The following materials are being featured on AM1320 every Saturday between 5pm & 6pm.
Date: August 16th, 2008
Is it a good idea to sell and rent?
NO! NO! NO! However, at the end of the day, it's how much risk you are willing to take. Remember, "timing the market" is for speculators but for home owner's it's "time in the market" that counts.
Read more about "Is it a good idea to sell and rent"?
Date: August 9th, 2008
Perfect Market for 3 groups of Buyers
I believe the audience must have heard of the real estate report from the real estate board on the media. You can read the whole report at http://www.tinamak.com/VancouverArchives.ubr. In my opinion, this market is perfect for 3 types of buyers:
Read more about Perfect Market for 3 Groups of Buyers
Date: August 2nd, 2008
US Housing Market Recovery Bill:
July 31st, 2008, President Bush passed a the most welcomed new housing legislation aimed at ending the current cyclical downturn in the housing industry. You can go to my website to read the article in details http://rismedia.com/wp/2008-07-30/president-bush-signs-landmark-housing-bill-into-law/. This legislation is to help Americans avoid foreclosure, cracking down on predatory lending and providing generous tax incentives to encourage home ownership.
Read more about US new housnig legislation
Date: July 26, 2008
Back to Basics!
Back to basic investment formula which is if you are able to put 25% down payment & the rent covers 75% financing then that qualifies as a good long term investment. Remember, the mortgage is being paid off, giving you approximately 4%-5% return on your down payment which is greater than you putting your money in the term deposit. Another formula is if the property produces a net rental income equal to a minimum of whatever the prime rate is ie 4.75%, of the purchase price, then that's a good long term investment property. Example: purchase price $500,000 yearly net income would have to equal or be greater than $25,000 or $2,100 per month.
Read more about Back to Basics investment formula
Date: July 19, 2008
ARE YOU THE VICTIM OF THE PROPAGANDA?
The state of the economy and greediness are two major elements that determined whether home owner will face financial hardship.
For there to be a rise in delinquencies in Canada, we probably have to wait for the economy to really weaken, the unemployment rate to rise sharply and then people have a harder time.
Read more to find out if Canada is facing hardship
Date: June 28th, 2008
How do I take advantage of today's market?
Buy when the market is less active and stop being a procrastinator. Nobody can time the peak market to sell nor the lowest market to buy. Traditionally, no matter it is stock or real estate market, buyers tend to buy when market goes up but hold off and watch when market is less active. I'm sure all the lines up at all the pre-sale project sites in the past few years are still fresh in our mind. Most likely you yourself or one of your friends were one of them too.
One thing I don't get is Sellers tend to sell when everybody is selling which means lots of competition, and possibly less profits for them but hold off when the market needs inventory which is also the time they make the most profit. This type of behavior happens during every single cycle. This also mean "Buyer Opportunity"! Get off the fence. GREAT TIME TO BUY!
Read more about How to take advantage of today's market
Date: June 21th, 2008
Date: June 14th, 2008
Is Vancouver housing price really that out of reach comparing to the rest of the world?
According to the May statistic provided by the real estate board of Greater Vancouver, which everybody can read on my website at www.TinaMak.com under Global Market Update page, once again, it shows the sales volume is down around 30% comparing to May, 2007 but price in average is still up approx. 8% comparing to last May. With the continuous increasing inventories, we are happy to hear that we are now in a "Buyer Friendly Market".
Read more about Vancouver houseing price vs the rest of the world
Date: June 7th, 2008
Date: May 17th, 2008
Should you buy or should you wait?
Well, recently almost everybody I spoke to talk about housing prices is dropping across British.Columbia. Here's the facts provided by the MLS and once again, it shows only the sales volumn has gone down but average home price is still higher than same time last year. Be the judge yourself after reading the following statistic. So, should you buy or should you wait? Should you consider upgrading? Feel free to contact Tina at 604-412-5860 or tinamak@tinamak.com to discuss further on our balance market.
March MLS Statistics: The number of residential units sold in B.C. on the Multiple Listing Service® (MLS®) declined 22.4% in March, with 7,319 units sold. Residential sales dollar volume reached $3.54 billion this month, a 12.6% drop compared to the same month last year, while the average residential home price reached $483,286, and increase of 12.6% compared to March 2007.
Date: April 26th, 2008
Who is renting in Vancouver and where to advertise?
Things to be aware of if you rent your property to these new comers:
In most cases, these potential tenants do not have any credit in Canada. Credit check companies are able to do searches for some countries but it could be a challenge to do it for some Asian countries. If that's the case, the best you can do is to ask for the following documents:
Read more about Vancouver Rental trends
Date: April 12th, 2008
Is the Vancouver Market active or slow?
Buyer might shift from "unmitigated optimism" to "Caution" given what has happened in the US. Greater Vancouver Multiple listings in March were up 4% compared to March 2007 with benchmark price still 12% up from last year. Fraser Valley listing inventories hit a 10 years high in March 2008, 27% above March 2007 & the sales is 25% decline from the same month a year ago. However, benchmark price is still 8% above last year.
Read the Vancouver Market Update
April 12th, 2008
Date: Feb. 23rd, 2008
To know more about Kitchener-Waterloo market condition, click http://www.tinamak.com/Kitchener-WaterlooArchives.ubr for details.
Date: Feb. 16th, 2008
Difference between US and Canada's housing market & price difference if you wish to upgrade in the current market.
As much as the US situation shakes the world and their economic downturn is becoming one of the most severe in decades. Cameron Muir, BC Real Estate Association Chief Economist remains optimistic about our healthy housing market which has a great deal to do with the confidence of those who live, work & raise families in our communities. Barring any unexpected shocks, home sales should remain strong in 2008.
Home owners and home buyers need to understand Canada's mortgage lending standards and practices, are rigorous & don't encompass sub-prime loans or loans for more than the amount of the home value. Here's a sub-prime mortgages example:
Home price:$450,000
Mortgage loan: $450,000 (25 year amortization)
Teaser rate for first 2 years: 3% Rate after 2 years: 11%
Monthly pmt: $2,134 Pmt jumps to: $4,411
On Jan 29th, 2008, US introduced a House Bill to temporarily froze the interest rates. If passed, this hopefully will help some troubled home owner to refinance and potentially keep their homes. The hardest housing prices declined are in California, Florida and Nevada. All the oil related areas remain steady and they expect to create half a million jobs by the end of 2008.
Positive affect to our Canadian housing market:
There is no doubt that we could feel the chill coming from south of the border. The Bank of Canada will have little choice but to join the rate cut party. Look for 50 basis points cut in the next rate announcement.
Low interest rate, increased inventory, slower sale BUT benchmark price are still rising due to the materials and labour cost keeps going up. To read about all the statistic details, visit my National Real Estate Information Centre page. Generally speaking, if you wish to upgrade, I am using the "January" benchmark price in a few poopular areas in Metro Vancouver as an example, so home buyer would realise the price difference between the upgrades.
Apartment Attached Detached
Burnaby: $338,885 +32% $449,677 +63% $736,003
Vancouver East: $317,117 +53% $485,221 +37% $665,328
Vancouver West: $490,101 +42% $698,836 +200% $1,405,945
Richmond: $307,532 +47% $452,420 +59% $721,193
Coquitlam: $291,946 +44% $421,057 +56% $659,601
If you wish to upgrades across city, you might need to prepare to pay more or save some depending on whether you go west or east!
Should you wish to relocate within Canada or globally, Tina Mak can connect you with the experienced agents in the area you wish to move to. Contact Tina Mak for further details at 604-412-5860 or email at tinamak@tinamak.com
Date: Feb. 2nd, 2008
How B.C. housing prices rank among 6 English speaking countries?
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Date: January 26th, 2008
Take a look at our Vancouver real estate market, it has been going up since the stock market tumbled in and
Are you interested to increase your net worth? Well, first of all, how do we know how much net worth one supposed to
Multiply your age, times your pretax annual household income from all sources excluding inheritances. Divide by ten.
ie. if your pretax income is $100,000 multiply by your age, say 40, then divide by 10 your net worth should be at least
The only way I believe to increase my net worth is to continue investing in real estate. Treat your real estate as your
Date: January 12th, 2008
Vancouver Housing Starts Reach Near Record High in 2007
Preliminary figures from Canada Mortgage and Housing Corporation (CMHC) indicate that the Vancouver Census Metropolitan Area (CMA) ended 2007 with the third highest number of housing starts in 50 years. Driven by a strong apartment/condominium market, the total number of housing starts reached 20,736 in 2007, an eleven percent increase over 2006. Overall, multiple family homes accounted for close to 80 percent of all housing starts in Vancouver CMA.
"With the overall average MLS price of a single detached house over $800,000 in Greater Vancouver, buyers have shifted their expectations towards more affordable higher density style housing," said Richard Sam, Market Analyst with CMHC. "Developers have honed in on this demand and increased the number of new multiple family projects being built. As a consequence, the number of single detached housing starts declined by one quarter compared to last year."
The story was mixed in centres east of Vancouver CMA. Total housing starts in Abbotsford CMA declined ten percent over last year's totals despite a significant increase in single family housing starts. Further east in the Fraser Valley, Chilliwack Census Agglomeration (CA) recorded an eleven percent increase over 2006 figures due to a 50 percent increase in multiple family home starts in the area.
Click here to view the statistics
Date: January 9th, 2008
BC Homebuilders Focus on Denser Housing Forms in 2007
In 2007, new housing construction in British Columbia's urban areas exceeded the 2006 level by 5.5 percent. But while the volume of annual housing starts increased in 2007, the composition of starts by dwelling type changed as well. Multi-family dwellings made up over two thirds of BC housing starts in 2007, up significantly from 2006. At the same time, the proportion of housing starts made up of single detached houses declined.
"In 2007, solid economic fundamentals resulted in continued strong demand for housing in British Columbia," said Carol Frketich CMHC's Regional Economist for the BC Region. "However, high prices for single-detached homes forced some homebuyers to look at denser housing forms, and the development industry responded accordingly. The result was a 14-year high in urban multi-family starts in 2007."
Nationally, housing starts in 2007 are estimated at 229,600, surpassing 2006 starts, and reaching their second highest level in nearly two decades.
Click here to view the statistics
Date: Jan 5th, 2008
The Million Dollar Question
BC housing market had ended on another strong note in 2007. Second highest recorded ever in the Real Estate Board of Greater Vancouver. How long is this going to last? When are the
The ride up has been exciting and yet a little scary. There are lots of speculations even among my colleagues within the industry but bankers are somewhat more conservative as could be expected. When everybody is trying to find the crystal ball and get answers for all the million dollar questions, there are opinions that have been presented to us over and over again, year after year through the media, from CMHC, economists, & the President of the Real Estate Board has said that
CMHC analyst, Robya Adamache’s forecasts 35,000 new residents and the creation of 33,000 new jobs adding its job growth and population growth to support the demands for 2008. For that reason, she feels that there is still room for the price to rise. As much as some might worry about the
Watch out for the “Premier residential development” site in
Real estate cycles DO happen but with no more residential zoning to be approved in downtown
I strongly believe buyer should take the opportunity of our current “leveled balanced market” to get yourselves a home sweet home instead of betting the market is going down in 2008.
Date: December 1, 2007
Last week we talked about general market info in BC. Remember we mentioned about Chilliwack is the only market that is not doing as strong as the other area. I understand most Asian will not consider living in Chilliwack however, from the investment point of view, it might not be a bad place to consider. Chilliwack is a fast-growing area, has great infrastructure, a new recreation centre, a regional hospital, near full employment, low rental vacancy rates and a new RCMP training campus. Average price of a detached house in Chilliwack was $362,000 in October, compared to $517,000 in the rest of Fraser Valley, and more than $730,000 in Greater Vancouver. Townhomes are popular for an average price of $262,315, up a startling 22% from a year ago. There's new project coming out for sale next year at $183 per s/f offering 3 BR, 1,418 sf from $259,900. Lots of local resident is waiting for it to start selling.
If you don't want to go to Chilliwack, you might want to check out Abbotsford. When Latitude, a 80 new condos building launched a couple of weeks ago sold out in 2 hours at prices from the low $200,000 range. Abbotsford expected to be one of the hottest construction zones in the province in 2008. It expected to see a 17% increase in multi-family starts next year. The re-sale detached house averaged at $400,000 & according to CMHC, it will rise approx.10% in 2008.
The new CMHC rental property product has opened the doors to wealth creation via real estate. For the 1st time, buyer can attain 100% insured mortgage financing on a rental property. If you were on the fence before, this might just put yuou over. For investors who already own rental properties, there is the additional benefit of refinancingyour rental purchase up to 95%. Newcomers to Canada, self-employed borrowers and also corporate borrowers are all eligible. Be aware buyer's good credit will be a determining factor in this program. So, pls speak to your banker or mortgage broker for further clarification.
Instead of buying where your friends are telling u to buy, you might want to do some research yourself whether what suitable for ur friend would be right for you. If you want to learn more about investing in BC, you can book an appt with Tina Mak at 604-412-5860 to go through your investment plan or visit Tina's National Real Estate information Centre at www.TinaMak.com under Market Update.
Date: November 24, 2007
Information from CMHC.
September MLS Statistics:
In spite of a North America media focus on a credit crunch arising out of US subprime uncertainty, the overall BC housing market is strong supported by record low unemployment, strong job growth and positive migration. BC homebuyers stepped further into homeownership as most major centres recorded year over year sales increases for the month of September. Furthermore, strong wage gains and still relatively favourable mortgage rates have kept total average price on the rise. Home sales and related residential dollar volumes arising from home sales in BC are expected to remain solid to the end of the year. We will all watch with interest as to the extent of the downturn in the US housing market and whether a Canadian dollar at parity with the US will impact Canada's commercial activity from US consumers.
Please note that the statistics below compare the respective month in 2007 against the same month in 2006.
Greater Vancouver: September sales continued to be higher than the same month last year, unit sales were up 10% (2,852 in 2007 vs. 2,583 in 2006) and dollar volumes up 22% ($1.66 billion in 2007 vs. $1.36 billion in 2006).
Fraser Valley: Sales in September edged up slightly when compared to 2006, dollar volumes of $540 million were 7% higher than 2006 while unit volumes (1,262) were 2% higher than the same period last year.
Chilliwack: September saw a decrease in dollar volumes of 5% compared to last year ($68 million in 2007 vs. $72 million in 2006) and unit sales decreased 20% (215 in 2007 vs. 268 in 2006)
Victoria: The Victoria market continued to showed strong results in September with unit sales up 6% (583 in 2007 vs. 550 in 2006) and dollar volumes increased to $279 million, up $42 million or 18% from 2006.
Vancouver Island: The rest of the Vancouver Island market outside the Greater Victoria showed gains as well. Unit sales were up 16% (793 in 2007 vs. 684 in 2006) and dollar volumes up 18% ($240 million in 2007 vs. $204 million in 2006),
Okanagan (including South Okanagan): The Okanagan and South Okanagan markets have remained strong with September dollar volumes up 33% ($352 million in 2007 vs. $266 million in 2006) and unit sales 8% higher (867 in 2007 vs. 802 in 2006).
Kamloops: Dollar volumes for Kamloops climbed 22% over last year ($72 million in 2007 vs. $59 million in 2006) while units sales remained level (245 in 2007 vs. 246 in 2006).
BC Northern: Residential sales were lower in September when compared to the same period last year. Unit volumes were down 10% (477 in 2007 vs. 528 in 2006) while dollar volumes increased by 8% ($98 million in 2007 vs. $90 million in 2006).
Kootenay: Dollar value sales in the Kootenay's continued to be substantially higher in September in comparison to the same month in 2006. Unit volumes increased by 51% (317 in 2007 vs. 210 in 2006), while dollar volumes were up by 122% ($97 million in 2007 vs. $44 million in 2006).
Date: November 2, 2007
Calgary Market Update
Long-term Buying
The market this last month has been long awaited for those wishing to move to Calgary or to move within Calgary. The reason is that supply is very good, giving buyers a break from the recent past where tight supply drew competition on almost every property that was listed. Supply has continued to climb to a new high at the end of September with 9,447 listings.
Graph #1: Supply
Supply Analysis: Generally there are fewer moves in the fall, especially after school starts. The Supply graph shows an unusual upward slope for this time of year when we would expect it to more flat. I wrote about the reasons for this increase in inventory in last month's newsletter, but briefly there was a financial markets fallout that started in July. Note that this year's supply parallels last year's; however, this was a recovery from a record-low inventory. I predict that inventory will begin to drop significantly after end of October. High inventory indicates buying opportunity.
Graph #2: Demand
Demand, represented by the Number of Sales Graph above, has moved downward as expected with the annual cycle. There is a drop of 13% over last year (September 2006). The lower demand is likely a result of slowing numbers of people coming to Calgary in comparison to the previous two years' rush.
Graph #3 - Number of Sales vs. Avg. Sale Price
Average Sale Price peaked in mid-June and now at the end of September we have seen the average price come down about 5.2% overall, to the same level as average prices in March this year.
SUMMARY: The fall and winter to the very early new year generally represent the best selection of property, and a good time to buy within the annual market cycle. Last year at the end of September I noted a buying opportunity as the supply reached a normal level. This year I see the same timing opportunity only with better selection. It is also now easier to transfer to a new home within Calgary. Calgary, as Canada's Oil and Gas capital city will continue growth. The future remains bright as the natural assets of Alberta are in demand around the world.
Date: Oct. 27th, 2007
Edmonton Market Update
The market in Edmonton is slow. It takes 43 days to sell a listing now compare to 23 days in 2006. It's currently over 10,000 listings compare to 1200 in 2006 in MLS system. Price has rowed back between 7% & 8 % compare to May 2007. New home builder is throwing in new car - Toyota and all GST rebate to attract buyers. It will probably last till the end of 2007. There were 1100 sales in Sept 2007 compare to 2000 sales in 2006.
For the condo market in Edmonton, Hi-rise is more of the life style vs price point. The high concentration of hi-rise condos only locate in downtown area with age & pets by-law restriction. The empty nester, single and young professional buyers are the target audience. Price range between $200's & $600's. Less than 10% sales are over $500,000. We do have a lot of inventeory due to the lately conversion from rental. Lots of the non concrete construction walk up 4 storeys wood frame buildings are now available. The town house that was built in the 70's and 80's (row house) are also popular because of the price range between $250,000 & $320,000 with less bylaw restriction.
The immigration market is a lot less than 15 yr ago however, the Mainland Chinese buyers are still dominating the market. They are the graduates from the University and the professional immigrants landed with professi
Information provided by
Wilson Lam
Coldwell Banker Panda Realty
Date: Oct. 3rd, 2007
News Release from Real Estate Board of Greater Vancouver
Buyers fuel continued growth in Greater Vancouver housing market
Vancouver, B.C. October 2, 2007 - The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales of detached, attached and apartment properties reached 2,776 units in September 2007, an increase of 10.2% compared to 2,519 sales in September 2006.
The inventory of residential properties listed for sale remains stable, with an overall year-to-date increase of 4.1% to 45,054 residential units listed between January and September 2007, from 43,264 for the same period in 2006. The number of new listings increased 8.2% to 4770 in September from 4408 in August of this year.
"There is no single demographic of buyers. They include first-time buyers, people choosing to take advantage of current home equity to "move up" in the market, as well as people coming into Greater VAncouver from other areas. Our data indicates that the majority are purchasing a principal residence," says REBGV president Brian Naphtali.
"There's a great deal of choice in the market for a range of consumers today," explains Naphtali. "While 45% of homes for sale are priced at below $500,000, there are also a significant number - 37%- listed in the $500,000 to $1-million range. Of the active listing inventory of more than 11,000 residential properties, approximately 18% are priced above $1-million."
According to Multiple Listings Service (MLS) data, sales of apartment properties increased by 7.7% to 1,177 sales in September 2007 compared to 1,093 sales in September 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink Housing Price Index, is $371,718 up 11.1% from one year ago.
Sales of attached properties increased by 27.6% in September 2007 to 500 sales, compared to 392 sales in September 2006. The benchmark price of an attached unit is $452,944, up 10% from a year ago.
Sales of detached properties increased by 6.3% in September 2007 to 1,099 sales, compared to 1,034 sales in September 2006. The Benchmark price of a detached unit is $737,927 up 11.9% from last year.
Bright spots in Greater Vancouver in September 2007 compared to September 2006:
DETACHED:
Maple Ridge/Pitt Meadows up 11.8%..........(133 units sold, up from 119)
Richmond up 29%.....................................(147 units sold, up from 114)
Vancouver East up 22.9%..........................(172 units sold, up from 140)
New Westminster up 38.1%.......................(29 units sold, up from 21)
ATTACHED:
Burnaby up 38%.................................(69 units sold, up from 50)
Port Moody/Belcarra up 142.9%..........(34 units sold, up from 14)
Richmond up 38.6%............................(115 units sold, up from 83)
Vancouver West up 70.7%...................(70 units sold, up from 41)
APARTMENTS:
New Westminster up 17.4%.................(81 units sold, up from 69)
Port Moddy/Belcarra up 39.1%............(32 units sold, up from 23)
Whistler/Pemberton up 188.9%...........(26 units sold, up from 9)