June in Real Estate:
Craziest thing happened: a client of mine wanted to invest in Bitcoin. The bank loaned him $320,000 of his $400,000 purchase; he just had to come up with the $80,000, and then he owned $400,000 worth of Bitcoin! Can you believe they loaned him the money at 2.75% interest?! Crazy! His monthly payment on that loan with fees was about $1600, but then he rented the Bitcoin out to people for $2,400/mo, and made $800 each month and still got to keep his Bitcoin!! Even though he didn't own it free and clear, he was still able to charge other people to use his Bitcoin every month!
At tax time, he was able to write off any interest he paid on his taxes, and depreciate his asset on his taxes to wipe out any gains, and he even got a 100% guarantee that there will be a demand for his asset as long as he owns it!!
Can you believe that; an asset that goes up in value AND that allows you to cashflow while you hold it??
Oh wait, I misunderstood his story. That wasn't Bitcoin, it was Real Estate...
You can’t do this with any other asset class. Real Estate rules!
The Vancouver Island Real Estate Board’s latest report indicates that “inventory is rising slightly, which opens up a few more opportunities for buyers, but it is still historically tight on Vancouver Island. Although active listings of single-family homes dropped by two per cent from May, condo apartment and row/townhouse inventory rose by 16 and 23 per cent, respectively. 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. More inventory is certainly good news for buyers, even if the increases are slight,” says 2021 VIREB president Ian Mackay. “We’re also relieved to see a few more conditional offers again, which means the frenzied fear-of-missing-out mentality is tempering a bit.”
In Campbell River, the benchmark price of a single-family home hit $627,600 in June, up by 29 per cent from the previous year.
This morning- July 05, as I write this article, I checked the MLS to see what’s happening locally (as I do every single day). I’m noticing lately more and more price reductions on listings in our area. This could be an indication of the market finding its new normal. The price decreases are minor however and are usually used to refresh the listings and get more buyers’ attention.
According to the Real Estate Board of Greater Vancouver monthly report for June,
Metro Vancouver’s housing market sets a steady, calmer pace to begin the summer season.
“Metro Vancouver’s housing market continues to experience strong seller’s market conditions, although the intensity of demand has eased from what we saw throughout most of the spring,” Keith Stewart, REBGV economist said. “The past two months have shown a market that’s shifting toward more historically typical conditions.” This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely.”
Sales of detached homes in June 2021 reached 1,262, a 45.7 per cent increase from the 866 detached sales recorded in June 2020. The benchmark price for detached properties is $1,801,100. This represents a 22 per cent increase from June 2020 and is virtually unchanged from May 2021.
Calgary’s housing market is showing few signs of letting up, as sales reached 2,915 units in June – a record high for the month. “It is taking time for supply to catch up with the demand in the market,” said CREB® chief economist Ann-Marie Lurie.
“Through the early spring market, many buyers did not have a lot of choice, but the recent improvements in supply are providing more options for those purchasers and supporting the strong sales we continue to see in June. At the same time, gains in inventory are taking some pressure off the market as it starts to trend towards more balanced conditions.”
The unadjusted detached benchmark price totalled $537,200 in June, nearly one per cent higher than last month and 13 per cent higher than last year’s levels.
The Toronto Regional Real Estate Board hasn’t posted their monthly report yet for some reason so I can’t provide you with accurate information but from what I’m reading and talking to agents in the region the same trend is happening there as well. In fact, the market slowdown has started in Toronto 3 months ago and it’s been gradually showing the same across the country.
Why is the market cooling? In my opinion, it is most likely the fact that the economy and travelling is opening up again and a lot of people don’t want to spend time and money on moving. A lot of people will choose to enjoy a trip to places like Quadra Island and Cortes Island to enjoy the tranquil nature and… no traffic (except the ferry traffic). I feel blessed and fortunate to live here during these difficult times. It has given me a renewed perspective on life and the appreciation for the little things in life. I appreciate all the tourists that are coming to visit our “rock” and support our small businesses. It is truly helping our community and I’m sure I’m not the only one thinking that. If you are a visitor here to our beautiful Quadra Island- Thank you! We appreciate YOU.
If you are interested in information about real estate in the area, contact me directly at home @ 250-285-2141. I network with lot of agents across the country and in the USA. I can help you to connect with great agents in your area and make your move easier. Visit my website for lots of interesting resources: https://quadrarealty.ca/
Enjoy the sun everyone!
Roman Krzaczek REALTOR ®
Home number: 250-285-2141
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