MAJORITY OF ATTACHED HOMES IN FRASER VALLEY FALL UNDER HST THRESHOLD

SURREY, BC – The Fraser Valley will offer buyers of new homes noticeable savings after July 1 when the Harmonized Sales Tax (HST) comes into effect, according to the Fraser Valley Real Estate Board.

Deanna Horn, President of the board explains, “Since the majority of new townhomes, apartments, as well as select, new single family homes in our region sell for less than $525,000, the BC new housing rebate threshold in BC, the impact of the new HST will be lessened.”

On July 1, the seven per cent Provincial Sales Tax (PST) will join the five per cent Goods and Services Tax (GST) for a combined HST rate of 12 per cent. The HST will apply to the sale price of all new residential homes however; the BC government will provide a rebate up to a maximum amount of $26,250. According to the provincial government, homes that sell for up to $525,000 will cost the same or less than what they would have when only the GST applied.

“When the HST was first announced, we were concerned for our clients,” explains Horn, who represents nearly 3,000 REALTORS® working in the Fraser Valley.

“Although the HST impacts new home purchases more dramatically than resale, we’re pleased that through our lobbying efforts alongside other BC housing industry representatives, we were able to convince the government to increase both the threshold for the new housing rebate, and the amount of the rebate itself.

“The result is that most buyers of new, attached homes and select detached homes in the Fraser Valley will be able to maximize the benefit of the government’s rebate program. Just recently, I was recommending a lovely new, single family home in Cloverdale to one of my clients with an asking price of $519,000. A similar home in other Lower Mainland communities could be considerably higher in price and after July 1, will result in higher taxes because it is above the HST threshold.”

According to Canada Mortgage and Housing Corporation (CMHC), the average price of new townhomes in Surrey in May was $475,154 and in Abbotsford $403,469. The average price of new detached homes in Abbotsford in May was $532,129. CMHC also reports new apartments – 1,000 square feet in size – are selling currently on average for $294,860 in Surrey; $232,800 in Abbotsford; and, $273,880 in Langley.

The Fraser Valley Real Estate Board is a professional association of 2,989 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.

Condo or House

Condo or House? Exploring the Differences in Ownership

More than ever before, condo ownership represents an appealing alternative to traditional home ownership for all types of residents. Though condos have conventionally been the choice of singles and families without dependent children, more traditional families have begun experiencing the unique benefits of condo ownership. However, condos are certainly not for everyone. While condo ownership may provide access to certain amenities and limit time spent on upkeep, there can be certain restrictions – few of which are experienced by owners of single family homes. This article will consider the primary differences between condo and traditional home ownership. If you consider the facts in relation to your family’s goals, you may come to a better understanding of the best type of property for your family.

Two of the most important factors in determining what type of home is right for your family are location and lifestyle. If your family is looking to move to an urban environment where single family homes are scarce, a condo could be a good choice. In such markets, condos are always in high demand and appreciation often matches the best single family homes.

Additionally, if you live a busy life and can live without a large yard, a condo could help you live simply and happily. While most families with young children prefer single family homes for the added space, condos often provide amenities such as swimming pools, tennis courts and large open areas to help families relax and play.

However, there is far more to consider than location and lifestyle when deciding which type of property is best for your family. Nearly all of the differences between houses and condos stem from the different types of ownership. In the simplest terms, owners of single family homes are entitled to exclusive ownership, while most condo owners are subject to certain forms of shared ownership.

In regards to single family homes, exclusive ownership allows home owners to alter their home and surrounding property in nearly any way. While building codes may prevent certain home additions and other large-scale renovations, owners of single family homes can adapt their homes to meet their unique goals.

The owner of a condo is not always allowed to make such radical changes to their property. When purchasing a condo, owners are subject to the rules and regulations of the condo association or board. Typically composed of fellow residents, this governing body collects dues from condo owners to conduct ongoing maintenance of shared areas and perform any unexpected repairs.

As part of the agreement with the condo board, new owners will be informed of what types of changes can be made to the interior and exterior of their property. In most cases, condo owners possess the same type of exclusive ownership inside their condos as homeowners, yet are limited in exterior alterations to maintain the uniformity of the community.

If you are thinking about purchasing a condo, it is important to read the Covenants, Conditions and Restrictions (CC&Rs) before making a commitment. These documents include all the rules condo owners must follow and can vary widely between complexes. If you have indoor pets or other specific needs, make sure these are addressed in the CC&Rs to prevent any unwanted surprises. If you don’t understand any part of the CC&Rs when purchasing a condo, you can try to gain clarification from the director of the condo association.

While the concept of shared ownership might seem limiting to potential owners, there are certainly plenty of benefits. For instance, the owner of a single family home is solely responsible for any problems with the properties, incurring all costs of needed repairs. However, the dues paid by condo owner cover many repair costs – both inside and outside the home. Furthermore, condo ownership can also provide access to amenities – such as pools, spas and recreation equipment – outside the budget of a home owner.

Regardless of location, either a single family home or a condo can be the right fit for the right family. To make the most informed decision, all prospective homebuyers should reflect on their own lifestyles and priorities and how they relate to the different types of property ownership. While there may be many differences between house and condo ownership, the goal is always the same – finding the best home for your family.

Five Topics to Discuss With Your Real Estate Agent When Selling Your Home

Thinking of selling your home? Before you place the “For Sale” sign in front of your house, there are a few things you should consider in order to maximize your home value and make the sales process smooth and efficient. Be prepared to discuss the following subjects with your real estate agent when you’re ready to sell your home and you’ll be one step ahead in the market.

1) Best Time of Year to Put Your House on the Market
Conventional wisdom dictates that spring is the best time for selling a home. The weather is getting warmer, the school year is coming to an end, and people who have just received their tax refunds may now have extra cash to use for a down payment on a home. However, since not everyone can sell a home in the spring, here are some other seasonal factors to consider. According to annual home sale data from the National Association of Realtors, the slowest selling months of the year are typically January and February, since fewer home sales occur during the holidays. In spite of this, with less competition in the marketplace, you may be able to ask for a higher price for your home, or a quicker closing. Additionally, temperate locations like Florida and California don’t see the seasonal fluctuations in the housing market, where house-hunters are almost always looking. And a late winter or early spring in the Northeast may extend the typical “selling season.” These seasonal variations, as well as a variety of local factors, will all influence the housing market in your area. Be sure to talk to your real estate agent regarding the current state of the market and how it will affect the sale of your home.

2) Open House Strategy and How to De-Clutter
At an open house, first impressions count, so you’ll want to enhance your home’s perceived value. Make your home inviting by taking care of bothersome minor repairs; clean bathroom and kitchen counters and clear them of dishes and clutter. Arrange storage areas neatly and put unused items in a closet. If you have pets, consider having a neighbor watch them for the duration of the open house. It’s a good idea for you to be absent during the open house, also. If you must be present, let your agent do the talking.

Decorate your home to sell by arranging the furniture to look as spacious as possible. Add color and fragrance to any room with fresh flowers. Lastly, don’t forget the outside of your home. Put away all gardening equipment and neatly arrange outdoor items like firewood or furniture. Even take a hard look at your mailbox and make sure it reflects the value and character of your home.

3) Features to Accentuate
While you may have long determined which aspects of your home you love, having a fresh set of eyes assess its best features is a smart idea. If you’re considering selling your home, take the time to walk through it methodically with your real estate agent. Together you can determine which features of the home should be accentuated. Does your home have a wonderful view? Make the most of it by sprucing up window treatments and arranging furniture to draw the eye toward the windows. Perhaps the location of your house is truly incredible. Your real estate agent can help accentuate this feature in sales and marketing materials.

4) Desired Price and Bottom Line Price
It’s great to shoot high, but when determining your home value, it’s also important to identify your bottom line. By assessing recent home sale statistics in your area, your real estate agent can recommend an appropriate target price range. Working with your agent, you can set an initial asking price, as well as privately determine the absolute lowest price you would comfortably accept for selling your home. By crunching the numbers and setting parameters early on, you can avoid emotional rollercoasters during the process of receiving, countering and accepting offers.

5) Disclosures
When selling your home, you may be obligated to disclose problems that could affect the property’s value or desirability. In most states, it is illegal to fraudulently conceal major physical defects in your property, such as a basement that floods in heavy rains. And many states now require sellers to take a proactive role by making written disclosures on the condition of the property. Ask your real estate agent for the particular laws of your state.

US homeprice corrections unlikely in Canada

The Canadian Real Estate Association (CREA) released a new report last week indicating that home prices will stabilize, and remain stable for some time. This means that Canadian homeowners are unlikely to experience a US-style decline in the value of their homes. While the relationship between average price and income has recently been cited as signifying a US-style correction in Canadian home prices, these warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics, CREA says. Home prices tend to rise in cycles, characterized by periods of sharp growth and periods of stability. By contrast, income generally follows an orderly upward trend over time. For home prices to keep pace with incomes, they must rise faster during housing booms to make up for periods of little or no price growth. Canadian home prices were stagnant throughout most of the 1990s, while incomes continued rising, making housing more affordable. Over the past decade, home prices have climbed sharply as mortgage interest rates declined. The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle. History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again. The correction in US home prices has sparked fears that Canadian home prices may share a similar fate but, according to CREA, warnings to this effect ignore solid Canadian mortgage market trends. Conservative lending practices in the mortgage industry combined with prudent borrowing and accelerated payments among Canadian mortgage holders have been seen throughout the recent housing market cycle. Accelerated accumulation of home equity will provide options for the small proportion of homeowners who may face financial difficulty when their mortgage is renewed at a higher interest rate. These trends are expected to help Canada avoid a US-style housing crisis. The correction in US home prices is set against a massive oversupply of homes due to distress sales, combined with a drop in housing demand spurred by unemployment. The unwinding of the housing boom in Canada will be more orderly, characterized by softening sales activity and stable prices

Feng Sui: fad or selling tool?

Feng Shui: Fad or Selling Tool for homeowners
Over the past decade, Realtors, particularly those representing Asian clients, have become familiar with the term Feng Shui - the ancient Chinese art of placement and design. Feng Shui, (pronounced "fung shwoy") which literally means wind and water, is the art of creating an environment of harmony and balance, both inside and out. It has been practiced for thousands of years in China and is rapidly gaining recognition in western culture as a tool for creating the ideal living and working environment.

Feng Shui Principles
The ancient Chinese sought to explain the visible and invisible forces on the earth and the mysterious influences of these forces on human behavior. They understood that every living thing, including a house, has its own Qi, (pronounced "chee") or vital energy that must be protected and nurtured to promote continuous growth. This mythical blend of science and art follows the philosophy that each room in a house has its own unique Qi centre that determines the areas of good or bad energies. Many believe that a life filled with peacefulness and harmony will follow if the Feng Shui principles are applied to one's environment.

Feng Shui Practitioners
Some homeowners have recruited Feng Shui practitioners to assist them in creating a positive home environment. But one should be cautious and pay particular attention to the practitioner's credentials before hiring. The resurgence of using Fen Shui has generated misconceptions and misuse. Some people claim to be experts after only one weekend workshop. Others claim to provide cures to "bad" Feng Shui by prescribing mirrors, crystals, chimes or stones. So, be discerning. Qualified practitioners use only the five basic elemental forces of wood, fire, earth, metal and water to bring a place into an energetic balance.

When making recommendations, practitioners will first review the location and orientation of the house. Next, the practitioner will determine the nature of the Qi or energy in the home, taking into account the location of entrance, the bedrooms and other key areas. Paint colours, environmental influences and characteristics of the individuals living in the home are also considered in the evaluation.

While a Feng Shui analysis of a home requires careful calculations of over sixty factors, some fundamental knowledge can be helpful.

The External Environment:

• "Mountains surround and water embraces." The best position is to have mountains behind the house protecting it with a river running in front for prosperity. Flowing water represents wealth.
• Buildings should be constructed on high ground, rather than a valley.
• Avoid sharp and pointed objects facing the front door --such as, telephone polls, tree trunks, mountains, high rise buildings or a church steeple. These objects can cast shadows over the roof of the house and are called "secret arrows." They have the affect of cutting the house in half.
• Cul-de-sacs and dead end roads create stagnant Qi. The energy flows in, but has no place to go.

The Interior Environment

• Symbolically, the front door brings in the Qi and must be given careful attention. There should be a winding path to the main entrance similar to a meandering stream. The foyer should be clear, open and without clutter or debris.
• The front door should not be directly aligned with the back door or window (allowing the Qi to leak). Many recommend a screen or plant be placed in its path to reserved the Qi.
• Doors should not form a knife’s edge by swing in and slicing the bed, desk, or sofa.
• Staircases that are directly aligned with the main entrance will bring conflict and financial instability to the occupants of the house.
• The kitchen should not be in the centre of house or too close to the entry. Having the sink and stove opposite one another promotes marital conflict.
• "Heart-blocking pillars" or columns in the centre of a room can cause conflict. Roof beams are equated to dangerous swords lurking above.

source: realtylink

Fraser Valley Buyers enjoy abundant selection

Property buyers continued to see an increase in selection while sellers faced more competition as listings grew and sales decreased on Fraser Valley’s Multiple Listing Service® (MLS®) in May.

The Fraser Valley Real Estate Board posted 1,477 sales in May, a decrease of 2 per cent compared to the 1,501 sales processed on the MLS® during May 2009. At the same time, the Board received 3,457 new listings, taking the number of active listings to 11,411, an increase of 14 per cent compared to the 10,047 listings available during May of last year.

Deanna Horn, president of the Board, puts the numbers into context. “May’s sales were 16 per cent below our ten-year average, 1,760 sales for that month. Considering how busy the market has been in the last decade that represents solid sales activity, slower yes, but steady. "

“What’s changed most is the increase in inventory. The last time this many homes were available on Fraser Valley’s MLS® in May was in 1995.”

Horn adds, “Tremendous selection allows buyers the luxury to find the right home, comparison shop and gives their REALTORS® the ability to negotiate hard on their behalf.

“For sellers, getting specific advice about home values in your local neighbourhood is crucial in a competitive market.”

In May, the benchmark price for Fraser Valley detached homes was $515,375, a 10.6 per cent increase compared to $465,939 in May 2009. The average number of days to sell a detached home in May was 43 days, one day faster than it was in May of last year.

The benchmark price of Fraser Valley townhouses in May was $328,295, a 10.1 per cent increase compared to $298,308 in May 2009. Townhomes in May sold on average 27 days faster than they did a year ago – 39 days compared to 66 days in 2009.

The benchmark price of apartments increased by 8.6 per cent year-over-year going from $232,170 in May 2009 to $252,221 in May 2010. The average days to sell in May for apartments in the Fraser Valley was 51 compared to 69 days during the same month last year.

source FVREB

Prime Rate Increase

The Bank of Canada has increased prime rate by 0.25%, to 2.50%. This will affect those clients who have Variable Rate Mortgages, and those who hold Lines of Credit.