Karel Palla & Darryl Sjerven : RE/MAX Select Realty : Archived blog posts for : November 2016

City of Vancouver Approves Empty Homes Tax

Posted on November 16, 2016 by Karel Palla

The City of Vancouver has approved an Empty Homes Tax aimed at boosting rental rates in our city’s incredibly hot market.

All non-principal residences left unoccupied for at least six months of the year will be subject to a 1% tax on the assessed value of the property, as of 2017.

The new tax is aimed at tackling affordability issues and increasing rental supply in Vancouver, where it is becoming impossible to even find a place to rent, let alone buy.

According to the City, more than 22,000 homes in Vancouver were found to be unoccupied or occupied by temporary residents on Census Day in May 2011.

Meanwhile, this year the City found 10,800 homes were not occupied, and concluded that put a strain on a housing market that’s already stretched to capacity.

There will be some exemptions on which land and homes are subject to the tax, including .

-properties are undergoing major renovations, under construction or in redevelopment (with permits)
-the registered owner (or other occupier) is undergoing medical or supportive care
-the property is subject to existing strata rental restrictions

The whole system will be self-reporting, with the City carrying out random audits to ensure compliance. And if you are caught not paying the tax, there will be penalties to pay.

The City’s plans come after notifying 220,000 homeowners, holding open houses attended by 500 residents, and receiving more than 10,000 responses to an online survey.

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RE/MAX 2016 Spotlight on Luxury Properties Report

Posted on November 2, 2016 by Karel Palla

Check out the RE/MAX 2016 Spotlight on Luxury Report!

Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Calgary, Victoria and Oakville in the rst nine months of 2016. In the Greater Toronto Area and Vancouver, Canada’s largest high-end housing markets, sales of $3 million-plus homes saw signi cant increases, of 86 per cent in the GTA and 41 per cent in Vancouver.

While Vancouver sales of $1 million properties were up by three per cent overall, single-family home sales in that range declined by seven per cent year-over-year. One factor contributing to this decrease is the foreign buyer tax implemented by the provincial government in August, which has resulted in slowing demand for single-family detached homes from o -shore buyers. Additionally, higher inventory of luxury homes may be lessening buyers’ sense of urgency.

Click on the icon below to read the full report.

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Home Sale and Listing Activity Below Historical Averages in October but Prices Are Up 25% Compared To Last Year

Posted on November 1, 2016 by Karel Palla

Home sale and listing activity dip below historical averages in October

Reduced home sale and listing activity are changing market dynamics in communities across Metro Vancouver*.

Residential property sales in the region totalled 2,233 in October 2016, a 38.8 per cent decrease from the 3,646 sales recorded in October 2015 and a 0.9 per cent decrease compared to September 2016 when 2,253 homes sold.

Last month’s sales were 15 per cent below the 10-year October sales average.

“Changing market conditions compounded by a series of government interventions this year have put home buyers and sellers in a holding pattern,” Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president said. “Potential buyers and sellers are taking a wait-and-see approach to try and better understand what these changes mean for them.”

New listings for detached, attached and apartment properties in Metro Vancouver totalled 3,981 in October 2016. This represents a decrease of 3.5 per cent compared to the 4,126 units listed in October 2015 and a 17 per cent decrease compared to September 2016 when 4,799 properties were listed.

Last month’s new listing count was 9.5 per cent below the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,143, a 4.5 per cent decrease compared to October 2015 (9,569) and a 2.3 per cent decrease compared to September 2016 (9,354).

The sales-to-active listings ratio for October 2016 is 24.4 per cent. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“While sales are down across the different property types, it’s the detached market that’s seen the largest reduction in home buyer demand in recent months,” Morrison said. “It’s important to work with your local REALTOR® to help you navigate today’s changing trends.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $919,300. This represents a 24.8 per cent increase compared to October 2015 and a 0.8 per cent decline compared to September 2016.

Sales of detached properties in October 2016 reached 652, a decrease of 54.6 per cent from the 1,437 detached sales recorded in October 2015. The benchmark price for detached properties is $1,545,800. This represents a 28.9 per cent increase compared to October 2015 and a 1.4 per cent decrease compared to September 2016.

Sales of apartment properties reached 1,178 in October 2016, a decrease of 23.7 per cent compared to the 1,543 sales in October 2015.The benchmark price of an apartment property is $512,300. This represents a 20.5 per cent increase compared to October 2015 and a 0.3 per cent increase compared to September 2016.

Attached property sales in October 2016 totalled 403, a decrease of 39.5 per cent compared to the 666 sales in October 2015. The benchmark price of an attached unit is $669,200. This represents a 25.7 per cent increase compared to October 2015 and a 1.1 per cent decrease compared to September 2016.

Download the complete stats package by clicking here.

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