We expect fewer sales in the Powell River real estate market in July and August as the holiday season begins. True to form, sales were down to 44 in July from the May and June highs of 65. However, other stats are showing the market is still strong and promising to bring another burst in the fall market. The median days on the market in July was 37 with 4 of those homes taking under 10 days to sell. Twenty-one of those 44 sales sold at or over list price. The $200-$300,000 market is the hottest with 18/44 sales in that bracket. Prices are still on the rise. There are lots of buyers actively searching for the right home. If you’re thinking of selling, call me to help you get the right price and an effective marketing strategy.
New Industry Rules
As a result of some of the dishonest activities in the very hot Vancouver real estate market a few months ago, the BC Government launched an investigation into the real estate industry in BC. One of the 50 recommendations that came out is that real estate matters will no longer be self-regulated by the Real Estate Council of BC, but will be replaced by the government-appointed Office of the Superintendent of Real Estate Brokers. At the same time, disciplinary penalties for misconduct will be increased to $250,000 for individual Realtors. (It should be noted that the Council had been asking government for years to increase the penalties they were allowed to assess.) Talks are still ongoing, but it seems with an election looming in 2017, that most of the recommendations will stick. There’s a few rotten eggs in every barrel. For the vast majority of us our livelihood is dependent on our reputation for providing honest, reliable service.
Tax Bite for Foreign Investors
Beginning on August 2, home buyers who are not Canadian citizens and who wish to buy in the Vancouver Lower Mainland (from Lions Bay to Maple Ridge and Surrey) will pay an additional 15% of the purchase price in Property Transfer Tax. (In BC, we all pay 1 and 2% on each property purchase) The intent is to slow down the rapidly rising prices by penalizing foreign investors. The extra revenue for government will be used to fund housing, rental and support programs. There is no change to the property transfer tax for other areas of BC. We are currently benefiting from high prices in the city as more people choose to move here to a quieter and less expensive market. It will be interesting to watch and see what the effects of this new tax are.
New Home Sales Booming!
As I mentioned last month, 65 building lots have sold since January 1 and the local builders are going full out to keep up. There are a few new patio homes in the under-$300,000 range and new ranchers selling in the mid-$300,000’s. Here’s what the Peak Newspaper has to report about the ‘boom’:
Cute Rancher with a Shop!
4585 Manson Ave
- 2 Bedr/1 Bath – 801 sq ft
- Beautiful yard, central location
- A great downsize or vacation home