The Bank of Canada decided to reduce its target for the overnight lending rate from 5% to 4.75%. The move was widely expected by financial markets and marked the Bank’s first rate reduction since the onset of the pandemic four years ago, bringing rates down to where they stood exactly one year ago.

In a scheduled announcement on Wednesday, June 5, 2024, the Bank noted Canada’s economy picked up in the first quarter of 2024 but still came in weaker than anticipated. While growth in consumer spending, business investment, and the housing market remained solid, the Bank once again made note of the fact that employment has been rising at a slower pace than working-age population growth.

The Bank continues to focus on elevated shelter costs as a significant contributor to inflation. However, it also noted that both headline and core measures of inflation are showing signs of downward momentum and are close to historical averages.

With inflation now back in the Bank’s preferred range of 1-3% and increased confidence that inflation continues to move toward its 2% target, the Bank stated, “monetary policy no longer needs to be as restrictive” in its decision to lower the policy rate by 25 basis points.

The Bank of Canada’s will make its next scheduled interest rate announcement on July 24, 2024, as well as publish its full outlook for the economy and inflation in its next Monetary Policy Report.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

INTRODUCTION

In a widely anticipated rate announcement today, the Bank of Canada (BoC) has decided to drop the overnight lending rate by 0.25 percent to 4.75 percent. This comes as a welcome relief for many consumers, economists and industry professionals, as Canadians have been weighed down by a high interest for over two years.

The CPI (Consumer Price Index) for Inflation has been steadily decreasing since August 2023 from four percent, coming down over half from the high of 8.1 percent in June 2022. This steady decrease to April’s value of 2.7 percent is a welcome sign that the economy has softened back to manageable levels and inflation has eased to the target band of one to three percent for the Central Bank. This morning’s rate decrease mirrors this sentiment that the Bank of Canada is satisfied with the ease in inflation. That being said, it’s likely that another rate cut might not happen until later in the year as they do not want to be too premature and lead us back into high inflation territory.

How will this impact mortgages and the housing market?

So, what does this mean for consumers? With the rate cut, individuals on variable/adjustable rate mortgages will see a bit of relief in their cost of borrowing. Mortgagors on adjustable rate mortgages should see a payment decrease , whereas borrowers on static variable mortgages will likely not see any change on their payments if they have yet to hit their trigger point on their mortgage. The trigger point of a mortgage is the point at which the monthly payments do not cover the interest of the mortgage anymore and the outstanding balance exceeds a certain percentage of the original purchase price, so the lender would force the borrower to either fix their mortgage into a fixed rate mortgage or pre-pay a lump sum to keep their amortization in line. Many borrowers saw their mortgage hit this trigger point in 2023, so this rate cut would be a welcome change for many individuals that saw their interest rate go up by 4.5 percent or more in the past two years.

Fixed rate mortgages will continue to track the bond market, which moves independent of the prime rate, but decreased borrowing costs will likely offer relief for the fixed rate soon after, as well. With lower rates on the horizon, bond investments become more attractive in the short term which in turn push up the price of bonds and subsequently decrease the yields. Fixed rate mortgages move very closely to government bonds of the same term, so the lower yields on bonds inevitably lead to lower mortgage rates for consumers. We expect this steady decline to continue into Q3 and Q4 of 2024, with rates hopefully settling into the low 4 percent to high 3 percent range, which is consistent with interest rates pre-pandemic.

Consumer confidence in the market has been high, with many waiting on the sidelines to jump once the central bank signals the first cut. With today’s announcement, we expect more buyers to enter the market, which will drive up competition and home prices. We saw an uptick of 4 percent in buyer activity and the Composite HPI (Home Price Index) from January to April already, so lower rates will inevitably increase this value even further. If Q1 2024 was any indication of the real estate market for the rest of the year, we believe a nine percent increase in price by the end of 2024 is not out of the question, compared to the same period last year, based on data from Royal LePage.

Advice for Homeseekers following the rate cut.

For individuals looking to purchase within the next four to six months, I’d highly recommend starting a pre-approval sooner rather than later to ensure you solidify your budget; the market moves quickly so the best thing to do is to be prepared! Have the down payment ready, ensure your mortgage broker or advisor has all the necessary documents, and keep an open channel of communication with your realtor about realistic closing timelines. We’ve already started to see offers go in without subject to financing or other waivers, so we may see more of those as rates drop in the following weeks.

For borrowers who are looking to renew in the next four months, I’d also recommend reaching out to your mortgage advisor to ensure they are securing the best rate for you ahead of renewal. The banks typically do not offer the best renewal rate upfront, so it’s always a good idea to see what other options are available in the market. If rates drop prior to renewal, your advisor can always float the rate down to the new, lower rate, so there’s no disadvantage of starting earlier.

One last note to consider: consumers have been in a high-rate environment for about two years now and we’ve seen prices come down considerably from highs of 2022 due to increased borrowing costs. If you compare the aggregate HPI for Canada over all property types, prices have dropped about 14 percent, reflecting about a $120,000 drop in the benchmark price. Borrowing costs have gone up about 4.5 percent in the same time span, so buyers in this market are still better off than individuals who bought at the peak of 2022 at low rates—a rough savings of around 5 percent or about $43,000 over the past two years, based on the benchmark price. This understandably comes with caveats based on property location, price and whether individuals took a fixed rate mortgage vs a variable rate, but the math holds true when comparing the prime rate over all property types in Canada. With the end in sight, there hasn’t been a better time to buy in the past two years than right now, before market demand catches up with home prices.

As always, our suggestion remains the same to all our clients: invest with intention. We never suggest buyers purchase a property for the sake of a “quick flip” or to try and time the market. If the property fulfills your needs, whether it be for a primary residence or for investment, and the payments are manageable for your long-term goals, purchasing real estate has always been the leading path—albeit not the quickest—towards lasting wealth among Canadian families.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

Down Payment Grants

The standard 20% down payment isn’t always feasible for first-time home buyers, turning them off from the idea of purchasing a home altogether. If this is the case for your client, investigate available down payment assistance options.

 “[Many] lenders have grant programs or down-payment assistance—and in certain cases zero down even for a non-veteran—for first-time buyers who are strapped for cash but desire to own a home,” says Tia Coates, a real estate professional based in Phoenix, Arizona. “There are also zero-down loans for USDA and VA loans for veterans.”

 She says that some grant programs vary state-by-state, but that federal programs from agencies like Fannie Mae and Freddie Mac are available across the country. In some instances, grants of $5,000 or more are available. 

Group Economics

Amid ongoing housing supply challenges and rising prices, many first-time homebuyers are turning to joint ventures or “group economics” in lieu of a solo purchase. In real estate, starting somewhere is crucial, and collaborating as a group often enables greater progress versus acting alone.

 “Typically involving two to four individuals, this strategy entails pooling financial resources and collective purchasing power to acquire property,” says Isaiah Hazward, director of sales for the Coalition Properties Group in Washington, D.C. “By combining their resources, individuals who may lack sufficient funds individually can achieve homeownership collectively.”

Along with getting into a home, this strategy reduces overall financial risk since costs and ongoing maintenance are shared equally among participants. Coates adds that an alternative to this is to utilize a co-signer—such as a parent with well-established credit—to help offset the closing costs and down payment.

NACA Purchase Program

The Neighborhood Assistance Corporation of America (NACA) is a non-profit organization committed to “closing the racial wealth disparity gap through character-based lending.” The nationwide program serves as an economical solution for low-to-moderate income earners buying for the first time.

 “With a proven track record of over $20 billion in mortgage commitments, NACA offers fixed-rate mortgages featuring below-market interest rates, waived down payment and closing costs, and no mortgage insurance, which often creates an increase in purchasing power when compared to traditional loans with mortgage insurance requirements,” explains Hazward. 

Additionally, NACA provides complimentary credit counseling services with no minimum credit requirements for purchases.

Unconventional Purchases

The current housing market guarantees some pretty stiff competition, particularly for first-time home buyers who may not have as much financial leverage compared to those coming in hot with full cash offers. In this case, it may make sense to look into less conventional avenues.

The first option is to consider bank-owned properties in your search, says Tezeta Roro, a real estate professional based in New Jersey. “While the process, decision makers, and paperwork involved is often different from buying from a private owner, it can be a good option for first time homebuyers who may have a hard time competing in the current market due to low down payment,” she says.

Another option is to consider buying from a family member or friend you know. This helps eliminate some competition and can serve as a win-win since it maintains generational wealth. To that end, Roro adds that those looking to downsize can potentially leverage the 1031 exchange tax code to postpone capital gains taxes and buy a property that can be written into a will to be gifted to the adult child, making it a tax-free gift upon death.

Negotiated Seller Concessions

When people talk about what they can afford, they often have a monthly mortgage payment in mind. Coates says that negotiating seller concessions is vitally important to saving your client hundreds of dollars each month. 

“In some areas, we still see sellers willing to pay closing costs for buyers, which helps offset how much the buyer needs to bring to the table,” Coates says. Other examples of seller concessions include covering some maintenance or home repair costs prior to closing, contributing to the down payment, including furniture or appliances in the sale, or buying down the interest rate.

If your clients are feeling the pinch of soaring home prices and inflation, consider whether any of these solutions can relieve financial tension and get them in their dream home sooner than they imagined.

They could save “hundreds of dollars a month” by doing this one simple task, a housing expert says.

© South_agency - E+/Getty Images

As mortgage rates once again move above 7% this week, more home buyers may be desperate for savings to better afford homeownership. But housing experts say a common mistake could be costing them thousands of dollars in potential savings: failing to shop around for their mortgages.

Slightly more than half—54%—of recent buyers who recently took out a mortgage say they only gathered one quote from a loan office. But for those who did take the extra effort to shop around, they say their lowest offer didn’t come just from the first lender they contacted, according to a new survey from LendingTree.

“The exact amount that a borrower can save by shopping around for a mortgage will vary based on factors such as the rates they’re offered and the size of their loan,” says Jacob Channel, LendingTree’s senior economist. “That said, it’s not out of the realm of possibility for someone who received multiple offers and then picked the one with the lowest rate to save hundreds of dollars a month, thousands of dollars a year and tens, if not hundreds, of thousands of dollars over the lifetime of their loan.”

Indeed, a separate study from Freddie Mac found that borrowers who received multiple lender rate quotes saved between $600 and $1,200 annually on their home loans. A different survey from LendingTree put the savings at potentially $84,000 over the lifetime of a loan when gathering multiple quotes, or even possibly savings of $234 a month.

Yet, only 22% of recent home buyers say they gathered offers from two lenders, while 14% got offers from three lenders. Only 2% received offers from four lenders, according to the LendingTree survey.

Buyers who gathered just one quote said they mostly did so because they felt confident they received the best rate after contacting just one lender, or they just went with the lender their real estate agent recommended. They also said they felt in a rush to lock in financing due to the competitive housing market, the LendingTree survey finds. Fifty-four percent of buyers say they received their current mortgage from a lender whom they use for other services like checking accounts, auto loans or credit cards.

Older generations tend to be the most likely to accept the first mortgage offer without shopping around (72% of baby boomers, ages 60 to 78) versus 59% of Generation X (ages 44 to 59) and 38% of millennials (ages 28 to 43), according to the survey.

Better Shop Around

Calling multiple lenders may seem daunting, but could be worth it for potential savings—particularly as home buyers find themselves at the top of their budgets. Experts recommend gathering quotes from multiple types of lenders, like banks, mortgage brokers and mortgage banks. Also, The Mortgage Reports recommends gathering quotes from at least three to five lenders, and comparing interest rates and lender fees to secure the best deal.

Consumers may be distracted by fancy fixtures and finishes during a home tour, overlooking more serious problems, researchers say.

© werayuth - iStock/Getty Images Plus

Eighty-two percent of home buyers express regrets about their recent property purchase, according to a new survey(link is external) from Clever Real Estate. Their most common regret: buying a home that requires too much maintenance.

Twenty-eight percent of home buyers say they were shocked at the cost and time needed to maintain their property. About one-third placed the blame on the seller for not being upfront about how much maintenance the home required. The second most common reason home buyers cited as a basis for their regret was that the home did not meet all their needs (24%), the survey shows.

Are house hunters getting distracted by a home’s fixtures and finishes while overlooking other key elements? Well, survey respondents rated an updated kitchen, remodeled bathroom and contemporary lighting as the most important during their home search. These home features were rated much higher than more operational aspects of a home, such as having a solid foundation or an updated electrical system, the survey finds.

“Aesthetic changes can certainly add value and style to a home, but buyers should look beyond the facade to a home’s underlying qualities,” write the researchers who authored the Clever Real Estate report. “Cosmetic fixes can mask structural problems that may cause safety hazards and lead to expensive repairs that most buyers want to avoid.”

A home with fresh interior paint—the fourth most important aspect to buyers, according to the survey—is only a fraction of the cost of purchasing a home that has foundation or structural issues, which ranked at the bottom of buyers’ home-shopping priorities. 

Tips to Keep Buyers in Check

Certainly, a home inspector can provide a thorough investigation of a property once a buyer makes an offer. But during initial home tours, buyers can look for a few signs to indicate property condition. Buyers also appreciate reinforcement from their agent: Consumers say one of the top benefits of using a real estate professional is to have an experienced eye point out unnoticed features and faults of a property, according to the National Association of REALTORS®’ 2024 Home Buyers and Sellers Generational Trends Report.

House hunters should ask “plenty of questions, even if you think the answer is obvious, as this can help you to gain a better understanding of the property,” advises Bradley Mackenzie, who specializes in property valuations for Stokemont Surveyors(link is external). “Make plenty of notes—both positive and negative—throughout your viewing, as these will come in handy when making decisions in the future. If there’s something that catches your eye, take a picture you can come back to for reference and share for a second opinion. Ultimately, you want to become a sponge and absorb as much information as you possibly can.”

The home insurance firm Hippo offers a printable home tour checklist(link is external), which includes items for yard maintenance, age of appliances and home systems, that buyers can fill out during a showing. Here are a few tips to keep in mind.

• Ask about maintenance costs. Since maintenance issues tend to be the top buyer regret, home shoppers will want to find out more about annual costs to factor into their purchase decision. They can ask sellers for the average utility costs (e.g. water, electricity, gas and trash collection) as well as any regular maintenance issues or extra fees, such as homeowner’s association dues. Also, a general rule of thumb: Homeowners should budget 1% to 4% of the home’s value for annual maintenance costs.

• Check on high-use items. “The first things you want to check around the property are the things that will have had or be getting a lot of use,” Mackenzie suggests. Check plug sockets and outlets, scanning for any visual abnormalities, test switches and flush toilets.

• Find out the age of items. How old is the roof, and has it had any previous issues or repairs? How about the HVAC? Checking up on the age of key components within the home may offer insight into how long they will last until a potential repair or replacement is needed. Check out the “Study of Life Expectancy of Home Components(link is external),” produced by the National Association of Home Builders and Bank of America Home Equity, offering the average length of time for common household systems. Also, depending on the age of the home, you may need additional checks.

• Watch the smells. “Unpleasant odors can be more than just an unfortunate nuisance,” says Courtney Klosterman, home insights expert at Hippo. “Sometimes, weird smells in the house can be early warning signs of underlying problems that could lead to bigger issues down the road.” Be leery of fishy odors, a possible sign of an electrical issue; an ammonia smell unrelated to cleaning, which is potentially a refrigerator or a washing machine issue; or a damp and musty stench, an indication of a moisture problem, Klosterman says.

• Check on the house’s orientation. The orientation of the house to the sun may matter to some home buyers, and it could affect heating, cooling and maintenance costs. The home’s direction will have a bearing on how much natural light flows in at certain times of the day. South-facing and East-facing houses tend to get the most sunlight. Experts say that North-facing homes may be less expensive to cool when temperatures rise, but since they tend to get less sun flowing through the windows, they may cost more to heat in the winter.

• Judge vehicle accessibility. Is there sufficient room for your car in the garage? Is it able to adequately accommodate multiple vehicles? If you have any family members who have a disability, how accessible is your home to parking? Also, another common overlooked item that “can cause real issues down the line is how accessible the home is for delivery drivers. Is it easy to find via GPS?” Mackenzie says. “And is there enough room to maneuver vehicles in the area?”

• Look beyond the property. Check out the home via Google Maps to see how close it is to neighborhood amenities, such as shops and gas stations. Nearly 80% of consumers rank a “house close to shopping” as a quality of their “dream home,” according to a survey conducted by Lombardo Homes. Buyers also may want to do some test-runs to get a feel for how close items are during rush-hour, such as a drive to schools and parks as well as having access to safe, walkable pathways nearby, Mackenzie says.

• Look at the structural integrity. A home inspector may recommend further inspections if they suspect any problems. But during a buyer’s initial tour, you may spot some key indicators of poor build quality or underlying problems, such as large cracks throughout the walls. “They can be tricky to spot at times, as some tenants might attempt to cover them over. However, if you make close observations around the doorways, windows and any extensions on the house, you should pick up on any major issues,” Mackenzie says. Hippo provides the following chart to help decipher the meaning behind certain wall cracks.

  

  Source: Hippo, hippo.com

INTRODUCTION

When I opened up the latest stats from Greater Vancouver Realtors, I was taken aback by the sheer volume of listings on the market in the Lower Mainland - more than 12,000. That is a lot for any market.

So what’s causing this spike in homes on the market? I have my own suspicions based on conversations from our partners in both British Columbia and Alberta. I presumed this increase in listing activity was primarily due to inter-provincial migration to Alberta and I suspect that’s still part of what’s happening.

When I reached out to REW partner Ty Corsie from Royal LePage - Wolstencroft, he shared his insights into what’s behind this ‘massive amount of inventory’ on the market right now. I think we can all agree that sellers always list in the spring anyways but Ty lists a few new reasons as to why inventory has spiked.

The effect of government legislation.

The federal government released its housing strategy last month and we spoke about what that could mean for buyers and sellers in our article, Unpicking the Federal 2024 Budget. Sellers are trying to offload properties prior to the new capital gains taxation policy taking effect June 25th. While I don’t totally agree this will have the impact people think it will have on the sale of secondary residences, the move, compounded with the new BC short term legislation restrictions, makes for a compelling case to sell if you’re an investor in British Columbia.

Interest rates are still biting.

It’s pretty clear that buyers (and agents) anticipated at least one interest rate cut by June of this year. With less than a month until the next announcement on June 5th, I’m not so sure we still have that same optimism. Corsie predicts that even if there’s a reduction of 25 base points, there will be little effect on the market. Even if a rate decrease brings more consumer confidence, will enough buyers buy enough properties to balance out the market? I’m not so sure. With 12,000 listings on the market, it seems to be a buyer’s world out there.

Adding fuel to the fire, buyers who bought while interest rates were high, bought with the anticipation that rates will come down - we all thought this. That reality hasn’t quite come to fruition, so it also seems that homeowners simply can’t afford their mortgages any longer - there’s only so much stretch a budget can take before breaking.

Grass is always greener…

High costs of homeownership and high costs of living in general have people listing and relocating, often outside of BC.

Recent stats show nearly 70,000 people left BC last year - most of them to Alberta. This was the first time in more than a decade that more people left BC than moved here.

“It used to be a sell and a buy, staying in the same market,” says Corsie. “Now it’s a sell it and leave.”

Tips for buyers and sellers.

Key strategies for sellers right now? Set expectations and price accordingly. “Cheapest house on the nicest block mentality,” says Corsie.

Key strategies for buyers? They have a lot of choices right now, but it’s still super important to understand the nuances of specific neighborhoods and understand how absorption rate can still be different for specific types of properties depending on their needs and interests. Savvy agents know that when rates drop, competition gets fierce.

For me, stats in May are going to tell us a lot. Will buyers dive in and snatch up the properties available? Or will they keep waiting until mortgage rates start to dip?

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

Port Moody is planning to rapidly expand its electric vehicle (EV) infrastructure over the next six years.

The Tri-Cities Zero Emission Mobility Plan was unanimously endorsed by council on May 21, aiming to nearly quadruple the number of charging stations around the city by 2030, for an estimated cost of nearly $1.7 million.

“Our mobility ecosystem is changing, and changing fairly rapidly,” said Jeremy Finkleman, a WSP consultant hired by the city. “The share and pure number of EVs on Port Moody streets will be drastically increasing in the near term.”

Federal and provincial mandates banning the sale of internal-combustion-engine vehicles by 2035 is expected to spike the number of registered EVs in Port Moody from around 700 in 2021, to between 3,400 and 8,600 by 2030, according to WSP modelling.

As “shortfalls” exist in Port Moody’s current charging infrastructure, notably in public areas, a significant expansion is needed to accommodate the expected EV influx, according to the report.

The city needs to grow the number of charging stations from 32 level-two EV chargers and one DC fast charger today, to approximately 130 level-two chargers and 11 fast chargers by 2030, the report stated.

Installation costs for the two charging station types would come with a price tag of $800,000 and $860,000, respectively.

Port Moody is not alone. Across the Tri-Cities, 850 to 2,220 level-two public chargers will be needed by 2030, along with 75 to 200 DC fast chargers, according to the report’s projections.

“The reality is to move to a more sustainable future, we need to do more than just shift how people are traveling,” Finkleman said. “We need to change the way vehicles are propelled, we need to change the fuel in vehicles.”

Transportation emissions account for around half of Port Moody’s total emissions, and its 2020 Climate Action Plan has set a goal achieving carbon carbon neutrality by 2050.

Currently, 83 percent of all daily trips in Port Moody are taken by automobile, with approximately 1.4 vehicles per household.

While the CAP goal is to have 40 percent of all passenger vehicles and 25 percent of all commercial vehicles be electric by 2030, Finkleman said he did not think the target is achievable.

The most recent data (2021) shows that 13.7% of Port Moody’s new vehicle sales were EVs, while only 3.5 percent of its total vehicles are EVs.

“That 40 percent doesn’t strike me as being realistic,” Finkleman said, adding a 20 percent figure for light-duty EVs was supported.

Upgrading local charging infrastructure “signals a pivotal commitment” by the city, according to the report.

Its strategy has two main areas of focus: installing public charging stations throughout the Tri-Cities; retrofitting multi-unit residential buildings and ensuring new builds are 100 percent EV ready.

Public priority charging locations have also been identified, recommending areas with high population and employment density across a mix of land use types.

A map showing locations identified for EV charging stations.

Multi-family residential buildings make up 35 percent of Port Moody’s housing stock, and the report stresses the need to ensure residents have access to chargers through bylaw changes, retrofit support and legislation.

It underscores the importance of advocating for the province’s right-to-charge legislation – which would prevent stratas from prohibiting residents from installing EV chargers in their parking spots. 

While EV upgrades will come at a significant cost to the city, the vast majority of the upgrade costs will be borne by building owners and occupants, according to the report.

It calculates that if 25 percent of Port Moody’s 32,000 multi-family residential units are retrofitted with one charger per parking stall by 2030, the cost will range from $30 to $114 million. There is opportunity to leverage the province’s low-carbon fuel credits to support the needed expansion, the report stated.

Coun. Diana Dilworth said the province subsidized charging stations in her residential building, covering two-thirds of the cost for owners. She added that while supports the right-to-charge legislation, EV upgrades should not come at the expense of municipalities or taxpayers.

“I think there’s a great role for private builders,” Dilworth said. “I wonder if, as a council at some point, we might be able to talk about mandating the number of EV chargers in (new transit-oriented development areas).”

Collaboration between municipalities, regional entities, and private businesses will be needed to help plug the EV infrastructure gap and share the financial burden, according to the report.

For instance, Finkleman suggested Tri-Cities’ governments share the staffing costs related to the zero emission mobility plan; or that public or commercially owned land be offered up for station locations, such as municipal parking lots, grocery stores, gas stations, and mall parking lots.

Another aspect of the plan is supporting and promoting the use of E-micro mobility options, such as electric scooters and bikes.

While Coun. Callan Morrison supported the 10-year timeline, he raised concerns about the dominant investment into EV infrastructure as cleaner options may exist by 2050.

He pointed out that Toyota Prius kickstarted the hybrid vehicle era just 25 years ago, but Telsa battery-powered EVs caused a dramatic market shift in 2006.

“Now everybody’s talking about battery vehicles, and that’s a matter of six or seven years,” Morrison said. “I just don’t want us to go down a path that puts us too much invested into one technology path.”

Morrison added the extraction practices related to EV batteries are “ridiculously harsh on the environment,” and he expects the market trends to change again over the next decade.

Finkleman said the plan was deliberately focused on electric-mobility options, and the near term actions required to accommodate the number of new EVs. He said a longer-timeframe approach may be warranted to explore other technology types.

“You’re absolutely right,” Finkleman said. “Going forward, certainly to 2050, there are a vast array of different types of zero-emissions mobility (options).”

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

Despite rising inventory levels, many of Canada’s homebuyers have remained on the sidelines this spring, resulting in more balanced, less feverish market conditions this past month.

According to the latest market report from the Canadian Real Estate Association (CREA), home sales across Canadian MLS Systems dropped 1.7% month-over-month in April, 2024. Actual monthly activity came in 10.1% above the same month last year.

At the same time, the number of newly listed homes increased 2.8% month-over-month in April, 2024. With slower sales and more new listings, the total number of homes on the market jumped by 6.5%, hitting its highest level since just before the onset of the COVID-19 pandemic. This was one of the biggest monthly increases ever recorded, second only to the mass slowdown the market experienced in early 2022.

“After a long hibernation, the spring market is now officially underway. The increase in listings is resulting in the most balanced market conditions we’ve seen at the national level since before the pandemic,” said James Mabey, Chair of CREA’s 2024-2025 Board of Directors, in the monthly report. “Mortgage rates are still high, and it remains difficult for a lot of people to break into the market but, for those who can, it’s the first spring market in some time where they can shop around, take their time and exercise some bargaining power. Given how much demand is out there, it’s hard to say how long it will last.”

With sales down and new listings up in April, the national sales-to-new listings ratio fell to 53.4%, just below the long-term average of 55%. By the end of April, there were 4.2 months of inventory nationwide, up from 3.9 months at the end of March, the highest level since the pandemic began and above the long-term average of five months.

“April 2023 was characterized by a surge of buyers re-entering a market with new listings at 20-year lows, whereas this spring thus far has been the opposite, with a healthier number of properties to choose from but less enthusiasm on the demand side,” said Shaun Cathcart, CREA’s Senior Economist.

The actual national average home price was $703,446 in April of 2024, down 1.8% from the same month last year. The National Composite MLS Home Price Index (HPI) was unchanged from March to April, marking the third month of stable prices. Regionally, prices are mostly flat across the country, except in Calgary, Edmonton, and Saskatoon, where they’ve been steadily rising since the beginning of last year.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

Giving legal advice to clients instead of telling them to consult a lawyer can get you into serious trouble.   https://www.nar.realtor/videos/window-to-the-law/avoiding-unauthorized-practice-law    

You can get fined, have your real estate license revoked and even face a lawsuit if you offer legal advice to your clients. You may think it’s harmless to answer just a question or two, but it could land you in hot water.

Engaging in “unauthorized practice of law” violates Article 13 of the REALTOR® Code of Ethics, which requires real estate professionals to recommend legal counsel to their clients when handling certain situations during a real estate transaction. State laws can vary on this, creating a gray area in some incidences.  

A broker in New York, for example, was disciplined for inserting terms of a purchase money mortgage into a sales agreement. In Ohio, a real estate professional was accused of unauthorized practice of law after answering a landowner’s questions about specific lease terms and legal rights.

You should understand your jurisdiction’s statutes, regulations and court decisions, Mike Rohde, a staff attorney for the National Association of REALTORS®, says in the latest “Window to the Law” video. States like Minnesota, Colorado and Utah have specific statutes governing what’s permissible by real estate professionals during transactions while other state laws may be more vague.

Familiarize yourself with statutes, regulations and case laws about the unauthorized practice of law from your state’s real estate commission, state REALTOR® association or local counsel, Rohde advises.

“Most states prohibit non-lawyers from drafting contracts. However, it is generally acceptable for real estate professionals representing consumers to insert factual information, like party identities, property identifiers and amounts, into blank attorney-approved form agreements,” Rohde says. “But making modifications beyond factual information or offering legal interpretations of provisions likely constitutes the unauthorized practice of law.”

Avoid making major modifications to form agreements; these likely require legal expertise, Rohde says. Also, do not interpret contract provisions or provide legal advice. Always encourage parties to consult an attorney, he says.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

May 2024 Fraser Valley Real Estate Market Insights

Welcome to the May 2024 Fraser Valley Presale Pulse episode, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, presale, and resale trends over the last 30 days affecting the local real estate market across the Fraser Valley. In this month's episode of the Presale Pulse: 

Download the Report

FRASER VALLEY'S PRESALE DOMINANCE 

The Fraser Valley presale market saw a notable resurgence, with a significant proportion of project launches concentrated in this region, marking over 80% of the total launches across Metro Vancouver. The primary focus of activity centred on wood frame and townhome developments, with one concrete project, Parkway 2, making its debut. Parkway 2 garnered substantial success, selling 150 homes and releasing an additional 40 ahead of schedule. Notably, they introduced enticing incentives such as the interest builder program, reduced assignment fees, complimentary storage, and extra parking for select homes. Other launches in Surrey and South Surrey, like Liberty Encore and Harmony, showcased competitive offerings including discounts and limited-time inclusions like air conditioning. Projects like Sage by Diverse Properties in Abbotsford attracted attention with their low advertised starting prices, exemplifying the market's response to well-aligned pricing strategies.

INVENTORY SURGE AND BUYER'S ADVANTAGE IN FRASER VALLEY RESALE

The Fraser Valley resale market experienced a modest increase in sales activity, with 1,471 transactions, reflecting a 5.4% rise compared to March. However, this figure represents a 5.3% decline from the previous year, indicating subdued market conditions. The number of active listings surged by 18.0% from the previous month, totalling 7,313 properties available for sale. This substantial increase is even more pronounced when compared to the previous year, showing a notable uptick of 57.9%. Such a surplus of inventory gives buyers more options and time to make decisions, fostering a relatively balanced market environment. Despite this, the market maintains a level of caution, with buyers showing restraint in the absence of confirmed rate cuts. The Housing Price Index (HPI) appreciated modestly by 0.5% over the past month, reaching $1,013,600 across all property types. This slight uptick suggests stability in pricing, although overall prices remain approximately 15% below the peak levels recorded in March 2022.

PRESALE PROJECTS COVERED IN THIS EPISODE

• Portico - Wanson Group

• Liberty Encore - Platinum Group 

• Harmony - Apcon Group

• Sage - Diverse Properties 

• Stowa - Genaris Properties 

• Fleetwood Village - Dawson + Sawyer

• Azure Grove - ML Emporio Properties 

LINKS MENTIONED IN THIS EPISODE:

• May 2024 Presale Pulse Report 

• MLA Advisory Services and Sample Reports

• Contact Advisory

• Subscribe to MLA Newswire

Subscribe to the MLA Canada YouTube Channel or find the Presale Pulse on your favourite audio streaming platform: Apple, Spotify, Amazon Music, iHeart Radio

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

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