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Canadian Home Sales Surge 12% in Q4: Optimism for 2025

The Canadian housing market is closing out 2024 with unexpected strength, as home sales surged by 12% quarter-over-quarter in Q4, according to TD Economics. This sharp rise has shifted earlier forecasts, with TD now predicting that sales have already reached pre-pandemic levels—ahead of schedule.

The strongest gains were observed in British Columbia and Ontario, highlighting the resilience of these key markets. Factors contributing to this growth include falling borrowing costs, robust economic expansion, and recent changes to mortgage regulations introduced in December. Together, these elements are creating a more favorable landscape for buyers and sellers alike.

For those navigating the competitive North Vancouver & West Vancouver housing market, this momentum signals an excellent time to consider buying or selling a property. Curious about what this means for your next move? Let's connect.

Click here to read the full article.

#VancouverRealEstate #HousingMarketTrends #CanadianRealEstate #HomeSalesSurge

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Serial B.C. home flipper fined $2M for tax evasion

In a landmark case for real estate in British Columbia, a Richmond-based property flipper has been convicted of tax evasion. The Canada Revenue Agency (CRA) reports that Balkar Bhullar failed to report nearly $7.5 million in earnings from 14 property transactions between 2011 and 2014. On December 19, Bhullar received a conditional sentence of two years less a day and was fined approximately $2.15 million, equivalent to his unpaid federal income tax.

This case highlights the importance of transparency in real estate transactions and the CRA's commitment to cracking down on tax evasion in the housing market. For investors and homebuyers in Greater Vancouver, it’s a reminder of the legal and ethical responsibilities tied to property dealings.

Click here to read the full article from Global News.

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The Road to Foreclosure: 2 Cautionary Tales

The Road to Foreclosure: 2 Cautionary Tales

Disclaimer: This is not real estate or financial advice.

Foreclosure is a word no homeowner wants to hear, regardless of whether they own a modest home or a luxury estate. The experience is universally distressing, with the potential loss of not just a property, but also years of financial stability and creditworthiness.

In this post, we’ll explore two foreclosure cases in West Vancouver. While these involve high-end properties, the lessons apply to homeowners at every price point. Having your bank take your home is a difficult process, whether the property is worth a $500,000 condo or $15,000,000 house (or condo ).


Case Study 1: Caulfield, West Vancouver

  • Foreclosure List Price: $9,900,000

  • Property Details: Waterfront

  • Annual Property Taxes: $66,000

  • BC Tax Assessment: $12,000,000

Pricing History Before Foreclosure

When the homeowner had the opportunity to sell and avoid foreclosure, the property went through a dramatic series of price reductions:

  • 2020: Listed at $18,500,000

  • 2021: Listed at $16,000,000

  • 2022: Listed at $16,000,000

  • 2023: Listed at $15,000,000

  • 2024 (Pre-Foreclosure): Listed at $13,000,000

By the time it went into foreclosure in 2024, the property was listed at $9,900,000—nearly half the original 2020 asking price. Even the BC Tax Assessment valued the property at $12,000,000, higher than the foreclosure price.

The Takeaway: Unrealistic Market Timing and Emotional Toll

This homeowner’s refusal to adjust their expectations to market realities cost them dearly. Starting at $18,500,000, they faced year after year of price drops, eventually losing the ability to sell the property at all. Their decision to hold on too long, likely hoping for the market to bounce back, only exacerbated their financial difficulties.

The emotional toll of foreclosure cannot be overstated. Owners may feel trapped, watching their property linger on the market while mounting debt and holding costs loom over them. In hindsight, selling earlier—even at a perceived loss—would have saved them from the devastating aftermath of foreclosure.


Case Study 2: Chartwell, West Vancouver

  • Foreclosure List Price: $3,500,000

  • Property Details: Big view

  • Annual Property Taxes: $13,000

  • BC Tax Assessment: $4,000,000

Pricing History Before Foreclosure

This property tells a slightly different story—one that emphasizes the risks of speculative buying:

  • 2016 Purchase Price: $5,100,000

  • 2016 Relisted Price: $5,800,000 (potential flip)

    • Spring 2016 marked an all-time high for the market, followed by the introduction of the Foreign Buyers Tax in the summer.

  • Over the years, the owner continued to lower the price:

    • 2023: Listed at $4,200,000

    • 2024 (Foreclosure): Listed at $3,500,000

Even the BC Tax Assessment placed the value at $4,000,000, highlighting the disparity between the assessed value and the foreclosure price.

The Takeaway: Emotional Attachment to Peak Value

This case illustrates the danger of anchoring expectations to a property’s peak value. The owner paid $5,100,000 during the height of the market, likely expecting to sell at an even higher price. When the market softened, they were unwilling or unable to adjust their expectations quickly enough.

This emotional attachment to past values often leads to unrealistic pricing. As a result, the property lingered on the market for years, while holding costs and debt accumulated. The eventual foreclosure listing price of $3,500,000 was far below what the owner had hoped to achieve.


The Foreclosure Pattern

Both stories, while unique, follow a predictable path:

  1. Owner accrues debt.

    • Whether due to over-leveraging, market downturns, or personal circumstances, the debt becomes unmanageable.

  2. The owner prices the property too high.

    • Unrealistic expectations (e.g., "what I want" vs. "what it’s worth") keep the property from selling.

  3. The market rejects the price.

    • With no offers or significant interest, the property lingers on the market.

  4. Lender claims title.

    • The foreclosure process begins, and the homeowner loses ownership.

  5. The bank sells the property.

    • Often at a significant discount compared to its true market value.

  6. The homeowner’s credit is damaged.

    • This makes it nearly impossible to purchase another property for years, if not decades.

These owners are not bad people. Life happens—whether it’s unexpected financial setbacks, market downturns, or poor decisions, the road to foreclosure is rarely intentional. However, the decisions made along the way, especially around pricing, play a significant role in how things unfold.


Lessons Learned

Don’t Overprice Your Property

The real estate market is unforgiving when it comes to overpricing. Stubbornly holding out for "what you want" instead of accepting "what it’s worth" can lead to months or even years of no offers, as seen in both cases.

The Hit Before Foreclosure Is Less Painfull Than the Hit of Foreclosure

Accepting a lower offer early on may feel like a loss, but it’s almost always better than the alternative:

  • Losing the home to the bank.

  • Taking a much bigger financial and emotional hit.

  • Damaging your credit for years to come.

Stay Realistic About the Market

Markets shift, often unpredictably. For example, the Foreign Buyers Tax in 2016 caused a ripple effect, lowering demand in luxury markets. If you find yourself in a changing market, adjust your expectations and act quickly.


The Boring Old Real Estate Adage: Price It Right

This well-worn advice is repeated because it works: a properly priced home sells faster, with fewer complications. Overpricing your home may temporarily satisfy your ego or financial hopes, but the market only responds to what it’s worth.

Remember: the potential embarrassment of accepting a lower price today is far smaller than the embarrassment—and financial fallout—of losing your home in a foreclosure.


Final Thoughts

The road to foreclosure might be paved with good intentions, but it’s filled with hard lessons about debt, pricing, and market realities. Whether you’re selling a $500,000 condo or a $15,000,000 house (or condo ), the principles remain the same: act early, price strategically, and seek (and implement) expert advice when needed.

If you’re considering selling your home and want to avoid the pitfalls of foreclosure, connect with a trusted real estate professional who can guide you through the process and help you price your property to sell.


Disclaimer: This is not real estate or financial advice. Always consult a professional for personalized guidance. Prices are approximate and based on GVR data.

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Serious About Moving? Here’s Why Pre-Approval Should Be Your First Move

Serious About Moving? Here’s Why Pre-Approval Should Be Your First Move

If you’re serious about buying a home, getting pre-approved for a mortgage is not just a helpful step—it’s an essential one. Pre-approval sets the foundation for your home-buying process by giving you a clear understanding of your budget, streamlining the offer process, and showing sellers you’re ready to act. But it’s about more than just your income—lenders take a comprehensive look at your financial picture, which can make or break your approval. Let’s explore why pre-approval should be your first move as a serious buyer, the potential complexities involved, and how to navigate them.

What Is Pre-Approval, and Why Is It Essential?

Pre-approval is a lender’s initial review of your financial situation to determine how much mortgage you qualify for. This isn’t just an estimate—it’s a formal process that looks at your income, debts, credit history, and down payment. With pre-approval, you’ll know exactly how much you can spend, giving you the confidence to search for homes within your price range.

For serious buyers, pre-approval offers several key benefits:

  • Clear Budgeting: Know what you can afford before you start house hunting.

  • Strengthened Offers: Sellers see pre-approved buyers as serious and reliable.

  • Time Savings: Eliminate guesswork and focus on homes you’re qualified to buy.

Why Income Alone Isn’t Enough

While your income is a critical piece of the puzzle, it’s far from the only factor lenders consider. Here are some of the other elements that can significantly impact your pre-approval:

  1. Credit History and Score

    • A strong credit score (typically 660 or higher) shows lenders that you’re a reliable borrower.

    • Late payments, high credit utilization, or past bankruptcies can lower your approval odds, even with a high income.

  2. Debt-to-Income Ratio

    • Lenders assess how much of your monthly income goes toward paying debts like car loans, student loans, or credit cards.

    • Your Gross Debt Service (GDS) ratio should stay under 39%, and your Total Debt Service (TDS) ratio under 44%.

  3. Mortgage Stress Test

    • In Canada, lenders apply a stress test to ensure you can handle higher interest rates. They calculate affordability using either the benchmark rate (5.25%) or your contract rate +2%, whichever is higher.

  4. Down Payment

    • The size of your down payment affects both your mortgage approval and monthly payments. Down payments start as low as 5% for an insured mortgage and 20%+ for an uninsured mortgage. In expensive markets like Vancouver, 5% is the only way to get into a market.

  5. Additional Costs

    • Property taxes, closing costs, and maintenance expenses are all part of homeownership and factor into your overall affordability.

What If I Currently Own a Home?

If you already own a home, the pre-approval process can still be complex. Owning property might give you equity to leverage, but it can also come with complexities:

  1. Mortgage Payout Penalties

    • If you’re breaking your current mortgage early, you may face penalties. These can vary depending on your lender and the terms of your mortgage.

    • Some lenders offer portable mortgages, allowing you to transfer your existing mortgage to a new home without penalties.

  2. Bridging the Gap

    • If you’re buying before selling your current home, you may need bridge financing to cover the gap between closing dates.

  3. Calculating Your Equity

    • Your home’s current market value minus any outstanding mortgage balance represents your equity, which can be used as part of your down payment for the new property.

  4. Not Always a Slam Dunk

    • Even with home equity and a solid income, other factors like debt levels or credit issues can still complicate approval.

Consult the Experts

Navigating these complexities is where professional advice is invaluable.

  • Speak with Your Mortgage Professional: A mortgage broker or lender can help assess potential penalties, financing options, and whether porting your mortgage makes sense.

  • Lean on Your Realtor: A good real estate agent will have strong mortgage contacts to connect you with professionals who understand your unique situation.

How Pre-Approval Prepares You to Make an Offer

Being pre-approved gives you the tools you need to act quickly and confidently when you find the right home. Here’s how it helps:

  1. A Competitive Edge

    • In a competitive market, a pre-approval letter shows sellers you’re financially ready to buy, making your offer more appealing.

  2. Streamlined Decision-Making

    • With a clear budget, you can narrow your search to homes you can afford, saving time and avoiding disappointment.

  3. Fewer Delays

    • When you’re pre-approved, much of the financial review process is already complete, allowing you to close faster once your offer is accepted.

And How Do I Do It?

Getting pre-approved is easier than you might think. Here are the steps:

  1. Choose a Lender or Mortgage Broker

    • Research different lenders and brokers to find one that offers competitive rates and personalized service. A broker can compare multiple lenders for you.

  2. Gather Your Documents

    • Most lenders will require:

      • Proof of income (pay stubs, T4s, or tax returns for the self-employed).

      • Bank statements to verify your savings and down payment.

      • Details of existing debts like car loans or credit cards.

      • Government-issued ID.

  3. Check Your Credit Score

    • Lenders will pull your credit report as part of the process, but it’s a good idea to check it yourself beforehand to catch any errors or red flags.

  4. Submit an Application

    • Fill out the pre-approval application with your chosen lender. They’ll review your financial situation and provide a pre-approval letter indicating how much you qualify for.

  5. Understand the Terms

    • Your pre-approval will specify the maximum amount you can borrow, your estimated monthly payments, and the interest rate (often locked in for 90–120 days).

  6. Stick to Your Budget

    • Just because you’re approved for a certain amount doesn’t mean you should max it out. Consider leaving room for property taxes, home maintenance, and other costs.

Ready to Get Started?

Getting pre-approved isn’t just about meeting lender requirements—it’s about setting yourself up for success. From understanding your budget to preparing for additional costs, pre-approval ensures you’re fully equipped to make a strong offer and secure your dream home.

If you’re serious about buying, don’t wait to take this critical first step. I can connect you with trusted mortgage professionals and guide you through the entire process. Ready to get pre-approved and move forward with confidence? Let’s talk today!

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November 2024-Home buyer demand continues to strengthen

Home buyer demand continues to strengthen in November

Home sales registered in the MLS® in the Metro Vancouver market rose 28 percent year-over-year in November, building on the momentum of the 30 percent year-over-year increase seen in October. 

The Greater Vancouver REALTORS® (GVR) reports that residential sales in the region totalled 2,181 in November 2024, a 28.1 per cent increase from the 1,702 sales recorded in November 2023. This was 12.8 per cent below the 10-year seasonal average (2,500).

“When we saw demand pick up in October, there was still a question over whether it was a blip in the data or the start of an emerging trend,” Andrew Lis, GVR’s director of economics and data analytics said. “While the November market isn’t quite a Cyber Monday door-crasher, buyers are continuing to take advantage of the relatively balanced market conditions while they last.” 

There were 3,725 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in November 2024. This represents a 10.6 per cent increase compared to the 3,369 properties listed in November 2023. This was 5.4 per cent above the 10-year seasonal average (3,535). 

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,245, a 21.2 per cent increase compared to November 2023 (10,931). This is 26.1 per cent above the 10-year seasonal average (10,502). 

Across all detached, attached and apartment property types, the sales-to-active listings ratio for November 2024 is 17.1 per cent. By property type, the ratio is 12.7 per cent for detached homes, 23.1 per cent for attached, and 18.7 per cent for apartments. 

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 

“Although demand has increased as we head into year-end, the number of newly listed properties coming to market in November remained sufficient to keep prices steady across all segments,” Lis said. “But as we move into the New Year, if the strength in demand continues at the current pace, and the pace of newly listed properties coming to market doesn’t keep up, it may not be long until we see the return of upward pressure on prices.” 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,172,100. This represents a 0.9 per cent decrease over November 2023 and nearly unchanged compared to October 2024. 

Sales of detached homes in November 2024 reached 626, a 19.7 per cent increase from the 523 detached sales recorded in November 2023. The benchmark price for a detached home is $1,997,400. This represents a one per cent increase from November 2023 and a 0.3 per cent decrease compared to October 2024. 

Sales of apartment homes reached 1,089 in November 2024, a 28.1 per cent increase compared to the 850 sales in November 2023. The benchmark price of an apartment home is $752,800. This represents a 1.2 per cent decrease from November 2023 and a 0.6 per cent decrease compared to October 2024. 

Attached home sales in November 2024 totalled 451, a 42.7 per cent increase compared to the 316 sales in November 2023. The benchmark price of a townhouse is $1,117,600. This represents a 1.8 per cent increase from November 2023 and a 0.8 per cent increase compared to October 2024.

Source- Greater Vancouver Realtors

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Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.