 2,516 on the Multiple Listing Service® (MLS®) in November 2014.
This represents an 8.4 per cent increase compared to the 2,321 sales in November 2013, and a 17.7 per cent decline compared to the 3,057 sales in October 2014.
Last month’s sales were 6.9 per cent above the 10-year sales average for November.
“It’s been a more active fall than we typically see in the Metro Vancouver housing market,” Ray Harris, REBGV president said. “Home prices across the region have experienced steady gains in 2014 of between three and seven per cent depending on property type.”
New listings for detached, attached and apartment properties in Metro Vancouver* totalled 3,016 in November. This represents a 7.1 per cent decrease compared to the 3,245 new listings in November 2013 and a 32.8 per cent decline from the 4,487 new listings in October.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 12,553, a 10.2 per cent decline compared to November 2013 and a 9.4 per cent decrease compared to October 2014.
“This is traditionally a low inventory time of year, so it’s a good time to list your home for sale if you want to face less competition in the marketplace,” Harris said.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $637,300. This represents a 5.7 cent increase compared to November 2013.
Sales of detached properties in November 2014 reached 1,012, an increase of 9.3 per cent from the 926 detached sales recorded in November 2013, and a 60.9 per cent increase from the 629 units sold in November 2012. The benchmark price for detached properties increased 7.9 per cent from November 2013 to $997,800.
Sales of apartment properties reached 1,052 in November 2014, an increase of 8.6 per cent compared to the 969 sales in November 2013, and a 40.3 per cent increase compared to the 750 sales in November 2012. The benchmark price of an apartment property increased 3.2 per cent from November 2013 to $379,500.
Attached property sales in November 2014 totalled 452, a 6.1 per cent increase compared to the 426 sales in November 2013, and a 47.2 per cent increase over the 307 attached properties sold in November 2012. The benchmark price of an attached unit increased 4.8 per cent between November 2013 and 2014 to $480,200.
CMHC Housing Outlook Conference: Steady as she goes for Greater Vancouver housing market
National, provincial and local economists from the Canada Mortgage and Housing Corporation (CMHC) agree: the real estate market in British Columbia, and specifically in the Lower Mainland, will remain strong and steady into 2016. That was the overall message at their Housing Outlook Conference, held in Vancouver on November 4.
Presenters cited several reasons for that housing market stability. Chief Economist Bob Dugan noted that Canada’s economy should continue to improve, which in turn will continue to attract immigrants and new residents to BC. He also noted that CMHC doesn’t expect any interest or mortgage rate increases until late in 2015.
Shifting demographics will also play a role in this stability moving forward. As the baby boomer generation continues to age, we’ll see more senior-led households and more single owners in the market. They’ll either be looking to age in place (creating more jobs for home renovations) or move to smaller townhomes or condos (keeping the detached resale stock buoyant while keeping the demand for new condos and townhomes high).
Total sales in the region are forecasted to reach 32,800 this year, then slip slightly to 32,250 sales in 2015 and to 31,600 in 2016.
Senior Market Analyst Robyn Adamache pointed out that while no definitive data exists on the influence of foreign buyers on our local market, trend data can be drawn from REBGV’s monthly poll to REALTORS® who complete a sale each month. Our data indicates that foreign buyers make up approximately three per cent of home sales in any given month.
Keynote speaker and REBGV member Bob Rennie weighed in on the affordability issue. When you factor out the top 20 per cent of sales, he said, average prices become much more reasonable. Using this method, the average price of a detached home drops from the one million dollar range to around $670,000, while condos drop from $470,000 to $316,000.
He also stressed the need to assess and review zoning policies to create more opportunities for density. Today’s buyers are attracted to ‘energy centres’ where amenities like shopping, transit and schools are easily accessible. Rennie pointed specifically to strong condo sales in areas like Metrotown and the forthcoming Marine Gateway project. Keeping this supply steady while an estimated 40,000 new residents move to BC each year is key to keeping affordability in check.
“Because without supply, there’s no cure for affordability,” said Rennie.
Home Selling Tip: Scents Matter
You don't notice it – but most buyers will.
Imagine you're viewing a potential new home. You walk in the front door and are instantly impressed. You explore the property room by room and like what you see.
Then there's something you notice that's not quite right. An odour. You realize that it's likely cat dander and, now that you've identified it, you smell it everywhere. Suddenly the home doesn't seem as attractive as it did just moments earlier.
The owner of the property is probably so used to the smell that he doesn't even notice it. Neither does anyone else in the household.
So, when marketing your home for sale, be scent sensitive. Think about the odours that you may have become used to but others are likely to notice. Even odours you think are pleasant, like the strong scent given off by some house plants, may not be pleasing to everyone.
An odour can easily distract a buyer from appreciating the good qualities of your property. Pay particular attention to garbage bins (which can smell even when empty), pets, kitty litter (even when fresh and unused), the kitchen (especially after cooking), perfumes, and closets.
The smell of cigarette smoke is particularly unpleasant to many people. Its odour can linger even on an outside deck or patio.
Bottom line? Don't assume buyers won't notice certain smells. They will.
Looking for more advice on selling your home quickly and for the best price? Call today.
October 2014 Market Update
Metro Vancouver October home sales up 15% from last year, 16.6% higher than 10 year average
Home sales in the Metro Vancouver* housing market continue to outpace long-term averages for this time of year.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,057 on the Multiple Listing Service® (MLS®) in October 2014. This represents a 14.9 per cent increase compared to the 2,661 sales in October 2013, and a 4.6 per cent increase over the 2,922 sales in September 2014.
Last month’s sales were 16.6 per cent above the 10-year sales average for October.
“We’ve seen strong and consistent demand from home buyers in Metro Vancouver throughout this year. This has led to steady increases in home prices of between four and eight per cent depending on the property,” said REBGV president Ray Harris.
New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,487 in October. This represents a four per cent increase compared to the 4,315 new listings in October 2013 and a 14.7 per cent decline from the 5,259 new listings in September.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,851, a 9.2 per cent decline compared to October 2013 and a 6.6 per cent decrease compared to September 2014.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $637,000. This represents a six per cent increase compared to October 2013.
“Detached homes continue to increase in price more than condominium and townhome properties. This is largely a function of supply and demand as the supply of condominium and townhome properties are more abundant than detached homes in our region,” Harris said.
Sales of detached properties in October 2014 reached 1,271, an increase of 19.1 per cent from the 1,067 detached sales recorded in October 2013, and a 60.9 per cent increase from the 790 units sold in October 2012. The benchmark price for detached properties increased 7.9 per cent from October 2013 to $995,100.
Ready to buy your 1st home? 5 ways you'll know...
Buying your first home takes stamina, desire and commitment not only to navigate the complicated and time-consuming purchase process, but also to learn the ropes of being a responsible homeowner.
Maybe you've dreamed about buying. Or perhaps you've researched for-sale homes online, tried to calculate how much you can afford to spend or peeked inside a few open houses.
But are you really ready, emotionally and financially, to step up your game and make your move? Here's a look at what mortgage and real estate pros know about who's good to go and who needs more time to prepare for homeownership -- five ways to know if you're ready to buy your first home.
Plan to stay
Buying a home might seem like a no-brainer if your mortgage payment would be less than the rent you're paying.
But that comparison doesn't account for other costs of homeownership, including down payment, mortgage-related fees and home maintenance and repair expenses, says Ed Conarchy, a mortgage loan originator for Cherry Creek Mortgage Co. in Gurnee, Ill.
With those factors considered, short-term homeownership rarely makes sense.
"When you buy a home, you should know you're going to stay for a minimum of five to seven years, and longer is better," Conarchy says. "If you try to do everything you need to do to make that house yours and then you turn around and sell it after three years, you're not going to break even and you're at risk of the market."
If your employment situation feels secure and you're prepared to stay in one place for a while, you might be ready to buy.
Get preapproved
Very few people have enough cash to buy their first home without a mortgage. Rather, most need financing to afford today's home prices.
Realtors know that all too well, which is why many won't spend much time with would-be buyers who haven't had a serious talk with a mortgage professional.
As Jay Dacey, a mortgage broker for Metropolitan Financial Mortgage Co. in Minneapolis, explains, "A good Realtor will ask you what your criteria are and set up a search through the MLS for you, but a good Realtor is also going to say, 'The next step is for you to contact a mortgage professional and make sure you'repreapproved.'"
The loan approval process is no different for first-timers than it is for experienced home purchasers, Dacey adds.
Ready, set, flexible
Timing is another crucial element in homebuyer readiness, says Amy Butterworth, an associate broker for Gibson Sotheby's International Realty in Boston.
A time frame that's too long doesn't make sense. But neither does a time frame that's too short. For example, if your lease doesn't expire for many months or you need to move within 30 days, buying a home might not be practical for you right now, Butterworth says.
The ideal situation is to be ready to buy and able to wait, especially if your housing market is a hotbed of multiple offers.
"There's no place in the market for a buyer who's hesitant and back on their toes," Butterworth says. "But they can't only be ready and raring to go because there will be disappointments -- that's just how the market is right now. You have to go into it with realistic expectations."
Save up
Saving a sizable nest egg is another important milestone for would-be homebuyers, says Ken Pozek, a Realtor for Keller Williams Realty in Northville, Mich.
That's because you'll need savings not only for your down payment, but also your emergency fund, moving expenses and home maintenance costs.
"A lot of people forget that there is a lot of maintenance with owning a home, especially if you've been used to renting. From a financial perspective, (it's important to) make sure that even if you're emotionally ready or excited to buy, that you have nest eggs set up as well," Pozek says.
Examples of home maintenance chores include mowing lawns; trimming trees and hedges; shoveling snow; exterminating termites, rats or other pests; clearing out rain gutters; cleaning major appliances; and washing windows, walls and doors.
Even if you do a lot of the work yourself, you'll still need to buy supplies and equipment.
Get real
First-time buyers often believe buying a home will be easy. Giving up that misconception and being realistic about the time, effort, money, stress and hassle involved is an important step toward being ready to move forward.
"Most first-timers think buying will be a perfect scenario where it all happens like it does on HGTV. They see three houses. They pick one, and it all works out beautifully," Pozek says. "That never happens, unfortunately."
Instead, prospective buyers who are successful understand that, as Pozek adds, they "might run into some bumps, but the end product is going to be a home they love."
Check out this rent vs. buy calculator to see if you are ready to buy:
https://www.rbcroyalbank.com/cgi-bin/mortgage/tools/rentvsbuy/calc.pl
September 2014 Market Update
Home sales activity picks up the pace in September
Home buyers were active in Metro Vancouver last month, with home sales well exceeding the 10-year average for September.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,922 on the Multiple Listing Service® (MLS®) in September 2014. This represents a 17.7 per cent increase compared to the 2,483 sales in September 2013, and a 5.4 per cent increase over the 2,771 sales in August 2014.
Last month’s sales were 16.1 per cent above the 10-year sales average for the month and rank as the third highest selling September over that period.
“September was an active period for our housing market when we compare it against typical activity for the month,” Ray Harris, REBGV president said.
New listings for detached, attached and apartment properties in Metro Vancouver* totalled 5,259 in September. This represents a 4.6 per cent increase compared to the 5,030 new listings in September 2013 and a 33.5 per cent increase from the 3,940 new listings in August. Last month’s new listing total was 0.4 per cent above the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,832, an 8 per cent decline compared to September 2013 and a 0.4 per cent increase compared to August 2014.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $633,500. This represents a 5.3 per cent increase compared to September 2013.
“Gains in home values are being led by the detached home market. Condominium and townhome properties are not experiencing the same pressure on prices at the moment,” Harris said. “Individual trends can vary depending on different factors in different areas, so it’s important to do your homework and work with your REALTOR® when you’re looking to determine the market value of a home.”
Sales of detached properties in September 2014 reached 1,270, an increase of 24.1 per cent from the 1,023 detached sales recorded in September 2013, and a 113.8 per cent increase from the 594 units sold in September 2012. The benchmark price for detached properties increased 7.3 per cent from September 2013 to $990,300.
Sales of apartment properties reached 1,188 in September 2014, an increase of 16.7 per cent compared to the 1,018 sales in September 2013, and a 75.7 per cent increase compared to the 676 sales in September 2012. The benchmark price of an apartment property increased 3.3 per cent from September 2013 to $378,700.
Attached property sales in September 2014 totalled 464, a 5 per cent increase compared to the 442 sales in September 2013, and an 88.6 per cent increase over the 246 attached properties sold in September 2012. The benchmark price of an attached unit increased 4.2 per cent between September 2013 and 2014 to $477,700.
* Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.
August 2014 Market Update
Home buyers continue to slightly outpace sellers, but not by much
The Greater Vancouver housing market continues to see slightly elevated demand from home buyers, steady levels of supply from home sellers and incremental gains in home values depending on the area and property type.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,061 on the Multiple Listing Service® (MLS®) in July 2014. This represents a 3.9 per cent increase compared to the 2,946 sales recorded in July 2013, and a 10.1 per cent decline compared to the 3,406 sales in June 2014.
"This is the fourth consecutive month that the Greater Vancouver market has exceeded 3,000 sales,” Darcy McLeod, REBGV president-elect said. “Prior to this, our market had not surpassed the 3,000 sale mark since June of 2011.”
Last month’s sales were 3.8 per cent above the 10-year sales average for July of 2,948.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver* is currently $628,600. This represents a 4.4 per cent increase compared to July 2013.
“Today’s activity continues to put Metro Vancouver in the upper reaches of a balanced real estate market,” McLeod said.
The sales-to-active-listings ratio currently sits at 19.6 per cent in Metro Vancouver. This ratio has ranged between 18 and 20 per cent over the last four months.
New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,925 in July. This represents a 1.5 per cent increase compared to the 4,854 new listings in July 2013 and a 7.8 per cent decline from the 5,339 new listings in June.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 15,617, a six per cent decline compared to July 2013 and a 2.5 per cent decrease compared to June 2014.
Sales of detached properties in July 2014 reached 1,322, an increase of 5.8 per cent from the 1,249 detached sales recorded in July 2013, and a 68 per cent increase from the 787 units sold in July 2012. The benchmark price for detached properties increased 6.5 per cent from July 2013 to $980,500.
Sales of apartment properties reached 1,212 in July 2014, an increase of 0.2 per cent compared to the 1,210 sales in July 2013, and a 30.7 per cent increase compared to the 927 sales in July 2012. The benchmark price of an apartment property increased 2.2 per cent from July 2013 to $376,500.
Attached property sales in July 2014 totalled 527, an 8.2 per cent increase compared to the 487 sales in July 2013, and a 37.2 per cent increase over the 384 attached properties sold in July 2012. The benchmark price of an attached unit increased 3.4 per cent between July 2013 and 2014 to $472,400.
Location
Macdonald Realty Westmar, 203-5188 Westminster Hwy
Richmond, BC, V7C 5S7