| MTD | February | |
| 2012 | 2011 | |
| Net Unconditional Sales: | 311 | 488 |
| New Listings: | 818 | 1,276 |
| Active Listings: | 3,676 | 3,714 |
View Tony's video report for the week here
Provincial changes in HST
Showing posts with label property. Show all posts
Showing posts with label property. Show all posts
Monday, 20 February 2012
2012 Real Estate stats month to date Feb 20
View Tony's video report for the week here
Provincial changes in HST
Sunday, 22 January 2012
2.99% interest rate. How much lower can it get?
http://www.vancouversun.com/business/lock+Pondering+merits+rate+financing/6025780/story.html
In 1991, my very first clients secured an excellent rate of 13.5%. Over the years, I've heard economists, consumers and financial experts say "it can't get any lower" when rates dropped past 7%, 6%, 5% and even the 4% in the not to distant past.
There are some who believe that high inventory, low rates and uncertain global economy will translate to plummeting prices but Victoria market fundamentals have always proven those to be incorrect assumptions.
I'll never forget a gentleman I met about 10 years ago: he wanted to sell his house because he felt Victoria prices would drop 50% in the next 6 months. Another agent sold his house and he ended up in the rental market only to watch prices DOUBLE in the 5 year span of 2002-2007. He effectively removed himself from an upward moving market and had to repurchase at a drastically higher price. I would call that a massive error- the economists and opinons he believed in betrayed him!
Last night I had a chat with Ken Strattford, www.businessvictoria.net who mentioned an article last week written by an economist in Florida who was quoted saying Victoria Real Estate prices will drop 60-70% in the next 12 months. What????? I'm not sure where he's getting this idea: we have the lowest vacancy rate in Canada, strong annual net migration of 3500 or so persons, and have a diverse economy including Government, Tourism, Military, Universities, Lifestyle (weather) and a growing Technology sector.
I need to find this Floridian economist and invite him to a game of blackjack. I may be totally unskilled at gambling but with a guestimate like his I'd stand to make some money!
Tuesday, 17 January 2012
Friday, 13 January 2012
Tuesday, 10 January 2012
ASSESSED VALUE: TRUTH OR FICTION?
Whenever dramatic changes occur in our Real Estate Market, one of the most hotly debated topics among consumers and Real Estate professionals is the applicability of a property’s Assessed Value (referred to as ‘AV’ in this article) relative to pricing in the open market.
The double-standard relating to AV is just amazing. People want their AV to be as low as possible while living in their home, the idea being that lower Assessment means lower property taxes (FYI mill rates determine this, not necessarily the AV). When they want to sell, they want their AV to be high as it reflects well on their asking price.
Human nature has it that a consumer generally wants to sell for higher than AV but come time for that exact same person to purchase they want to buy below Assessed Value. We hear arguments daily from agents commenting on pricing as it relates to AV, usually at the time an offer is being presented. “Homes in this area are all selling below AV”, said an agent to me recently. Strange, I couldn’t help but notice her own listing in the area was listed $120,000 above AV! When confronted about this discrepancy, her defense was “…the house has been totally renovated…”.
Therein lies the true issue with using Assessed Value to determine pricing. When was the last time an Assessor actually visited the property noting all of the upgrades and value enhancements to the house? Virtually all (at least 90%) of the homeowners I ask have tell me they’ve never had anyone from the British Columbia Assessment Authority (BCAA) through their home. One client had owned their house for 42 years and never once had such a visit! So how is the AV established?
Generally, BCAA takes the last sale price of the property and adjusts annually based on increases or decreases in the marketplace. Permits taken out for renovations at the Municipality are also accounted for.
Problem is, many homes have had cosmetic upgrades and redecorations which would not be known to the BCAA since they neither have access to a permit nor have visited the property. The ensuing effect is that Assessed Values are all over the map, being higher or lower than eventual Sale Price with little or no pattern or justification.
As a Home Buyer, would you pay a Seller a price based on AV? Of course not. You would survey recent sales history in the area to determine a true market value. Market Value is what consumers are willing to pay for properties at a given time.
The bottom line is that the Assessed Value is useful for Municipalities to fairly determine annual Property Taxes but mean little, if anything, to a Buyer or knowledgeable Agent at the time of purchase.
Lovely Gordon Head Townhome- $589,900
Perfect family townhouse just around the corner from UVIC, schools and close to shopping and amenities. Quality built in 2004 and well kept. Call us for more info at 250-370-7788 or info@tonyjoe.ca. A sound investment with rental ability as well!
Media link here
Media link here
Monday, 9 January 2012
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