Finally, Spring is here, and we can finally work in the garden! I missed being outside doing what I love.

When it comes to Real Estate, it seems like the desired results of cooling down the market have been achieved by the government. The increase of interest rates seems to be slowing down some purchasers from committing currently. More rate hikes coming in June.

Here is a brief summary of what each real estate board is saying about their region: 

Campbell River
Additional inventory positive news for buyers.
“Higher interest rates may also be tempering how much buyers are willing to spend when making an offer. However, it is too early to say whether conditions are beginning to shift towards a more balanced market. According to the British Columbia Real Estate Association, housing markets in British Columbia are so lopsided that it will take a substantial decline in demand to return active listings to a healthy state.

That said, sales did dip in April. By category, 507 single-family homes were reported sold on the MLS® System in April, a 13 per cent decrease from one year ago and down by three per cent from March.”
In Campbell River, the benchmark price of a single-family home hit $769,800 in April, up by 31 per cent from the previous year.
Benchmark Price for an apartment: $385,700.
Benchmark Price for a Townhouse: $527,100.
Quadra Island
Quadra Island in April had 5 new listings, 3 sold (pending).
If you would like more details including “sold prices” go to my website, sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Cortes Island
April on Cortes Island had 2 new listings listed and 1 cancelled.
If you would like more details including “sold prices” go to my website, sign up and log in for free to members only area that will provide that information www.quadrarealty.ca

Calgary
“Following an all-time record high month of sales in March, activity slowed down in April. However, with 3,401 sales this month, it was still a gain of six per cent over last year and a record high for the month of April. “Despite some of the monthly pullback, it is important to note that sales remain exceptionally strong and are likely being limited due to supply choice in the market,” said CREB® Chief Economist Ann-Marie Lurie. “While further rate increases will likely start to dampen demand later this year, more pullbacks in new listings this month are ensuring the market continues to favour the seller, resulting in further price gains.”

The benchmark price of detached homes in the city of Calgary hit $628,900; semi-detached: $487,900; row home: $343,000; apartments: $272,600.

 Vancouver
“Metro Vancouver home sales return to more traditional levels in April. “So far this spring, we’ve seen home sales ease down from the record-breaking pace of the last year,” Daniel John, REBGV Chair said. “While a small sample size, the return to a more traditional pace of home sales that we’ve experienced over the last two months provides hopeful home buyers more time to make decisions, secure financing and perform other due diligence such as home inspections.”
The benchmark price for a detached home is $2,139,200. This represents a 20.8 per cent increase from April 2021.
The benchmark price of an apartment home is $844,700. This represents a 16 per cent increase from April 2021.
The benchmark price of an attached home is $1,150,500. This represents a 25 per cent increase from April 2021.

Toronto
“The Greater Toronto Area (GTA) housing market continued its adjustment to higher borrowing costs, with the number of transactions down on a monthly and annual basis. As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability.

“Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase. Moving forward, it will be interesting to see the balance the Bank of Canada strikes between combatting inflation versus stunting economic growth and related government revenues as we continue to recover from and pay for pandemic-related programs,” said TRREB President Kevin Crigger.”
The average price for a detached home in area (416) is $1,947,975.
The average price of a semi-detached home (416) is $1,494,640.
The average price of a townhouse (416) is $1,086,986.
The average price of a condo (416) is $820,835 as reported by the Toronto Regional Real Estate Board (TREBB).

I’m off, back to the garden before the rain comes! Enjoy the sun!

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

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Read full post

The market is changing

 A very drastic title, just to grab your attention. I noticed lately that a lot of media outlets love to grab people’s attention by using a good title. Often, it’s not accurate and misleading but the sound bite is already out there and that’s what influences the masses. Not many people bother to read the whole article but base their opinions on these cleverly manipulated opinions. I suspect, that’s how critical thinking was abolished.

I would like to share some facts about the market and will try to avoid sharing my opinions, but before I do that, I wanted to give a round of applause to all the people that showed up to the Public Meeting at the community center last week. In case you missed the meeting, a lot of people showed up and we had a lot of great speakers. One thing I took away from this meeting was that people still care about this community. I have gotten used to seeing people’s eyes glazing over when you mention anything about politics. To my pleasant surprise I saw a nice mix of young people and experienced folks; and it warms my heart that a lot of people don’t only think about money. Job creation is nice, but change must be carefully planned with feedback from the citizens. It should never come down from the top. I’m curious to see what will happen with this proposal of rezoning but I really hope the democratic system still works here. Sorry I deviate from my main topic, but it’s important to note that communities consist of people, not empty summer houses.

It’s hard not to notice the news talking about the high level of inflation these days. In order to curb the inflation banks will be unveiling more interest rate hikes and effectively shrinking their monetary policy. A valid question is, how will it impact real estate in Canada?

What we are seeing today is a highly distorted curve of demand vs supply in the market. I think the higher interest rates will force prices down, but because the demand is still very high, I don’t think prices will decline significantly and probably only in some areas.

In addition to interest rate increases the government has proposed a freeze on foreign buyers. The government thinks that banning foreign ownership for 2 years will make an impact on affordability. I highly doubt that since foreign buyers consist of only about 3% across the country. No details have been revealed yet but as soon as I will know, I wish share. 

Another controversial measure proposed by the government to cool down the market is the introduction of a “cooling off period”. Similar tool exists in a pre-build market where a buyer who buys a condo that hasn’t been built yet can rescind their offer within few days after signing the contract. Unfortunately, this proposed measure would be favoring the buyers and possibly punishing the sellers. No details have been revealed by the government yet, but I will keep you posted.

One more proposal made by the government is to create a multiple offer registry, where all offers that the seller received would be registered. I think this is a great idea to gain more transparency and trust in the system. Similar system already exists in Toronto and seems to work well. Currently there’s no details about this yet but I hope it will be rolled out soon.

 Couple interesting statistics that also have an impact on real estate prices:

- more than 100,000 people moved to BC in 2021 (most since 1961)

- In BC between the years 2010-2015 we had an average of 40,000-50,000 active listings consistently every year. Since 2016 something happened and the number of available homes for sale has been considerably falling. In 2022 we are on track for about only 15,000 active listings for the year. A healthy balanced market is roughly 40,000 active listings.
We have been under a very low supply of inventory for many years and if you would like to get some hints of the core issue you could google questions like: “When was Justin Trudeau elected? What is Justin Trudeau’s immigration policy?” to get some interesting answers.

In summary, the sky is NOT falling. Prices in our area are still affordable for people coming from the city. Things will probably slow down, and we may not see as many multiple offers. Properties will take longer to sell, and prices will level off. Only time will tell.

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

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Read full post

March in Real Estate

Spring is in the air and the nature is waking up from its wintery rest and hibernation (including myself!). Last few weeks have been quite busy for me therefore there was no time to contribute with an article in the last Discovery newsletter. In this edition however, I would like to share March statistics with you.

Campbell River

Inventory in the Vancouver Island Real Estate Board (VIREB) area is slowly inching up but is still far from ideal.

In Campbell River, the benchmark price of a single-family home hit $722,400 in March, up by 28 per cent from the previous year.
Benchmark Price for an apartment: $363,300.
Benchmark Price for a Townhouse: $537,300.

Quadra Island
Quadra Island in March had 2 new listings, 2 sold (pending), 2 cancelled, and 1 expired listing.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
March on Cortes Island had 1 new listing listed at $775,000 and 3 pending.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
For the second month in a row, sales activity not only reached a monthly high but also hit new record highs for any given month. Gains occurred across every property type as they all hit new record highs.
“While supply levels have improved from levels seen over the past four months, inventory levels are still well below what we traditionally see in March, thanks to stronger than expected sales activity,” said CREB® Chief Economist Ann-Marie Lurie. “With just over one month of supply in the market, the persistently tight market conditions continue to place significant upward pressure on prices.”

The benchmark price of detached homes in the city of Calgary hit $620,500; semi-detached: $478,400; row home: $335,400; apartments: $265,900.

Vancouver
“Market remained elevated in March."

“March of 2021 was the highest selling month in our history. This year’s activity, while still elevated, is happening at a calmer pace than we experienced 12 months ago,” Daniel John, REBGV Chair said. “Home buyers are keeping a close eye on rising interest rates, hoping to make a move before their locked-in rates expire.”

The benchmark price for a detached home is $2,118,600. This represents a 23.4 per cent increase from March 2021.
The benchmark price of an apartment home is $835,500. This represents a 16.8 per cent increase from March 2021. The benchmark price of an attached home is $1,138,300. This represents a 28.1 per cent increase from March 2021.

Toronto
There were almost 11,000 Greater Toronto Area (GTA) home sales reported in March 2022, capping off the third-best March and second-best first quarter on record. Tight market conditions continued to support a double-digit annual pace of price growth, with an average selling price of $1.3 million. The average selling price dipped slightly month-over-month, bucking the regular seasonal trend

However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year,” said TRREB Chief Market Analyst Jason Mercer. 

The average price for a detached home in area (416) is $1,920,018.
The average price of a semi-detached home (416) is $1,545,447.
The average price of a townhouse (416) is $1,117,469.
The average price of a condo (416) is $831,351 as reported by the Toronto Regional Real Estate Board (TREBB).
Today we are facing the most serious housing crisis ever, in this country. Yet, we continue to keep faith that our government will come and save us, even though the government has created these problems in the first place. Have you seen the latest government proposals to “help” with the housing market? I may address those in my next article. As for now…. I’m once again excited about this new gardening season.
One thing I have learned last year, the hard way, is planting seeds too early.  The wait is hard, but in another week or so we should be good to go, my fellow gardeners. Thank you to all the gardeners for sharing valuable information with the community. I have lots to learn.

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

Roman Krzaczek REALTOR ®
Home number: 250-285-2141
Quadrarealty.ca

Read full post

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

Read full post

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

Read full post

January in Real Estate 

January came and went and I can’t wait to start gardening already. Here is a brief summary that I pulled from Real Estate Boards across the country. They are direct quotes from reports that are available to the public. 

Campbell River

“The new year brought a small inventory bump, but demand is still far outpacing supply in the Vancouver Island Real Estate Board (VIREB) area.

In its recent Market Intelligence Report, the British Columbia Real Estate Association (BCREA) states that with markets so out-of-balance, it will take a substantial decline in demand to return active listings to a healthy state. Further, the Bank of Canada is signalling that it will begin raising its policy rate or “tightening” monetary policy this year in response to elevated Canadian inflation.

Historically, the Bank of Canada’s tightening has led to falling home sales and flattening home prices. BCREA’s model simulations show that the most likely outcome of this round of Bank of Canada tightening will be home sales falling to near their historical averages and for home price growth too moderate. However, any tightening is unlikely to result in significant price decreases because of severely low supply.”

Benchmark Price for a detached home in Campbell River in December reached: $682,800.

Benchmark Price for an apartment: $334,900.

Benchmark Price for a Townhouse: $515,100.

Quadra Island
Quadra Island in January had 2 new listings, 1 sold (pending) and 1 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

January on Cortes Island had 2 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 persistently strong sales, inventory levels in the city eased to 2,620 units, the lowest levels seen since 2006. This caused the months of supply to remain exceptionally low for this time of year at 1.3 months.”

The benchmark price of detached homes in the city of Calgary hit $559,800; semi-detached: $439,900; row home: $305,600; apartments $251,200.

Vancouver

“The first month of 2022 saw home sales come down from last year’s record-setting pace, while low supply continued to cause home prices to edge higher across Metro Vancouver*.

“Our listing inventory on MLS® is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited choice in the market today. This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices,” Keith Stewart, REBGV economist said.” 

The benchmark price for a detached home is $1,953,000. This represents a 22.7 per cent increase from January 2021.

The benchmark price of an apartment home is $775,700. This represents a 14 per cent increase from January 2021.

The benchmark price of an attached home is $1,029,500. This represents a 24.3 per cent increase from January 2021. 

Toronto

“Demand for ownership housing remained very strong from a historic perspective in January 2022. At the same time, listings remained in short supply, resulting in tight market conditions and very strong year-over-year price growth.”

The average price for a detached home in area (416) is $1,886,413.

The average price of a semi-detached home (416) is 1,471,535.

The average price of a townhouse (416) is $1,080,284.

The average price of a condo (416) is $760,643 as reported by the Toronto Regional Real Estate Board (TREBB). 

This year started off with the same issues as last. Not enough inventory across the country. Very strong seller’s markets all across Canada. 

I have been trying very hard not getting too political in my real estate column but what’s happening in my beloved country of Canada is very alarming and concerning. It’s hard to decipher what is the truth anymore. All I know is that we are more divided than ever. It’s hurting families and communities.

Mainstream media have done a very poor job at covering what is really going on, but my biggest concern is how our politicians have decided to respond. Invoking the Emergency Measures Act on a small peaceful fridge group seems like something that would be done in a country that doesn’t believe in a democratic system. I urge you to read more about it, but from several opposing sources. Think for yourself, don’t just repeat what they tell us.  This is important for the future of Canada. How can we invoke kindness, unity and compassion, instead of hate?


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

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Read full post

Radon (Rn) 101 – Understanding it within the Canadian Housing Context

 

Recently as part of Professional Development Course I took an interesting course and I would like to share with the readers of the Discovery Islander what I learned.

The course was put together by “Evict Radon” which is a volunteer-led Canadian non-profit organization dedicated to solving Canada’s large and allegedly worsening radon-gas exposure problem.

Why should you care about this?

Exposure to Radon may cause serious health issues including lung cancer.

The reason why it’s relevant to Real Estate is that Radon is a health concern and could be seen as a “latent defects” in a real estate transaction. Latent defects are hidden, unknown defects that are not generally discoverable by a prospective purchaser or a reasonable inspection.

In all of my years in the industry I have never seen a deal fall apart due to Radon reading. In fact, I have never even seen a Radon reading disclosed in the Property Disclosure Statement but I suspect that this trend of “healthy homes” will continue to push new ways of red tape. In my opinion, if it’s actually based on science and not on special interest groups and it will make us healthier than I think it’s worth looking into.

What is Radon?

“Radon is a tasteless, odourless and invisible radioactive gas that results from decaying uranium, and is a leading cause of lung cancer.

Radon filters up from the ground and into the air. It can enter buildings through openings where the buildings contact the ground. In the outdoors, radon is diluted to low levels. Inside buildings, however, radon can build up too harmful, concentrated levels. Breathing increased levels of radon increases a person’s chance of developing lung cancer. In fact, Radon is linked to 16% of lung cancer deaths. It is the leading cause of lung cancer in non-smokers, and the second leading cause of lung cancer after smoking.”

Who is at risk?
Everyone is at risk for radon inhalation, and any building that has contact with the ground has the potential to have high radon levels, including houses, apartments, schools, daycares, warehouses and commercial spaces.”

“Evict radon” is asking for participation with their research by testing your home and sending it back to them.

Participation in this research based study can help in better understanding what type of property produces a high or low radon environment and why. It will help in identifying who in society are the most at risk and also help in determining meaningful changes to policy and building codes in the future.

I am naturally sceptical when someone says “this is for your own health” because it usually means it will cost me something. However, I am open minded and passionate about learning so I purchased the test to see what it says about my home. The test cost me $53.99 plus shipping and taxes, total of $78.71.

The way to conduct the test is to place the little plastic device (the radon test) in the lowest level in your home that you spend about 4 or more hours a day. This could be your basement or the main floor. Do not place the radon test in well ventilated spaces such as kitchen, bathroom or areas with open windows or excessive airflow. Do not place them on the floor. The purpose of these tests is to give the research group a more accurate measurement of air quality. Typically, a location on the bedside table is a great place for the test. The test needs to stay in the same location for minimum of 90 days or longer.

If you would like to participate in this study go to the websites provided below. Both of the websites provide abundance of information about Radon, about the test and also mitigation process.


I think it’s a great resource for those of you that are curious or just health conscious. 

The website https://c-nrpp.ca/testing-for-radon/

 

The website to purchase the home test is here: https://evictradon.org/about/

 

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

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Read full post

 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

Read full post

 

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

Read full post

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

Read full post

Colour of your front door.

First of all, I would like to thank you for all the feedback I have received from so many of you! It’s very humbling and also uplifting that my column is liked by many. The ones that gave me some constructive criticism- thank you and I will consider your suggestions.


My intention is simply to deliver some valuable information for the readers of the Discovery Islander.

I love my local Quadra Island community and would like to figure out how I can serve better, long term.

Recently I read an interesting article claiming that the colour of your front door reveals more about you than you might think. In my former education as a graphic designer I studied the theory and application of colour for advertising campaign communication, for example. I do understand that our non verbal communication is much more important than the actual words.


I’m curious if this article was correct or if it’s just a fashion or design piece that missed the mark. It claims that if the front door of your house are painted certain colour, subconsciously you are trying to communicate to the world and more specifically to the neighbours some hidden messages.

RED- Feng Shui considers red door to be a lucky colour when facing south or southwest. Red is associated with action, making people feel like they are “real go-getters”.

According to Feng Shui:

  • The best color for your south-facing front door is red, as this enhances the Fire element of this direction.
  • The best color for a north-facing front door is blue, as north is the element of water.
  • If your door faces west, the most auspicious color is white because the element that governs this direction is metal.
  • The best color for an east-facing door is green because the element that corresponds to this direction is wood.

BLACK- represents seriousness and glamor. It may appear safe and well protected. People choosing this colour appreciate order, control and elegance.  


Shades of VIOLET are “linked to sophistication”, according to the article.


YELLOW- is linked to optimism and extraversion as long as it is not overused all over the house because that could be interpreted as “irrationality and anxiety”. You are logical, positive and creative.


ORANGE- just like any colour, it really depends on the style of your home. If your home is a high end modern home, orange screams “one of a kind”. You like to entertain and enjoy a good challenge.


GREEN- it is believed this colour indicates prosperity, wealth and peacefulness. You value tradition and ambition.


WHITE- although a Scandinavian design of pastel white could communicate simplicity and cleanliness, it may be also communicating that the home owner is obsessed with keeping the house clean; making some visitors nervous about making a mess.


BROWN/ wood color- natural wood browns convey more relaxed atmosphere. This one is definitely my personal favourite. I love vertical grain fir doors with some darker shades of browns. Gorgeous! Warm, reliable, and stable.


BLUE is linked to calmness and trust. From my graphic design school, I remember this one the most because it is used in the corporate logo design world a lot: Microsoft, IBM, Facebook, HP, Intel, Boeing, Ford, just to name a few. You enjoy peace and value truth.


Is it possible that this article is on to something? I know Quadra has a lot of great local artists which innately understand the importance of colour. It is the poetry of artists.  
“One can speak poetry just by arranging colors well”- Vincent van Gogh

Every house has a unique appearance which is typically a reflection of the family that lives there. Whatever you like may not be what your neighbour likes and it may not appeal to the potential buyers if you’re thinking of selling. Is there a logical strategy to paining your door before selling your home? Maybe. Studies show that careful staging of your home will typically bring a higher price.


If you want to make your home look modern and sleek, designers recommend these front door colors for non-traditional homes:

  • Black
  • Lime
  • Turquoise
  • Eggplant
  • Taxi Yellow
  • Bright Orange

 Best colours for traditional homes:

  • Jet Black
  • Classic Red
  • Slate Blue
  • Emerald Green
  • Dark Gray
  • Pure White


What color is your door? Let me know what you think about this idea of color in comments on my website https://quadrarealty.ca/blog.html  or text me to 604-787-4594


Roman Krzaczek
Quadrarealty.ca
250-285-2141

Read full post

Renovictions

As a Realtor sometimes I get to participate in some very complex problems and issues arising from tenancies. I have some experience from being a landlord myself and have helped my clients in guiding them to get proper resources in dealing with tenancies. I am not a licenced property manager so I’m not an expert in this field that’s why I strongly recommend and warn you to do your own research before you commit to being a landlord. Whether you are a tenant or landlord it’s very important to know the rules of the game. My assumption is that majority of landlords are honest, decent and responsible people. I also assume the same great qualities apply to the tenants. Of course there are small groups of people that play outside of the norm and don’t play by the rules and that’s why it’s important to familiarize yourself with the rules of the game if you intend to participate.
 

I understand that the tenancy act appears at first to be very complex but when you look deeper it’s actually very easy to understand and there are simple rules to follow based on the principle of “just do the right thing”


Here’s a brief summary of new rules that came into effect on July 1, 2021.


How can a landlord increase rent? Currently due to factors such as current health crisis the government has put a freeze on rent increases until December 31, 2021. So legally you can’t increase rent this year. The maximum allowable rent increase for next year will be publicly announced at the end of the summer.


What if you evicted your tenant so you can do some renovations and then rent it out to a new tenant at a higher market rent? This is referred commonly as a “Renoviction”. This is a very hot topic and I feel that it needs to be analyzed in depth to make sure you understand it clearly.


As of July 1, 2021 under new legislation if a landlord wants to end a tenancy for extensive renovations the landlord will have to apply for “order of possession” from the Residential Tenancy Branch. There will be a process of dispute resolution where an arbitrator will decide if ending the tenancy is the only way to complete this work.

The most important factor is to prove that the renovation you’re trying to do will require the tenant to move out. Simple replacing of kitchen cabinets, installation of flooring, or painting is considered cosmetic repairs and do not constitute as “extensive” repairs.

“Section 49.2 of the Residential Tenancy Act establishes four basic requirements to end a tenancy for renovations or repairs:

  1. the landlord has all the necessary permits and approvals required by law and intends in good faith to renovate or repair the rental unit(s) 
  2. the renovations or repairs require the unit(s) to be vacant
  3. the renovations or repairs are necessary to prolong or sustain the use of the rental unit(s) or the building where the rental unit(s) are located
  4. the only reasonable way to achieve the necessary vacancy is to end the tenancy agreement

If the above requirements are met, a landlord can apply to the RTB (Residential Tenancy Branch) for an order of possession to end a tenancy. There will be a hearing where the landlord and tenant can provide their evidence and the arbitrator will make a decision. 

After July 1, 2021 the only reason a landlord can serve a Four Month Notice to End Tenancy is:

  1. convert the residential property to strata lots under the Strata Property Act;
  2. demolish the rental unit;
  3. convert the residential property into a not for profit housing cooperative under the Cooperative Association Act;
  4. convert the rental unit for use by a caretaker, manager or superintendent of the residential property; or
  5. convert the rental unit to a non-residential use.”

The violation of laws by the tenant under normal circumstances could result in termination of lease and/or losing your damage deposit. In my next article I would like to address this in more detail.
The landlord has more to lose however because if the landlord is found in violation of rules can face a penalty of up to 12 months of rent to be payable to the tenant. That can be a big hit to some people, and sometimes it’s the only way of getting rid of an undesirable tenant.

There is no way around rules and some of the most common scenarios won’t be acceptable, like:

  1. A landlord ends a tenancy to occupy the rental unit and then changes their mind.
  2. A landlord ends a tenancy to renovate the rental unit but did not adequately budget for the renovations and cannot complete them because they run out of funds.

If you need further information I highly recommend going to the government website (link provided below). It contains all the information that you need. https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies

We are in a housing crisis and avoiding the subject won’t solve the problem. Shelter is the basic human need as shown in the Maslow’s Hierarchy of needs, and I feel it’s very important to treat it as such.
I strongly believe that education and free information is a step in the right direction. The Residential Tenancy Branch offers a lot of help to both tenants and landlords before problems arise, I highly suggest you contact them directly. They are very helpful and professional.

Being a landlord is hard because you bought an investment that cost you a lot of money and in some circumstances the financing for your home was subject to you having a rented unit to supplement your mortgage payments. You are financially, emotionally and physically attached to your property. This may be just an investment but you want to rent it out to someone that will take care of it as much as you would. This is a trap that will get every landlord in trouble. Tenants don’t have these bonds as you do and having the expectation of tenants to care as much about your property as you do, is simply just not realistic. Spare yourself some nerves, tears and disappointments. Just don’t expect your tenant to be like you. Most tenants are very decent people and they will treat your property as what it is, YOUR property.
Not every tenant is a low-life with a low paying job, or a young person that is starting out in life. Today a lot more people are choosing to be tenants. Being a home owner when you look just at the numbers have been wonderful and a guaranteed “win” especially if you base your opinion on the last 40 years or longer. The question remains if this trend will continue and what is the true cost of owning a home today. Don’t get me wrong, I strongly believe that owning is better than renting BUT not always, and not in every market. I believe in analyzing your budget, having long term goals and planning your future carefully. The constant balance between supply and demand of housing is what dictates the prices and also vacancy rates of rental units. We have been very fortunate that the constant influx of new immigrants and high demand for housing has been very favorable to home owners. As long as this continues things will be just peachy.


If you have any questions or suggestions, please don’t hesitate to contact me directly at home at

250-285-2141 I’m here to serve you better.

Roman Krzaczek REALTOR ®
Quadrarealty.ca

Read full post
Categories:   1378 heriot bay road | 2-620 Helanton Road, Quadra Island | 597greenroad | bc assessment | buyer agent | buyer market | buying real estate | calgary real estate | campbell river | campbell river re | campbell river real estate | campbell river stats | cortes island | cortes island real estate | cortes island realtor | december real estate | decor ideas | discovery islands | drew harbour | February stats | healthy homes | heriot bay | homes for sale | house for sale | Introduction to Quadra | Isl Cortes Island, Islands Real Estate | Isl Quadra Island, Islands Real Estate | Isl Small Islands (Campbell River Area), Islands Real Estate | january stats | June Real Estate Stats | march statistics | market update | meaning of colour | merry christmas | new listing | NI Port Alice, North Island Real Estate | november real estate stats | October Statistics | quadra island | quadra island re | quadra island real esta | quadra island real estate | quadra island realtor | quadra real estate | quadra realty | quadraisland | quadrarealty | quadrarealty.ca | Quathiaski Cove Real Estate | radon | radon test | real estate | real estate campbell river | real estate for sale | Real Estate in Campbell River | Real Estate in October | real estate insights | real estate market update | real estate newsletter | Real Estate on Cortes Island | Real Estate on Quadra Island | real estate quadra island | real estate statistics | realestate | realtor on quadra island | rebecca spit | residential tenancy act | roman krzaczek | sell your home | september real estate stats | solar panels | sold | spring market in real estate | stats | summer real estate | top realtor | value of my home
MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.