A new report by Zoocasa shows most buyers in BC don’t earn enough to afford the average home, and 16 out of 20 markets studied in the province were deemed to be unaffordable: https://globalnews.ca/news/4643028/vancouver-least-affordable-city-b-c/amp/?__twitter_impression=true&fbclid=IwAR3BHXJQmKTnUEnWnwPWU-JbjiDMQHYKsaBH1FDg7evlflVmI6H6HjnQL-4
Credit Karma buys UK credit scoring platform from TransUnion in first expansion beyond North America: https://www.cnbc.com/2018/11/05/credit-karma-buys-transunion-owned-noddle-to-expand-into-the-uk.html?fbclid=IwAR1iPa2gyRpFlMWRSScREApUoqaUq4L5lDl9lBQCRfFKiB0He0eACvL0uqY
What we need more than anything, is to build homes for less, not more.
New home costs are based on many factors, including code changes, product prices, land prices, interest rates and increasing wages for necessary trades. The speculation tax will not directly make any of these cheaper, which means new homes can’t and won’t be less expensive.
There are warnings there might be a global recession on the horizon in the next 12-24 months. Canada has the ‘capacity’ to handle a recession despite continued deficit advises Finance Minister Bill Morneau
The next scheduled date for announcing the overnight rate target is December 5, 2018.
Amendments to the speculation tax legislation announced Thursday in Victoria, include decreasing the tax on Canadians from 1% to 0.5% to match rate for British Columbians:
The newly named “speculation and vacancy tax” will apply to those who own second and vacant homes in applicable areas of B.C. as of December 31, the provincial government announced October 16.
Although a lull in the residential sector is expected in August, last month showed a particularly sluggish market, as the latest Real Estate Board of Greater Vancouver data reveals.
This slowing of sales is combining with a rise in active listings to give a much more balanced market for buyers than was seen in the past few years. However, it varies by property type, with a market favouring buyers at 9.2% in the detached home sector, townhomes just creeping into a balanced market at 19.4%, and condos still in a seller’s market at 26.6%.
Phil Moore, REBGV president, said, “Home buyers have been less active in recent months and we’re beginning to see prices edge down for all housing types as a result. Buyers today have more listings to choose from and face less competition than we’ve seen in our market in recent years.”
Home prices have been sliding since May this year, although they remain a little higher than a year ago. The composite benchmark price for all home types in Metro Vancouver is currently $1,083,400, which is 4.1% more than in August 2017 but a 1.9% decrease since May.
As ever, markets vary wildly depending on both the home type and area – and for buyers looking to get into a detached home, the market is certainly improving. There were just 567 sales of single-family homes in the region in August, a 37.1% decrease from the 901 detached sales recorded in August 2017.
Detached houses are the only property type to see benchmark prices now standing at lower than one year ago. The benchmark price for detached properties is $1,561,000, which is a 3.1% decrease from August 2017.
Again, though, it also depends where you are.
Canadian housing market watchers beware: An interest rate hike in October is almost a sure thing…
“With demand slowing down and prices staying put, both buyers and sellers can expect to see an easing of competition with less multiple offer situations,” said John Barbisan, President of the Board. “Right now, effective pricing is key and will be the determining factor for a successful transaction.”