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August 26th, 2010
Victoria Real Estate Board – July Update
The following is the Victoria area update in sales activity for the month of May from the Victoria Real Estate Board.
Property sales throughout the Greater Victoria area in July returned to the kind of normal level seen in the late 1990s while overall prices declined slightly compared to June. A total of 527 homes and other properties sold in July through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 625 sales in June. There were 933 sales in July of last year.
Victoria Real Estate Board President, Randi Masters, noted that in the summer months a decade ago there were typically between 450 and 550 sales each month. “Last month’s sales reflect a return to these historically average levels compared to the significantly higher levels seen between 2001 and 2007 when we had a very active market.” Masters added that sales activity is expected to pick up again next year as we return to a more balanced market over the coming months.
 Single Family Homes
The number of properties available for sale last month declined to 4,477 but this was still 23 per cent higher compared to the 3,632 available properties in July of last year.
Masters noted that the steadily rising number of properties available for sale in recent months offers buyers a wide choice from which to choose. “Buyers are in less of a hurry given the higher number of properties available for sale and it’s important for sellers to consult with their REALTOR® in order to price their home realistically in order to attract qualified buyers,” she added.
 Condominiums The average price for single-family homes sold in Greater Victoria last month was $615,004 down from $649,280 in June. The median price showed little change at $560,000. The six-month average declined slightly to $632,283. There were 16 sales of over $1 million including one on the Gulf Islands. The overall average price for condominiums was $322,905 last month, down from $331,131 in June. The average for the last six months was $326,592. The median price for condominiums in July declined slightly to $289,900. The average price of all townhomes sold last month was $420,578 down from $429,549 in June. The median price declined to $388,000. The six month average was $444,228.
MLS® sales last month included 299 single family homes, 136 condominiums, 44 townhomes and 18 manufactured homes.
The use of average price information can be useful in establishing trends when applied over a period of time, i.e. six months or longer. The Victoria Real Estate Board cautions that an average price does not indicate the actual value of any particular property. Those requiring specific information on property values should contact a REALTOR.
Tags: Avg Selling Price, Victoria, VREB
Posted in Around Victoria, Real Estate News | No Comments »
August 23rd, 2010
Secondary suites are legal in homes within the City of Victoria. Currently, secondary suites are defined by the City as “legal suites, located within a single family detached house [that] cannot be strata-titled”.
City planners recently recommended the City’s policy be amended to allow backyard suites. Under the proposed policy, 7,500 homeowners in Victoria will be eligible to build detached secondary suites on their property.
Size requirements for the suites will be the same as existing regulations for backyard structures to minimize impact on neighbouring properties. Senior city planner Kevin King recommended that the suites be a maximum of 400 square feet and 3.5 metres in height and be no larger than one quarter the size of the back yard.
Only households living in single detached houses, with no secondary suite, will be eligible to build a garden suite.
What’s next?
Once the policy has received approval from council, it will go to public consultation and an open house. Homeowners and residents will be able to engage with City staff to express their concerns and ask questions.
Secondary suites in Victoria
The City of Victoria launched a pilot project in 2005, legalizing secondary suites in a test area around Gonzales. In July, 2007, the City expanded their secondary suite policy to include all of the City of Victoria, incorporating feedback acquired during the two-year test phase. Since the pilot project launched in 2005, 121 secondary suites have been legally registered with the City of Victoria.
In 2008, the City launched an incentive program to encourage people to build secondary suites in their homes. Similar incentives may be considered for garden suites. In 2009, 15 people applied for the renovation grant, and 44 people received permits to build suites.
The recommendation to allow garden suites comes in response to feedback acquired during public information sessions, neighbourhood planning meetings and a survey about secondary suites in Victoria.
Secondary suites are currently legal in the City of Victoria, Langford, Esquimalt, Central Saanich and within a test area in Saanich. Regulations vary among the different municipalities.
What does this mean for homeowners?
Broadening the eligibility criteria for legal secondary suites will increase the stock of safe housing in the Victoria and offer homeowners a variety of benefits. Secondary suites increase the value of a home and can help homebuyers to qualify for, and meet, the monthly obligations of a mortgage.
Homeowners will not be required to provide parking for their tenants which will have an impact on residential parking areas.
http://www.bclocalnews.com/vancouver_island_south/victorianews/news/99129664.html
Resources
City of Victoria – Secondary Suite Grant Program
Canada Revenue Agency – Rental Income
Tags: BC, Garden Suite, Suite, Victoria
Posted in Around Victoria, Real Estate News | No Comments »
July 30th, 2010
 Secondary Suite Secondary suites in Saanich
There are at least 9,000 secondary suites in Saanich according to a report by municipal planning staff in February, 2010. This means that 30 to 40 per cent of single-family homes have one. Secondary suites are currently illegal under Saanich Zoning Bylaw 8200.
Saanich planning staff have recommended an amendment to the bylaw to legalize secondary suites, subject to several conditions.
In response to these recommendations and input from the community, the District of Saanich will soon legalize secondary suites in a test area south of McKenzie Avenue. Under the new bylaw, which should come into effect at the end of August, existing suits will be recognized and efforts will be made to convert them to meet the legal regulations.
What is a secondary suite?
The Municipality of Saanich currently defines secondary suites as “an additional dwelling unit located within a building of residential occupancy containing one other dwelling unit” They are currently prohibited under Saanich Zoning Bylaw 8200 Section 5.24.
What does this mean for homeowners?
Under the new bylaw existing suites will be required to meet the BC Building Code and pass an inspection. The BC Building Code is available at the public library or on request from the District of Saanich.
A property with a secondary suite in Saanich must meet the following requirements:
- No more than one secondary suite is permitted per lot and/or single family dwelling;
- The secondary suite must be wholly contained within the single family dwelling;
- The registered owner of the property must occupy the residence as their primary dwelling;
- A building occupancy permit for the secondary suite must be approved by the District of Saanich;
- One additional on-site parking stall for the tenant must be provided and approved by the District of Saanich;
- The total number of kitchens within the single family dwelling, including the secondary suite, may not exceed two; and
- Boarding is not permitted within the secondary suite.
 Secondary Suite Parking
Parking is an area of concern for many Saanich residents who are already dealing with issues around street parking availability. Although secondary suites may increase demand for parking space, parking on streets appears to be an inevitable reality with or without legal suites.
The Municipality of Saanich has recommended a committee be formed to work on parking solutions. Neighbours may be encouraged to rent out extra parking spots on their property.
Status of other suites in the area
Secondary suites are not legal in Oak Bay or Esquimalt. The City of Victoria permits the use of secondary suites. Secondary suites are permitted in Central Saanich as long as the owner of the suite lives in either the suite or the residential single family building.Secondary suites are permitted in the Municipality of Langford as long as the suite exists in an owner-occupied one family dwelling.
Map of the study area
Resources:
Canada Revenue Agency – Rental Income
Rental Owners and Managers Society of BC (ROMS BC)
Residential Tenancy Branch
Tags: saanich, Suites
Posted in Around Victoria, Real Estate News | No Comments »
July 3rd, 2010
Well, like it or not the HST (Harmonized Sales Tax) is now in effect, as of July 1, 2010. The HST rate will be 12% (5% federal component + 7% provincial component). There’s seems to be lots of confusion around how HST applies to real estate transactions so we have wanted to provide some information here.
Previously under the GST, new housing is taxed while resale housing was not. No housing sales are directly taxed under the PST, although the B.C. Ministry of Finance states that there an average of 2% PST is embedded in the cost of new homes from PST charges on construction materials. Under the HST the full 12% HST would apply only to new housing.
The key points to be aware of are:
- The HST rate will is 12% (5% federal component + 7% provincial component).
- The PST will be eliminated completely.
- The HST only applies to new housing. HST does not apply to resale housing.
- There will be a partial rebate of the provincial portion of the HST of up to $26,250 on new housing.
- Input tax credits will be available for HST in the same manner as under the current GST.
- BC will provide a rebate for new housing purchased as a primary residence to ensure that purchasers of new homes up to $525,000 do not pay any additional tax.
- Real estate services such as real estate commissions and legal fees are now subject to HST.
About the New Housing Rebate
Homes under $525,000 will be subject to a tax 2% higher than the current system. Homes over $525,000 will be taxed at a rate 7% higher than under the current system, less a flat $26,250 rebate (in addition to the GST new housing rebate currently available for homes up to $450,000).
An HST partial rebate (5% of the purchase price up to a maximum rebate of $26,250) will be provided to purchasers on new housing.
The rebate rate was created to ensure that purchasers of eligible new homes priced up to $525,000 do not pay more provincial HST, on average, than under the PST.
Rebate rate: (7% BC HST minus 2% embedded BC PST) / 7% BC HST
Rebate rate = 5/7 = 71.43% of provincial portion of HST paid, to a maximum of $26,250.
Total Sales Tax Payable on New Homes
 Total Sales Tax Payable on New Homes Following are a few links to additional information and resources about the BC HST.
If you have any questions about the HST, or anything else regarding real estate, please don’t hesitate to contact Komal or Karn Dodd at 250-744-3301 or email info@KomalDodd.com
Tags: Harmonized Sales Tax, HST, Rebate
Posted in Buying a Home, Selling a Home | No Comments »
July 2nd, 2010
July 2, 2010
Following is a summary of the market activity during the previous month including comment from the Victoria Real Estate Board President.
Greater Victoria home buyers have a growing number of properties from which to choose as inventory levels rose to 4,730 properties available for sale at the end of June – up 25 per cent from the 3,794 available properties a year earlier. Sales, meantime, softened last month while overall prices showed little change.
A total of 625 homes and other properties sold in June through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 695 sales in May. There were 946 sales in June of last year.
 Average Selling Price Victoria Real Estate Board President, Randi Masters, noted that total sales so far this year are running just two per cent ahead of the same period a year ago. “We are seeing a reverse trend to a year ago when sales were slow in the early part of the year then picked up considerably in the spring and summer; this year sales have now begun to slow somewhat following a strong start to the year.” Masters added that despite the increase in the number of properties available for sale, prices have remained very stable. “Last month showed very little change in overall prices and with the growing inventory of available properties we do not anticipate any significant upward pressure on prices in the near future.”
Overall average prices for single family homes and condominiums rose slightly last month while prices for townhomes moderated. The average price for single-family homes sold in Greater Victoria last month was $649,280 up from $646,483 in May. The median price declined to $560,822. The six-month average showed little change at $635,893. There were 27 sales of over $1 million including two on the Gulf Islands. The overall average price for condominiums was $331,131 last month, up from $324,005 in May. The average for the last six months was $325,664. The median price for condominiums in June rose to $295,000. The average price of all townhomes sold last month was $429,549 down slightly from $430,713 in May. The median price declined to $405,500. The six month average was $447,573.
MLS® sales last month included 326 single family homes, 168 condominiums, 67 townhomes and 20 manufactured homes.
If you have any questions about the these stats, or anything else regarding real estate, please don’t hesitate to contact Komal or Karn Dodd at 250-744-3301 or email info@KomalDodd.com
Tags: Avg Selling Price, VREB, Weekly Update
Posted in Buying a Home, Real Estate News, Selling a Home | No Comments »
June 25th, 2010
 409 Nursery Hill Dr Offered at $739,900 (includes HST).
This home features the main living area on upper level with formal living/dining rooms, family room off gourmet kitchen with wood cabinets and granite counters, wood floors in main areas, 3 bedrooms, master with nice ensuite and walkin closet. Walk out to level backyard with patio. Ground level has a rec room plus all set up for a 2 bedroom extra accommodation.
Other features include wood garage & main doors, brick paver driveway, fully landscaped lot with sprinkler system, 9′ high ceiling on upper level. Excellent central location backing onto a 10 acre park.
This is an excellent opportunity to get into a beautiful brand new house, price includes HST.
 Plans with elevation If you have any questions about this property, or anything else regarding real estate, please don’t hesitate to contact me at 250-744-3301 or emailinfo@KomalDodd.com
Tags: new home
Posted in Buying a Home, New Homes | No Comments »
June 11th, 2010
 just sold The following is the Victoria area update in sales activity for the month of May from the Victoria Real Estate Board.
Spring Sales Soften in May Choices Increase for Buyers
The number of homes and other properties sold throughout the Victoria area softened in May while the choices for buyers increased with a further rise in the number of properties available for sale.
A total of 695 homes and other properties sold in May through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 756 sales in April. There were 879 sales in May of last year. Prices were mixed depending on the property type.
Victoria Real Estate Board President Randi Masters noted that some softening in the number of sales was expected due to anticipated increases in interest rates and pressure on affordability as a result of rising prices.
“So far this year sales are running nearly 14 per cent ahead of the first five months of last year but it’s important to note that the first few months of this year were very strong compared to the same period a year ago when the effects of the recession were still being strongly felt.” Masters added that further increases in the number of properties available for sale should temper upward price pressures as buyers enjoy a wider selection of properties from which to choose. “As of the end of May, there were 4,521 properties available for sale – up from 4,229 at the end of April. The available inventory is now 19 per cent higher than the 3,789 properties for sale at the end of May a year ago,” she added.
Overall prices for single family homes rose last month while prices for condominiums and townhomes moderated. The average price for single-family homes sold in Greater Victoria last month was $646,483 up from $624,149 in April. The median price rose to $594,500. The six-month average was $635,477. There were 24 sales of over $1 million including one sale in Oak Bay of over $3.5 million. The overall average price for condominiums was $324,005 last month, down from $340,105 in April. The average for the last six months was $327,064. The median price for condominiums in May declined to $290,050. The average price of all townhomes sold last month was $430,713 down from $449,556 in April. The median price declined to $418,000. The six month average was $453,798.
MLS® sales last month included 394 single family homes, 202 condominiums, 63 townhomes and 12 manufactured homes.
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While the use of average price information can be useful in establishing trends when applied over a period of time, i.e. six months or longer, the Victoria Real Estate Board cautions that an average price does not indicate the actual value of any particular property. Those requiring specific information on property values should contact a REALTOR®.
Tags: Real Estate Board, VREB
Posted in Real Estate News | No Comments »
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