Ross Clark Interviews Marc Cohodes: The Vancouver, BC Housing Market To Drop 50% – 80%
Reaction To Purposed Changes To Foreign Buyers Tax
The Winners And Losers Of B.C.’s Housing Market
Published Thursday, February 2, 2017 11:46AM PST
VANCOUVER – Home sales in Metro Vancouver last month dropped by almost 40 per cent from the year before with the sale of detached houses falling hardest.
The Real Estate Board of Greater Vancouver says the townhome and condominium markets are more active than sales for detached homes.
Just over 1,500 residential properties sold in January, down 39.5 per cent from about 2,500 sales that were recorded in January 2016.
Board president Dan Morrison says it has been a “lukewarm” start to the year.
“While we saw near record-breaking sales at this time last year, home buyers and sellers are more reluctant to engage so far in 2017,” he said in a statement.
Sales last month were also down about 11 per cent from December, when about 1,700 homes sold.
The benchmark price for detached properties was about $1.5 million in January, down 6.6 per cent over the last six months. The board says townhouse and condominium prices have remained steady.
The B.C. government brought in a 15-per-cent tax on foreign buyers in the Vancouver area last August but some analysts have said the market was already showing signs of softening after months of scorching sales. Continue reading
MPC Calls for Halt to Further Mortgage Tightening
By; Robert McLister , Canadian Mortgage Trends
Mortgage Professionals Canada has asked theDepartment of Finance for a moratorium on mortgage rule changes until the effects of the current changes are known.
Speaking before the Standing Committee on Finance this week, MPC CEO Paul Taylor spoke to the association’s key concerns about the new rules and its hope that certain aspects will be revisited.
“The recent changes are having a cumulative negative impact on the mortgage market and ultimately on the Canadian consumer,” MPC president and CEO Paul Taylor said. “We are asking for slight amendments to the portfolio insurance eligibility guidelines, and to wait for the remaining existing changes to make their way through the market before implementing any further changes.” Continue reading
BNN speaks with Kevin O’Leary, Chairman, O’Leary Financial Group comments on CMHC’s latest report on the riskiest real estate markets across Canada. He says the report is “kind of irrelevant” and that any cracks in the foundation of the housing market would be apparent from the condo market – something he is not seeing from the latest data.
The federal government is tightening mortgage rules, which are clearly aimed at slowing down the Toronto and Vancouver housing markets.
As of Feb. 15, there will be additional down payment requirements for homes that sell for between $500,000 and $1 million. The current 5% minimum down payment for the first $500,000 of the house price will be maintained, while requiring a 10% minimum down payment for the portion of the house price in excess of $500,000.
For example, someone buying a $700,000 property would be required to make a down payment of 5% on the first $500,000 ($25,000) and 10% on the remaining $200,000 ($20,000). That would equal a total minimum down payment of $45,000, or 6.4% per cent of the total purchase price.
The 5% minimum down payment for properties up to $500,000 remains unchanged and Canadians who already have a mortgage won’t be affected.
Without house insurance, you are extremely vulnerable to the cost of repair and replacement in the event of an incident; and most of us have a home insurance policy. However, there are many elements located in and around your home that make your policy more expensive.
1. Precious items: Wine collection, jewelry, art items, musical instruments, precious watches, expensive furs – anything that can potentially increase the size of your loss will result in higher rates. Consider a separate policy or rider for your luxury items.
2. Stove / Fireplace: Fire is great when it is contained, but fireplaces and wood stoves could cause fire and smoke damage. Rather than pay extra in your premium or have to undergo an inspection, switch to the safer gas or electric options.
3. Oil-based heating: Insurers prefer electric or forced-air gas furnaces, since oil-based heating systems are more likely to cause environmental and fire damages e.g. via oil tank leakage.
4. Business at home: If your house is also your head office, you are considered a greater risk as your personal and business property both require coverage. If your home is also used for particular types of business, such as bed and breakfasts, daycare, etc. it also means an additional risk in eyes of insurers. Continue reading