Mission and Abbotsford Real Estate Information

Top 10 Effects Of The New Mortgage Rules

2011-01-25T16:07:00.000-08:00

I just read this article at:

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2011/01/top-10-effects-of-the-new-mortgage-rules.html

Very interesting predictions, indeed. The most interesting, and likely, in my opinion are these two:

1) A small portion of home buyers will sprint to buy homes with a 35-year amortization before March 18, followed by downward pressure on home prices after March 18 as the amortization reduction removes market liquidity

2) If amortization restrictions accelerate falling home prices, we’ll see somewhat greater default risk and more negative equity situations among low-equity homeowners

The bottom line for most people deciding whether or not now is the right time to buy or sell is their life situation. People with job transfers, experiencing divorce, with a growing family, or who are empty-nesters, will buy and/or sell without worrying about what the market is doing, assuming that they have the ability to do so. The mortgage qualifying changes may reduce the ability of a portion of the population to buy, which could have a negative effect on prices.

If you need help in analyzing current market trends, in order to help you with your decision to buy or sell, please give me a call. I'd be happy to help!

What's Affecting Your Credit Score?

2011-01-19T16:23:00.000-08:00

I just read this article at:

http://www.financialpost.com/personal-finance/What+affecting+your+credit+score/4126038/story.html

It isn't something that most people think about very often, but it becomes very important when you are applying for a mortgage on a house. There are a number of factors that affect your credit score, not just whether or not you generally pay your bills in full and on time.

I am not a financial advisor, and it could be misinformation, but I actually also heard recently that even if you pay your bills on the due date, your credit score wouldn't be as good as it would be if you paid it as soon as you receive it.

As the article explains, having too many credit cards can be a bad thing, but having too few can also be bad:
"Your utilization of credit is also a major factor — that’s your balance divided by available credit. It’s not based on whether you have a balance at the end of the month but it’s the balance outstanding at a given moment divided by your available credit.
“If that number exceeds 40%, that is typically a warning sign,” says Mr. Reid, noting a higher credit limit will keep that percentage down.
The last factors are longer term credit history and the breadth of your credit, somebody who has just one credit card doesn’t look as strong as someone who also has a line of credit and say a mortgage." click the link to see the whole article by Garry Marr, Financial Post · Tuesday, Jan. 18, 2011. (Read more: http://www.financialpost.com/personal-finance/What+affecting+your+credit+score/4126038/story.html#ixzz1C642R7KB.)

Changes Made To Ensure Long-Term Stability of Canada’s Housing Market

2011-01-18T16:32:00.000-08:00

On January 17, 2011, the Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

Reduce the maximum amortization period to 30 years from 35 years for new government- backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.

Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.

Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

In order for a person to be able to obtain a 35-year amortization, they would have had to have been prequalified with a lender prior to the announcement and they will have to have a firm (non-subject) offer in place on a home, with a lending comittment in hand by March 17th, 2011.

Top Ten Home Staging Ideas

2010-12-31T16:56:00.000-08:00

For many homeowners, the concept of professional home staging is shedding new light on how to promote a home in their real estate marketplace. If you’re thinking of selling your home, deciding on the best ways to organize your property before the “For Sale” sign is erected can help sell your home. Following are some tips that may help you sell your home faster and at a higher price.

1. Make a great first impression. Prospective buyers make up their minds about your house even before they get out of the car. To ensure they have the right idea, clean up your yard, get rid of unsightly weeds, and sweep/shovel your driveway and porches. Get out the rags and cleanser and spend 30 minutes scouring your front door, porch, railings and steps. Then tuck away all your recycling cans and bins at the back of the house or in a corner of the garage.

2. Declutter. A common phrase used to describe the importance of decluttering is: Clutter eats equity. So purge your closets, empty cupboards and box up small appliances. You may even want to rent a storage locker to keep items you simply cannot part with, while throwing out items you’ve collected over the years that you don’t want to take with you to your next home. This will also save you time during your big move. Ensure you pay close attention to your countertops and coffee tables as well.

3. Impersonal works. You want buyers to imagine themselves living in your home, so stash anything connected to your family or personal interests. Hide your son’s hockey trophies, store family photos and remove all traces of day-to-day life. This also included removing personal effects from the bathrooms.

4. Keep it fresh. There’s nothing worse than stepping into a house that smells of smoke, dampness or pet odours. The easy solution is to keep your windows open for 10 minutes a day. This strategy works better than deodorizers since a lot of people have allergies to artificial room fresheners. The oldest trick of all? Leave chocolate chip cookies baking in the oven. Yes, it’s hokey, but the smell does do wonders to help buyers bond with your home.

5. Declare war on grime. Cleanliness helps put a buyer’s mind at ease since it suggests that you’ve probably taken good care of your residence in other ways as well. So clean everything: walls, door handles, light fixtures and pantry cupboards. And don’t forget to dust your furnace room and furnace, since this makes your furnace look newer. Power washing windows, walkways, eavestroughs and pathways can also do wonders for your home’s exterior.

6. Hire a handyman. If you don’t have the time or expertise to deal with the aesthetics of your home, consider hiring a professional. Dripping faucets, cracked tiles and mouldy caulking around the bathtub can knock thousands of dollars off the price of your home.

7. Colour it up. Your single best investment may be a fresh coat of paint in key areas of your home. Try painting your front door and placing some urns containing seasonal arrangements on your front step or just inside the entryway. Remember that small touches can make a house seem cared for and important.

8. Reduce furniture. An easy way to create a sense of space is to get rid of some furniture. Moving a sofa and end tables into storage can give a small room some much-needed breathing space. If your furniture dates from the Mulroney era, consider packing it away and renting or borrowing some modern, stylish furniture or a couple of well-chosen pieces of wall art. Keep your rooms clean and simple like a hotel room or the showroom for a new house.

9. Lighten up. The brighter and sunnier a space, the easier it is to sell. If you don’t have the time or energy to clean all of your windows – inside and out – it may be a wise investment to hire a professional window-cleaning company. Thoroughly clean the shades on your light fixtures, change light bulbs and add floor lamps if an area seems dim. Finally, when it comes time to show your home, make sure all the lights are on, especially in hallways.

10. Add a touch of humanity. A couple of planters containing seasonal arrangements on your front porch, a vase of flowers on your dining room table, or even a simple rose in a vase can warm up a room. Candles can also do wonders in lighting and warming a room.

It used to be a good idea to stage a home. It set your home apart from the majority of other homes on the market which were not staged. Nowadays, with all the magazines and television programs aimed at this industry, it is almost a necessity.

I would be happy to help walk through your Mission or Abbotsford home to give you specific hints to prepare for helping you get it sold for the most money in the shortest time!

BCREA Mortgage Rate Forecast

2010-12-30T16:26:00.000-08:00

The unexpected rise in yields prompted a fairly dramatic re-pricing of mortgages in November. After falling to an all-time low of 5.19%, the 5-year mortgage rate has leapt 25bps to 5.44% while the 1-year rate increased from 3.20% to 3.35%.

Heightened volatility in bond markets could mean a re-testing of mortgage rates lows, particularly if a deepening Euro-crisis prompts a flight to safety in US and Canadian treasuries.

A more likely outcome is that mortgage rates will stay flat for the next quarter as investors re-evaluate growth and inflation expectations in the context of a QE2 world. Our expectation for 2011 is that rates will begin a slow march upwards, hovering slightly higher than current levels for the first half of 2011. Rates will then be prompted higher by expectations of renewed, but cautious, rate tightening by the Bank of Canada in the second half of next year.

The BCREA forecast for the 1-year mortgage rate to average 3.3% in 4th quarter of 2010 and to reach 4.4% by the end of 2011. The 5-year fixed mortgage rate will average 5.30% for the 4th quarter of 2010 before increasing to 5.90% in 2011.

For the full report, go to: http://www.bcrea.bc.ca/economics/forecasts/MortgageRateForecast.pdf

10 Worst First-time Homebuyer Mistakes

2010-08-15T19:49:00.000-07:00

According to a recent story in the Globe and Mail, (the full article can be viewed at:
http://www.theglobeandmail.com/globe-investor/personal-finance/10-worst-first-time-homebuyer-mistakes/article1647390/), there are 10 things a first-time buyer should avoid to maximize their success:

10) Not thinking about the future
9) Not choosing to hire a REALTOR®
8) Neglecting to inspect
7) Compromising on the important things
6) Being swept away
5) Lacking vision
4) Being too picky
3) Failing to consider additional expenses
2) Skipping mortgage qualification
and #1 - Not knowing what you can Afford

While it's good to familiarize yourself with Real estate procedures and tips, working with a professional Realtor® can help you to maximize your chances of success on your purchase. I can guide you through the process to make sure no important steps or information are missed. My specialty is helping buyers and sellers in Mission and Abbotsford save money and make educated decisions based on their wants and needs, combined with the current state of the local market.

Just as doctors know medicine, accountants know taxes, and mechanics know engines, REALTORS® know real estate. Your purchase or sale of homes and property is most likely to be successful with professional help.

Buyers on the Beach?

2010-08-07T20:27:00.000-07:00

We have had a beautiful summer so far. Based on market data, it seems that many people are getting out and enjoying it, rather than looking at MLS listings and going to view homes with their REALTORS®.

July 2010 sales in the Fraser Valley Real Estate Board (FVREB) area were the lowest July sales recorded in the past decade. Besides the weather enticing buyers away, the slow July in real estate sales is probably also due to a combination of other factors. Misunderstanding and fears about the newly adopted HST, combined with recent interest rate hikes, as well as tightening in April of mortgage lending requirements are my main suspects for the activity slow-down.

Thankfully, for those of us living in Mission, our beautiful District did not fair as badly as some other areas in the FVREB. Year-over-year, Mission's sales of residential detached (RED) homes were only down 33.3% compared to -47.3% in the FVREB. Comparing sales of RED homes in June 2010 vs. July 2010, the FVREB showed -39.3% compared to Mission's -27.6%.
Mission homeowners will be happiest with the benchmark pricing stats. The housing price index of a benchmark RED home in the FVREB declined 1.5%, while in Mission we actually registered a month-over month gain of 1.8%.

Large differences in sales trends often occur in the various areas of the FVREB. It is therefore very important to enlist the help of a local REALTOR®, who understands the area's current market trends, when you are considering the sale or purchase of a home. It is with the help and expertise of a Mission area real estate expert, like myself, that you will ensure a successful real estate transaction on the purchase or sale of a Mission property.

MANAGING THE STRESSES OF BUYING AND SELLING A HOME

2010-06-06T22:02:00.000-07:00

By Stanley Popovich, guest blogger

Many people deal with the anxieties of buying or selling a home. This process can be confusing to many people. As a result, here is a list of ways that a person can use to manage the anxiety of purchasing or selling a home.

The first step is to determine your goals in purchasing or selling a home. Determine what you want to accomplish. It will save you a lot of time and money in the long run if you know what you are looking for. Sit down and think about the overall goal of what you are looking for and convey this to your real estate agent. Some people like to write down their goals on a piece of paper so they have something to go back to when they get stressed.

Educate yourself on the steps of purchasing or buying a home. Go to your local bookstore and find some books that will explain the process of buying or selling a home. There are many books available that can inform you of the process and will help reduce the anxiety of the situation. Most importantly, you will be able to make smarter choices that will save you time and money.
Find a reputable real estate agent that can help you accomplish your goals. Ask some of your friends on who they recommend and get in touch with them. Referrals from people you know are a great way in finding a good real estate agent.

Get your finances organized. Make sure you have an idea on what you can afford and also make sure that your credit is good. The financial aspect of buying or selling a home does not have to be scary if you have a sound business plan and a realistic budget. Some people may buy a home that they can't afford and this can cause problems down the road. Determine what you can afford and develop a budget where you will be able to keep up with your bills.

In addition to using the services of a good real estate agent, try to get a friend who is more experienced to help you. Chances are good that you know someone who has purchased or sold a home. You could ask them for their assistance and ask them questions on what to do and what not do. Having a friend who can assist you along the way can really help reduce the anxiety of the process.

Read the fine print on everything before signing and do not assume anything. Ask questions if you are uncertain on some aspects of buying or selling a home. A good real estate agent will not mind if you ask questions, however you should do your part and try to educate yourself on the entire process.

There will be times when everything happens all at once. When this happens, a person should take a deep breath and try to find something to do for a few minutes to get their mind off of the current situation. A person could take a walk, listen to some music, read the newspaper or do an activity that will give them a fresh perspective on things. Once you calm down, you will better able to make the right decisions.

Purchasing or selling a home does not have to be a bigger deal than it has to if you take the proper steps. There is help out there if you get stuck or confused. The most important thing is to do your homework. Determine your goals, educate yourself on the steps to reach your goals, ask questions, and take it one step at a time. If you follow this advice you will be better able to reduce the stresses of purchasing or selling a home.

BIOGRAPHY: Stan Popovich is the author of "A Layman's Guide to Managing Fear Using Psychology, Christianity and Non Resistant Methods" - an easy to read book that presents a general overview of techniques that are effective in managing persistent fears and anxieties. For additional information go to: http://www.managingfear.com/

Relax: It's Just The Housing Market Cycle

2010-05-26T16:41:00.000-07:00

Here is the summary from a report from Gregory Klump, the Canadian Real Estate Association's chief economist, that was released today, May 26, 2010.

• Canadian home prices are unlikely to undergo U.S.-style correction.
• As part of a normal demand-driven housing market cycle, the price to income ratio reverts from its peak to its long-term average by way of income growth and stable prices.
• Homes purchased by retirees with accumulated wealth, not financed with income, may be upwardly skewing the British Columbia and national price to income ratio.
• Based on the longer-term relationship between price and income, the national price to income ratio will soon revert to its long-term average via increases in income, not sharp price declines.
• Warnings of a U.S.-style correction in Canadian home prices ignore solid Canadian mortgage market trends.
• Mortgage holders in Canada have borrowed conservatively and are accelerating mortgage repayment, providing options for the small proportion of homeowners that may face financial difficulty when their mortgage is renewed at a higher interest rate.
• Canada will avoid a massive oversupply of homes and a sharp drop in housing demand, so a U.S.-style correction in home prices is unlikely.

The information in this blog has been taken from a report provided by CREA and may not be appropriate for other purposes. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. The report contains economic analysis and views, including those on future economic and financial markets’ performance. These are based on certain assumptions, and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. Cyndi Polovina, Landmark Realty Mission Ltd., CREA and its member Boards and Associations are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered

Active Spring Market in the Fraser Valley

2010-05-05T12:16:00.000-07:00

It is not uncommon for us to see a surge of listings in the Spring, but this year's number of active listings in April, in the Fraser Valley, was second only to the April of 1995. There is a huge volume of listings available from which Buyers can choose their dream home, which is definitely affecting home values.

As with anything from widgets to oranges, with higher supplies and lower demand come lower prices. Fortunately the demand in the Valley remains high, and this is keeping prices stable. Prices remain rather unchanged, over the last few months, although year-over-year, we have seen a rise in prices of about 10% in most areas in the Fraser Valley, across most housing types.

Before I start giving you benchmark statistics to show you how prices have changed in the past year in various areas of the Fraser Valley, I need to explain the "HPI benchmark home" briefly. The HPI (Housing Price Index) is akin to the CPI (consumer price index.) In order to compare apples to apples, so to speak, a "benchmark" home is defined in an area, as being indicative of an average home that is sold in a given area. In the Fraser Valley a "typical" or benchmark single-detached home is 15 years old with a lot size of 7405 sqft, nine rooms, two bathrooms, a fireplace and a one-car garage. The idea is that if we measure how the "typical" home has changed in price, we can know how prices in all segments of the market have changed in price. It also enables us to compare prices in Langley with prices in Mission, since we are comparing the same kind of home, but in a different area.

While the Fraser Valley as a whole saw the HPI rise 13% year-over-year, April 2009 to April 2010, in Mission, the rebound from the price declines of 2008 and 2009 hasn't been as quick or significant. The price of a benchmark home in Mission only rose about 2.3% year-over-year, compared to an increase of a benchmark Abbotsford home from about $395,000 to about $442,000, or almost 12%!

When you compare benchmark pricing of $354,307 in Mission to a benchmark Surrey Central home at $533,000, or a benchmark Langley home at $523,000, you can see that there is clear value in buying into the beautiful communities of Abbotsford and Mission.

With prices in Mission still being depressed compared to other areas, there is great value in buying a home in Mission, which is only about an hour's ride from Downtown Vancouver by the comfortable and affordable West Coast Express train. Mission is a fantastic, family community with many amenities and services. I am proud to call Mission home, and I would welcome the opportunity to show interested buyers why they should consider purchasing a home here, or in our neighbour city, Abbotsford.

As an area expert, and professional Realtor, I can advise you about area amenities and also advise you about what pitfalls to look out for whether you are buying your first home, retirement home, or your dream home. I look forward to helping you make you home buying experience a positive one!

The Dreaded HST and the Housing Market

2010-01-18T13:21:00.001-08:00

What is the proposed HST going to do to the housing market? Even more worrisome is the forecast that interest rates are likely to rise around the same time as the HST kicks in. Low interest rates have boosted affordability and the combination of low interest rates and relatively lower housing prices have drawn first-time buyers into the market in droves. In fact, where first-time buyers would have made up approximately 25% of December sales, they actually accounted for 40% of December 2009 sales.

The proposed HST (Harmonized Sales Tax) will combine the PST and GST. Some items which were previously PST exempt will now carry HST, meaning a whopping 7% increase in taxes on those items. In recent years, purchases of building lots have only carried GST, not PST, but, if the tax comes into effect July 1, as expected, HST will apply, increasing the cost by 7%.

New home sales have also only carried GST, with some rebates allowed if the home was to be owner-occupied. That is also the case with the proposed HST. HST will apply on new homes where the Buyer takes ownership or possession on or after July 1, 2010. There will be some exemptions and threshold limits that may mean rebates of the tax for some home buyers.

Local Real Estate Boards did have some success in lobbying the government for increased thresholds for the proposed tax. It appears that the maximum threshold for rebates on HST will be raised from $400,000 to $525,000; Over $525,000, everyone will receive a rebate of $26,250, (71.43 of the provincial portion of the HST), if the home is going to be owner-occupied.

So, what does this mean for the real estate market? In Mission, the impact on prices and activity should be less severe than in more urban areas, since a large portion of our new homes being sold are below the threshold of $525,000. Independent of any interest rate hikes, which have a lowering effect on prices, due to decreased affordability, the newly-imposed HST could potentially have the impact of increasing prices to some degree, albeit not likely by as much as 7%. The problem is, what will that do to market activity?

The HST doesn't only affect new homes, since activity in one market segment affects activity in other market segments. Regardless of whether your home is the kind of home that first-time buyers are purchasing, or if your home is more in the second-home range, there are always “trickle down” effects of activity. For example, a person selling their home to trade-up for a newer one may not be able to afford a new build, but maybe you can. Perhaps your home is exactly the one that someone would want to trade up to, even if it is no longer meeting your family's space requirements. Perhaps this is the year to make that move you have been considering, to get into a brand-new home before the HST kicks in? (Particularly if you are thinking about buying a new home worth more than $525,000.)

The greatest likelihood is that the looming HST will mean that the number of sales will decrease after May 1, 2010, as many people will make sure their completion dates fall before July 1 to avoid the HST. I am expecting a very busy spring market, with lots of sales. But the likelihood is that the summer and fall months will experience fewer sales than we have experienced in recent months. And, don't forget that a drop in demand usually means a drop in prices, so waiting too long could cost you money.

With my skills, knowledge and area expertise, I can help you to use the right strategies that work to get your Mission home sold. Call me to help you make the most important decision of your life an INFORMED decision. Call Cyndi Polovina today at_604-820-7733!

15th Annual Realtors Care Blanket Drive

2009-10-13T10:14:00.000-07:00

Are you treating yourself to a new sweater or coat this fall? Consider donating your gently used one(s) to a worthy cause.

The 15th Annual Realtors Care blanket drive is coming up from November 30th to December 7th. All donations received in a community are given to charities within that community to distribute to low-income families and individuals, and to the homeless.

As you can imagine, with the economy having suffered so much, there are more working poor than ever who could use a helping hand. Your donation of warm, waterproof winter clothing, warm, dry socks, scarves and gloves will go a long way to help those in need.

Put a smile on the face of a struggling member of your community, and let them know that people do care. Donations will gladly be accepted at most Real estate offices during the week of November 30 - December 7th. Lists of drop off locations will be posted around your community starting in early November. Have a happy, healthy fall!

Tips to Keep in Mind Between Your Mortgage Approval and Funding Dates

2009-09-03T15:34:00.000-07:00

In light of the new market realities and tightening of credit underwriting standards by both lenders and mortgage default insurers as of late, keep in mind that now – more than ever – it’s important to be careful what you do between the time your mortgage is approved and when it funds.
A few mortgage lenders and insurers have been doing something lately that they have not done in a long time – pulling new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.
Following are eight tips to keep in mind between your mortgage approval and funding dates:

1. Don’t buy a new car or trade-up to a more expensive lease.
2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, give me a call and I can let you know if this may jeopardize your approval.
3. Don’t change industries, decide to become self-employed or accept a contract position even if it’s within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.

4. Don’t transfer large sums of money between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.
5. Don’t forget to pay your bills, even ones that you’re disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!
6. Don’t open new credit cards. Again, just wait until after your funding date.
7. Don’t accept a cash gift without properly documenting it – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give me a call before you deposit it.
8. Don’t buy furniture on the “Do not pay for XX years plan” until after funding. Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue – especially if your approval was tight to begin with.
While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to me before doing any of the above just to make sure

The Right Specialist Gets the Job Done Right

2009-08-04T17:12:00.000-07:00

Would you hire an electrician to do your plumbing? How about using a veterinarian to perform your own open heart surgery? Or maybe you should just do it all yourself to save money? Not a good idea. Realtors know Real Estate. And you need a Mission Realtor to market your Mission area home, to ensure you maximize your proceeds of sale.

In the Fraser Valley and Greater Vancouver area there are very distinct market trends from one area to the next. As you can see in the graph above, there are times when the average price in Mission is increasing, even as the average price in Abbotsford is decreasing, even though they are just across the bridge from each other.

Just as the recession has affected the Ontario economy more than the BC economy, market changes in one area of the Fraser Valley can be quite different than in other areas.

A Mission area specialist is in hundreds of Mission homes each month, researches values on Mission homes each day, and has experience listing and selling homes just like yours, in your area, your neighbourhood, or even on your very street.

Don't take a chance and hire the wrong person for the job. Hire your Mission area specialist, Cyndi Polovina to make sure that your home sale is a successful one!

Our Shifting Market: Help is Needed

2009-04-09T09:47:00.000-07:00

In a shifting market, such as we are in now, it is more important than ever that people who are considering the purchase or sale of real estate are represented by a skilled, knowledgeable Realtor who will represent their best interests.

Realtors are not merely salespeople for houses. More is needed than a knowledge of your home's value, and an ad in the paper, in order to sell your home. Many people do not realize that Realtors are trained professionals and are members of professional organizations with strict codes of ethics and guidelines on professional standards that must be maintained. There are also continuing education requirements and regular legal updates that are important to maintaining the best possible service to our clients. That is something in which I take pride. Personally, I am a member of the Fraser Valley Real Estate Board, the BCREA, and CREA. I take my obligations and agent duties to heart, and I represent my clients as I would wish to be represented if I were in their shoes.

In a market such as we are in now, which is rapidly changing, it is more important than ever to have someone looking out for your best interests. A skilled Realtor will ensure that you are protected on many levels.

One is of course to ensure that you are getting good value on your sale or purchase. Correct pricing is critical for sellers so that money is not left on the table, and it is vital to ensure that the home is priced considering market trends. That balance is very delicate, and a skilled professional can best advise you. A Realtor can also advise you of minor repairs or improvements that should be completed before listing your home. Often these minor items will pay for themselves (and then some!) Some Realtors, such as myself, may also be able to help you to stage your home to both get you the best value and sell more quickly than homes which are not staged.

As a buyer, the most important thing in a declining market is to choose a home with lasting value for you and your family. A good Realtor has knowledge of what features in homes hold value, and can also give skilled, objective advice to help you make a choice that will ensure the lasting value of your investment.

It is always the right time for certain people to buy or sell real estate. The question is whether or not now is the right time for YOU. A Realtor can help you to weigh all your options and give an objective view on the current market and on your home's value.

Furthermore, Realtors protect their clients on paper, by way of the contract, so that details such as included items and deposit monies are accounted for. If there is to be a long time before completion, or the contract is subject to the sale of the buyers' home, in a shifting market, more than ever, the Realtor must ensure their clients' interests are protected.

I would be honoured to take on the duty of representing you in your purchase or sale of real estate. Please contact me at your convenience.

Fantastic Time to Buy (or Trade Up)

2009-04-02T10:28:00.000-07:00

Qualified first-time buyers should be very pleased with themselves for not having given into the hype of the past few years and not having jumped into the market at that time. The steeply rising prices that we were experiencing, with no apparent end in sight, had many people "chomping at the bit", so to speak, to buy a home.

Ironically, with prices having come down significantly over the past year, and interest rates amazingly low, increasing affordability by leaps and bounds, there seems to be no urgency for the remaining first-time buyers to buy. But truly, now IS a great time to buy.

There seems to be a prevailing opinion among buyers that prices will continue to fall for some time. That may or may not be true. The problem with this thinking is that there is always a lag period between when the market actually starts to correct, and when it is obvious (to everyone) that the recovery has begun. (See graph). By the time that it is obvious to everyone, you will not only have lost some of your "price erosion savings", but you will lose your negotiating power.

If you are investing in real estate for the long-term (i.e. this is to be your family home for a few years to come), trying to time the bottom of the market is more or less irrelevant. If, for example, you continue to rent a few more months, while waiting for the market to drop a bit further, a couple of different things could happen. The market could stay the same, in which case you have thrown more rent money towards your landlord's mortgage instead of your own. The market could begin to rise, in which case you now scramble to buy (along with the others in your situation), and now find yourself in a much less powerful negotiating position. Or, in the ideal situation, the market drops another percent or even two. O.K., assuming a 2% drop, the $400,000 home is now $392,000.00. But you have spent money on rent during that time instead of paying down your mortgage for those few additional months, and what about paying yourself first? What about the stress of being "in limbo" for that much longer, not starting your new life in your new home? When you look at the affordability of that $8,000.00, with interest rates as low as they are now, you are talking about a little more than a dollar a day. For only a dollar a day more on your mortgage, you are going to put off making a move that will change your life for the better? You are going to put up with your cramped rental situation instead of moving to your dream home FOR A BUCK A DAY!??? Or, for those trading up their home, (which is lacking some bells and whistles), for their dream home, how much money are you really saving by waiting? Any savings on the home you are buying is also being sucked out of your equity in your current home as the market falls.

The bottom line is this: If you find a home that meets all or most of your criteria, that is in your price range, and it feels like a home in which you would be happy, BUY IT! Don't put it off waiting for the market to do what there are no guarantees it will do. Your dream home may not wait for you. Selection is very high now, in this buyer's market. You have a better chance of finding a suitable home now than you will once the market starts its correction. Start living now! You and I have no idea when the prices are going to start climbing back up again. There are already signs of life in the Fraser Valley Real estate market. The statistics I just viewed from the FVREB are as follows:

March 31, 2009: listings 3028, sales 1008
February 27, 2009: listings 2369, sales 682
March 31, 2008: listings 3278, sales 1317

So, as you can see, the sales activity from February to March has increased significantly, and is not far behind the 2008 numbers. The listings are actually down from March 2008 over 2009, so that creates pressure on prices as inventory levels drop (supply and demand).

This is one of the most affordable times to buy that we have seen in many years. Don't miss the boat!

I can help you to make your dreams come true. Call me to help you make the most important decision of your life an INFORMED decision.

Housing Market Update

2008-10-07T20:26:00.000-07:00

I just read a very sound report from Scotiabank Group titled "Special Update: Canadian Mortgages". It supports what was reported on the local news last week. The newscasters had interviewed Cameron Muir from the BCREA and a couple of local Realtors. One of the conclusions was that prices have dropped about 5% so far in the last six months, and we may expect up to the same amount again over the next 6 months to a year. The Scotiabank Group report speaks of "further fairly modest erosion of house prices." So, without putting a number on it, they are saying that prices will continue to decline a little bit for the next little while.

While I do not have a crystal ball to predict the future, I am presently of the opinion that a lot of the price drops in the last six months have been due to the fear factor, not sound economics. No one really knows how much the U.S. slowdown will affect our economy and Buyers are afraid to make the wrong decision. Perhaps they are afraid to buy a first home before the market bottom comes, thus paying too much, or afraid to get a mortgage on a home and then lose their income. So, a lot of people are in the "wait and see" mindset. The activity that we continue to experience in the market is from people who are not easily scared off by the media hype, or people who cannot afford to wait due to a change in their circumstances.

With the bailout package in the U.S. having just been put in place, it will take some time to see how much success it has to rescue the U.S. from a serious recession, or even a depression. Depending on the severity of the problems in the U.S., B.C. may not see much of a decline in the economy, since our economy is in some ways more insulated from the U.S. effect (due to fewer manufacturing jobs, more exports to Asia). We will definitely fare better than many other Canadian provinces will.

I believe that there are only two changes that are possible come the spring - either it will become clear that our economy has definitely declined and many people are losing their jobs, which will cause house prices to drop even further, or people will start to realize that our economy will weather this storm, and housing prices will start to rebound. I am optimistic that prices will rebound sooner, rather than later.

I believe that much of the media hype is just that - "hype" - and that time will tell how much our economy will withstand this. I believe that prices are not going to erode for very long, and agree with the experts that price drops will be slow and gradual.

For buyers there are still many reasons that now is the right time to buy. If they sit and wait, they may have less selection, and in the mean time, how many rent payments will they have thrown away? There are many homes that are fantastic steals due to divorces or job transfers forcing a quick sale, and there are definitely many deals to be had in this strong buyers' market. The options and inventory are abundant, so finding your dream home, with all the options and features that you want, is easier than it has been in years.

Also, for sellers, now is a great time to make an upward move, or perhaps to shorten your commute. If you have been wanting that extra bedroom or that larger lot, or to move closer to Vancouver, you can't lose right now. Any declines in your home's value have most likely been more than offset by the declines in the price of the bigger home, or the one closer to town.

Also, in a strong sellers' market, many sellers were tempted to buy first - writing an offer subject to the sale of their home. This is not a recommended practice because it generally costs you more money overall, but many people do it so they ensure they won't end up with nothing appropriate to buy, (with the slim pickings of a seller's market), and to be forced to rent until something appropriate comes available, meaning they have to move twice. With the buyers' market we are in, you can be sure that with the inventory levels we currently have, only the pickiest people will be hard-pressed to find a suitable home to buy. That leaves you free to sell your home before making an offer on a home to purchase, keeping more money in your pockets.

If I can be of service to you in the Mission or Abbotsford area, or if you need a referral to one of my colleagues in your area, please do not hesitate to contact me. My information is in the side panel. Have a safe and happy October!

A Market Shift = A Shift In Expectations

2008-07-17T19:28:00.000-07:00

Market conditions have shifted. After five years of blockbuster activity and double-digit price growth, market conditions have slowed, and now favour buyers in many areas of the province.

Residential sales have declined 22 per cent in the first six months of this year, while available resale inventory has grown by 54 per cent to 57,000 active listings in June. In the Greater Vancouver board area, where longer-term data is available, inventory is at the highest level since 1998.

Home price appreciation observed from 2004 to 2007 is less attainable in today’s market, and sellers’ expectations for such gains should be tempered. More generally, in a market favouring buyers, prices generally increase at or below the level of inflation. While the average residential home price in BC increased at a healthy 6 per cent per year since 1981, large gains are often followed by periods of price stagnation. Over-optimistic pricing by sellers will only inhibit the timely sale of properties, adding to inventory levels.

Buyers have more homes to choose from now than in previous years, resulting in greater freedom to compare the attributes and prices of similar properties in the market before making purchase decisions.

Despite current buyers' market conditions fuelled by housing affordability constraints and economic uncertainty, the economic and demographic backdrop in support of housing demand remains strong in BC. BC's unemployment rate remains near record lows, while the labour force participation rate hovers near historical highs. Meanwhile, the province remains a favoured destination for new migrants, reflected in the third-highest population growth among provinces during the first quarter of 2008. However, challenges continue in the forestry sector, and eroded consumer confidence may also be playing a role in a pull back of consumer spending.

Copyright British Columbia Real Estate Association. Reprinted with permission. BCREA makes no guarantees as to the accuracy or completeness of this information.

Ottawa Tightens Mortgage Rules

2008-07-14T14:41:00.000-07:00

Wednesday, July 9th, 2008 CBC News

The federal government said Wednesday that it is tightening the rules relating to government- guaranteed mortgages, even though there is no evidence that the Canadian market is facing the kind of turmoil that has disrupted the United States.

The new rules, set to take effect Oct. 15, are a "responsible and measured approach … to reduce the risk of a U.S.-style housing bubble developing in Canada," the Department of Finance said in a news release.

However, it also said that Canadian creditors' "prudent and cautious approach" to mortgage lending, as well as sound supervision, have "allowed Canada to maintain strong and secure housing and mortgage markets."

The government said the measures will apply to new, government-backed, insured mortgages. "Canadians who already hold mortgages will not be affected," it said.

The changes include:
Cutting the maximum amortization period to 35 years from 40.
Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.
Establishing a requirement for a consistent minimum credit score.
Introducing new loan-documentation standards.

The government acknowledged that the proportion of bank mortgages in arrears is stable at 0.27 per cent, "near the lowest levels experienced since 1990 and well below the highs of 0.65 per cent experienced in each of 1992 and 1997."

And housing prices don't show evidence of speculation, the Finance Department said, because they are "in line with economic factors such as low interest rates, rising incomes and a growing population."

Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt.

Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price.

The Canada Mortgage and Housing Corp. (CMHC), a Crown corporation, as well as private insurers provide mortgage insurance. The government backs CMHC and also private mortgage insurers so the private insurers can compete with CMHC.

Just over a year ago, Parliament passed a bill changing mortgage insurance to make home buying easier, and in 2006, CMHC eased the insurance rules.

Housing Market Update

2008-07-03T09:44:00.000-07:00

The latest US Unemployment rate held steady last month at 5.50%, however; year to date they have lost 438,000 jobs. Their Housing Crisis is not over and you can expect more gloomy news over the next few months.

Canada had some good news in April, reporting modest Economic growth. This gives us some hope that Canada will avoid a Recession. In Europe, the Central Bank recently increased interest rates by a quarter point to ensure their Inflation stays in control.

The Western provinces of Canada have much different economies than in the Eastern provinces, and at this point in time are in a good position to weather the surrounding economic storms quite nicely. That should translate to our housing markets in the West staying stronger than in the East, as our unemployment levels remain at extremely low levels, thus bolstering consumer confidence.

In the June 27, 2008 Real Estate Weekly for Mission, it was noted that the Canada Mortgage and Housing Corporation said that the seasonally adjusted annual rate of housing starts rose 3.5 per cent to 221,300 units in May from 213,900 in April. It attributed the increase to a rise in single-family home starts, which in April had reached their lowest level since May 2001. BMO economist, Doug Porter, was quoted to have said "It just shows that things are not deteriorating rapidly and continue to not disappoint: The Canadian housing market, after all, is still holding up relatively well." But he also noted that he believes there will be some slowdown in activity later this year.

The CMHC is forecasting around 214,000 to 215,000 home starts for 2008, as rising incomes, low unemployment and low mortgage rates boost home ownership. This number is slightly down from 2007, but still strong by historical standards. Economist Pascal Gauthier notes anything above 200,000 is fairly robust. "There's nothing that suggests construction activity is going to come off the tracks," Gauthier said. "It is really just a gradual cooling."

If you are considering a Real Estate move this year, I would be happy to offer a second opinion about your decision, with relation to what the market is currently doing. Feel free to give me a call or drop me an e-mail at the contact information noted on this page.

Best regards, Cyndi Polovina

HOMEOWNERS RUSH TO PAY DOWN MORTGAGES

2008-03-30T21:58:00.000-07:00

The Globe & Mail, March 19th, 2008

Canadians who have recently bought a home intend to pay off their mortgages as quickly as possible, with many already taking steps towards that goal, according to an annual mortgage consumer survey released Wednesday by Canada Mortgage and Housing Corp.

One-third of recent buyers said they have already made a lump sum payment to help pay down the principal on their mortgage, and 84 per cent said they are making payments on an accelerated basis, which shortens the original amortization period, according to CMHC.

A more conservative attitude towards debt has often been cited for helping buffet Canadian homeowners from the mortgage mess in the United States. The CMHC study shows this caution remains, said Pierre Serré, vice president, insurance products and development, at CMHC.

“The fact that new homeowners are working to pay down principal early and are accelerating payments is a good indication that this responsible behaviour will continue throughout the life of their mortgage,” Mr. Serré said in a statement.

The survey also indicated 84 per cent of respondents felt they had access to suitable housing options, and 88 per cent felt confident they could manage their debt.

The survey is conducted each fall, and based on a sample of more than 1,400 recent active mortgage consumers, including first time and repeat buyers, along with customers renewing and refinancing their mortgages. Results are considered accurate within 2.6 percentage points 19 times out of 20.

Canadian Residential Real Estate Future is Solid

2008-02-08T21:38:00.000-08:00

The Canadian Real Estate Association is confident that the future of the Canadian residential real estate market is solid. It appears that the largest threat of a 2008 slow-down in the Canadian residential real estate market is from predictions of doom and gloom becoming self-fulfilling if consumers are not informed about certain economic truths, and therefore lose confidence in the market.

There really are no economic reasons for people to lose confidence in the Canadian housing market at this time. Statistics show just how different the housing markets are in Canada versus the United States. According to the January 23rd, 2008 report from CREA "Three key economic ingredients will keep Canada's housing market on a different track from the United States. One is consumer confidence, the second is employment, and third is affordable interest rates." CREA president, Ann Bosley said, "The challenge for the Canadian housing market will be the extent to which employment and consumer confidence may be affected by a slowdown in the U.S. economy."

"Slower job growth, not massive layoffs, are forecast for Canada in 2008," CREA's Chief Economist, Gregory Klump adds. "Consumer confidence may be sideswiped by stock market volatility, and reports that chances of a U.S. economic recession will put the brakes on the Canadian economy. With slower job growth, a low unemployment rate, and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the sub-prime fallout with the help of lower interest rates."

Canada Lowers Growth Forecast, Signals More Rate Cuts

2008-01-25T11:03:00.000-08:00

The Bank of Canada lowered its growth forecast because of weak export demand from the U.S. and said it will probably cut interest rates again this year.

The central bank said today, in an economic forecast paper, that gross domestic product will expand 1.8 percent in 2008, , revising their October prediction of 2.3 percent. Inflation will slow to 1.4 percent in the second quarter, less than the bank's 2 percent target and October's 2.4 percent forecast, as a strong currency makes imports cheaper.

"The weaker U.S. economy will lead to additional downward pressure on Canada's export growth," Governor David Dodge said at a news conference in Ottawa after releasing the new forecast. "Further monetary stimulus is likely to be required in the near term.''

Policy makers reduced their main interest rate a quarter point to 4 percent on January 22, 2008, citing the need for more easing. It is widely believed that the new governor, Mark Carney, who becomes governor on Feb. 1, will cut the rate by a quarter point at each of his first three decisions starting March 4.

The central bank said in its report that "more accommodative monetary policy" in the world's industrialized economies should moderate a global slowdown, and that "lower policy rates" will support Canada's economy in the next two years. The bank said the forecast assumes further rate cuts by the U.S. Federal Reserve, which three days ago made an emergency cut of three-quarters of a point to stave off a recession.

Bank Of Canada Not Done In Cutting Rates

2008-01-23T10:40:00.000-08:00

The Bank of Canada cut the overnight rate, the morning of January 22, 2008, by a quarter-point to 4.00%. According to a TD Economics Commentary, this was broadly in line with market expectations; however speculation was building in the days leading up to the meeting that the Bank might be more aggressive given that financial market confidence had been severely undermined by the prospects of a U.S. recession and the possibility of some contagion to the global economy. Speculation of a more aggressive Bank of Canada decision climaxed when the Federal Reserve caught financial markets completely off guard this morning with an inter-meeting cut of 75 basis points. Nevertheless, the Bank stuck to their guns with a more measured approach, reflecting their view that domestic demand on this side of the border is expected to remain strong. However, the Bank made it quite clear in the morning’s communication that they are prepared to deliver more rate cuts down the road when they stated that “further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to return inflation to target over the medium term”.

The prevailing thoughts now among economists are that the next move on March 4th will be a more aggressive 50 basis point cut. That rate decision will probably not be the result of declining domestic demand. So far, the domestic side of the Canadian economy appears well grounded. In today’s communiqué, the Bank noted that "despite tighter credit conditions, strength in domestic demand is expected to remain supported by continued income growth associated with the increase in commodity prices since October, which has led to further gains in our terms of trade.” It is also important to remember that unlike their American counterparts, Canadians are not getting hit on both ends of their asset portfolios. Home prices remain on the upswing in most major urban centers, and there is little concern that the Canadian housing market will start to mirror the slump in the U.S. In fact, it is believed that national home prices will rise at a rate of 5-7% in 2008, compared to a U.S. market that will likely absorb losses of around 5% or more.

However, it is generally believed that by the next meeting, data on the U.S. economy will show clear signs of a sharp economic slowdown. Given that inflationary pressures remain strong, a 50 basis point cut would provide insurance against the degree to which a U.S. economic downturn would affect the Canadian economy. Certainly, inflation will not provide a barrier to a more aggressive Bank of Canada. The central bank has indicated that increased competitive pressures in the retail sector and the one percentage point GST cut at the start of the year will cause both core and total CPI inflation to fall below 1.5% by the middle of this year before returning to their 2% target by the end of 2009.

Following the March 4th meeting, there could possibly be another 25 basis point cut. However, because there is so much economic uncertainty on both sides of the border, the degree of additional rate cuts will depend on how events in the U.S. unfold and whether financial market confidence is still question.

2008 to Bring Balance to Fraser Valley Real Estate Market

2008-01-15T11:28:00.000-08:00

It is projected that both the Fraser Valley and Greater Vancouver will see another solid real estate year in 2008, with the trend being more selection for buyers and prices rising at a slower pace than we have seen in recent years.

The BCREA (British Columbia Real Estate Association), forecasts that the average residential price increases we will see in 2008 in the Fraser Valley will be approximately six percent. They expect that detached homes will rise approximately six percent, but that townhomes may rise as much as eight percent and apartments somewhere in between, at approximately seven percent.

Cameron Muir, BCREA's chief economist, projects listing volumes will continue to increase in the Valley resulting in, "less upward pressure on prices, reducing the number of multiple offers, and giving consumers and members more time for comparison and negotiation."

"How can prices continue to rise after so many years of increases?", you may ask. Muir says consumer confidence in the Lower Mainland and Fraser Valley remains high, "Despite some challenges in the economy such as the high Canadian dollar, we have strong job growth, wages rising higher than inflation and mortgage rates are expected to edge down in the first half of 2008."

Overall experts predict continued stability in Fraser Valley's 2008 housing market, with the resale market remaining sound, new construction at a steady level and hot demand for rental and apartment units, all due to underlying strong economic fundamentals.

The Canadian Dollar, Housing Starts, and Retail Sales Up

2007-12-18T10:34:00.000-08:00

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

2007-11-18T22:03:00.001-08:00

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

2007-10-17T18:30:00.000-07:00

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

2007-08-10T12:28:00.000-07:00

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

2007-07-04T21:09:00.000-07:00

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!

2007-06-11T11:12:00.000-07:00

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!

2007-05-03T11:27:00.000-07:00

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!

2007-04-24T16:04:00.000-07:00

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!

2007-04-07T10:34:00.000-07:00

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

2007-03-26T14:36:00.000-07:00

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!

2007-03-01T12:16:00.000-08:00

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

2007-02-08T15:33:00.000-08:00

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

2007-02-03T14:49:00.000-08:00

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

2007-01-27T11:29:00.000-08:00

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

2007-01-22T13:12:00.000-08:00

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!

2007-01-19T15:09:00.000-08:00

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?

2007-01-18T16:04:00.000-08:00

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

2007-01-17T10:08:00.000-08:00

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.

2007-01-14T13:33:00.000-08:00

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!

2007-01-02T13:49:00.000-08:00

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:

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.
Sort listings according to price or list date, and configure, edit, save, and delete your own searches to meet your individual needs.
Be notified by email the instant a listing is entered into the Fraser Valley Real Estate Board’s Database that meets your buying parameters.

Excellent Cookie Recipe (not low fat!)

2006-12-05T14:59:00.000-08:00

CYNDI’S FAVOURITE OATMEAL CHOCOLATE CHIP COOKIES

1 cup shortening

¾ cup firmly packed brown sugar

¼ cup granulated sugar

1 tsp vanilla

1 tsp baking soda
¼ cup boiling water
2 cups quick-cooking rolled oats
½ tsp salt

1½ cups all-purpose flour

6 oz semi-sweet chocolate chips

½ cup chopped nuts (optional)

Beat shortening, sugars and vanilla until light and fluffy. Add flour and salt; mix well. Dissolve baking soda in boiling water; add to flour mixture. Stir in rolled oats, nuts, and chocolate chips. Drop by teaspoonful, 2 inches apart, onto ungreased baking sheets; flatten with fork dipped in cold water. Bake at 350F for 10 to 12 minutes. Makes about 4 dozen cookies.

2006-11-05T13:45:00.000-08:00

Buyers Real Estate Market Returns!
Home selection for Buyers has increased significantly in the Fraser Valley and price increases have slowed slightly, making this the perfect opportunity for a Buyer to get a good deal on a home.

“This is excellent news for Buyers,” explains David Rishel, president of the Fraser Valley Real Estate Board, “Last month, we saw over 300 more single family homes come on the market
in the Fraser Valley compared to the same time last year. As selection increases, REALTORS® will have a better chance of helping Buyers find their dream home.”

Source: FVREB Stats Package
from 10/2006