January 2010
- Thread starter Ally
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Greater Victoria property assessments up $89 billion for 2010
VICTORIA — The value of Greater Victoria`s residential and commercial properties for 2010 is nearly $89 billion — an increase of nearly $4 billion from the previous year, according to B.C. Assessment Authority.
The roll for the province was released this morning with Greater Victoria weighing in at $88,167,548,510 — up from $84,592,819,165 in 2009. Of that increase about $1.4 billion was made up of subdivisions, rezoning and new construction.
"Most homes in Greater Victoria are worth more on this year`s assessment roll than they were on the 2009 assessment roll," said Rick McMahon, deputy assessor with the BCA. "Most home owners in Greater Victoria will see changes that range from minus two to plus nine."
The assessments are based on the estimate of a property`s value as of July 1, 2009.
According to the B.C. Assessment, changes in an annual assessment are reflective of movement in the local real estate market and can vary greatly from property to property. The authority notes assessors take into account current sales in the area, size of the property, age, quality, condition, view and location of the site when estimating a property`s market value.
The 2010 assessments should reach the Capital Region`s 140,000 property owners some time this week.
Read the full article here.
VICTORIA — The value of Greater Victoria`s residential and commercial properties for 2010 is nearly $89 billion — an increase of nearly $4 billion from the previous year, according to B.C. Assessment Authority.
The roll for the province was released this morning with Greater Victoria weighing in at $88,167,548,510 — up from $84,592,819,165 in 2009. Of that increase about $1.4 billion was made up of subdivisions, rezoning and new construction.
"Most homes in Greater Victoria are worth more on this year`s assessment roll than they were on the 2009 assessment roll," said Rick McMahon, deputy assessor with the BCA. "Most home owners in Greater Victoria will see changes that range from minus two to plus nine."
The assessments are based on the estimate of a property`s value as of July 1, 2009.
According to the B.C. Assessment, changes in an annual assessment are reflective of movement in the local real estate market and can vary greatly from property to property. The authority notes assessors take into account current sales in the area, size of the property, age, quality, condition, view and location of the site when estimating a property`s market value.
The 2010 assessments should reach the Capital Region`s 140,000 property owners some time this week.
Read the full article here.
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Vancouver Real Estate Claws itself out of a Hole
VANCOUVER - When condo marketer Cameron McNeill stood to make a speech at his company`s Christmas party, he presided over an upbeat crowd of developers, realtors and industry insiders.
Dressed casually in a Hawaiian shirt, wearing a lei for the Polynesian-themed soiree at Chill Winston in Gastown, McNeill remarked that the brisk sales and project launches that have marked the end of this year are a long way from the dark days of last December.
A year ago, developers were putting projects on ice, and sales in Metro Vancouver`s resale housing market dropped to 924 transactions in December, half of what they were in December 2007.
"It was only a year ago that many in our industry were cancelling Christmas parties just out of principle," McNeill, president of MAC Marketing Solutions, recalled in an interview.
"[December 2008] was a very sombre mood. There were broad layoffs happening industry-wide, not only [among] developers, but with service providers, architects, interior designers."
No one was buying real estate, which meant no developer, even if they had the financial wherewithal, was prepared to take the risk and build, McNeill said.
Read the full article here.
VANCOUVER - When condo marketer Cameron McNeill stood to make a speech at his company`s Christmas party, he presided over an upbeat crowd of developers, realtors and industry insiders.
Dressed casually in a Hawaiian shirt, wearing a lei for the Polynesian-themed soiree at Chill Winston in Gastown, McNeill remarked that the brisk sales and project launches that have marked the end of this year are a long way from the dark days of last December.
A year ago, developers were putting projects on ice, and sales in Metro Vancouver`s resale housing market dropped to 924 transactions in December, half of what they were in December 2007.
"It was only a year ago that many in our industry were cancelling Christmas parties just out of principle," McNeill, president of MAC Marketing Solutions, recalled in an interview.
"[December 2008] was a very sombre mood. There were broad layoffs happening industry-wide, not only [among] developers, but with service providers, architects, interior designers."
No one was buying real estate, which meant no developer, even if they had the financial wherewithal, was prepared to take the risk and build, McNeill said.
Read the full article here.
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Canada`s resale home prices see first annual rise in 10 months
OTTAWA -- Resale prices for Canadian homes rose for a sixth consecutive month in October -- and were up on an annual basis for the first time in nearly a year -- as the country`s real estate market continued to recover from recessionary lows, according to a report released Wednesday.The Teranet-National Bank resale house price index of major markets increased 1.27% during the month from September. Year-over-year, prices were up 0.57% -- marking the first rise in 10 months.
"Prices have now risen 1% or more for five months in a row," said Marc Pinsonneault, senior economist at National Bank Financial. "In October, however, the monthly rise varied significantly among the six metropolitan markets surveyed."
The biggest monthly price gains were recorded in Toronto (1.6%), Vancouver (1.8%) and Calgary (0.8%), the index showed.
More modest increases were noted in Halifax (0.4%), Ottawa (0.3%) and Montreal (0.3%). "In each of these three cities, the monthly appreciation was the smallest since market bottom -- except for one monthly decline each in Montreal and Halifax," said Mr. Pinsonneault.
Read the full article here.
OTTAWA -- Resale prices for Canadian homes rose for a sixth consecutive month in October -- and were up on an annual basis for the first time in nearly a year -- as the country`s real estate market continued to recover from recessionary lows, according to a report released Wednesday.The Teranet-National Bank resale house price index of major markets increased 1.27% during the month from September. Year-over-year, prices were up 0.57% -- marking the first rise in 10 months.
"Prices have now risen 1% or more for five months in a row," said Marc Pinsonneault, senior economist at National Bank Financial. "In October, however, the monthly rise varied significantly among the six metropolitan markets surveyed."
The biggest monthly price gains were recorded in Toronto (1.6%), Vancouver (1.8%) and Calgary (0.8%), the index showed.
More modest increases were noted in Halifax (0.4%), Ottawa (0.3%) and Montreal (0.3%). "In each of these three cities, the monthly appreciation was the smallest since market bottom -- except for one monthly decline each in Montreal and Halifax," said Mr. Pinsonneault.
Read the full article here.
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B.C. 2009 Property Assessments are in: How did you do?
The 2009 property assessments — the values on which British Columbians` 2010 municipal tax bills will be based — are on the web and in the mail.
This year — unlike in January of 2009 when the system was turned on its ear by political interference — it`s fairly easy to figure out if you`ll win or lose when your tax bill comes out in July.
Let me illustrate with an example that, on the surface, looks scary: Say your assessment notice shows a 15-per-cent increase in the value of your home or business. What to do?
First, don`t panic. Take a moment to read this column, check our website and figure out what this really means.
You`ll find a 15-per-cent increase is no big deal if your home is in New Denver, Kitimat or Clearwater, or your business is in Peachland, Sparwood or Smithers. Because in these places the average assessment — not just yours — is up about 15 per cent. So the impact will be nil. Any hit on your tax bill in July will be due solely to increased municipal spending.
Read the full article here.
The 2009 property assessments — the values on which British Columbians` 2010 municipal tax bills will be based — are on the web and in the mail.
This year — unlike in January of 2009 when the system was turned on its ear by political interference — it`s fairly easy to figure out if you`ll win or lose when your tax bill comes out in July.
Let me illustrate with an example that, on the surface, looks scary: Say your assessment notice shows a 15-per-cent increase in the value of your home or business. What to do?
First, don`t panic. Take a moment to read this column, check our website and figure out what this really means.
You`ll find a 15-per-cent increase is no big deal if your home is in New Denver, Kitimat or Clearwater, or your business is in Peachland, Sparwood or Smithers. Because in these places the average assessment — not just yours — is up about 15 per cent. So the impact will be nil. Any hit on your tax bill in July will be due solely to increased municipal spending.
Read the full article here.
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December jump in Housing sales caps 2009 rebound
After plummeting to lows not seen since the 1980s, Lower Mainland real estate markets saw a rush in the second half of 2009 that pushed sales well above an economically challenged 2008 and prices back on an upward slope toward previous peaks.
Aided by the slashing of mortgage rates, cut to the bone in step with the Bank of Canada`s measures to stimulate the economy, new buyers poured into the market.
The recovery wasn`t equally shared among Lower Mainland municipalities, but Robyn Adamache, a market analyst for Canada Mortgage and Housing Corp., said most communities are in seller`s market conditions, which she expects will continue until mid-2010 when an expected rise in mortgage rates takes hold.
"Prices are expected to continue rising as well," Adamache said, "and that will be cutting out the benefit [the market has experienced] from lower prices combined with low interest rates."
The area of Metro covered by the Real Estate Board of Greater Vancouver recorded 35,669 sales through the realtor-controlled Multiple Listing Service in 2009, a 45-per-cent increase from 2008.
And the benchmark price, an average price for the typical property sold, hit $562,463 in December, up some 16 per cent from December 2008, when prices had fallen considerably from their peak.
Read the full article here.
After plummeting to lows not seen since the 1980s, Lower Mainland real estate markets saw a rush in the second half of 2009 that pushed sales well above an economically challenged 2008 and prices back on an upward slope toward previous peaks.
Aided by the slashing of mortgage rates, cut to the bone in step with the Bank of Canada`s measures to stimulate the economy, new buyers poured into the market.
The recovery wasn`t equally shared among Lower Mainland municipalities, but Robyn Adamache, a market analyst for Canada Mortgage and Housing Corp., said most communities are in seller`s market conditions, which she expects will continue until mid-2010 when an expected rise in mortgage rates takes hold.
"Prices are expected to continue rising as well," Adamache said, "and that will be cutting out the benefit [the market has experienced] from lower prices combined with low interest rates."
The area of Metro covered by the Real Estate Board of Greater Vancouver recorded 35,669 sales through the realtor-controlled Multiple Listing Service in 2009, a 45-per-cent increase from 2008.
And the benchmark price, an average price for the typical property sold, hit $562,463 in December, up some 16 per cent from December 2008, when prices had fallen considerably from their peak.
Read the full article here.
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Canfor shutting sawmill in Quesnel
The pine beetle is being singled out as the main reason a Quesnel sawmill is shutting down, laying off 180 workers.
Canfor Corp. announced Tuesday that it is curtailing its Quesnel mill Jan. 15 because of slow market demand and what it called in a news release "the economics of running the operation."
Quesnel is in the heart of the dead and dying pine forest and Canfor acknowledged Tuesday that the beetle is one of the factors behind the curtailment.
"There are three other factors: The economics of the mill, the sliding price of lumber, and the strong Canadian dollar. And sure, there`s the pine beetle," said Canfor spokesman Dave Lefebvre.
The mill is now running on an almost steady diet of pine beetle-killed wood, according to the United Steelworkers union, which represents the 180 employees facing layoff. That`s pushing costs up and the end product is lower-grade lumber, said Frank Everitt, president of Local 1-424 of the steelworkers union.
Read the full article here.
The pine beetle is being singled out as the main reason a Quesnel sawmill is shutting down, laying off 180 workers.
Canfor Corp. announced Tuesday that it is curtailing its Quesnel mill Jan. 15 because of slow market demand and what it called in a news release "the economics of running the operation."
Quesnel is in the heart of the dead and dying pine forest and Canfor acknowledged Tuesday that the beetle is one of the factors behind the curtailment.
"There are three other factors: The economics of the mill, the sliding price of lumber, and the strong Canadian dollar. And sure, there`s the pine beetle," said Canfor spokesman Dave Lefebvre.
The mill is now running on an almost steady diet of pine beetle-killed wood, according to the United Steelworkers union, which represents the 180 employees facing layoff. That`s pushing costs up and the end product is lower-grade lumber, said Frank Everitt, president of Local 1-424 of the steelworkers union.
Read the full article here.
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In Vancouver, camping out for Condos is norm again
People were sleeping on the streets of Vancouver the other night.
This is nothing new, of course. Except these people weren`t homeless, they were home-hunters, camping overnight on a downtown sidewalk to be among the first to buy into a new condo tower opening in the city`s trendy Yaletown district.
About 20 people spent a frigid Friday night a week ago outside the sales office for a new building called The Mark. By the end of business the next day, 163 of the 214 available condos had been sold.
Phew, what a relief. Insanity is back in the real estate
market.
Not that long ago, these condo campouts were all the rage. And new towers were going up as fast as man could build them. Many of the purchasers were young couples who weren`t prepared to part with their first born – and a million bucks of the bank`s money – to own some shack on the city`s east side.
Open houses, meantime, were events. Cars of would-be buyers would line neighbourhood streets waiting for a real estate agent to fling open the front doors of some red-hot property that the owner had bought for a song 10 years earlier. A stampede would ensue. Bidding wars would erupt on the spot. Sellers would routinely get tens of thousands over their asking price.
Read the full article here.
People were sleeping on the streets of Vancouver the other night.
This is nothing new, of course. Except these people weren`t homeless, they were home-hunters, camping overnight on a downtown sidewalk to be among the first to buy into a new condo tower opening in the city`s trendy Yaletown district.
About 20 people spent a frigid Friday night a week ago outside the sales office for a new building called The Mark. By the end of business the next day, 163 of the 214 available condos had been sold.
Phew, what a relief. Insanity is back in the real estate
market.Not that long ago, these condo campouts were all the rage. And new towers were going up as fast as man could build them. Many of the purchasers were young couples who weren`t prepared to part with their first born – and a million bucks of the bank`s money – to own some shack on the city`s east side.
Open houses, meantime, were events. Cars of would-be buyers would line neighbourhood streets waiting for a real estate agent to fling open the front doors of some red-hot property that the owner had bought for a song 10 years earlier. A stampede would ensue. Bidding wars would erupt on the spot. Sellers would routinely get tens of thousands over their asking price.
Read the full article here.
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Squamish Reserve primed for development
The federal government introduced legislation Thursday with the potential to kick start $7 billion worth of real estate development on the Squamish First Nations` Capilano Reserve.
Called the First Nations Certainty of Land Title Act, the bill would harmonize provincial property regulations on federally administered reserve lands where a first nation wants to develop a specific project.
It applies to federally administered reserve land across the country, but would have an immediate impact for the Squamish, who are working on a proposal to build three or four highrise, leasehold residential towers adjacent to the Park Royal mall.
"This is an important first step to allow us to use our land to the highest and best use to support ourselves," Squamish Chief Gibby Jacob said.
Chuck Strahl, federal Minister of Indian Affairs and Northern Development, said the federal legislation is designed to help make on-reserve developments equally as valuable as off-reserve development and unlock economic opportunities for urban first nation communities.
"On-reserve commercial real estate has the potential to generate significant revenue for some first nations," Strahl said in unveiling the legislation in Ottawa, "but such projects have been hampered by differences in property rights on and off reserve."
For the Squamish, Chief Bill Williams said the legislation "is a very big development."
Read the full article here.
The federal government introduced legislation Thursday with the potential to kick start $7 billion worth of real estate development on the Squamish First Nations` Capilano Reserve.
Called the First Nations Certainty of Land Title Act, the bill would harmonize provincial property regulations on federally administered reserve lands where a first nation wants to develop a specific project.
It applies to federally administered reserve land across the country, but would have an immediate impact for the Squamish, who are working on a proposal to build three or four highrise, leasehold residential towers adjacent to the Park Royal mall.
"This is an important first step to allow us to use our land to the highest and best use to support ourselves," Squamish Chief Gibby Jacob said.
Chuck Strahl, federal Minister of Indian Affairs and Northern Development, said the federal legislation is designed to help make on-reserve developments equally as valuable as off-reserve development and unlock economic opportunities for urban first nation communities.
"On-reserve commercial real estate has the potential to generate significant revenue for some first nations," Strahl said in unveiling the legislation in Ottawa, "but such projects have been hampered by differences in property rights on and off reserve."
For the Squamish, Chief Bill Williams said the legislation "is a very big development."
Read the full article here.
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Recession still weighing on Housing Starts in Metro Vancouver
Metro Vancouver is in contention to post the lowest number of housing starts since 1962, with home construction down 60 per cent in 2009 compared with 2008, but there is a silver lining in those figures.
Builders had started work on just 7,329 new housing units up to the end of November, Canada Mortgage and Housing Corp. reported Tuesday, compared with 18,481 starts over the same period in 2008.
However, the low level is more a comment on the dismal market conditions a year ago as sales collapsed and prices fell, Neil Chrystal, president of the Urban Development Institute`s Pacific division, said in an interview.
"Because there`s a bit of a lag-time in housing starts [after sales fall off], it`s a reflection of just how bad things were in the fall of `08," he added.
However, given that housing sales in the resale markets have bounced back to levels that have encouraged developers to launch new presales, and given that those presales are also selling well, Chrystal is confident that 2010 will be a more positive reflection of those 2009 sales results.
"I think we`ll see starts bounce back quite strongly in 2010," Chrystal said, "but a lot depends on [mortgage] interest rates."
Read the full article here.
Metro Vancouver is in contention to post the lowest number of housing starts since 1962, with home construction down 60 per cent in 2009 compared with 2008, but there is a silver lining in those figures.
Builders had started work on just 7,329 new housing units up to the end of November, Canada Mortgage and Housing Corp. reported Tuesday, compared with 18,481 starts over the same period in 2008.
However, the low level is more a comment on the dismal market conditions a year ago as sales collapsed and prices fell, Neil Chrystal, president of the Urban Development Institute`s Pacific division, said in an interview.
"Because there`s a bit of a lag-time in housing starts [after sales fall off], it`s a reflection of just how bad things were in the fall of `08," he added.
However, given that housing sales in the resale markets have bounced back to levels that have encouraged developers to launch new presales, and given that those presales are also selling well, Chrystal is confident that 2010 will be a more positive reflection of those 2009 sales results.
"I think we`ll see starts bounce back quite strongly in 2010," Chrystal said, "but a lot depends on [mortgage] interest rates."
Read the full article here.
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Oil Exports drive expansion plans at ports in Vancouver and Kitimat
In the past six months, the concept of Canada shipping crude oil to Asian markets has warmed considerably, with major Chinese and Korean investments in Alberta`s oilsands developments and the impending announcement of serious backers (likely Asian) for a new crude-oil pipeline to Kitimat stoking the fires.
Adding a huge stimulus to this concept is the fear in Alberta that U.S. President Barack Obama and his government are serious about putting shackles on Canada`s oilsands production. The term "dirty oil" just won`t go away, and given that the U.S. now takes nearly all of Canada`s oil exports, the risk of serious economic damage is real. Any alternative customer -- especially in Asian markets -- is worth pursuing vigorously.
As a result, environmental and first nations organizations are shining huge spotlights on the Enbridge Inc. proposal to build a 525,000-barrels-of-oil-per-day pipeline -- called Northern Gateway -- from Alberta to a tidewater port at Kitimat. Enbridge expects to file its formal application for this project early next year, and at the same time announce significant commercial support for the project.
All the environmental media campaigns are aimed at this northern proposal which, even if it gets fast-track government approval (highly unlikely), won`t see a ship enter the harbour until 2015 at the earliest.
Flying completely under the radar and blissfully ignored by those same environmental and first nations organizations is an existing and rapidly growing crude oil shipment business through the Port of Vancouver, complete with its own significant expansion goals and sights also set on future Asian markets.
Read the full article here.
In the past six months, the concept of Canada shipping crude oil to Asian markets has warmed considerably, with major Chinese and Korean investments in Alberta`s oilsands developments and the impending announcement of serious backers (likely Asian) for a new crude-oil pipeline to Kitimat stoking the fires.
Adding a huge stimulus to this concept is the fear in Alberta that U.S. President Barack Obama and his government are serious about putting shackles on Canada`s oilsands production. The term "dirty oil" just won`t go away, and given that the U.S. now takes nearly all of Canada`s oil exports, the risk of serious economic damage is real. Any alternative customer -- especially in Asian markets -- is worth pursuing vigorously.
As a result, environmental and first nations organizations are shining huge spotlights on the Enbridge Inc. proposal to build a 525,000-barrels-of-oil-per-day pipeline -- called Northern Gateway -- from Alberta to a tidewater port at Kitimat. Enbridge expects to file its formal application for this project early next year, and at the same time announce significant commercial support for the project.
All the environmental media campaigns are aimed at this northern proposal which, even if it gets fast-track government approval (highly unlikely), won`t see a ship enter the harbour until 2015 at the earliest.
Flying completely under the radar and blissfully ignored by those same environmental and first nations organizations is an existing and rapidly growing crude oil shipment business through the Port of Vancouver, complete with its own significant expansion goals and sights also set on future Asian markets.
Read the full article here.
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Shrinking base makes North Shore Industrial land precious
A shrinking industrial land base on the North Shore has helped keep that sector of the commercial real estate market more stable during turbulent times, according to one commercial realtor.
The scarcity of industrial property should keep such lots at high prices while values recover in other areas of Metro Vancouver, Matt Thomas, an agent with Avison Young`s Vancouver office, said in an interview.
North Shore industrial land values "have been more stable simply because there`s a lack of it," Thomas said. "People will always pay top dollar for land that`s in the right location."
While Avison Young reported in November that industrial land values had decreased 20 to 30 per cent in other areas of Metro Vancouver and the Fraser Valley, Thomas said they`ve hung in around $2 million an acre on the North Shore.
The numbers were in an Avison Young report on the North Shore sub-market released Tuesday.
Read the full article here.
A shrinking industrial land base on the North Shore has helped keep that sector of the commercial real estate market more stable during turbulent times, according to one commercial realtor.
The scarcity of industrial property should keep such lots at high prices while values recover in other areas of Metro Vancouver, Matt Thomas, an agent with Avison Young`s Vancouver office, said in an interview.
North Shore industrial land values "have been more stable simply because there`s a lack of it," Thomas said. "People will always pay top dollar for land that`s in the right location."
While Avison Young reported in November that industrial land values had decreased 20 to 30 per cent in other areas of Metro Vancouver and the Fraser Valley, Thomas said they`ve hung in around $2 million an acre on the North Shore.
The numbers were in an Avison Young report on the North Shore sub-market released Tuesday.
Read the full article here.
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B.C. Home affordability takes a hit as prices rise in tightened, hot market
It`s getting harder to buy a home in B.C. as an increasingly hot real estate market pushes prices higher, according to an RBC report on housing affordability released Wednesday.
"We`re talking about a very expensive market in Vancouver," RBC senior economist Robert Hogue said in an interview. "Mortgage payments there take a much bigger chunk [of paycheques]. And it appears the rebound in the market has been stronger there than in other parts of the country. It has been quite an astonishing rebound."
According to the report, B.C. and Vancouver posted the biggest increases by far across Canada in the RBC index measures.
"The cost of home ownership in B.C. increased in the third quarter following five consecutive declines -- cumulatively the steepest drop since the early 1990s," the report by RBC Economics Research concluded. "Notable rises in home prices in the province`s large urban centres and the modest pick-up in mortgage rates have boosted typical mortgage payments for the first time since early 2008."
It said the Vancouver market "continues to roar back in a spectacular way and property prices are now heating up closer and closer to a boil."
But that`s no surprise to Cameron Muir, chief economist for the B.C. Real Estate Association, who said Vancouver prices might even be rising faster than the RBC report suggests.
Read the full article here.
It`s getting harder to buy a home in B.C. as an increasingly hot real estate market pushes prices higher, according to an RBC report on housing affordability released Wednesday.
"We`re talking about a very expensive market in Vancouver," RBC senior economist Robert Hogue said in an interview. "Mortgage payments there take a much bigger chunk [of paycheques]. And it appears the rebound in the market has been stronger there than in other parts of the country. It has been quite an astonishing rebound."
According to the report, B.C. and Vancouver posted the biggest increases by far across Canada in the RBC index measures.
"The cost of home ownership in B.C. increased in the third quarter following five consecutive declines -- cumulatively the steepest drop since the early 1990s," the report by RBC Economics Research concluded. "Notable rises in home prices in the province`s large urban centres and the modest pick-up in mortgage rates have boosted typical mortgage payments for the first time since early 2008."
It said the Vancouver market "continues to roar back in a spectacular way and property prices are now heating up closer and closer to a boil."
But that`s no surprise to Cameron Muir, chief economist for the B.C. Real Estate Association, who said Vancouver prices might even be rising faster than the RBC report suggests.
Read the full article here.
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Victoria throws construction sector an HST break
The provincial government is throwing the home-construction sector a Harmonized Sales Tax break, raising the threshold for its maximum tax rebate and extending the deadline for when the HST will apply to new housing.
The provincial government announced on Thursday that the threshold for which the maximum HST rebate will apply will be raised to $525,000 from $400,000, and the harmonized tax will not be levied against pre-sale homes for which the buyer signed a purchase contract prior to Nov. 18.
Previously, the tax was to apply to new homes for which buyers took possession after July 1, 2010.
The announcement effectively neutralizes the HST on homes priced under $525,000, and increases the maximum rebate offered to homebuyers purchasing houses over the threshold to $26,250 -- up from $20,000 under the old threshold.
In making the announcement, Finance Minister Colin Hansen said "we heard the concerns from consumers and industry."
"This increase will move the threshold to above the average new-home price in the province," he added. It will be the highest such rebate in Canada.
Read the full article here.
The provincial government is throwing the home-construction sector a Harmonized Sales Tax break, raising the threshold for its maximum tax rebate and extending the deadline for when the HST will apply to new housing.
The provincial government announced on Thursday that the threshold for which the maximum HST rebate will apply will be raised to $525,000 from $400,000, and the harmonized tax will not be levied against pre-sale homes for which the buyer signed a purchase contract prior to Nov. 18.
Previously, the tax was to apply to new homes for which buyers took possession after July 1, 2010.
The announcement effectively neutralizes the HST on homes priced under $525,000, and increases the maximum rebate offered to homebuyers purchasing houses over the threshold to $26,250 -- up from $20,000 under the old threshold.
In making the announcement, Finance Minister Colin Hansen said "we heard the concerns from consumers and industry."
"This increase will move the threshold to above the average new-home price in the province," he added. It will be the highest such rebate in Canada.
Read the full article here.
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HST break for Home builders and Buyers, but not much for the masses
Unless you`re in the market for a new home, Thursday`s announcement of a bigger HST break on new homes might have you asking, "Why not something for me?"
If so, you`ve got company. There are lots of other losers. They include those whose issue is the cost of restaurant meals, bus tours, funerals, crash helmets, life jackets, first-aid kits, smoke detectors, energy-conservation equipment, non-prescription drugs, bikes, school supplies (but not books), home care for Granny, cable TV, haircuts and manicures, or any of the myriad other things that are exempt now from PST but will be hit soon by HST.
So why such a big perk to B.C.`s relative handful of home builders and buyers, and nothing extra for the masses who buy all that other stuff?
The charitable might argue it`s because housing is so important and so burdened by taxes — more than $75,000 on a $550,000 home — that an added straw from HST might break the camel`s back.
But the cynical would say it`s because the province was able to give housing a break through sleight-of-hand, and this would be harder to do with other commodities and services.
The problem is that Victoria is limited in the exemptions it can give by its agreement with Ottawa. Its seven-per-cent share of a new 12-per-cent HST must apply to at least 95 per cent of the existing GST base. And it has already exempted virtually all of the other five per cent through earlier announced breaks for gas and diesel fuel, books, children`s-sized clothing, car seats and booster seats, diapers and feminine hygiene products.
Read the full article here.
Unless you`re in the market for a new home, Thursday`s announcement of a bigger HST break on new homes might have you asking, "Why not something for me?"
If so, you`ve got company. There are lots of other losers. They include those whose issue is the cost of restaurant meals, bus tours, funerals, crash helmets, life jackets, first-aid kits, smoke detectors, energy-conservation equipment, non-prescription drugs, bikes, school supplies (but not books), home care for Granny, cable TV, haircuts and manicures, or any of the myriad other things that are exempt now from PST but will be hit soon by HST.
So why such a big perk to B.C.`s relative handful of home builders and buyers, and nothing extra for the masses who buy all that other stuff?
The charitable might argue it`s because housing is so important and so burdened by taxes — more than $75,000 on a $550,000 home — that an added straw from HST might break the camel`s back.
But the cynical would say it`s because the province was able to give housing a break through sleight-of-hand, and this would be harder to do with other commodities and services.
The problem is that Victoria is limited in the exemptions it can give by its agreement with Ottawa. Its seven-per-cent share of a new 12-per-cent HST must apply to at least 95 per cent of the existing GST base. And it has already exempted virtually all of the other five per cent through earlier announced breaks for gas and diesel fuel, books, children`s-sized clothing, car seats and booster seats, diapers and feminine hygiene products.
Read the full article here.
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Metro Home Prices headed up in 2010, firm predicts
Realty firm Royal LePage has come out of the gate in 2010 with the prediction Metro Vancouver`s home prices will inflate another 7.2 per cent this year, as long as the expected mid-year rise in mortgage rates isn`t a dramatic spike.
Royal LePage, in its forecast released Thursday, said that based on the momentum of the sales surge during the last half of 2009, and with mortgage interest rates continuing at near record lows, the first half of 2010 should remain strong.
"The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs," Royal LePage CEO Phil Soper said in a news release.
For Metro Vancouver, that should mean upward pressure on prices, along with a modest increase in sales compared with 2009, a year that saw sales and prices come back at double-digit increases from the downturn-year of 2008.
Chris Simmons, owner of Royal LePage Westside in Vancouver, said in an interview that the firm based its expectations for price increases on how prices performed over the last quarter of 2009.
"[We saw] stronger prices in the last quarter of 2009, and we take a look at that, try to temper the prices and come up with our best guess as to where prices will be for the full year of 2010," Simmons said.
Read the full article here.
Realty firm Royal LePage has come out of the gate in 2010 with the prediction Metro Vancouver`s home prices will inflate another 7.2 per cent this year, as long as the expected mid-year rise in mortgage rates isn`t a dramatic spike.
Royal LePage, in its forecast released Thursday, said that based on the momentum of the sales surge during the last half of 2009, and with mortgage interest rates continuing at near record lows, the first half of 2010 should remain strong.
"The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs," Royal LePage CEO Phil Soper said in a news release.
For Metro Vancouver, that should mean upward pressure on prices, along with a modest increase in sales compared with 2009, a year that saw sales and prices come back at double-digit increases from the downturn-year of 2008.
Chris Simmons, owner of Royal LePage Westside in Vancouver, said in an interview that the firm based its expectations for price increases on how prices performed over the last quarter of 2009.
"[We saw] stronger prices in the last quarter of 2009, and we take a look at that, try to temper the prices and come up with our best guess as to where prices will be for the full year of 2010," Simmons said.
Read the full article here.
- Joined
- Mar 24, 2009
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- 16,743
Judge overturns 38-Per-Cent rent hike for West End Tenants
VANCOUVER — A judge has overturned rent increases of up to 38 per cent for tenants of a West End building, finding the increase was "patently unreasonable."
B.C. Supreme Court Justice Linda Loo ordered Gordon Nelson Investments, which owns the Seafield building at 1436 Pendrell Street, to return the additional rent collected since April of last year.
The Seafield is a 14-unit heritage building, located four blocks from English Bay, where many of the tenants have lived for more than 30 years.
The landlord took ownership of the building on July 31, 2008. Six months later, the owner applied to increase the rent for 13 units by up to 73.3 per cent. The tenants opposed the rent increases because they said the statutory criteria for permitting additional rent increases above four per cent a year were not met.
A dispute resolution officer under the Residential Tenancy Act issued a decision on April 2, 2009, permitting the landlord to impose rent increases of between 15 and 38 per cent on ten units.
The tenants applied in court for a judicial review, which they won Tuesday.
Read the full article here.
VANCOUVER — A judge has overturned rent increases of up to 38 per cent for tenants of a West End building, finding the increase was "patently unreasonable."
B.C. Supreme Court Justice Linda Loo ordered Gordon Nelson Investments, which owns the Seafield building at 1436 Pendrell Street, to return the additional rent collected since April of last year.
The Seafield is a 14-unit heritage building, located four blocks from English Bay, where many of the tenants have lived for more than 30 years.
The landlord took ownership of the building on July 31, 2008. Six months later, the owner applied to increase the rent for 13 units by up to 73.3 per cent. The tenants opposed the rent increases because they said the statutory criteria for permitting additional rent increases above four per cent a year were not met.
A dispute resolution officer under the Residential Tenancy Act issued a decision on April 2, 2009, permitting the landlord to impose rent increases of between 15 and 38 per cent on ten units.
The tenants applied in court for a judicial review, which they won Tuesday.
Read the full article here.
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- Mar 24, 2009
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B.C.`s Recession over, but jobs picture will be slow to rebound
VANCOUVER — The worst recession since 1982 is over for British Columbia but it will still be a slow slog back for employment, according to Central 1 Credit Union`s five-year forecast.
B.C.`s economy should grow by 2.5 per cent in 2010, and continue strengthening, reaching 4.2 per cent in 2013 before subsiding back to 3.7 per cent in 2014.
And the major push will come from construction.
"A strong rebound in housing sales is driving higher housing prices and more investment in new construction," the forecast said.
Record low mortgage rates are bringing more first time-buyers into the market which in turn gets existing homeowners to move.
"Housing is one of those important contributors to growth," said Helmut Pastrick, the credit union`s chief economist. "As we transition from recession to recovery, historically housing has played a very important and significant role in the initial growth surge out of recession."
And it`s no different this time, except that the sales rebound has been the strongest and sharpest on record, thanks to record-low mortgage rates.
Read the full article here.
VANCOUVER — The worst recession since 1982 is over for British Columbia but it will still be a slow slog back for employment, according to Central 1 Credit Union`s five-year forecast.
B.C.`s economy should grow by 2.5 per cent in 2010, and continue strengthening, reaching 4.2 per cent in 2013 before subsiding back to 3.7 per cent in 2014.
And the major push will come from construction.
"A strong rebound in housing sales is driving higher housing prices and more investment in new construction," the forecast said.
Record low mortgage rates are bringing more first time-buyers into the market which in turn gets existing homeowners to move.
"Housing is one of those important contributors to growth," said Helmut Pastrick, the credit union`s chief economist. "As we transition from recession to recovery, historically housing has played a very important and significant role in the initial growth surge out of recession."
And it`s no different this time, except that the sales rebound has been the strongest and sharpest on record, thanks to record-low mortgage rates.
Read the full article here.
- Joined
- Mar 24, 2009
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- 16,743
Vancouver Home prices expected to jump 7.2% in 2010
Realty firm Royal LePage has come out of the gate in 2010 with the prediction Metro Vancouver`s home prices will inflate another 7.2 per cent this year, as long as the expected mid-year rise in mortgage rates isn`t a dramatic spike.
Royal LePage, in its forecast released Thursday, said that based on the momentum of the sales surge during the last half of 2009, and with mortgage interest rates continuing at near record lows, the first half of 2010 should remain strong.
"The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs," Royal LePage CEO Phil Soper said in a news release.
For Metro Vancouver, that should mean upward pressure on prices, along with a modest increase in sales compared with 2009, a year that saw sales and prices come back at double-digit increases from the downturn-year of 2008.
Chris Simmons, owner of Royal LePage Westside in Vancouver, said in an interview that the firm based its expectations for price increases on how prices performed over the last quarter of 2009.
Read the full article here.
Realty firm Royal LePage has come out of the gate in 2010 with the prediction Metro Vancouver`s home prices will inflate another 7.2 per cent this year, as long as the expected mid-year rise in mortgage rates isn`t a dramatic spike.
Royal LePage, in its forecast released Thursday, said that based on the momentum of the sales surge during the last half of 2009, and with mortgage interest rates continuing at near record lows, the first half of 2010 should remain strong.
"The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs," Royal LePage CEO Phil Soper said in a news release.
For Metro Vancouver, that should mean upward pressure on prices, along with a modest increase in sales compared with 2009, a year that saw sales and prices come back at double-digit increases from the downturn-year of 2008.
Chris Simmons, owner of Royal LePage Westside in Vancouver, said in an interview that the firm based its expectations for price increases on how prices performed over the last quarter of 2009.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Metro Vancouver`s Apartment Vacancy expected to shrink in 2010
Expect the relative spike in apartment vacancies Metro Vancouver experienced in 2009 to be a short-lived, recession-driven phenomenon, according to apartment-market expert David Goodman.
Metro Vancouver saw overall vacancy climb to a 10-year high of 2.1 per cent in 2009, compared with 0.5 per cent in 2008, Canada Mortgage and Housing Corp. reported in its winter vacancy report.
CMHC analyst Robyn Adamache said some seemingly contradictory factors combined to push the vacancy rate up. A rush of first-time homebuyers in recent years opened up a lot of rental units, but the recession crimped B.C.`s job market, which left a lot of would-be new renters still living with parents or doubling up with friends.
However, Goodman, a realtor specializing in apartment buildings with Macdonald Commercial Real Estate, said immigration was one factor that supported the rental market in 2009, and will continue to do so in 2010.
"I think immigration is going to be even better this year, and with the economy firming up, my prediction is that we will have a lower vacancy rate," Goodman said in an interview.
Read the full article here.
Expect the relative spike in apartment vacancies Metro Vancouver experienced in 2009 to be a short-lived, recession-driven phenomenon, according to apartment-market expert David Goodman.
Metro Vancouver saw overall vacancy climb to a 10-year high of 2.1 per cent in 2009, compared with 0.5 per cent in 2008, Canada Mortgage and Housing Corp. reported in its winter vacancy report.
CMHC analyst Robyn Adamache said some seemingly contradictory factors combined to push the vacancy rate up. A rush of first-time homebuyers in recent years opened up a lot of rental units, but the recession crimped B.C.`s job market, which left a lot of would-be new renters still living with parents or doubling up with friends.
However, Goodman, a realtor specializing in apartment buildings with Macdonald Commercial Real Estate, said immigration was one factor that supported the rental market in 2009, and will continue to do so in 2010.
"I think immigration is going to be even better this year, and with the economy firming up, my prediction is that we will have a lower vacancy rate," Goodman said in an interview.
Read the full article here.