Vicky Turner

As 2011 gets started all property owners in British Columbia wait for their Tax Assessment notice…this week was no exception, they arrived as scheduled as they do every year. Personally, our family home was assessed at 50k more than 2010. As a realtor I find that hard to believe (although they say that realtors are poor judges of the value of their own homes!).

The valuations were established 6 months ago (as at July 1, 2010). Our market has been somewhat in decline since that time vis a vis number of properties sold and in some instances – sale prices. There you go – the article below points out that single family homes in the Greater Victoria area rose about 8% in value last year – the first 3 months of 2010 were extremely active and saw numerous sales. Not so the last 6 months of the year – so averages can probably be questioned in some instances and are also dependent on the values of homes sold. More expensive homes sold in any given period will influence the numbers.

In any case – the market value of your home is what someone is willing to pay for it – period. Market value is determined by a “willing buyer” and a “willing seller”….

Look forward to providing you with more information to substantiate this blog at your convenience!

http://www.timescolonist.com/business/Greater+Victoria+home+sales+fall+prices+remain+high/4066696/story.html

Yesterday the British Columbia Real Estate Association published the following press release:

http://www.vancouversun.com/business/residential+sales+down+cent+from+last+year+survey+says/3976249/story.html

So how can we interpret this data?

First of all, they are talking about a 21% drop between November 2009 and this year (not as might be suggested by the title – the whole year). 2010 has not proven to be the exceptional year that our homeowners and industry experienced in 2009. The market began a steady decline in monthly sales from April which increased sharply during the summer months. Only now, at the end of 2010, is the market expriencing more interest and susequent results.

Consumers are a trifle less leery about GST concerns – they are beginning to realize that GST applies to new construction and not to re-sale properties (except as to services provided to purchasers). Mortgage rates remain affordable even if qualification requirements have changed during 2010.

Single family home prices up 9% (November over November) although sales during 2010 have lagged. This only proves that British Columbia is still a destination of choice. Serious seller’s will price their homes realistically for a speedy sale that will still be to their benefit. More buyers are hovering in the wings than earlier this year and proving that they are ready and willing to scoop up properties that meet their criteria in every way.

None of us are operating with a crystal ball – I choose to believe that 2011 will be another banner year for our industry and for me in particular!

May I take this opportunity to thank my clients and friends for their support this year. Let’s take time this holiday season to celebrate our blessings and remember those less fortunate.

Let’s talk in 2011……..Vicky

In the real estate world every month at this time the pundits come forth with ideas of why the market did what it did in the previous month and predict what the future might hold.  Early November 2010 is no different.

Monthly sales have been declining in the Greater Victoria area since Easter weekend…but we must remember that the years from 2003 onward have been exceptional years.  Anyone who has owned real estate in Victoria either before or during the active periods of that boom has benefited and will continue to do so.  Amazingly enough, up until now, activity has slowed but average prices and year over year increases in price are still a part of the Greater Victoria real estate market.

Our world is changing – we are bombarded with information to that effect on a daily basis.  Recession is influencing people’s slant on “values” and people are reassessing their choices.  Fortunately, here in Victoria, our local economy is more robust and stable than that in many other parts of the world and as everyone knows we are a world class retirement destination.  Every year buyers and sellers become “better educated” through online tools and information available to them which can only be regarded as a “good thing”.
What else might be contributing to less activity?  Mortgage rates are at historical lows yet mortgage regulations have been tightened.  There is a misconception in the eyes of buyers both in British Columbia and Ontario about the HST (harmnonized sales tax) implemented in both provinces in July 2010.  This tax does not apply to “resale properties” except as to the transaction fees for services associated with the purchase of a home.  Sellers must now pay HST on real estate commission which is a service.

The way people “think” about housing/shelter is changing.  Urban renewal efforts in many Canadian cities are drawing buyers downtown.  The condo is turning out to be an affordable option for first time buyers and as long as the price of a single family detached home remains high this option will remain in the forefront for years to come.  In the future, there will be Canadians who can not afford the luxury of a single family detached home.  They will bring up their families in a smaller space, much as families in many other parts of the world do now.  Change is upon us and we will adapt…..