Wednesday, February 29, 2012

HST to PST What Does It Mean For Chilliwack BC Real Estate

The BC provincial government has announced that by April 1, 2013 (April Fool's Day - are they being ironic?) the Harmonized Sales Tax (HST) will be replaced by the federal Goods and Services Tax (GST) and the Provincial Sales Tax (PST).  So there is a year and bit before it all gets resolved.  In the meantime, the BC Ministry of Finance and the federal Ministry of Finance in an announcement on February 17, 2012 have laid out a number of transitional rule changes that are very important if you are considering the purchase of newly built BC residential real estate.  It is important to note the HST does not apply to the sale of resale homes.


The following document links shall help your understanding with these somewhat complicated transitional tax changes, but, when in doubt, talk to your accountant or lawyer.




BC Ministry of Finance HST notice #12 www.pstinbc.ca/media/2012_housing_rules.pdf

Federal Department of Finance notice “Transitional Rules Relating to the Elimination of HST in British Columbia”: www.fin.gc.ca/n12/data/12-017_1-eng.asp

Canada Revenue Agency http://www.cra-arc.gc.ca/E/pub/gi/notice270/notice270-e.html

How will Chilliwack Real Estate be affected?

A search of new Chilliwack* residential housing above the $850,000 threshold for those real estate properties that would be unable to receive the full rebate effective after April 1, 2012 showed that there are no, zero, zilch, new properties for sale above $850,000 as of this date in the Chilliwack* area.

What my search did show was, once again, in this the most affordable part of the Fraser Valley reasonable pricing. The Chilliwack* area "median price" for new detached housing being $389,900, the low $229,900 and the high $688,888.  Something for everyone and brand spanking new as well!

Imagine living here....


Stephen Mullock RI
is an award winning full-time real estate specialist with 30 years of experience and hundreds of sales. Thinking of buying or selling real estate in the Fraser Cheam communities of Chilliwack, Agassiz or Harrison Hot Springs? Contact Steve (click here) of Royal LePage Wheeler Cheam Realty for experience, local knowledge and friendly service you’ll be happy you did.

Sunday, February 19, 2012

Born of Fire

Born of Fire © Stephen Mullock


A beautifully serene volcano, called Mount Baker, overlooks piles of abandoned vehicles once forged from fire as well.

Imagine living here...

Stephen Mullock RI
is an award winning full-time real estate specialist with 30 years of experience and hundreds of sales. Thinking of buying or selling real estate in the Fraser Cheam communities of Chilliwack, Agassiz or Harrison Hot Springs? Contact Steve (click here) of Royal LePage Wheeler Cheam Realty for experience, local knowledge and friendly service you’ll be happy you did.

Monday, February 13, 2012

Steve's next OPEN HOUSE
34856 Marshall Road, Abbotsford
Saturday, February 18th, 2012
1 - 4 pm

Please join me.

Stephen Mullock RI

is an award winning full-time real estate specialist with 30 years of experience and hundreds of sales. Thinking of buying or selling real estate in the Fraser Cheam communities of Chilliwack, Agassiz or Harrison Hot Springs? Contact Steve (click here) of Royal LePage Wheeler Cheam Realty for experience, local knowledge and friendly service you’ll be happy you did.

Saturday, February 11, 2012

46145 Gore Ave. Chilliwack - Build now, Build later

This week, my real estate business took me to this rather large, flat, undeveloped 66' x 122' lot in a lovely, older Chilliwack neighbourhood valued for its heritage buildings, sidewalk lined streets, lane-way access and proximity to core amenities..

Franky, I was looking for a unique selling proposition for this property listed by Royal LePage Wheeler Cheam Realty at $189,000 and was happy to find a somewhat special idea - one of those rare "win now and win again" strategies. (Click here for listing details)

A bit of background first, we are seeing the beginning of a  transformation in the residential sections of the City of Chilliwack supported by a Downtown Land Use Plan.  Lots of this size are being rezoned to a R1D zone and then being subdivided into two parcels.  Did you know that 66', also called a chain was used in surveys as it was the amount of room needed to turn a carriage and team of two horses around.  Today, such thinking is outdated and the need to make better use of the land has increased; especially since Chilliwack has such a growing population. The result is smaller more compact lots are being created.  Here are some beautiful examples of newer residential houses on easy to maintain smaller lots in the Chilliwack real estate market as of this date (click here).

Lane way coach housing under R1C zoning is also slowly popping up to increase densification - but frankly, this is an idea that should be discarded or overhauled. The examples of coach housing in Chilliwack I saw yesterday are, for the most part, truly awful.


View Larger Map

Possibilities:

1.  The lot at 46145 Gore Ave. Chilliwack is zoned R2 which would allow a single family detached house to be built.

2.  A rezoning process to R1D makes sense there are great examples of housing styles well suited for a 33' wide lot on Coote Street. 

3.  What if you cannot afford to subdivide right now?  I would suggest leaving the property zoned R2 for now, build a house on one half of the property and leave a 33' x 122' lot to be subdivided off in the future.  Build now and build again - a win, win strategy.  Make sure this strategy will work with the consultation of the City of Chilliwack planning department.

Imagine living here....


Stephen Mullock RI
is an award winning full-time real estate specialist with 30 years of experience and hundreds of sales. Thinking of buying or selling real estate in the Fraser Cheam communities of Chilliwack, Agassiz or Harrison Hot Springs? Contact Steve (click here) of Royal LePage Wheeler Cheam Realty for experience, local knowledge and friendly service you’ll be happy you did.

Wednesday, February 1, 2012

Chilliwack* Real Estate Market Conditions and Sales Analysis - February 2012


Dug this driveway out a few times.
The weather was pretty brutal in the month of January for us, delicate Fraser Valley west coasters, and, as a result, the sale of single family detached houses in the Chilliwack* Fraser Cheam area suffered.  As we leave the poor weather behind we can expect to see a resurgence of real estate listings coming onto the market and a return of stronger sale figures.  What are the January sale figures suggesting about 2012?

It is interesting to note that the average price for a single family detached house in the Chilliwack Fraser Cheam real estate multiple listing area has not changed significantly from a year ago.  This suggests that the market may be at its bottom.  Why?  Prices are always "sticky" on the way down but eventually plateau; sometimes for long periods of time.  I believe this is what is happening currently.  The last strong Chilliwack real estate market, believe it or not, was 5 years ago in January 2007 with 99 sales in the month - at that time when the average sale price of a Chilliwack single family residence was $300,000.  Mortgage rates also factor into the equation, currently these are very low and show no sign of increasing in the near future.  Nine single family houses for every 100 homes on the Chilliwack real estate MLS sold in the month of January 2012 - giving a fine advantage to buyers looking to purchase.

MONTHSalesAverage Sale PriceDays on MarketActive Listings
Jan 201270$312,00081773
Dec 201182$314,50082722
Jan 201180$316,00080n/a





Median SALE Price of Chilliwack* Single Family Detached Homes (SFD): January 2012 - $311,000 up from $300,000 last month.

Median LISTING Price of active Chilliwack* Single Family Detached Real Estate Homes: February 1, 2012 - $369,900 - similar to a last month.

2012 - 2011 Market Strength

Single Family House Monthly Unit Sales as % of a 10-Year Monthly Sales Average

MonthJanFebMarAprMayJunJulyAugSeptOctNovDec
201281%
201185%91%75%70%68%93%74%86%86%70%86%92%

As mentioned, it is not surprising that sales were down in January as the weather was quite poor.  There will be a spill-over effect when we look at the February 2012 statistics and we can expect,  a similar dampening effect (I guess that comes with the snow and rain).


STRATA HOMES


The sale of strata units (townhouses, apartments) with 43 for the month is reasonable; we would expect the ten-year average of 46 for the month of January. Seven strata homes are selling each month for every 100 units on the market. Clearly, the market for strata homes remains in Buyer's territory - plenty of selection and good pricing with an average list price of $210,000.

Chilliwack*Strata Housing Sales Report for January 2012

MONTHSalesAverage Sale PriceDays on MarketActive Listings
Jan 201243$225,00088493
Dec 201139$215,000100445
Jan 201139$208,00076n/a

Median Sale Price of Chilliwack* Strata Homes: January 2012 - $237,000

Median Price of Active Chilliwack* Strata Real Estate Listings: February 1, 2012 - $210,000

Stephen Mullock RI
is an award winning full-time real estate specialist with 30 years of experience and hundreds of sales. Thinking of buying or selling real estate in the Fraser Cheam communities of Chilliwack, Agassiz or Harrison Hot Springs? Contact Steve (click here) of Royal LePage Wheeler Cheam Realty for experience, local knowledge and friendly service you’ll be happy you did.