Focused On Your Home Blog

Random Musings About Vancouver Real Estate

Wed, 10 Jun 2009 05:17:23 GMT

Just some thoughts from the past week or so...

1. There Are Fewer 'Deals' Out There

I've been looking at two bedroom condos downtown with a client for about four weeks. When we first started looking there were a number of listings that had been lingering on the market for around 100 days. For the first week or so of our search in the sub 500K price range, the most desirable got a ton of showings, but didn't sell right away. However, within a few weeks, the market heated up considerably and they had all been snapped up. Anything new is coming on at a higher price and there are not many below 500K. I have noticed an upswing in listings over the last week (last two days there 259 new listings in Vancouver East, Vancouver West and Richmond vs. 170 solds, a 1.52:1 list to sell ratio). I'm not sure it's enough to satisfy the buyer demand out there (at least in the short term) while interest rates remain historically low.

2. Interest Rates May Be Going Up

I've heard rumours and rumblings that interest rates are going to rise in the next week. One mortgage broker suggested rates could go from 3.8% to 4.59% for a five year fixed (the most popular term). That would mean approximately 10% less buying power for home shoppers. I'm sure this will stoke the market even more in the short term, but obviously will hurt once the buyers who locked in a 3.8% mortgage have made their purchases. If you're thinking about selling, now is the time. If you're thinking about buying, call your mortgage broker (or I can refer you to one) and lock in a rate. If you already own and are on a variable rate, it might be time to lock-in (call your broker for advice).

3. City Of Vancouver Changing Downtown Parking Rules

In an effort to encourage people to 'go green' and give up their cars in favour of transit, the city of Vancouver is considering changing its parking requirements for new commercial developments. New developments would be allowed to build only half the number of parking spots. City council will discuss the proposed changes on Thursday. Should the changes pass, the value a parking spot downtown will skyrocket, along with parking rates. Here's a link to more on the story.

4. I Don't Use a Lock Box. Here's Why...

Last week, I was setting up some condo showings for a client and talked to a realtor who had their Lock Box stolen from the exterior of the building. Unfortunately, the security of the entire building was compromised and all the exterior doors and the unit itself needed to be rekeyed. I have a Lock Box key, but I never put a Lock Box on my listings. The security of my clients' and their neighbours' homes means too much to me.

Question or comments? Let me know.

Take it easy everyone.

My Apologies

Wed, 03 Jun 2009 06:23:15 GMT

It's been tough to find time to sit down and write for the ol' blog lately. The market has been hot and I have a number of buyers who are anxious to invest while interest rates remain low. Rates in the 3% range won't last forever.

I've been out pounding the pavement with clients at showings, writing offers, and unfortunately, facing some multiple offer situations. Here are my impressions of the current market, using downtown Vancouver as my example.

Relatively new one bedroom units in the 300-400 range are flying, as are two bedrooms around the 500 mark. New listings are getting showings, and often offers, the day they are listed (Vancouver is so real estate crazy). Anything above 400K for a one bedroom unit and above 500K for two bedrooms has been moving much slower. However, it's entirely possible that buyers who miss out on a lower priced property may increase their budget in order to successfully secure a purchase while they have a preapproved mortgage at today's low rates.

At the same time, I've seen an increase in new listings over the last week (265 in Vancouver West, Vancouver East and Richmond over the last 3 days).

Some advice...if your realtor tells you the property you are interested in purchasing will be gone by the weekend, take notice, and make your decision quickly. If you are thinking about selling, now is the time to take advantage of the 'spring bounce' and get your property on the market.

As always, please feel free to call or email with questions or comments.

All the best, Rob

A Picture Is Worth Thousands

Tue, 21 Apr 2009 05:05:06 GMT

I have a client who, in my opinion, just picked up a great deal on a Downtown Vancouver Studio that has lingered on the MLS for four months. The listing was arguably overpriced initially, and quickly became stale. A 40K price drop did little to revive interest.

The unit is in a great building, in a prime area of Downtown Vancouver, has a nice lay-out and a view to English Bay. Unfortunately, none of this was visible because the listing only had one photo and it was of the exterior of the building.

As this lonely studio lingered on the market, I'm sure agents and home buyers overlooked it, wondering what was wrong with it because the listing lacked photos. Even my client and I weren't sure what to expect the first time we viewed it, but were pleasantly surprised with what we found and made an offer shortly after, negotiating another discount on the price.

I understand that, at times, sellers don't want photos for privacy or some other reason, but they are doing themselves a disservice and risking a quick sale. At the very least, get out your digital camera and take some pictures yourself. Better yet, hire a professional photographer to take pictures that will show your home in the best possible light.

A picture tells a thousand words and in the case of real estate, a picture can be worth thousands of dollars.

Here's a final piece of advice...Don't overlook the 'dogs' on the market. I believe that my client was able to find a nice deal because he was willing to look beyond the newest listings.

My Thoughts On The Market (This Week)

Thu, 09 Apr 2009 22:25:41 GMT

The Lower Mainland real estate market seems to be in a constant state of flux lately. Depending on where you go for your real estate news the market is either still tanking, as the Vancouver Province reported today, or in a rebound, according to last week's Vancouver Sun.

There is a lot of confusion, with some sellers still demanding last year's prices for properties that will not sell and some buyers who have made playing low-ball a new sport (not that I have a problem with low-ball offers, they have their time and place).

By all accounts, from the realtors who are at the front line, the market has heated up considerably from the dismal start we had to the year. I've been showing condos in downtown Vancouver over the last couple of weeks and the good product is moving (and quickly). I have a client looking for an investment condo who just missed out on a property he loved because he wanted to take a couple of days to think about it. As he put it, "you snooze, you lose." There are some great opportunities out there for buyers who want to get into the market and are willing to buckle in for the long term (at the very least 3 years). Meanwhile, overpriced and less desirable product continues to sit unloved and un-shown.

That does not mean the prices are not continuing to slide downward. However, it's my belief that the worst is behind us. Prices are declining at a much slower rate than last year and appear to be heading towards stabilizing.

Here is the wild card in the game...INTEREST RATES. Today, you can get a five-year fixed rate for around 3.89%. Combine today's historic low rates with current prices and buyers have all the incentive they need to go out home shopping. If rates begin to climb back towards the mid 5s, it's my belief that the current stream of buyers will dry up. After all, we're still dealing with an uncertain economy.

So my advice...if you're thinking about selling and you're committed to it because you're upgrading, getting out of the market, moving out of the city, or another reason you NEED to sell, get your property on the market now and take advantage of the spring market. If you've thought about buying, call your realtor, set-up an appointment with a mortgage broker to get your pre-approval, and go kick some tires.

The only thing I can say with certainty is that the Canucks are in the playoffs. Which raises even more questions...which team is a better match-up Chicago or Columbus?

Questions or comments? Give me a call or email me at rob@robviccars.com

Discount Condo Sales in Vancouer

Sat, 04 Apr 2009 19:09:48 GMT

This past week I investigated a couple of the 'discount' condo sales that are currently all the rage. As the market has dropped, and hopefully, at this point leveled off and stabilized, developers are still trying to unload unsold product, and it seems with a relative amount of success.

I took a client to go through the receivership sale at the Sophia at 298 East 11th ave. They had about 25 or so units (1 and 2 bedrooms and townhouses) and we were mostly impressed by the units and the pricing, a 1 bedroom starts at 295K, 2 bedrooms at 425K and the townhouses are 499K. All the units are finished nicely. They all have the same dark wood floors and granite counters. The colours they are unlikely to offend any potential buyers and have mass aesthetic appeal. After going through about 10 of the 1 bedrooms they all blended into one.

While I can't complain about the product, I do have some minor issues with the marketing. Realtors were first notified about the sale about three weeks ago. There were two previews for realtors and their clients, the first was on Thursday, March 26 and the second on Thursday, April 2. After that they opened for the public. Here's my complaint, initially the units were to be sold-off in a "1-day sale" on Sunday, April 5. However, after the first preview on March 26, the rules were changed and offers were taken on a first-come, first-served basis. By the time of the second preview on April 2, virtually everything already had an offer on it and I'd be surprised if there was anything available by the time of the public open house.

I think some buyers missed out an opportunity (mine decided the building wasn't for them) and wound up disappointed because the rules were changed in the middle of the game. I will say that the Receiver Manager's (The Bowra Group) goal is to sell the units as quickly as possible. It's their sale and if they want to change the procedures mid-stream they are well within their rights to do so, but I'm sure they faced off with more than a few angry and disappointed buyers.

I also went by The Beasley presentation centre downtown as I have a client interested in downtown studios and one bedrooms. The Beasley has been offering what they claim are deep discounts (their website indicates buyers can save 100K - 250K). As far as I've heard sales have gone well for the last round of pre-sales and a final release occurs on April 5. They even have a tent set up for people to camp out until Sunday morning. I counted about 4 people already on line and this was Thursday afternoon.

I have to question the wisdom of buying a pre-sale in the current market. The developer requires 5% down on an accepted offer, another 5% 90 days later and an additional 10% one year before the building completes in 2012. Assuming the market stays relatively flat for the next 3 years couldn’t that money be better invested? The days of flipping assignments for profit are over for now. In my opinion, it’s hardly something worth camping out for three or four days in downtown Vancouver for.

Note - It's been a long time since I've written on my blog, but as I'm revamping my marketing for a web 2.0 world, I thought time was right to get back at it. Starting today, I'll have regular new content regarding the Lower Mainland real estate market and whatever else comes to mind. Next week, I'll be launching a video blog. I'm not sure yet if the video blog will replace my current blog or if I'll do a combination of writing and video. Check back next week.

Making Moving Easier

Sat, 21 Jun 2008 21:34:06 GMT

Moving is a pain. One of worst parts is trying to find packing boxes. The most common compromise is to raid the local liquor store or troll the back alleys looking for cardboard boxes. A couple of years ago my wife and I found a great alternative...Moving Blocks.

When we were getting ready to move from an apartment to a townhouse my wife discovered a company that rents ‘Moving Blocks’.

Basically, the blocks are sturdy, plastic boxes which are delivered to your home when you are ready to start packing and picked up when you are moved into your new home. I’d say one moving block is basically the size of two liquor store boxes. Once packed, the lid is simply folded over and locks into place. Because the blocks are all the same size they are easy to stack and fit perfectly on a dolly.

The blocks also come with labels for you to identify which box needs to go to the bedroom and which goes to the kitchen on the other end. And because they are constructed of waterproof plastic there is no worry about your stuff getting wet if it happens to rain on your moving day.

They take the hassle out of trying to pack a bunch of odd sized cardboard boxes, tape them up and stack them like a Tetris puzzle in the truck. Then on the other end of your move wield a knife to cut them open, break them down after unpacking and find some place to dispose of your now useless pile of cardboard.

We’ve moved a couple of time since and have used Moving Blocks with each subsequent move. Our movers always say that the blocks make their job a lot easier.

We’ve also recommended the company to all our friends who have moved and we’ve heard nothing but good things. Everyone raves about the ease of use and convenience.

The company rents packages for three week periods starting at $100 for a one bedroom package up to a three bedroom bundle (probably big enough for a small house) for $200.

I don’t have any business relationship with the company ‘Moving Blocks’, but it is the company we have used in the past and I highly recommend them. I know there are other companies in the Lower Mainland that provide a similar service. If you’re getting ready for a move here is the link to the Moving Blocks website – www.movingblocks.com. Check them out, I think you'll be pleased you did.

It’s BBQ season! Grill Buying Advice

Thu, 22 May 2008 05:08:53 GMT

The weather is getting warmer (finally!) which means it’s time to dust off the barbecue and toss a steak on the grill. Maybe you’ve just taken the step from apartment living into a townhouse or house and it’s time to buy your first barbecue.

It can be a bit confusing when you first start shopping, but the first question you’ll need to answer is whether you want a propane or natural gas grill.

Natural Gas provides the freedom from ever having to fill another propane tank. If your home has natural gas you may already have a barbecue box ready to go. If not, you’ll have to hire a licensed gas contractor to run the pipes from your gas meter to your grill’s location.

Once again, the big pro is the constant supply of gas – no running to the gas station 5 minutes after you have thrown a thick and juicy tenderloin on the grill. In the long run, natural gas will cost less as the fuel is less expensive.

On the con side, it can be fairly expensive for the upfront cost to run the pipes from your meter to your grill. In my case, the meter was about 38 feet from where I wanted to put my grill. It cost nearly $600 for the job, including the cost of the permit. For me the constant supply of gas was worth the cost.

Propane grills are generally a bit cheaper than their natural gas counterparts. However, I would recommend buying yourself an extra tank to keep on standby.

Propane may not be the best option if you’re planning on running a large grill because you can end up going through an enormous amount of propane and making frequent trips to re-fill your tanks. In addition, you’ll always pay for a complete fill whether your propane tank is completely empty or not.

Either way your grill will function the same. Both will heat to an adequate temperature to cook all kinds of tasty dishes to impress your friends and family.

It’s important to remember that your grill will either be set-up for natural gas or propane and is not interchangeable.

Finally, here’s some general advice...

Look for solid, stable construction

Buy a grill with stainless steel or cast iron cooking grates as they sear better and are easier to clean than porcelain enamel

A built-in thermometer can be very useful

A tight fitting lid can be very important for indirect cooking for dishes such as ribs.

Buy good tools, a stainless steel scraper can make cleaning you grill easier (but don’t scrub too hard!)

Pre-heat your grill and then scrape it right before its next use.

Rising Housing Values A Challenge For First-Time Buyers

Sat, 26 Apr 2008 04:41:11 GMT

While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues. Innovative financing has become key to homeownership in today’s environment – with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

First-time purchasers continue to play a pivotal role at both a local and national level. The impact they have on the housing market is significant, as they are the impetus for sales in the mid-to-upper price ranges. As long as this segment of the market remains healthy, the real estate outlook will continue to be favourable.

Inventory levels, however, remain one of the foremost concerns facing purchasers across the country. A shortage of available entry-level product was identified as a major obstacle impeding buyer intentions in three-quarters of markets surveyed in the report, including St. John’s, Moncton, Fredericton, Halifax-Dartmouth, Ottawa, Greater Toronto Area, Hamilton-Burlington, Niagara Falls, Winnipeg, Regina, Saskatoon, Greater Vancouver, Victoria and Kelowna.

Doom and gloom reports coming from south of the border have yet to hinder overall momentum. First-time buyers are still leading the charge, taking advantage of every resource available to achieve homeownership. They’re determined to get into the market sooner rather than later. If suburban locations, smaller condominiums and town homes, or a little sweat equity is what it takes to get into the market, these purchasers are game.

Although average price is the barometer for housing values in most major centres, first-time buyers looking to achieve homeownership consider starting prices a more meaningful gauge of affordability. Starting prices can be substantially lower than the market average. For example, average price has surpassed the $600,000 benchmark in Greater Vancouver, while the starting price for a detached home can hover as low as $237,500 in the peripheral areas.

The best value for the dollar continues to be found in the suburbs. For those unwilling to sacrifice on location, small condominium units in new developments and condominium conversions of rental buildings offer up the next best alternative. Condominium conversions in some of the country’s major centres can be picked up as low as $150,000 to $175,000.

RE/MAX Affordability Report, 2008

Vancouver's Real Estate Market Comes Into Balance

Sat, 12 Apr 2008 06:58:18 GMT

The Real Estate Board of Greater Vancouver (REBGV) released some interesting statistics last week, showing that while "there were fewer housing sales in March 2008 compared to last year, residential prices continued to climb."

This could mean that we are coming into what could be described as a "balanced" market.

"The market is continuing to balance, with sales and listings beginning to re-align with our 10-year averages," says REBGV president, Dave Watt. "The selection of inventory hitting the market is wider than we have seen in the past few years, which gives prospective buyers more choices."

For Buyers, this is good news, as they will have a little more time to shop around and consider their purchase. For Sellers, this just emphasizes the importance of pricing your home sharply the first time around. A well priced property is still going to be highly sought after and sell quickly, as interest rates remain low and buyers seek to get into the market or climb to the next rung on the property ladder.

Here are the stats for March as reported by the REBGV (FYI - benchmarks represent a typical property within each market);

Residential property sales in Greater Vancouver totalled 2,997 in March 2008, a decline of 16.3 per cent from the 3,582 residential sales recorded in March 2007, and a decline of 25.7 per cent compared to the 4,033 sales in March 2006. New listings for detached, attached and apartment properties increased four per cent to 5,674 in March 2008 compared with March 2007, when 5,456 new units were listed."

Sales of detached properties declined 20.2 per cent to 1,116 from the 1,399 detached sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 12.1 per cent from March 2007 to $764,616.

Sales of apartment properties in March 2008 declined 10.6 per cent to 1,370, compared to 1,532 sales in March 2007. The benchmark price of an apartment property increased 11.5 per cent from March 2007 to $389,609.

Attached property sales in March 2008 are down 21.5 per cent to 511, compared with the 651 sales in March 2007. The benchmark price of an attached unit increased 10.6 per cent between March 2007 and 2008 to $473,543.

Depending on what happens with interest rates over the next couple of months the market should heat up over the spring, as many experts are predicting we should see another drop. This should encourage more buyers to get into the market.

In my opinion, I think we'll see a busy and buoyant market for both buyers and sellers this spring.

Making Your Home A 'Smart' Home

Thu, 03 Apr 2008 04:47:47 GMT

For most of us, complete home automation is beyond the reach of our budgets, but there are some easy ways to incorporate ‘smart’ technology into your home, making life more convenient and helping to save you money. Until the price comes down on robot butlers, here are some of my suggestions to making your home ‘smart’

At the high end of the market, the technology is currently available to control nearly everything in your home from one central system. Things such as your heat, lighting, TV and music can be adjusted whether you’re at home or away using your cell phone or on a wireless connection on your laptop.

Even if your budget isn’t limitless there are many easy and inexpensive ways to incorporate similar features to your home.

Wireless Router – This is the heart of your smart home. You can buy a wireless ‘G’ router for well under $100, or for even faster speeds spend a few more dollars and buy a Wireless ‘N’ router. Most of my electronic devises are attached to my wireless router. My wife and I can access the web from anywhere in the house or in the yard on our laptops. Our printer is also connected to our network through our router so we can send documents to print without our computers having to be hardwired.

SlingBox – it’s a device which allows you to stream your TV’s cable, satellite or personal video recorder to any computer connected to the internet. Connect one end of your cable to the Slingbox and the other end to your wireless router, download a little software and you are good to go. I originally bought a Slingbox so my brother in Japan could catch Canucks games and the NFL, but it’s been great for keeping tabs on what is happening at home when I’m travelling or when my daughter is watching Dora, The Explorer’s latest adventure. You can also use a Slingbox to watch TV on your internet equipped cell phone or PDA.

Stream music and video – From music bridges (Sonos Music Bridge) to media extenders (Apple TV, Xbox 360) there are a number of devises on the market and they are all relatively inexpensive. Connect one to your network and your home theatre system and you’ll have access to all the music and video stored on your computer. I use the Xbox 360 and Windows Media Center. Apple TV and Microsoft are also in the beginning stages of offering movies and TV shows for rent and music for purchase.

Personal Video Recorder – I can’t live without my PVR anymore. I set it up to record the TV programs I want and I can watch them on my schedule (and even skip the commercials). It’s also been great to keep a steady stream to children’s programs on hand for my daughter, and each time a new one is recorded, the old one is deleted. While PVRs are still relatively expensive, the prices from the cable and satellite companies are coming down.

Programmable Thermostat - I mentioned saving money before, and updating our old thermostat to a new programmable thermostat probably cut our heating bill between 1/3 and 1/2. Thermostats are very easy to install if you can handle a screwdriver. Once installed, simply program the thermostat to turn your heat down or off when you’re at work or away from home.

If you are interested in learning more about ‘smart’ homes, the National Post recently published an interesting article on the subject. Meanwhile, I’ll be saving my pennies for my robot butler.

Shopping For Your Next Home...Sell First Or Buy First?

Sun, 23 Mar 2008 06:08:23 GMT

You've decided it's time to make a move. Maybe you've outgrown your current home, you just got a new job which means it's time to move to another area of the city, or you've decided it's time to downsize. Whatever the reason, you're probably wondering what your best strategy is, should you buy first or sell first? Each has its own pros and cons...

Sell First:

This is the more conservative approach, but it does have some benefits. First of all, once you have sold your house, you will know precisely how much money you have to work with. With a concrete price range, you’ll be able to narrow the pool of houses before you begin looking, and negotiate accordingly. In this market, sellers are not likely to consider a “subject to sale” offer, and if you’ve already sold you’ll be in a position to make firm offers. You can be first in line with an unconditional offer you know you can afford. If you have already sold your ,house, you probably have a wider opportunity to look around, negotiate, and find the best deal and fit for you and your family.

On the other hand, if you don’t find the right property before the closing date of the house you’ve already sold, you may have to look for temporary housing until you do find what you’re looking for. That could mean a few weeks with the in-laws, other family or a rental until you find your next home.

Also, if you have a mortgage in place on the home you’ve sold you’ll pay a discharge penalty (usually an amount equal to 3 months interest). Most lenders will credit this back to you when you transfer your mortgage and complete the purchase of your next phone, but the clock will be ticking, as most lenders only give up to 90 days between the two closing dates.

Before you opt to sell first, you should determine whether you have alternate, temporary options, in case you have to move from your house before you’ve found a new one.

Buy First:

This market is still pretty fast moving and you don’t want to miss any opportunities if the perfect home comes along. However, most sellers are unlikely to consider an offer that is "subject to sale", This may mean buying a new house without having sold your current home. It may be a matter of timing—grabbing hold of the home before it’s too late. The same might be said of a property you haven’t had your eye on previously, but that catches your attention due to its uniqueness or unbelievable price. If buying first means you don’t miss out on the real estate opportunity of a lifetime, it may be the best move.

If you buy another property and aren’t able to sell your current home quickly enough, you could end up having to finance both homes and shoulder the extra debt until you sell. You can get a financial appraisal or market evaluation of a home prior to selling, but this doesn’t guarantee the price you’ll ultimately receive for the home. Since your selling price will be an unknown, jumping into a purchase could be a gamble, particularly if your budget is tight.

If you buy first, you may be faced with owning two homes at once. Consider the fact that if your current house doesn’t sell quickly enough, you may be forced to sell it off at a reduced price in order align the closing dates of your two properties. If you decide to buy first, you may want to try to negotiate a completion date that is several months off to give some time and flexibility if your home doesn’t sell right away.

My family faced the "buy first or sell first?" question last year. My wife and I decided the best strategy for us was to sell first. It was comforting to know that the proceeds of our sale were in the bank, but we did end up in temporary accomodations with family while we shopped for our next home.

It took a while, but we were lucky to find our current home before our 90 day window with our lender closed, allowing us to keep our current mortgage rate and have our discharge penalty credited back to us.

Plasma Or LCD? How To Buy The Right Flat Screen For You

Fri, 14 Mar 2008 03:08:12 GMT

So you've just moved into your new home and you're thinking "a flat-screen TV would look great over the fireplace." Besides being an excellent space saver, flat-screen TVs look cool and produce amazing images when paired with an HDTV source. However, once you've decided to buy a new TV, the most common question is LCD or plasma?

Before we tackle that question, the first thing you should do is decide on screen size and that really depends on the size of your room. If you sit between 5 and 10 feet away from the TV then you could pretty comfortably consider between 42" and 50".

As far as LCD or plasma, the general rule is below 42" go with LCD and at 50" go with plasma. Between 42" and 50" you could go either way, but my personal opinion is to stick with plasma.

Although LCDs are catching up, plasma displays are generally better with fast action, such as sports. Plasma is also a better option if you want rich colours and deep blacks. On LCD TVs the blacks can look a little grey because a bit of light bleeds through the pixels. Plasmas are also a bit cheaper, especially as screen size increases. Plasma displays offer better viewing angles, as the picture on an LCD can appear a bit washed out if you're not sitting directly in front of it.

On the other hand, LCD's consume less power, and weigh a bit less than plasmas. LCD might be the way to go if your room is very bright, or you watch a lot of TV in the daytime. If you play a lot of video games or if you are planning on hooking your computer up to your television, LCD is your best bet.

Burn-in used to be an issue with older plasma displays, but it is a problem that has virtually been eliminated in more recent sets. Although a static image may remain on the screen temporarily, it should disappear shortly. Most modern plasmas also come with a screensaver option which allows you to 'clean' the pixels on your display.

If you want to read more about the differences between plasma and LCD, here are links to two excellent articles. The first, from one of my favourite technology websites, Digital Home Canada outlines five reasons to choose plasma or LCD. The second article from audio visual experts, Crutchfield Advisors, weighs the pros and cons of both TVs.

Prime Rate Drops...What Does It Mean To You?

Thu, 06 Mar 2008 05:57:01 GMT

Like most of us, I was very interested to hear that the Bank of Canada had dropped its prime rate by half a percent to 3.5%, with the suggestion of more cuts to come.

What has been the effect for the real estate buyer considering the common, five-year fixed rate mortgage? So far, not much. If you are a bit more of a gambler, and a variable rate customer, this week's cut automatically pushed your rate down. I have seen variable rates as low as 4.65% this week.

Meanwhile, the five-year fixed rate is hovering around 5.64%

So why haven't fixed rate mortgages followed and seen a significant drop? If you're looking for a detailed explanation, I'd give your mortgage broker a call. In the simplest terms (yeah, right), the global credit crisis, caused by the sub-prime disaster in the U.S. has made it more expensive for Canadian lenders to access funds. Canadian lenders are also attempting to limit their long-term risk by keeping fixed rates higher.

That one percent discount off the posted rate that borrowers almost always automatically received is becoming harder to get. In essence, banks are increasing the spread between what they pay for the funds and what they charge you to borrow it.

However, at the end of the day, the rate cut is good news for home buyers. If the pressure to stimulate the economy continues, the Bank of Canada will continue to cut rates. The BC Real Estate Associate suggests that will likely cause the five year rate to edge down also.

How To Handle A Multiple Offer Situation

Tue, 26 Feb 2008 06:42:57 GMT

In the Lower Mainland bidding wars are still quite common. Especially for hot new listings. It can be a stressful situation and as a buyer you need to be prepared.

I've been through several multiple offer situations in the last couple of weeks. Here is my advice on how proceed and make a competitve offer in a tough situation:

1. Do your homework. Know the values of recent solds in the area so you can make a confident decision on what you are willing to pay.

2. Be available for your realtor so you can plan your strategy. Your agent will usually let you know in advance, as the listing realtor will have informed them that you are in a competitive situation.

3. Take your best shot. As a general rule, you should make your best offer in a multiple offer situation. You usually only get one chance to present to the sellers. Unfortunately, even a full-priced offer isn't always a guarantee. As we know in Vancouver, it's not uncommon to see offers well above the asking price.

4. Cut the red tape. Try to clear away subject conditions before your offer. The 'cleaner' the offer, the more attractive it is to the seller.

Although it may not be convenient, it may be possible to conduct a home inspection before your offer is presented. This way, you can eliminate the need for that subject condition from your offer. Unfortunately, you may end up paying for an inspection on a property you don't purchase.

5. Sometimes your realtor may ask you to accompany them to the offer presentation and wait nearby. Should there be a counter-offer you'll be able to make quick decisions.

6. Ask about a back-up offer. If you are unsuccessful in your offer, the seller may consider putting you in a back-up position. Should the first offer collapse, your accepted back-up will come into effect. However, be careful, as placing yourself in a back-up situation will limit your ability to pursue other properties.

Good News For First Time Homebuyers

Thu, 21 Feb 2008 04:37:49 GMT

Home ownership just got a little more affordable for 'property virgins' as the BC government has raised the Fair Market Value theshold for an exemption to Property Puchase tax to $425,000 from $375,000.

In addition, a proportional exemption is available for first time buyers for properties with a fair market value of up to $450,000.

The amount of PPT payable by buyers who do not qualify for an exemption remains unchanged at 1% on the first $200,000 and 2% on the balance.

Before this significant change, the first-time buyer who wanted to purchase a $425,000 home would have needed to come up with another $6500 on closing!

This has been a long time coming,as prices in BC (especially the Lower Mainland) continue to rise and first time buyers struggled to put the cash together to make their first home purchase.

If you are a first-time buyer, you can qualify if;

The purchase price is less than $425,000 (full exemption). There is a sliding scale up to $450,000.

You have never owned a primary residence anywhere in the world.

You must be a Canadian citizen or a permanent resident for the past 12 months before your completion date.

You must live in the the home as your primary residence for a minimum of one year following completion.

For more details contact your realtor or mortgage specialist.

Home Inspections - What's Covered and What's Not

Sat, 09 Feb 2008 05:46:14 GMT

If you're buying property in Vancouver, it's likely that you will use the services of a home inspector to give you some peace of mind before you commit to one on the biggest purchases of your life. The goal of the home inspection is to identify any significant (expensive) problems that could change a potential purchaser's mind.

Buyers will often insert a "subject to a satisfactory home inspection" clause into the contract of purchase and sale in order to protect themselves.

Other times, a seller may want to do a home inspection before putting their home on the market. They can then make any necessary repairs that may prevent a quick sale for top dollar. If the property is older, it can also be helpful to make the inspection report available to potential buyers to show that the property is structurally and mechanically sound.

So...What actually is your home inspector looking for?

Bathrooms – Inspectors examine the condition of grout and tiles. They will check for leaks or drainage problems, or cracks in toilets, check CFGI outlet operation, fans, water pressure and water volume. They also may check for moisture in walls.

Plumbing – Check the pipes, drains, vents and hot water tank for its age and condition; check for leaks or drainage problems; water pressure.

Laundry Facilities – Check the drains, check vents. Again, not all inspectors check appliances. Be sure to ask.

Heating – Furnace, thermostat, ducting, filters.

Electrical System – Service size, grounding of all components, panel and breaker condition, code compliant.

Site Condition & Drainage – Does the property have a steep grade? Condition of retaining walls, drain tile functional; patio settling; sidewalk & driveway condition.

Exterior Surfaces – Siding, wall condition; mildew or dry rot, paint condition; doors and windows.

Decks, Porches, Stairs - -Safe, solid, railings to code, no settling or rot, cement cracking.

Roof, Gutters, Flashing, Chimney – General condition, clogging, remaining life.

Interior Walls, Ceilings, Floors – Cracks, leaks, staining, mildew, signs of settling, and of course, for moisture in walls.

Attic, Roof – Access, moisture or mildew, ventilation, rafter and insulation check, is there asbestos present?

Fireplaces – Flues, dampers, chimney liners, gas lines, safety, related dampness.

Ventilation, Condensation – Check crawlspace, bathrooms, attic, etc. for moisture, mould, mildew or dry rot.

Foundation, Basement – Cracks, settling, insulation, drainage problems, sump pump, insects.

It's quite the list, isn't it? No wonder the process can take upwards of three hours. Of course, the small extra expense can save a lot down the road.

There are a ton of home inspectors out there, but it's best to get a referral from a friend or family member. Your realtor can also refer you to a reputable and competent home inspector.

If you have questions, feel free to call or e-mail.

Take care,

Rob

Condos Are Big With Home Buyers

Sat, 09 Feb 2008 05:00:01 GMT

Their universal appeal is substantiated, with every market reporting increased momentum in condominium sales volume over 2006 levels. In fact, 80 per cent of markets surveyed reported double-digit gains in sales year-over-year, with 53 per cent reporting increases over 20 per cent. The greatest growth was experienced in Canada’s small to mid-sized markets.

The white picket fence, sprawling green lawn and tidy urban bungalow has become an unattainable ideal for many first-time buyers—especially in the West. By necessity, condominiums have become the only practical means to homeownership for a growing segment of the population. Today’s entry-level purchasers aspire to manageable mortgage payments, sunset city views, and the non-stop action and amenities of central core living, all packed into 600 to 800 sq. ft. The momentum of the market in recent decades has redefined the home buying process.

While price appreciation on freehold properties, in particular, was the primary factor in the upswing, the strong desire among baby boomers to lead an active, carefree lifestyle has also driven the concept to unprecedented popularity. The RE/MAX Condominium Report identified Greater Vancouver as the strongest market in the country – where close to 60 per cent of all residential sales now involve a condominium.

Deteriorating affordability levels in major Canadian centres have lead to the resurrection of the condominium lifestyle in recent years. Condominiums are clearly the answer to the skyrocketing cost of land and shelter that has all but eradicated the dream of homeownership for many first-time buyers.

Condominium values were also up from coast-to-coast in 2007, with all major markets reporting an increase in average price. Thirty-three per cent of cities surveyed reported double-digit price appreciation. The most dramatic hikes were seen in Western Canada’s red-hot housing markets.

At the top end of the market, condominium ownership has been equated with lifestyle. Throughout 2007, aging baby boomers fuelled demand for luxury condominium units. Upper-end activity was reported to be on the rise in all markets examined. The maintenance-free factor, the ability to travel and to enjoy the best the city has to offer—from restaurants to recreation—were citied in overall condominium appeal.

In years past, there seemed to be a ceiling in terms of what buyers were willing to pay for this type of product. Widespread acceptance has seen that philosophy tossed out the window. In the upper-end especially, buyers have demonstrated a willingness to set new benchmarks, and in some cases, are spending more than what a detached home might cost. Multiple offers, once unheard of, have become a reality in some centres.

New benchmarks for the most expensive apartment-style condominium units ever sold through MLS have been reported in several cities in 2007, including Vancouver ($18 million), Calgary ($3.7 million), Edmonton ($2.3 million), Winnipeg ($1.25 million), and Kitchener-Waterloo ($670,000).

Given solid demand through all price ranges, it comes as no surprise that investors have been very active in the majority of markets surveyed, hoping to snap up a piece of the pie while demand remains at peak levels. The impact of speculation, especially in Canada’s largest condominium markets, have yet to be determined, but concerns for the future are relevant. In downtown Vancouver, an estimated 50 per cent of sales activity is attributed to investors, whereas as much as 60-85 per cent of new condominiums sales in Toronto’s downtown core reportedly involved investors in 2007. This is a major factor that could influence prices in years to come.

For now, a number of market fundamentals point to increased growth in sales, prices and demand well into 2008. These include vibrant economies, Canada’s aging population, rising prices, and higher levels of immigration, to name a few.

Source: RE/MAX Condominium Report

RE/MAX Predicts Steady Growth in 2008

Sat, 09 Feb 2008 04:58:20 GMT

After posting extraordinary gains in 2007, housing market performance will moderate in most major Canadian centres in 2008, according to a RE/MAX report.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18 markets across the country. The report found that while economic prospects will continue to improve next year, few major markets are expected to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John, Halifax-Dartmouth, and St. John’s are all predicted to buck the trend in 2008, with appreciation ranging from one to seven per cent.

Greater Vancouver is also expected to rise 7 percent next year.

The average price is forecast to increase in 78 per cent of markets surveyed next year, with the lowest price increase expected in Edmonton and the highest in St. John’s.

Nationally, the number of homes sold is expected to break through the half-million threshold in 2007, climbing 13 per cent to an estimated 545,400 units, up from 483,770 units one year ago. Average price is projected to appreciate nine per cent to $303,000, up about $25,000 over 2006 levels. In 2008, home sales are expected to retreat to 500,000 units while Canadian housing values are forecast to continue their ascent, rising six per cent to $321,000.

Clearly, economic prosperity has translated into increased housing sales and upward pressure on prices across the board. The country’s economic engine fired on all cylinders throughout the year, despite dire conditions south of the border. As in 2007, inventory will be the major wildcard next year—the ultimate variable most expected to influence housing market conditions and performance. A return to tight market conditions could mean all bets are off as buyers are forced to compete, creating increased market pressure.

Major market frontrunners for price appreciation in 2008 include St. John’s (12 per cent), Regina and Kelowna – Central Okanagan (nine per cent), Hamilton-Burlington and Saint John (eight per cent) and Greater Vancouver (seven per cent). Leading the country in sales growth next year will be Kitchener-Waterloo (seven per cent), followed by Hamilton-Burlington, London-St. Thomas, Sudbury and Halifax-Dartmouth, each forecasting a five per cent gain.

Higher mortgage rates and increased inventory levels failed to materialize in most major centres, making 2007 a record year for real estate activity in Canada. By year-end, housing values across the country are expected to shatter existing records. Serious double-digit increases in average price are forecasted for Saskatoon (49), Edmonton (31.5), Regina (21), Calgary (20), Sudbury (20), Kelowna (19.5) Saint John (17), St. John’s (12), and Greater Vancouver (10).

Western markets were first out of the gate in 2007, but those in the East followed suit. By year-end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward. A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year.

Source: RE/MAX Housing Market 2008 Report