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.

Canada Revenu Agency www.cra.gc.ca

The Globe and Mail reports in the attached article that The Banking Regulator is moving to ensure banks know more about their mortgage customers. Additionally it seems that the government is ensuring that customers pay their debts before getting a new mortgage. By any other name this is our government tightening the money supply once again.

Yet again, within days of the major banks announcing 2.99% five year money, the Federal Gov’t is pounding the mortgage market with more regulation. As our previous blogs have featured, this government is systematically making it more difficult to finance a home purchase in an effort to cool Vancouver and Toronto. When you cannot raise rates you bring on the regulations. Easy Mr. Flaherty! You have become highly predictable.

http://www.theglobeandmail.com/report-on-business/economy/housing/bank-regulator-moves-on-mortgages/article2374070

While our nations Minister of Finance, Jim Flaherty, removes the punch bowl from the real estate party, another ominous cloud is on the horizon. Flaherty has been systematically tightening the money supply through lending regulations over the past year as he attempts to cool real estate and avoid a US style crash.

Shorter amortizations, approvals based on 5 year fixed, as opposed to variable or shorter terms, onerous paperwork for the self employed and the biggy seems to be anti-money laundering measures directed at immigrant or off shore buyers. All this has cut the deal flow in half as our previous blog mentions. The announcement of further “tightening” may not work out as planned however as there is another “de facto ” tightening looming. As the US recovers from its housing- led recession, the number one consumer of oil will be getting thirsty yet again. With rising oil prices now approaching $130 per barrel, consumers will get pinched and disposable income will suffer. Should the austere minister over shoot we could have the opposite problem on our hands. Oil is the new monetary tool but the problem is, it is out of our hands. Careful what you wish for Jim.

BLOG – March 1st

MacLeans Magazine has once again proven that it is as dependable as People magazine for timely well researched articles. This beauty, http://www2.macleans.ca/2012/02/28/youre-about-to-get-burned/ is as responsible as the anonymous bloggers who spout the end of the world, so put all your money in Gold. As if there would be a market if it came true!
The well publicized and well documented real estate bubble is an ongoing saga for journalists with a thirst for some drama. We have blogged on the issue previously. In contrast to MacLeans article, we do have some thoughts on the topic.
Year to date sales are less than ½ of what they were one year ago. As of Valentines Day, whether it be Vancouver’s westside of Richmond or Surrey, White Rock to mention a few, volumes are down. We are in the midst of a rolling correction in my view. It is a boring correction. It is a Canadian correction. The mania has vanished and we are in a phase in which price is critical. If you are priced a shade too high you will be over looked. Buyers are well researched and cautious. Sellers are not as reliant on the rear view mirror as they are about current market value. The last comparable sale may in fact provide us with a highwater mark rather than a minimum acceptable price. All this does not sound like a eurphoria filled bubble.

They say that once a CEO makes the cover of Fortune or Barron’s magazine then his time is likely over. He becomes a product of his own success and it ends badly. Same holds true for the Bubble talk. It is now on a pop magazine cove,r so my guess is this correction is midway through its cycle and the bubble has deflated somewhat. Is there pain ahead with rising rates? Of course. Does it affect every market at the same time? Not likely. The market has withstood a “defacto tightening” in the form of tighter lending regulations all year. The market is behaving like a market should when money tightens. Speculators are buying in Florida and Las Vegas. Families, empty nesters and young couples are moving and it is all orderly and normalized. Boring is good.

The Tsawwassen First nation’s historic and unprecedented development will feature 250 acres of residential development, comprising 1800 homes with a projected population of approximately 4000 people.

Additionally, the site will be home to 180 acres of commercial space which will be comprised of outdoor and indoor shopping malls on a scale the size of Metrotown. A key component of the site is the 330 acres of industrial development.
Amoung other developers, The Onni Group and The Aquilini Group are in application stage for residential development which should roll out 200 homes per year. The residential component will be a mix of single family, townhouse and condo housing, density to decrease as one move closer to the water.

The main attraction will no doubt be the Ivanhoe Cambridge commercial development, which will likely drive most of the local interest as retail choice has been an issue for so long. Ivanhoe Cambridge is a subsidiary of the massive pension fund from Quebec, The Caisse de Depot. The Caisse was amoung the first pension funds to diversify into real estate investments in the 1980s and is now amoung the top 10 in the world in terms of size and scope. Interesting times in Tsawwassen and Ladner as so many proposals face challenges within the communities.
That said, the development promises to be world class in every way as Ivanhoe Cambridge is a world leader and this $500,000,000.00 undertaking will be a jewel in their global portfolio.

This Thursday, February 2, myself and the realtors of South Delta will have the opportunity to hear first hand how the proposed malls and housing areas will look on the Tsawwassen First Nations land at Highway 17 and 56th Street.
We will be listening to the person in charge of the development, Chris Hartman, the CEO of the Band.
The planned development will include 1.8 million sq. ft. of retail space and 2000 new homes.
Stayed tuned for an update after Thursday’s meeting!

If you are planning on having a home built for you or you are buying a brand new home, visit www.hpo.bc.ca
Why?
It is the site of the Home Owner’s Protection Office, a branch of B.C. housing, where you can find a registry of licensed residential home builders
The home owner’s protection act provides for the licensing of builders and makes third party home warranty insurance mandatory on new home construction in B.C. The website also lists what is included in a 2-5-10 warranty.

Important to do your homework!

A second valuable website is www.tenants.bc.ca
It is great if you are a tenant AND if you are a landlord of a tenanted property. For both tenant and landlord, it is important to know your rights, and around the sale of the property, both parties should know the procedure to follow to evict the tenant or arrange for the tenant to stay.

Again, super important to do your homework!!

* If you want to appeal your assessment, visit www.bcassessment.ca . Each year, about 1.6% of all property owners appeal.

Buying a condo before it is built?! You can find some fabulous tips on the BCREA (British Columbia Real Estate Association) website. Here you will find a check list of things to note before you make any decisions.

Go to:
http://www.bcrea.bc.ca/docs/working-with-a-realtor-/presalecrossreflist.pdf

VANCOUVER, B.C. December 2, 2011 The Greater Vancouver housing market saw relatively typical home sale and listing activity in November.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the regions Multiple Listing Service (MLS) reached 2,360 in November. This represents a 5.9 percent decline compared to the 2,509 sales in November 2010 and a 1.9 percent increase compared to the 2,317 sales recorded in October 2011.

Looking back further, last monthís residential sales total is 5.8 percent below the ten-year average for sales in November.

The pace of home listings entering the market eased slightly in November, compared to recent months, while sale levels remained fairly normal for this time of year, Rosario Setticasi, REBGV president said. November activity helped put our market firmly in balanced territory.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 3,222 in November. This represents a 26.3 percent decline compared to the 4,374 new listings reported in October 2011, but a 6.3 percent increase compared to November 2010 when 3,030 properties were listed for sale on the MLS.

Looking back further, last months new listing total is 2.1 percent above the ten-year average for November.

The total number of properties currently listed for sale on the Greater Vancouver MLS sits at 14,090, a decline of 9 percent compared to October 2011 but an increase of 13 percent when compared to this time last year.

The MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 7.2 percent to $622,087 in November 2011 from $580,080 in November 2010.

Since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 1.4 percent.

Sales of detached properties on the MLS in November 2011 reached 916, a decrease of 12.8 percent from the 1,050 detached sales recorded in November 2010, and a 21.3 percent decrease from the 1,164 units sold in November 2009. The benchmark price for detached properties increased 11.4 percent from November 2010 to $890,204.

Sales of apartment properties reached 1,000 in November 2011, a 4.9 percent decrease compared to the 1,052 sales in November 2010, and a decrease of 28.4 percent compared to the 1,396 sales in November 2009. The benchmark price of an apartment property increased 2.7 percent from November 2010 to $399,686.

Attached property sales in November 2011 totalled 444, a 9.1 percent increase compared to the 407 sales in November 2010, and a 15.1 percent decrease from the 523 attached properties sold in November 2009. The benchmark price of an attached unit increased 4.5 percent between November 2010 and 2011 to $510,960.