VICTORIA, BC–Pricing and sales numbers for most categories are essentially the same as in March 2012, spelling out a balanced real estate market for Greater Victoria. “That’s good news for both buyers and sellers,” says Carol Crabb, President of the Victoria Real Estate Board. “The one category with increased sales is condominiums with 19% increase. New developments came on‐stream in View Royal and Langford, resulting in a higher sales volume.”

The average price for single family homes sold in Greater Victoria last month was $609,376, down from $640,553 in March which was slightly elevated by two sales over $4 million. The median price, however, rose to $560,000.

“Homebuyers have time to research their purchases without pressure by working with home inspectors, mortgage professionals and REALTORS®,” Crabb says.

Total MLS® sales for April 2012 were 586, with 565 of those residential, compared to 574 and 540 respectively for the same period in 2011. Overall, current sales are on trend with the average 10‐15 year cycle. Active listings were 4,638 for
April 2012.

Cameron Muir, Chief Economist of the British Columbia Real Estate Association, expects modest growth in the economy,
combined with a strong Canadian dollar will keep the Bank of Canada from raising its trend‐setting interest rate until
2013.

Total waterfront Single Family Dwellings sold: 13, down 1 sale over April 2011
Total non‐waterfront Single Family Dwellings sold: 316, down 9 sales over April 2011
Single Family Dwellings sold over $1 million: 18 (3 over $2 million)

VICTORIA, BC - Single family homes sales have risen 17% since last month, while the six-month average price is up 1% to $599,551. The average price of a Greater Victoria single family home in March 2012 is $640,553 up from $579,985, but is affected by the sale of two homes over $4 million. Compared to March 2011, active listings in this category are up 5% to 1,858, while sales are down 7%.

Sales of condos and townhomes are flat, compared to February 2012, while down significantly from 12 months ago (17% and 15% respectively). Condo prices are unchanged, while townhomes are 1% lower than March 2011.

"With softer prices, buyers have been looking at houses," says Carol Crabb, President of the Victoria Real Estate Board. "That is now being reflected by the six-month average price increase. We predicted a flat market in January, and so far that is what we are experiencing."

She also believes sales activity was affected by poor weather and many families travelling over the two-week spring break. "REALTORS® tell me many clients took the time for family vacations," Crabb adds.

With a total of 4,274 active listings, properties on the market have edged up from last month (3,977 active listings at February 29, 2011). Increased supply levels reflect typical spring activity as seen year over year.

Total waterfront Single Family Dwellings sold: 14, equal to March 2011
Total non-waterfront Single Family Dwellings sold: 311, down 26 sales over March 2011
Single Family Dwellings sold over $1 million: 26 (4 over $2 million)

Summary Report and Graphs

Monthly Sales Summary
Average Selling Price Graphs
Active Listings, New Listings and Sales Graphs

Thinking about buying your first home? Wish you had saved up a good down payment? Maybe you have, but didn't know it. Designed to help first-time buyers get into home ownership, the federal Home Buyers' Program lets you access tax-free monies for use towards the purchase or even construction of your first home.

As a first-time homebuyer, you are allowed to withdraw money tax-free from your RRSP, provided you adhere to the repayment plan. You can withdraw up to $25,000 from your plan. If your spouse qualifies as a first-time homebuyer, then he or she will also be able to withdraw $25,000. Between the two of you, you could possibly have a hefty down payment sum of $50,000. That's enough to make a substantial difference in the affordability of home ownership!

There are certain conditions, for example, you must enter into a written agreement to buy or build before you can withdraw money. And, you must meet the repayment terms. Repayment to your RRSP begins the second year following the year of withdrawal. You have up to fifteen years to repay, and each annual repayment must be at least one-fifteenth of the total withdrawal, otherwise you have to include each repayment amount as income for that year.

A detailed booklet is available on the Canada Revenue Agency website. Look for T1036, which is the form required for requesting a withdrawal.

The Victoria Real Estate Board has been made aware of increased confusion over the interpretation of the new BC First-Time New Home Buyers’ Bonus.

Board Staff are in regular contact with the Ministry of Finance to ensure have current updates.

To clarify:

(1) The bonus of a maximum $10,000 is not linked to the buyer’s taxable income unless the individual/couple’s net income from line 236 of their tax return is over $150,000 annually. At that stage the bonus gradually reduces until the annual income reaches $200,000.

(2) The bonus will be issued as a cheque by the BC Ministry of Finance.

(3) The purchaser will have to apply for the bonus on a form to be available in a few weeks from the provincial government. The application will be processed, and then a cheque will be issued.

(4) The amount of the bonus is to be calculated as follows:

“The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum $10,000.” (Source: BC Ministry of Finance, The BC First-Time New Home Buyers’ Bonus fact sheet)

For further information, see the BC Ministry of Finance website for their Fact Sheet and “Q&A” documents.

VICTORIA, BC-The story continues from last month when the Victoria Real Estate Board reported a relatively stable market when compared to the same time in 2011, but REALTORS® report they are optimistic that new provincial HST transition rules and a New Home First-time Buyers Bonus will stimulate sales of new properties.

February’s sale volume was virtually identical to that of February 2011, but the average price softened by 5% for single family homes over February 2011. The average sales price for a single family home in Greater Victoria was $579,985, with a six-month average of $594,027, showing a corresponding decrease of 4.7% over February 2011.

"REALTORS® are reporting increased showings, especially since the Provincial budget announcements," says Carol Crabb, President of the Victoria Real Estate Board. "Our Members tell me the HST transition rules, increased HST rebates and New Home First-time Buyers Bonus are stimulating traffic for both new houses and condos.

"I think the BC budget also instilled consumer confidence. Potential buyers can see that our economy is stable and mortgage rates are incredibly low", Crabb says. "Not only are prices remaining stable, there are enough listings to allow buyers to perform their due diligence without making rash decisions. We encourage buyers to work with REALTORS® to ensure they are educated about current market conditions and recently announced government incentives."

With 3,977 active listings at the end of February, Crabb notes increased supply levels and sales are expected in keeping with the normal historical trend of spring activity.

Total non-waterfront Single Family Dwellings sold: 258, up 4 sales over February 2011
Total waterfront Single Family Dwellings sold: 7, down 3 sales over February 2011
Single Family Dwellings sold over $1 million: 14 (1 over $2 million)

Summary Report and Graphs links:

Monthly Sales Summary
Average Selling Price Graphs
Active Listings, New Listings and Sales Graphs

Yes, I love it! I recall my early days lugging around my Motorola Brick. Since then I have always had the latest and greatest mobile phone available. I was an iPhone user and switched when the Samsung Galaxy S Android device came out. That was a great phone, but as of February 14, 2012, I had my sight set on the release of the Samsung Galaxy Note. Yes, it’s big, but after using it now for about 2 weeks, I can honestly say that the 3.5” or 4” display phones are just too small. I can’t go backwards now. My analogy would be like going from a 42” TV to a 55” TV.

This phone does it all. If you always wanted a larger display and didn’t want a tablet, then this 5.3” HD Super AMOLED screen might be for you. For more information on this product I would recommend going to your telephone provider or you can ask me about mine. Availability is on Bell, Telus and Rogers.

Note: It fits in my pocket!

Help for New Home Purchasers
We are analyzing the implications of both the HST Transition and BC First-Time New Home Buyers announcements, and there are still many unresolved details.  Here is what we know so far:

Effective April 1, 2012, the government will substantially increase the BC Harmonized Sales Tax rebate threshold for new homes purchased as primary residences to $850,000 (from $525,000), and create a grant of up to $42,500 for newly-constructed secondary homes (purchased outside the GVRD and CRD) where no grant has existed before.

The temporary BC First-Time New Home Buyers’ bonus announced in the budget on February 21 will also provide additional support for buyers who need it the most. This applies to both newly constructed residences and those that have been 90% renovated.
Overall, the benefit to buyers of new homes and people who work in the real estate sector is obvious. Perhaps less apparent is the fact that real estate sales generate significant additional spending and taxes, driving activity throughout the provincial economy.

Now that the rules for transition back to a Provincial Sales Tax/Goods and Services Tax system have been published, and the transition dates set, buyers of new homes, REALTORS®, builders and developers will have more confidence and the freedom to transact business.

Questions and Answers

Question #1 – Is the “bonus/grant” for first-time buyers to be paid by tax credit or cheque?

Answer – The purchaser will have to fill out an application form which will be available on the Ministry of Finance website later this year. Application forms will need to be completed and sent to the BC Ministry of Finance for processing. The bonus will be issued as a separate chequefrom the BC Ministry of Finance.  The BC Ministry of Finance will be issuing the refund.

Question #2 –How can buyers confirm the amount of money they will be eligible to receive, or is it just a guessing game until the application is approved?

Answer –The attached Fact Sheet from the BC Ministry of Finance indicates that the “bonus” for first-time buyers is “equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.”

www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf

Question #3 – What about HST phase out on real estate commissions?

Answer – The tax structure on real estate commissions will not change until April 1, 2013 when the return to the Provincial Sales Tax (PST) regime is fully implemented, and then only the GST will apply to those goods and services that were exempt from PST prior to July 1, 2010. This was confirmed for BCREA by Hon. Kevin Falcon in early October 2011.

Online Resources

· BC Government Return to PST website: http://www.pstinbc.ca/buying_goods/buying_a_home

· BC Government HST Transition news release: http://www.newsroom.gov.bc.ca/2012/02/transition-measures-support-new-home-buyers-builders.html

BC First-Time New Home Buyers’ Bonus fact sheet: www.bcbudget.gov.bc.ca/2012/homebuyers/2012_First_Time_Home_Buyers_Fact_Sheet.pdf