Winter months don't typically see much action across the country. During the pandemic we saw a huge spike in transactions during the winter months and very quickly we adapted to seeing this type of volume. Late last year we saw big interest rate hikes and that has definetely put a damper on the market. Buyer's purchasing power was slashed significantly seemingly overnight. As you will see in the direct quotes from different Real Estate Boards across the country, everyone seems to feel the lower amount of listings but lets remember that we are comparing to last year's numbers which were still distorted after the pandemic. 

I have a feeling that the spring market will return to typical sales volumes with lower price ranges. Prices have been coming down in some places more than others but it's impossible to ignore what the higher interest rates have done to the markets across the country.  

I'm really trying not to get too political in my posts because complaining won't make any difference, especially that most people don't care about politics. Most people watch the news and the superbowl as their entertainment. Unfortunately, both are fiction. 

Here are the January market stats, enjoy: 

Quadra Island saw 2 new listings, one sold, one expired and one withdrawn listing. 

Cortes Island had one transaction, pending (sold). 

NANAIMO, BC – Last month, 165 single-family homes sold in the Vancouver Island Real Estate Board (VIREB) area, a 24 per cent decrease from one year ago and a drop of 18 per cent from December. Sales of condo apartments in January 2023 came in at 42, declining by 52 per cent year over year and increasing by 20 per cent from December

“Our statistics indicate that we’re off to a somewhat slow start, but our January sales numbers don’t reflect the activity REALTORS® are seeing on the street,” says Kelly O’Dywer, 2023 Chair. “Overall, it’s actually a great time to buy a home.”

In Campbell River, the benchmark price of a single-family home was $647,600 in January, down five per cent from the previous year. The Comox Valley’s year-over-year benchmark price dropped by four per cent to $784,700. In the Cowichan Valley, the benchmark price was $745,700, a four per cent drop from January 2022. Nanaimo’s year-over-year benchmark dropped by seven per cent to $755,300, while the Parksville-Qualicum area saw its benchmark price drop by six per cent to $856,100. The cost of a benchmark single-family home in Port Alberni was $518,300, down eight per cent from the previous year. For the North Island, the benchmark price of a single-family home rose by two per cent to $428,500.

Victoria  A total of 278 properties sold in the Victoria Real Estate Board region this January, 41.4 per cent fewer than the 474 properties sold in January 2022 and a 13.1 per cent decrease from December 2022. Sales of condominiums were down 46.3 per cent from January 2022 with 101 units sold. Sales of single family homes decreased 33 per cent from January 2022 with 120 sold.

There were 1,739 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of January 2023, an increase of 3 per cent compared to the previous month of December and a 133.7 per cent increase from the 744 active listings for sale at the end of January 2022.

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in January 2022 was $1,296,600. The benchmark value for the same home in January 2023 decreased by 3.5 per cent to $1,251,100, down from December's value of $1,283,600. The MLS® HPI benchmark value for a condominium in the Victoria Core area in January 2022 was $561,300, while the benchmark value for the same condominium in January 2023 increased by 3 per cent to $578,300, up from the December value of $574,300.

VANCOUVER, BC – February 2, 2023 – Inventory remains low in Metro Vancouver* while home sales dipped well below monthly historical averages in January. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,022 in January 2023, a 55.3 per cent decrease from the 2,285 sales recorded in January 2022, and a 21.1 per cent decrease from the 1,295 homes sold in December 2022. Last month’s sales were 42.9 per cent below the 10-year January sales average.

The benchmark price for a detached home is $1,801,300. This represents a 9.1 per cent decrease from January 2022

The benchmark price of an apartment home is $720,700. This represents a 1.1 per cent decrease from January 2022

The benchmark price of an attached home is $1,020,400. This represents a three per cent decrease from January 2022

City of Calgary, Feb. 1, 2023 – The level of new listings in January fell to the lowest levels seen since the late 90s. While new listings fell in nearly every price range, the pace of decline was higher for lower-priced properties.

Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month breaking the seven consecutive month slide. As of January, the benchmark price reached $520,900, 5 per cent higher than last January, but still well below the May 2022 high of $546,000.

Detached- Overall, the benchmark price reached $622,800 in January, slightly higher than levels reported in December, but still below the monthly high achieved in May 2022.

Semi detached- In January, most districts reported a monthly benchmark price growth. However, prices did trend down in the higherpriced City Centre district causing Calgary’s semidetached benchmark prices to ease slightly over levels seen in December 2022. Despite the monthly adjustment overall, prices remained nearly six per cent higher than levels reported in January 2022.

Row homes- With a benchmark price of $361,400, levels are still over 12 per cent higher than last January, and only slightly lower than the $363,700 monthly high achieved in June 2022.

Overall, apartment condominium prices in the city reached $277,600, one per cent higher than last month and a year-over-year gain of nearly 10 per cent, narrowing the spread from the record high prices set in 2014.

TORONTO, ONTARIO, February 3, 2023 – As we moved from 2022 into 2023, the Greater Toronto Area (GTA) housing market unfolded as expected. The number of January sales and the overall average selling price were similar to December 2022. On a year-over-year basis, both sales and prices were down markedly, continuing to highlight the impact of higher borrowing costs on affordability over the last year.

Average price by home type in area 416:

Detached: $1,486,124
Semi detached: $1,150,506
Townhouse: $981,187
Condo: $711,171

ENERGY EFFICIENT, GREAT LOCATION.
This little jewel of a house is situated on a fully fenced 1.36 acre gently sloped, partially forested lot with trails throughout. It offers few sunny gardens with fruit and nut trees. Centrally located with only a 10 min. walk to the ferry and shops.
This well designed energy efficient 2 bedroom 1 bathroom home features a woodstove, energy efficient heaters, rain water collection cistern, screened porch and an attached garage. Lot of space for farm animals and more gardens. Must be seen to be appreciated!

Full details HERE

February in Real Estate

Another month went by and we are seeing more listings coming on the market every day. How was February you may ask? Well, here’s a brief summary of each important market. The reason why I am including only these markets is because based on what algorithms show, most people that come to Campbell River and surrounding area, are from these cities across Canada.

Campbell River

February brought additional inventory to the table in the Vancouver Island Real Estate Board (VIREB) area. However, listings are still far below where they need to be to satisfy buyer demand.

“British Columbia is in the midst of a housing crisis,” says Erica Kavanaugh, 2022 VIREB President. “Organized real estate has data-driven insights into potential solutions, which is why BCREA just released a white paper on market conditions in the province.”

In a Better Way Home: Strengthening Consumer Protection in Real Estate, BCREA presents over 30 recommendations to the provincial government on how it can protect consumers today and provide affordable housing in the future. Using extensive data and expert analysis, BCREA focuses on real-life solutions in the paper instead of ineffective and temporary demand-side fixes, adds Kavanaugh. (To read or download the white paper, visit bcrea.bc.ca/whitepaper.)

Benchmark Price for a detached home in Campbell River in February reached: $699,900.

Benchmark Price for an apartment: $333,600.

Benchmark Price for a Townhouse: $514,200. 

Quadra Island
Quadra Island in February had NO new listings, 4 sold (pending) and 1 Sold.  

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Cortes Island

February on Cortes Island had 1 listing “pending” and one “sold” but NO new listings.  

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Calgary

Thanks to a surge in new listings, sales activity reached a record high for the month of February with 3,305 sales. The rise in new listings caused adjusted inventories to rise above last months’ levels. However, with only one month of supply, the market continues to favour the seller.

The benchmark price of detached homes in the city of Calgary hit $596,400; semi-detached: $461,400; row home: $321,100; apartments: $257,500.

Vancouver

The Metro Vancouver* housing market saw steady home sales activity, modest increases in home listings and continued upward trends in pricing in February.

“As we prepare to enter what’s traditionally the busiest season of the year, the Metro Vancouver housing market is seeing more historically typical home sale activity and a modest uptick in home listing activity compared to last year,” Taylor Biggar, REBGV Chair said. 

The benchmark price for a detached home is $2.044,800. This represents a 25 per cent increase from February 2021.

The benchmark price of an apartment home is $807,900. This represents a 15.9 per cent increase from February 2021.

The benchmark price of an attached home is $1,090,000. This represents a 27.2 per cent increase from February 2021. 

Toronto

February home sales were down compared to the all-time record in 2021, but represented the second-best result for the month of February in history. New listings dropped, but by a marginally lesser annual rate than sales, pointing to a modest move to a slightly more balanced market. Competition between buyers, however, remained tight enough to support double-digit price growth year-over-year.

“Demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm. Many households sped up their home purchase and entered into a transaction in 2021, which is one reason the number of sales were forecasted to be lower this year and a trending towards higher borrowing cost will have a moderating effect on home sales. Substantial immigration levels and a continued lack of supply, however, will have a countering effect to increasing mortgage costs,” said TRREB President Kevin Crigger.

The average price for a detached home in area (416) is $2,073,989.

The average price of a semi-detached home (416) is $1,499,489.

The average price of a townhouse (416) is $1,131,809.

The average price of a condo (416) is $822,090 as reported by the Toronto Regional Real Estate Board (TREBB).

If you keep tracking these numbers like I do, you must have noticed that prices keep going up significantly all across the country. Even when you look at a monthly change a lot of the times it’s substantially higher. With immigration policy accepting over 400,000 new immigrants this year, and now with Ukraine conflict I’m sure that number will at least double. We can only speculate that this will drive prices even higher, especially the lower priced units.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Spring Market.

Spring Market is just around the corner. Historically the busiest time in Real Estate starts in April and goes on until about August. Usually the busiest months are April, May and June but last couple years March was also very busy. 

As usual a lot of people considering a move and thinking about selling are calling their realtors with questions. I would like to address some of the concerns here.

2022 has just started and so far, has been very turbulent already. Rising inflation, potential of rising interest rates, illegal government overreach, covid mandates, high immigration targets and now conflict in Ukraine, to name a few.

Making rational decisions based on facts can get hard because it seems there are many variables that can change weekly.

Why is spring market good for buyers and sellers?

Simply put, curb appeal! Hopefully when spring hits, all snow is melted and spring flowers make your yards look beautiful. The trees are waking up with color and people feel more energized and wanting to move. 

Since the pandemic has started more home buyers decided to reconfigure their lives, priorities changed and also the demand for larger homes with multi purpose rooms have increased. A lot of buyers have moved out of the highly densely populated cities into the suburbs or in many cases even changed the provinces in search for more affordable prices. We are still not clear if the exodus from big cities will continue or once offices open up, people will head back to cities, or if they will continue to work remotely.   

Rising inflation will be higher than we have seen in many years. In order for the central banks to combat the rising inflation they need to raise the interest rates.

Banks saw this trend coming, that’s why they introduced the “mortgage stress test”. The extra 2% buffer needed to qualify for a mortgage gives the bank confidence that borrowers will be able to make payments once the mortgage rates go up.
How does that translate in real life?

Based on a quick Google search, the average Canadian has a $372,000 mortgage. A 5 year closed mortgage of 4.79% will cost roughly $2120/ monthly.

If the mortgage rate goes up by 2% the monthly payments will be $2,560/ monthly

$440 increase in monthly payments.

Today we are facing record low inventory but the demand is still very high.

So, is now a good time to sell?

Every person is in a different place in their lives. Don’t base your decision on fear.  

Generally, best time to sell is during a seller’s market. We are in the strongest seller’s market in a long time. This is by far the best time to sell, based on historical data.

If you are thinking of buying it’s probably not the optimal time but it depends on your circumstance. If you can afford to wait until the market changes to a buyer’s market, then wait. If you must buy now, don’t expect to find any “deals”.

It is important to listen to a few opinions, ideas before making up our minds. The most important aspect is to listen to ourselves, to the feeling we have. Sometimes it’s not all about the money or timing.

My personal litmus test when making big decisions is to ask myself: is it going to hurt someone, does it come from respect, kindness and compassion? Whatever decision I make is a decision I’m willing to live with.

Over the last couple of years, we have followed so called “leaders” telling us how we should live but I really hope we have reached the end of this. It’s time to take charge of our lives and finally return back to kindness and community.  

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

 The first market statistics of the year were published late therefore I’m including them in this article instead of the last one. I can’t believe we are mid way through January already!

I’m assuming by now you have all received your BC Assessment and you’re excited at the fact that your home is worth more than 30% and in some cases even 50% more! Your property taxes will not go up by 50%, don’t worry. They will certainly go up though. 

Campbell River

According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland, with one of the worst being Vancouver Island. Even if sales were to return to long-run average levels, total listings would need to nearly double to achieve a balanced market, and the road to doubling those listings lies in building more homes.

“Expanding inventory is the key to affordability, and it requires a coordinated effort from all levels of government and adequate incentives for municipalities to take action,” says Mackay. “The public also has a role to play by being more open to gentle densification in some areas.”

Benchmark Price for a detached home in Campbell River in December reached: $689,000.

Benchmark Price for an apartment: $335,000.

Benchmark Price for a Townhouse: $505,300.

Average sale price in 2021, in Campbell River was $692,906 compared to $537,494 in 2020.

Quadra Island
Quadra Island saw a very busy December with 3 listings sold (pending), 2 sold, 1 cancelled and 1 expired.

Overall in 2021 Quadra Island had 42 listings in total that sold, 5 were cancelled, and 3 expired.

If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca 

Cortes Island

Cortes Island also had a relatively busy year with 14 listings sold, 2 cancelled, and 4 expired.

 If you would like more details including “sold prices” go to my website and sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Calgary

“2021 Record year for home sales”. Thanks to exceptionally high sales in December, 2021 was a record year for home sales. Calgary sales reached 27,686 units this year, nearly 72 per cent higher than last year and over 44 per cent higher than the 10-year average. “Concerns over inflation and rising lending rates likely created more urgency with buyers over the past few months. However, as is the case in many other cities, the supply has not kept pace with the demand causing strong price growth,” said CREB® Chief Economist Ann-Marie Lurie.

The benchmark price of detached homes in the city of Calgary hit $547,300; semi-detached: $432,400; row home: $300,100; apartments $252,000.

Vancouver

Metro Vancouver home sales reached an all-time high in 2021 as housing needs remained a top priority for residents in the second year of the COVID-19 pandemic.

“We begin 2022 with just over 5,000 homes for sale across the region. This is the lowest level we’ve seen in more than 30 years,” Keith Stewart, REBGV economist said. “With demand at record levels, residents shouldn’t expect home price growth to relent until there’s a more adequate supply of housing available to purchase.”

Looking across Metro Vancouver, Maple Ridge saw the largest increase in benchmark prices at 34.7 per cent, followed by Pitt Meadows (29.8 per cent) and Whistler (27.8 per cent).

The benchmark price for a detached home is $1,910,200. This represents a 22 per cent increase from December 2020.

The benchmark price of an apartment home is $761,800. This represents a 12.8 per cent increase from December 2020.

The benchmark price of an attached home is $1,004,900. This represents a 22 per cent increase from December 2020.

Toronto

In December, GTA REALTORS® reported 6,031 sales – a strong result historically, but still down by more than 1,000 transactions (-15.7 per cent) compared to the record of 7,154 set in December 2020. Over the same period, new listings were down by 11.9 per cent to 5,174. The MLS® Home Price Index Composite benchmark was up by 31.1 per cent year-over-year in December. The average selling price was up by 24.2 per cent annually to $1,157,849.

The average price for a detached home in area (416) is $1,698,178.

The average price of a semi-detached home (416) is 1,342,429.

The average price of a townhouse (416) is $997,208.

The average price of a condo (416) is $730,792 as reported by the Toronto Regional Real Estate Board (TREBB).

Prediction for 2022- more of the same. Looks like the biggest problem we currently have is a huge demand for housing but supply of new housing is just not meeting the demand. Being a buyer in this market is very hard, especially if you don't have a $1million dollars for a downpayment. 

In my opinion, the most important drivers of housing crisis are the artificial low interest rates and very high numbers of newcomers to Canada. According to Sean Fraser (Minister of Immigration), Canada welcomed 401,000 new immigrants in 2021.This is the most newcomers in a year in Canadian history since 1913. Federal government is planning to bring 411,000 immigrants in 2022. Just to be very clear- I'm not blaming immigrants for this crisis. This is just a bad policy by the feds. 

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

First and foremost, I would like to Wish you an abundant, joyous and prosperous 2022!

As of this writing, the real estate boards haven’t released the monthly stats for the month of December yet, so I’ll have to write on a different topic as I have originally planned.

By the time you read this article in the Discovery Islander you have probably already received your BC Assessment report, so I’d like to give you some information about what this report is and how it’s compiled.  

BC Assessment is a Crown Corporation created as an independent impartial party to keep consistency and order. The corporation employs 650 full-time staff positions in 17 offices throughout the province. B.C. Assessment's annual budget is just over $77 million.

The value is determined based on property type and which method was used. There are several types of methods but the most common method for residential properties is the “Sales comparison method”. This method determines market value of properties based on most current data of sold units that are comparable in any given area. Land assessments are based on its most reasonable and optimal use which is both physically possible and financially feasible.

For example, vacant downtown land may be valued at its development potential rather than existing use. BC Assessment will consider many factors when determining highest and best use; including zoning, official community plans and recent development trends.

The assessed value of your home is broken down into 2 categories: Land, and Buildings. The report also includes comparable information on your previous year’s value.

Please note that the value assigned to your property is already outdated when you get it in your mail, because it’s based on data of sold units provided by the real estate boards as of July of last year. There are 5 more months of active market that are not included in that report.
 

How relevant is Assessed value during a real estate transaction? This is the second most common question I hear on regular basis from my clients. The answer is as usual: “It depends”.

As a Realtor my job as a listing agent is to sell it to a potential buyer, to their agent and most importantly to the bank that will provide financing to the buyer.

In a sellers market like we have seen over the last few years, the market can seem all over the place with prices. The bottom line is that the market will dictate what a property will sell for, provided that the bank is in agreement. For example, A buyer can be very excited about a property they’d like to purchase. They participate in a multiple offer situation where they have outbid all competing offers. What happens now? Depending if the buyer is a cash buyer or if financing is required, the bank will consider the BC assessment report as a factor in granting financing or in some cases, not.

If the offer is viewed as unreasonably high and not in line with how the market has behaved in the area, the banks can refuse to finance the mortgage for the buyers or assign conditions before financing can be finalized.

The truth is that the BC assessment report is used mostly for tax purposes. The market value of a property is determined by the economic forces of demand and supply. Our biggest issue in the real estate market is very low inventory and a very high demand for properties. There simply aren’t enough homes for sale to meet the demand. That’s what we are being told by the governments and it seems consistent with what we are seeing in the market place.

Is BC Assessment important in the purchase or sale of your home? Yes. It’s considered to determine what the property taxes will be for the current year, as well as qualifying for a mortgage.

In a strong sellers market, it is very common for properties to sell well above BC assessment values. When the market changes into a buyers market, and it will change one day, buyers and lenders alike will be paying much closer attention to what the BC Assessment numbers are.

The most accurate appraisal of your property can be obtained from a property appraisal company or your REALTOR®

If you haven't received your statement yet but you're curious, here's a link https://www.bcassessment.ca/

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Every year around Christmas time I get all nostalgic as I remember that one special Christmas, and I would like to share this story with you.   

Most of you can guess based on my name that I must have come to Canada from elsewhere. I came to Canada when I was just a teenager. My parents decided to leave our country of origin just before the Iron Curtain came down. We left a country that was at a verge of collapse and we feared the unknown.

We were different type of immigrants. Not like today’s immigration with money to buy exotic cars and mega houses. We came with virtually the clothes on our backs and a suitcase each, containing mostly books.

We lived in a Co-op in a Vancouver suburb for the first few years. My dad was working with another Eastern European doing odd construction jobs, just to pay the bills.
The first couple years in Canada were very hard. We didn’t know how anything worked, we didn’t know the language at all and didn’t know where to get help. Prior to coming to Canada we spent 3 years in refugee camps in Germany, where things were decided for us. Neo Nazi attacks on our refugee camps were common and constant fear of the unknown motivated us to leave Europe. We were fortunate that our application through the red cross was accepted and we could come to the land of opportunities- Canada.

As a new immigrant, without any English language, my dad had to resign to taking any job he could get. He ended up working with some shady guys that wouldn’t pay him for months at a time. This one specific guy decided not to pay him for about 3-4 months of salary and fired him just before Christmas. My dad didn’t know where to go to deal with this, whom to call, how to feed his family.

Let me tell you, being a new immigrant as a teenager wasn’t all rosy.

Couple weeks, maybe days before Christmas in 1992 we had literally cancelled Christmas. I don’t know if any of you have ever experienced real hunger, real lack of food for days at a time, but that was our situation just before Christmas. My parents must have felt terrible for not being able to prepare our traditional Christian dinner, not to mention presents.   

It was a Saturday morning, the doorbell rang. Since I am the oldest out of the kids, it was my job to go open the door. I opened the door and to my amazement saw several large boxes full of food!!! This was truly a Christmas miracle! There was nobody there, no note, just lots of food. Most people won’t relate to this story, but every single time I share this story my eyes swell up with tears. This incident alone made a long term impact on who I am as a person. To this day we still don’t know who left all these boxes in front of our place. This was a Christmas miracle that I associated with the spirit of Canada.

I love Canada because of the people here; Because of these random acts of kindness! The compassion, the deliberate and conscious acceptance of our differences. Our family shares this story every Christmas dinner we have this time of the year, and these are the stories we need to share with our communities.  

As a new immigrant I have experienced first hand the kindness from regular people, from my teachers, neighbours and everyone I met. It made me more sensitive to certain aspects of our society.   

I love Canada because it allows people to be who they are. There’s no discrimination against your beliefs, your religion, or your ethnicity, everyone can travel as they please, and these rights are guaranteed in the Canadian Charter of Rights and Freedoms.

The Charter of Rights and Freedoms is the main reason why our family and many other immigrant families have chosen to come to this great country!

Immigrants feel safe here.

As a proud Canadian my heart breaks when I see how politicians have divided our country recently. Multicultural, and multi faceted, with varying degrees of opinions is a definition of our beloved Canada.

Yes, this country was born on injustice towards first nations and it’s important to learn from history and never to repeat it. Our laws are here to protect us and unite us as people with common values.

I’m not writing any of this to start any debates towards one side or the other. I’m not a conspiracy theorist, or an anti-vaxxer and I don’t feel I need to defend my views… because I am Canadian.

All I’m doing is using critical thinking and stating the obvious, that our country has drastically changed over the last couple years and I find it disturbing that communities across the country are very divided. Even some of our families are divided as well, including my own family.  

This Christmas my wish for Canada and my immediate community- Quadra Island is to come together, in kindness, compassion and mutual respect. The Canada I know, doesn’t discriminate against anybody.

This country is the best country in the world and we should stand on guard for thee. Merry Christmas!

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

November in Real Estate

I can’t believe that it’s already December! A good reminder was the dump of snow we had last night, power outages and cancellation of schools; wow what a day! I almost missed the deadline for submitting this article but I’m very grateful that the hard working people at BC Hydro brought back the power just in time.

It’s statistics time, just like every month, this time for the month of November.

If you have any suggestions for any future articles, please email, text or call me. Your opinion matters to me.

Campbell River

Active listings in the Vancouver Island Real Estate Board (VIREB) area continue to drop, with demand far outpacing supply. Inventory has hit consecutive historical lows for several months running.
According to the British Columbia Real Estate Association, the supply situation is especially critical in markets outside the Lower Mainland. One of the worst inventory situations is on Vancouver Island. Even if sales were to return to long-run average levels, total listings would need to nearly double to achieve a balanced market, and the road to doubling those listings lies in building more homes.

In Campbell River, the benchmark price of a single-family home hit $683,500 in November, up by 30 per cent from the previous year. Townhouse: $485,900.

Quadra Island
Quadra Island saw a busy November with 3 new listings, 3 sold (pending) and one expired.

If you would like more details including “sold prices” go to my website and sign up for free to

members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island saw only 1 new listing in November, a beautiful almost 10 acre property.

If you would like more details including “sold prices” go to my website and sign up for free to members only area that will provide that information www.quadrarealty.ca

Calgary

Driven by growth in demand for all property types, there were 2,110 sales in November, just shy of the record for the month set in 2005. “Lending rates are expected to increase next year, which has created a sense of urgency among purchasers who want to get into the housing market before rates rise,” said CREB® Chief Economist Ann-Marie Lurie. “At the same time, supply levels have struggled to keep pace, causing tight conditions and additional price gains.”

 In November, the detached price reached $542,600 up over 10.6 per cent higher than levels reported last October.

The semi-detached benchmark price rose to $429,800 this month, 8.7% Y/Y.

Row Price: $299,100, Apartment $251,700.

Vancouver

As we near the end of 2021, home buyer demand remains well in excess of long-term averages and the supply of homes for sale continues to decline across Metro Vancouver’s housing market.

“The imbalance between supply and demand, coupled with some buyers wanting to use rate holds on lower rate fixed-term mortgages, is keeping upward pressure on home prices in this traditionally quieter time of year for the market,” Stewart said.

The benchmark price for a detached home is $1,870,000. This represents a 20.8 per cent increase from November 2020.

The benchmark price of an apartment home is $752,800. This represents an 11.4 per cent increase from November 2020.

The benchmark price of an attached home is $990,300. This represents a 20.2 per cent increase from November 2020.

Toronto

Home sales reached a new record for the month of November and the average selling price also reached a new all-time high. New listings were down substantially compared to last year for all market segments – further highlighting the inherent supply issue across all home types in the Greater Toronto Area (GTA).

“Governments at all levels must take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today, and to work towards satisfying growing demand in the future. The GTA remains the primary destination for new immigrants, and is at the centre of the Canadian economy”, said TRREB President Kevin Crigger.

The average price for a detached home in area (416) is $1,807,983.

The average price of a semi-detached home (416) is 1,431,988.

The average price of a townhouse (416) is $981,759.

The average price of a condo (416) is $745,951, as reported by the Toronto Regional Real Estate Board (TREBB).

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

In the beginning of November, the BC NDP government announced their plans to introduce a “cooling off period” in real estate transactions pertaining to resale market starting in spring 2022. Just to clarify, “resale” market is homes that have been previously owned as opposed to pre-sales or pre-construction which are brand new homes or just a “promise” of a home in a few years.  

The title of the news release is: “BC working to strengthen protection for home buyers”. As the title suggests, the legislation is aiming to protect home buyers from risk taken during a home buying process. It’s specifically aimed at risk assumed during multiple offer situations when a buyer faces limited time to make a decision if they will purchase a home or not. It often makes the buyer feel like they were rushed or pushed into the purchase without enough time allowed for the due diligence process.

Every transaction in real estate is driven by emotions and when you are in a very strong sellers market it can be very frustrating to be a buyer. Some buyers may feel the market is not fair towards them because a lot of their offers get rejected.

When your offer finally gets accepted, some buyers may feel buyer remorse. The proposed legislation would allow the buyer to simply walk away from the deal as it would give the buyer 7 days to rescind their offer.

 In theory this seems like a good idea but in practice this may be much more complicated. I would like to explain some of the issues this legislation may cause.

Under the current model, once the offer is accepted and deposit received, all parties are bound to the contract.

The hot sellers market we’ve been having is pushing a lot of desperate buyers to write subject free offers in order to secure a property. This can be seen as a risky move because it leaves very little time for due diligence, financing and inspection.

From the seller’s perspective, a subject free offer is seen as a guaranteed sale. When receiving multiple offers the seller needs to determine who is a serious buyer and who is not. 

The unintended consequences by this legislation could be potentially causing the following issues:

 1.     Buyers may end up writing offers much higher than the list price just to get an accepted offer. Then use the 7 day cool-off period to get financing and if that fails they could decide to walk away from the deal.

 
2.     Buyers may decide to write offers on more than one property at a time knowing they will be able to get out of any transaction. Frustrated buyers may decide to write on 5 different properties for example in the hopes of getting one accepted. What will happen when all 5 get accepted? The buyer will have to walk away from 4 and leaving the sellers with collapsed deals.

 
3.     Serious buyers will have a harder time differentiating their offers. Often sellers accept an offer that may not have the highest price but since it has no subjects it’s more appealing because it’s viewed as a guaranteed sale. With this legislation every offer could be a subject free offer and it will be much more difficult for a seller to pick an offer that will actually follow through with the purchase.

 
4.     In order for buyers to make their offer more appealing, some may decide to include more personal information. Some buyers do this already and disclose information such as bank statements, T4 slips, preapproval letters from banks, personalized letters with photos; all that just to make their offer stand out from the others. I see this as a potential threat of identity theft!

 
5.     This legislation will create more uncertainty for sellers. Knowing that even after price negotiations, inspection and all due diligence the buyer can still walk away, it will be a big problem if the seller needs to make another purchase.  

For example: The home you’re selling gets 2 offers. You accepted the subject free offer because the buyers seemed to be more serious. Now you are ready to write offers on your own purchase. Your offer on the new home gets accepted. Congratulations! Oh, not so fast! The buyer on your home just rescinded the offer they wrote on your home. Now your listing is back on the market and hopefully you have a backup offer. Let’s say the backup offer after a week also falls apart because the second couple decided to write on more properties and your home was not their first choice!

You might end up owning 2 homes for some period of time. This means you’ll need bridge financing. Extra stress, extra costs, extra headaches.

In my humble opinion this legislation will not protect buyers but will cause higher prices and more frustrations for buyers. I hope the government will change their stance on this.  

Contrary to the popular belief; when you have a competent agent that will guide you through every step, most of the time there’s plenty of time to do all of the due diligence you need, BEFORE you write an offer.

Ask me how.

***************************************************************

Here are some interesting numbers for you to digest:

According to Statscan website Canada welcomed 184,624 immigrants in 2020, down by almost half from 2019 and the lowest in any year since 1998. The pre-pandemic target for immigration set by Immigration, Refugees, and Citizenship Canada was 341,000.

According to a 2020 survey conducted by Canadian Real Estate Association, 66% of international buyers in were recent immigrants or temporary visa holders. If 66% of all immigrants bought real estate, this translates to at least over 120,000 units.

According to a May report from Scotiabank, Canada has the lowest number of housing units per 1,000 residents than any G7 country, and "the number of housing units per 1,000 Canadians has been falling since 2016 owing to the sharp rise in population growth." Sept 9, 2021

The standalone monthly SAAR of housing starts for all areas in Canada was 282,070 units in June, a decrease of 1.5% from 286,296 units in May. The SAAR of urban starts decreased by 1.8% in June to 251,190 units.

Canada Has Over 1.3 Million Vacant Homes, About 6 Years Of Supply

Canada has one of the highest numbers of vacant homes in the world. The OECD’s latest data shows 1.34 million homes were vacant, or about 8.7% of the country’s 15.41 million homes in total. That works out to nearly 1 in 12 homes, or 6 years of housing supply at the average construction rate from 2016 to 2019. Canada has the fifth most vacant homes of the group of advanced economies.  

I don’t know about you, but I’m not a big fan of any government that treats their citizens like kids. Being a buyer in a market that just simply doesn’t have enough units for sale is very frustrating to say the least. I don’t think changing rules of how real estate is purchased or sold is going to make any difference. I think leaving the market to be free is always the best choice. Immigration numbers are putting a lot of strain on the housing market and this is not sustainable. No, I’m not blaming immigration on this crisis, I’m blaming the government for poor planning.

I propose putting a freeze on immigration for a few years to let the market catch up with the demand.

Choosing a good realtor is like choosing what to buy on Amazon. Way too many choices! How do you choose an amazon purchase? Look at reviews…. Realtors also have reviews online.

Here are mine.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

The monthly statistics for the month of October just came out and I’d like to share some quotes from them with my favourite Discovery Islander readers.

I understand some people don’t like how these reports are written, based on feedback I have received, because it’s dry facts and numbers. I think there’s some room for that kind of information here because numbers typically don’t lie. Quite honestly I’m a little bored of them myself because we are being told for years now that inventory is historically low and the supply needs to come up. It seems like this is an issue all across the country, not just in our province.

Here are some quotes from the reports published by the real estate boards:

Campbell River

The predominant theme running through the housing market in the Vancouver Island Real Estate Board (VIREB) area is one of “different month, same issues.”

Buyers continue to face frustrating hurdles caused by historically low inventory, with little relief in sight. Active listings of single-family homes were 46 per cent lower last month than in October 2020 and dropped by 18 per cent from September- as per VIREB Report.

In Campbell River, the benchmark price of a single-family home hit $663,000 in October, up by 29 per cent from the previous year.

Quadra Island
Quadra Island saw 1 listing sold (pending completion) and 2 new listings.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island also saw only 1 listing sold (pending completion) in October.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Calgary

Calgary Real Estate Board recorded 2,186 sales in October, a record high for the month and over 35 per cent higher than longer-term averages. Year-to-date sales are on pace to hit new record highs and are currently 61 per cent higher than average activity recorded over the past five years and 42 per cent higher than 10-year averages.

“Moving into the fourth quarter, the pace of housing demand continues to exceed expectations in the city,” said CREB® chief economist Ann-Marie Lurie. 

Thanks to gains in most districts, detached home sales improved by 17 per cent compared to last year. The strongest sales growth this month occurred in the North East and East districts, which are the most affordable districts in the city.

 In October, the detached price reached $540,900, up nearly one per cent compared with last month and over 10 per cent higher than levels reported last October.

The semi-detached benchmark price rose to $427,800 this month, nearly nine per cent higher than last year’s levels.

Vancouver

Home sale activity in Metro Vancouver* remained above historical averages in October while the overall supply of homes for sale dipped to levels not seen in three years. “Home sale activity continues to outpace what’s typical for this time of year and the pool of homes available for sale is in decline. This dynamic between supply and demand is causing home prices to continue to edge up across the region,” Keith Stewart, REBGV economist said.

The benchmark price for a detached home is $ $1,850,500. This represents a 20.5 per cent increase from October 2020.

The benchmark price of an apartment home is $746,400. This represents a 9.5 per cent increase from October 2020.

The benchmark price of an attached home is $975,000. This represents an 18.5 per cent increase from October 2020.

Toronto

Home sales in the Greater Toronto Area (GTA) reached the second-highest level on record for the month of October. However, the inventory of homes for sale did not keep up with demand. The number of new listings was down by approximately one-third compared to October 2020. Market conditions tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double digits, including for the resurgent condominium apartment segment.

The average price for a detached home in area (416) is $1,784,979.

The average price of a semi-detached home (416) is $1,322,229.

The average price of a townhouse (416) is $1,025,257.

The average price of a condo (416) is $739,647, as reported by the Toronto Regional Real Estate Board (TREBB)

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

September in Real Estate

The monthly statistics report just came out for the month of September and it’s been my ritual for a full year now to read all the reports and share a summary with the Discovery Islander readers. When I write these summaries I don’t use my opinions or my own spin on things, I directly quote snippets from the reports, so please don’t shoot the messenger.

I’m re-evaluating if my column is seen as valuable information for readers and am curious if people are actually finding it helpful at all.

I would greatly appreciate to receive some feedback. Please text me at 604-787-4594 or call me at home 250-285-2141. All feedback is greatly appreciated and confidential.

Campbell River
Vancouver Island Real Estate Board (VIREB) reported for the month of September:

“The housing market in the Vancouver Island Real Estate Board (VIREB) area finished summer the way it began, with historically low inventory and rising prices. Active listings of single-family homes were 47 per cent lower last month than in September 2020, while VIREB’s inventory of condo apartments and row/townhouses dropped by 57 per cent and 48 per cent, respectively, from one year ago.

In Campbell River, the benchmark price of a single-family home hit $653,700 in September, up by 29 per cent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by 31 per cent to $771,300. The Cowichan Valley reported a benchmark price of $755,000, an increase of 34 per cent from September 2020. Nanaimo’s benchmark price rose by 28 per cent, hitting $745,400, while the Parksville-Qualicum area saw its benchmark price increase by 33 per cent to $869,000. The cost of a benchmark single-family home in Port Alberni reached $494,500, a 40 per cent year-over-year increase. The benchmark price for the North Island rose by 49 per cent, hitting $404,100 in September.”

Quadra Island
Quadra Island saw 4 listings sold (pending completion) and 2 new listings.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island also saw 4 listings sold (pending completion) and 2 listings expired.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Calgary

 “While sales activity in the fall tends to be slower than in the spring months, the continued strong sales are likely being driven by consumers who were unable to transact earlier in the year when supply levels had not yet adjusted to demand,” said Calgary Real Estate Board (CREB®) chief economist Ann-Marie Lurie. “The market continues to favour the seller, but conditions are not as tight as they were earlier this year.”

Benchmark price of a detached home in the city of Calgary: $537,500 up 10% Year over Year.

Benchmark price of a semi-detached home in the city of Calgary: $424,900 up 8.4% Year over Year.

Benchmark price of a row-home in the city of Calgary: $299,600 up 7.2% Year over Year.

Benchmark price of an apartment in the city of Calgary: $253,200 up 1.2% Year over Year.”

Vancouver

“Home sale activity remains elevated across Metro Vancouver’s housing market while the pace of homes being listed for sale continues to follow long-term averages.

The summer trend of above-average home sales and historically typical new listings activity continued in Metro Vancouver last month. Although this is keeping the overall supply of homes for sale low, we’re not seeing the same upward intensity on home prices today as we did in the spring,” Keith Stewart, Real Estate Board of Greater Vancouver (REBGV) economist said.

The benchmark price for a detached home is $1,828,200. This represents a 20.4 per cent increase from September 2020.

The benchmark price of an apartment home is $738,600. This represents an 8.4 per cent increase from September 2020.

The benchmark price of an attached home is $963,800. This represents a 17.5 per cent increase from September 2020.

Toronto

“September marked the transition from the slower summer market to the busier fall market in the Greater Toronto Area (GTA). Every year, we generally see an uptick in sales, average selling price and listings after Labour Day, and September 2021 was no different. Sales increased relative to August and were also at the third-highest mark on record for the month of September. The average selling price was up both month-over-month and year-over-year.

The average price for a detached home in area (416) is $1,778,928. This represents a 19.5 per cent increase from September 2020.

The average price of a semi-detached home (416) is $1,304,504. This represents a 13.9 per cent increase from September 2020.

The average price of a townhouse is $930,056. This represents a 7.2 per cent increase from September 2020.

The average price of a condo is $744,730. This represents a 8.5 per cent increase from September 2020”, as reported by the Toronto Regional Real Estate Board (TREBB)

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Are solar panels going to increase the value of my home?

Thank you My Friend for asking me this question the other day, because it inspired me to write about it in the Discovery Islander where I will share my findings with all the readers.

The usual answer I came up with right away is the usual in real estate: “it depends”. I have done some reading and even asked my fellow real estate agents if they had any experience with this.

The answer is not black and white, as expected.

I think it’s a wonderful technology and I am a big fan of trying new ideas. The three most obvious benefits of using this technology is reducing our carbon footprint, less reliance on the grid, and most importantly cheaper utility bills.

I can see an argument in favour of a solar panel system to supplement your power usage. Cost of energy is going up as we have all been noticing over the years. The way that BC Hydro calculates your power bill is a 2 step system, where you pay one rate up to certain level and then anything above that costs significantly more. In winter for example my hydro bill triples, and I think solar panels integrated into my home could potentially reduce that electric bill shock.

The main things to keep in mind:

Cost - Although cost of panels and all the components have come down in price lately, the cost will vary depending on performance, durability and warranty. Other factors such as installation, permits, inspections, and any modifications related to hook up to your existing grid may add up to the cost.

Maintenance- what are the maintenance costs over time. The efficiency of solar panels degrades over time so the older panels will be perceived as less valuable and less efficient, and also will need more maintenance costs.

Efficiency- How efficient is your system, is it really worth installing it if you live in an area like Quadra Island where sunshine is a rare commodity for six months out of the year? I wish we had “rain panels” on the west coast; Or winter grey sky panels!

Location- Do you have the south facing roof top for best exposure of the sun, does your property have enough sunshine? A lot of the houses in our area of Cortes Island, Campbell River and Quadra Island have a lot of trees around the houses. A lot of efficiency of solar panels depend on unobstructed view of the sun. The panels are supposed to be facing the sun at all times for maxium efficiency; not always possible.

Permits- What are the local guidelines and requirements? It’s always best to hire a local contractor that has experience and knows how to plan a successful installation.   

All things considered, is your property going to go up in value if you install a system?

Large installations on valuable homes tend to add more money to the value of the home than smaller and less valuable homes. Some studies indicate that some properties can benefit up to $6000 for every 1kW installed and working systems. Other sources suggest 2-4% increase in property value, but these numbers are based on hypothetical scenarios.

Most of the time however solar panels do not add significant value to most properties. Even off-grid properties may not increase the value because you’re trading the benefits for all the maintenance costs and unreliable service. For example, when temperatures drop down in the winter the panels don’t produce as much electricity.

The way I look at it is, if you can justify paying $30,000 for a system that will save you $100 in monthly electricity bill then go ahead, but don’t count on the value of the house to go up significantly. I think it’s a great idea of “free” electricity but just how free is it. The panels will provide most amount of electricity when your monthly bills are typically the lowest. In the winter when the panels are not quite as efficient unfortunately due to weather, is when you need to have a good source of supplemental power source.

From a numbers point of view if someone had $30,000 to increase the value of a property I would suggest redoing the kitchen first, then bathrooms, windows, insulation, but if all these options have already been covered then consider adding an additional dwelling on your property. Is there a way to build a rental suite?

The return on investment on the $30,000 invested in a rental suite that can be rented for $800 vs $100 saving on your electric bill is a no brainer in my opinion.

In conclusion, based on all factors the installation of solar panels is a fantastic way of reducing your cost of power and it’s an extra added feature for a property. Theoretically the more features a property includes the more attractive it could be to certain potential buyers. I remember when hot tubs were a great feature for buyers until that trend went away and now selling a house with a hot tub can be a bit tricky these days. As more information about solar panels become available more people will be able to make more educated decisions.

I personally, would definitely consider buying a brand new house with a renewable energy solution built in from the beginning because I can safely assume that all other systems in the house like insulation and windows have a high efficiency rating. As a buyer of an older home with only certain components that meet the efficiency level, I personally would not feel too thrilled.

The Canadian government is offering home owner grants that aim at helping home owners in saving energy costs. This could be a good first step in doing some research.

https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/23441

As you read through that government website you will realize that the promised "up to $5000" grant given to home owners doesn't mean what we think. There are a lot of limitations and conditions that one has to meet in order to take advantage of any of these programs. 

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

http://www.islandphonebooks.ca/

August in Real Estate

Another month has gone by and it seems like not much has changed in terms of pricing or demand for real estate in BC or across the country for that matter. It seems like things have been slowing down a little bit but the demand is still strong and the supply end is lagging behind. I love Real Estate and it's also part of my job to be informed so I can serve my clients better. Every month when statistics are released I analyze and review what's going on in the market and share all my findings. The sources of this information come from the Real Estate Boards that release it to the media. It's all public knowledge and easily accessible by anybody. All i'm doing is compiling a brief summary of each area to give my clients a snapshot of what's going on in the market. I could expand and provide you with much more information on each sector but I think most people are just interested in how much their home is worth today and also if the market is strong or if the sky is falling. Some of my clients have experienced some market corrections back in the 1980's but I was fortunate enough to witness just a short lived bump in 2009. Do I think we are way overdue for a correction? Maybe. I just don't believe things can go on indefinetely and one day there will be a correction but for now I don't think we are seeing any signs of that. The most current development is the news headline coming out of China regarding the Chinese property giant #evergrande   I will be paying closer attention to this developing story because it's related to global real estate. The company's share price has dropped over 80% from it's 52 week highs. Apparently the company is in financial troubles, and it has as much as 3 times debt as the Lehman Brothers did before the whole thing colllapsed. Will this company pull the global markets down? I personally believe that it may cause big ripples in the markets in the next couple of months. 

Campbell River
Slight cooling due to historically low inventory.
Inventory remains extremely tight in the VIREB (Vancouver Island Real Estate Board) area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB (Vancouver Island Real Estate Board) is seeing, there is no doubt that sales would be higher if there were sufficient inventory.

In Campbell River, the benchmark price of a single-family home hit $639,100.

The British Columbia Real Estate Association (BCREA) forecasts that market conditions may begin to even out somewhat by the end of the year. However, it would take approximately 2,500 new listings in the VIREB area to create an actual balanced market if activity continues at this pace. The Vancouver Island Real Estate Board (VIREB) in August saw sales of 450 single family detached properties compared to 531 in June.

Quadra Island
In the month of August we saw two listings “sold”, two were “pending” and three “new” listings. The lowest price was a 10acre empty lot that sold for just under $400,000. The highest Sold price was an Ocean front property in Drew Harbour that sold for $860,000

Cortes Island
August showed some activity on beautiful Cortes Island as well, with one sold listing, one pending and two new listings. The only sold listing was a 10acre lot with buildings that sold over $800,000.

Calgary

Market continues shift toward more balanced conditions after torrid start to the year.

“Sales have far exceeded expectations throughout most of the pandemic, driven mostly by demand for detached homes. At the same time, supply could not keep pace and conditions shifted to favour the seller, something that has not happened in over six years,” said CREB® chief economist Ann-Marie Lurie.

Detached Homes prices remained relatively stable compared with July figures, but were more than 10 per cent higher than levels recorded last year. Price gains continue to vary significantly based on location. Prices have risen across all districts relative to last year, but prices trended down In the City Centre, North West, West and South districts compared to last month. Detached homes benchmark price was $538,700

The semi-detached homes benchmark price was $430,000. Despite strong price gains across all districts, prices still have not recovered from previous highs in the South, North East and City Centre districts

The row benchmark price in August pushed above $300,000, eight per cent higher than last year.

Apartment benchmark price $253,300 nearly 16 per cent lower than previous highs.

Vancouver

While home buyers have remained active in Metro Vancouver* throughout the summer, the supply of homes for sale has declined steadily since June.

Last month’s sales were 20.4 per cent above the 10-year August sales average.

“August was busier than expected, and listings activity isn’t keeping up with the pace of demand. This is leaving the market under supplied.” said Keith Stewart, REBGV economist.

The benchmark price for a detached home is $1,807,100. This represents a 20.4 per cent increase from August 2020

The benchmark price of an apartment property is $735,100. This represents a 7.6 per cent increase from August 2020

The benchmark price of an attached home is $952,600. This represents a 16.5 per cent increase from August 2020

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

#quadrarealty #realestatestats #romankrzaczek #campbellriver #cortesisland #quadraisland

When is the best time to buy Real Estate?

Many of you have heard the way-too-often overused cliché “LOCATION, LOCATION, LOCATION”.

I believe “TIMING, TIMING, TIMING” is much more important for any investment and very strongly in Real Estate.

Yes, you can find a great location but if your timing is off, then maybe you’re not getting the best deal. What constitutes a “good deal” depends on individual perception of value received. Most investors will calculate what a property is worth by the amount of money they can rent it out for and costs to run the property such as maintenance, insurance, taxes and vacancy rate.

When someone is buying a property where they want to live sometimes these basic principles go out the window. You get excited about the property and you’ll do whatever it takes to get it. I believe in the power of attraction and how important it is to dream big, but I also understand that home ownership can come with unexpected costs and as a buyer you must consider them.

Based on statistical patterns best time of the year to buy a home is in January. Typically, there are not many buyers actively looking to buy a home. I want to emphasize “typically”, because the health crisis has caused some abnormalities in the usual statistical patters. This year in January for example we saw a huge surge in sales. A lot of listings available in January are homes that didn’t sell before Christmas and the sellers might be more motivated and flexible with the price.

February onward usually sees more active listings before the spring market madness starts. The logic behind buying a home during the spring is to get possession during the summer months when kids are on summer vacation.

Spring markets are busiest, most competitive and most expensive time to buy. It’s also easier for sellers to make their home look more presentable; with curb appeal and more natural light outside some homes are just more appealing.

Prices normally peak in June and July when the demand is the most active, with lots of active listings and lots of buyers. As the school year approaches, in August and September, the number of active listings is reduced.

Into the winter months there is a higher probability of prices dropping because not many buyers are looking. In a normal year December is very slow for sales and in my opinion it’s the best time to be a buyer.

Buy a home when demand is low. If at all possible, buying a home in a “buyer’s market” is your best strategy. Prices are low and there are lots of homes for sale. 

A “seller’s market” is the opposite, where the inventory is low but the demand is high. This is the current market with multiple offers being so prevalent and the skyrocketing prices, it’s very frustrating to be a buyer.

Every person has a different situation, finances and circumstances, that’s why timing the market could proof to be a difficult task. During the most disruptive times there are people that make enough money to go to space for a few minutes while others lose everything. It’s a matter of timing and planning ahead of time.

Planning to purchase a home? I would love to help you, starting with getting you connected with a financial planner and a mortgage broker. Take your time, plan, prepare your finances and don’t allow your emotions to control you. Hire me and I’ll guide you through the process.

If you have any suggestions or feedback…or have any topics you would like me to cover, please let me know. I would love to hear from you.

Roman Krzaczek Realtor
Quadrarealty.ca
250-285-2141

10 Things to be done to your homes before fall starts

I can’t believe the summer is nearing the end. Although I always enjoy the hot summer days a bit of rain would be welcome even by sun worshipers like myself. In a couple of months, I will surely regret these words but in the mean time I like to make sure my home is ready for the rainy season. I would like to share with you some tips on what is important before the rains come to avoid unpleasant surprises. Perhaps they will help you slowly start mentally preparing for the change of season.

Gutters
We are all used to them working properly and draining lots of water. Over the years however most people forget about checking them for damage or just a simple cleanup. When gutters are clogged, water can seep through into the house and cause major damage. A simple cleanup and a visual inspection can save you a lot of grief and possibly a lot of money.

Roof
Inspection of the roof is much easier to be done in the summer months before the rains start. If there’s any repairs needed to be done now is probably the best time.

Windows and doors
Check the exterior of your windows and doors. They may need re-calking.

Insulation
Take a look in your attic if there’s any holes made by critters. Sometimes squirrels or birds get inside your attic and build nests out of your existing insulation. Inspect and seal any possible points of entrance.

Chimney and wood stove.
Now would be a good time to inspect your wood stove, clean it out and do any repairs if necessary.

Fix any cracks in your driveway.
If you have a concrete driveway and it has cracks in it, this is the best time to take care of that. When winter comes it will be very difficult to get the right conditions to fix it.

Get your composter ready.
This is a big one for the gardeners like myself. There will be a lot of “greens” and soon enough “browns”. I like to make sure I have enough space for all that goodness.

Test winter equipment
Luckily we didn’t have much snow last year but it’s always a good idea to check your snow blower if it needs any repairs or maintenance.

Change your furnace filters
Another thing in your house that might be costing you more money than it should be. If your filters are clogged, it's harder to keep your home at the temperature you want it to be which will increase your heating bills. Clean these filters monthly, not just before the fall, for optimal performance.

Last but not least Change your batteries. Carbon Monoxide and smoke detectors are very important devices that should work properly.

This might look like a long list but there is still a lot of time. If you are a procrastinator or are busy with other more important projects this could be a good to-do check list before September ends.

If you have any suggestions or feedback…or have any topics you would like me to cover, please let me know. I would love to hear from you.

Roman Krzaczek Realtor
Quadrarealty.ca
250-285-2141

July in Real Estate:

Busy long weekend came to an end and the sun keeps smiling. I can’t believe what I’m about to say… but I miss the rain (for my garden). My garden is feeling the stress of super hot sun but I’m still loving the heat and enjoying the time spent at the lakes.

July was a busy month across the board, maybe not as busy as we have seen recently but that’s probably due to the stress test changes and also summer vacations. A lot of people are taking some time off and enjoying the summer.

Campbell River

The Vancouver Island Real Estate Board reports that;

“Inventory remains extremely tight in the VIREB area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB is seeing, there is no doubt that sales would be higher if there were sufficient inventory.”

VIREB’s heated housing market continues to impact prices, which continue to increase throughout the board area.

The benchmark price of a single family home in Campbell River area is 639,100 up from $588,800 just 3 months ago.

Apartments in Campbell River area benchmark closed the $336,300 mark and Townhouses $465,700.

“Unless demand drops significantly or more housing supply comes online through new construction, the needle for VIREB’s inventory situation will not move by much,” states Mackay. “BCREA, VIREB, and other real estate boards continue advocating with policymakers at the provincial and regional levels to speed up the development process so that municipalities can expand supply more quickly to meet demand.”

In the month of July we saw:

Quadra Island had four new listings, and five pending sale (received offers and are waiting for completion)

Cortes Island saw one pending, one cancelled and two new listings.

Seems like a very busy month in such a small market.

Calgary

Price growth slows as supply to demand balance improves.

July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

The benchmark price of a detached home in the city of Calgary is $539,900, apartments: $254,100, semi-detached: $428,400 and row houses: $299,600.

Vancouver

Steady sales, reduced listings and virtually unchanged home prices

“Moderation was the name of the game in July,” said REBGV’s economist Keith Stewart. “Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has leveled off in most areas and home types.”

“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."

The benchmark price for a detached home is $1,801,100. This represents a 21 per cent increase from July 2020 and is unchanged from June 2021.

The benchmark price of an apartment property is $736,900. This represents an 8.4 per cent increase from July 2020 and a 0.1 per cent decrease compared to June 2021.

The benchmark price of an attached home is $949,400. This represents a 16.7 per cent increase from July 2020 and a 0.3 per cent increase compared to June 2021.

TORONTO

JULY NUMBERS SHOW STRONG DEMAND CONTINUES FOR HOME OWNERSHIP IN GTA

“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the market place,” said TRREB President Kevin Crigger.

“There is a huge backlog of people seeking citizenship or permanent resident status in Canada. A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future. Policy makers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in major metropolitan areas,” said TRREB CEO John DiMichele.

Average Price of a detached home in area (416) is $1,695,541, semi-detached: 1,285,347; Townhouses: $926,437; and the average price for a condo: $700,061

It seems that demand across the country continues but maybe just at a slower pace. What would cause such a slow down? Most likely in my opinion the biggest factor behind this trend is the Mortgage stress test that has been recently introduced. The government decided to step in and cool down the overheating real estate market. One of the tools that can be used is the amount of credit that consumers can access. To me, based on the current market conditions statistics there’s a clear co-relation between the stress test and the slow-down. Another big factor that I have also witnessed in the daily life of a realtor is that some buyers are just tired and put the whole idea of buying a home on hold for now. Both buyers and sellers realize that we’ve been stuck at home for too long and might as well just enjoy the summer months and spend time traveling and spending it with your family and close friends. I wonder what will happen with the markets when the new lockdown happens. It appears that it’s just a matter of time before new measures are introduced to control the public. I understand the severity of the health crisis but I don’t always trust what the media feeds us. I would rather enjoy my garden and focus on my family.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca