Author Archives: Lois

Year End Market Update 2019 – Be Prepared For Hot 2020 Market!

December Market Update Team Pospischil

Our year has ended on what could be the most positive note possible. Greater Vancouver is on the brink of our most impressive recovery to date. Following 2 years of a softening market thanks primarily to government intervention in the form of Foreign Home Buyers Tax, Vacant Home Tax, Speculation Tax, and the Stress Test, our market has been held back long enough to regroup and gather momentum and a pent-up demand that we have never seen the likes of.

Already over the past 6 weeks we have seen unparalleled activity in the sale of our listings with 5, 7, 9, 12, 13, 15, and even 23 multiple offers on single properties resulting in well above market sale prices. Yes, our marketing plan is certainly far more effective and strategic that your average real estate brokerage, but that coupled with our offer review strategy, and a new hungry market demand has yielded incredible benefits for our sellers these past couple months. We have generated some $25,000-$230,000 above list price sales making some very very happy clients.

And we are not the only ones witnessing this exploding market. If you read CMHC’s news release on October 28th “Metro Vancouver home prices could return to peak levels in a year: CMHC” there is strong data supporting a very fast and aggressive market recovery that will well surpass the peak 2017 levels. Sit back and fasten your seat belts because its already begun.

As you can see in the graph to the above, townhomes and detached houses on the eastside have passed well into a Seller’s Market over 2 months ago and rising steeply.

And as you can see to the graph below, even Vancouver’s westside detached and townhomes have jumped into a Seller’s Market. Overall the Real Estate Board of Greater Vancouver has seen a year-over-year increase in sales activity of 45% (47% up for detached houses, 40% up for apartments, and 56% up for attached homes). And if interest rates remain low, and tanks with red stars don’t roll down the streets of Vancouver, these sharp recover trends are more than likely to continue through 2020. Vancouver is once again entering the spotlight as one of the most desirable cities in the world to live in with clean air, clean water, great schools, strong economy (maybe even better in 2 years), and safe. Where else would you want to live . . . . really.

My prediction? Watch for a 20% increase in pricing over the next 12 months, and another 15% for 2021. 

MORTGAGE UPDATE by Paula Siemens | Invis The Siemens Group

Paula Siemens Mortgage UpdateOver the past 2 years we have seen many changes to the mortgage market in terms of regulations, product offerings and the way mortgage rates are priced. Last fall, we were certainly heading towards mortgage rates in the 4-5% range; this fall, we are in a fairly stable interest rate market. At the moment mortgage rates are inching up slightly, while the interest rate set by the Bank of Canada is unchanged, citing mixed data, and forecasting concerns about a possible recession in 2020/2021 due to trade wars. In the summer, the bond market pointed to a possible recession with significantly falling bond yields. Our mortgage rates fell as a result and we experienced an inverted market where the variable rate mortgages were more expensive than the 5 yr fixed rate. Now, we are in a flat rate market where the variable rate and the 5 yr fixed rates are largely equal. We are not expecting a lot of change on the horizon, just small fluctuations to the fully discounted 5 yr rate.

Qualification still poses a problem under the stress test for some borrowers, but, there seems to be light at the end of the tunnel where high net worth programs are assisting some applicants in this area. First time buyers are somewhat impacted by the stress test, but most times their qualification is inline with their monthly budget in terms of affordability. The new minority Federal Government is unlikely to loosen the mortgage rules at this time.

Rates:
The rates here are the lowest rates based on an owner occupied purchase with high ratio insurance and transfers under a 65% Loan Amount, Refinances and Mortgages over 65% are priced at higher rates.

FROM OUR KITCHEN TO YOURS…

Santa Hat Cheesecake Bites
Santa Hat Cheesecake Bites
This is a great idea for treating those guests during the holidays! It’s ridiculously cute and simple.
Press a small round/circle cookie cutter into any cheesecake – either made homemade or store bought – and create a bite sized base.
Next, fill a piping bag with whipped cream and cover the surface of each cheesecake bit with a swirl (a can of real whipped cream would work as well ).
Then slice the top off a strawberry off and set it on the top of the cream cheese bites creating little santa hats. Add a tiny dollop to the tip of the strawberry and Ho, Ho, Ho, you’ve done it!

Is your Relationship Ready for Joint Tenancy? 

Carolynne R. Maguire, Notary Public, MarpoleNotary.com

Nature affords us many examples of home ownership being closely associated with a desire for pair-bonding and/or social structure. Whether a nest, hive, or long-term mortgage, some things just seem better when shared. Owning property with another person or persons can create synergistic opportunities not always available to individuals. With life-savings often hanging in the balance, however, the estate-planning and personal commitment implications of the two main options for multi-party ownership can raise important discussion points. Accordingly, when the question arises as to whether the title be held as “Joint Tenants” or as “Tenants in Common” (or some combination thereof), it is important to understand the differences.

Having very little to do with “tenancy” in the rental sense, the most significant feature of Joint Tenancy is its right of survivorship. Upon the death of a joint tenant, the deceased’s interest in the property is immediately extinguished in favour of the surviving joint tenant(s) and does not form part of the deceased’s estate, thus avoiding Probate and its associated costs and delays. This differs from Tenancy in Common where, upon the death of an owner, the deceased’s interest in the Property will pass to his or her Estate as yet another asset to be distributed under the Will. Other important distinctions are that, unlike Tenancy in Common, Joint Tenancy requires equal interests be taken at the same time on the same document.

Relationships come in many forms and, as with any major investment, it is important that the objectives and expectations of co-owners be understood and agreed upon from the outset. It is generally recommended that discussions involving property ownership preferences take place prior to making an offer to purchase, certainly before title conveyance, and ideally with benefit of professional financial planning. In some cases, side agreements may be advisable to document responsibilities and intentions under a variety of “what-if” scenarios and these may require expertise in Family, Tax, and/or Estates Law.

For a non-spousal couple, partners with children from a previous relationship, parents helping their offspring with a home of their own, or for various others who may or not benefit from a right of survivorship, the decision between Joint Tenancy and Tenancy in Common demands clarity and consensus on their view of the future. For some, this can be a relationship-defining moment!

BC CANCER IS DRAMATICALLY IMPACTING THE LIVES OF PATIENTS

The pace of scientific discovery in cancer has never been faster, and new innovative therapies and precision medicine are dramatically impacting the lives of patients and their families across the province. All of this is possible because of the generous support and donations made to BC Cancer by clients like you to our annual Ride to Conquer Cancer.
Last year was a record-breaking year according to President and CEO, Sarah Roth, of BC Cancer Foundation. “$63.7 million dollars was raised to support research and care at BC Cancer thanks to our passionate community of donors!”  
We both know firsthand, that every dollar counts in making a difference for those who are living with this disease and those who love them. Maybe we can break that record again in 2020 and raise these numbers to further the advancement of detecting and treating cancer.  It is because of the donations made that the landscape of treatment within BC has been tremendous ensuring that patients have access to new trials, the latest drugs and treatment options.
Your support allows access to treatment by a larger number of participants and breakthroughs with personalized cancer care with genome decoding and understanding cell evolution and unlocking the answers to questions of the origins of cancer and why they evolve and why they are resistant to drugs and why they metastasize.  This research is a key pathway to cancer prevention and understanding the root environmental causes of the disease.
Adam and I, together with the rest of the Pospischil Realty Group, are extremely grateful for your generosity and continued support.  It is our hope that with your generosity and continued support we will eradicate this disease.
You can donate to our 2020 Ride To Conquer Cancer now by simply by clicking on the “Donate/Join” button at the top of the main page.
We believe the cure is possible and close, be a part of it!

2019 Trafalgar Elementary Pumpkin Patch A Great Success!

2019 Pumpkin Patch a Huge Success

This past weekend at our annual Trafalgar Elementary School Pumpkin Patch Fundraiser Event we raised $2300 with 100% collected going towards cancer research and treatment options (BC  Cancer Foundation) and for Trafalgar Elementary School (PAC). Thanks to you and all your neighbours who came out to support this annual event and once again make it a success! The infamous white witch is still alive and kicking, the popular ghoul in a coffin, the popcorn, and healthier treats and toys, all made the patch fun for all!

See more photos at: www.pospischilrealty.com/community/
or https://www.facebook.com/PospischilRealtyGroup/

Ride To Conquer Cancer A Big Success!

This past weekend Adam and I once again had the pleasure of participating in the annual Ride To Conquer Cancer.  Over two days we rode from Vancouver to Hope covering 230 km of gorgeous landscape.  The new route to Hope is beautiful and winds through quaint country roads, farms, and cute townships.  It winds from Cloverdale through Abbotsford to Chilliwack where our overnight camp was situated.  Then the next day we crossed over the Fraser River into Agassiz, and onto our final destination in Hope.  Overnight accommodations were tiny two-man tents which certainly do the job, as long as you are shorter than 6′ and enjoy a firm sleeping surface.  Over 1100 tents filled a field of tired cyclists, we were in the blue tent hahaha (see back side picture).  Of course, the ride organizers shipped our mats and sleeping bags to camp for us, thankfully we didn’t need to carry those on our bikes.

Our bikes are stored in a gigantic orange barn, and the fairway at camp is filled with food stops, freebie souvenirs from Ride sponsors, a massage tent (if you get there early enough to sign up), loads of snacks including fresh tomatoes & cucumbers, apples and oranges, and pretty well any refreshment known to man from Pellegrino’s to chilled wines.

The new caterer at camp (Peake Catering) had some great food this year from fabulous Quinoa salads, to Tofu Stir-fry, and tables of desserts.  Red Truck Brewing once again supplied the riders with cold lagers and summer ales to quench their thirst at the overnight camp.

Our sincere thanks to all of you that generously supported our fundraising efforts over the past 12 months!  Because of you, I am proud to announce, Pospischil Realty Group has now raised over $340,000 in total over the past 11 years of The Ride.  This year along with 2200 other riders, we helped raise $9.1 million towards cancer research and treatment options right here in BC.  Over the past 11 years the Ride To Conquer Cancer has raised $105.1 million for the BC Cancer Foundation. The monies raised by your donations over the years has led to dozens of breakthroughs in the ongoing battle with cancer and allows BC to lead the world in research and treatments.

As a cancer survivor myself I know the challenges cancer patients and their families face in their journey through diagnoses, treatments, and the roller coaster of emotions towards the finish line.  Our annual ride reminds me personally of my past challenges and enables me, and those that joined us through their support, to help push the boundaries of research and treatments to help those on the journey today, and in the future.  And perhaps one day we can celebrate a victory in a cure to cancer.

If you would like to support us in next year’s 2020 Ride To Conquer Cancer, we have just setup our donations link on our home page and welcome any online donations.  Every dollar makes a difference!  Please go the link on our home page and support this great cause. 

 

 

Another Epic Ride – Ride To Conquer Cancer 2019

Even in my 11th and Adam’s 10th year of fundraising for this event, the riders that participate in the event, and how they got to be there is always the most inspirational part.

At camp, Adam and I had the pleasure of meeting Sarah and her mom and sister. We sat across from them at dinner and heard her story. Sarah is a young lady, and is a dancer and a rower. She has just recently undergone two major brain surgeries for cancer treatment, resulting in a 75% loss of vision, and is still in treatment. Sarah rode alongside her mom and sister for the full 230 km! She did this while she battles the disease because she believes in the fight, and has a passion to help others with this disease.

She was so humble, kind, and happy to be participating in the event, and to share her story with us. Adam and I were so touched by her story that we sat teary-eyed and in awe at this young lady’s resilience and determination.

We asked her if we can share her story, as it’s a true beautiful picture of what this event means. If we had half the courage and a fraction of her determination, just think of what we could all accomplish united against this relentless and life changing disease.

If Sarah can do this grueling event after what she has gone through, then don’t we owe it to her and the thousands of other patients now undergoing treatments to support them and the growing alliance to beat this disease!

Donate now by clicking on the gold button on our home page

Fall Market Update 2019

MARKET UPDATE Every Market offers unique opportunities to clients. For example, this market we are currently in is an excellent time to buy a detached house or land or upgrade to a larger condo. This is especially true if you are selling a condo in order to make the land purchase. We have assisted dozens of clients taking advantage of this window to make this unique upgrade; some to live in, and some for investment. The opportunities in the westside and eastside of our fair city are phenomenal right now, a perfect environment to buy in. As they say “buy up in a down market.” This also holds true for those wanting to upgrade into higher-end strata such as townhomes, duplexes and luxury condos around and above the $1M mark.

In this compressed market, the analogy is best understood by looking at a compressed spring. The once more expensive properties at the top of the spring are much better value now compared to the entry level product at the bottom of the spring that only changed marginally. Plus, the cost for you to sell your current home and upgrade to these properties is lower than ever because the market is compressed. Once the spring is let go, and the market recovers, the jump from the bottom to the top or middle to the upper section is greater, the upgrade gap becomes much larger and the window is missed.

So, do we wait for the market to hit bottom? And when will that be?

Do we really need to wait until the Oct 16, 2021 Provincial Election to see a resurgence of our market? I don’t believe so.

Entry level condos under $700k are super-hot at the moment. We have been generating excellent sales scenarios for clients selling these through our strategic approach and marketing plan generating from two to a dozen offers on our listings as can be seen on the Sales-To-Actives Graph. At the same time, with interest rates being as low as they are, and dropping, many first-time and first-upgrade buyers are gaining a further benefit in this regard taking advantage of the cheap money. The banks are being super diligent in their approval process, but the money is there. As long as you have a job and some cash or equity in your current home you likely have the means.

As the cost to rent continues to increase and the vacancy rate dropped a full percentage point to 3%, many renters are doing the math and discovering it is making more and more sense to buy now. When your rent payment is similar to a mortgage payment for the same property, why would one rent? Further optimism of a potential roll back of the Stress Test in the upcoming Federal Oct 21st election platform is another bright light luring buyers into the market now. BC’s economy is expected to grow by 1.9% this year above what was forecast. New massive projects such as the contentious Trans Mountain Pipeline, the $9.1 billion Vancouver International Airport expansion, and the $3.3 billion dollar SkyTrain extension will both create massive employment and further boost our local economy.

I can’t tell you if the bottom of the market has hit yet, but it certainly is possible that the ‘bell has tolled’ and we just didn’t hear it. Whether it has happened, or we endure another 6 months to a year of this uncertainty, it does not forego the amazing opportunities that await us in our current market. And the only mistake we can make is not act on it, and miss it. It’s time to buy up in this down market and those who do will ride the wave up in their more expensive property for a higher yield than what they were getting by staying put. So, if you have the means to buy up, now is the time to do it. We are here to assist you in this, call us to discuss and plan your next real estate move.