Al Bainbridge : Latest Blog Posts

Sales to Active Listings Graph

Mon, 09 May 2011 19:58:00 GMT

This graph shows how many sales occurred last month compared with the total amount of all property listings on the market. This includes houses acreages, strata, etc.

April home sales return to balance in April

Mon, 09 May 2011 19:49:00 GMT

(Surrey, BC) – The Fraser Valley Real Estate Board processed 1,516 property sales on its Multiple Listing Service (MLS®) in April, a decrease of 15 per cent compared to 1,793 sold during April of last year, and a decrease of 17 per cent compared to March’s 1,818 sales.

Sukh Sidhu, president of the Board, explains, “April’s sales are pretty typical for that month over the last two decades with the 20-year average being 1,580, but softer than what we saw earlier this year. “The Fraser Valley market was busier than normal in February and March due in part to the tighter credit conditions that kicked in on March 18, plus you add into the mix a focus on the federal election and you get an April that trends back to normal conditions.”

However, Sidhu says certain individual markets within Fraser Valley have remained active. “For the third month in a row, sales of single detached homes in White Rock/South Surrey have accounted for almost a quarter of all detached sales in the region compared to the 15 per cent share that area typically garners.” “Benchmark prices of detached homes in that area have increased by 11 per cent in the last three months compared to 3.9 per cent across the Fraser Valley as a whole, emphasizing the need for local expertise no matter where you’re thinking of buying or selling.”

April finished with 5 per cent more active listings on the MLS® than it had in March – 9,697 compared to 9,228 – however, 9 per cent fewer than the 10,635 listings that were active during April of 2010. The Board received 2,918 new listings in April, a decrease of 14 per cent compared to March and a decrease of 22 per cent compared to the 3,760 new listings received in April 2010. Regarding prices, in April, the benchmark price for Fraser Valley detached homes was $525,510, an increase of 1 per cent from the April 2010 price of $520,423. The benchmark price of townhomes was $332,992 in April, an increase of 2 per cent compared to $326,367 in April 2010. The benchmark price of apartments was $252,689 in April, a 1.3 per cent increase compared to $249,453 in April

Source: Fraser Valley Real Estate Board.

Flexible Down Payment Options

Mon, 09 May 2011 19:39:00 GMT

With interest rates still sitting near historically low levels – with nowhere to go but up – now is an ideal time for first-time homebuyers to embark upon homeownership.

But if low interest rates still don’t tip the scales on your decision to enter the property market, perhaps the information below will.

Down payment

The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments.

Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.

Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.

Under the RRSP Home Buyers’ Plan, first-time homebuyers can withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.

Making an informed decision

There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you need, therefore, is education and coaching as opposed to being bombarded with more information.

That’s why it’s important to speak to me – a mortgage professional – in order to get a pre-approval prior to setting out home shopping. This will help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. I can provide you with real examples that can go a long way in showing you what it really costs to buy a home in your area versus what you’re currently paying in rent.

You may be pleasantly surprised by how manageable it is to start building equity in your own property as opposed to helping pay someone else’s mortgage each month!

As always, if you have any questions about down payment options or your mortgage in general, I’m here to help!

Home Maintenance Budgeting

Mon, 09 May 2011 19:27:00 GMT

First, buyers should understand the 1% rule. This rule postulates that normal maintenance on a home is about 1% of the value of the home per year. For example, a $250,000 home would require $2,500 per year to maintain. This would be enough to replace the roof covering...and then, a few years later, to replace a failed hot water tank...and then a few years more until a new central air system is required.

Then there is the 3% rule. Some experts say that home buyers should plan on spending 3% of the value of the home in the first year of ownership. This is because new homeowners will most likely have to buy drapes, blinds, a washer and dryer, a stove, maybe even a new roof covering. Also, new homeowners often customize the environment to their taste, so they need to budget for repairs, replacements and maintenance.

In addition, most home components have fairly predictable life cycles. For example, the typical life cycle of a high-efficiency furnace is 15 to 20 years. What this means is that most high-efficiency furnaces last between 15 and 20 years.

One way to know the extent of the maintenance needed and the costs to repair and/or replace items is to have a home inspection conducted. Home inspectors are required to let the buyer know if a component is significantly deficient or if it is near the end of its life cycle (service life), and a reputable home inspection company may offer up-to-date repair-cost guides to help clients with their planning.

Home inspectors work with Realtors and buyers to help them understand the issues that are found in the home, regardless of age, offering the right perspective and objective information. Home buyers need to understand that it's normal for items in a home to wear out. This should be regarded as normal "wear and tear" and not necessarily a defect.

A good home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service, repair or replacement.

For example, consider a home inspection that uncovers that the heating system is old and requires replacement. A home buyer may see this as a huge problem. However, this problem may be the only item in the home that requires attention. If a buyer were to look at this situation in perspective, this home could be well above average-a home merely requiring a new furnace.

A good home inspection provides objective information to help the buyer make an informed decision. Knowing what items need to be budgeted for repair or replacement will help home buyers plan or negotiate better and not be stuck with unexpected costs of hundreds, or even thousands of dollars in the long run. Also, fixing these items will make a marked improvement on the performance of a home and minimize issues that could affect its future integrity...and value.

Provided courtest of:

Bjorn Rygg

Registered and Certified Home Inspector

Professional Home Inspections in Langley, White Rock and South Surrey

We know our stuff!

Bjorn.Rygg@pillartopost.com

Top 24 grants and rebates for property buyers and owners

Thu, 21 Apr 2011 19:25:00 GMT

1. Home Buyers' Plan

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time.

2. GST Rebate on New Homes

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.

1.800.959.8287

3. BC New Housing Rebate (HST)

Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250.

4. BC New Rental Housing Rebate (HST)

Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit.

5. BC Property Transfer Tax (PTT) First Time Home Buyers' Program

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000.

6. First-Time Home Buyers' Tax Credit (HBTC)

This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2010) x $5,000. For the 2010 tax year, the maximum credit is $750.

7. BC Home Owner Grant

Reduces school property taxes by up to $570 on properties with an assessed value up to $1,150,000. For 2011, the basic grant is reduced by $5 for each $1,000 of value over $1,150,000, and eliminated on homes assessed at $1,264,000. An additional grant reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. This is reduced by $5 for each $1,000 of assessed value over $1,150,000 and eliminated on homes assessed at $1,319,000+.

8. BC Property Tax Deferment Programs

Property Tax Deferment Program for Seniors: Qualifying home owners aged 55+ may be eligible to defer property taxes.

Financial Hardship Property Tax Deferment Program: Qualifying low-income home owners may be eligible to defer property taxes.

Property Tax Deferment Program for Families with Children: Qualifying low-income home owners who financially support children under age 18 may be eligible to defer property taxes.

9. Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants

This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites.

10. CMHC Mortgage Loan Insurance Premium Refund

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations.

11. Energy Saving Mortgages

Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver Mortgage, may qualify for a rebate of $300 to their RBC account.

12. Low interest renovation loans

Financial institutions offer 'green' loans for home owners making energy efficient upgrades. Vancity's Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for 'green' renovations. RBC's Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 renovation on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution.

13. LiveSmart BC: Efficiency Incentive Program

Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with FortisBC and BC Hydro. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider.

14. BC Residential Energy Credit

Home owners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST.

15. BC Hydro Appliance Rebates

Mail-in rebates for purchasers of ENERGY STAR® clothes washers, refrigerators, dishwashers, or freezers.

16. BC Hydro Fridge Buy-Back Program

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition.

17. BC Hydro Windows Rebate Program

Pay no HST when you buy ENERGY STAR® high-performance windows and doors. Call 604.759.2759 for a free in-home estimate.

18. BC Hydro Mail-in Rebates/Savings Coupons

To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR® cordless phone. Check for new offers and for deadlines.

19. FortisBC Rebate Programs

A range of rebates for home owners include a $50 rebate for upgrading a hot water tank, $150 rebate on an EnerChoice fireplace and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR® heating system (each good to December 31, 2011).

20. FortisBC Efficient Boiler program

For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits.

21. Vancity Green Building Grant

In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies.

22. Local government rain barrel programs

Many local municipalities sell rain barrels and downspout kits to help you collect water for watering your garden or washing your vehicle(s). Contact your local municipality's Engineering department for information.

23. Local government water conservation incentives

Your municipality may provide grants and incentives to residents to help save water. For example, the City of Abbotsford, District of Mission and Township of Langley offer rebates for low-flow toilets. Some municipalities sell indoor and outdoor water saving kits. For more information, contact the municipal Engineering departments.

24. Local government water meter programs

Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. For example, Delta and Surrey have programs and other municipalities may soon follow. Visit your municipality's website and search "water meter" to find out if there is a program.

Source: Adapted from the Real Estate Board of Greater Vancouver

CMHC Metro Vancouver Housing Starts for Feb 2011

Thu, 10 Mar 2011 19:46:00 GMT

VANCOUVER, MARCH 8, 2011 — Canada Mortgage and Housing Corporation (CFvIHC) reports
that there were 1,414 housing starts in the Vancouver Census Metropolitan Area (CMA) in
February, a slight increase from the same month a year ago. Strength in multiple unit housing
starts, which include apartments, town homes and semi-detached homes, accounted for the
majority of housing starts.

“Over 85 per cent of housing starts were multi-family in February,” noted Robyn Adamache.
CMHC’s Senior Market Analyst. The majority of these starts were in Richmond, Coquitlam, and
Surrey, areas with easy access to major transportation routes and public transit and home prices
that are less expensive than found in the urban core, specifically the City of Vancouver.
The Abbotsford CMA had 25 housing starts in February, down slightly from 37 starts recorded
during the same month a year ago.

Nationally, the seasonally adjusted annual rate1 of total housing starts increased to 181,900
units in February, from 170,600 units in January. In British Columbia, February’s seasonally
adjusted rate of urban housing starts moved lower to 24,100 units from 25,600 units in the
previous month.
As Canada’s national housing agency, Cl1HC draws on 65 years of experience to help
Canadians access a variety of quality, environmentally sustainable and affordable homes.
CI1HC also provides reliable, impartial and up-to-date housing market reports, analysis and
knowledge to support and assist consumers and the housing industry in making vital decisiOns.
For more information, and to download CMHC’s housing reports, please visit CMHC’s website at
www. crnhc. ca/housi ng marketinformation or call 1-800-668-2642.

Feb 2011 Housing Price Index

Fri, 04 Mar 2011 17:48:43 GMT

Here is a graph showing the indexed market value of a standardized house prices . 2001 equals 100.

If you're interested in receiving a full statistics package, containing tabular data and a number of graphs, on a monthly basis, please contact me at albainbridge@remax.net.

February 2011 Market Update

Fri, 04 Mar 2011 17:12:00 GMT

EARLY SPRING SURGE IN SALES & NEW LISTINGS IN FRASER VALLEY

(Surrey, BC) – The Fraser Valley Real Estate Board processed 1,279 sales on the Multiple Listing Service® in February, an increase of six per cent compared with 1,204 sold during February 2010, and 53 per cent more than the 834 listings that sold last month.

Sukh Sidhu, Board president, confirms the market is more active earlier than expected. “Fraser Valley REALTORS® are busy. We sold 659 detached homes last month compared to 398 in January. We also saw the greatest amount of new inventory come on stream since last summer.

“We think one of the drivers is the change in mortgage rules that is coming up on March 18. Some clients have asked that their sale complete before that date. Plus, our REALTORS® are telling us that almost fifty per cent of their buyers paid less than 25 per cent as a down payment for their home purchases during the first half of February. A 35-year amortization could be more attractive to those buyers.

In February, the benchmark price for Fraser Valley detached homes was $514,161, an increase of 1.2 per cent from the February 2010 price of $508,136. The benchmark price of Fraser Valley townhouses in February was $316,578, a 2.5 per cent decrease compared to $324,708 in February 2010. The benchmark price of apartments remained on par year-over-year going from $245,879 in February 2010 to $245,519 in February 2011.

The MLS® received 3,038 new listings in February, an increase of 15.4 per cent compared to the volume received in January and 6.2 per cent more than the 2,879 new listings received during February last year. Last month finished with 8,680 active listings, an increase of 2.3 per cent compared to the 8,485 active listings available during February 2010, and 12.4 per cent more than were available in January.

New property listed in Willoughby Heights, Langley

Fri, 28 Jan 2011 16:14:57 GMT

I have listed a new property at 19725 68B AVE in Langley.

See details here

This home has it all! Quiet CDS with a Panoramic view of Langley & Mt. Baker, backing on to a greenway. Extra games room with a wet bar on the main floor as well as a traditional dining room and living room. Fully finished bsmt, ready to suite. Double doors into and amazing master bedroom suite with a deluxe 5 pce bath and a dream walk in closet. High quality finishing and ready to move into.

New property listed in Langley City, Langley

Fri, 28 Jan 2011 16:14:56 GMT

I have listed a new property at 4795 198C ST in Langley.

See details here

This unique heritage home has been lovingly restored & updated. Inside are original features like the stained glass & the antique F/P. The Ckickadee sunroom for leisurely reading. The 3 updated baths with antique style fixtures. Updated kitchen w/new craftsman style caibnets, breakfast bar & E/A. Outside you can sit on the shady back deck & enjoy the birds in the beauifully landscaped yard or bask in the sun on the roof top deck w/a view of Mt. Baker. Plumbing, electrical roof & eaves were replaced 6 years go. Bright spacious master bdrm suite occupies the entire top floor w/a walk-in closet & large ensuite with double sized glass shower. Full bsmt has a bdrm & full bath with lots of room left unfinished for your ideas. Oversized double garage plus attached work area. Must be seen to be appreciated. All measurements are approx. and should be verified if important.

Open House. Open House on Sunday, January 30, 2011 2:00 pm - 4:00 pm

Fri, 28 Jan 2011 16:14:56 GMT

Please visit our Open House at 4795 198C ST in Langley.

See details here

Open House on Sunday, January 30, 2011 2:00 pm - 4:00 pm

October 2010 Housing Market Graph

Thu, 04 Nov 2010 19:59:00 GMT

Here is a graph showing Sales (gray), New listings (burgandy) and total active listings (white). This shows the relationship of these factors, over time.

If you're interested in receiving a full statistics package, containing tabular data and a number of graphs, on a monthly basis, please contact me at albainbridge@remax.net.

Market Update for October 2010

Wed, 03 Nov 2010 17:54:00 GMT

FRASER VALLEY HOUSING MARKET “GETTING BACK TO NORMAL”

(Surrey, BC) – Fraser Valley’s real estate market moved towards balance in October as inventory continued to decrease and sales and prices remained stable.

A total of 1,014 sales were processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® in October, a decrease of 3 per cent compared to 1,044 sales in September and a decrease of 40% compared to 1,704 sales in October of last year.

Deanna Horn, FVREB President, says, “With help from near record low mortgage rates and a steady decrease in the supply of homes, we’re getting back to what I call a ‘normal’, balanced market. “However, sellers should be aware that demand for homes is strong, yet selective. Buyers in the Fraser Valley recognize that selection, although dropping is still generous and they’re looking for properties priced competitively. Even with carrying costs remaining stable, the affordability threshold is a factor.”

The Board received 2,125 new listings last month, a 12 per cent decrease from September and a 25 per cent decrease compared to October 2009. The Board finished October with 9,561 active listings, 4 per cent fewer than in September and an increase of 9 per cent compared to the 8,807 properties available in October 2009.

Horn adds, “When supply and demand move into balance, prices can become a real ‘sticking point’ underlining the importance of hiring a professional REALTOR® who knows your local market and can provide detailed comparisons to ensure your home is priced competitively.”

The benchmark price for Fraser Valley detached homes in October was $505,759, down 0.3 per cent compared to September and 3 per cent higher compared to $491,128 in October 2009. The benchmark price of Fraser Valley townhouses in October was $319,058, a 0.9 per cent decrease compared to September and a 2.2 per cent increase compared to October 2009 when it was $312,339.

Year-over-year, the benchmark price of apartments increased 0.2 per cent going from $240,048 in October 2009 to $240,542 last month and 0.4 per cent higher compared to September 2010.

This is a publication of the Fraser Valley Real Estate Board