The BC government introduced its 2016 budget today. The budget includes a number of items that will impact home buyers and home owners in British Columbia.
Here’s a summary:
Property Transfer Tax (PTT)
• a new exemption will apply to newly built homes or newly subdivided units priced up to $750,000, saving buyers up to $13,000; and
• a partial exemption will apply on newly built homes priced $750,000 to $800,000.
• a new 3% PTT rate will apply to the portion of a home sale that exceeds $2 million. For homes that sell for below $2 million, the PTT will continue to apply at a rate of 1% on the first $200,000 and 2% on the balance.
These changes will take effect on February 17, 2016.
As an example, a purchaser of a $3-million house will pay a property transfer tax of $68,000, instead of $58,000, an increase of $10,000. The property transfer tax is paid by the buyer to the BC Ministry of Finance on the day of completion.
A Property Transfer Tax calculator is available at the BC Government website: http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand
Starting this summer, individuals and corporations buying property must disclose if they are Canadian citizens or permanent residents of Canada and if neither, their home country. These changes will provide information on the volume of foreign investment in BC.
Home Owner Grant
The Home Owner Grant threshold will increase to $1.2 million from $1.1 million for the 2016 tax year. If your property has an assessed or partitioned value of $1,2 million or less, the home owner may pay property tax at a reduced rate.
Click the link below to watch the YouTube video on Greater Vancouver 2015 November Housing Market Update, presented by the Real Estate Board of Greater Vancouver. The video presents an overview of the housing statistics for November 2015 in the Greater Vancouver area, and discusses elevated home sale trends.
Highlights from the video include:
(1) residential property sales in Metro Vancouver reached 3,524 on the Multiple Listing Service® (MLS®) in November 2015;
(2) This sales number is 46.2 per cent above the 10-year sales average for the month and rank as the second highest November on record for residential property sales;
(3) The sales-to-active-listings ratio in November 2015 was 43.5 per cent.
Generally, analysts say that downward pressure on home prices occurs when the ratio declines below the 12 per cent mark, while home prices often experience upward pressure when it reaches 20 per cent, or higher, in a particular community for a sustained period of time.
Click the link below to watch the YouTube video on Greater Vancouver 2015 October Housing Market Update, presented by the Real Estate Board of Greater Vancouver. The video presents an overview of the housing statistics for October 2015 in the Greater Vancouver area, and discusses elevated home sale trends.
(Youtube video courtesy of the Real Estate Board of Greater Vancouver)https://youtu.be/IJXDkPBQ09Y
Highlights from the video include:
(1) home buyers remain active across Metro Vancouver despite a reduced supply of homes for sale;
(2) 3646 sales on the MLS last month, was up 19% compared to last year and is 36% above the ten-year October average;
(3) on the home listing side, 9569 homes available for sale in the MLS, down 30 percent compared to last year and the lowest since December 2010;
(4) sales to active listings ratio stands at 38%.
Generally analysts say that downward pressure on home prices occurs when the sales to active listings ratio dipped below the 12 percent mark. Home prices often experience upward pressure when the sales to active listings ratio is greater than 20% in a particular community for sustained period of time.
A real estate hot list shows the latest market activity according to the Multiple Listing Service. This helps brokers find new listings as soon as they are posted so they can make the first offer. Agents also use the hot list to spot trends in the local market and forecast future home prices. Knowing the best price for the current market reduces the amount of time it will sit on the market.
The active section of the hot list shows new listings made available for sale within the previous 24 hours. You can usually filter the active listings to only display homes with certain characteristics, such as location, price, size or number of bathrooms. The exact options vary based on the software interface you use to search the MLS database.
If an offer is accepted and a sale agreement has been executed, it will be classified as pending or under contract until the sale is final. The hot list includes all listings that have changed to pending status within the last 24 hours. Brokers often use the pending listings to forecast upcoming closings and project their future income.
When the seller's contract with the broker for listing the house has expired with no offer, the listing will be moved to the expired section of the real estate hot list. These listings present brokers with opportunities to acquire new clients. A house is taken off the market after the listing expires, but the seller may be interested in relisting. The seller may also want to change brokers since the original listing did not sell. Expired listings can also be helpful when conducting price research. Homes that did not sell during the allotted listing time are usually priced too high.
Closed listings have completed the sale process in the last 24 hours. To qualify as closed, ownership must transfer from the seller to the buyer and all closing costs must be paid. The hot list shows the final sale price, closing date and the value of the seller's concessions to the buyer. Closed listings are often used as comparables to set prices for new listings because they represent the most recent market data.
Canceled or withdrawn listings are taken off the market before the listing contract has expired. This is often due to financial issues that come up after the listing has been placed. The seller may also be required to cancel the listing prior to a refinance or loan modification.
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