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Please note that the value assigned to your property is already outdated when you get it in your mail, because it’s based on data of sold units provided by the real estate boards as of July of last year.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

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

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