Sutton Showplace Realty (2015) Chilliwack

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B.C.'s housing market healthy and will bounce back

28 October 2019
Sutton Showplace Realty Chilliwack

The local housing market is healthier and will start to bounce back through 2020 and into 2021, according to the latest report by the Canada Mortgage and Housing Corporation.

Ontario’s and British Columbia’s outlooks for sales growth are relatively strong in 2020 and 2021 when compared to other regions, consistent with growth in real disposable income that is forecast to exceed the national average over this time period.

B.C. is also expected to see relatively strong growth in new builds.

Prices are also forecast to see a modest recovery in B.C., after a dip in 2019, with B.C. seeing up to the second highest price growth after Ontario in 2021. Other regions will generally see modest gains.

However, CMHC says global trade tensions and continued high levels of household debt are still risks to both the economy and housing activity across the country.

It also says that higher interest rates or a rise in unemployment could hit already strained budgets and put pressure on housing activity.

Recent measures of overvaluation for the major markets of Vancouver and Toronto as well as for those in their vicinity indicate a general easing of vulnerabilities, as prices have been gradually aligning more with fundamentals in recent quarters.

The current outlook for renewed growth in home prices doesn’t imply overvaluation and or price acceleration measures will necessarily worsen, since growth in fundamentals over the same time period can be sufficient to support stronger resale market activity and price growth.

Housing starts across the country should come in at around 200,000 units next year after declining this year and last.

Home prices are also expected to start growing in 2020 and 2021 to raise the average price above the 2017 peak.

Article by: https://www.citynews1130.com/2019/10/24/cmhc-expects-housing-market-to-recover-in-next-two-years-after-declines/

  Buyers  News  Selling

First-Time Home Buyer Incentive

20 September 2019
Sutton Showplace Realty Chilliwack

The First-Time Home Buyer Incentive helps qualified first-time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens. This website help to determine your eligibility, calculate your maximum purchase price, and select the incentive that is right for you. Click here for more info: https://bit.ly/328Lwmw

  Buyers  News

New Incentive for First Time Home Buyers

15 September 2019
Sutton Showplace Realty Chilliwack
The new First-Time Home Buyer Incentive is a 3 year program offered by the Federal Government as a "Shared Equity Mortgage", with the Federal Government being your partner.

The incentive allows eligible first-time home buyers, who have the minimum down payment for an insured mortgage, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada. Essentially, the incentive helps qualified first-time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens.
  • Lower Monthly Mortgage Payments
  • Interest-free Incentive Program
  • No Pre-payment Penalty
  • Newly Constructed Homes eligible for 5% or 10%
  • Existing Homes eligible for 5%
This website help to determine your eligibility, calculate your maximum purchase price, and select the incentive that is right for you.
https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
 
For mortgage advice, contact an experienced licensed mortgage specialist.

Buying Foreclosures: Keep These Tips in Mind

10 September 2019
Sutton Showplace Realty Chilliwack

Many buyers associate buying a foreclosure with getting a great deal on the purchase price, usually with a quick closing date. While this can be true, there are some important things to keep in mind.

The process for purchasing a home in foreclosure is different than a typical purchase. There must first be a firm unconditional contract agreed upon between a Buyer and the Seller. A court date will be set and the contract will be presented to a judge. At this time, other interested parties (who are now aware of the current purchase price) are welcome to attend court and present their best offer as well. The judge, at his/her discretion, then determines which offer to accept. All potential Buyers must have their deposit cheques ready, and be willing to commit to the purchase with zero conditions, and accepting the home and property "as-is, where-is".

The pros and cons differ depending on what stage of foreclosure the home is in. If you're aware of some of the pitfalls, it will help you to be more prepared during the purchase process. Hiring a Licensed Realtor, a Professional Home Inspector, and obtaining advise from a Legal Representative and Financial Lenders, are all important tasks to complete during this process.

A few things to be aware of:

  • If the Seller accepts your offer, you're not guaranteed to purchase the home because the contract will ultimately be, "Subject to Court Approval."
  • The Seller may not be able to negotiate a price that's lower than the outstanding balance of the seller’s mortgage(s).
  • It can be difficult to obtain a mortgage on a foreclosure; buying with all cash is a frequent occurrence. Make sure you have spoken with your lender prior to writing an offer. It's important to know your budget and to stay within in it, especially when there's an opportunity for other interested parties to present offers on the property as well. Discuss this with your Realtor and determine what your best offer will be so they can present it to the court on your behalf.
  • Foreclosures are sold "as-is, where-is", so it's not very likely that the Seller will complete any repairs prior to completion. Also, the Sellers /tenants may not leave the home in great condition, so be prepared to hire cleaners and potentially purchase new appliances, etc.
  • Keep in mind that being foreclosed on is a devastating and stressful time for the sellers, and they may still be living in the home during the process. Be respectful when viewing the home, and save your conversations for when they're not in your presence.
  • When the Seller is the Bank, they cannot provide disclosures as to property history/condition issues. It's very important to have the property inspected prior to committing to the purchase. Read the Home Inspectors report and have funds set aside to renovate or remediate any signs of mould, electrical issues, etc.

While the process of purchasing a foreclosure may seem daunting, consider hiring a Licensed Realtor to represent you and take some of that stress off your shoulders. They will walk you through the process and represent you with your best interests in mind. If a Seller is motivated to achieve a quick sale, that may also result in purchasing the home for below market value. Who doesn't want a great deal!

If you'd like to speak with one of our experienced Sutton Agents, please contact our office and we'll be pleased to introduce you. 604-858-1800


OPEN HOUSES

12 July 2019
Sutton Showplace Realty Chilliwack

We advertise our list of OPEN HOUSES every week on our Facebook Page.

Check it out to see what lovely homes our agents will have available to view.


Is the First-Time Home Buyer Incentive a good deal for Home Buyers?

25 June 2019
Sutton Showplace Realty Chilliwack

The details of Ottawa‘s new First-Time Home Buyer Incentive (FTHBI) are finally out, and the question for any Canadian struggling to afford their first home is: is it a good deal?

Under the program, which was first announced in the federal budget in March, the government is offering an interest-free loan to help homebuyers take out a smaller mortgage and keep monthly repayments lower. New information released on Monday clarified that, when the loan is repaid, the government will also get a share of any gains from the appreciation of the property.

Vice versa, if the value of the home has dropped, Ottawa will shoulder a percentage of the loss.

The measure will reduce monthly mortgage costs by up to $286 and is expected to help some 100,000 families become homeowners, Jean-Yves Duclos, minister of families, children and social development, said in a prepared statement.

Sources consulted by Global News, though, had either negative or mixed reviews of the proposed incentive. Here’s what you should know:

Qualifying for the incentive

In order to participate in the FTHBI, you must meet two main requirements: be a first-time homebuyer and have an annual income of no more than $120,000.

The government sets out the criteria for who can call themselves a first-time buyer, a definition that is more nuanced than one might think. The income test is subject to requirements set out by lenders and mortgage loan insurers.

Buyers must come up with their own cash for a down payment of at least five per cent of the property value, but the incentive is meant only for mortgages greater than 80 per cent of the home value. In other words, if you’re planning on a down payment of 20 per cent or more, this isn’t for you.

The maximum home price you can aim for is four times your income plus the incentive amount.

Click here to find out how the math works, and if it's a good idea for new home buyers. The opinions mentioned herein are not that of Sutton Showplace Realty.

https://globalnews.ca/news/5398742/first-time-home-buyer-inventive-good-deal/?fbclid=IwAR1OS6el35_EXfNY40_3Tuq-28b9ofLsTk_KIJO9H1V5xh6tA6Ukz6BuN6A

  Buyers  News

OPEN HOUSES

24 May 2019
Sutton Showplace Realty Chilliwack

If you're interested what OPEN HOUSES our Agent's are hosting, we advertise weekly on our Facebook Page.
Check them out here: https://www.facebook.com/suttonshowplacerealty/


BC Speculation Tax

22 March 2019
Sutton Showplace Realty Chilliwack

Are you on the title of your parent or child's property?
The deadline for claiming your exemption from this new tax is March 31, 2019. The online form isn't as clear as it could be about claiming this exemption.
The following information is referred from the Government website.

Individuals Exemptions for Speculation and Vacancy Tax

 

People who own residential property within designated taxable regions of B.C. may be eligible for an exemption from the speculation and vacancy tax.

Shared Ownership

When more than one owner is on title for a residence in a taxable region, each owner claims their relevant exemption as an individual. Different eligibility requirements may apply to different owners.

Example: If a parent co-owns a home with their adult child and the adult child lives in the home and the parent lives elsewhere, then the following exemptions will apply:  

  • The child claims the principal residence exemption
  • The parents claim the tenancy exemption for family or other non-arm's-length persons

Example: An elderly parent adds their adult child on title to the parent’s condo in Vancouver for end of life planning. The parent still lives in the condo and the child lives in Prince George. The exemptions will apply as follows:

  • The parent claims the principal residence exemption
  • The child claims the tenancy exemption for family or other non-arm's-length persons

Click here for a list ofExemptions: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals


New Mortgage Rules are impacting B.C. families' abilities to purchase homes.

18 March 2019
Sutton Showplace Realty Chilliwack

B.C. real estate board urges feds to revisit mortgage stress test

Stress test reducing people’s purchasing power by as much as 20 per cent, BCREA says...

B.C.’s real estate board is joining the chorus of voices across the country urging the federal government to revisit the year-old stress test rule that has been criticized for eroding housing affordability for many.

The B-20 stress test was implemented in January 2018 to help cool down the red-hot housing market in Canada’s major cities. Would-be homebuyers now have to qualify at an interest rate two percentage points above the rate they negotiate with the bank.

The BC Real Estate Association says the test is reducing people’s purchasing power by as much as 20 per cent.

“We would like to see a review and reconsideration of the current mortgage underwriting ‘stress test,’ as well as a return to 30-year amortizations for federally insured mortgages,” chief executive officer Darlene Hyde said in a news release Tuesday.

“These rules must be changed now before B.C. families are left further behind.”

The association has pointed to the stress test as the leading reason behind dipping home sales since last summer. Sales have dropped 45 per cent in Vancouver since 2018, compared to 18 per cent nationally.

The average price of homes in the Lower Mainland nearly doubled, while it remained mostly steady across the province, up just 0.5 per cent to $716,100, in the first quarter of 2019.

Housing analysts predicted in late December that prices in the Lower Mainland will rise by just 0.6 per cent this year, compared to five per cent in 2018. If true, a home will cost an average of $1.3 million by the end of the year.

Hyde said the test is having a negative impact on other facets of the economy, such as retail spending, as home equity declines in line with decreasing benchmark prices.

The Canadian Home Builders’ Association has also said the mortgage rules may force builders to pull back, leading to slower growth of the housing stock and yet another supply crunch and higher prices down the road.


Article from The Progress: https://www.theprogress.com/news/b-c-real-estate-board-urges-feds-to-revisit-mortgage-stress-test/?fbclid=IwAR23SZe11mB1Y2I1N9SqdsjuPP-_KPnEM-aGnieyZpR_1c0VcVttFaXYng8


OPEN HOUSES

08 March 2019
Sutton Showplace Realty Chilliwack

Our agents are hosting a number of OPEN HOUSES this weekend. Visit our Facebook Page for a list!