September in Real Estate

The monthly statistics report just came out for the month of September and it’s been my ritual for a full year now to read all the reports and share a summary with the Discovery Islander readers. When I write these summaries I don’t use my opinions or my own spin on things, I directly quote snippets from the reports, so please don’t shoot the messenger.

I’m re-evaluating if my column is seen as valuable information for readers and am curious if people are actually finding it helpful at all.

I would greatly appreciate to receive some feedback. Please text me at 604-787-4594 or call me at home 250-285-2141. All feedback is greatly appreciated and confidential.

Campbell River
Vancouver Island Real Estate Board (VIREB) reported for the month of September:

“The housing market in the Vancouver Island Real Estate Board (VIREB) area finished summer the way it began, with historically low inventory and rising prices. Active listings of single-family homes were 47 per cent lower last month than in September 2020, while VIREB’s inventory of condo apartments and row/townhouses dropped by 57 per cent and 48 per cent, respectively, from one year ago.

In Campbell River, the benchmark price of a single-family home hit $653,700 in September, up by 29 per cent from the previous year. In the Comox Valley, the year-over-year benchmark price rose by 31 per cent to $771,300. The Cowichan Valley reported a benchmark price of $755,000, an increase of 34 per cent from September 2020. Nanaimo’s benchmark price rose by 28 per cent, hitting $745,400, while the Parksville-Qualicum area saw its benchmark price increase by 33 per cent to $869,000. The cost of a benchmark single-family home in Port Alberni reached $494,500, a 40 per cent year-over-year increase. The benchmark price for the North Island rose by 49 per cent, hitting $404,100 in September.”

Quadra Island
Quadra Island saw 4 listings sold (pending completion) and 2 new listings.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Cortes Island

Cortes Island also saw 4 listings sold (pending completion) and 2 listings expired.

If you would like more details including “sold prices” go to my website and sign up for free to the members only area that will provide that information www.quadrarealty.ca

Calgary

 “While sales activity in the fall tends to be slower than in the spring months, the continued strong sales are likely being driven by consumers who were unable to transact earlier in the year when supply levels had not yet adjusted to demand,” said Calgary Real Estate Board (CREB®) chief economist Ann-Marie Lurie. “The market continues to favour the seller, but conditions are not as tight as they were earlier this year.”

Benchmark price of a detached home in the city of Calgary: $537,500 up 10% Year over Year.

Benchmark price of a semi-detached home in the city of Calgary: $424,900 up 8.4% Year over Year.

Benchmark price of a row-home in the city of Calgary: $299,600 up 7.2% Year over Year.

Benchmark price of an apartment in the city of Calgary: $253,200 up 1.2% Year over Year.”

Vancouver

“Home sale activity remains elevated across Metro Vancouver’s housing market while the pace of homes being listed for sale continues to follow long-term averages.

The summer trend of above-average home sales and historically typical new listings activity continued in Metro Vancouver last month. Although this is keeping the overall supply of homes for sale low, we’re not seeing the same upward intensity on home prices today as we did in the spring,” Keith Stewart, Real Estate Board of Greater Vancouver (REBGV) economist said.

The benchmark price for a detached home is $1,828,200. This represents a 20.4 per cent increase from September 2020.

The benchmark price of an apartment home is $738,600. This represents an 8.4 per cent increase from September 2020.

The benchmark price of an attached home is $963,800. This represents a 17.5 per cent increase from September 2020.

Toronto

“September marked the transition from the slower summer market to the busier fall market in the Greater Toronto Area (GTA). Every year, we generally see an uptick in sales, average selling price and listings after Labour Day, and September 2021 was no different. Sales increased relative to August and were also at the third-highest mark on record for the month of September. The average selling price was up both month-over-month and year-over-year.

The average price for a detached home in area (416) is $1,778,928. This represents a 19.5 per cent increase from September 2020.

The average price of a semi-detached home (416) is $1,304,504. This represents a 13.9 per cent increase from September 2020.

The average price of a townhouse is $930,056. This represents a 7.2 per cent increase from September 2020.

The average price of a condo is $744,730. This represents a 8.5 per cent increase from September 2020”, as reported by the Toronto Regional Real Estate Board (TREBB)

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

Are solar panels going to increase the value of my home?

Thank you My Friend for asking me this question the other day, because it inspired me to write about it in the Discovery Islander where I will share my findings with all the readers.

The usual answer I came up with right away is the usual in real estate: “it depends”. I have done some reading and even asked my fellow real estate agents if they had any experience with this.

The answer is not black and white, as expected.

I think it’s a wonderful technology and I am a big fan of trying new ideas. The three most obvious benefits of using this technology is reducing our carbon footprint, less reliance on the grid, and most importantly cheaper utility bills.

I can see an argument in favour of a solar panel system to supplement your power usage. Cost of energy is going up as we have all been noticing over the years. The way that BC Hydro calculates your power bill is a 2 step system, where you pay one rate up to certain level and then anything above that costs significantly more. In winter for example my hydro bill triples, and I think solar panels integrated into my home could potentially reduce that electric bill shock.

The main things to keep in mind:

Cost - Although cost of panels and all the components have come down in price lately, the cost will vary depending on performance, durability and warranty. Other factors such as installation, permits, inspections, and any modifications related to hook up to your existing grid may add up to the cost.

Maintenance- what are the maintenance costs over time. The efficiency of solar panels degrades over time so the older panels will be perceived as less valuable and less efficient, and also will need more maintenance costs.

Efficiency- How efficient is your system, is it really worth installing it if you live in an area like Quadra Island where sunshine is a rare commodity for six months out of the year? I wish we had “rain panels” on the west coast; Or winter grey sky panels!

Location- Do you have the south facing roof top for best exposure of the sun, does your property have enough sunshine? A lot of the houses in our area of Cortes Island, Campbell River and Quadra Island have a lot of trees around the houses. A lot of efficiency of solar panels depend on unobstructed view of the sun. The panels are supposed to be facing the sun at all times for maxium efficiency; not always possible.

Permits- What are the local guidelines and requirements? It’s always best to hire a local contractor that has experience and knows how to plan a successful installation.   

All things considered, is your property going to go up in value if you install a system?

Large installations on valuable homes tend to add more money to the value of the home than smaller and less valuable homes. Some studies indicate that some properties can benefit up to $6000 for every 1kW installed and working systems. Other sources suggest 2-4% increase in property value, but these numbers are based on hypothetical scenarios.

Most of the time however solar panels do not add significant value to most properties. Even off-grid properties may not increase the value because you’re trading the benefits for all the maintenance costs and unreliable service. For example, when temperatures drop down in the winter the panels don’t produce as much electricity.

The way I look at it is, if you can justify paying $30,000 for a system that will save you $100 in monthly electricity bill then go ahead, but don’t count on the value of the house to go up significantly. I think it’s a great idea of “free” electricity but just how free is it. The panels will provide most amount of electricity when your monthly bills are typically the lowest. In the winter when the panels are not quite as efficient unfortunately due to weather, is when you need to have a good source of supplemental power source.

From a numbers point of view if someone had $30,000 to increase the value of a property I would suggest redoing the kitchen first, then bathrooms, windows, insulation, but if all these options have already been covered then consider adding an additional dwelling on your property. Is there a way to build a rental suite?

The return on investment on the $30,000 invested in a rental suite that can be rented for $800 vs $100 saving on your electric bill is a no brainer in my opinion.

In conclusion, based on all factors the installation of solar panels is a fantastic way of reducing your cost of power and it’s an extra added feature for a property. Theoretically the more features a property includes the more attractive it could be to certain potential buyers. I remember when hot tubs were a great feature for buyers until that trend went away and now selling a house with a hot tub can be a bit tricky these days. As more information about solar panels become available more people will be able to make more educated decisions.

I personally, would definitely consider buying a brand new house with a renewable energy solution built in from the beginning because I can safely assume that all other systems in the house like insulation and windows have a high efficiency rating. As a buyer of an older home with only certain components that meet the efficiency level, I personally would not feel too thrilled.

The Canadian government is offering home owner grants that aim at helping home owners in saving energy costs. This could be a good first step in doing some research.

https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/23441

As you read through that government website you will realize that the promised "up to $5000" grant given to home owners doesn't mean what we think. There are a lot of limitations and conditions that one has to meet in order to take advantage of any of these programs. 

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

http://www.islandphonebooks.ca/

August in Real Estate

Another month has gone by and it seems like not much has changed in terms of pricing or demand for real estate in BC or across the country for that matter. It seems like things have been slowing down a little bit but the demand is still strong and the supply end is lagging behind. I love Real Estate and it's also part of my job to be informed so I can serve my clients better. Every month when statistics are released I analyze and review what's going on in the market and share all my findings. The sources of this information come from the Real Estate Boards that release it to the media. It's all public knowledge and easily accessible by anybody. All i'm doing is compiling a brief summary of each area to give my clients a snapshot of what's going on in the market. I could expand and provide you with much more information on each sector but I think most people are just interested in how much their home is worth today and also if the market is strong or if the sky is falling. Some of my clients have experienced some market corrections back in the 1980's but I was fortunate enough to witness just a short lived bump in 2009. Do I think we are way overdue for a correction? Maybe. I just don't believe things can go on indefinetely and one day there will be a correction but for now I don't think we are seeing any signs of that. The most current development is the news headline coming out of China regarding the Chinese property giant #evergrande   I will be paying closer attention to this developing story because it's related to global real estate. The company's share price has dropped over 80% from it's 52 week highs. Apparently the company is in financial troubles, and it has as much as 3 times debt as the Lehman Brothers did before the whole thing colllapsed. Will this company pull the global markets down? I personally believe that it may cause big ripples in the markets in the next couple of months. 

Campbell River
Slight cooling due to historically low inventory.
Inventory remains extremely tight in the VIREB (Vancouver Island Real Estate Board) area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB (Vancouver Island Real Estate Board) is seeing, there is no doubt that sales would be higher if there were sufficient inventory.

In Campbell River, the benchmark price of a single-family home hit $639,100.

The British Columbia Real Estate Association (BCREA) forecasts that market conditions may begin to even out somewhat by the end of the year. However, it would take approximately 2,500 new listings in the VIREB area to create an actual balanced market if activity continues at this pace. The Vancouver Island Real Estate Board (VIREB) in August saw sales of 450 single family detached properties compared to 531 in June.

Quadra Island
In the month of August we saw two listings “sold”, two were “pending” and three “new” listings. The lowest price was a 10acre empty lot that sold for just under $400,000. The highest Sold price was an Ocean front property in Drew Harbour that sold for $860,000

Cortes Island
August showed some activity on beautiful Cortes Island as well, with one sold listing, one pending and two new listings. The only sold listing was a 10acre lot with buildings that sold over $800,000.

Calgary

Market continues shift toward more balanced conditions after torrid start to the year.

“Sales have far exceeded expectations throughout most of the pandemic, driven mostly by demand for detached homes. At the same time, supply could not keep pace and conditions shifted to favour the seller, something that has not happened in over six years,” said CREB® chief economist Ann-Marie Lurie.

Detached Homes prices remained relatively stable compared with July figures, but were more than 10 per cent higher than levels recorded last year. Price gains continue to vary significantly based on location. Prices have risen across all districts relative to last year, but prices trended down In the City Centre, North West, West and South districts compared to last month. Detached homes benchmark price was $538,700

The semi-detached homes benchmark price was $430,000. Despite strong price gains across all districts, prices still have not recovered from previous highs in the South, North East and City Centre districts

The row benchmark price in August pushed above $300,000, eight per cent higher than last year.

Apartment benchmark price $253,300 nearly 16 per cent lower than previous highs.

Vancouver

While home buyers have remained active in Metro Vancouver* throughout the summer, the supply of homes for sale has declined steadily since June.

Last month’s sales were 20.4 per cent above the 10-year August sales average.

“August was busier than expected, and listings activity isn’t keeping up with the pace of demand. This is leaving the market under supplied.” said Keith Stewart, REBGV economist.

The benchmark price for a detached home is $1,807,100. This represents a 20.4 per cent increase from August 2020

The benchmark price of an apartment property is $735,100. This represents a 7.6 per cent increase from August 2020

The benchmark price of an attached home is $952,600. This represents a 16.5 per cent increase from August 2020

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

#quadrarealty #realestatestats #romankrzaczek #campbellriver #cortesisland #quadraisland

When is the best time to buy Real Estate?

Many of you have heard the way-too-often overused cliché “LOCATION, LOCATION, LOCATION”.

I believe “TIMING, TIMING, TIMING” is much more important for any investment and very strongly in Real Estate.

Yes, you can find a great location but if your timing is off, then maybe you’re not getting the best deal. What constitutes a “good deal” depends on individual perception of value received. Most investors will calculate what a property is worth by the amount of money they can rent it out for and costs to run the property such as maintenance, insurance, taxes and vacancy rate.

When someone is buying a property where they want to live sometimes these basic principles go out the window. You get excited about the property and you’ll do whatever it takes to get it. I believe in the power of attraction and how important it is to dream big, but I also understand that home ownership can come with unexpected costs and as a buyer you must consider them.

Based on statistical patterns best time of the year to buy a home is in January. Typically, there are not many buyers actively looking to buy a home. I want to emphasize “typically”, because the health crisis has caused some abnormalities in the usual statistical patters. This year in January for example we saw a huge surge in sales. A lot of listings available in January are homes that didn’t sell before Christmas and the sellers might be more motivated and flexible with the price.

February onward usually sees more active listings before the spring market madness starts. The logic behind buying a home during the spring is to get possession during the summer months when kids are on summer vacation.

Spring markets are busiest, most competitive and most expensive time to buy. It’s also easier for sellers to make their home look more presentable; with curb appeal and more natural light outside some homes are just more appealing.

Prices normally peak in June and July when the demand is the most active, with lots of active listings and lots of buyers. As the school year approaches, in August and September, the number of active listings is reduced.

Into the winter months there is a higher probability of prices dropping because not many buyers are looking. In a normal year December is very slow for sales and in my opinion it’s the best time to be a buyer.

Buy a home when demand is low. If at all possible, buying a home in a “buyer’s market” is your best strategy. Prices are low and there are lots of homes for sale. 

A “seller’s market” is the opposite, where the inventory is low but the demand is high. This is the current market with multiple offers being so prevalent and the skyrocketing prices, it’s very frustrating to be a buyer.

Every person has a different situation, finances and circumstances, that’s why timing the market could proof to be a difficult task. During the most disruptive times there are people that make enough money to go to space for a few minutes while others lose everything. It’s a matter of timing and planning ahead of time.

Planning to purchase a home? I would love to help you, starting with getting you connected with a financial planner and a mortgage broker. Take your time, plan, prepare your finances and don’t allow your emotions to control you. Hire me and I’ll guide you through the process.

If you have any suggestions or feedback…or have any topics you would like me to cover, please let me know. I would love to hear from you.

Roman Krzaczek Realtor
Quadrarealty.ca
250-285-2141

10 Things to be done to your homes before fall starts

I can’t believe the summer is nearing the end. Although I always enjoy the hot summer days a bit of rain would be welcome even by sun worshipers like myself. In a couple of months, I will surely regret these words but in the mean time I like to make sure my home is ready for the rainy season. I would like to share with you some tips on what is important before the rains come to avoid unpleasant surprises. Perhaps they will help you slowly start mentally preparing for the change of season.

Gutters
We are all used to them working properly and draining lots of water. Over the years however most people forget about checking them for damage or just a simple cleanup. When gutters are clogged, water can seep through into the house and cause major damage. A simple cleanup and a visual inspection can save you a lot of grief and possibly a lot of money.

Roof
Inspection of the roof is much easier to be done in the summer months before the rains start. If there’s any repairs needed to be done now is probably the best time.

Windows and doors
Check the exterior of your windows and doors. They may need re-calking.

Insulation
Take a look in your attic if there’s any holes made by critters. Sometimes squirrels or birds get inside your attic and build nests out of your existing insulation. Inspect and seal any possible points of entrance.

Chimney and wood stove.
Now would be a good time to inspect your wood stove, clean it out and do any repairs if necessary.

Fix any cracks in your driveway.
If you have a concrete driveway and it has cracks in it, this is the best time to take care of that. When winter comes it will be very difficult to get the right conditions to fix it.

Get your composter ready.
This is a big one for the gardeners like myself. There will be a lot of “greens” and soon enough “browns”. I like to make sure I have enough space for all that goodness.

Test winter equipment
Luckily we didn’t have much snow last year but it’s always a good idea to check your snow blower if it needs any repairs or maintenance.

Change your furnace filters
Another thing in your house that might be costing you more money than it should be. If your filters are clogged, it's harder to keep your home at the temperature you want it to be which will increase your heating bills. Clean these filters monthly, not just before the fall, for optimal performance.

Last but not least Change your batteries. Carbon Monoxide and smoke detectors are very important devices that should work properly.

This might look like a long list but there is still a lot of time. If you are a procrastinator or are busy with other more important projects this could be a good to-do check list before September ends.

If you have any suggestions or feedback…or have any topics you would like me to cover, please let me know. I would love to hear from you.

Roman Krzaczek Realtor
Quadrarealty.ca
250-285-2141

July in Real Estate:

Busy long weekend came to an end and the sun keeps smiling. I can’t believe what I’m about to say… but I miss the rain (for my garden). My garden is feeling the stress of super hot sun but I’m still loving the heat and enjoying the time spent at the lakes.

July was a busy month across the board, maybe not as busy as we have seen recently but that’s probably due to the stress test changes and also summer vacations. A lot of people are taking some time off and enjoying the summer.

Campbell River

The Vancouver Island Real Estate Board reports that;

“Inventory remains extremely tight in the VIREB area, tracking at a 21-year historical low. Active listings of single-family homes and row/townhouses dropped by 51 per cent from July 2020. In the condo apartment category, inventory decreased by 60 per cent from one year ago. Based on the demand VIREB is seeing, there is no doubt that sales would be higher if there were sufficient inventory.”

VIREB’s heated housing market continues to impact prices, which continue to increase throughout the board area.

The benchmark price of a single family home in Campbell River area is 639,100 up from $588,800 just 3 months ago.

Apartments in Campbell River area benchmark closed the $336,300 mark and Townhouses $465,700.

“Unless demand drops significantly or more housing supply comes online through new construction, the needle for VIREB’s inventory situation will not move by much,” states Mackay. “BCREA, VIREB, and other real estate boards continue advocating with policymakers at the provincial and regional levels to speed up the development process so that municipalities can expand supply more quickly to meet demand.”

In the month of July we saw:

Quadra Island had four new listings, and five pending sale (received offers and are waiting for completion)

Cortes Island saw one pending, one cancelled and two new listings.

Seems like a very busy month in such a small market.

Calgary

Price growth slows as supply to demand balance improves.

July sales totaled 2,319 units, which is well above long-term averages and the best July on record. The pace of sales growth has eased over the past few months, but so too has the pace of new listings growth. This has helped prevent any further monthly gains in inventory levels, and while overall supply remains slightly higher than last July, it’s mostly due to gains in apartment and row product.

The benchmark price of a detached home in the city of Calgary is $539,900, apartments: $254,100, semi-detached: $428,400 and row houses: $299,600.

Vancouver

Steady sales, reduced listings and virtually unchanged home prices

“Moderation was the name of the game in July,” said REBGV’s economist Keith Stewart. “Home sales and listings fell in line with typical seasonal patterns as summer got going in earnest in July. On top of moderating market activity, price growth has leveled off in most areas and home types.”

“Low housing supply remains a fundamental factor in Metro Vancouver’s housing market,” Stewart said. "Home sales remain above average and we’re starting to see price increases relent as well. Going forward, the supply of homes for sale will be among the most critical factors to watch. This will determine the next direction for house price trends."

The benchmark price for a detached home is $1,801,100. This represents a 21 per cent increase from July 2020 and is unchanged from June 2021.

The benchmark price of an apartment property is $736,900. This represents an 8.4 per cent increase from July 2020 and a 0.1 per cent decrease compared to June 2021.

The benchmark price of an attached home is $949,400. This represents a 16.7 per cent increase from July 2020 and a 0.3 per cent increase compared to June 2021.

TORONTO

JULY NUMBERS SHOW STRONG DEMAND CONTINUES FOR HOME OWNERSHIP IN GTA

“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the market place,” said TRREB President Kevin Crigger.

“There is a huge backlog of people seeking citizenship or permanent resident status in Canada. A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future. Policy makers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in major metropolitan areas,” said TRREB CEO John DiMichele.

Average Price of a detached home in area (416) is $1,695,541, semi-detached: 1,285,347; Townhouses: $926,437; and the average price for a condo: $700,061

It seems that demand across the country continues but maybe just at a slower pace. What would cause such a slow down? Most likely in my opinion the biggest factor behind this trend is the Mortgage stress test that has been recently introduced. The government decided to step in and cool down the overheating real estate market. One of the tools that can be used is the amount of credit that consumers can access. To me, based on the current market conditions statistics there’s a clear co-relation between the stress test and the slow-down. Another big factor that I have also witnessed in the daily life of a realtor is that some buyers are just tired and put the whole idea of buying a home on hold for now. Both buyers and sellers realize that we’ve been stuck at home for too long and might as well just enjoy the summer months and spend time traveling and spending it with your family and close friends. I wonder what will happen with the markets when the new lockdown happens. It appears that it’s just a matter of time before new measures are introduced to control the public. I understand the severity of the health crisis but I don’t always trust what the media feeds us. I would rather enjoy my garden and focus on my family.

Are you thinking of selling your home? Call me for a free home evaluation.

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

Quadrarealty.ca

June in Real Estate:

Craziest thing happened: a client of mine wanted to invest in Bitcoin. The bank loaned him $320,000 of his $400,000 purchase; he just had to come up with the $80,000, and then he owned $400,000 worth of Bitcoin! Can you believe they loaned him the money at 2.75% interest?! Crazy! His monthly payment on that loan with fees was about $1600, but then he rented the Bitcoin out to people for $2,400/mo, and made $800 each month and still got to keep his Bitcoin!! Even though he didn't own it free and clear, he was still able to charge other people to use his Bitcoin every month! 

At tax time, he was able to write off any interest he paid on his taxes, and depreciate his asset on his taxes to wipe out any gains, and he even got a 100% guarantee that there will be a demand for his asset as long as he owns it!!

Can you believe that; an asset that goes up in value AND that allows you to cashflow while you hold it??

Oh wait, I misunderstood his story. That wasn't Bitcoin, it was Real Estate... 

You can’t do this with any other asset class. Real Estate rules!

CAMPBELL RIVER

The Vancouver Island Real Estate Board’s latest report indicates that “inventory is rising slightly, which opens up a few more opportunities for buyers, but it is still historically tight on Vancouver Island. Although active listings of single-family homes dropped by two per cent from May, condo apartment and row/townhouse inventory rose by 16 and 23 per cent, respectively. The British Columbia Real Estate Association (BCREA) forecasts that market conditions may begin to even out somewhat by the end of the year. However, it would take approximately 2,500 new listings in the VIREB area to create an actual balanced market if activity continues at this pace. More inventory is certainly good news for buyers, even if the increases are slight,” says 2021 VIREB president Ian Mackay. “We’re also relieved to see a few more conditional offers again, which means the frenzied fear-of-missing-out mentality is tempering a bit.”

In Campbell River, the benchmark price of a single-family home hit $627,600 in June, up by 29 per cent from the previous year.

This morning- July 05, as I write this article, I checked the MLS to see what’s happening locally (as I do every single day). I’m noticing lately more and more price reductions on listings in our area. This could be an indication of the market finding its new normal. The price decreases are minor however and are usually used to refresh the listings and get more buyers’ attention.

METRO VANCOUVER

According to the Real Estate Board of Greater Vancouver monthly report for June,
Metro Vancouver’s housing market sets a steady, calmer pace to begin the summer season.
“Metro Vancouver’s housing market continues to experience strong seller’s market conditions, although the intensity of demand has eased from what we saw throughout most of the spring,” Keith Stewart, REBGV economist said. “The past two months have shown a market that’s shifting toward more historically typical conditions.” This is making multiple offers less common, allowing subjects to be seen on offers more frequently again, and is making new price records less likely.”

Sales of detached homes in June 2021 reached 1,262, a 45.7 per cent increase from the 866 detached sales recorded in June 2020. The benchmark price for detached properties is $1,801,100. This represents a 22 per cent increase from June 2020 and is virtually unchanged from May 2021.

CALGARY

Calgary’s housing market is showing few signs of letting up, as sales reached 2,915 units in June – a record high for the month. “It is taking time for supply to catch up with the demand in the market,” said CREB® chief economist Ann-Marie Lurie.

“Through the early spring market, many buyers did not have a lot of choice, but the recent improvements in supply are providing more options for those purchasers and supporting the strong sales we continue to see in June. At the same time, gains in inventory are taking some pressure off the market as it starts to trend towards more balanced conditions.”

The unadjusted detached benchmark price totalled $537,200 in June, nearly one per cent higher than last month and 13 per cent higher than last year’s levels.

TORONTO

The Toronto Regional Real Estate Board hasn’t posted their monthly report yet for some reason so I can’t provide you with accurate information but from what I’m reading and talking to agents in the region the same trend is happening there as well. In fact, the market slowdown has started in Toronto 3 months ago and it’s been gradually showing the same across the country.

Why is the market cooling? In my opinion, it is most likely the fact that the economy and travelling is opening up again and a lot of people don’t want to spend time and money on moving. A lot of people will choose to enjoy a trip to places like Quadra Island and Cortes Island to enjoy the tranquil nature and… no traffic (except the ferry traffic). I feel blessed and fortunate to live here during these difficult times. It has given me a renewed perspective on life and the appreciation for the little things in life. I appreciate all the tourists that are coming to visit our “rock” and support our small businesses. It is truly helping our community and I’m sure I’m not the only one thinking that. If you are a visitor here to our beautiful Quadra Island- Thank you! We appreciate YOU.

If you are interested in information about real estate in the area, contact me directly at home @ 250-285-2141. I network with lot of agents across the country and in the USA. I can help you to connect with great agents in your area and make your move easier. Visit my website for lots of interesting resources: https://quadrarealty.ca/

Enjoy the sun everyone!

Roman Krzaczek REALTOR ®

Home number: 250-285-2141

for more articles visit 

the "Discovery Islander" local paper where I write an article every two weeks. 
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Why hiring a REALTOR will make your life easier.

I believe in education and sharing information freely for the benefit of the public. A lot of people seem confused or just don’t understand what we actually do and I would like to shed some light on the topic.

What do real estate agents actually do?

We write contracts, negotiate a price and terms for our clients, advise/ give opinion, we constantly educate ourselves and our clients. We spend nights worrying and re-reading contracts, constantly anticipating what could go wrong and how to protect our clients if it does. We do a lot of free work and are the last ones in a transaction to be paid. The assumptions of big egos, big paycheques and fancy cars often take the centre stage; however, there are a lot of activities happening behind the scenes the public doesn’t see.

Our license is issued by the province of BC titled “Real Estate trading services”. The license needs to be renewed every 2 years upon completion of several mandatory Professional Development courses, be in good standing (no criminal record) and of course pay the fee.

Many people will be surprised, even some agents, that being a real estate agent requires much less sales than most people assume. As agents, we owe our clients a Fiduciary Duty which means that legally we must take our client’s interest as the highest priority, even if that means a loss of our own earnings. When you go to buy a car for example, the sales person owes you NO duty to protect your interest. The sales person will simply match your needs with their inventory.

When you hire an agent, the agent is working for you to make sure you can buy or sell your property in a safe and legal way and that you know as much about the property as possible.

There are 4 basic duties Realtors owe to the public:

Loyalty- a realtor’s duty to their client is to be loyal to them and avoid conflict of interest. If your listing agent tells you he/she already has clients to buy your house, it may sound enticing but it’s a big red flag. You have to wonder who the agent works for. Are they working for you to get the best deal or the buyer? The agent is supposed to be working only for your benefit.

Full Disclosure- your realtor is supposed to always tell you EVERYTHING that he/she knows about the transaction, the property and the market.

Avoid Conflict of Interest- this can be very tricky especially in a small community when an agent knows both the seller and the buyer. The question is always the same- who is the agent working for. Recent rule changes allow agents to represent only one party to the deal. It is easy to get carried away as we naturally want to help people. However, when I am selling a property for a client and a buyer calls me to ask if I can show the property, I will advise them to arrange the showing with their own realtor and I will make sure they understand who I represent OR do what my client advises.

Confidentiality- When we represent a seller or a buyer, same rule applies. We cannot share information about our client’s motivation or anything private unless our client allows us to do so in writing. Even after the transaction is complete, private information should remain confidential.

In our industry there is now more than ever before more emphasis on ethics and protocols to protect the public from predatory behaviours of agents. For example, we are not allowed to ask you any personal questions until we give you 2 forms called “Disclosure of Representation” and “Disclosure of Privacy”. It makes it awkward and unnatural as a conversation starter but in order for us to be fully compliant with the rules we have to do it that way. Both of these forms basically inform you of all the things I have just written in this article. 

Any agent these days needs to be also connected and fluent in technology. According to statistics, 90% of buyers find their new home online. The majority of marketing of your home is done online and virtually all the due-diligence is done online as well.
When hiring an agent, think about how busy the agent is and how much time they will dedicate to you. How many clients is the agent working with right now? Do you want to be the 4^th client or do you deserve to have the full attention of your agent?

Don’t be afraid of your Realtor! Ask us questions, talk to us. Vast majority of agents are good people that very much care about their clients. I obviously can’t speak for all agents out there but I know a lot of agents and they all show a high degree of morals and caring. What attracted me to this industry is that I can help more people with some of the most important investments of their lives and it is an honour to be part of the process.

Quick Market update:

Vancouver is seeing a market shift already. When a listing is priced well it will show fairly quick but the average days on market has gone closer to 35 days now. In some cases, sellers receive no offers in the first 2-3 weeks. I was convinced that the hot market would continue into the summer and in some regions it's still the case. Locally in the Campbell River area or the North Island things seem to continue to sizzle. Quadra Island listings are mostly over a $1mil these days. Not much is available for less than a million.

If you’re thinking of selling, NOW is probably the best time. If you have any questions or suggestions, please don’t hesitate to contact me directly at 250-285-2141. I’m here to serve you better.

Roman Krzaczek