April 2008 MLS Stats

April MLS Statistics:

The number of residential units sold in B.C. on the Multiple Listing Service® (MLS®) declined 11% in April compared to the same month last year, with 8,623 units sold. Residential sales dollar volume reached $4.1 billion this month, a 1.4% drop compared to the same month last year, while the average residential home price reached $478,044, an increase of 10.7% compared to April 2007.

Greater Vancouver: The number of residential units sold in April reached 3,308, a drop of 5% compared to the same month last year, while dollar volumes increased 3.6% to $2 billion. The average residential home price reached $615,304 this month, an increase of 9% compared to April of last year.

Fraser Valley: The number of units sold in April declined 0.5% compared to the same month last year with 1,687 units sold. Dollar volumes increased 2.3% to $740.9 million however, while the average residential home price increased 2.7% compared to April of last year reaching $439,188.

Chilliwack: April sales declined 11% to 267 units, while dollar volumes reached $87 million, a 0.4% drop compared to the same month last year. The average residential home price continued to climb in April reaching $325,824, an 11.9% increase compared to April of last year.

Victoria: Sales in April reached 730 units, a 14.2% decline compared to the same month last year. Dollar volumes also dropped 10.4% to $361 million, while the average residential home price reached $494,204, a 4.5% increase compared to April of last year.

Vancouver Island: The number of residential units sold in April reached 824, a decline of 11.8% compared to the same month last year. Dollar volumes declined 1.3% reaching $287.7 million, while the average residential home price rose 11.9% to $349,106.

Okanagan (including South Okanagan): The Okanagan and South Okanagan markets recorded 857 units sold in April, a decrease of 26.2% compared to April of last year, while dollar volumes declined 14.1% to $360 million.

Kamloops: Dollar volumes dropped 23.3% compared to the same month last year reaching $79.8 million in April. The number of sales dropped 35.3% with 249 units sold, while the average residential home price jumped 18.6% compared to April of last year reaching $320,608.

BC Northern: Residential sales continued to decline in April with 399 units sold, a drop of 13.6% compared to April of last year. Dollar volumes increased 3.5% to $90.2 million, while the average residential home price recorded a 19.9% increase reaching $226,094.

Kootenay: The number of residential units sold in April reached 227, a 33.4% drop compared to the same month last year. Dollar volumes also declined 24.5% reaching $64.9 million, while the average residential home price increased 13.4% compared to April of last year hitting $285,944.

Bank of Canada Drops Rates By .50%

April 22, 2007 - Bank of Canada drops the overnight rate by .50%.

None of the lenders have reacted by lowering their mortgage rates yet but as soon as I see somes changes by the mortgage lenders I'll post the mortgage rate updates.

Here is the link to the Bank of Canada press release regarding the rate drop.

This is the best time to be pre-approved for a mortgage that we've seen in a long time. Give me a call at 604-764-6336.

Interest Rates Heading Lower? TD Securities Thinks So.

April 10 (Bloomberg) -- Canada's February trade surplus widened to the largest in nine months, led by increased exports of passenger cars and energy. The surplus widened to C$4.94 billion from a revised C$2.78 billion in January, Statistics Canada said today in Ottawa. Exports rose 3.8 percent, the fastest in 11 months, as energy sales abroad rose to a record.

Canada, the world's eighth-biggest economy, is benefiting from high demand for commodities such as oil and metals, helping the country ride out a slump in manufacturing. Still, the outlook for exports is likely to worsen in future months as the U.S. economic slowdown crimps demand for Canadian products, said Jacqui Douglas, an economist at TD Securities in Toronto.

``I don't think the Bank of Canada is expecting this to continue,'' Douglas said of the widening surplus. ``The risk is that exports turn down sharply over the next few months.'' The central bank cut interest rates by half a point for the first time since 2001 on March 4, citing ``intensifying'' signs of a decline in exports on slower demand from the U.S. and the high Canadian currency.

TD Securities, a division of Toronto-Dominion Bank, expects the central bank to lower interest rates 150 basis points to 2 percent by July, starting with a 50 basis point reduction at the next announcement on April 22.

TOP 5 TIPS FOR FIRST-TIME BUYERS

TOP 5 TIPS FOR FIRST-TIME BUYERS

1. Don't shop on an empty stomach: Experts (like me) recommend getting pre-approved for the biggest mortgage you can comfortably afford before you start looking at homes. That way you won't be disappointed when you find out you can't afford that dream home you've set your heart on.

2. Investigate your location: Before you buy, check out local schools, recreational opportunities, amenities and arts and culture. These things often get overlooked in the quest for an easy commute.

3. Practise the commute to work: Before signing anything, try actually getting up early in the morning and doing the commute to work a few times so you'll know how long it really takes.

4. Do your homework: Research government programs that assist first-time home buyers such as the property transfer tax credit or the RSP Home Buyers Plan, as well as the developer's project history in the case of new and nearly new homes.

5. Take advantage of low down-payment mortgages: Experts say even 0 and 5 per cent-down mortgages are a good move in this market because home values are appreciating faster than people can save for bigger down payments.

I would be happy to help answer any questions you may have if you're a first time home buyer or would like to be pre-approved for a mortgage. I can be contacted at 604-764-6336 or via email brent@globalmortgagecorp.net.

Lower Mainland Free First-Time Home Buyers Seminar

Lower Mainland Free First-Time Home Buyers Seminar

With home values still rising, Vancouver-area young people are eager to purchase their first homes, but many need help to de-mystify the process. They have lots of questions. How can I be safe purchasing a condo before construction starts? What location is best? What type of home is best matched to my needs and financial resources? What are the mortgage options? What are the legal considerations? How do I benefit from builder licensing and mandatory home warranties?

These and other key questions will be answered by a panel of housing experts at the 14th Annual Seminar for First-time Home Buyers, presented by the Greater Vancouver Home Builders' Association (GVHBA) on Tuesday, April 8 from 7 p.m. to 9 p.m. in the Guildford Sheraton Hotel Ballroom, 15269 104 Avenue, Surrey.

Admission to the popular seminar is free thanks to the sponsorships by TheVancouver Sun, The Province, Homeowner Protection Office, Canada Mortgage & Housing Corporation, Real Estate Board of Greater Vancouver, Genworth Financial Canada, TD Canada Trust, Shaw Cablesystems, CKNW, Rock 101, AM 730 and 99.3 the FOX.

Speakers are Robyn Adamache, senior market analyst, Canada Mortgage & Housing Corporation; Ken Cameron, chief executive officer, Homeowner Protection Office; Narrinder Dhanoya-Bhangu, regional vice president, Genworth Financial Canada; Bill Niblett, regional sales manager, TD Canada Trust; Deborah Spicer, director, Real Estate Board of Greater Vancouver; Ralph Archibald, senior vice president, Polygon Homes; and Adnan Habib, managing partner, Baker Newby Barristers and Solicitors. GVHBA Chief Executive Officer Peter Simpson will be the seminar moderator.

"Our experts will help first-time buyers complete their homework by investigating all available options and issues before they take that crucial first step onto the property ladder,” said Simpson.

"More than 800 people attended last year’s seminar and, because real estate is still a hot topic, including the pre-construction buying process for condominiums, we expect a similar attendance this year. Doors open at 6 p.m., allowing attendees ample time to view displays of new homes, financial choices, warranties and other housing-related products and services," said Simpson.

My Mortgage BC.com note: I've spoken to people that have attended this event and the past and have said it was very informative. We are mortgage financing specialists with the experience to not only walk you through the home buying process from the beginning to the end but will also ensure you get the best mortgage rate to ensure that you save money (often thousands). Please give us a call at 604-764-6336 if you have any questions about obtaining a mortgage or the home buying process.

Pre-registration is required. Call 604-588-5036 from 8:30 a.m. to 5 p.m. Monday to Friday. Registrations will also be taken by answering machine at the same phone number on weekends.

Mortgage Rates Coming Down?

Helmut Pastrick is the chief economist for BC Central Credit Union. Helmut expects that mortgage rates will continue to decline in 2008 and 2009. "Most of the decline in 2008 will be in variable-rate mortgages, while in 2009 fixed-term mortgage rates will drop the most," he said.

"The Bank of Canada cut its target rate by 50 basis points to 3.50% on March 4, bringing the cumulative reduction in rates to 100 bps since the Bank started easing last December. Another rate cut in April is practically guaranteed and another in June is highly likely. Further rate cuts are possible, but at some point the economic news and outlook will begin to improve. That will probably play out in the second half of 2008. There is considerable monetary and fiscal stimulus in the U.S. pipeline and some in Canada as well. The Bank is in a holding pattern until mid-2009, when it will begin returning the target rate to levels appropriate to evolving higher economic growth. Longer-term bond yields will climb higher as the economic news and outlook improves in 2009. However, this will not translate into higher fixed mortgage rates, since the cost of funds will decline when credit markets return to a more normal state and the current abnormally high risk spreads narrow."

Home Sales Slip in February

Home Sales Slip in February

Vancouver, BC – March 17, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC rose 4.5 per cent to $3.26 billion in February, compared to the same month in 2007. Residential unit sales dipped 9.8 per cent to 6,822 units during the same period. The average MLS® residential price in the province reached $478,172 in January, up 15.8 per cent from February 2007.

“BC home sales fell for the second consecutive month, marking the slowest start to a year since 2003,” said Cameron Muir, BCREA Chief Economist. “While it’s still too early to call a trend, fewer home sales and an increase in active listings may be pulling the BC housing market toward balanced conditions.”

“Strong employment and wage gains over the last year continue to underpin housing demand,” said Muir. The number of unit sales recorded in the month was 13 per cent above the February average from 1998 to 2007. “However, continued erosion in housing affordability may be taking a toll on the ability-to-pay for some buyers.”

Additionally, a weak US economy and lower demand for BC lumber is negatively impacting BC’s forestry industries and local resource communities, while current economic volatility may also be impacting the confidence for some would-be buyers.

My Mortgage BC.com note: This could be good news for anyone looking to purchase a home in BC. Lower sales should create some buying opportunities.