The Canadian Dollar, Housing Starts, and Retail Sales Up

Good news for Canadians! Seasonally adjusted housing starts are up 19.6% for September over August. Multiple starts account for the bulk of the increase with urban starts up 22.9%. Urban starts were up in all five regions of the country. But that's not all. Canadian retail sales were up 4.3% for the month of August over August of 2006 according to CMHC. That equates to a 0.7% rise for this August rather than the 0.5% rise predicted by Bay Street. This likely reflects the 8% increase in income growth reported so far. Both the number of jobs and the job quality index have risen to the highest levels in 2 years.

Greg Anderson, director of foreign exchange for the Netherlands’ ABN Ambro bank in Chicago believes the increases in Canadian dollar prices can be credited to the recovery of gold, oil, and copper prices. Canadian dollar increases against US currency were around 11.88%, 5.52% against the Euro, and 8.80% against the British Pound. Bank of Canada Governor David Dodge believes much of the increase is due to market speculation, stating that though terms of trade have improved over the last three months the improvement was not sufficient to justify the increase.

Finance Minister Jim Flaherty seems to agree but has recommended that retail prices of consumer goods be rolled back to US prices to reflect the relative currency values between US and Canadian dollars. This will help stock turnover, eliminating stores of old stock. Some major retailers, like Wal-Mart and Zellers have already begun to adjust prices.

Dennis Gartman, a writer for a US investment newsletter, commented that the Bank of Canada is not likely to respond to comments from Dodge and Flaherty with lower rates. Sal Guatieri, economist for BMO Nesbitt Burns (wealth management division of Bank of Montreal) speculated that if downside risk is supported by data, a rate cut may appear early next year.

Mission Residents and REALTORS® Help Local Charities

The 13th Annual REALTORS® Care Blanket Drive runs from November 26 to December 3, 2007. Last year REALTORS® from Fraser Valley and Greater Vancouver collected over 3,300 bags of warm clothing and bedding and delivered them to over 30 local charities. Members take great pride in the fact that Blanket Drive contributions stay in the communities in which they are donated. Last year in Mission we collected 132 bags of clothing, blankets, etc. to go to the local charities, helping those in OUR community who needed it most. The importance of the Drive cannot be stressed enough. These are tough times for some individuals and families.

What is most needed are warm and waterproof clothes - mostly for men, but also for women and children. So please donate any socks, shoes and boots, pants, jeans, sweaters, jackets, hats, toques, scarves, and gloves that you are able to do without ... because someone else can't do without them. Also much needed are blankets and tarps. Your donations will be very much appreciated and will be accepted at any Mission Real Estate office between Nov. 26 and December 3rd, 2007. If you have donations and are unable to make it to a local real estate office, please call me and I will be happy to come and pick them up from you.

Photo: REALTORS® (L to R) Dean Tweedle, Jodi Kehler, Debbie Leighland, and Cyndi Polovina are some of the local volunteers of the 50 REALTORS® from Chilliwack to Squamish helping make the 13th Annual REALTORS® Care Blanket Drive happen.

Timing Your Listing

It was suggested by one local REALTOR® in a flyer delivered by Canada Post today that the

inventory in the fall and winter tends to be low, and therefore, the last quarter of the year is a great time to sell.

The statistics released from the Fraser Valley Real Estate Board for September, suggest otherwise. Inventory is quite high right now, and we are experiencing a Buyer's Market, (also according to the statistics package for September.)

That is not to say that this is not a good time to sell. Winter prices can be a few percentage points lower than the peak price in spring/summer of the same year, before climbing back up in February/March of the following year. If, as has happened historically at this time of year, we are in a temporary period of moderately declining prices, then a seller could sell as the downward swing begins, only to actually buy a month or two later as the prices have continued to follow the downward decline. (Sell at -1% and buy at -3%, for example). If selling a home whose peak value this year was $400,000.00 and prices have by that time dropped 1%, they could see it as a loss of $4,000.00. However, if they are then buying a home for $300,000.00 and prices have by that time dropped 3%, they will have saved $9000.00 on that purchase, for a net gain of $5,000.00. If they were trading up to a home of value of $580,000.00 and prices had dropped from the peak value by 3%, they would save $17,400.00 on their purchase and be $13,400.00 ahead. So, whether upsizing or downsizing your mortgage, you would be financially wise to sell at this time, and make your purchase before the price upswing.

There is also a huge benefit to buying in the winter, whether it is your first home purchase, or not. You will see the home as it shows in the winter months, and be able to tell much more about how well the home systems are performing (windows, roof, humidity control, etc.)

Your particular situation of circumstances must be considered before a decision regarding timing your listing can be made. There are also benefits to listing in the spring, for some sellers, depending on their personal set of circumstances. I would be more than happy to review the statistics with you and help you assess your best time to list, based on your situation. Please never hesistate to give me a call for a Free Market Evaluation, and/or advice regarding the best time to sell.

Wishing you and your families a happy, healthy fall and winter,

Cyndi Polovina

July Sales Climb in the Fraser Valley

Sales on the Fraser Valley Real Estate Board's Multiple Listing Service® (MLS ®) in July 2007 were the second highest on record for that month.

A total of 1,984 sales were processed through the MLS ® in July, an increase of 21% compared to 1,635 sales the same month in 2006, and only a 3% decrease compared to the strongest July on record, 2,051 sales in 2005.

Jim McCaughan, President of the Fraser Valley Real Estate Board, attributes July's near record sales to a number of factors. "BC's economy continues to hum along, Fraser Valley REALTORS® are receiving a strong influx of new listings and some of our clients are feeling a little uncertainty about where interest rates are going. It all adds up to a desire to invest in real estate now."

"Average annual price increases remain solid, however we are seeing price increases start to moderate on a month to month basis," says McCaughan.

In Mission, B.C, the average price of a single detached home went from $332,071 in July 2006 to $387,293 in July 2007, a change of $16.6%. For townhouses the change was 14.1%, with the average price going from $252,600 to $288,333. The largest gains were made on Mission apartments. The average price of the apartments sold in July 2006 was $185,750, compared to an average of $232,466 in July 2007, a whopping change of 25.1%!

If you are in need of a Free Market Evaluation to find out the value of your Mission, B.C. or Abbotsford, B.C. home, please give Cyndi a call at 604-820-7733.

Prices and Selection Still Strong

July 4, 2007 Mission and Abbotsford Statistics Update

Statistics released by the Fraser Valley Real Estate Board today show that June 2007 was one of the best Junes on record. There was only a 3% decrease in sales from June 2006, which was the second highest June on record. There was however a 39% increase in the number of active listings compared to June of last year, leaving more selection for buyers, and allowing them more time to make a decision on which home to buy.

The average price of a single-detached home in Mission climbed from $341,928 in June 2006 to $387,393 in June 2007, an increase of 13.3%. In Abbotsford the same average for those months went from $388,280 to $428,091, an increase of 10.3%.

The question on everyone's minds seems to be "can prices continue this upwards trend?" No one can tell for certain. However, based on the strength of the B.C. economy, the current consumer confidence level, and, of course, the landlock that we have in our region, there is no reason to expect any significant downturn in prices without an economically significant event occuring.

There is only so far east that people are willing to move and still commute to Vancouver. The mountains on the North shore and the border to the South, the water to the West, and of course, the Agricultural Land Reserves throughout the Lower Mainland and Fraser Valley, all leave a shortage of land to develop. Add to that the fact that B.C., and in particular, the southwest portion thereof, is a very desirable place to move for both immigrants and people from other parts of Canada, and we have significant housing demand. Supply and demand dictate that since supply is limited and demand is strong, there is no reason for a significant price decrease in the near future. So First-time Buyers take note: housing is not likely to become more affordable than it is now, so you may want to consider a "stepping stone" approach to home ownership and get into the real estate market now. Buy an apartment, townhome or condo, and plan to upgrade down the road when you can. Don't miss your chance of home ownership, it definitely has many rewards! Call me today.

Real Estate Market Offering Best of Both Worlds!

Buyers in the Fraser Valley have a much better home selection than this time last year and sellers continue to see strong return on their investment.

We are still in a sellers' market, but we are on the balanced end of that category. A more balanced market is good news for buyers because it gives them a wider selection and more time to think about a home before they make a decision. However, the news is still good for sellers since home prices have remained strong and stable in all catetories due to continued high demand.

The best way to get the highest return on your investment is to engage the services of a licensed, professional REALTOR® to help you market and negotiate the sale of your home.

Spring Market Heating Up!

Although sales in April were down about 5% from last year, listings were up approximately 20% from the same time last year, increasing choices for consumers. This has increased the excitement in the market.

Prices remain high, and the best way to ensure that you keep more money in your pockets is to hire a REALTOR® that you trust to protect your best interests. A trained REALTOR® is knowledgeable about market value and can negotiate you the most favourable price and terms for your sale or purchase. If you don't have a trusted real estate professional in your speed dial, Trust Cyndi to give you the VIP Treatment that you deserve and to ensure your happy and successful real estate transaction! Call me today!

Spring into Action!

If you are thinking about selling your home this year, there is no time like the present. This is the time many home-owners start considering the sale of their home, and there is good reason for that. The average sale has completion dates about two months out from the contract date, and, in our market right now, it can take over a month to get a contract in place. Homeowners with children in school need to list now in order to sell their home in time to search for, and move into their new home, before the new school year starts in September. Even if you, personally, don't need to worry about kids changing schools, consider your potential buyers!

Consider this timeline: Late April listing = mid-to-late May offer placed and accepted = late August completion. Yikes! Better get moving...

Let me Spring into action for you to get your home sold quickly and for top dollar. I just sold two Mission homes for top dollar in only eleven days (far under the Mission days on market average for March of 77 days). I would like to do the same for you. Call me.
You won't regret it!

Happy Easter!

Wishing you and your families a very Happy Easter.

I have been hopping along making sure that my clients are well taken care of, so I haven't had time to post much lately. If anyone has a suggestion for a post topic, please let me know.

Respectfully,

Cyndi Polovina

Market Still Going Strong

Prices are continuing to climb and there does not seem to be any shortage of people wanting to buy homes in the beautiful Fraser Valley. The market is still very active, albeit slightly slower than the last two years, which had incredible numbers of homes flying off the market.

All in all, we will see a more balanced market this year. Houses will take a bit longer to sell than they would have last year, and there will be much fewer bidding wars. This will allow Buyers to take their time to look at a fair number of homes before making their decision. What a relief!

Last year if Buyers thought a home was close to meeting their needs, they had to rush to put in an offer before it got snatched up by someone else. Bidding wars were not uncommon, when homes were priced well, and it was a very strong Sellers market indeed, with a shortage of inventory compared to the number of people looking to buy.

Working with a REALTOR® is still your best bet of getting the best price for a home you have to sell, or getting the best price and terms on the home you want to buy. REALTORS® are knowledgeable about market value, so they can price your home correctly and ensure that they use their marketing expertise to gain the maximum exposure of your property. They also will put their negotiation and contract skills to work for you, to ensure that your best interests are served.

If I can be of any help to you, please do not hesitate to give me a call.
604-820-7733.

Cyndi Polovina

Great News for First-Time Buyers!

New Threshold for Property Transfer Tax Increases Housing Affordability

The Property Transfer Tax (PTT), a B.C. government tax collected on the purchase of a home sale, can add thousands of dollars to what buyers need to pull out of their pockets to complete on their purchase.

The government recognized the burden this put on first-time buyers, who already needed to save a significant amount of money for a down-payment and closing fees. Therefore there was an exemption available to first-time buyers, who would be exempt from the PTT if they bought a home with a value equal to, or less than, the threshold.

Immediately prior to February 21, 2007, the exemption thresholds for first-time buyers was $325,000 in the Capital, Greater Vancouver and Fraser Valley Regional Districts and $265,000 for the rest of the province.

Last September, the B.C. Real Estate Association recommended the government develop a phased three-year plan leading to elimination of the Property Transfer Tax (PTT) by 2009, beginning with an update of the tax exemption thresholds for first-time buyers to $375,000, province wide.

The government has adopted the latter part of that recommendation word for word, and the new $375,000 PTT exemption threshold for first-time buyers came into effect on February 21, 2007. The amount applies to all areas of the province, replacing the former threshold.

This is an important change since home prices have been steadily rising, and $325,000.00 doesn't buy what it used to. With the threshold now at $375,000.00, first-time buyers have a much greater selection of properties to choose from that still allow them this important tax-saving exemption. Great news for first-time buyers!

Home Ownership has Some Advantages

Recently a member of our Fraser Valley Real Estate Board shared an excerpt from the December 25, 2006, issue of Maclean’s magazine, and I would like to share some of the details with you:

Apparently a recent study by Statistics Canada was full of good tidings about the wealth of Canadians. The article says that the total value of Canadians’ assets is up 42 per cent since 1999, to a staggering $5.6 trillion. And the net worth of the median Canadian family now stands at $148,400.

Although most of the published reports on the study focused on the increase in household debt, which also rose substantially to $760 billion, a closer look at the study reveals not a dangerous predilection for careless spending, but rather an astute investment in both personal wealth and social stability.

It turns out that about three-quarters of total household debt is mortgages. Credit card debt is a mere 3.4 per cent. This great emphasis on mortgage debt has pushed the rate of home ownership in Canada from 59.6 per cent to 61.9 per cent over the past six years.

The article goes on to explain that not only are the financial benefits of owning your own home substantial to families and individuals, (since the home represents the bulk of Canadian families’ personal assets as well as a kind of retirement savings program), but the country as a whole also gains from broad-based home ownership. Homeowners tend to be regular voters, are more engaged in their local institutions, and contribute to their neighbourhoods in ways that renters do not.

Rising home ownership rates reflect a general sense of optimism in Canada. Even higher levels of debt would thus be welcome, if it meant more Canadian families were getting their own bit of land.

I have helped first-time buyers and repeat buyers to get the best possible value in their real estate transactions and I would like to help you do the same. If you are in need of a REALTOR® you can trust to take care of your best interests in your home purchase or sale, please contact me at your convenience. I look forward to helping you!

PROVINCE WILL INCREASE HOMEOWNER GRANT THRESHOLD

British Columbia will raise the home owner grant threshold in response to significant increases in property values, Finance Minister Carole Taylor announced today.

“British Columbia enjoyed another year with a booming construction sector, strong real estate market and increased investment in our economy,” said Taylor. “We also recognize property values continue to rise across the province and that’s why, for the fourth consecutive year, we will increase the threshold to assist B.C. homeowners with their property taxes.

”The new threshold at which homeowners may be eligible to receive the full grant will be $950,000 in assessed property value, up from $780,000.

“Higher property value assessments are certainly a mark of our economic strength in British Columbia and demonstrate that this is a truly desirable place to live,” Taylor said. “On the other hand, higher values don’t always translate into more money in people’s pockets. Through this increase to the homeowner grant threshold, we can continue to make a real difference for B.C. homeowners today.

”Consistent with adjustments made over the previous three years, the new threshold ensures more than 95 per cent of B.C. homeowners receive the full grant.

The Home Owner Grant Program reduces the burden of residential property taxes for eligible homeowners. The basic grant entitles a homeowner to a maximum reduction in residential property taxes of $570. An additional grant of $275 is available if the owner is over 65, or permanently disabled, or eligible to receive certain war-veteran allowances.

Over the past year, assessed residential property values in British Columbia, including new construction, increased by 24 per cent. The new threshold will allow up to 41,000 homeowners, who would otherwise face a reduced benefit, to receive the full grant.

In Budget 2006, government also increased the basic grant from $470 to $570.

More information on the Home Owner Grant Program is available online at www.sbr.gov.bc.ca/hog.

One Big Home Selling Mistake You Don't Want to Make

Pricing your property too high is one of the biggest mistakes you can make when you list your home for sale. Obviously every seller wants to get the most money for his or her property. Unfortunately, the best way to do this is NOT to list your product at an excessively high price! A high listing price will sell your neighbour's house, not yours. Some prospective buyers will lose interest before even seeing your property. Also, it may lead other buyers to have unrealistic expectations of what you have to offer. As a result, overpriced properties tend to take longer to sell, and when they do finally sell, they end up being sold at a lower price than if they had been priced according to market data to begin with. Enlist the services of a professional REALTOR® to assist you in determining the correct listing price for your home. REALTORS® have access to the sale prices of homes in your area through the MLS®.

It matters who you select to represent your best interests. Choosing the wrong REALTOR® to represent you can be as disastrous as pricing your home incorrectly. Choose a REALTOR® who you like and trust to make sure that YOUR best interests are represented in your home sale or purchase. Trust Cyndi to protect YOUR best interests!

Rental Vacancies Tighten, Rents Rise

Canada Mortgage and Housing Corporation's annual rent market survey shows that the vacancy rate in Greater Vancouver is now the lowest in 17 years.

In Abbotsford, the average vacancy rate dropped nearly two percentage points from 3.8 per cent in 2005 to 2.0 per cent in 2006, stopping the recent trend of rising vacancy rates observed since 2002. Strong demand was observed for all bedroom types.

This has an obvious effect of allowing landlords to raise rents (within their legal rights, of course), which may mean that for some people the gap between renting a home and buying a home is closing.

One Important Tip To Buying The Best Home For Your Money!

Get "Pre-Approved" - Not "Pre-Qualified!" Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible.

Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of time to completion, are critical to a seller. In years past, it was always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc. So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.

I would be happy to provide you with contact information for a few different lenders for your consideration. Just give me a call at 604-820-7733.

Real Estate Market Bubble?

I would like to briefly tell you about the CMHC Market Insight Presentation that I attended today. This presentation was meant to answer the questions that REALTORS® in the Fraser Valley (and most other areas) are asked daily:

What are interest rates expected to do? Where's the market headed? Are we in a housing market bubble?

The answers that I will give here are applicable to the Fraser Valley of B.C., Canada, and may also apply to the Greater Vancouver area.

Well, the short answer is that for 2007, the interest rates are expected to stay rather flat. If any change occurs, it will be in the range of a quarter to three quarters of a point.

Due to the strong economy, labour shortage, low unemployment rates and interprovincial and international migration to B.C., demand for housing will remain high, which will keep housing prices high. There will most likely be fewer housing sales in 2007 compared to 2006, however prices are likely to increase in the order of approximately 8% over the year. Housing starts remain high in B.C. There were approximately 9,800 in 2006, many in Multi-Family units, and the number for 2007 is expected to be very similar.

Regarding the "bubble" question that many people are fearing may happen, the bottom line that is coming out of the mouths of most experts lately is that without a decrease in demand for housing, prices will remain high. As long as people find the Fraser Valley a desirable place to call home, and as long as people have secure, steady employment that gives them the means to buy a home, we will see high housing prices. The only thing that would cause prices here to fall would be a severe blow to B.C.'s economy, or for people to stop realizing what a beautiful place the Fraser Valley is to call home.

If I can be of any help to you, please do not hesitate to contact me. Thanks! Cyndi

For Sale By Owners Not Thinking About Prospective Buyers

If you are thinking of selling your home yourself, you may want to put yourself in the shoes of the Buyers who you are trying to attract.

You are most likely aware that it is the seller that pays the commission of both their REALTOR® and the buyer’s REALTOR®, which is why you are thinking of "saving money" by doing it yourself. If you are thinking about doing it yourself, please consider the following:

Ask yourself this question: Why would a buyer go to a FSBO website or respond to a FSBO ad in the paper instead of searching on the MLS and using a REALTOR®? I mean, what possible benefit does a buyer have by not using a REALTOR® to help them negotiate the best price on the home that they want to buy, when the cost of their REALTOR® is coming out of the seller's net proceeds of sale?

While I can't speak for all buyers of FSBO's, chances are that they believe that it is they that will save money, not the seller. These savvy buyers know that most homeowners don’t truly know the value of their home, and will often list their property for less than it is worth. Or, even worse for you, they could be very experienced negotiators and they know that they can bargain you down because they have refined their skills to manipulate people.

Are you a skilled negotiator who most definitely knows the value of your home and can ensure that you don't undersell yourself? If so, GREAT! Then you are also aware that when two people both know the value of a home and both are trying to end up with the "commission savings" in their pockets, the chances are that you will not be able to come to an agreed price and terms with them.

When you work with a REALTOR® to sell your home, you hire someone trained to negotiate to get you the best price and terms for your home. You also gain an expert in marketing to get the best exposure for your home and an ally who will protect you legally when writing the contract of purchase and sale.

There are many more benefits to using a professional REALTOR® to market and sell your home. If you want the sale of your home to go as smoothly as possible, to have your best interests protected and to sell your home for the most money possible, then you need to work with a professional REALTOR® to sell your home.

Amazing Generosity in Mission!
A Huge Thank You To All Donors!
Despite the extreme weather conditions the days prior to, and during the 2006, 12th Annual REALTORS® CARE Blanket Drive, Mission donations were up 65% compared to 2005. This is an amazing figure considering that across the Fraser Valley there was an overall decrease in donations in the ballpark of 30%. So I want to give a huge “Thank you” to all of you who were able to drop off donations during one of the coldest and snowiest weeks in memory!

(Photo: Cyndi Polovina and Terry Gidda with just a few of the 132 bags generously donated by Mission Residents.)

This was my first year being a Blanket Drive Coordinator and I may have even caught you on the phone or left you a voice mail to ensure that you knew about this worthy cause. I can only hope that my involvement and efforts to make people aware of the Blanket Drive was in some part the reason for this year's increase in success over last year. However, the realilty is that this year's incredible success was entirely due to the amazing generosity of Mission residents like yourself.

The dates for the 2007 Blanket Drive have not yet been set, but if you think you may have warm or waterproof clothing to donate at the end of this year to help those in need, please keep in mind that it generally runs in the last week of November and/or the first week of December, so hold on to your donations!

Buyers: Make your Internet home search easier with a free Virtual Office Membership (V.O.W.) Membership at www.missionproperties.ca!

With your free membership, you will be able to see listings the moment the Fraser Valley Real Estate Board loads them into the MLXchange database. No more 48 hour delay between what the public sees on other sites and what you can see with your free Virtual Office Website (V.O.W.) membership. Also:

1. View complete MLS® listings that include the number of days on market, list date, REALTOR® comments, Floor Dimensions, Previous Price, Satellite images with built-in street names and much more information available than the public MLS® source on the Internet.
2. Sort listings according to price or list date, and configure, edit, save, and delete your own searches to meet your individual needs.
3. Be notified by email the instant a listing is entered into the Fraser Valley Real Estate Board’s Database that meets your buying parameters.
   

Sign up for a free V.O.W. membership by clicking on VOW under Property Search at www.missionproperties.ca