April 2022

All posts from April 2022

House Framing Basics 

by Bevony on 30 April 2022 Comments Off on House Framing Basics 

What is called “framing” in residential construction is also known as light frame construction. The technique uses vertical components to create a stable frame for both interior and exterior walls. The length of the floor, as well as between walls or beams, you will find horizontal elements called joists. These joists will provide support to the floors and ceilings. 

The method of choice for most construction projects today is platform framing. This is where each story of a building is framed on top of the one before it. The first floor is used as the platform that supports the construction of the next floor. This is advantageous, because it creates a stable surface for construction crews to work on. 

As builders, this gives us the opportunity to make use of dimensioned lumber, which is unlike those used in older methods. Older methods used pieces of wood that were longer and had more natural cuts. 

Platform Framing 

This is the most common type of framing used in modern residential buildings. One story platforms are framed with 8 or 9 foot stud walls that rest along your subfloor. Each additional story of the building will be framed next, before moving to a higher level. It is used for one and two story houses and is now the standard for building in the contemporary home. Why? 

Three Different Reasons:

  1. Shorter pieces of lumber, since longer studs will prove more expensive and will be harder to source.  
  2. There are breaks in the studs from one level to the next, which create natural firebreaks. 
  3. The next floor is always built on a solid surface, and so this ensures that the work environment is safe and structurally sound. 

Framing is one of the typical things you will find on the blueprint of a home these days. If you are in the market for building your own home. We have all the expertise in framing and all related to constructing homes. Give us a call and let us get you home.  

Framing Components 

Here are the common framing components used in every part of a house. 

The Floor 

  • Joists – These framing components run horizontally along the length of the floor. They are the base of the support for the home’s floor and serve as the base that the wall panels will be attached to. They are covered with subflooring, which in most cases is derived from plywood. 
  • Truss – This is made of 2 x 4 or 2 x 3 pieces of lumber, which are connected to metal plates. A truss can take one of a number of configurations. Essentially though, the truss creates a stable web that supports the floor while also resisting bouncing. 
  • Sheathing – this is another name for the subfloor. This panel is fastened to the floor and carries the loads to the floor joists

Framing can seem complex with all its different elements. But, a frame is one of the most important steps when it comes to building a home. It gives your home a sturdy base and frame, and allows room for you to lay all electric, mechanical and plumbing things in place.         

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BevonyHouse Framing Basics 

by Bevony on 21 April 2022 Comments Off on

Bank of Canada’s First Big Hike in Decades

Photo by T. Royce Xan: https://www.pexels.com/photo/silver-canadian-coin-10785960/

Just this month, the Bank of Canada had its first 50-basis point hike in interest rates in the past 22 years. The move was expected by many bank watchers and economists who were anticipating the increase. Now, there is a lot of uncertainty as to what is coming next. 

The move is seen as a very aggressive one. There was also the announcement of a quantitative reduction of the number of government bonds held on the bank’s balance sheet. This will come into effect on the 25th of April. There is acknowledgement of the need to move forcefully to combat the increasing prices, as well as the return rates.

Exact Change is Made by the Bank of Canada 

The hike comes in after inflation in February hit 5.75%, as seen in the consumer price index readings. The bank raised the overnight rate to 1% and increased the GDP growth projections to 4.2% for this year. Inflation expectations were bumped to 5.3 per cent, moving from the 4.2 percent average.  

The revisions are not surprising, especially with the estimates that were released in January. The Bank of Canada is still optimistic for more growth in 2023, but not everyone is as optimistic as they are. Some analysts expect to see further tightening into 2023. However, we don’t think the Bank of Canada will attempt to keep up with the U.S Federal Reserve. 

It is thought that it is housing vulnerabilities that would keep the bank’s hands tied so it can’t take the rate much higher. The opposite is true of the U.S Federal Reserve. They are expected to peak at 3.38%. Housing is of course overvalued currently, and so household debt burdens are higher and more rate sensitive for investment accounts. It is these that have the biggest share of the economy. 

What Does this Mean for Residents?

Persons with housing and mortgage debt may be under a bit of pressure in the coming months. Canadians with HELOCs and variable rate mortgages will feel the impact right away. With each rate hike, homeowners will continue to feel the hit. Look out for lender rates increasing in the coming days, and try to budget for even more rate increases through the rest of the year. The Central Bank updated its estimates for neutral interest rates running from 1.75% – 2.75%. 

BMO responded to the bank’s actions by indicating a raise in interest rates forecast by the 25 basis points for the year. It is now expecting 50 point hikes in June and July. 

The Bottom Line 

We do expect rates to go up for the rest of the year, but we are not sure just how much just yet. This will mean a sort of roller coaster experience for would-be homeowners and current homeowners. Therefore, homeowners who have the chance to switch to a fixed rate now should possibly take advantage of that and make the move to switch now. 

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Vancouver Housing Market Overview – Updated April 5, 2022

by Bevony on 12 April 2022 Comments Off on Vancouver Housing Market Overview – Updated April 5, 2022

The data for March 2022 is out, and across all property types we are still seeing increases in listing prices. Comparing the March 2022 numbers to March 2021 numbers, there has been a 21% increase in listing prices for all property types. To further break this down, we can go into property type. For detached homes, we are seeing a 24% increase in selling price. For Townhomes, we are seeing a 31% increase in selling prices, and for Condos/Apartments there is a 17% increase. With these prices, we have seen decreases in buying compared to the same period in 2021, so overall the data shows a 24% decrease in home buying. Detached home sales have decreased by 34%, Townhomes sales have decreased by 29%, and Condos/Apartment sales have decreased by 14%. 

March 2022 Benchmark Prices in Metro Vancouver 

March 2022 saw home prices in Vancouver breaking an all time high. Vancouver is now seeing its 12th consecutive month of price records. In March of 2022, the benchmark price for a home in Metro Vancouver was $1,360,500. This reflects a 3.6% increase from February’s benchmark price of $1,313,400. March 2022 is also the 16th consecutive month that the benchmark home price has risen over a month to month basis. The last decrease we saw in the benchmark home price for Vancouver was November of 2020. It then dipped ever so slightly to $1,044,400, coming from $1,045,900. 

Metro Vancouver is still the most expensive housing market in Canada, having held this title for more than 30 years. The Benchmark 

March 2022 Benchmark Price Comparisons 

The benchmark price for Vancouver is also higher than the average home price in Toronto, which is $1,299,894. This has seen a slight drop from previous months. Toronto once had the most expensive housing market title for the month of February in 2022. There are slight price increases compared to the previous months. 

Over the past year, we have seen price increases of 25%, inching to $2,118,600 seen in March 2022. The 3.6% increase over the benchmark price in February represents a monthly increase of $73, 800. In the past year, the benchmark price for detached homes in Vancouver has gone up by $418,400. This gain is more expensive than the average home price in Edmonton, which was at $414,788 in March 2022. 

The prices of townhomes have also surged year over year and month over month. Prices are staying above the 1 million mark after passing that level in December 2021. The condo and apartment prices were lagging behind with a 17% increase, which is an increase none-the-less. 

We saw the highest year over year benchmark price growth from homes in Maple Ridge. Their prices went up to $1,275,300, up by 37% year over year and 5.3% month-over-month. 

In West Vancouver, we saw the highest benchmark home price in Metro Vancouver. The price came in at $2,677,500. West Vancouver also saw the lowest annual growth in home prices, with a year-over-year increase of 7.7%. The number of listings has reduced over last year, with a decrease of 16.6%. In March 2022, the 6,673 listings represented a year-over-year decrease of 19.5%. 

This month’s home sales stand at 4,344, reflecting a year-over-year decrease of 24%. With these numbers, Vancouver’s sales-to-active-listings ratio is 56.9%. So this means that the home sales for this month are making up a larger section of active listings. 

Vancouver’s housing market saw one tailwind in the 2021 update. Homebuyers in Toronto, Victoria and Vancouver now can benefit from the 5 or 10% down payment incentive that is paid by the Federal government. Persons with a household income up to $15,000 can benefit from this. 

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BevonyVancouver Housing Market Overview – Updated April 5, 2022

The Best Time To Sell A Home

by Bevony on 7 April 2022 Comments Off on The Best Time To Sell A Home
Photo by Thirdman

We are currently in a seller’s market, so if you are considering selling your house, it could be just the right time to do so. But maybe you are not ready to sell right now, maybe you need some improvements before you list the home. Even so, when should you list your home for sale?

We have seen the housing market in Vancouver constantly in a state of flux. We’ve seen high supply and little demand prompting a drop in price, and more recently we have seen a market with more buyers than sellers, causing bidding to escalate prices. 

When you are selling, you want to list your property at the right time of year. You don’t want your house to sit too long on the market, and you definitely want it to go for a great price. 

The Importance of Timing for Home Sales 

Here are some of the things people consider before buying. This data reflects previous home sales. 

  • Convenience – homeowners tend to be more eager to buy when the weather conditions are pleasant. 
  • Competition – If you don’t have a lot of listing competition, you can list your home at a higher price. 
  • Interest rates – When interest rates are lower, chances are you will have a larger buyer’s pool.  

Timing is definitely everything, and with the housing market, time of year is very important. The housing market sale price can be affected by seasonality as much as 10%. 

The Best Time of Year to Sell

The best time to sell houses is during the early spring or early fall. Selling during spring is very advantageous. People start looking for homes in spring, in the hopes of moving in by or during summer. Then, in the fall, the rush of summer is over and there are fewer competing listings. 

The weather is pleasant in both spring and fall, giving you a prime opportunity to list your home. The temperatures are not too cold nor too hot for moving in and doing initial yardwork. But you can still sell your home in the winter. It likely will take longer to finalize a sale, since people are less likely to move when it’s cold outside. Families with school aged children may find it difficult to move in the middle of the school year. 

Many people believe the summer is the best time to sell, but this is usually a very competitive time. In Vancouver, it is typically in the summer that sellers list their homes.

When you decide when to list your home, what is your next step? Will you be looking for your next home or are you considering building? If your answer to the latter is yes, give us a call. We are in the business of building homes from the ground up specifically to meet your needs.  

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BevonyThe Best Time To Sell A Home