The Canadian economy grew 1.8 per cent in the fourth quarter of 2011 and with two months of GDP data to work with, and despite February's decline, we estimate that the economy picked up a bit in the first quarter of 2012, growing at a 2.1 per cent pace. We expect a similar rate of growth will prevail for much of 2012, with the Canadian economy expanding 2.2 per cent this year.

 “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information. 

I was recently researching the global markets and came across an analysis of property prices and how they compare. I’d like to share that information with you.
I’m sure you won’t be surprised that the most expensive real estate is in Monaco at $5,400 per square foot. But how do the other major cities compare? Here’s what I found out:

price per square foot:
LONDON $4,500
HONG KONG $4,400
GENEVA $3,000
PARIS $2,500
SINGAPORE $2,400
MOSCOW $2,200
NEW YORK NY $2,200
SYDNEY $2,100
ROME $1,700

An average 2 bedroom condo has 1,000 square feet, so when you do the math, you can see the reality of how expensive real estate is in these principal cities.
How does Vancouver compare, you may ask? Coal Harbour, our most expensive real estate downtown, recently reached a whopping $1,700 price per square foot mark, which is highest condo price you can find in this city.
However, when you compare it to other principal cities in the world, it’s actually on the lower scale. Plus, you live in a beautiful city with fresh air and clean, drinkable water from the tap! Things that we sometimes take for granted...
Courtesy of the Wealth Report 2012.

Now, to the monthly stats. It’s neither a seller’s nor a buyer’s market; still balanced, read on:

BENCHMARK PRICE- UP
The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $679,000, up 5.3% compared to March 2011.
(The benchmark prices shown here are based on the average sold listings in all of the Greater Vancouver region. For more accurate pricing per area, please see chart below.)

The benchmark price for detached properties increased 9.2% from March 2011 to $1,056,400.
The benchmark price of an apartment property increased 2.2% from March 2011 to $375,100.
The benchmark price of a townhome unit increased 0.9%from March 2011 to $480,900.

TOTAL LISTINGS: up
At 15,236,, the total number of residential property listings on MLS(R) increased 16% from this time last year.

SALES: down:
Total sales in greater Vancouver reached 2,874 , 8.4% down from March 2011.

NEW LISTINGS: down:
At 5,843, down 14% from Mar 2011.

Courtesy of the REAL ESTATE BOARD OF Greater Vancouver

Questions? Just ask me!
ANA (604) 328-6330
ana@domingos.ca
www.domingos.

Housing- safe & stable...

Because the mainstream media can often mislead borrowers with its doom-and-gloom headlines regarding the Canadian housing and mortgage industries, as well as consumer debt, it’s important to get the facts straight from the mortgage brokering industry.

    The Canadian Association of Accredited Mortgage Professionals (CAAMP) released a new report in mid-February on employment impacts of housing and related mortgage activity that describes the impact of jobs in Canada related to the housing and mortgage sector.

     The Canadian housing economy is safe and stable. At the peak of the US housing boom, approximately 20% to 25% of all US housing sales were for investment purposes. In contrast, CAAMP estimates that only 2% to 3% of Canadian home sales nationally are investment properties. The reason why this is important is that lenders assume borrowers will pay the mortgage on their primary residence ahead of any investment properties.

    The latest CAAMP report also shows that home equity is growing rapidly, and Canadian mortgage holders are repaying their mortgages more quickly than is required. This is great news as, not only are Canadians paying less overall interest throughout their courses as mortgage holders, but they’re also becoming mortgage-free faster as a direct result.

BENCHMARK PRICE- UP
The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $670,900, up 6% per cent compared to February 2011.

(The benchmark prices  shown here are based on the  average sold listings in all of the Greater Vancouver region.  For more accurate pricing per area, please see chart below.)

The benchmark price for detached properties increased 10.5% from February 2011 and 2012 to$1,042,900.

The benchmark price of an apartment property increased 2.8% from February 2011 and 2012 to $373,300.

The benchmark price of a townhome unit increased 0.7 per cent between February 2011 and 2012 to $472,800.

At 14,055, the total number of residential property listings on MLS(R) increased 17.9 per cent from this time last year.

Did you know that: In 2011, 32,390 homes changed ownership in the Board’s area, generating $1.36 billion in spin-off activity and 9,069 jobs!

Questions? Just ask me!               ANA (604) 328-6330      

On a year to year basis, building permits were 34 per cent higher in January.  Residential permits were marginally lower, though still posted a strong month with over half a billion dollars in proposed new home construction. Non-residential permits were responsible for the majority of the overall decline, falling 12 per cent. Permit activity was mixed across BC major metropolitan areas with Victoria and Abottsford permit activity posting strong gains while Kelowna and Vancouver activity declined. 

Copyright British Columbia Real Estate Association. Reprinted with permission. BCREA makes no guarantees as to the accuracy or completeness of this information.

Canadian Real GDP Growth - March 2, 2012

The Canadian economy grew 0.4 per cent in December and 1.8 per cent at a seasonally adjusted annual rate for the fourth quarter, close to BCREA’s forecast of 1.9 per cent and a marked decline from a 4.2 per cent rate of growth in the third quarter. Grwoth in Real GDP for 2011 was 2.5 per cent, a decline from 3.2 per cent growth in 2011. Significant uncertainty looms over the Canadian economy in 2012 from a yet unsettled Euro-debt crisis an improving but still sluggish US economy, and a deceleration in domestic demand.

We are forecasting Canadian economic growth to further slow in 2012 to just 2.2 per cent. Muted economic growth and ongoing slack in labour markets should keep core inflation near 2 per cent, while rising oil-prices may push headline CPI inflation higher. We anticipate that the Bank of Canada, with Europe and rising household debt at the front of mind, will look past energy related movements in CPI inflation as temporary and leave interest rates unchanged at 1 per cent in 2012.

“Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information. 

http://www.bcbc.com/Documents/EC_20120223_BA_BCBudgetReview.pdf

Government announces new HST/PST housing transitional rules

The government today announced the HST/PST transitional rules on new homes.

As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers include:

• The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.
• The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.
• Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.
• For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price. 

HST/PST transition rules will help ensure that whenever purchasers buy a new home they will all pay a consistent and equitable amount of tax, whether the home is built:

• entirely under the HST;
• entirely under the PST; or
• partly under HST and partly under the PST.

The temporary housing transition measures will be in place until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.

REBGV successfully advocated for the following:

• An increase in the threshold value of homes to be covered by the rebate;
• An increase in the rebate amount;
• An announcement of the transition rules for new homes as early as possible. 

For more information, visit the BC Ministry of Finance at: www.pstinbc.ca

To read the Ministry of Finance announcement: www.newsroom.gov.bc.ca/2012/02/transition-measures-support-new-home-buyers-builders.html

courtesy of the Real Estate Board of Greater Vancouver