March 2022

All posts from March 2022

Canada’s Most Moved-to Cities 

by Bevony on 31 March 2022 Comments Off on Canada’s Most Moved-to Cities 
Photo by Ketut Subiyanto:

2021 was the second year of the global COVID-19 pandemic.  This has changed the way that Canadians live, and also has changed where they live.  There are currently more than four million Canadian workers working from home.  This change in work environment has given them the freedom to change their plans on settling in major urban centers.  Persons are now looking to settle in smaller cities where they can afford more square footage for their money.

A recent report from Statistics Canada shows that people are migrating to the East Coast more so than the prairies and metropolitan areas. Another report by U-Haul based on its customers is showing Canadians moving to smaller towns like Alberta and Rural Ontario. 

Alberta is the Top Province for U-Haul Movers

U-Haul’s report is based on customer data, and they are seeing a rise of 33% in one way U-Haul trucks arriving in Alberta. Within the province, the top city and destination seems to be Calgary. The arrival of new residents in the city has caused an increase in home prices, as the demand rises above the supply. In January of 2022, the average cost of a home in Calgary was $510,701.  This reflects a year-over-year increase of 8%. 

Most Moved to Cities in Ontario 

Wild Alberta took the prize for the most moved province of Canada. Ontario was also high on the list. Here we saw smaller communities receiving the newest residents. We believe that in the sky high prices in the greater Toronto area, many homeowners move to smaller communities.  In these smaller communities, individuals find more affordable homes and more square footage for their money.

 There has been a change, you know what Canadians are looking for in your homes. People are moving away from open floor plans, I know, seeking homes with dedicated spaces for work, relaxation and exercise.

A recent Zolo survey showed that 34% of Canadians wanted a change in the size or layout of their homes after living through the COVID pandemic and its ensuing restrictions. We think this is one of the major driving factors in choosing where people want to move to. These smaller communities offer more square footage and space for their home offices at a more affordable price than their current place of residence. 

Top Moved to Cities As Per U-Haul’s Data 

Photo by Curtis Adams:
City Approximate Average Home Cost% More Affordable Than Toronto 
North Bay $478, 00056
Belleville $546,00050
Greater Sudbury $458,000 58
Kingston $578, 00047
Owen Sound-Port Elgin$555, 00049
Sault Ste. Maire $269, 00075
Chatham $457, 00058
St. Thomas $707, 00035
Sarnia $539, 00051
Brantford $758, 00031
Orillia $748, 00032
Peterborough $814, 00026
Cornwall$397, 00064

Affordable Cities Seeing Home Price Increases

The search for more affordable housing has increased the demand in these smaller towns and cities, and so the house prices here are starting to crawl up as well. We are seeing this sort of domino effect in a lot of the smaller towns and cities, and coupled with high prices is a dwindling supply. 

It is hard to predict the future, especially with the unknown of the virus and with the effects of inflation. What we do know is that cities like North Bay and Calgary are posting large year over year gains in prices. Other urban centers like Halifax and Moncton are seeing price appreciation as well. 

With these significant price gains, these areas are still not as expensive as the Metro Vancouver and Greater Toronto areas. With this, we believe that Canadians will continue to look to smaller cities, as their needs are not being met in these metropolitan areas. Cities like Alberta and Ontario will continue to see new families arriving in the search for more space and more affordability. 

What are your thoughts? Are you in the market for a home? Can you afford one where you currently reside? Have you ever thought of building? If your answer to the last question is yes, give us a call and let us discuss your needs and your budget. We can build your home from the ground up, making your dream of owning a home a reality. 

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BevonyCanada’s Most Moved-to Cities 

Vancouver Housing – All You Need to Know

by Bevony on 23 March 2022 Comments Off on Vancouver Housing – All You Need to Know
Photo by Kindel Media from Pexels

Vancouver ranks highly as one of the most livable cities in the world quite often. It has been ranked as the best North American city to live in. With a very scenic location with views of the oceans on one side, while being tucked against the North Shore mountains, it is ideal for those who want milder weather, so they can explore all year round. 

Vancouver House Prices

With a high demand for houses, it is currently a seller’s market. What this means for buyers is waiting longer to close on a home, being bid out of homes, and pushing the dream of owning a home in Vancouver further away.  If we compare home sales prices of 2017 and 2021, we see an increase over each month, and this trend continues to be the norm.

Unless a healthy supply of houses are entered into the market, we can expect these conditions to remain fueled by a high demand. If you must relocate to Vancouver, you can expect to find diverse and vibrant neighborhoods. You will have a lot of nature to enjoy and have almost every cuisine at your fingertips. Jobs are plenty, and you can only expect the best healthcare and education here, so it is a good choice. 

If you choose to make Vancouver your home, you also don’t have to worry about not owning a car, because there are lots of transit options. These include the bus, the sky train and the sea bus. There are also a lot of walkable downtown sites, and others are typically just 30 minutes away by bus or sea bus. This network of public transportation can help to ease some of the expenses that come along with owning a car. 

Best Places to Live in Vancouver 

Vancouver’s most livable communities include: 

  • Fairview 
  • Grandview-Woodland
  • Kitsilano 
  • Mount Pleasant 
  • Riley Park 
  • Shaughnessy 
  • South Cambie 

Where Not to Live in Vancouver

Like almost everything on this earth, Vancouver has its downsides. Stay away from areas east of Main Street. Avoid the Downtown Eastside and East Hastings, and these places are known for homelessness, prostitution, crime and poverty. 

Outside of that, Vancouver is a fairly safe place to both live and visit, and buying a house here is worth it if you are planning on living here for the long term. Vancouver has always been a desirable place to live and will always continue to be. 

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BevonyVancouver Housing – All You Need to Know

Hot Housing Market in Rossland, B.C

by Bevony on 15 March 2022 Comments Off on Hot Housing Market in Rossland, B.C

There has been a lot of growth in property valuations in Rossland. This small town did not escape the woes of the rest of the housing market. Many people who are not Rossland natives come here in the hopes of buying a more affordable home, but find themselves being priced out of the market still. This can be especially discouraging, especially now with a pandemic and most people not having a 20% down payment. 

What the Price Increases Look Like

Prices jumped 33% from July 2020 to July 2021, reveals B.C Assessments. These numbers were shared in January of 2022. Where we saw a 16% increase in Vancouver for the same period. This jump was a surprise for many, even though there was intense inflation in previous years for the housing market. The increase is being attributed to persons who now can work remotely choosing to make a lifestyle change, because they like the idea of living in a ski resort area. 

In the past, one of the saving graces for Rossland was the difficulty to reach the area. But now with remote work, even though local businesses can’t afford to pay the kinds of wages to support the house prices, purchasers are coming from outside the community, pushing up prices even further. Many parents who are longtime residents of the community are worried that their children won’t be able to afford to live here. Residents feel like the area is beginning to feel like a town for the rich. 

With intense demand driving up prices, some homebuyers are spilling into places like Castlegar, which is close by but still cheaper. We can expect to see a domino effect of prices there going up in the near future too. They have seen a year over year growth of 21% compared to the 33% seen in Rossland. 

Rossland could benefit from new developments, but not all the locals like this idea. They think new development will just lead to more city folk moving into their quiet ski town. But there are some locals that welcome the change. 

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BevonyHot Housing Market in Rossland, B.C

Metro Vancouver Prices Continue to Wow

by Bevony on 8 March 2022 Comments Off on Metro Vancouver Prices Continue to Wow

Just two weeks into March, and the local housing market is showing us that it hasn’t gotten wild just yet. A new report published by Dexter Realty indicates March could yield the highest prices we have ever seen in the Metro Vancouver housing market. 

There was a significant increase in listings in February 2022, as well as there was a significant increase in home sales. We can expect March to be a “barn-burner”, the representative from Dexter Realty said. 

When we look back at March of 2021, we also saw a high number of new listings. March 2021 was also the month we saw the highest sales. There was an all time high of 45,000 sales in that month alone. 

Low Housing Supply

We are still seeing low supply of housing, as a matter of fact, some areas have extremely low supply. But we have seen some increases in new listings recently on the metro Vancouver market. Some markets, however, only have one month supply of homes. Markets with just a month of homes for sale include;

  • Port Coquitlam
  • Port Moody 
  • Tsawwassen
  • New Westminster
  • Pitt Meadows
  • Maple Ridge
  • North Vancouver

Without a sudden increase in the available supply, the spring buying season will only continue to see higher prices. With low supply, you will also see multiple offers, which will just drive the prices up even more. The demand is still high, but the supply is just not scratching the surface when it comes to meeting the need.  

Condo, Townhouse, Detached Home Sales

In metro Vancouver, February sales were dominated by condo apartment sales. This is due to the greater supply of these types of properties, with lower prices than the other property types available. Added to that was a high demand from investors. 

Vacancy rates are now back to record lows. Investors are aware of this and aware of the need for rental housing. Governments in all cities have been able to supply this need adequately for a while now. But there is a predicted shortage looming over our heads currently. Added to that, the current benchmark prices are currently 15.9% higher than they were just a year ago. 

The prices for detached homes dropped in February when compared to February of 2021. Factors causing the price drop include buyer resistance due to lack of choice, and benchmark prices at a record high of $2,044,800. 

There are also not enough townhomes available for sale. As of February 2022, only 90 new townhouses were started in the Metro Vancouver area. 

What Are Your Options?

It is a seller’s market, and there is no doubt about it. If you are a potential homeowner, be prepared for high prices and competition from other buyers. If you are looking for a detached home, your other option is to build your own home. Build with us, let us show you how!

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BevonyMetro Vancouver Prices Continue to Wow

Financing for Pre-Sale Homes 

by Bevony on 1 March 2022 Comments Off on Financing for Pre-Sale Homes 

All home loans are definitely not the same. Here’s how you can tell the difference between a good and a bad fit. 

The region is still seeing a strong demand for real estate, and with listings highly priced, many are turning to the new construction market to meet their home ownership needs. Most Condos and Townhomes are sold pre-sale. That means they are sold even before construction starts, or sometimes while construction is ongoing. This is referred to as a presale purchase. 

Your reason for presale doesn’t matter too much. There are some critical elements that can help you enhance your experience when purchasing presale. This is very true, especially when you consider your options for mortgage financing. You won’t find comprehensive financing solutions. So you have to ask all the right questions. The main thing is that you want your mortgage approval to still be valid when the construction is all done. Here are some things to consider when purchasing presale. 

What is the Lender Offering?

You can get one of two options. There is the condition free and final mortgage approval offer, and there is the mortgage pre-approval for purchasing the presale home. There are conditions that come with pre-approval offers, which allow the financing to be reviewed later, so there is the chance that the terms can change. With a final mortgage approval offer, you get peace of mind knowing there will be no changes in the terms of the offer when your construction is finished. 

Validity Length of Mortgage Approval 

The best scenario is to choose a lender that offers a final mortgage that is equal to the length of construction. The best scenario is for the final mortgage to be valid for greater than the length of construction. 

You want to know what happens if there is a delay in construction. Will your lender require you to undergo another requalification, or will they honor the original approval? 

We find that most lenders can only guarantee mortgage rates for up to four months. But there are those that specialize in presale construction financing. These will allow 36 months and beyond, giving you even more peace of mind. 

Review or Requalification 

Not all lenders will offer you unconditional mortgage approval for the long term. They will often ask for updated information, even if they don’t do an actual requalification. They may simply ask for updated income verification or may retrieve an up-to-date credit report. If you can, choose a lender that will not try to requalify you and will keep the initial commitment. 

Additional Benefits

Some lenders offer disability, life and critical illness coverage. If you can get this type of coverage, it is highly recommended, since anything can happen with you and your family as you wait on the completion of your new home. 

If you are considering presale construction, it is important to note that mortgage financing options are different for this market. When selecting your lender, review the above information and make an informed decision. Close on a new home without any unpleasant surprises, by being harmed with the right knowledge from the get go. 

Purchasing a pre sale property can be a great experience, whether you are purchasing for yourself, for a child or as income property. Start off by seeking the advice of a mortgage specialist. 

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BevonyFinancing for Pre-Sale Homes