Vancouver Housing Market Forecast 2018 ⌂ Richmond Burnaby City of Vancouver Surrey Richmond BC

Vancouver Real Estate Market 2018 and 2019

Prices were up and sales were up, and listings are down in the greater Vancouver housing market last year.

GVREB reported that the MLS® HPI composite benchmark price for all residential properties in Metro Vancouver
finished up 15.9% at $1,050,300 compared to December 2016. Home listings rose 44% over 2016, and sales to homes ratios hit a whopping 14% for detached homes, 38.8% for townhomes, and 59.6% for condominiums in greater Vancouver.

While there’s much talk about the depressing effects of Federal increases in interest rates and stress tests, it remains to be seen if it has any impact on the market, since those affected are unlikely to qualify to buy Vancouver’s high home prices anyway.

The December home market sunk by a whopping 28% from November’s totals and this will hardly spur new home development. It’s likely price pressure will return later in 2018. In fact, Phil Soper, President of Royal Lepage brokerage says Royal LePage predicts prices will rise 5% to 6% to $1.3 million on average across all home types in Greater Vancouver.




Just as in the Toronto real estate market, the condo market is where the focus is. That’s due to prices and the fed’s new stress test mortgage rules. With everyone bidding on lower priced condos in both cities, we should see big price increases, especially as borrowers hunt for new mortgage financing. Demand can disappear for a while, but it will return because so many people need a place to live.

Richmond and New Westminster bucked the downward trend with price growth of 2%. Richmond, Squamish, Whistler, Coquitlam, Burnaby and New Westminster also saw gains in apartment/condo prices in December.

December also saw the lowest level of home listings. The 20% decline is scary, making a 2018 housing forecast for Vancouver difficult.

Valiantly, Vancouver home builders are building multi-tenant buildings yet it looks like a losing battle. They issued permits for 263 units for all of Vancouver in October. It’s a market that’s run out of gas but the prices haven’t declined as governments had hoped.

Are you looking for good opportunities for rental income property? Or just wondering when the best time to sell your home in greater Vancouver? Take a look at the best best renovation ideas and plan your selling strategy.




The Vancouver housing market is reflective of a strong BC and Canadian economy and the outlook for spring 2018 is positive too. As the King of unaffordability, Vancouver is suffering from a crushed housing market, big immigration, increased global trade, growing poverty and stagnant wages. The monthly stats send the same message each time.

This same situation exists in the Toronto housing market which is enjoying a stronger fall season as well. In fact, a few are sensing the beginnings of continued housing boom after a weak late winter 2018 season.

The Real Estate Board of Greater Vancouver (REBGV) reported that sales of detached, attached and apartment properties reached 35,993 on the Multiple Listing Service® (MLS®) in 2017, a 9.9% decrease from the 39,943 sales recorded in 2016, and a 15% decrease over the 42,326 residential sales in 2015. — from GVREB 2017 Year Report.




Vancouver remains perhaps the most unaffordable city in North America based on home price vs income. With new mortgage rules coming in 3 weeks, more Vancouverites will find themslves stuck in the rental market which is also not getting any better. Ask any post secondary student about housing.

The sales to listing ratio for the all important condomnium market was an astonishing 68%, up 7% since September. Cheap condos are hot, and going for way beyond what they’re actually worth.

Check out Realtor Steve Saretski’s November report and this key revealing graphic that foretells of 2018 and 2019 markets:

Maple Ridge and Port Coquitlam had big prices increases of 3.8% and 4.2% price growth in apartments. Single family houses in Squamish grew 3% in price this last month.

Share this report on Facebook. Sharing is good. People need more perspective because what’s being done in the Vancouver market is not working.

Given the fate of the Liberals, the NDP government may not be too eager to go the market killing route. However, the new plan being proffered by the Gregor Robertson’s city government, may be the thing I’ve commented on many times – that governments start economic and housing crashes, not the markets themselves.

Robertson is quoted as complaining about Vancouver’s amazing prosperity as “hit us like a ton of bricks.”  Those aren’t the kinds of words investors and homebuyers want to hear.

But should a local mayor be fiddling with strong global and national economic forces? Is he way overmatched, just like Wynne in Ontario?

One outrageous goal for Robertson may be to restrict ownership of Vancouver real estate by non residents. Seriously, in this era of open trade, he is actually considering it. Maybe Robertson will opt out of all trade deals and cross border business too since that just fuels demand for real estate?



It could be BC voters have learned that despite terribly high prices, that the BC economy is more important. And the strong Canadian economic forecast will push house prices higher. The solution is big investment in housing not in meddlesome government actions. When a politician fusses with administrative red tape, he’s telling us a lot.

The Need is for More Housing

Breaking News: PM Justin Trudeau has just announced a program to bring in one million new immigrants over the next 3 years. How many will choose Vancouver?  The influx will almost certainly impact Vancouver’s housing availability. Most newcomers are to come from Asia. Many immigrants are already here as students and there’s no housing for them.



House and Condo Stats in November

Sales in Vancouver were up 7% from September and up 35% from last October. Prices rose .5% over September and  12% over October 2016. Buyers have more million dollar homes (up 14%) at an average price of $1.6 million and a DOM of 41 days. Vancouver condos / townhouses prices 14%) in October. The sales to active listings ratio was an incredible 67% in October. Prices rise when that ratio surpasses 20%.

Experts believe rising mortgage rates and more restrictive stress tests will deflate the market. Fewer middle class earners will be able to qualify. That will put more pressure on the Vancouver rental market which is approaching zero vacancy rate. Incredibly, housing starts are down  and that will put upward pressure on the resale market.

BCREA in its 4th quarter report, forecast home sales might decline 10.4% to 91,700 units in 2018, after an expected 8.8%. A record 112,209 unit sales were recorded in 2016.  But these drops in sales are just drops in financial transactions. Prices of condos and houses aren’t falling.




It would be difficult to rationalize lower prices given a strong, growing economy and a lack of housing in Vancouver.

It’s All About Condos in Vancouver, Burnaby, Surrey, and Richmond

Demand for places to live and for investment properties is being funneled into the Greater Vancouver condominium market.

As of the first half of this year, HPO had received registrations for 1,788 new Vancouver condos, down from 2,488 units at the same time in 2016 — from a report in the Vancouver Sun.

Homes for sale scarcity combined with eager buyers, means demand is being focused on condos, townhouses and apartments. 3043 property sales were recorded in August 2017 which was 2.3% increase over July’s numbers. And it represented a 22% increase over August 2016 sales.




Condo Sales Driving Vancouver’s Market

While sales of detached homes dropped in August 2017 compared to July sales, and compared to August 2016 sales, Vancouver condos are in hot demand.  More than 4200 condos and townhouses were listed for sale in August. The decreased availability and rising prices are putting big pressure on International students studying in Vancouver.  UBC has 6000 students on their housing waitlist. Huge investment opportunity in foreign student housing.

Are you an investor? The August 2017 sales report shows townhouse/condo/apartment prices are rising fastest in Pitt Meadows, Squamish, Port Coquitlam, Burnaby East and Whistler. Mapleridge saw a big increase in apartment prices likely because the average price is only $252,000.

REGBV’s August 2017 report shows home and condo prices are rising. Any home for sale in Metro Vancouver between $350k and $750k are still subject to multiple offers. The big change is in the number of Vancouver area homes for sale which plummeted 19.2% since last month. Overall, the number of properties for sale dropped 4.2% since last month.

Check out the Calgary housing forecast and the Toronto housing Market for comparison.

REBGV President Jill Oudil stated the detached home market has achieved a balanced state and that buyers have more homes to choose from. That may contradict the reality that the volume of homes available for sale has plummeted. The truth might be that there are fewer buyers of homes above $750,000 which comprises most of the homes in Metro Vancouver. It’s a split market like Toronto.

The Federal Government has just raised the prime lending rate to 1% and hinted at further rate increases, and this will likely cool demand for higher end homes. The demand in Vancouver is still present, and the buyer target is condominiums.

Vancouver is host to tens of thousands of foreign students studying here, and they have an impact on condo prices. Currently companies such as CIBT specialize in student housing investment.  They purchase properties such as hotels to fill this big demand in a Vancouver housing market that is near to a zero vacancy rate. Check out the student housing investment opportunity yourself. The forecast here is for more demand.

Vancouver’s Housing Forecast Remains Positive

The last 8 years have been a real awakening for the city of Vancouver and for the rest of BC.  BC is now is perhaps the hottest province economically in Canada. This has spurred tremendous construction, entrepreneurial, and employment opportunities.  The demand for housing speaks for itself.

The BCREA reports that housing starts next year will jump dramatically. However, is 2,000 more units sufficient to quell the overheated market for rentals and buyers?

Screen Capture Courtesy of BCREA

This new tax, good for the BC government, may squash employment growth as Asian buyers look to live and buy elsewhere. Although this is a downer for Vancouver, it’s brightening the forecast for Calgary and theToronto housing market, where new investment is predicted to grow. Judging by the number of people visiting my site looking for info on Toronto, the demand is changing.




Post tax implementation: The average composite price for a Vancouver home was $938,000 in July which is still 33% higher than one year ago. The BC government has its worked cut out for it. The BC provincial government was already collecting $1.6 Billion dollars in taxes and the new tax will create a ridiculous opportunity for government spending in 2017. Do you cheer or jeer?

Here’s a look at the historical price trends in Vancouver contrasted with Toronto pirces. You can see the Toronto real estate forecast here.

The total numbers for July and August of 2017 haven’t been reported but we’d have to guess at $10 Billion for the two months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Metro Vancouver totalled 2,489 in August 2016, a decline of 26 per cent compared to the 3,362 sales in August 2015; 10.2% fewer than the 2,771 sales in August 2014; and 1% less than the 2,514 sales in August 2013. August 2016 sales also represent a 22.8% decline compared to last month’s sales. –  From the latest market report from REBGV on Sept 2, 2016.

The forecast is for fewer sales and perhaps lower prices, yet because of the foreign buyers tax, it might look more precipitous right now than it actually will be.

bcreasales2017f

Regarding Vancouver condos, it looks like demand has slackened for cheaper accommodation and apartments and condos. REGBV said “Sales of apartment properties reached 1,602 in July 2016, a decrease of 7.3 per cent compared to the 1,729 sales in July 2015. The benchmark price of an apartment property increased 27.4 per cent from July 2015 to $510,600.”

BC Economic Outlook

Although employment growth and GDP will moderate, BC residents and homebuyers will have much more disposable income. These facts plus an expected 5.5% rise in retail sales will definitely perk the attention of businesses everywhere.

bcreaeconomy2017f

Running out of Land in Greater Vancouver

BC lower mainland real estate is doing well, in stark contrast with Northern BC which saw its sales volume drop 8% and total sales volume drop by 25% compared to January 2015. It will be much worse in August and September.

The Greater Vancouver area saw its sales volume rise 73% to $2,788,099,000.  That was actually overshadowed by the 101% rise in sales volume in the Fraser Valley year over year in January.  The valley had a growth of $427 Million. Chilliwack and Powell River saw significant gains too, as affordability issues are forcing more BC residents out into the burbs.  The condo market in Vancouver showed a shocking increase of 50% year over year.

What it means for BC is a rare moment of sunshine where it is leading Canada in prosperity. Add that to BC’s more progressive and optimistic culture, and you’ve got an exciting mix. We can only hope it will last for a few more years before the Conservative wet blanket kills the party.

Vancouver Island enjoyed 50% growth in sales volume and the city of Victoria grew in sales to $260 Million in January. The south Okanagan region had a surprising growth of 44% in sales volume as well. It’s hard to argue that the Okanagan has not benefited from real estate and migration.

mapoflowermainland

Yet, this market isn’t the hottest on record for BC, which was even more heated in 2005. Should this non-record high real estate market be snuffed out?

While politicians are jumping to suppress sales in BC, no one can argue that the deluge of real estate investment money is creating unheard of opportunity in Vancouver. The province is drawing migrants from Alberta and Saskatchewan who are looking for jobs at a time when Alberta is facing its biggest crisis ever. The worst hasn’t even hit Alberta yet, as oil sunk to touch $25 a barrel last week.

As far as the shadow flipping controversy is concerned, some believe the privacy issue in transactions will ensure the practice of flipping will continue unabated.  Others suggest the inflow of Chinese funds into BC will be terminated by the Chinese government and price rises  would then abate.

What is Shadow Flipping?

The Vancouver real estate forecast is glowing and is not headed upward, and Vancouver’s economic resilience has been tested by low commodity prices. Still, these good times never last so BC residents should revel in their wealth of opportunity. It’s a good time to be an entrepreneur in Vancouver.




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Are you a Vancouver real estate agent selling condos in Vancouver or detached homes struggling with online exposure? You’ve come to the right place. Have a good look at the best realtor digital marketing program available anywhere.

* BCREA is the professional association for over 19,000 REALTORS® in British Columbia Canada. BCREA focuses on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.

Hotel SEO – Los Angeles San Diego Orlando Miami New York Boston

Hotel SEO – Creating Customers out of Travellers

Whether it’s cheap flights or business class hotel bookings, you know how searchers look hard on Google for the right rates and locations.  

And while expedia, hotels.com, trivago, and airbnb are also well aware of the power of Hotel SEO and have big outreach via social media, there’s plenty of opportunity to build traffic for your hotel or B&B Inn.

Today, it’s all about the customer journey, the experience they have while searching. That search may begin with “cheap hotel rooms” but with excellent search engine optimization and expert content strategy, the path that travel consumer takes can be managed. We an show them a better solution than cheapest hotel rooms, New York, or San Diego hotels.

SEO is just the beginning. Content strategy and content engagement pave the way to hotel bookings and revenue




How much Traffic can Hotel SEO deliver? A lot.

In fact, I doubled a major hotel’s traffic and made a big impact on their bottom line. This was traffic generated via Google, Yahoo, direct visits, and other website referrals. Adding a million new visits per year makes Hotel SEO a respected profession. I’d be delighted to perform SEO for your hotel brand.




I do love travel and hotels are recognized as convenient, safe, and comfortable accommodations. Your SEO specialist should have a passion for destinations. My personal favorites are Banff, San Diego, Costa Rica, Whistler BC, and Florida. Any many more locales await!

And while AirBnB has put a good deal of pressure on the hotel industry, hotels have innovated.  Years ago, hotel marketing communications were formal and narrow thinking. Yet today they’ve opened up to more personal and creative interactions with travellers looking for fun, helpful and engaging content.  There are alternate paths on the hotel customer journey.

AI Solutions for Hotel Marketing

With artificial intelligence marketing software beginning to roll out, the role of Hotel SEO specialists will evolve. The new AI marketing software brings unbelievable insight and power to SEO specialists. Now we can test content for impact, clickthrough conversion rates, and engagement improvement. AI marketing and content personalization software is a godsend to those looking for big improvements.

How to Build Hotel Search Rankings?

Achieving rankings, wide and deep, actually requires a lot of content, ingenuity, and social connectedness.  There is original content and then there’s more content that we might glean from your property databases. Whatever can help us generate rankings and build our relevance to RankBrain and searchers.

The strictness and avoidance of risk that major brands have as their achilles heal, is just one area where your small hotel can exploit. On a local level as well, many hotels won’t play the give and take that high performance SEO takes. So whether it’s local SEO or large scale Hotel SEO, there are niches and opportunities where you can beat the big brands and get solid exposure.

What do You Need to Win your Google Rankings?

  1. bold, confident keyword selection (head and longtail both)
  2. clever, engaging content constructed as a whole on your website
  3. high performing EPIC level visual content
  4. high quality, sharable blogs, pdfs, videos, photos
  5. interesting, engaging blog posts using semantically relevant copy
  6. high quality travel-related stories

Good Content for Engaging Behavior

Yes, as I demonstrate in my new SEO Book, there is no dichotomy between SEO and Content Strategy. You can align and combine to make Google and customers have the same pleasant and and convincing experience. Let’s get your Web presence optimized from top to bottom.




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US Buyers Guide to Canadian Real Estate

Canadian Real Estate Buyers Guide!

Buy or sell when the market is moving. With the Tax Cuts and Jobs Bill, the US economy is surging. Tax cuts mean Americans will have more money, yet the US real estate market isn’t as attractive anymore.

US real estate prices may fall while the US dollar is falling in value.  Investors are looking for better investments, and although the Toronto and Vancouver markets are stagnating at present, they will likely start to surge in June.

With the prices of oil and Canadian interest rates up, the Canadian dollar is rising (now over 81 cents US). That makes Canadian real estate a worthy in investment, particularly as a rental income property in markets where rental units are shrinking.




The fall of the US housing market and Canadian housing market have been heading in opposite directions as we enter into 2018. With the US dollar forecast to fall, Americans may improve their capital gains in the Toronto, Calgary or Vancouver markets.

The 25 cent bonus on the USD/CAD exchange rate at a time when home prices are in a temporary lull could give US property buyers a 30% premium or more when purchasing homes or condos for sale in Canada.




That’s not all. Right now in early 2018, outside of the Vancouver and Toronto regions, in cities such as Edmonton, Calgary, Saskatoon and St Johns, real estate values are very low, giving you even more purchasing power. Experts are suggesting prices will go much higher due the housing crisis. Homes and Condos are in short supply and are bought quickly.

A 25% Bonus:  It’s a very positive environment for investors and well worth learning more about.




If the Canadian economy grows alongside of the US economy, we could see very ideal conditions for buying Canadian homes, condos and cottages, and even rental property during the next 6 months in Canada.

You  may never have such amazing purchasing power for your money again. It’s worth it to contact a realtor here in Canada and inquire about homes for sale.

Prices are rising moderately in Toronto, but there are homes for sale in all regions. You can check now for new homes for sale in Toronto, Mississauga, new homes in Vaughan, new homes in Newmarket, and Bradford just outside of Toronto. Why Toronto?

Do you know anyone looking for a safe investment with a 30% ROI that’s growing? Make sure they see this!




Vancouver has a foreign buyers tax which will erode your return and wealth. Vancouver is discouraging further investment. They don’t want your money. Toronto on the other hand is open to such investment and has a huge number of Toronto condos being constructed.

There are huge housing developments such as in Vaughan and Bradford where thousands of new homes are being built. If you prefer new properties to rent out, as an income investment, this might be a good target for you. The hot ticket for investors right now is rental property investment.

Your Guide to Real Estate Investment Opportunities Here in Canada

The purpose of this guide is to make you aware, and give you some information on how to go about investing in real estate in Canada.

Liberal Foreign Ownership in Canada

Canada is a politically stable, low risk and safe place to invest and it is open to foreign investment. While some provinces have limits on foreign ownership of land, Canada is for the most part wide open to foreign real estate investors. There are no taxes on buying property in Canada, however you will be taxed when you sell. With Canadian mortgage rates so low right, and with not much increase expected, it may be wise to use a Canadian mortgage financing company to purchase your property. However, you could use your own bank.

To understand all the legal requirements necessary to buy property in Canada and obtain mortgage financing, it is wise to contact a licensed Realtor in Canada.




Best Places Buy Homes in Canada

The investment landscape is always changing and certain regions of Canada are amidst different circumstances. Vancouver has just gone through a real estate boom and the local government has imposed taxes to discourage foreign investment.

Toronto is a very hot real estate market and low housing availability and other conditions will keep prices high for sometime. Prices in the greater Vancouver and Toronto regions are high.

Canadian government policies have sought to restrict first time buyers who may lack the financial resources and be carrying too much debt to buy a home. This is a precautionary measure and may impact your attempt to obtain financing from a Canadian bank or mortgage company.

Kelowna BC is not impacted by a foreign buyers tax and is currently in high demand. Calgary and Edmonton’s real estate market is flat and could represent an ideal purchase. However, the oil and gas sector may not return to health for many years. Areas and towns outside of Toronto have not seen the huge price increases, thus may offer better ROI than a condo in downtown Toronto.

Finding a Good Realtor

There are tens of thousands of Realtors to choose from in BC, Alberta and Ontario, however most are inexperienced agents without connections, expertise, market knowledge, or marketing power, and other are near retirement with insufficient motivation to work hard for you. To find a good real estate agent, you’ll want to review their online presence. Do they have at least one website and social pages where you can get to know them? Transparency and marketing effort are important.
You can search for a Canadian realtor line via google.ca, or through realtor.ca, or reco.on.ca. Ontario realtors are licensed and governed by RECO or the Real Estate Council of Ontario. You can get answers to a lot of questions on the RECO website, however, you’d be better advised to speak to a Realtor to save some time on your information search and avoid becoming confused and demotivated.

Your interest in buying Canadian real estate is wise. Keep your intent alive by speaking to a real, licensed Toronto area Realtor right now.




Realtor™ and Legal Fees

There are negotiable and set fees when buying real estate via a Realtor™. The realtor will typically be paid up to 2.5% of the sale price of the property. The buying agent and selling agent will split up to a 6% transaction fee. However, there is no limit on Realtor™ fees. It may be wise to avoid a Realtor™ who charges low fees, as they may be reluctant to put a good effort in for you. That lack of time and resources could translate to poor buying decisions. Given the massive return on investment possible during these times, it’s wise to pay a Realtor™ their normal fee so you receive their full attention and support.

Other Fees

When you purchase a home or condo, new or old, you may be required to pay a deposit, appraisal fees, home inspection fee, survey or certificate of location cost, title insurance, land registration fees, water test, septic tests, Estoppel Certificate fees, and condo or strata fees, property taxes. This is why hiring a knowledgeable Realtor™ is wise. No purchase of real estate is without risk.

Financing

If you need financing to buy a property in Canada, you can obtain it via Canadian banks or what’s called the secondary mortgage market. Banks or mortgage brokers are a good choice depending on your credit situation. These lenders are more amenable to lending when the property is located in Canada. Secondary mortgage lenders may require more collateral and charge higher mortgage rates and fees, while banks may not lend you money if you are considered to much of a risk. You will need to provide documents related to your financial wealth, income and credit worthiness when you apply for a mortgage in Canada.

You can also use US banks for financing and the advantage is that you have a credit rating in the US, which US lenders might have more respect for. However, legal agreements between the US and Canada, give lenders the ability to collect on debts, so don’t think that because the property is in Canada, that it’s an issue. The lenders know they can foreclose on the property if you’re in default of payments.

You may have to pay a down payment of up to 35% of the property. It’s important to remember that is hard to verify credit worthiness of a foreign buyer and more challenging to collect on money’s owed. You can expect to pay higher rates because of the increased risk.

Canada’s CMHC offers mortgage insurance for home buyers who can’t pay the normal downpayment requirement of 20%.

Housing and Capital Gains Taxes

On purchase, you don’t have to pay taxes on property. Taxes such as the Ontario land transfer tax, Toronto land transfer tax, and British Columbia’s foreign buyer tax are payable by the seller. However, they do raise your purchase price since the charge will be passed onto you as part of the purchase price.

Non-Resident Income Tax: You will be subject to a non-resident withholding tax of 25% of the gross sales price. You can request to have the non-resident tax withheld on the net capital gain on the disposition instead of the gross sales price.  You can fill out the required forms with the Canada Revenue Agency and also obtain a Certificate of Compliance. You must notify RCA within 10 days of selling the property.

Canadian Mortgage Insurance

If you finance your home and need to take out an extra loan to help with the downpayent, you are required to purchase homebuyers mortgage default insurance. Canada’s CMHC provides mortgage loan insurance that enables you to buy a home with a minimum down payment starting at 5% of purchase price. Find out more at CMHC.

If you finance the purchase, your mortgage provider will require you to carry homeowners insurance to protect the value of the home or condo.

Putting an Offer on a Property

To find a good home, condo or property to buy, read the homes for sale tips page to whet your appetite and gauge the prices and types of homes available here in Canada. Areas such as Toronto, Mississauga, Newmarket and Vaughan are ones you may feel safer in investing in. Visit the pages covering new homes in Newmarket, new homes in Bradford, and new homes in Vaughan to learn more about housing developers here.

An offer is a formal, legal proposal to purchase a property. You can put forward a written offer to purchase with it may be a conditional one or unconditional one. Conditional ones have to do with on approved financing or the repair of certain features of the property before title transfer.




Your purchase offer, created and reviewed by your Realtor™ and real estate lawyer will often include:

  • your name, the name of the person selling the home and the address of the house or condo
  • the price you are offering to purchase
  • any items in the home that you want to have included in the purchase price and repairs that must be completed
    financial details, such as the amount of the deposit you are including, any payable interest on that deposit, and whether you’re paying a straight, all cash payment
  • the details of your mortgage financing
  • the closing date for the sale and the date of possession of the property (normally 30 to 90 days from the date of the signed agreement)
  • a request to the seller for a copy of a current land survey
  • the expiry date (the date the offer ends any conditions you demand such as passing a home inspection




Accepting the Offer

The buyer can and often will make a counter offer to yours. The market in Toronto and Vancouver is scarce giving buyers the ability to demand a higher price. If the seller accepts your offer, then on closing day (date you take possession), your lender will forward the moneis to your lawyer or notary all the money from your mortgage. You will also provide to your lawyers, your down payment usually with a certified cheque. The lawyer or notary will then pay all the fees and other costs for you, and send all the money to the seller’s lawyer. Your lawyer or notary will then register the property in your name, and send the deed and keys to you.

The property is now yours and you are considered the title owner of the property (as governed by the Ontario land titles system), registered in the specific province where you bought the property.

The Buyer’s Guide to Buying Canadian real estate is presented as a helper to give you an overview of how to buy property in Canada. For accurate advice and legal counsel on purchasing property, please speak with a licensed realtor or real estate lawyer.

Best Cities to Invest In Canada?

 

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Learn more about the 2 hottest housing markets: The Toronto Real Estate Market and the Mississauga Real Estate Market.




The above information is not intended as professional advice to buy or sell property, but only as an encouragement to seek out the assistance of a licensed Realtor, Canadian investment advisor, mortgage broker or other professional for you to explore current opportunities. Political, legal, currency and other factors may reduce the return you receive on your real estate investment.

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TREB Market Watch Report for August 2016 – The Vancouver Tax

Toronto Real Estate Community Set for Big Welcome of Vancouver Real Estate Investors

TREB’s monthly market report showed 9989 homes were sold in Toronto (GTA) in July, which was one of the best July’s on record. Data is is suggesting 2016 will be a record year (It was!).  TREB has just released its August sales report (Sept 7) and sales were strong and housing stock is slim which isn’t much of a surprise. 9814 homes were sold in the TREB MLS zone.

Here’s a snippet from their Sept 7, news release:

The MLS® Home Price Index (HPI) Composite Benchmark for August 2016 was up by 17.2 per cent on a year-over-year basis.  Similarly, the average selling price for all home types combined was up by 17.7 per cent on an annual basis to $710,410.  Both the MLS® HPI benchmarks and average prices for low-rise home types were up by double digits percentage-wise.

Toronto Real Estate: [bctt tweet=”Latest Update: Toronto Real Estate market is up substantially, whether foreign investors are involved or not. #hotrealestate” username=”@gord_collins”]




August sales was a new record, up 17.2% from August 2015.  Is this due to the exit of investment from the overheated Vancouver BC market to Toronto. Or is this just due to the constrained availability in Toronto and surrounding area such as York Region?  What’s obvious about the Vancouver and Toronto markets is the degree of available land and developments are causing price pressures. Will BC and Ontario governments change their directions or will this severe pressure continue right through 2017?

Word is, that Ontario is considering an extra transfer tax (they already have enough taxes).  We’ll be able to pay our carbon credit tax and extra transfer tax together?

Here’s a chart courtesy of TREB, showing price growth in the last year. Very big numbers which might make a number of Toronto homeowners get off the shelf about selling their home.  Houses and condos sold for record prices and yet we’re not hearing as much lately about bidding wars?  York region lead the way with the biggest gains (22%) in price. Are you a York region realtor? Why not check out my digital marketing  and Real Estate Lead Generation services?  I’d be happy to help you.

trebstatsaugust

The Big Shift to Toronto

Toronto real estate agents, developers, builders, and financial companies must be in very good spirits knowing the number of sales will boom.  Many foreign buyers search Google or Juwai for information on homes, and from the jump in visits to my pages, it seems interest is growing. Those realtors who are present on Google search are sure to see their inquiries and leads grow.

This chart courtesy of TREB covers the details of each MLS zone: (click to enlarge). Mississauga, Vaughan and Toronto Central remain the top districts in terms of value. Toronto’s C12 MLS district (Lawrence Park, Don Valley, St Andrew/Windfields) has the highest prices with an average composite price of $1,690,900 and a detached home average price of $2,054,800. Other Toronto districts had higher price growth, some over 32% year over year.  Toronto MLS average prices have levelled off with volume down 30 to 40,000 dollars since the spring high season.

treb-august-2016
TREB Summary of Sales of Existing Homes in Toronto MLS region — Screencapture courtesy of TREB

BC’s Foreign Buyers Tax is the Big News in August

The BC government voted to levy a 15% tax on real estate investment by foreign buyers and many believe this has caused Asian buyers to shift their focus eastward for homes and other properties and take their money with them. The forecast for the 2017 Toronto housing market was good before, but with this new influx from Vancouver, it may be a profitable fall season for realtors and builders.




foreignsalesincanada
This chart courtesy of the Toronto Globe and Mail shows foreign purchases make a small portion of the total Vancouver mls region and are centered mostly in Richmond and Burnaby.

The stats don’t support that Asian investment money is responsible for Vancouver’s housing boom, anymore than it was Toronto or Montreal’s improvement. Politicians are likely hoping the public will believe a symptom of Vancouver’s amazing success is the cause. Prices have slid in Vancouver, but it may do little to make housing affordable in BC. In fact, we have to wonder if the exodus of that money will depress Vancouver’s economy and optimism.  When you try to suppress the spirit of a city, you could be in for a tough go.  Many of the foreign buyers are buying because their children are attending schools in Vancouver. It will certainly make a lot of over-leveraged buyers nervous as well as many schools in BC (including UBC) who will lose these foreign students and tuition.

The Big Shift to Toronto

Toronto real estate agents, developers, builders, and financial companies must be in very good spirits knowing the number of sales will boom.  Many foreign buyers search Google or Juwai for information on homes, and from the jump in visits to my pages, it seems interest is growing.

In a news story from inews880, Jordan Teperman, executive vice-president of Haven Developments in Toronto, said Toronto is seeing the effects of the tax.

“We really don’t know what the effect of it is yet, but I could tell you from the seven projects that we have on the go…we are getting a lot of calls from brokers out west saying they have customers that would traditionally invest in Vancouver and are coming to Toronto now because they feel it’s a safe heaven, and two, they are so taxed out in their foreign countries.”

Teperman also said a major developer his company works with said the figures could be as high as 60 to 70% of the volume of investors that could go to Toronto instead of Vancouver. That would certainly make the Toronto Real Estate market jump in August and September.

trebhistoricprices

TREB doesn’t report mid-month sales any longer, so we’ll have to wait another 7 to 10 days to see what the Vancouver impact is.  What needs to be looked at further is how many sales will move to the US markets such as Los Angeles.

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Gord Collins — Real Estate SEO Expert for realtors in Toronto, Mississauga, Richmond Hill, Oakville, Oshawa, Markham, Newmarket, Aurora, Bradford, Vaughan, Burlington, and Hamilton.

How to Sell Homes at Over Asking Price

Sold at $1 Million Over Asking Price

2 recent news stories in Toronto and Vancouver MLS regions really bring home the current state of real estate and real estate marketing now. The news stories both report sales of properties at $1 million above asking price. It’s mostly driven by a lack of new housing development.  In Vancouver it’s a lack of land but in Toronto, it’s government policy.

That means bidding wars will grow in number and home values in 2020 may be much higher than they are today. The Toronto housing outlook is still very good.

“You know you have to go above asking in this market right now. I absolutely feel bad for buyers. Nowadays, all I can say, is it’s whatever people are willing to pay.” from a CBC news story.

onemillIn the UBER era, what is your realtor unique value proposition? The whole issue of getting your clients the best price may revolve around great internet marketing along with terminology and tone of voice. I’m sure if you included “over asking” in your slogan or at the top of your website homepage, you’d be in for criticism. Yet if “over asking” is normal shouldn’t your marketing strategy adjust to it?

If there’s one sure way, the one way if you had to choose to create a bidding war and enable an over asking price result, it would be a powerful online marketing strategy – via Google, Facebook, Twitter, and your emails to your vast sized prospect list. There are many times more buyers online right now than on your own list. And some of those buyers are from the Middle East, China, Hong Kong, USA, and even Russia.




Anyone selling a home in Toronto,  Vancouver, San Diego, San Francisco, Boston or Los Angeles, who doesn’t consider an above asking price strategy is basically giving away money. As an investment, a seller’s goal is to get the best ROI as this money could get them out of debt, be their retirement fund, kids education fund, old age health fund, or bucket list fund.  That extra money could help sellers revive their lives and get their health back. No more commuting!?

I feel sorry for sellers who sell their house in 3 days when a little 2 to 3 week strategy could build interest and focus buyer intention on one special 3 day period where buyers must make their offer. You’re a salesperson and should have extensive expertise in sales strategy.  Below, you can see Hans Ohrstrom of Newmarket, ON is building a reputation as a guy who gets the right results. This is what you should be doing.

hans            kupeng

The Changing Mores of a Business Culture

There doesn’t seem to be any ethical absolutes in pursuing the best over asking price benefit for clients. If your broker/mls/realtor association has said anything to you on the matter, I’d like to hear about it. The old paradigm that the client’s best interest is a “normal price” that’s affordable for buyers has disappeared.  More investors/buyers

Almost every real estate organization stipulates acting on the client’s best best interests. I’m not sure how you can reason that one out by getting involved in a client sale and come away looking squeaky clean.  And then there’s the “over asking price” value proposition. Is this the next Gambit for aggressive marketing realtors?  Given the number of rich buyers now, it’s pretty safe to offer it as a time limited selling proposition. And if you have big money yourself, it’s a limited risk that you’ll get hurt even if you lose on one or two deals.

Realtor.com on Over Asking Prices

Realtor.com‘s advice is nothing new to you:

“The most fruitful strategy.. is to aggressively price the property roughly 5% to 10% below the going market rate. This will always generate more traffic to the property and give buyers a chance to fall in love with the home, when a higher purchase price might have kept them away initially.”

Here’s a few more Over-Asking Price Tips:

  1. hold back and tell buyers there are other offers, even though their offers aren’t huge
  2. approach investors to look hard at the property
  3. get the seller to update the house to eliminate negatives and play up the main selling value proposition (in Vancouver it might be the views, or just the location (tear downs or flips). You may even decide to change the style of the home (brick facades, or Asian, or Arabic styling could really pay off). See what the most attractive styles in Kelowna BC  are right now.
  4. be proactive, and like you’re in charge: do the landscaping or roof repair yourself and deduct that from your commission which preempts any attempt by the seller to cut your commission.
  5. do blitz real estate marketing with Google Adwords, remarketing, select outdoor ads, and play up the property to all your Linkedin, Facebook, and Twitter connections. If your site is ranking well on Google and you’re getting big traffic as well, you can actually create the bidding war climate. Timing is everything so think about how you can market strategically.

Isn’t it about time you got about your real estate career? Could you be one of the very smart ones and begin launching your own brokerage? We’re well into the Uber real estate era. The next real estate mogul will be a real estate digital marketer, just like Uber has no taxis and Airbnb owns no rooms themselves. This is a whole new ball game. Be smart about your future.

See Realtor.com’s post on which upgrades produce the best results, and which home styles sell well.

 

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