JANUARY Newsletter
Hello!
2021 has been a record breaking year in real estate! We are grateful & proud to say that we have helped over 45 families this year with their housing needs. We are looking forward for what's to come in 2022, and would like to say thank you to everyone for their unwavering support thus far!
We are excited to announce a new benefit made available to first responders in BC — a mortgage program to support essential workers in their homeownership journey. If this would benefit you or someone you know, read below for more details.
BC Assessment has just released assessment notices for 2022 (values determined as of July 1, 2021). This reflects how resilient BC's real estate market has shown to be over the past year, since majority of property owners have seen a significant higher assessment value for 2022. However, these values rarely reflect the true market value as of today, so don't hesitate to reach out to our team for an accurate home evaluation. Congratulations to all of those who made a great investment!
A full update on mortgage rates is provided by Homelife White Rock's In-House Mortgage Brokers: Lynn Mclellan & Jared Dreyer. In discussion is how much interest rates are project to increase in 2022.
You'll also find the latest news in the housing market from the Fraser Valley Real Estate Board — 2021 shattered the previous annual record last set in 2016!
WE NEED HOMES!
We have buyers looking for:- Acreage in South Langley
- Build sites for condos, townhomes or single family detached
- Single family homes in Langley and South Surrey
If you or anyone you know is considering a move call us today. Your home may be worth more than you think!
We are always planning contests and announcing community events/news, so be sure to subscribe & follow to keep connected with us on instagram:
@robvisnjak, @pbouwmanrealestate & @lanarosemackay.
If you're looking to see what your home might be worth you can check that out here: |
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CREATING WEALTH THROUGH REAL ESTATE SINCE 2007 |
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| BC First Responders Mortgage Program |
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Does your job qualify you for a
discounted mortgage?
The First Responder Mortgage Program, which features both discounted rates and cash back offers, an exclusive offer that aims to support B.C. essential workers at any stage of their homeownership journey. From purchasing a home to switching mortgage plans, by finding the best available financing options for your specific needs.
Essential workers that are eligible for the First Responder Mortgage Program include: - Paramedics
- Firefighters
- Police Officers
- Correctional Services
- Border Services
- Search & Rescue
- Registered Physicians
- Registered Nurses.
If this could benefit you or someone you know, reach out to our team today to discuss your options! |
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| FRASER VALLEY MONTHLY STATISTICS |
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Fueled by the consumer response to the COVID?19 pandemic along with historically low interest rates, total property sales in the Fraser Valley in 2021 shattered the previous annual record last set in 2016. The FVREB processed 27,692 sales its Multiple Listing Service® (MLS®) in 2021, an increase of 39% compared 19,926 sales in 2020; and 15.5% higher than 2016’s 23,974 sales. |
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“No one could have predicted how the pandemic would impact the real estate market. Our region's relative affordability, combined with a newfound ability to work from home and the value for housing dollar in the Fraser Valley attracted buyers in numbers like we’ve never seen."
Whether helping sellers list or helping buyers complete a sale, our Board averaged over 5,200 transactions every month. And even though our volume of new listings was also high, it just couldn’t keep up with the demand.
Year-over-year, sales of detached homes soared by 31.8% in 2021 compared to 2020; townhome sales increased by 33.7% and sales of apartments increased by 68.9%. Anderson added, “With the rapid escalation of prices in 2021, many buyers made decisions based on economic factors, resulting in an explosion of condo sales in our region.“
- Larry Anderson, FVRB President |
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MLS® HPI Benchmark Price Activity
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MLS® HPI Benchmark Price Activity for December 2021:
Single Family Detached: At $1,500,000, the Benchmark price for an FVREB single-family detached home increased 3.6% compared to November 2021 and increased 39% compared to December 2020.
Townhomes: At $765,800, the Benchmark price for an FVREB townhome increased 3.5% compared to November 2021 and increased 32.9% compared to December 2020.
Apartments: At $549,200, the Benchmark price for an FVREB apartment/condo increased 3.5% compared to November 2021 and increased 25.3% compared to December 2020. |
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| 2022 PROJECTED MORTGAGE RATES |
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This chart shows where Bank of Canada is at currently 0.25% and then shows where each bank thinks we will be at end of 2022 and 2023 |
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BMO has the lowest forecast at .50bps increase only to .75% by end of 2022, Scotia has the most up 2% by end of 2023. Interest rate increases by Bank of Canada effect variable rate mortgages and lines of credit.
Call for a quote: Lynn McLellan & Jared Dreyer
Dreyer Group Mortgages Inc. |
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| RESIDENTIAL MARKET COMMENTARY |
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Surtax Study Riles Industry
A new study funded, at least in part, by Canada Mortgage and Housing Corporation is raising eyebrows in the housing business.
Generation Squeeze, a self-declared lobby group for Canadians aged 40 and younger, received $250,000 from the housing agency to look at possible solutions to housing affordability and inequity across generations.
The lead researcher, Generation Squeeze co-founder and University of British Columbia professor, Paul Krenshaw admits there is no “silver bullet” solution for housing unaffordability and his study makes four recommendations:
Align the mandates of the Canada Infrastructure Bank and the CMHC to incentivize lending to scale up green co-op and affordable purpose-built rental supply.
Adjust the treatment of home prices in the Consumer Price Index, and report annually on the influence of monetary policy on the growing gap between home prices and earnings.
Put a modest price on the housing inequity created by runaway home prices, via an annual (deferrable) progressive surtax on the top 10% of homes valued at over $1 million.
Create a program and savings plan to transition low-density housing into permanently affordable rental units, financed by a Perpetual Affordable Housing Bond.
It is #3 – a tax on home equity – that is generating the biggest reaction.
The tax would start at .02% per year at the low end and increase to 1.0% or more, annually, for homes valued at $2-million and up. The tax would be deferred until the home is sold or inherited.
It’s estimated the tax could generate as much as $5-billion a year. Proponents say the money could (not will) be used to fund affordable housing programs. Opponents question the effectiveness of the tax, saying the key problem in affordability is the tight housing supply.
Well known industry commentator, Ryerson University professor Murtaza Haider, refers to the tax as a demand-busting measure and he does not see that as a real solution.
“If we don’t address the real problem, that is construction of new housing, and we continue to build or under build, as we have done so in the last five decades, then the problem will remain,” he says.
The Toronto Regional Real Estate Board points out that government efforts to curb demand have not been effective, so far. Others suggest a tax applied when an owner exits their home will merely encourage those owners to stay put, keeping their homes off the market and further reducing supply.
Apart from the apparently questionable effectiveness of such a tax the focus of the Generation Squeeze study is on Millennials and Generation Z. Boomers and Gen-Xers, many of whom have built their home equity into their retirement saving plans, were not considered. If fact a line in the news release about the study makes reference to, “housing wealth windfalls gained by many home owners while they sleep and watch TV.” This would appear to discount the very principle of investing.
CMHC seems to have tried to distance itself from its role in the research. Back in the summer of 2020, reports about the agency’s funding of a study that included a possible tax on home equity received a stern rebuke from then CEO Evan Siddall.
On July 18, 2020 Siddall tweeted, “The suggestion that the CMHC is funding a study on any tax measure is inaccurate and misleading reporting. We are co-funding a Solution Lab on housing wealth and inequality. We do not control the agenda nor the research base, which is a minor component of the protocol.” Two days later he when on to tweet that the story was “fabricated.”
During the last federal election both the Liberals and Conservatives said they had no plans to tax home equity. Earlier this month, in a statement to the Canadian Press the government repeated that stance.
"The federal government has clearly stated several times that we will not be introducing a tax on the equity of primary residences in Canada," the government said. |
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14012 68 AVE, SURREY / R2617945
$1,920,000
3 BED | 2.5 BATH | 2,537 SQ FT. |
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14240 MARINE DR, WHITE ROCK / R2632613
$2,195,000
3 BED | 2.5 BATH | 4,097 SQ FT. |
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Copyright © 2022 Rob Visnjak, All rights reserved.
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