Real Estate Sales Herald Strong Start to the New Year

The number of properties sold throughout the Victoria area eased slightly compared to December but was still substantially higher than January of last year. A total of 418 homes and other properties sold in January through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 453 sales in December but up nearly 70 percent from the 247 sales in January of last year. Prices, meantime, remained stable but mixed depending on property type.

Victoria Real Estate Board President, Randi Masters, says January’s figures represent a solid start to the year, "After last year’s remarkable recovery in the real estate market, we are pleased to see strong sales for January and look forward to a balanced market in the months to come." Masters noted that the number of properties available for sale increased last month, "As of the end of January, there were 2,793 properties available for sale - up from 2,557 at the end of December but still down 24 per cent from January of last year. We expect further increases in the number of properties on the market as we head into spring and this will offer a greater choice to buyers."

The average price for single family homes sold in Greater Victoria last month was $644,678 down from $651,316 in December. Fifteen sales of over $1 million including one sale in Central Saanich of over $2 million and one sale in North Saanich of over $2.5 million affected the overall average in January. The median price of single family homes sold rose to $595,000. The six-month average was $615,271. The overall average price for condominiums was $313,337 last month, down from $345,907 in December. The average for the last six months was $322,775. The median price for condominiums in January rose to $299,900. The average price of all townhomes sold last month was $453,013 down from $485,307 in December. The median price declined to $399,250. The six month average was $452,447.

MLS® sales last month included 220 single family homes, 112 condominiums, 46 townhomes and eight manufactured homes.

How to Spring clean to put your house up for sale

There is a lot of competition in the housing market so it is more important than ever to prepare your home to sell. This article is a guide to preparing your home to make the best impression on buyers with out spending much money.

Step 1

Start with the front porch and walkway. Rent a power washer to wash to siding, driveway and walk. Edge the lawn, pull weeds and put out fresh mulch in flowerbeds. Put a fresh coat of paint on the front door. Remove and repaint house numbers.

Step 2

Once inside, remove and clean all covers on lighting fixtures (most wash up great in the dishwasher). Replace any old bulbs. Wipe down all light switch plates (you'll be shocked when you see how much grime builds up on these!)

Step 3

Clean the inside and outside of all windows until they are streak free and spotless. Homes show better with the blinds or curtains up but not if the windows are filthy.

Step 4

Remove any unneeded furniture, homes show better if they are not crowed. Remember there will be 2-4 people walking through together to view your home. Box up collectibles and photos. There should be no more than 1-3 items on any surface.

Step 5

Dust all baseboards and doors including closet doors. It is amazing how much dust gets in all of the little grooves. If you have stained trim in the house use Murphy's scratch repair to cover up nicks and scratches.
Step 6

Shampoo rugs and get out your brush and bucket Cinderella to clean the floors by hand.

Step 7

OK, here more fun stuff, remove everything from counter tops and clean them well. Then check all of the caulking around sinks, faucets and tubs. This is one of the areas that is most overlooked and can make the biggest impact on a buyers feeling about the house. Clean this well. If it doesn't come clean, remove it and re caulk. Same thing for any grout in tile counters or bathtubs. Unfortunately buyers don't really notice when this is done but believe me they notice if it is not!

Step 8

Go through one closet each day. Get rid of things you do not need and put everything else back in a nice orderly fashion.

Step 9

Wash all bedding and if you have the money, purchase a new throw pillow, pillow cases and a simple throw to add seasonal color to the rooms for very little money.

Step 10

If you can purchase a set of new towels for the bathrooms.

Step 11

This article is about cleaning to sell, not staging but paint is the least expensive way to give your home a fresh look. Touch up walls and if you have rooms with paint that is very unusual or looks very tired go ahead and repaint. At least make sure that the paint in the entry, living room and kitchen looks good. This is time and money well spent.

Step 12

Install 2-3 plug in air fresheners.

Step 13

These are detail cleaning tips that require almost no money just a weekend or two of your time but can help save you months on the market. A spotless house can make a buyer feel like the home has been well cared for and put them at ease to make an offer.

Haiti needs our help

On January 12, 2010, a 7.0-magnitude earthquake struck off the western coast of Haiti. Buildings all over the Haitian capital of Port au Prince collapsed, killing thousands and trapping thousands more. It’s estimated that three million people have been affected by the disaster, and 200,000 have been left homeless. Chaos has descended in the city, as survivors desperately search for food, water and shelter amid the rubble.

The response of hundreds of local Red Cross volunteers was immediate. The International Red Cross Movement has mobilized to launch our their largest ever emergency relief and recovery operation in one country. .

The destruction was wide scale and the needs are overwhelming, but you CAN make a difference. Your generous gift with ensure the people of Haiti will not only get the emergency assistance they need to survive in the face of this devastating disaster – but ensure they have the resources and support needed to rebuild their homes, communities and lives in the months and years ahead.

Donate today please visit onlinedonations@redcross.ca or call 1-800-418-1111

A Year of Recovery for Victoria Area Real Estate Market

Last year was marked by a surprising and strong recovery for the Victoria area real estate market following the slowdown in 2008 and the early part of 2009. Total sales of homes and other properties rose by 24 per cent compared to 2008 while the value of all property transactions through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®) system rose over 20 per cent to nearly $3.8 billion.

Victoria Real Estate Board President Randi Masters says the strength of the recovery came as a welcome surprise, "Given the significant world-wide economic downturn we were very pleased to see the real estate market recovering so quickly. With interest rates expected to remain low in the coming months, we are anticipating a strong and balanced market in the coming year." Masters noted that while sales rebounded strongly last year, overall average prices showed little change compared to 2008. The overall average price for single family homes declined by less than one per cent, condominium prices declined by less than three per cent and townhome prices remained essentially unchanged.

Masters added that December saw a normal decrease in sales compared to November with some minor fluctuations in prices. The average price of single family homes in Greater Victoria last month was $651,316. Sixteen sales of over $1 million, including one sale in Central Saanich of over $5 million affected the overall average. The six-month average was $601,237 while the median price was significantly lower at $555,000. The average price of all condominiums sold in December was $345,907; the average for the last six months was $324,919 while the median was $289,000. The average price of all townhomes sold last month was $477,998; the six-month average was $450,305 and the median was $422,500.

MLS® sales last month included 246 single family homes, 115 condominiums, 44 townhomes and 12 manufactured homes.

Masters noted there has been a substantial decline in the number of properties available for sale, "As of the end of December, there were 2,557 properties available for sale -- down 33 per cent from a year earlier."

New Year's Resolutions for Home Sellers

Did you try and sell your home in 2009, and didn’t have a lot of luck? Well here are some “Resolutions” that may increase your chances in selling your home this year;

• Overcome any possible objections a buyer would have.
Sellers don’t often understand that their primary job is to not only eliminate any potential objections that would stand in the way for a buyer to make an offer, but to exceed their expectations as well. If your home is competitively priced, and your home’s condition exceeds a buyer’s expectations, you’ll get an offer – even if it isn’t the offer you want.

• Get your home into selling shape.
Cleaning your home is a must. After that, you should consider hiring a stager to give your home the television-worthy polish so many buyers expect today. Assess what other sort of work needs to be done, such as fixing things that don’t work, touching up paint, or cleaning or replacing your carpets.
Decide if you need to update you’re landscaping, and paint, clean your home’s exterior.

• Understand what it will take to sell your home.
If you live in an area littered with foreclosures, you may have to meet that price point in order to sell. Is it worth it? Probably not, but you’ll have to really evaluate price and timing in order to get the most for your property.
• Be realistic about the market.
Find out what is selling, and what the average number of days on the market it for homes that are selling. Accept the reality of your local market and make sure you price your home realistically. Don’t blame your broker if you don’t get 3 offers over your list price within 24 hours of putting your home on the market. Sellers who set sky-high prices could wait months for an offer and may wind up with the same price they would have had if they’d priced their home correctly the first time – or a lot less. In this real estate market, one of the worst things you can do is over price your home from the onset. If you price it below where it should sell, you may start a bidding war and will sell your home faster and for more money.

• Know where you’re going.
I don’t recommend putting in an offer on another house until you have some serious interest in your current property. It’s fine to start researching other neighborhoods, but if you’re not sure what you want to do, consider renting on a short-term or month-to-month lease. These days, landlords are hurting and they may be perfectly happy to accept a 6-month lease.

• Read all documents thoroughly before I sign them.
Why would someone sign a legal document he or she hasn’t read? I’m not sure, but home sellers do it every day. If you’re going to sell (or buy) in the coming year, promise yourself that you’ll take the time to read and understand the listing contract, offer to purchase, and loan documents for your next purchase. (If you’re taking back a loan for the home buyer, have an attorney prepare the documents so you are sure to be protected.) Unless you’ve got cash to spare, a mistake in these documents and the warranties they contain, could seriously affect your finances.

• Not be driven by greed.
One big mistake many sellers make is to get a little greedy, particularly if the first offer is above the minimum acceptable price you’ve set. Then, the negotiation becomes a game of how much you can get.

Remember, a successful sale means everyone walks away feeling happy. If you get so greedy that the buyer walks away, you’ve let the deal get the best of you. Resolve to be reasonable and you’ll end up shaking hands with the buyer at the closing. You should also know that there are fewer buyers out there and if you lose a buyer it might take you quite some time to find another one.

Market Strength Extends Through 2010

The British Columbia Real Estate Association (BCREA) released its Fall 2009 Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are estimated to increase 20 per cent to 82,900 units this year from 68,923 units in 2008. Residential sales in 2010 are forecast to increase a further 8 per cent to 89,600 units. The ten-year average is 82,800 units.

“A sharp rebound in consumer demand turned a potentially dismal year into a very strong year for home sales,” said Cameron Muir, BCREA Chief Economist. “Vancouver and Victoria, in particular, are posting near record unit sales this fall.”

BC interior housing markets are also experiencing robust consumer demand as low mortgage rates and stronger market confidence drive home sales higher.
The average annual MLS® residential price in the province is expected to post a new record this year, rising 2 per cent to $463,200 and is forecast to climb an additional 4 per cent to $482,800 in 2010.

“Recovery in the BC economy will unfold gradually next year,” added Muir. “With sales prices in some markets flirting with record highs, affordability constraints will limit home price inflation over the next year.”

Strong Property Sales in October

Property sales throughout the Victoria area last month were at their highest level for the month of October since 1992. It was the sixth month in a row that property sales were higher than in the corresponding month of last year. A total of 742 homes and other properties sold in October through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down slightly from the 776 sales in September and up more than double the 316 sales in October of last year. Prices, meantime, remained stable.

Victoria Real Estate Board President, Chris Markham, says now that the market has clearly recovered from the downturn late last year and early this year, REALTORS® are working hard to find suitable properties for buyers. "The number of properties available for sale has dropped substantially from a year ago and now stands at 3,219 - down 31 per cent from October of last year," said Markham. "While there will always be month to month fluctuations in prices, this reduced inventory will inevitably bring some upward pressure on prices," he added.

The average price for single family homes sold in Greater Victoria last month was $590,567, down from $619,936 in September. The median price was $536,000. The six-month average was $587,623. The overall average price for condominiums was $322,349 last month, down slightly from $325,106 in September. The average for the last six months was $316,137. The median price for condominiums in October was $297,000. The average price of all townhomes sold last month was $438,058 down from $441,966 in September. The median price dropped slightly to $409,500. The six month average was $431,675.

MLS® sales last month included 400 single family homes, 203 condominiums, 76 townhomes and 12 manufactured homes.

Pricey properties to be park land

A trio of properties along Lochside Drive are looking like they’ll be park land for North Saanich.

In May, council asked staff to get a little information about possibly rezoning the three district-owned waterfront properties on Bazan Bay. They are currently zoned P1 institutional and wouldn’t require rezoning to be used as natural open space.

However, staff told council, if the goal is to develop more active park uses, they should be rezoned according to the type of park use. A detailed site analysis would cost $25,000 to $60,000 staff told council. Then there could be remediation on top of that, considering one site used to house a sewage treatment plant. Staff cautioned council that once the properties are rezoned and used as park land it would be difficult to have them rezoned for other uses.

“The overall goal generally was park land because North Saanich has very little park land of its own,” said Councillor Cairine Green.

It’s an important legacy to leave, she added.

“It’s the only patch of green all along the shoreline, the rest is all developed,” said Councillor Ruby Commandeur, noting the property as a park would be invaluable to future generations.

“What information could we possibly get that will change our minds? What are we waiting for?” asked Councillor Peter Chandler.

Councillor Bob Shaw, while noting he’s not opposed to the park land idea, was also cautious and reminded council that the properties were once seen as infrastructure. The largest of the three properties, 8931 Lochside Drive, used to be the site of a sewage treatment plant and the other two lots were bought by the Capital Regional District for consideration of a future sewage disposal plant.

“The thought at the time was they were infrastructure assets,” Shaw said. He pointed out that an infrastructure plan is coming soon from municipal staff and there may be some “staggering” long-term costs noted in that report.

The properties are appraised at nearly $3 million. The land at 8931 Lochside has an assessed value of $891,000 and is appraised at $1,464,000 while the other two properties at 8943 and 8957 Lochside are assessed at $578,000 and appraised at $750,000 each.

Shaw also expressed concern over the terrain of the land, with steep ravines and waterways, it may not be appropriate for a public park. “I think we need to have an assessment … as to suitability for park land,” Shaw said.

That didn’t change any minds, and council asked staff to prepare the path for rezoning the three properties from P1 to P4, and to refer the report to the Parks Commission for perusal. Shaw opposed the motion, citing financial implications that should be considered.

The decision, made during committee of the whole, will still need to be ratified during regular council.

House Flipping Tips - Tips to Make Your Investment Profitable

The concept of flipping properties is becoming more popular in the real estate business. We'll discuss some house flipping tips to make the process more successful. The common way to flip a house is by buying it below market value, doing some minor repairs and selling it for a profit. Flipping houses can be a very straightforward way to make some money but you have to be smart about what you are doing. By following these house flipping tips you may be more successful in your money making endeavor.

Calculate Your Costs. Buying some property, making improvements and reselling it is the major theme behind flipping properties. If you buy a property and put in more money than you get out, you are not being successful. Of course you may not make money on each deal but the more prepared you are, the better. Go into each deal knowing how much money you will need for renovations, what your holding costs will be (the money you will be losing by having it off the market) and what is a good selling price.

Know Your Market, Know the Property. Learn about the neighborhood you are buying into. It is best if you look in your own neighborhood because you know the type of people that surround you and the type of people that would be interested in buying in that neighborhood. Make sure the proposed improvements are suitable for your area. Do a thorough inspection of the property. Don't learn about a major repair after you've signed the papers.

Keep your emotions in check. A little talked about house flipping tip is to make sure you do not become emotionally attached to the property that you are trying to sell. You want to do just enough renovations to sell the property at a higher cost. You are not renovating it into your dream home. You may overprice it out of the market.

Be prepared. Expect the unexpected. Hope for the best but be prepared for something less. You may end up spending a little more than expected, or the house doesn't sell as quickly as expected. You should be prepared for these types of challenges.

Don't get too caught up in getting a property for way under the market value. There are other factors that go into getting the right piece of property. Follow these house flipping tips and find a property that will make you some money.

Property Sales in August Follow Usual Summer Trend

The number of property sales in the Greater Victoria area slowed during August but sales were again significantly higher than a year ago. Prices, meantime, remained stable with some increase for single family homes. A total of 764 homes and other properties sold in August through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 933 sales in July but up 48 per cent compared to the 517 sales in August of last year.
Victoria Real Estate Board President, Chris Markham, says it is usual for sales to slow in August, "Many people take holidays in August so it is not surprising to see sales soften somewhat. We are very pleased, however, to note the significant increase in sales last month compared to August of a year ago which gives further evidence
of the strengthening of the market."
There were 3,509 properties available for sale at the end of August, down 25 per cent from the 4,657 properties available in the same month a year ago. "The decline in the number of properties available for sale will continue to place some upward pressure on prices," said Markham. Sales so far this year are running over six per cent higher than in the first eight months of last year.
The average price for single family homes sold in Greater Victoria last month was $596,498, up from $565,469 in July. Markham noted that the average price was affected by 17 sales of over $1 million. "These included two sales of over $4 million, one in Saanich East and one in Central Saanich, and these had a significant impact on the overall average price," he stated. The median price increased $20,000 to $540,000. The six-month average was $569,546. The overall average price for condominiums was $317,312 last month, down from $328,441 in July. The average for the last six months was $307,347. The median price for condominiums in August remained unchanged at $290,000. The average price of all townhomes sold last month was $455,430 up from $443,109 in July. The median price dropped slightly to $419,000. The six month average was $421,565.
MLS® sales last month included 403 single family homes, 218 condominiums, 91 townhomes and 11 manufactured homes.

Top 5 tips for Buyers

1 It's all about location
Whether you're a first-time buyer, investor or existing homeowner, you need to understand the best locations for your investment, Linda says. "Buying the smallest house on the best street versus the largest house on a less preferred street will reap big rewards when it comes time to sell." As an investor, a condominium that is near public transit or a university is a good move.

2 Think about a condo
There's a surplus of inventory in the condominium market, so your realtor should be able to negotiate a good deal for you when it comes to buying a condo, Linda says. If you're buying as an investor, rather than a first-time homebuyer, you will want to consider leasing out your suite for the next four to five years before selling, she explains. "It's been suggested that the condo market should be in an upswing by 2013."

3 Know your credit rating
It's best not to just assume your credit rating is in order. To avoid getting any surprises before you meet with a lender, check your rating first so you have time to resolve any issues that might stand in your way of buying. You can call either Trans Union of Canada at 1-800-663-9980 or Equifax Credit Information Services Canada at 1-800-465-7166.

4 Know your price range and stick to it
Meet with one or more mortgage lenders to obtain a pre-approved mortgage before you start house hunting, Linda says. Once you know how much you can spend you can narrow down your choices. It's safer to buy within your budget, no matter the economic situation.

5 Head out of the city
It's booming in Milton, Ont., for example, Linda says. Young families are heading there to buy affordable and newer resale homes. Sometimes it pays to go further afield depending on what you're looking for. If you want more space and more property, but have a budget to stick to, a downtown location won't do. You have to widen your circle of prospective locations.

Top 5 tips for Sellers

1 Refresh and beautify
Getting your home ready for sale is crucial. Linda suggests considering a consultation from a professional stager so your home's potential is maximized when potential buyers see it. Think about getting rid of clutter, adding stylish accents to tired furniture and tidying the yard for curb appeal.

2 Upgrade and update
You don't have to completely renovate your home, but consider updating areas that are tired, such as replacing a kitchen counter and sink or replacing worn carpeting. Adding hardwood to a room or two is also helpful as this upgrade is becoming very popular to buyers, Linda says.

3 Make sure the price is right
Price your property right the first time, according to the current market conditions in your area. Some sellers believe that if they overprice their property, they have more room to negotiate or they can always reduce it later, Linda says. "This strategy can really hurt the seller." Prospective buyers will search for homes within their price range. If your home is listed too high, buyers may skip over it.

4 Don’t worry about a closing date conflict
If you receive a great offer on your home but the closing date is up to 30 days later than the closing date of the property you already purchased, don't sweat it, Linda says. Most mortgage lenders will approve bridge financing for approximately 30 days, if all conditions have been removed and you have a firm sale. For peace of mind, speak to your current lender prior to listing your property to confirm this, she suggests.

5 Get the best representation
Your home is most likely your largest investment so you'll want to feel comfortable when you go to sell it. Start off right by selecting a real estate agent who you feel you can trust, Linda says. Find someone who has a solid marketing plan plus a proven track record of successful negotiated sales.

HST?? (Harmonized Sales Tax)

Subject to the approval of the BC legislature and the Parliament of Canada, effective July 1, 2010, the government of British Columbia intends to harmonize its provincial sales tax with the federal Goods and Services Tax to lower costs for business, enhance productivity and create jobs.
To create a more competitive tax system, the Province and Federal Government have signed a memorandum of agreement setting out their intention to harmonize the Provincial Sales Tax (PST) and the Goods and Services Tax (GST) into a single sales tax. B.C. will have the lowest Harmonized Sales Tax (HST) in Canada, by combining a seven per cent B.C. rate with the five per cent federal Goods and Services Tax (GST), for a HST tax rate of 12 per cent.
Eliminating the PST and moving to an HST will remove a significant tax burden on businesses. The PST is an outdated, complex and inefficient tax paid by both consumers and businesses. The PST paid by business is generally incorporated (embedded) into the price of goods and services paid by consumers. The more links in the supply chain between raw materials and final goods, the greater the amount of PST embedded in the product.
Over 130 countries and four Canadian provinces have adopted similar taxes, called value-added taxes, which reimburse businesses that supply taxable goods and services for the tax they pay on their inputs. Implementing an HST in B.C. is the single biggest thing we can do to improve our economy and provide a competitive advantage for British Columbia business.
A 2007 C.D. Howe Report written by Professor Michael Smart of the University of Toronto showed that, in the three Atlantic provinces who adopted HST, per capita investment rose by more than 11 per cent, total investment in machinery and equipment increased by over 12 per cent annually and consumer prices fell after the 1997 reforms.
Since 2001, the B.C. government has taken significant steps to improve the B.C. tax system. The overall tax burden for families is generally the second lowest in Canada and will remain so after harmonization, primarily as a result of significant provincial personal income tax cuts, while corporate income taxes have been reduced and corporate capital taxes have been eliminated.
What HST means for the Province
Once fully implemented, the HST will make B.C. one of the most competitive jurisdictions in the industrialized world for new investment by removing about $2 billion in costs from B.C. businesses annually. $1.9 billion is removed from PST currently applied to business inputs. In particular:
• Construction sector saves $880 million
• Manufacturing sector saves $140 million.
• Transportation sector saves $210 million
• Forestry sector saves $140 million
• Mining, oil and gas saves $80 million
The provincial hotel room tax on short term accommodation will also be harmonized with the federal goods and services tax (GST).