Archive for 2012
Government announces new HST/PST housing transitional rules
The government today announced the HST/PST transitional rules on new homes.
As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers include:
- The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.
- The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.
- Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.
- For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.
HST/PST transition rules will help ensure that whenever purchasers buy a new home they will all pay a consistent and equitable amount of tax, whether the home is built:
- entirely under the HST;
- entirely under the PST; or
- partly under HST and partly under the PST.
The temporary housing transition measures will be in place until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
For more information contact me or visit the BC Ministry of Finance at: www.pstinbc.ca
Source Real Estate Board of Greater Vancouver
The Home Owner Grant threshold keeps pace with assessments
To keep pace with rising property assessments, the BC government has raised the Home Owner Grant threshold to $1,285,000. The threshold is the maximum assessed value a property can reach to allow the property owner to claim the full Home Owner Grant.
BC Assessment estimates the value of all BC homes on July 1 each year. The Ministry of Finance reviews this data and adjusts the Home Owner Grant threshold to ensure at least 95.5% of eligible home owners receive the full amount. Owners of homes valued above the threshold may qualify for a partial grant.
The basic Home Owner Grant gives home owners:
- a maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts;
- an additional grant of $770 to rural home owners elsewhere in the province; and
- an additional grant of $275 to seniors aged 65+, those who are permanently disabled and war veterans of certain wars.
Basic grant for 2012 – the basic grant is reduced by $5 for each $1,000 of assessed value over $1,285,000, and is eliminated on homes assessed at $1,399,000 or more.
Additional grant for 2012 – the additional grant is reduced by $5 for each $1,000 of assessed value over $1,285,000, and is eliminated on homes assessed at $1,454,000 or more.
Canadian citizens and landed immigrants residing in their principle residence are eligible for the grant.
In November 2011, the government announced plans to create a further grant of up to $275 for low-income Canadian Forces veterans with more recent service in the event they do not already qualify as seniors or persons with disabilities. Details will be announced soon.
The BC Government also provides property tax deferment programs for qualifying property owners including seniors age 55+, persons with disabilities, and families with children. It is advisable for a home owner to seek appropriate financial advice prior to participating in a tax deferment program. For information on BC property tax deferment programs visit: www.sbr.gov.bc.ca
For information on the BC Home Owner Grant program visit: www.sbr.gov.bc.ca/hog
Selection broadens and demand eases to kick off 2012 in the Greater Vancouver housing market
Greater Vancouver home sellers were more active than buyers in January and overall home prices, according to the new MLS® Home Price Index (MLS® HPI), continued to experience more stability and less fluctuation compared to the beginning of 2011.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,577 on the Multiple Listing Service® (MLS®) in January 2012. This represents a 4.9 per cent decrease compared to the 1,658 sales recorded in December 2011, a decrease of 13.3 per cent compared to the 1,819 sales in January 2011 and an 18 per cent decline from the 1,923 home sales in January 2010.
January sales in Greater Vancouver were the second lowest January total in the region since 2002, though only 146 sales below the 10-year average.
We’re seeing trends emerge in our market that favour buyers, such as increased selection and more stability in pricing compared to this time last year. Last month’s activity tells us that competition amongst home buyers was reduced in January, which means that individuals looking to purchase a home had more time to do their homework, consult with their REALTOR®, and make a decision.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,756 in January. This represents a 19.9 per cent increase compared to the 4,801 new listings reported in January 2011, and a 253.3 per cent increase compared to the 1,629 new listings reported in December 2011.
Last month’s new listing count was the highest January total in Greater Vancouver since 1995.
The total number of properties currently listed for sale on the Greater Vancouver MLS® is 12,544, a 12.5 per cent increase compared to December 2011 and an increase of 20.2 per cent compared to January 2011.
New MLS® Home Price Index launches in Canada
Today marks the launch of the MLS® Home Price Index (MLS® HPI), the best and purest way of determining price trends in the housing market. The MLS® HPI was pioneered by six founding partners: the real estate boards of Calgary, Fraser Valley, Greater Montreal, Greater Vancouver, and Toronto and the Canadian Real Estate Association. The partners contracted with Altus Group to develop the MLS® HPI which measures home price trends in the five major markets serviced by those boards.
The new index replaces the MLSLink Housing Price Index, which had been used by Greater Vancouver and Fraser Valley REALTORS® since the mid 1990s. MLS® HPI statistics should not be compared with previous MLSLink HPI statistics.
The MLS® HPI is a national collaboration intended to give the public a more reliable and comprehensive tool to understand home price trends across the country.
The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $660,600, up 5.7 per cent compared to January 2011 and down 0.1 per cent compared to December 2011. The MLS® HPI also tracks home prices across the Lower Mainland.
The benchmark price for all residential properties in the Lower Mainland is $593,300, an increase of 5 per cent compared to January 2011.
Sales of detached properties on the MLS® in January 2012 reached 659, a decline of 16.9 per cent from the 793 detached sales recorded in January 2011, and a 6.5 per cent decrease from the 705 units sold in January 2010. The benchmark price for detached properties increased 11.3 per cent from January 2011 to $1,034,700.
Sales of apartment properties reached 657 in January 2012, a decline of 7.9 per cent compared to the 713 sales in January 2011, and a decrease of 26.3 per cent compared to the 891 sales in January 2010.The benchmark price of an apartment property increased 2.4 per cent from January 2011 to $371,500.
Attached property sales in January 2012 totalled 261, a decline of 16.6 per cent compared to the 313 sales in January 2011, and a 20.2 per cent decrease from the 327 attached properties sold in January 2010. The benchmark price of a townhome 3 unit declined 0.5 per cent between January 2011 and 2012 to $468,000
Source Real Estate Board of Greater Vancouver
Assessment notices – a wake-up call for property owners
Property owners throughout BC received their 2012 assessment notice the first week of January from BC Assessment.
This notice is BC Assessment’s (BCA) estimate of a property’s value as of July 1, 2011, and for new construction or substantially renovated homes, the physical condition as of October 31, 2011.
BCA is the government agency responsible for determining and reporting property value estimates for the 1,917,394 properties in its database, a 0.75% increase in the number of properties since 2011.
BC Assessment and a REALTOR® assessment. Why the difference?
BCA’s assessment and the market value determined by a REALTOR® may be different. Why?
Both BCA assessors and REALTORS® calculate market value by analyzing sales of comparable homes within a local market, and look at factors that affect value such as size of home, view, location – on a busy or quiet street, number of bedrooms, construction quality, floor level, and garage or parking stalls.
Where every lot and every home on a street are typically the same, both BCA’s value and a REALTOR’s® value will be similar during stable market conditions.
Differences occur in neighbourhoods where lots have been rezoned or are different shapes and sizes, where architecture and views are unique, and where owners have made changes that BCA hasn’t yet taken into account.
Differences also occur during market instability when prices rise or fall during the six-month period between July 1 and January 1 the following year.
Wake-up call – how to appeal an assessment
Since July 1, 2011 home owners may have seen prices stalling in some neighbourhoods and rising in others. Assessments may reflect these changes.
The deadline to appeal is January 31, 2012
Property owners who disagree with their assessment should do their homework by visiting www.bcassessment.ca and then e-valueBC to compare their assessment with those of their neighbours. Each year, about 1.6% of all BC property owners appeal their assessment.
Property owners should first contact their local assessment office and talk to staff who can make adjustments if there is an obvious error, for example if BCA includes a new swimming pool, when, in fact, the pool is a shallow fish pond.
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Area assessors’ phone numbers:
Property owners who decide to appeal must file a written request by January 31, 2012. For information, visit www.bcassessment.ca and select Learn more about the Notice of Complaint (Appeal) process and the Property Assessment Review Panel.
What can an appeal mean for a property owner?
While BCA determines the assessed value of property tax for tax purposes, it’s the local taxing authorities – both provincial and local governments – which set tax rates each spring according budget requirements.
The formula for calculating taxes on property is:
Tax Rate x Assessed Value / 1,000
If the tax rate is 4.000 and the property assessment is $1 million, then the taxes payable are $4,000.
No notice
Property owners who haven’t received an assessment notice by mid-January should contact the area phone numbers listed above or request their tax notice online at www.bcassessment.ca. (See Receive your assessment notice online – right hand side).
If a property owner has concerns about their local taxes, they should contact their local government office. Taxes aren’t appealable.
New feature – save assessment data
Visit www.bcassessment.ca and select e-valueBC to view and compare the assessed value of any BC property. A new feature this year lets you download and save assessment data as a PDF or an Excel file.
Source: Real Estate Board of Greater Vancouver
What is the Property Transfer Tax?
How does the First Time Home Buyers’ Exemption wok? The Property Transfer Tax (PTT) is a tax of 1% on the first $200,000 and 2% of the remaining value of the purchase price, when the transaction is registered at a Land Title Office.
Qualifying first time buyers may be exempt from the PTT if they meet the First Time Home Buyers’ Program requirements. The buyers must:
- Be a Canadian citizen or permanent resident;
- Have lived in BC for 12 consecutive months before the date of registration, or have filed two income tax returns as a BC resident within the last six years;
- Never owned an interest in a principal residence anywhere in the world at any time; and
- Not have previously obtained a First Time Home Buyers’ Exemption.
In addition:
- The maximum purchase price of the home is $425,000. There is a proportional exemption for homes priced up to $450,000.
- The land may be a maximum of 0.5 hectares or 1.24 acres.
- The mortgage term taken must be at least one year. If the term is less than one year, a rebate may be applied for after the qualifying individual has resided at the residence for 12 months.
- The mortgage financing must be 70% or greater of the purchase price (mortgage financing cannot be from family members).
- The property must be owner-occupied (no rentals or investment properties).
- If the home exists, the buyers must move into it within 92 days. If it is vacant land, the buyer must build and move into the new home within one year.
Please note: You cannot re-qualify as a first time home buyer. This rule may be different from federal programs for first time home buyers (e.g., the Canada Revenue Agency Home Buyers’ Plan).
Source Real Estate Board of Greater Vancouver
Richmond Outlook
Sustainable development coming to Richmond
Richmond Municipal Update
By 2041, the population in the City of Richmond will double to 280,000 residents and the number of jobs will increase to 180,000. To accommodate newcomers, Richmond will need 46,271 new homes including 26,494 apartments and 19,777 ground oriented units.
Where will those homes be located?
For the past 18 months, the city has been gathering community input through public consultation for the 2041 Update to the Official Community Plan (OCP) which will guide Richmond’s future to 2041, said municipal experts speaking to 200 REALTORS ® who attended Richmond City Hall 2011, a presentation sponsored by the Richmond/South Delta/Gulf Islands Division.
In Keeping with Richmond’s proposed updated OCP and with community input, development will need to be “sustainable, which means it must meet the needs of the present without compromising the ability of future generations to meet their own needs,” according to Richmond planner June Christy.
This could be challenging given that Richmond’s land area is just 31,885 acres and of this, 38% is in the Agricultural Land Reserve, a situation that is unlikely to change given the City’s need for food production.
New development must therefore occur on the remaining 62%, the “urban footprint.” The solution is transit-oriented density.
New development will be focused:
- In the city centre near Canada Line stations (Bridgeport, Capston and Lansdowne) which will see new high density mixed uses, and
- In eight existing neighborhood centres which will see new-mixed and walkable communities with a range of housing types such as townhouses, duplexes, triplexes and fourplexes.
The eight existing neighbourhood centres being considered are: Ironwood, Broadmoor, Garden City, Blundell, Cambie, Hamilton, Seafair and Terra Nova.
All new development will be connected to transportation and accessible to parks, greenspace, businesses, recreation and shopping – in walkable, vibrant, appealing neighborhoods.
Source Real Estate Board of Greater Vancouver
Balanced real estate market prevailed through much of 2011
The 2011 Greater Vancouver housing market began with heightened demand in regional hot spots and concluded with greater balance between seller supply and buyer demand.
The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2011 reached 32,390, a 5.9 per cent increase from the 30,595 sales recorded in 2010, and a 9.2 per cent decrease from the 35,669 residential sales in 2009. Last year’s home sale total was 6.3 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region.
The number of residential properties listed for sale on the MLS® in Greater Vancouver increased 2.7 per cent in 2011 to 59,549 compared to the 58,009 properties listed in 2010. Looking back further, last year’s total represents a 12.8 per cent increase compared to the 52,869 residential properties listed in 2009. Last year’s listing total was 11.1 per cent above the ten year average for annual Multiple Listing Service® (MLS®) property listings in the region.
It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below.
Residential property sales in Greater Vancouver totalled 1,658 in December 2011, a decrease of 12.7 per cent from the 1,899 sales recorded in December 2010 and a 29.7 per cent decline compared to November 2011 when 2,360 home sales occurred.
More broadly, last month’s residential sales represent a 34.1 per cent decrease over the 2,515 residential sales in December 2009, a 79.4 per cent increase compared to December 2008’s 924 sales, and a 12.6 per cent decrease compared to the 1,897 sales in December 2007.
The overall residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 7.6 per cent to $621,674 between Decembers 2010 and 2011. However, prices have decreased 1.5 per cent since hitting a peak of $630,921 in June 2011.
Our market remained in a balanced state for most of the year, although higher levels of demand for detached properties in the region’s largest communities caused prices in certain areas to rise higher than others. For example, the benchmark price of a single-family detached home experienced double-digit increases in nine areas within the region over the last 12 months.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,629 in December 2011. This represents a 4.1 per cent decline compared to the 1,699 units listed in December 2010 and a 49.4 per cent decline compared to November 2011 when 3,222 properties were listed.
Sales of detached properties in December 2011 reached 630, a decrease of 18.1 per cent from the 769 detached sales recorded in December 2010, and a 30.2 per cent decrease from the 902 units sold in December 2009. The benchmark price for detached properties increased 11.2 per cent from December 2010 to $887,471.
Sales of apartment properties reached 774 in December 2011, a decline of 4.6 per cent compared to the 811 sales in December 2010, and a decrease of 32.9 per cent compared to the 1,154 sales in December 2009.The benchmark price of an apartment property increased 3.7 per cent from December 2010 to $401,396.
Attached property sales in December 2011 totalled 254, a decline of 20.4 per cent compared to the 319 sales in December 2010, and a 44.7 per cent decrease from the 459 attached properties sold in December 2009. The benchmark price of an attached unit increased 4.2 per cent between December 2010 and 2011 to $511,499.
Source Real Estate Board of Greater Vancouver
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