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This edition of the G|B Real Estate Newsletter will discuss the 2022 Federal budget with a focus on housing, looking into the recent release of the new legislation. We will also share some exciting tips and trick from Meme Brooks Studio on the benefits of staging your home prior to listing. As always, we have included a snapshot of Metro Vancouver’s real estate market for March 2022. March of 2021 was the highest selling month in our history. This year’s activity, while still elevated, is happening at a calmer pace than we experienced 12 months ago. Home buyers are keeping a close eye on rising interest rates, hoping to make a move before their locked-in rates expire. Nevertheless, we’re still seeing upward pressure on prices across all housing categories in the region due to a lower supply than needed to create a balanced market. To find out more about March’s Metro Vancouver real estate market, scroll down to the Market snapshot section of our newsletter. If you have any questions regarding the information in this edition of the G|B Real Estate Newsletter or want to find out more about market statistics in your neighbourhood please don’t hesitate to reach out.

 

2022 Federal Budget – Housing Focus

 

Saving

• A new Tax-Free First Home Savings Account: first-time home buyers can save up to $40,000 tax-free. Like RRSPs, contributions would be tax-deductible, and withdrawals to buy a first home, including investment income, would be non-taxable, like a TFSA. Tax-free in, tax-free out.

• First-Time Home Buyers’ Tax Credit: double the amount to $10,000, providing up to $1,500 in direct support to home buyers, applying to homes bought on or after January 1, 2022.

• Home Accessibility Tax Credit: double the qualifying expense limit of the to $20,000 for 2022 and subsequent tax years. This tax credit of up to $3,000 is an increase from the previous tax credit of up to $1,500 for important accessibility renovations or alterations.

 

Foriegn Investment

• Foreign ownership restrictions: to prohibit foreign commercial enterprises and non-Canadian citizens or permanent residents from acquiring non-recreational, residential property in Canada for a period of two years. This will apply to detached homes and stratas. Permanent residents, foreign workers, foreigners buying their primary residence, and students will be excluded from the new legislation.

 

Our Thoughts

The government has been trying to control the Real Estate market for a while now by implementing certain measures, whether it would be foreign buyer and speculation tax, mortgage qualifying rate and so forth. At first these implementations give rise to consumers reaction but quite frankly do not have a large effect on market changes.

Foreign Buyers across Canada make up of less than 5% of the market place, in our opinion one entity cannot control the market place.

Supply and demand is why our market has continued this upward trend. We are not building enough homes to keep up with the growing population. So unless people stop moving to BC or Canada our market will not change all that much.

We need to densify and create new homes in Metro Vancouver. That is our solution, especially with the number of people moving here each year. Why we love this province so much is because we are surrounded by water and mountains which means we either have to build up or out (east). Building east poses an issue given that is where the majority of our agricultural land is. We have started to see a lot more duplexes in Vancouver, now that the zoning allows for it. We see this trend continuing, smaller developments with 2-6units .

To sum it up, buyers and sellers need to continue to make moves based on their current situations and do it when the time is right for them.

Special Edition Feature

 

Benefits of Staging Your Home

 

First impressions are everything when presenting your home to a busy market! Make the entrance of your home tell the story you want potential buyers to feel. eg. A well maintained home means, make sure the gardens are trimmed with fresh flowers, walkways are free of moss and dull paint gets a fresh coat. Or a welcoming and fresh feeling home means, new entrance area rug, clean light fixtures, no scuffs on the walls and a vase of fresh flowers.

 

Let people see your space, not your personal clutter and items. When guests enter your home for the first time they want to imagine themselves living in your space, not be distracted by all your personal pieces. Imagine the feeling you get when you enter a gorgeous hotel room, bright, clean, well designed with a showhome vibe. This feeling makes you want to pack a couple bags and move right in! This is exactly the impression you should be leaving for every person walking through your front door.

 

Pro Tips

 

Purchase new items to give that hotel/showhome vibe. Items you have been using in your home for years hold a lot of your personal energy. Clear the air and purchase fresh items before photos eg. Sofa throw pillows, shower curtains, towels and bedding.

 

Best neutral colours to paint your walls before selling. We are biased to Benjamin Moore colours and products!

• Modern Light Gray: OC-23
• Classic Gray | Timeless
• Warm White CC-70
• Dune White | Fresh
• Creamy Neutral OC-14 |
• Spa Like Bath & Bedroom 2137-60 Gray Owl

 

MARCH MARKET SNAPSHOT

Vancouver Downtown – Attached

• Sellers market at 42% sales ratio average (4.2 in 10 homes selling rate).
• Sale to List Price Ratio: homes are selling on average 100% of list price.
• Inventory: up by 10% over last month.
• Most Active Price Band: $700,000 to $800,000 with average 94% sales ratio (Sellers market).
• Buyers Best Bet: homes between $1.75 mil to $2 mil, Coal Harbour and minimum 4 bedroom properties.
• Sellers Best Bet: selling homes in downtown and up to 1 bedroom properties.

Vancouver Westside – Attached

• Sellers market at 56% sales ratio average (5.6 in 10 homes selling rate).
• Sale to List Price Ratio: homes are selling on average 2% above list price.
• Inventory: up by 2% over last month.
• Most Active Price Band: $500,000 to $800,000 with average >100% sales ratio (sellers market).
• Buyers Best Bet: homes between $2.75 mil to $3.5 mil, Dunbar, South Cambie and minimum 4 bedroom properties.
• Sellers Best Bet: selling homes in Kitsilano, Quilchena and up to 1 bedroom properties.

 

Vancouver Eastside – Attached

• Sellers market at 75% sales ratio average (7.5 in 10 homes selling rate).
• Sales to List Price Ratio: homes are selling on average 5% above list price.
• Inventory: up by 4% over last month.
• Most Active Price Band: $700,000 to $800,000 with average >100% sales ratio (sellers market).
• Buyers Best Bet: home between $1.75 mil to $2 mil, South Vancouver, Strathcona and 3 bedroom properties.
• Sellers Best Bet: selling homes in Fraser, Hastings, Mount Pleasant and up to 1 bedroom properties.

 

• Sellers market at 21% sales ratio average (2.1 in 10 homes selling rate).
• Sales to List Price Ratio: homes are selling on average 1% above list price.
• Inventory: up by 8% over last month.
• Most Active Price Band: $3 mil to $3.5 mil with average 67% sales ratio (sellers market).
• Buyers Best Bet: homes minimum $7 mil, Shaughnessy, University and minimum 7 bedroom properties.
• Sellers Best Bet: selling homes in Arbutus and 3 to 4 properties.

 

• Sellers market at 40% sales ratio average (4 in 10 homes selling rate).
• Sales to List Price Ratio: homes are selling on average at 5% above list price.
• Inventory: up 9% over last month.
• Most Active Price Band: $2 mil to $2.25 mil with average 73% sales ratio (sellers market).
• Buyers Best Bet: homes between $2.75 mil to $3 mil, Collingwood and up to 2 bedroom properties.
• Sellers Best Bet: selling homes in Fraser, Renfrew and 3 to 4 bedroom properties.

 

• Sellers market at 75% sales ratio average (7.5 in 10 homes selling rate).
• Sale to List Price Ratio: homes are selling on average 6% above list price.
• Inventory: up by 9% over last month.
• Most Active Price Band: $2.5 mil to $2.75 mil with average >100% Sales Ratio (Sellers market).
• Buyers Best Bet: homes between $3.5 mil to $4 mil, Canyon Heights, Forest Hills and minimum 7 bedroom properties.
• Sellers Best Bet: selling homes in Boulevard, Central Lonsdale, Lynn Valley and 5 to 6 bedroom properties.

 

• Balanced market at 20% sales ratio average (2 in 10 homes selling rate.)
• Sale to List Price Ratio: homes are selling on average 2% below list price.
• Inventory: up by 3% over last month.
• Most Active Price Band: $2.25 mil to $2.5 mil with average 78% sales ratio (sellers market).
• Buyers Best Bet: homes minimum $7.5 mil, Altamont, Chartwell, Westmount and minimum 7 bedroom properties.
• Sellers Best Bet: selling homes in Bayridge, Lions Bay and 3 to 4 bedroom properties.

 

• Sellers market at 48% sales ratio average (4.8 in 10 homes selling rate.)
• Sale to List Price Ratio: homes are selling on average 3% above list price.
• Inventory: up by 19% over last month.
• Most Active Price Band: $1.25 mil to $1.5 mil with average 100% sales ratio (sellers market).
• Buyers Best Bet: homes between $4.5 mil to $5 mil, Elgin Chantrell and minimum 7 bedroom properties.
• Sellers Best Bet: selling homes in Sunnyside Park and 3 to 4 bedroom properties.