Purrfect Properties Blog

Archive for September, 2014

Is it Time to Retire to the Island? What’s going on there anyways?

Monday, September 29th, 2014
Vancouver Island Real Estate Market 2014

Vancouver Island Real Estate Market 2014

The Vancouver Island Real Estate Market

I used to live on the Island, Campbell River to be exact. When I had left, it was just at the start of the recession and everywhere I looked you saw ‘For Sale’ signs; be it for boats, cars and houses, even estates. It was so sad to see stability move out, people go back to where they lived before the downturn and it was impossible to look anywhere for economic confidence and financial security. Housing and Yacht prices tanked. Fast forward a few years and we are starting to see some good news.

The Island is built on a small number of industries and one of those industries is Tourism. Before, when you would travel down the road, you couldn’t get a half kilometer without seeing some US Citizens huge RV and ‘SUV’ in tow. It’s just not like that anymore, though it is a bit better.

Tourism is up, single family home sales are up, condo sales are up, rental rates are up and rental vacancy is down. That all points to a rebounding market and increased consumer confidence in the area. It’s no wonder Chinese developers are looking to build a 270 room in Nanaimo where the average single family home sells for $361,0964 and condos sell for $252,273. This is the most active region on the Island for real estate.

Across the Island, the average selling price of single family dwellings has reached $337,664 – up 2% in comparison to the annual 4-6% we see here in Edmonton, as well as being up 11% in total volume. Average condo prices fetch $240,101 on the Island.

The summer of 2014 saw the highest occupancy numbers Nanaimo has experienced in years with rates up 9.2% from last ago. The increase in tourism is attributed to special events and the strengthening US dollar.

Check out Tourism Nanaimo’s award winning campaign “You Won’t be Sorry” to see what is causing all the stir.

With the increase in rental rates, the decrease in vacancy rates, improved employment rates, immigration and rising rental demands – The Island is uniquely positioned to offer cash-flow investment opportunities based on the combination of high rental rates and affordable purchase prices.

Perhaps it’s time for you to get in and get building equity.

Canada Housing Market Confidence

Tuesday, September 16th, 2014

Canadian Housing Market Confidence

RBC recently finished their long running Annual Home Ownership Poll in Canada. Poll and year number 21, to be exact. The news and outlook of entry buyers is encouraging – especially after witnessing how recent financial legistlations have left buyers positioned in our fastest growing economy of Edmonton. Here are some of the interesting points to note:

Young Canadians, aged 25 – 34, feel that housing remains a very good investment. Nearly nine in ten (86 per cent) of them believe that owning a house or condo is a very good investment, up from less than eight in ten (78 per cent) in 2013.

This confidence in the housing market is reflected in Canadians’ buying intentions. Nearly every region in Canada has shown an increase in their likelihood to purchase over the last year. The top factors considered by those who intend to buy this year include the stability of their job situation and manageable debt levels. Confidence in these areas indicates that Canadians are more mindful of their finances than in 2013, which directly impacts the ability to afford home ownership.

In particular, interest in purchasing from the 25-34 age group has increased significantly from one in four (25 per cent) in 2013 to nearly half (41 per cent) of respondents in 2014.

Also notable in the same poll results, is Canadians’ willingness to go it alone when it comes to home buying. Granted, the majority of Canadians (62 per cent) still intend to buy a home with their spouse or partner, but now more than one in four (28 per cent) Canadians intend to buy a home by themselves.

Alberta Highlights: Alberta saw an increase in likelihood of purchasing this year, up from 22 per cent in 2013 to 28 per cent in 2014. Perceived home price increases may also be key for Albertans, as more than half (52 per cent) believe that home prices will continue to rise next year.

British Columbia Highlights – In B.C., the percentage of those who are likely to buy a home has increased slightly, from one-in-five (20 per cent) in 2013 to more than one-in-five (22 per cent) in 2014. With four-in-ten (41 per cent) believing that housing prices will continue to rise next year, it signals that British Columbians want to get in while they feel they can and reinforces the positive investment sentiment.