First-time home buyers received welcome news in today’s provincial budget.

The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

More home buyers

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

The government estimates this measure will cost $8 million in lost tax revenue each year.

Lobbying

The Real Estate Board together with BC Real Estate Association has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.

• In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. 
• In 2005, the government increased the threshold to $325,000 from $275,000.

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

B.C. First Time Home Buyers' Program Website

February 3, 2014. VICTORIA, BC – Victoria’s real estate market had a solid start in January, re-establishing momentum after the holiday season.

Total MLS® sales in January were 342, a 16.3% increase over January 2013 when 294 units sold. January sales were close to the 355 sales reported to the Victoria Real Estate Board (VREB) in December 2013.

2014 VREB President, Tim Ayres cautioned, “While we’re pleased with the number of sales this January and the percentage increases over January 2013, it’s important to remember that the market last January was restrained under tightened mortgage amortization rules imposed in July 2012.”

The MLS® HPI single family home benchmark price for the entire Greater Victoria region was $481,200 in January, a 1.7% decrease when compared to the January 2013 value of $489,400.

“Market activity increased as the month progressed,” notes Ayres. “With REALTORS® reporting that attractively-priced and well-presented properties are moving quickly.”

At the regional level, the MLS® HPI benchmark price for the single family benchmark home in the Core municipalities was $546,300, an increase of 0.6% over the previous month and a 0.5% decrease over January 2013. In Westshore, the MLS® HPI benchmark price for the single family benchmark home was $404,800, virtually unchanged from December 2013 and a 1.5 per cent decrease compared with January 2013. The MLS® HPI benchmark price for the single family benchmark home on the Peninsula was $497,200 for January, a decrease of 0.5% over the previous month and a 4.9% decrease year-over-year.

There were 3,489 active listings at the end of January, a 10% decrease over January 2013. “Available inventory slowly declined for most of 2013,” says Ayres. “We will continue to monitor this trend and the impact on the market as 2014 unfolds.”

There were 92 condominium sales in January 2014, the same as December 2013 and 81 in January 2013. The region-wide MLS® HPI benchmark price in January for condos was $276,800, down 1.7% from $281,600 from one year ago.

For townhomes, 30 sold in January compared to 32 in December 2013 and 40 in January 2013. The region-wide MLS® HPI benchmark price for townhomes was $398,000, up 0.7% from $395,400 in January 2013.

Total waterfront single family homes sold in January:                      7
Total non-waterfront single family homes sold in January:            186
Total single family homes sold over $1 million in January:               10 (1 over $3 Million)

At the heart of the MLS® HPI is the concept of the “benchmark” home, a notional home that has the most common features of a typical home in a given area. The benchmark home does not represent any actual house, condominium or townhome, but merely provides an identical example to track changes in market value. There are separate benchmark houses, condominiums and townhomes in each distinct area of Greater Victoria, enabling the tracking of values on a variety of geographic levels.

Click for Full Charts and Graphs.

VICTORIA, BC—Victoria’s real estate market ended 2013 with some momentum after a weak first quarter.

Total MLS® sales in December 2013 were 355, a 25% increase over December 2012 when 283 units sold. Annually, total units sold increased by 4%, with 5,998 in 2013 compared to 5,747 in 2012.

The overall MLS® HPI single-family home benchmark price for Greater Victoria was $479,500 in December 2013, compared to of $495,400 in December 2012, a decrease of 3.2%.

“Bear in mind that prices vary from area to area,” says Tim Ayres, 2014 President of the Victoria Real Estate Board. “I’m optimistic about the next year. Buyers who were on the sidelines are now out shopping. Savvy buyers need to know that there are some good deals in certain areas, and interest rates are not expected to increase in the near future.”

At the regional level, the MLS® HPI benchmark price for the single family benchmark home in the Core municipalities was $542,800, a decrease of 1.1 per cent over the previous month and a 2.4 per cent decrease over December 2012. In Westshore, the MLS® HPI benchmark price for the single family benchmark home was $404,200, an increase of 0.1 per cent over November 2013 and 3.6 per cent decrease over December 2012. The MLS® HPI benchmark price for the single family benchmark home on the Peninsula was $499,900 for December, a decrease of 1.6 per cent over the previous month and a 4.1 per cent decrease year-over-year.

There were 3,554 active listings at the end of December, a 9% decrease over December 2012, which Ayres notes contributes to stronger market conditions.

There were 92 condominium sales in December 2013, compared to 99 in November 2013 and 65 in December 2012.  The overall MLS® HPI benchmark price of $278,600 was down 1.2% from December 2012.  There were 32 townhome sales in December 2013, compared to 49 in November 2013 and 30 in December 2012.  The overall MLS® HPI benchmark price of $392,500 was down 0.5% from December 2012.

Total Waterfront Single Family Dwellings sold:                     10, also 10 in December 2012

Total Non-waterfront Single Family Dwellings sold:          178, down 32 sales from December 2012

Single Family Dwellings sold over $1 million:                         13 (2 over $2 million)

At the heart of the MLS® HPI is the concept of the “benchmark” home, a notional home that has the most common features of a typical home in a given area. The benchmark home is not meant to represent any actual house, condo or townhouse, but merely provides an identical example to track market changes. There are separate benchmark houses, condos and townhouses in each distinct area of the Greater Victoria region, enabling price tracking of very distinct markets.

Click for Full Charts and Graphs.

December 2, 2013

VICTORIA, BC – Greater Victoria real estate sales moderated in November following a brisk June-to-October market. According to the Victoria Real Estate Board (VREB) MLS® System, 412 properties sold compared to 366 in November 2012, an increase of 12.6 per cent.

“We saw market activity slow down after a very busy five months,” says Shelley Mann, VREB President. “While sales were higher than in November 2012, fewer sales than previous months indicate a pull back in consumer demand.”

Flat employment and weak economic growth are likely contributors to a moderating market. Mann also notes that active listings continued to decline, with 4,017 at the end November compared to 4,488 in November 2012. December and January are typically the slowest months for real estate sales.

For November 2013, the MLS® HPI benchmark price for the Greater Victoria single family benchmark home was $482,300 and its corresponding index value was 136.5.  (This represents a 36.5 per cent increase since January 2005, when the index was 100). This benchmark price decreased 0.72 per cent over the past month and decreased 3.11 per cent over the last year.

At the regional level, the benchmark price for the single family benchmark home in the Core municipalities was $548,600, an increase of 0.14 per cent over the previous month and a 1.65 per cent decrease over November 2012. In Westshore, the benchmark price for the single family benchmark home was $403,600, a decrease of 1.70 per cent over October 2013 and 5.94 per cent decrease over November 2012. The benchmark price for the single family benchmark home on the Peninsula was $508,000 for November, a decrease of 0.04 per cent over the previous month and a 2.57 per cent decrease year-over-year.

There was a total of 381 single family homes sold in November, an increase of 11 per cent over November 2012. November also saw the reporting of 99 condominium sales and 49 townhouse sales in Greater Victoria. Benchmark prices for the Greater Victoria condominium benchmark home and for the Greater Victoria townhouse benchmark home for November were $280,600 and $389,000 respectively.

Total Waterfront Single Family Dwellings sold:                        9, up 3 over November 2012

Total Non-waterfront Single Family Dwellings sold:          207, up 11 over November 2012

Single Family Dwellings sold over $1 million:                                             7 (1 over $2 million)

On November 1st, the VREB adopted the MLS® Home Price Index (MLS® HPI) to report residential property price trends. The methodology used by MLS® HPI has been endorsed by Statistics Canada, Canada Mortgage and Housing Corporation, the Bank of Canada, Finance Canada and Central 1 Credit Union.

At the heart of the MLS® HPI is the concept of the “benchmark” home, a notional home that has the most common features of a typical home in a given area. The benchmark home is not meant to represent any actual house, condo or townhouse, but merely provides an identical example to track market changes. There are separate benchmark houses, condos and townhouses in each distinct area of the Greater Victoria region, enabling price tracking of very distinct markets.

For more information on MLS®HPI benchmark prices and index values for November, visit www.vreb.org. Those requiring specific information on property values in their area should contact a REALTOR®. The Victoria Real Estate Board has 1,224 Members.

Click for Full Charts and Graphs

Now is a great time to get into Victoria’s real estate market with about 4000 current MLS listings available heading into the traditional slower holiday season. As a buyer, you have a lot of negotiating leverage now versus making a buying decision in the typical robust Spring market.

If your in the market for a condo, then as a buyer, you will have the most choice at a lower price these days as Victoria’s condo market has been hit hardest with market corrections.

Below are available mortgage rates which are available through a mortgage broker. I prefer working with mortgage brokers as they have the best rates and have flexible options available in order to give you the best chance on obtaining financing for your home purchase.

If you would like assistance on financing, please give me a call or send me an email and I will point you in the right direction!