The Vancouver Island real estate market has been heavily impacted by the pandemic, with low inventory and high price increases making it difficult for potential home buyers to relocate in 2023. This has caused considerable frustration among buyers who are struggling to find suitable housing. Click on 'Read more'
Statistics can provide helpful information based on our past, but it is impossible to predict future trends as market influences change daily. Despite the gloomy outlook of the recent press release, what is missing from the analysis is a comparative market price prior to the COVID pandemic. During this period, interest rates were low, making business and residential borrowing easy and cheap. Now, we must face a period of reckoning where these cheap loans will have to be paid back. However, those without mortgages may still be able to purchase homes in desirable locations like Vancouver Island, where property values remain relatively low compared to Vancouver and Toronto. Click on 'Read more' for November data from the Real Estate Board of Greater Vancouver (REBGV)
Since the start of the pandemic, many people have seen real estate as a viable career option, resulting in a boom in the market for Realtors. Unfortunately, Realtors are self-employed entrepreneurs and do not have the same protection as other employees, as they are commission-dependent. With mortgage rates on the rise, the stock market declining and supply chain issues, consumers are pulling back on spending, meaning Realtors, especially those who recently became licenced, will feel the effects of this pinch. Click on 'Read more' for an opinion piece, By Kira Mason, Gritty City Real Estate, Fringe Finance, Philadelphia USA
June 24 /2022 The Market is Crashing - - - no it is not! There is a lot of hype about the current market, especially in the USA. People are not buying homes due to high interest rates and increasing prices, also leading to vehicles being repossessed. However, the truth is that qualified buyers have not stopped buying. Sub-prime buyers who cannot afford a proper down payment and mortgage rates are not able to make purchases. Buyers with their finances in order have more time to shop and negotiate, as the influx of new listings in the market gives them more breathing room. The resale inventory in Vancouver Island is still 50% below what is considered a balanced market, making it a seller's market. Real estate professionals are still facing a lag of two to three days on their new listings, which would normally take 60-90 days to sell in a balanced market. US news, the internet and shows such as Stephen Colbert Late Nite are focusing on politics and trends for ratings, so it is important to look at the real market to understand which information is truth and which is hype. We still believe that hiring a competent professional is the best way to achieve the best results for money and dreams. Work with a Realtor, so a Realtor can work for you.
It is finally June, but the West coast weather does not feel like June. The news does not feel much better in real estate, as the interest rates have crept up, mortgage qualification is more difficult and for those people who need high ratio mortgages, mortgage insurance is taking a huge chunk of the monthly mortgage payment. Good news for buyers however, there are more property listings and a wider choice of available homes. The frenzy has subsided a bit, though waiting on the sidelines, hoping for a substantial purchase savings may not work. There has been a bit of price softening in the local market, but mostly the lofty hopes of a Unicorn buyer offering a substantial premium above the asking prices has changed. Yes, certain homes are still hot, because they are rarely available, but if you are looking at a fixer-upper, or a home in need of extensive updating, you might be in luck. We say that tongue-in-cheek however, as local builders are still crazy busy with current projects, and material and supplies are still in a supply squeeze. Approach the real estate market with a bit of caution, and work with your Realtor, so the Realtor can work for you. If you have a good working relationship, you will find the home of your dreams and expectations.
Though spring has arrived, it seems our favored spring weather has not. It seems we are getting our April rains, and East of us is getting winter snow. I would rather be here. We saw a few weeks of listing flurry, bringing out meager 100 listings up to 140 for our area. This is still much below the 400 - 500 listings that defines a balanced market. Prices are not adjusting to the increased listing inventory, but rather the desirable homes have been snapped up as we leave Easter weekend. USA tax deadline was April 18, and for some reason, April 20 is projected to be an inflection point, to the upside. CLICK on "Read more"
February 2022 has brought new concerns to our financial wellbeing, with the current stock market volatility, skyrocketing gold prices, Russian military action in Ukraine and people still dealing with this pandemic crisis. International borders are opening up, air travel is climbing, transportation and supply of materials and consumer goods is improving, but we still are having shortages in raw industrial material and energy. Oil prices are heading into unknown territory while refinery production can not keep up to demand. There has been an abundance of natural weather catastrophes with forest fires, flooding, wind and cold weather events. The world is feeling a little topsie-turvy. What will happen with Vancouver Island real estate?
The 2021 real estate market is spilling into 2022 with very little hope for change. Even with the threats of increasing mortgage interest rates, and other taxes, fees and a market stifled by the ongoing pandemic, buyer are thrashing around every listing, and submitting challenging offers. Please CLICK on "Read more" for a January sales chart and our speculative opinion.
"Real estate prices can not get any higher, the prices are going to collapse soon." Sound familiar? These stories have prospered as much as real estate prices. On topic, will foreclosure activity increase to where bargains can be had? Well, that also isn't quite true or feasible either. Real estate is a market commodity where prices fluctuate depending on demand, as Sellers and Buyers set the values.
Where are home prices headed in the next five years?
The current home price increases are not isolated to North America, but are also occurring in many of the 38 countries that make up the OCED. The UK, South Korea, New Zealand, CANADA, and Turkey top the list. Many investors, journalists, banks and financial consultants all try to predict market movements, and often fail.
The Covid-19 Pandemic has distracted our attention from the realities of Canadian living, living standards and our fractured labour market. Pricing for real estate, goods and services and even a cup of coffee is all over the map.
Often a real estate purchaser enters their new home to find many surprises, some are delightful, and some are depressing. Buyers and Sellers should take note of what constitutes a Chattel in a real estate transaction. CLICK on "Read more" for an outline.
Everyone loves to shop for a deal, and claim bragging rights. It is human nature. Over the course of my career in real estate sales, some deals just will not come together while sellers and buyers argue over incidental chattels. We are talking about properties valued at $400,000 and even $800,000 and the only division is that ceramic plant pot or LED 50" television set. CLICK on "Read more" for the rest of the article.
This Blog is in reference to a recent Globe and Mail article, which can be found online: https://www.theglobeandmail.com/canada/article-real-estate-sales-tactics-under-fire-as-canadian-home-prices-spiral I can not answer this question, but here are a few ideas to consider from a REALTOR's point of view. 1) Homes are not something you buy off the shelf at a store, and when inventory is low, the store reorders more of the same product. Real estate is location dependent, and desirability and a fat wallet determines the value. 2) REALTORs do not set the selling price, as that could be considered an issue with the Competition Act. REALTORs can only research past sales to decern a probable market price, but it is the Buyer who actually decides the final price. 3) Sellers do not set the selling price, as proven by over-priced properties that languish on the market. Location, condition of property and buildings is a fluid assessment, in that no two properties are identical. 4) It is suggested that all offers be open to viewing by all prospective Buyers. This creates a scary situation in that every offer on the table can be upped. Closed offers creates a barrier and puts each Buyer on the same level, in they can put their best offer forward, based on their own research and needs. There are numerous ways to achieve a real estate sale or a purchase, and using a REALTOR and the MLS is just one way. Often the disgruntled will lobby for change based on their personal experiences. However, as a Buyer, it is still their own responsibility to fact check, research and ultimately make a final decision. Buying real estate is not as easy as buying a jug of milk. Click on Read More to view the Globe and Mail Article.
In our local area, time and time again, offers to purchase a new home, subject to financing fails. There is a lot of frustration not only for home buyers in our current market, but also for REALTORS who put in hours and hours of research, effort and mountains of paperwork, only to be trumped by a Cash Offer without any Subject to Sale clauses.
With all the chatter about real estate listing shortage, one glaring fact is shown in the following graph. As we navigate the current pandemic restrictions and travel restrictions, the difference in available listings and the immediate sales graphic lines, are nearly overlaid, leaving many buyers standing on the sidelines. In a few examples, buyers are nearly in panic mode as some are making financing-free and subject-free offers to nail down a home.
Many people start their real estate education by visiting Google, Realtor.ca and other web sites. However, real estate transactions have become very regulated and quite complicated in British Columbia, Canada. Buyers and seller often feel over-stressed making Johnny-on-the-spot decisions, and it has never been more stressful than during 2020.
In the current 2021 Qualicum Beach area market, many choice homes are receiving tens of viewings and multiple offers. Many of the prime offers have been 'cash' purchases, offers with no subject-to-sale clauses. A recent situation happened where many offers were nearly identical cash offers, the only difference was the deposit. The successful and accepted offer had a substantial Deposit declared. In this situation, once the offer has been accepted, the binding deal would complete within weeks. Why didn't other offers include a substantial Deposit, and why does it matter?
What is Poly-B Plumbing? UPDATE: 2,000 sqft two story home, QUOTE to replace Poly-B = $25,000 CAD July 2022 Poly-B, also referred to as Polybutylene, is a flexible grey pipe used in hot water systems and residential plumbing. It was manufactured in between the years of 1985 and 1997 because of its flexibility, low cost, and ease of installation. It is estimated that in Canada alone there are over 700,000 homes that have had this piping installed prior to it being discontinued. Insurance companies generally require full replacement of Poly-B due to aging factors. It would be wise to research this issue before presenting an offer or contemplating a sale of a home.
Many homes for sale are generally in good condition, whether 100 years old or brand new. Many purchase offers contain conditions of sale based on financing, building inspection, geological concerns, and water and sewage issues. However, as shown in the current 2020 market, often an offer to purchase contains a cash offer with no 'subject' conditions.
As real estate prices continue to climb, one has to wonder either how much higher will prices go, or are we in a bubble resulting in huge price drops? In many cases, either answer is not relevant when there is a need for housing. Click 'Read More' for one explanation that can not offer a decisive answer.
Question: Will a cash offer provide more leverage when buying a home?
May 19/2020 CMHC President E. Siddal predicted a housing price drop between 9 - 18% over the coming twelve months to May/2021. It is now September/2020, nearly four months later, and prices in Canada have not dropped, though a few higher end listings have undergone price haircuts, to come back to fair market value. In the Vancouver Island market, there has been very little reprieve in home pricing, with a robust market, tight listing inventory and with the unknown factors of the Covid-19 pandemic some buyers are still wondering, "when will prices drop?"
Millenials... living in mom and dad's basement are coming into their thirties and maybe so is their desire to live in a single family home. Of course everyone would love their own safe space in this world, and maybe living in mom and dad's basement has driven their desire to avoid condominiums, apartments and row homes, and are striving to own their own piece of land.
UPDATE NOTE: Aug26/2020 Our listings were absolutely current two days ago, but half of these listings are already UNDER OFFER. Pent up demand is exploding. With the after-effects of the Covid-19 pandemic, many businesses have either shut down or greatly reduced output, so building materials are in short supply. The supply problem will be greatly affected by California wildfires and storms along the Eastern coast. (disclaimer, we hold WEF shares, which have jumped on this recent news)
VIREB (Vancouver Island Real Estate Board) switched to a new property data and REALTOR user system at the end of July/2020. As a result, the new MATRIX system has been adopted from the Victoria area and applied to the rest of Vancouver Island (VIREB). This conversion process has left VIREB REALTORS scrambling to serve their clients, try to process listings and sales documents. At the moment, STATS for VIREB are produced in a slightly different format? As all hands on deck are busy assisting REALTORS, we will attempt to figure out how to proceed on our website with providing real estate NEWS and STATS. Hopefully we will configure our site to provide relevant information and explanations to assist our users. Please contact us if you feel we have not provided information helpful for your needs.
One of the greatest challenges during the Covid-19 lockdown has been finding affordable housing on Vancouver Island. It has been forecast for many years the retirement surge will bring more shoppers to Vancouver Island. Strata properties are in high demand, though the industry and management of stratas is generally quite challenging, people still prefer the autonomy of single family homes. Homeowners prefer to make the final decisions on maintenance, repair and those wonderful upgrades and decision by committee is often labourious.
Many people start their home shopping by looking at price, to find the best value. The simple fact is, most homes at the lower price points, do not have current features most people want, they are not usually current homes.
Port Alberni is a forgotten jewel of Vancouver Island. When the mills were running full tilt, Port Alberni was a prosperous town. But, the mill outputs have decreased and the local residents are still lamenting the loss of activity and economic prosperity. However, Port Alberni is also the forgotten city that is slowing being re-born.
HGTV populates their schedule with many renovation adventure show series. While fundamentally on target with the value added benefits of renovating, upgrading and spiffing up a home, it is quite a different process to renovate for profit.
*** June/2020 interesting update: Recent offers to purchase have gone multiple, with prices as high as $60,000 over asking in Qualicum Beach. *** You betcha, COVID-19 has created some havoc, but here on Vancouver Island, home for this generation of retirees, we are going to be back to business as usual in a very short time. Of course this optimism is tethered by a potential sudden shock of this pandemic, so we shall take our time and hope for the best.
An inquiry to our website reminded us that some listings have not been updated in the past month, as listing status have been very active with SALES, RELISTINGS and WITHDRAWLS.
What is the real estate market doing right now? What should you do? What will other people do? Hopefully, we have a bit of a light-hearted look at the current situation.
As posted by cheknews.ca, there were thirteen incredible pink super moon pictures, one of which was taken by David Chang in Cowichan Bay. We live on Vancouver Island to enjoy the lifestyle, the climate and to enjoy all the important little things in life. Here in Qualicum Beach we have amazing natural beauty and prolific vegetation and wild life. No wonder many Canadians want to move here. Click on 'Read more (PDF)' to view a copy of the moon shot.
NANCY SMITH is set up to LIST or provide a Virtual tour during this pandemic situation. We have various tools and rules to try and keep everyone safe while real estate transactions have to transpire.
Realtors must implement safety rules and guidelines to assist Buyers and Sellers who have contractual obligations. We have been deemed an 'essential service' during this global pandemic. Therefore many agencies are constantly updating information daily, to help contain this pandemic and assist people with their real estate transactions. Even though we are in a 'lock-down' state, we are devising and utilizing modern technology to accomplish our duties. In part for Sellers, we hope to implement comprehenive Video tours, keeping occupant and our safety a priority. Paperwork can be done electronically and for any face to face requirements, we shall attempt to keep all contacts safe. Thank you for your patience and understanding as we wade through the consequences of this global pandemic.
If one understands icebergs floating in the ocean, and that cruise ships navigate at a distance, it is because the Captain knows the majority of the ice can not be seen. If we keep this knowledge as reference, we see how the current pandemic affects life in general and how it will affect real estate sales on Vancouver Island.
A gentleman phoned me today asking about my take on the Coronavirus and he was curious about my opinion. The Coronavirus and the accompanying concerns are unknown. In North America we are in the early stages of the virus development, and we have yet to understand the reaction people, businesses and government will have.
Concerned posted by the Town of Qualicum Beach regarding undocumented homes are now being monitored.
My husband was commenting on a 'discount broker listed' property for sale near our home in Qualicum Beach. He was amazed that there seemed to be no action for months on this property. My husband thinks he is an astute investor and money manager so he regularly observers other people's money habits.
Real Estate agents are required to fill out FINTRAC forms to monitor potential money laundering problems.
Press Release today: Today, Minister of Finance, Bill Morneau, announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the “stress test.” These changes will come into effect on April 6, 2020. The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%. A few quick mortgage facts:
There are benefits and drawbacks to buying foreclosure properties, however the rewards can be well worth it.
What makes homes and property affordable? What does affordable mean?
Buying a home requires resources, so it is best to get your 'ducks in a row' first.
Condo strata insurance is facing major headwinds and potentially could weaken the Condo market.
No, we are not encouraging people to move to our sweet town, but as an enthusiastic resident who vacationed here as a child and moved here in 2014, I can not imagine living anywhere else.
Predicting how human lifestyles will change is difficult, but history has proven a continual increase in world population to the tune of 7.5 billion, with two deaths and four births every second. As population continues to grow, real estate continues to be a challenging market because we are confined to existing land mass.
Confusion reigns when Property Assessment values have declined, but according to the Vancouver Island Real Estate Board(VIREB), property prices have INCREASED in 2019!
A real estate agent can reduce client stress and smooth the transaction process.
I suggest when considering large purchases like property, you should hire a local expert, because they live here, and they have their neighbor's interest at heart.
Greater Vancouver is adjusting to market shocks caused by federal mortgage rules and provincial tax policies. Vancouver Island however is enjoying a sustained vibrant market hampered by the lack of quality listings. Qualicum Beach is somewhat untouched by development projects that has expanded the housing base in Parksville. Market pricing in Qualicum Beach can exceed Assessments by as much as $100,000.
Every day is beach day in Qualicum Beach but each summer in July there is also a day of special events to celebrate the beauty of our beach! Spend the afternoon on the Qualicum Beach waterfront having fun enjoying the ocean, sun, activities & food!
Climate change - Now Salal appears to be dying back too along with other tree species in the Qualicum Beach Parksville Nanoose Bay area, as we head into likely our 5th year of summer drought
The real estate market in the Qualicum Beach Parksville Nanoose Bay Fairwinds Bowser Deep Bay area has levelled out and shifted towards a more balanced market over the summer and into the fall. In November, about 20% of listings sold in 1 week with about 50% selling in under 1 month. This is slower than it has been. We see a great gray wave of Boomers (more like a gray tsunami...) retiring to the region. At RE/MAX Anchor and RE/MAX First, our full-time REALTORS have the highest number of sales per REALTOR when compared to our local competition. Outstanding Agents...Outstanding Results.
The British Columbia Real Estate Association (BCREA) reports that residential unit sales across the province were down by 26.2% compared to the same month last year. The average residential price in BC was down 4.1% from October 2017. Total sales volume showed a decline of 29.3% from October 2017. The BC housing market continues to grapple with tougher mortgage qualifications in October. However, more modest consumer demand has led to a much-needed increase in the supply of homes for sale, said Cameron Muir, BCREA Chief Economist (November 12, 2018).
The Qualicum Beach Parksville Nanoose Bay Fairwinds & Area real estate market shifted towards a more balanced market over the summer and now into the fall of 2018. Local home sales continue at a slower pace compared to last year. This bodes well for buyers. Contact Nancy to find out more.
The Qualicum Beach Parksville Nanoose Bay Fairwinds & Area real estate market has seen a shift towards a more balanced condition over the July, June & May period. The number of single family home sales has dropped by 30% with sales dollars down by 18% compared to the same period last year. The number of listings of single family homes is up by 35% compared to last year while the number of listings among all types of properties is up by 23%. It appears as though we may have begun a trend towards more balance between supply and demand, causing less upward pressure on prices.
In May, the overall number of listings was up by about 20% over May of last year. It appears as though we may have begun a trend towards more balance between supply and demand, causing less upward pressure on prices. It's important to price your property competitively given the shifting dynamics in the real estate market.
Forests are in the process of re-organizing themselves to a new set of conditions. See the link to today's PQB newspaper story Trees are Adapting to Climate Change.
Walk the Heritage Forest trails in Qualicum Beach and take a break from real estate. See the link to today's PQB newspaper story Heritage Forest Trails.
Qualicum Beach Parksville real estate is being taken up quickly by Lower Mainland buyers who have arrived, en masse.
Pre-school Munchkins recently planted trees in the Heritage Forest. Shown here are Nancy Smith of the Brown Property Preservation Society with Munchkins Finnley and Zachary Doerksen, and their mom Evelyne. The Brown Property Preservation Society, with me as President, invited them to plant a few trees. This was the very first day of the Preschool Munchkins going out into the community to explore nature. So I thought it would be great to have them plant a few tree seedlings.
Conjuring a luxury kitchen takes ingenuity when the finances just don’t measure up. But spotlighting a few areas can really boost an uninspiring kitchen. House Beautiful has these tips.
Kids standing on a 5 foot Douglas-fir stump in the Heritage Forest, Qualicum Beach. Tom Whitfield has asked the kids to create a 500 year old historic timeline which will be displayed on the large slabs cut from this stump in the Heritage Forest. It will eventually be on display at the kiosk in the Forest.
Tom Whitfield explaining to the kids who are going to do a 500 year-old timeline project for the Heritage Forest in Qualicum Beach.
Nice break from selling real estate in Qualicum Beach while doing some good work with cheerful volunteers in the Heritage Forest.
Another great day to sell real estate here in beautiful Qualicum Beach on Vancouver Island, BC.
Today's Baby Boomer real estate buyers take their time and make decisions carefully. They will peruse their options, seek out the best value and do their research. They are not an easy sell. For them, it is about settling in for retirement. For many, it is about down-sizing. Although Boomers still want space, luxury with quality finishing, good decks and/or patios for outdoor relaxation and entertaining plus always...a great kitchen!
Watch this 2014 RE/MAX real estate video called Dream with Your Eyes Open, just launched at our Vegas convention and for nationwide distribution. Dream with Your Eyes Wide Open
Here's a parable about Life... Three Stonecutters - One day a traveller, walking along a lane, came across 3 stonecutters working in a quarry. Each was busy cutting a block of stone. Interested to find out what they were working on, he asked the first stonecutter what he was doing.
Watch this with your morning coffee to get you revved up! Get You Started!.
This fast-moving video highlights the success of REALTOR.ca in each province while featuring some gorgeous images from across the country. The scenery is quite good and I thought you might enjoy taking a look. Certainly 2012 was a record-breaking year for use of REALTOR.ca across Canada.
VOLUNTEERING - Many people believe they don't have the time to get personally involved or that they have nothing to offer. Everyone has something to offer.
Some of you may be interested to know that we have had a family of Great Horned owls in the west side of the Heritage Forest here in Qualicum Beach. We have been seeing 1 adult with 2 chicks. Now the chicks are about 1/2 the size of the rather huge adult. There are always several Barred owls in the eastern portion of the Forest but the Great Horned owls are new, at least in recent times. Seems they have their territories worked out. It's worth noting that the rabbit population in the neighbouring residential area has been thinned out significantly. Hey, biological controls! See you in the Forest.