Victoria Real Estate Board Green Task Force update

The work of the Green Task Force has been completed. I would like to thank Tony Joe, Past President of the Victoria Real Estate Board, for his leadership in bringing "Green Real Estate" to the forefront. Victoria was the first Real Estate Board in Canada to offer the National Association of Green Realtors and Brokers courses to it's membership. Close to 50 Victoria realtors have taken advantage of this online training. This increases knowledge and awareness of energy efficiency of homes which the realtor is able to pass along to their clients. As the construction and building industry moves ahead with both LEED and BUILTGREEN, we as realtors need to stay current with terminology, practices and products.

The Green Task Force also began the process of providing information packages for realtors full of locally relevant resources that they can give to their clients. An example of what is in the package are the government rebate programs available to home owners. These will be available to realtors in the next month or so.

The Green Task Force also decided to support the Ministry of Education's Greening of Schools program. Through the Community Relations Committee, funding will be made available to schools to help them with their projects.

I would like to thank the chair of the Green Task Force, Dennis Fimrite, for inviting me to join the Community Relations Committee as the Green Task Force representative, to enable easy transition of information.

Real estate warming up for spring

First-time owners drive market as housing affordability improves

By Carla Wilson, Times Colonist; With files from Canwest News Service
March 12, 2009

More people are starting to show up for open houses.

Photograph by: Darren Stone, Times Colonist, Times Colonist; With files from Canwest News Service

First-time home owners are driving home-buying as affordability improves across the country, says real estate company RE/MAX.

Canadian real estate markets are "reawakening" as the weather warms up, said Elton Ash, regional executive vice-president for RE/MAX of Western Canada. "First-time buyers seem more acclimatized to economic factors, even though the barrage of bad news continues to flow.

"Those who are secure in their jobs, have accumulated good down payments and have acceptable credit ratings continue to venture forward, undeterred by tighter lending criteria."

In Victoria, the market's upswing is reflected in the number of people showing up for open houses, Wayne Schrader of RE/MAX Camosun said yesterday.

That's grown from a few couples in January and the months prior to 30 to 50 people since mid-February, he said.

Residential sales in the capital region rose to 403 in February from 247 in January.

The market is continuing to build and 59 per cent of sales are for properties

that changed hands for less than $450,000, Schrader said.

"Many first-time buyers are looking to downtown Victoria and Esquimalt to realize their dream of homeownership," the report said.

The starting price for a single-family home in Greater Victoria has dropped to $310,000 this year from $350,000 last year, RE/MAX's report said. Schrader noted, however, that in the capital region, few single-family homes are available in that range, or even at $350,000 to $380,000.

The report also put the starting price for a 1,000-square-foot condominium at $190,000 this year, down from $200,000 last year. Many condos are priced at more than $250,000, Schrader said.

Low interest rates and government incentives to home buyers and for home improvements are helping to fuel the market, he said.

Stephen Gagnon, a mortgage broker with Mortgage Architects, who works with RE/MAX, is seeing an increase in the number of first-time buyers this year. Minimum credit requirements have tightened in today's market.

First-time buyers will often put a five per cent down payment onto a purchase, with many choosing condominiums or townhouses, or single-family homes with rental suites to help offset mortgage payments, he said.

Mortgage rates can change daily and a variety of options are available. If a buyer put five per cent down on a $225,000 condo and signed up for a five-year fixed rate of 4.15 per cent on a 35-year amortization, monthly payments would be just over $990, he said.

RE/MAX said people are being lured out of the residential-rental market by lower mortgage rates and home prices.

"Increased inventory and longer days on the market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade," the company said.

Of the 32 local markets

it tracks in Canada, RE/MAX said 22 of them, including Victoria, are "firmly in buyer's-market territory."

It said single-family homes can be found in 40 per cent of these locations for less than $200,000 and condominiums for even less in more than 70 per cent of the markets.

Millan Mulraine, economics strategist with TD Securities, agreed that conditions are ideal for first-time buyers to enter the housing market, or existing homeowners to upgrade, if their respective financial situations are secure.

While it's hoped improved affordability might plant the seeds for future recovery in the housing market, Mulraine said many economic impediments remain.

"The economy as a whole is not in great shape," Mulraine said. "The Canadian labour market itself seems to be turning belly up. For a number of people, it clearly isn't a time to be purchasing or getting into a big investment like buying a home when you're not sure about your employment situation."

The Canadian economy lost a record 129,000 jobs in January, according to Statistics Canada, and a loss of about 50,000 jobs for February is expected to be reported tomorrow.

Real estate market prime for first-time buyers

Many incentives for new homeowners

Marty Hope

Calgary Herald

CREDIT: Justin Sullivan, Getty Images While zero-per-cent down payments and 40-year mortgages have gone the way of the penny match, mortgage rates and housing prices are trending down--at least for the time bein

They're back--but if they're not, they should be. A few years ago, before diminishing affordability sent them scurrying to the sidelines to continue to share accommodation or hang out at their parents' homes, first-time buyers were a force to be reckoned with.

If they had full-time jobs and could muster together five per cent of the value of a home for a down payment, they were in.

They were the starting point that set the whole chain reaction in motion.

They would buy a resale home and the sellers would move to something else, and those sellers --well, you get the idea.

I recall a housing seminar that strongly suggested first-time buyers were accountable for something like 35 per cent of all homes sold in Calgary.

Then, prices started to jump. Homes were selling in a matter of hours at above asking prices.

Multiple offers forced many potential purchasers to bail because their budgets just weren't high enough to compete.

Sellers, meanwhile, were reaping the benefit of being behind the steering wheel.

Well, things have turned. Firsttime buyers are back in the game, if they want to be.

Sellers are having to bring their asking prices back to more realistic levels to attract an anxious, but cautious, pool of buyers who know they now have more say over what happens in the marketplace.

At the same time, though, jobs are being lost in some sectors, salaries are likely being frozen, and consumer confidence has taken a hit. While there is some pent-up demand for homes, the buyer pool has gotten shallower. Sellers have to realize this.

On the other side of the coin, while zero-per-cent down payments and 40-year mortgages have gone the way of the penny match, mortgage rates and housing prices are trending down--at least for the time being.

That should be good news for those looking at home ownership for the first time.

Add to this the fact builders are focusing on giving home shoppers more for their money. in many homes, prices have been cut by many builders, and they are open to negotiation.

There also seems to be a new emphasis on quality now that the market has somewhat calmed.

Bill Bobyk, general manager of the Sterling Group of Companies, says there are two basic reasons people should be buying: "very good" prices and attractive mortgage rates.

Another factor to consider is that "because this is not the market to be flipping homes, people should be buying with the intention of living in them for a few years," he says. "Buy them because they can be homes, not a short-term investment."

Another thing to remember are the tax breaks for buyers and home renovators in February's federal budget, presented by finance minister Jim Flaherty.

"The federal government's recent budget has added more reasons for Canadians who aren't yet homeowners to consider entering the real estate market this year," says Gary Siegle, Calgary-based regional manager for mortgage brokerage Invis. "For those who are feeling secure about their income and want to take advantage of low rates and a more affordable market, the budget provisions could make an enormous difference in terms of the properties they can afford."

Homebuyers can now withdraw up to $25,000-- up from $20,000 --from their RRSPs as a down payment under the Home Buyers Plan.

Secondly, they can qualify for a $750 tax credit to help them pay for closing costs, such as appraisal or legal fees.

"We are now seeing more first-time buyers seriously considering making the jump this spring into ownership," says Siegle. - Get documentation, such as proof of income and down payment, in place. A mortgage expert can also check credit history to ensure lender's requirements are met. - Apre-approved mortgage can save time, so establish a price range. Mortgage rates are also guaranteed by many lenders for up to three months. - In this type of market, there is room to negotiate with sellers on prices as well as any other terms set out in the listing, such as possession date, appliances being added, and home inspections.

There are plenty of homes to choose from, so don't rush things. - A mortgage is a big debt--probably the largest debt anyone can incur. As a result, it's wise to try to get it paid off as soon as possible.

There are several payment acceleration options out there, so find out what they are and save money in the long run. - Find a mortgage and a home that suits your lifestyle. The mort-gage should reflect your current financial status, but also fit with long-term goals. Don't just buy for the sake of buying in a buyer's market. Find yourself a home that fits your lifestyle as well as your future needs.

mhope@theherald.canwest.com

© The Calgary Herald 2009