There have been massive amounts of inventory gains and not nearly enough sales to keep up, mind you, if a home is priced right, it will still fetch multiple offers (I was just in one last week). I know you have all heard this before, because it is the same old supply and demand talk. Supply up, demand down, price down.

That said, you all have another great opportunity to buy a home in the Fraser Valley, again the opportunity to get into the market for the first time or sell your smaller home and move into a bigger one to make room for a growing family has once again returned to help you achieve you real estate goals.

Whether we only see this for the summer time is still to be determined, as for now, why wait.

HST only applicable on new housing construction, and service fee’s.

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Inventory is on the rise which is great news, for buyers. It means you have selection and most likely a fair bit of bargaining power, which is what you want as a buyer, right? So we are back into our little supply and demand graph again, supply up, demand down, price down. Supply down, demand up, price up. So remember when putting your house up for sale, your home is entering into a competition and to when that competition you need to be the best value on the market. Here are a few quick numbers:

Average detached home price for the Fraser Valley was up 10.6 percent over May 2009 going from $465,939 to $515,375 and average days on market where a modest 43 days.

Condos there was a 8.6% increase over May last year and an average DOM (days on market) of 51 so if you are thinking of selling that condo just be prepared that it may sit on the market a little longer due to the large amount of inventory. Rest assured as long as it is priced right it will sell.

For the full stats package please view Fraser Valley Stats: May 2010

For more information or specific questions about buying a home, selling a home or investing in real estate please contact me directly at chris@chrispenner.com or by phone 604.807.9020

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HST myths vs. facts

Here are some common public myths about the HST and how it applies to real estate:

MYTH: The HST applies to homes that ‘look and feel’ new – one or two years old and listed for the first time on the MLS® after having been sold once by the developer.

FACT: The HST applies to new homes being sold for the first time and homes that have been substantially renovated (90% or more), similar to the current application of the GST on new homes. The purchase agreement has to be signed after November 18, 2009, with possession dated on or after July 1, 2010.

MYTH: The HST is a new tax burden of 12 per cent on new homes worth more than $525,000. A typical new detached home in White Rock ($800,000) will cost $96,000 more after July 1, 2010 (not even factoring in the Property Transfer Tax).

FACT: After July 1, 2010, a new $800,000 home in White Rock will cost $11,510 more than it would have cost on June 30. First, the 5 per cent GST has always applied to new homes. Second, the provincial HST rebate of $26,250 is available for the purchase of all new homes worth more than $525,000, even much higher-priced homes. See the following calculation taking into account the PTT as well.

(NOTE: The provincial government estimates that prices of new homes currently include about 2 per cent embedded provincial sales tax paid on the materials used in construction. The government anticipates that prices of new homes will decrease by 2 per cent after the HST is implemented because builders will be able to recover the tax paid on materials through input tax credits.)

MYTH: Everything to do with my new home will be levied the HST: All fees for professional services in the purchase of the home (REALTOR®, legal and appraisal fees, etc.); home insurance; utilities (natural gas, hydro and electricity); and, the purchase of new furniture and electronics.

FACT: Not everything will be impacted by the HST.

YES – HST will apply to all fees for professional services in the purchase or sale of a new OR resale home (as does the 5 per cent GST now). Therefore, all of these services will cost 7 per cent more.

NO – Home insurance is exempt from the HST.

NO – Home heating fuels are all eligible for a point of sale rebate and will see no impact from the HST.

NO – Furniture and electronics will see no tax change. The 12 per cent (GST and PST combined) already applies to furniture and electronics, therefore buyers will see no difference.

Taken from “NewsReal” May 10, 2010 issue 5519

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Sales where up 23% over January this year and a whopping 77% up for February last year, which is quite staggering.

The Olympic slow down was not nearly what was expected, partly due to mortgage rules changing in April and HST coming in July. However open houses where slower than normal but with a 14% increase in listings over January it gives buyers a little more selection. Between the new listing taken and the sales that are happening it is really leveling out the housing prices creating a great balanced market, creating an equal opportunity to buy and sell real estate.

For specific average housing prices by area please consult the full stats package on the Fraser Valley Real Estate Board Site.

If you have any questions or would like to find out more about what’s happening in your area please comment here or email me at info@chrispenner.com

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I feel it’s my responsibility to bring you the most accurate and up to date real estate information to you, as part of that I have ask Ken Wiebe from the Dominion Lending Centre to join us on a regular basis to help give us the latest mortgage news and to field those ever important questions you might have.

So join us Monday night at 6 pm Pacific on March 29, 2010, to learn, support and grow a wonderful way to get your real estate and mortgage news.

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See what you think.

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2 major changes happening:

1. First-time home buyers will now have to qualify for a 5 year fixed term mortgage not just a variable.

2. Investment buyers (or anyone buying a home that won’t be your primary residence) will need a minimum 20% down instead of the 5% that has been the norm for the last number of years.

These changes will take effect April 19, 2010. The reasons for this is to prevent a bubble market and a massive fall out like the US had 2 years ago. So I suppose they are doing us a favour.

On the other hand if you are a first time home buyer looking to buy and want to capitalize on this before April you really need to get on it now. If you are thinking of buying an investment property now is also the time before it starts to become a lot harder to purchase multiple properties.

For questions, comments or for help with buying or selling feel free to email me at info@chrispenner.com or comment here.

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The only sure thing we know as Canadians and as a local lower main land BC resident is that Men’s hockey has to win GOLD or it won’t matter, and that every bridge and feeder route to and from Vancouver is going to be complete pandemonium. But with all kinds of free stuff who really is going to stay away? No one! Surrey has free stuff happening every day and there is plenty more going on all over Vancouver and Richmond as well as up in Whistler.

As far as a real estate perspective, this is how it shapes up. Anybody who is east of the river pretty much will be unaffected by this in the since of economy and housing prices. Let’s face it people aren’t buying houses in Abbotsford or Chilliwack to be close the the Olympics. The economy and city is growing quite well on it’s own aside from having an Olympic boost in it’s close proximity.

So all of you skeptics out there that are predicting some kind of fall-out after this is over the only sure thing we can count on is a minimum 40 year payment plan to pay for all the festivities.

So keep on buying and selling those houses out there, just because of the Olympics doesn’t mean we all stop working. If you are wanting to sell your home or buy one call me today. I still be working, how about you?

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Whether you are a long time real estate investor or a first time home buyer looking for a great deal on a home this might be a great type of property to keep your eye on.

The biggest two differences that come to mind when dealing with a court ordered sale or a foreclosure is that the court has to approve the sale and it typically comes down to the highest bidder. The other major difference is that the home is sold “as is, where is” this simply means what ever the condition the house is in when you take possession of the it, that’s how it will stay. There is no recourse or ability to take action against the home owner if there has been damage done to the home between the time you viewed it and the time you take possession.

So there is some risk involved but typically things work out pretty well with these.

Don’t be afraid to make the first offer. If you do, the real estate transaction will continue as a “normal” deal except that you will still have to go to court to find out if you get the home. Remember: just because you are the first offer in to get accepted doesn’t mean that you automatically get the home. You still have to go to court, and you still need to have the highest bid in court.

If you are the first offer in on a foreclosure or court ordered sale, everyone else that shows up on the court date with an offer will no what the original offer was and will be higher than that. So be sure your Realtor brings a new contract to court with a new price filled in that you are happy with just in case other people show up with offers.

Keep in mind if you don’t have the first offer on the table and you intend to go to court with an offer it has to be subject free so make sure your financing is in order, look at the title, and HAVE A HOME INSPECTION DONE, etc before going to court and making an offer.

For more questions about foreclosures or court ordered sales please call me @ 604. 807.9020, comment on the blog or email me @ info@chrispenner.com and I would be happy to help you. For a list of current foreclosures and court ordered sales in your area simply fill out the contact form Foreclosures and Court Ordered Sales List and put foreclosures in the subject field.

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Here are some things to ask your self if you are even considering buying your first home:

1. How would my mortgage payment compare to my rent?

2. Over the next 5 years how much money would I be paying on someone else mortgage?

3. Have I been pre-approved? If not go here Ken Wiebe Mortgage Specialist

4. How much better off will I be 5 years from now if I buy today?

5. When will mortgage rates ever be so low again?

6. When will housing prices ever be so favourable for a buyer again? (they are already rebounding)

7. What kind of incentives are there for first-time home buyers?

8. What kind of down payment do I need? (If Any)

These are just a few questions to ask before considering to buy. But before you make a final decision, I would be more than happy to talk with you to way out all your options.

This isn’t an opportunity you want to let pass you by. If there is anyway to make your first home purchase this year, do it. Just call me today and ask how. I am happy to help.

Cheers!

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