BC Commercial Leading Indicator Edges Lower in Fourth Quarter

Vancouver, BC – February 28, 2013. The British Columbia Real Estate Association (BCREA) Commercial Leading Indicator (CLI) edged lower by 1.3 points in the fourth quarter of 2012, to an index level of 111.3. On a year-over-year basis, the CLI was up 0.8 per cent during the fourth quarter of 2012.

The decline in the CLI translates to a slight rolling over in the underlying index trend, signaling a potential
slowing of activity for the first half of 2013.

"A modest slowing of commercial real estate activity is in general accord with 2013 being somewhat of a transition year for the economy,” said Brendon Ogmundson, BCREA Economist. “We anticipate that slower growth through the first half of 2013 will give way to a more robust economy in 2014 and therefore an increase in commercial market activity."

Just SOLD

Canadian Retail Sales and Consumer Price Inflation - February 22, 2013

BCREA ECONOMICS NOW

Canadian Retail Sales and Consumer Price Inflation - February 22, 2013

Canadian retail sales declined 2.1 per cent in December, following five consecutive monthly increases. The majority of the decline was sparked by a dip in motor vehicle sales. Excluding motor vehicles sales, retail sales were down 0.9 per cent in December. Canadian retail sales growth for all of 2012 was just 2.5 per cent, half the rate of growth in 2011. 

Retail sales in British Columbia fell 0.9 per cent in December and were 0.2 per cent lower year-over-year. For all of 2012, retail sales grew just 2.2 per cent, the weakest sales growth since the 2009 recession in spite of strengthening fundamentals like full-time employment and wage growth. 

Weak retail sales point to fairly weak economic growth in both Canada and BC at the end of 2012, which has meant very little upward pressure on inflation. Canadian CPI registered just 1 per cent in January matching the increase in the Bank of Canada's core inflation index.  

BCREA Housing Market Update (February 2013)

US Housing Starts - February 20, 2013

BCREA ECONOMICS NOW

US Housing Starts - February 20, 2013

US housing starts declined in January from a nearly 5-year high in December, registering 890,000 units at a seasonally adjusted annual rate (SAAR).  Building permit data, a proxy for future housing starts, rose to a 925,000 unit annual rate implying that the dip in new home construction last month will be temporary.

The strong recovery in US home construction in 2012 helped boost BC wood product exports by 8 per cent last year and should continue to be an important driver of BC export growth this year.

Thinking of Selling

Thinking of Selling?

Mehrdad can give you up-to-date information on what’s happening in the marketplace, as well as the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle. Mehrdad will ensure your property is marketed well to maximize its exposure to other real estate agents and the public. Mehrdad knows when and where to market your property to generate the most interest and potential sales opportunities. When you do receive offers on your home, Mehrdad will help you objectively evaluate every buyer’s proposal without compromising your goals. Throughout the selling process, Mehrdad is always available to address any questions or concerns you may have.

If you're thinking of selling your home in the next year, Mehrdad can help you. Please fill out the form below to request your home's current market value and a suggested listing price.

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My Services to the Buyers

1.  Dedicate myself to making the process of buying your next home as easy and as successful as possible.

2.  Respect you, your needs and be honest and forthright.  

3.  Maintain your confidentiality and hold your best interests in the highest regard throughout the process. 

4.  Value and respect your time, being as efficient and effective as possible.  

5.  Understand your needs and respond quickly.

6.  Consult with you to determine your particular real estate wants and needs.  

7.  Use my base of experience, knowledge, tools and the most up-to-date training to best serve you. 

8.  Explain each step of the process including local real estate procedures, typical closing costs, purchase agreements and act as a guide to help you make most informed decision. 


9.  Disclose material facts known about the property and respond to questions concerning the property.

10.  Help determine your purchasing power, while explaining alternative methods of  purchasing and/or financing.

11.  Provide an action plan for locating the right property, at the right price and terms, in an acceptable time frame.

12.   To the best of my ability, continuously show you new properties that fit your needs.

13.  Provide a Customized Home Search Plan for locating the right property for you, only showing you  properties that will best meet your needs.  

14.  Use the most comprehensive database of listings in the area, to help you find the home that best meets your needs, whether that is the Multiple Listing Service and/or other methods.

15.  Use my knowledge and expertise to promote the most valuable purchase on your behalf. I will assist you in evaluating the market value of properties that are of interest to you and help you obtain the most advantageous price and terms.

16.  Provide access to financing that meets your needs.

17.  Advise and assist you in preparing and completing an offer to purchase agreement,  and promptly present your offer to the vendor or their designated representative with integrity in a light most favorable to your needs as prescribed by law or local practice.

18.  Upon acceptance of an offer by you, and the vendor, monitor all closing activities as permitted by law or local practice.

19.  Offer to provide you with information regarding other professionals (e.g. attorneys, accountants, inspectors, contractors) that may assist you during and after your move.

Big money betting big on housing

The latest sign of a housing boom: investors are clamoring to buy up home building stocks, homes, and undeveloped land.

NEW YORK (CNN Money)

Investors are betting big on the housing recovery.

Hedge funds and private equity firms have been rushing in to buy up companies and assets in every part of the housing supply chain, including undeveloped land, home builders, foreclosed homes, and building parts manufacturers.

One of the most notable moves is coming from hedge fund manager John Paulson, best known for his big (and lucrative) bets against sub prime mortgages in 2006 and 2007.

Now, he's turned his attention to snapping up undeveloped land in areas hardest hit by the housing crisis. "Land is the accordion in the home building equation," said Michael Barr, who runs Paulson's real estate investments. "It falls the most in a downturn, but also rises the most in an upturn."

Over the past two years, Paulson & Co has bought up enough land in California, Arizona and Nevada to build up to 25,000 homes and is aggressively scouting for more, according to Barr.

The Name You Could Trust

CHEEKY QUOTES

One out of four people in this country is mentally unbalanced. Think of your three closes friends; if they seem OK, then you're the one.

Ann Landers

North Vancouver condo sold

BC Home Owner Grant

BC Home Owner Grant

Reduces property taxes for home owners with an assessed
value of up to $1,285,000.

The basic grant gives home owners

• a maximum reduction of $570 in property taxes on principal
residences in the Capital, Greater Vancouver and Fraser
Valley regional districts;

• an additional grant of $770to rural homeowners elsewhere
in the province; and

• an additional grant of $275 to seniors aged 65+, those who
are permanently disabled and war veterans of certain wars.

BC Ministry of Small Business
and Revenue www.rev.gov.bc.ca/hog or contact your municipal tax
office.

home buying cost

In preparing to buy your first home, you need to budget for expenses that will be incurred up-front in the process including:

Deposit. This is part of your down payment and must be paid when you make an Offer to Purchase. Deposits are usually around 1% but can be as high as 5% of the purchase price depending on the area. Sellers may request that the deposit be increased once all conditions have been satisfied.

Down Payment. At least 5% of the purchase price is usually required for a high-ratio mortgage and at least 20% of the purchase price is usually required for a conventional mortgage. 

Mortgage Loan Insurance Premium. If yours is a high ratio mortgage (less than 20% down payment), you may need mortgage loan insurance. To get this insurance, you will be asked to pay the required insurance premium. Your lender may add the mortgage insurance premium to your mortgage or you can pay it in full upon closing. Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with a smaller down-payment — with interest rates comparable to those with a 20% downpayment.

CMHC Mortgage Loan Insurance. The amount of the premium varies and can range between 0.65% and 2.75% depending upon how much of the purchase price/home value is financed with a mortgage loan.

Appraisal Fee. Your mortgage lender may require the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost is usually between $250 and $350 and must be paid when you contract for those services. Some banks will waive this fee in return for your mortgage which is another reason to shop around.

Home Inspection Fee. A satisfactory home inspection is often an important condition of the Offer to Purchase. A home inspection is a report on the condition of the home and generally ranges around $500, depending on the complexities of the inspection. Larger or older homes may cost more, especially if there is any suspicion of latent defects.

Land Transfer Tax. You have to pay this provincial tax upon closing. The cost is a percentage of the property's purchase price and varies by province. Use our calculator on www.remax-western.ca .

Prepaid Property Taxes To reimburse the vendor for pre-paid costs (if any).Property Insurance. The mortgage lender requires this because the home is security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents. Property insurance must be in place on closing day.

Survey or Certificate of Location Cost. The mortgage lender may ask for an up-to-date survey or certificate of location prior to finalizing the mortgage loan. If the seller does not have one or does not agree to get one, you will have to pay for it yourself.

Water Quality Inspection. If the property has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is potable. This should be a condition on your Offer to Purchase.

Legal Fees and Disbursements. Must be paid upon closing and cost a minimum of $500 (plus GST).Your lawyer will also bill you for any disbursements they incur such as land titles costs to check on the legal status of the purchased property.

Title Insurance. Title insurance covers loss caused by defects of title to the property and may be recommended by your lawyer.

Costs After Possession:

• Appliances. Check to see what comes with the house, if anything.
• Gardening equipment.
• Snow-clearing equipment.
• Window treatments. Check to see what comes with the house.
• Decorating materials. Paint, wallpaper, flooring and tools for redecorating.
• Hand tools. You will need some basic hand tools for your new home.
• Dehumidifier. May be required to control moisture levels, especially in older homes.

• Moving Expenses including van rental and boxes
• Service Hook-Up Fees. Charged for utilities. You may be required to pay a deposit for utilities such as telephone and heating services.
• Condominium Fees. You may have to make the initial payment for these monthly fees.
• Homeowner's association fees. Some subdivisions have an annual or monthly fee to maintain recreation facilities.
• Repairs, upgrades, renovations. Depending on the condition of the home you buy, remember to budget for the work it will take to make it move-in ready.
• Household items. As a first time buyer you may need any number of household items such as trash cans and shower curtains.

Canadian Building Permits - February 7, 2013

BCREA ECONOMICS

Canadian Building Permits

Canadian building permits declined 11 per cent in December, following a 15 per cent increase in November. The decline in permits was a result of both lower non-residential and residential construction intentions.  For all of 2012, Canadian building  permits rose 9 per cent over 2011, reaching $80.5 billion and surpassing the previous peak set in 2007. 

In BC, permitting activity declined 15 per cent in December due to a slowdown in both residential (down 9 per cent) and non-residential (down 27 per cent) permit volumes. For all of 2012,  the dollar volume of non-residential construction permits in BC rose 16 to $10.7 billion. 

Permit activity in BC's four major metropolitan areas was mixed in December. Permit values more than doubled from November in the Abbotsford CMA and rose 31 per cent in the Kelowna CMA.  Conversely, permit volume fell month-over-month in the Vancouver CMA by 23 per cent and by 25 per cent in the Victoria CMA. 

US Non-Farm Payrolls - February 1, 2013

BCREA ECONOMICS NOW

The US economy added 157,000 jobs in January and November and December job growth was revised higher by a whopping 127,000 jobs. Robust jobs numbers further re-enforce that the growth hiccup last quarter was an anomaly brought on by a sharp one-time decline in defense spending rather than underlying weakness in the US economy. The US unemployment rate ticked slightly higher to 7.9 per cent due to an increase in individuals actively looking for work.