Balance is What We Seek

Balance Is What We Seek

Watching cycles evolve and change, such as real estate sales on our North Shore, can be fascinating.

This has come home to me in the past year as we peaked and then slumped in the shadow of the world-wide recessionary environment. It takes a dramatic change to shake one out of the pervasive malaise which the past 10 or so years of strength was lulling us into believing was the norm. The message that I believe the change brings is i) not to take anything  for granted  and ii) that some balance (stability) is what all markets seek; not just real estate.

In order for us, as human beings, to have comfort in making decisions, the existence of a stable environment goes a long way to relieving our stress and enabling us to move toward our goals in life. The goals I speak of in this context are those of first time home ownership,  rehousing/relocating  to accommodate growth and contraction of our family unit and the decisions regarding the more mature end of the spectrum (empty-nesting, retirement and so on). This stability is not always evident and, as decisions cannot be deferred indefinitely, these must often be made in times of instability. I define instability in this context as marked swings in supply (inventory), ditto demand, interest rates, security of income (including employment) and threats to maintaining current wealth .

We have some, but clearly not complete, control over these factors. In the process of acquiring or divesting of real estate assets it is of great value to solicit the services of an experienced Realtor who has local knowledge and has seen the progression of a variety of economic cycles. Being armed with the market facts is an imperative part of the ability to make the necessary decisions in times of lesser stability.

A quick comment on interest rates is timely. Rates (while not at an all time low) are relatively stable in the short term. An important part of the search for property is the need to obtain a rate guarantee as well as a financing  pre-approval . Most financial institutions will provide these guarantees for up to 90 days. Put that little extra effort into getting it   your banker or mortgage broker will assist in this necessary process.

It would seem that our North Shore is still seeing a continued drop in inventory (only W/Van t/homes increased marginally) and this trend does not follow the general one evident in Greater Vancouver where inventories are showing a varied pattern of increases. Our prices still appear to have upward potentia

Again, visit my website to see and  hear  the new developments.  I continue my commitment to keep you… www.OnTopOfTheMarket.ca – the  go to  site for North Shore Real Estate analysis and jumping off point for FULL market listing information.

To join the group getting the e-mail version of this  update  – send a request now toalanskinner@shaw.ca and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca

Alan

October 09 Numbers

October 09 Numbers

The YTD 2009 [first three quarters] vs. corresponding 2008 figures for the North Shore.
North Van detached homes sold are now up by 19% from last year; attached (t/homes) are up by 31% and apartments up by 17% from ‘08. Detached average prices down 9% and inventory Sept 30th, down by 38%. Average prices down 5% (t/hse) and down by 10% (apts). Inventory (t/hse) 46% lower than ‘08 and (apt) down from ‘08 by 24%.  Again, we continue to see that all N/Van inventory is way lower than the preceding year. Demand is maintaining strength and the general level of sales still continues increasing month by month

In West Van, detached number of sales YTD is now up from ‘08, as of Sept 30th by 21% (the third consecutive month in about a year). Average price down 15% and inventory Sept 30th down 27% from ‘08. On the condo side   attached (t/hses) sold stand at 35 vs. 46 units last year; average price down 12%.  Active listings are up from ‘08 by 6%.  Apartments sold now reflect a 7% increase YTD vs. ’08 (121 vs. 113); with average price down 16% and active listings now down 32% from end of Sept ‘08.

It would seem that our North Shore is still seeing a continued drop in inventory (only W/Van t/homes increased marginally) and this trend does not follow the general one evident in Greater Vancouver where inventories are showing a varied pattern of increases. Our prices still appear to have upward potential?

Again, visit my website to see and  hear  the new developments.  I continue my commitment to keep you… www.OnTopOfTheMarket.ca – the  go to  site for North Shore Real Estate analysis and jumping off point for FULL market listing information.

To join the group getting the e-mail version of this  update  – send a request now toalanskinner@shaw.ca and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca

Alan

Podcasts

North Shore Real Estate Radio

This year I pledge to continue my personalized service and further reduce my business ecological “footprint”. A new initiative is the radio (podcast) library which I am creating.

All North Vancouver Real Estate “Updates”, reports and information articles, checklists etc. will be archived on my website and available for download or desktop listening 24/7. You can access the information you seek when the spirit moves and not when someone pushes yet another flyer into your mailbox. I am most excited about these developments. Input as to the topics for “programming” you feel would be of interest is strongly sought. Please e-mail This email address is being protected from spam bots, you need JavaScript enabled to view it or call me 604 988-7368

Click on the “Launch Podcast Player” Icon in the top right of this website to listen now

North Vancouver Real Estate

Podcasts

Example Of Current North Shore Costs

Example Of Current North Shore Costs

An Estimation Of Closing Costs On The North Shore
Approximate Legal Fees and Disbursements           $900/1,200*Survey Certificate (if one is not available)       $350
Appraisal (if required by the lender)              $250
Inspection fee (not mandatory, but strongly        $300/450
recommended)Property Transfer Tax         1% of the first $200,000
plus         2% of the balance of the
purchase price

E.g:   A  $525,000 home would attract PTT at this level
1% of the first $200,000 – $2,000
2% of  $325,000 – 6,500  8,500

Other Fees – If your down payment is less than 25% of the purchase price of the home, the lender will require mortgage insurance from CMHC (Canada Mortgage and Housing Corporation)/or other Mortgage insurers. The insurance premium, which is usually added to the mortgage, ranges from 0.5% of the mortgage amount to 3.25% depending on the size of down payment.

Property Tax Adjustment – In addition to the above costs, you may be required to have cash on hand to repay the vendors for taxes they have paid in advance (depending on possession date and how the vendors paid their taxes). A good rule of thumb is to have enough money on hand to pay six months of taxes. e.g. $500,000 home – approx
$2,400

Insurance – You will have to arrange insurance a few days before possession. The annual rate for a basic policy is approximately(detached)
$800/1,200

*These figures are an estimate only. They are subject to change and it is recommended that you consult your lawyer for confirmation of your total costs.

I have not tallied the above as you should determine which will apply to your purchase.

 

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