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Two times appraisal in the new uncertain condition of Real estate market

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Two times appraisal in the new uncertain condition of Real estate market

The potential for rapidly dropping prices in southern Ontario is forcing appraisers to have a second look at properties they have already assessed to see how much the market has shifted.

Claudio Polito, a Toronto appraiser and principal owner of Cross-town Appraisal Ltd., says lenders basing mortgage decisions on value, as opposed to income and credit history, are really trying to stay on top of a market that appears to be changing rapidly.

By his estimates, prices in the Greater Toronto Area have dropped anywhere from five per cent to 15 per cent over the last 30 days. The next set of statistics from the Toronto Real Estate Board are due out Monday and will mark the first full month of data since provincial changes to cool the market that included a tax on foreign buyers.

“Lenders I deal with they want to know if your property is still worth $1 million if they are loaning you say $650,000,” said Polito. “They don’t base it on anything else. We have to be precise because it’s not a bank, (smaller lenders) can’t afford to lose a dollar.”

It wouldn’t be the first time, appraisals have lagged purchases prices — a phenomenon that previously caught some Vancouver buyers by surprise when it was time to close.

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Real estate market makes appraisers for 2nd appraisal

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Real estate market makes appraisers for 2nd appraisal

The potential for rapidly dropping prices in southern Ontario is forcing appraisers to have a second look at properties they have already assessed to see how much the market has shifted.

Claudio Polito, a Toronto appraiser and principal owner of Crosstown Appraisal Ltd., says lenders basing mortgage decisions on value, as opposed to income and credit history, are really trying to stay on top of a market that appears to be changing rapidly.

By his estimates, prices in the Greater Toronto Area have dropped anywhere from five per cent to 15 per cent over the last 30 days. The next set of statistics from the Toronto Real Estate Board are due out Monday and will mark the first full month of data since provincial changes to cool the market that included a tax on foreign buyers.

“Lenders I deal with they want to know if your property is still worth $1 million if they are loaning you say $650,000,” said Polito. “They don’t base it on anything else. We have to be precise because it’s not a bank, (smaller lenders) can’t afford to lose a dollar.”

It wouldn’t be the first time, appraisals have lagged purchases prices — a phenomenon that previously caught some Vancouver buyers by surprise when it was time to close.

Read more

Condo Prices “Can’t Not Increase” in 2017 – But BC Election Will Effect Real Estate Market

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Condo Prices “Can’t Not Increase” in 2017 – But BC Election Will Effect Real Estate Market

Demand for condos so high and supply so limited, prices will keep rising, even under election-related market uncertainty, argues leading local agent

As house prices have slid over the fall and winter, condo sales have stayed the course and prices will continue to rise in 2017, predicts by the professionals.

We see continued price appreciation in condos this year – they can’t appreciate at the pace that they’re selling. But at the same time, you’re not going to double your money in 12 months. Whereas houses will see more of a balanced market, buyers will have time to decide, there will be inspections on houses, and it will take more than a weekend to sell your house. In comparison to the last year or so, it will be a pretty boring year.

While the rest of Canada’s economic activity will be limited, especially in Ontario and Quebec, the West will continue to do well… We have a sense of economic activity in British Columbia that gives positivity to the real estate market. The Canadian dollar will remain low, which will continue to draw in foreign money, despite the 15 per cent foreign buyer tax – that tax shocked the market but hasn’t stopped it.

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Lego-like modular housing in Vancouver

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Lego-like modular housing in Vancouver

The City of Vancouver is a few pieces closer to finishing its Lego-like modular housing pilot project at the corner of Main Street and Terminal Avenue.

Work crews hoisted finished sections of the 40-unit building into the air Wednesday, lowered them and snapped them into place, fleshing out a structure that the city had previously announced. The bulk of the building is formed from moveable, modular housing units that have a 30-40 year lifespan and are intended to be rented out at affordable rates.

Among those on hand to watch the construction — and speak to reporters — was Vision Vancouver Coun. Kerry Jang.

“People need a place that’s decent, that’s clean and warm and gives them dignity … a place to be stable and to start to heal,” Jang said before touting the merits of modular homes.

“(T)his ain’t no trailer park,” he said.

The city is underwriting the $3.5-million project, which is expected to be completed in mid-February. Most of the units are 250 sq. ft., though the first floor has larger, wheelchair-accessible homes. Vancouver Sun

Nearly %50 of B.C.’s most expensive homes secretly owned

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Nearly %50 of B.C.’s most expensive homes secretly owned

Critics say the B.C. government must work to close loopholes that allow homeowners in the province to hide their identities behind false fronts such as shell companies.

NDP housing critic David Eby and Green MLA Andrew Weaver called for changes after reading about a Transparency International report that slams Canada for failing to close loopholes that allow homes to be owned through shell companies, trusts and nominees. The report shows almost half of Vancouver’s 100 most expensive houses were bought using shell companies or other methods that obscure the identity of the owners.

Report author Adam Ross found that use of tactics to obscure ownership has increased in the past five years in B.C.  He also concluded the prevalence of opaque ownership in B.C. luxury real estate makes it impossible to measure how much offshore cash is invested in B.C. homes, even though B.C. is attempting to collect data on foreign ownership.

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A Quick Review on 2016 Vancouver Real Estate Year

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A Quick Review on 2016 Vancouver Real Estate Year

From soaring values, to shadow flipping, to foreign buyer tax and much more – it has been an incredible year. Here are the real estate news highlights of 2016

 

Phew! What a year it’s been for Vancouver and BC real estate stories. From soaring values, to shadow flipping, to foreign buyers tax, to tough new mortgage policies and then Donald Trump’s US presidential election win… 2016 has seen it all. Here are the highlights of our local year in real estate.

January

January real estate news is always dominated by the New Year’s BC Assessment figures, which shocked everyone in January 2016. The value of residential real estate in Vancouver compared with the previous year went up by 16.96 per cent – far greater than the already-high 9.5 per cent of the previous year but only the fourth steepest increase in BC, according to BC Assessment figures released January 4. Lions Bay in West Vancouver saw the province’s highest rise, at 17.96 per cent year over year, followed by Squamish at 17.33 per cent and Burnaby at 17.07 per cent. However, the most expensive properties in the province were to be found on Vancouver’s West Side – check out this separate story here about the 2016 roll’s top-valued homes (but first, take a guess whose house made the list again…).

In other January news, Royal LePage came out with its annual outlook, predicting that home prices in Vancouver would rise another nine per cent across 2016. The ensuing super-hot spring market, combined with the summer and fall’s drop in sales and detached-home prices, means that this prediction could turn out to be fairly accurate – albeit not necessarily for the expected reasons.

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New Home Sales in Metro Vancouver

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New Home Sales in Metro Vancouver

“Metro Vancouver’s new home market was negatively impacted by the recent government initiatives to slow down sales activity in the region,” according to the latest quarter Urban Development Institute State of the Market Q3 2016 report, compiled by real estate think tank Urban Analytics and released November 17.

Just over 3,000 new multi-family home sales were recorded in 2016’s third quarter, which is a decline of 34 per cent from the same quarter last year and a drop of 55 per cent from the six-year record set in 2016’s second quarter, said the report.

The figures run contrary to recent media reports suggesting that the new home market is bucking the downward trend seen in Metro Vancouver’s resale market. There have also been several press releases issued recently to media by developers citing recent presales successes.

“Some developments are doing really well, but there is an overall slowdown in the new home market,” Jon Bennest, principal at Urban Analytics and one of the report’s authors, confirmed to REW.ca. “There are a number of reasons for this, and the new foreign buyer tax is just one of them. In fact the market was already showing signs of cooling prior to the introduction of the foreign buyer’s tax.” Read more

Trump Presidency and Canadians; Pros & Cons

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Trump Presidency and Canadians; Pros & Cons

We can all agree: a Trump presidency means some big changes are coming for Canada.

The world was on the edge of their collective seat as the Trump/Clinton battle for the presidency came down to the wire. As battleground states like Florida, Ohio and Pennsylvania turned red and Trump’s electoral support began to tower over Clinton’s, it became clear that a Trump victory wasn’t just a far-off possibility (as the polls had predicted only hours earlier), it was about to become a reality.

America is Canada’s largest trading partner, and the two countries share the longest continuous border in the world. It’s a foregone conclusion that whichever leader Americans selected, it was going to impact Canadians, too. Over 80% of Canadians indicated they believed a Clinton presidency would be better for Canada. But now that Trump has secured the vote, we’re facing a very different reality.

How will a Trump presidency and administration impact Canada?

Like the fallout from Brexit, that remains to be seen. However, based on all the election promises Trump made, some of the biggest changes Canadians can expect to see materialize in the coming months include: Read more