Great news for homeowners and prospective buyers!
Last Wednesday, the Bank of Canada announced a significant .50% cut to the overnight target rate, dropping it from 4.5% to 3.75%. This move promises to reshape the landscape for variable rate mortgage holders, potential purchasers, and those approaching mortgage renewals in 2025. The overnight target rate aka the policy interest rate, key interest rate, or target rate directly affects prime lending rates across the country. The rate cut brought the large banks prime rate to 5.95% (other than TD who has a 0.15% higher Prime mortgage rate of 6.1%).

What does this mean for you?

Variable Rate Holders
There are two different types of variable mortgages in Canada; variable rate mortgage and adjustable rate mortgage.
If you’re a variable rate mortgage holder you have a fixed payment, even after this cut your payment will stay the same but a larger portion of your payment will go to your principal now.
ie. you just bought a home in September with a 30 year, uninsured mortgage of $500,000 at 5.89% (prime -.56%).
Before this week, your payment of $2962.48 was split: $508 to principal and $2454 to interest.
After the .5% cut your payment stays the same but $717 now goes to your principal and $2246 will go to interest. Effectively this cut alone shortened your amortization from 30 years to 26 years and 5 months. 

Some banks may let you adjust your payment when the BoC makes cuts so that you are paying the minimum payment for your original 30 year amortization. TD is one of those banks but it’s worth asking your bank as well.

If you are on an adjustable rate mortgage, your mortgage payment will decrease with each cut in order to keep your amortization the same. In the above scenario, your payment would lower from $2962.48 (with $508 going to your principal) to $2804.53 (with $559 now going to your principal).

Fixed Rate Holders
Your payment will not change for the length of your term unless you; break your term or are offered an early renewal by your Bank. It may be worth it to break your term but that’s a conversation for you and your broker to crunch the numbers between interest payment difference over the term and the penalty charged.

Potential Purchasers
Going fixed: Bank of Canada’s cuts do not directly affect fixed rates and the market rates you see today have already priced in many of the forecasted cuts. Fixed rates are tied to the Government of Canada bond yields and have actually seen an increase since their most recent lows in mid-September.
If you are set on fixed rates, make sure to get a rate hold and work with a broker or mortgage specialist that you trust will be updating your rate hold as the market moves.

Going Variable: Your buying power just jumped significantly by increasing mortgage amount 4.5-5% and with more cuts in the forecast, your buying power will continue to rise. This is obviously positive but remember that you are not unique, as your buying power increases, so does everyone else’s. As does their motivation to return to the market.

Should I Buy Now or Wait?

Since every borrower is different, this decision needs to be based on your personal situation BUT if you are ready now (can qualify at today’s rates, down payment is liquid, ready to move) do not simply wait for more cuts or Spring like everyone else… Currently many markets are seeing 10 year highs in inventory meaning more motivated sellers, less competition and more options for buyers. Not to mention that most buyers tend to take the end of the year off. Get in touch with your Realtor and your bank/broker- Active buyers are often rewarded in November/December. 

If you are planning on going with a fixed rate; talk to your broker about the forecasted fixed rates next year and do the math. Discuss with your Realtor whether that difference will be worth waiting to shop in a Spring/Summer 2025’s Seller’s market vs. the end of 2024’s Buyer’s market. Some buyers or folks renewing have even decided to go with variable to start and lock into a fixed rate next year (make sure you are aware of your chosen lender’s policies regarding this strategy)..

If you are planning on going variable; discuss variable rate vs adjustable rate mortgage options with your broker.  If you can afford today’s payments, you will be riding the rates down and paying off your mortgage quicker with each rate cut. If you would rather have the smaller payments and can find an adjustable rate mortgage (or work with a bank that will adjust it manually) then buying now puts you in the same position as those buying in 2025 rates wise, except you have the benefit of buying in a completely different market!

If making a move is in your future, let’s sit down now and create a strategy now.

Click here and book with me directly
Email: kadelacasse@gmail.com
Call/text: 604-401-9199

 I believe we are on the cusp of a tipping point in the Vancouver Real Estate Market. 

We have people stacking up high on the sidelines of the market; Some of them for good reason and others under false assumptions or bad advice. 

• Buyers who couldn’t qualify for the last two years

• Buyers who don’t want a mortgage payment of $4500/month for a 2 bedroom apartment

• Down-sizers who don’t want to sell in a down market

• Sellers that don’t want to break their fixed rates below 2%

• Investors/potential landlords that wouldn’t come close to covering their costs by renting 

They all have their reason and their personal rate thresholds that should move them but thanks to herd mentality, the tipping point will not just be a mortgage calculator. Instead, it will be a combination of personal budget, professional advice AND consumer optimism in the market. Including whether their neighbour, uncle, news anchor, tik Tok realtor (hiiii) is telling them DON’T MISS OUT, THIS IS THE TIME (see FOMO SPRING March 2022). 

I don’t know when we’ll hit our tipping point in Vancouver but it could be as soon as tomorrow ( Oct 23rd )when many, including myself, believe the Bank of Canada will cut the overnight rate by 0.50%
Although it’s called a super-sized cut, 50 basis points does not make a significant difference for the average buyer; 
it’s about $160/month less on a $500,000 mortgage for the monthly budget aware 
OR about 5% increase in buying power for those hindered by the stress test.

BUT as I’ve mentioned in other videos, cuts and increases by the Bank of Canada are about more than 1s and 0s, they are signals to the market and a larger cut of .50% is a signal to the market that the Bank of Canada is serious about getting back to neutral, are not afraid to do that aggressively rather than .25% at a time. That’s why many are calling it an ‘emergency cut’ or a ‘super size cut’.

So, you ask: How do I capitalize on this moment in the market? With the markets pricing in 0.75% in total cuts before the end of 2024, buyers that get active and buy now will have the advantage of high inventory, less competition and motivated sellers PLUS lower rates by the time they close.

So if you are still on the sideline, my question to you is;
What is your tipping point and are you sure it’s well informed?

If making a move is in your future, let’s sit down now and create a strategy.

Click here and book with me directly
Email: kadelacasse@gmail.com
Call/text: 604-401-9199

As a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation, future goals and of course the market.

Because I do not yet know your motivation to sell, let’s talk first about the market based on the Summer 2024 numbers. While we are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will sell; it is not an objectively ideal time to list. 

What makes me say that? Well to decide whether the market is ripe for listing we have to consider supply and demand. Supply in Real Estate is listings and Mount Pleasant is currently 22% over the 10year average of Totally Inventory for this time of year. Demand of course is the buyers looking to purchase those listings and despite the additional inventory, June sales in Mount Pleasant were 7% below the 10 year average. 

So, objectively speaking, listing right now means less eyes on your property. Not to mention that summer has finally hit in Vancouver; kids are out of school and weekends are filling up and buyers tend to have less urgency in their home search this time of year.

It isn’t the best time to sell for everyone but it might be the best time for YOU.

If you are looking to sell a property without buying another one (neither upsizing or downsizing) and you are in the position to hold the property; I still believe there will be a better market to list as the BoC continues to make rate cuts. Prepare but hold.

Upsizing? Well that is a different story. If you’re selling to upsize and buy a larger (thus, more expensive) home, then we need to consider your experience on the buy side as well when discussing your sale strategy. Less competition on the buy side will always save you stress but when upsizing in a slow market; it will save you stress and MONEY. If the product and market you are buying in (ie. townhouse in Mount Pleasant) is performing the same or slower than the one you are selling in (ie. condo on Cambie) then not getting as high of an offer as you would have on your listing will be more than made up for by avoiding less competition in your purchase. Ultimately net positive.

If you are downsizing and both markets are performing the same, the opposite will be true. You’ll take a larger hit selling the higher-priced home in a slow market. Currently detached home sales are stale. In Mount Pleasant no single family home sales were recorded in June. Sure, the 10 yr avg for June is only 5.1 but this is the only shutout for that product in June of any year in the last decade. Zooming out a bit more and single family home sales in East Vancouver were 45% lower than the 10 year average.
One strategy for those single family homeowners that would like to make a move to a condo or townhouse this summer; Since most downsizers have substantial equity built up in their home, depending on the structure of their financing and tolerance to risk, they could buy first and prepare their home for a sale when the market starts to shift. Detached sales are down but so are new listings and total inventory so when the demand returns, your vacant and staged home will be ready to market and sell!

Like I said, a selling strategy should be based on many factors, only one of which is the current market and how to capitalize within it. Your personal situation and goals need to be heavily considered in order to decide if Summer 2024 is the right time to sell.

If selling is in your future, let’s sit down now and create a selling strategy.

Click here and book with me directly

Email: kadelacasse@gmail.com
Call/text: 604-401-9199

And What Landlords, Buyers, and Tenants Should Know

The Residential Tenancy Act in BC has recently undergone some significant changes impacting landlords, buyers, and tenants. This is not an exhaustive breakdown of the changes but these are the key changes that could affect the everyday real estate transaction.

Notice Periods
The most significant change is the extended notice period for tenants. Landlords are now required to give a four-month notice to vacate for personal or caretaker use, up from the previous two months. This change came into effect on July 18th, 2024.

It's important to note that notice is still effective on the final day of your rental period (the day before rent is due). So, if you are in a month-to-month lease paying rent at the beginning of the month and receive notice on September 10th, you won't be required to vacate until January 31st, 2025.

However, it seems the Government of BC acted recklessly by announcing these changes without properly consulting the industries impacted. Initially, the four-month notice period also applied to landlords serving notice on behalf of new buyers intending to move into the home and requesting vacant possession. The issue with including primary residence purchases is that rate holds—when a buyer’s lender pre-approves them at a certain interest rate—are typically valid for only 90-120 days, with rare exceptions. For example, if a buyer was just pre-approved at the end of August, their rate hold would expire by the end of December, leaving them vulnerable to rate shifts that could affect their mortgage qualification. Unfortunately, major banks, being national entities, are unlikely to adjust their policies based on one province’s legislative changes so they would not provide any workarounds. While I understand their intention to enhance tenant protections, the originally introduced extended notice period would disproportionately penalize first-time buyers, who have no options to bridge their mortgage from an existing property. 

The solution? After lobbying from mortgage brokers and the real estate industry, the BC Government announced an amendment reducing the notice period for landlords instructed to provide notice for a purchaser when they or their close family member will live in the property, from four months to three months. This amendment was effective August 21st.

So, if you are in a month-to-month lease and your landlord, after a buyer has removed subjects and instructed them to provide notice to vacate, serves that notice on September 2nd, you would be required to vacate by December 31st, 2025.

Fixed-term tenancies can be served notice to vacate, but the three-month notice still applies, and the effective date to vacate cannot be before the end of their fixed term.

Web Portal: A New Tool for Transparency
Landlords are now required to use the Landlord Use Web Portal to generate the Notice to End Tenancy. This creates a tool for regulators to register and track evictions, increasing transparency in the process. Additionally, notices generated due to a new buyer requesting vacant possession will now require a copy of the Contract of Purchase and Sale to be included.

Initial Length of Use
They have increased the length of time a landlord must use a rental unit for personal or caretaker use following the eviction of a former tenant. This period is up from 6 months to 12 months. If a landlord fails to demonstrate personal use or caretaker use for 12 months, they may be liable to pay an evicted tenant 12 months’ rent as compensation.

Dispute Period
The deadline for a tenant to dispute has also increased to;
-21 days when receiving 3 months notice
-30 days when receiving 4 months notice.

The clock starts as soon as the notice is deemed received. (more info about serving notice here)

Landlords: Navigating the New Landscape
Even with the latest amendment reducing notice to three months, selling a unit with a tenant has gotten stickier. Currently, inventory is above seasonal averages, and most investors are on the sidelines due to high interest rates which means the active buyers are looking for vacant possession not taking over tenants.

Landlords should be aware of the challenges they may face when selling a tenanted property, including:
-smaller buyer pool due to expiring rate holds, risks assuming tenancy
-long completion
-not staged well
-inflexible showing times

In a busier market, your property will still move, but what are you leaving on the table?
In slower markets, your property sitting on the market will only lead buyers to look for more of a deal.

Buyers: Understanding the Risks
Don't shy away from a property just because it is tenanted, but make sure you understand the risk of buying a tenanted property. If you're getting good value, need a long completion, or have found a unique property then I understand but otherwise, why deal with the additional stress of a tenanted property?

Tenants: Leverage the New Rules
Yes, your notice period has extended, which is valuable to help you find a home in a typically terrible rental market. But the blessing in this amendment is your increase in leverage. Once you know of your landlord’s intention to sell; using the knowledge that a vacant home will sell easier, you may be able to get more than the Tenancy Act entitles you to...
How you ask?

Cash for Keys, baby! A Potential Win-Win Solution
The term "Cash for Keys" refers to an agreement where a tenant agrees to vacate a property on a specific date in exchange for a payment from the landlord. This arrangement can be beneficial for both parties:

Sellers/Landlords  have a vacant property that they can stage and market which will no longer deter buyers who are averse to the completion length.

Tenants could leave on their own terms with more money in their pocket to help ease the cost of moving and off-set your potential increase in rent.

Final Thoughts
These changes to the Residential Tenancy Act have shifted the landscape for landlords, buyers, and tenants in BC. It's important to be informed about these changes and understand how they may impact your real estate decisions and the best way to make sure you stay informed is to work with a professional that is on top of the latest regulations and helps you make informed decisions.

https://calendly.com/kadelacasse_realtor/

Again, this is not an exhaustive breakdown; you can find much more information regarding Bill 14 by typing "bill 14 residential tenancy act" into your favourite search engine.

As a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation and future goals instead of following the FOMO of the market.

We are in what has been coined a ‘luke warm Spring Market’. We are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will get offers. The median Days on Market in March was low at only 10 days. So, in general it is a good time to list but less talk more specifically...

Looking to sell your property without buying right away?  While timing the market is always risky as we can’t say what’s around the corner... I still believe there will be a better market to list when the BoC finally makes their first rate cute of 2024. Prepare but hold.

But if, like most sellers, you’re selling your primary residence to upsize and buy another home, then we need to consider your experience on the buy side as well when discussing your sale strategy.

Less competition on the buy side, especially when upsizing, will save you stress and money. Not getting as high of an offer as you would have on your listing will be made up for by avoiding less competition in your purchase. Ultimately net positive.

Either way, if you are going to sell this Spring, be very cautious of the low list price strategy to drive multiple offers. We are seeing that tactic fail often right now. It may work for some but it is not the 2021/22 Spring Housing Market.

If selling is in your future, let’s sit down now and create a selling strategy.

Email: kadelacasse@gmail.com
Call/text: 604-401-9199
Or Click here and book with me directly

Announced the morning of Oct 16, 2023;
The latest housing legislation introduced by the province is aimed specifically at short term housing within the province as municipalities across the BC deal with long term rental shortages causing record increases in monthly rent. 

The Gov't of BC plans to phase-in the legislation over 2 years. You can find the full details at the link below but here are my highlights;

1. Primary Residents Only: The legislation appears to restrict short-term rentals to primary residents, meaning those who live in the property as their main residence. Secondary suites on the same property may be allowed for short-term rentals.

2. Fines and Data Sharing: The legislation includes provisions to increase fines for operators of short-term rentals. It also requires platforms such as Airbnb and VRBO to share data with local and provincial government authorities, which can help in monitoring and enforcement.

3. Host and Platform Registry: The province plans to establish a provincial host and platform registry by late 2024, which is aimed at enhancing accountability in the short-term rental market.

4. Compliance and Enforcement Unit: A provincial short-term rental compliance and enforcement unit is to be set up. This unit will be responsible for ensuring that the rules and regulations are followed by short-term rental operators.

Enforcement is a significant concern, as many cities, including Vancouver, already have bylaws that are stricter than the ones introduced in this Act. Vancouver, for instance, requires short-term rental operators to be primary residents, have a business license, and restricts the rental of secondary suites unless they are the primary residence. However, enforcement has been a challenge in these municipalities and they have been asking the province for assitance.

The BC Hotel Association's report, authored by McGill University Professor Dr. David Wachsmuth, released in September 2023 highlights that a significant portion of short-term rental revenue comes from commercial operators who do not live in the properties they rent out. If the province can effectively enforce the new regulations and penalize violators, homes could return to the long-term rental market, alleviating a bit of the pressure related to long-term rental shortages and rising monthly rents in major municipalities. 

To stay informed on the latest, make sure to sign up for my newsletter.

Kade

To learn more about new short-term rental rules in B.C., visit: https://gov.bc.ca/ShortTermRentals

Full "The housing impacts of short-term rentals in British Columbia’s regions" report found here:
https://upgo.lab.mcgill.ca/publication/strs-housing-bc-2023-summer/Wachsmuth_BC_2023_08_10.pdf

Hyperlocal.

If you stick to the headlines, you’ll be trying to make a move when everyone else is. And competition is not desirable as a buyer or a seller. There are markets within markets within markets so keep a close eye on your area (or partner with someone who will) so you can evaluate the right market for YOU to make a move and ignore the click bait headlines telling you the broad strokes.

If you own a condo in Mt Pleasant or want to own a condo in Mt Pleasant; these are the numbers you need to be watching.

The Mount Pleasant condo market is proving to be resilient once again, making a small month to month jump (0.53% up) to a new record high benchmark price of $763,000, having surpassed the previous May 2022 peak in June of the year and continuing upwards. Although the trajectory is slowing and I expect it to stabilize rather than keep climbing.

This price stability despite high borrowing costs is (and will continue to be) fuelled by a lack of inventory. The August 2023 condo inventory in Mount Pleasant was 25% lower than the 10 year average. 

The median Days on Market jumped from 8 in July to 13 in August and were the highest since last October. This tells me less homes sold in their first week and sellers had to be more patient for summer buyers to make their move.

The sales to active ratio for August was 38%, still well in the seller's market range (defined by a market with an over 20% sales to active ratio).

If you are looking to sell; there is plenty of demand for well marketed, well priced, Mt Pleasant condos especially as fall brings buyers back to their routines and goals.

Reach out and let’s start strategizing how to present your home in it’s best light!

Kade

I love helping turn Mt Pleasant renters into Mt Pleasant homeowners✨

 These buyers filled their home buying bingo card in a very short amount of time including three inspections, having to walk away from an accepted offer and competing against 8 other offers.

This meant they had narrowed down their livable compromises and the deal breakers through tough decisions including just how important staying in Mount Pleasant was.

They were seasoned buyers after less than 2 months of shopping. So, when this place popped up, they were in the next day to view and sent an offer that evening that was strong enough to deter the seller from waiting for their open house.

They secured a beautiful 6 year old home in a small strata in Vancouver's best neighbourhood.
No shared walls, so much storage and an attached garage.

Well done R & A 

If you’re buying a condo or thinking of listing, you should be watching the stats on a local level. 

Nothing new here, Mount Pleasant condos are a hot commodity. And with the skytrain extension, new St Pauls Hospital and office development booming in the area, I can’t see demand slowing anytime soon.

It may seem counter productive but with the possibility of more interest rate increases on the horizon; a prudent buyer will stay active or get active in this market. Why? One or two more hikes will not have the same affect on the market as the 8 straight increases between March 2022 and January 2023 BUT another increase in July combined with the typical summer lull from folks travelling may just open up a window for opportunity. At the very least, you could see less competition.

How about some good news for the small budget buyer? There are pockets of older buildings that can still bring great value per sqft if you can sacrifice luxuries like in-suite laundry for location. Of course it all depends on your personal priorities.

First time buyers; Unfortunately this neighbourhood is not going to get more affordable so starting where you can instead of waiting for the dream place is the way in. 

Kade

Great news for homeowners and prospective buyers!
Last Wednesday, the Bank of Canada announced a significant .50% cut to the overnight target rate, dropping it from 4.5% to 3.75%. This move promises to reshape the landscape for variable rate mortgage holders, potential purchasers, and those approaching mortgage renewals in 2025. The overnight target rate aka the policy interest rate, key interest rate, or target rate directly affects prime lending rates across the country. The rate cut brought the large banks prime rate to 5.95% (other than TD who has a 0.15% higher Prime mortgage rate of 6.1%).

What does this mean for you?

Variable Rate Holders
There are two different types of variable mortgages in Canada; variable rate mortgage and adjustable rate mortgage.
If you’re a variable rate mortgage holder you have a fixed payment, even after this cut your payment will stay the same but a larger portion of your payment will go to your principal now.
ie. you just bought a home in September with a 30 year, uninsured mortgage of $500,000 at 5.89% (prime -.56%).
Before this week, your payment of $2962.48 was split: $508 to principal and $2454 to interest.
After the .5% cut your payment stays the same but $717 now goes to your principal and $2246 will go to interest. Effectively this cut alone shortened your amortization from 30 years to 26 years and 5 months. 

Some banks may let you adjust your payment when the BoC makes cuts so that you are paying the minimum payment for your original 30 year amortization. TD is one of those banks but it’s worth asking your bank as well.

If you are on an adjustable rate mortgage, your mortgage payment will decrease with each cut in order to keep your amortization the same. In the above scenario, your payment would lower from $2962.48 (with $508 going to your principal) to $2804.53 (with $559 now going to your principal).

Fixed Rate Holders
Your payment will not change for the length of your term unless you; break your term or are offered an early renewal by your Bank. It may be worth it to break your term but that’s a conversation for you and your broker to crunch the numbers between interest payment difference over the term and the penalty charged.

Potential Purchasers
Going fixed: Bank of Canada’s cuts do not directly affect fixed rates and the market rates you see today have already priced in many of the forecasted cuts. Fixed rates are tied to the Government of Canada bond yields and have actually seen an increase since their most recent lows in mid-September.
If you are set on fixed rates, make sure to get a rate hold and work with a broker or mortgage specialist that you trust will be updating your rate hold as the market moves.

Going Variable: Your buying power just jumped significantly by increasing mortgage amount 4.5-5% and with more cuts in the forecast, your buying power will continue to rise. This is obviously positive but remember that you are not unique, as your buying power increases, so does everyone else’s. As does their motivation to return to the market.

Should I Buy Now or Wait?

Since every borrower is different, this decision needs to be based on your personal situation BUT if you are ready now (can qualify at today’s rates, down payment is liquid, ready to move) do not simply wait for more cuts or Spring like everyone else… Currently many markets are seeing 10 year highs in inventory meaning more motivated sellers, less competition and more options for buyers. Not to mention that most buyers tend to take the end of the year off. Get in touch with your Realtor and your bank/broker- Active buyers are often rewarded in November/December. 

If you are planning on going with a fixed rate; talk to your broker about the forecasted fixed rates next year and do the math. Discuss with your Realtor whether that difference will be worth waiting to shop in a Spring/Summer 2025’s Seller’s market vs. the end of 2024’s Buyer’s market. Some buyers or folks renewing have even decided to go with variable to start and lock into a fixed rate next year (make sure you are aware of your chosen lender’s policies regarding this strategy)..

If you are planning on going variable; discuss variable rate vs adjustable rate mortgage options with your broker.  If you can afford today’s payments, you will be riding the rates down and paying off your mortgage quicker with each rate cut. If you would rather have the smaller payments and can find an adjustable rate mortgage (or work with a bank that will adjust it manually) then buying now puts you in the same position as those buying in 2025 rates wise, except you have the benefit of buying in a completely different market!

If making a move is in your future, let’s sit down now and create a strategy now.

Click here and book with me directly
Email: kadelacasse@gmail.com
Call/text: 604-401-9199

 I believe we are on the cusp of a tipping point in the Vancouver Real Estate Market. 

We have people stacking up high on the sidelines of the market; Some of them for good reason and others under false assumptions or bad advice. 

• Buyers who couldn’t qualify for the last two years

• Buyers who don’t want a mortgage payment of $4500/month for a 2 bedroom apartment

• Down-sizers who don’t want to sell in a down market

• Sellers that don’t want to break their fixed rates below 2%

• Investors/potential landlords that wouldn’t come close to covering their costs by renting 

They all have their reason and their personal rate thresholds that should move them but thanks to herd mentality, the tipping point will not just be a mortgage calculator. Instead, it will be a combination of personal budget, professional advice AND consumer optimism in the market. Including whether their neighbour, uncle, news anchor, tik Tok realtor (hiiii) is telling them DON’T MISS OUT, THIS IS THE TIME (see FOMO SPRING March 2022). 

I don’t know when we’ll hit our tipping point in Vancouver but it could be as soon as tomorrow ( Oct 23rd )when many, including myself, believe the Bank of Canada will cut the overnight rate by 0.50%
Although it’s called a super-sized cut, 50 basis points does not make a significant difference for the average buyer; 
it’s about $160/month less on a $500,000 mortgage for the monthly budget aware 
OR about 5% increase in buying power for those hindered by the stress test.

BUT as I’ve mentioned in other videos, cuts and increases by the Bank of Canada are about more than 1s and 0s, they are signals to the market and a larger cut of .50% is a signal to the market that the Bank of Canada is serious about getting back to neutral, are not afraid to do that aggressively rather than .25% at a time. That’s why many are calling it an ‘emergency cut’ or a ‘super size cut’.

So, you ask: How do I capitalize on this moment in the market? With the markets pricing in 0.75% in total cuts before the end of 2024, buyers that get active and buy now will have the advantage of high inventory, less competition and motivated sellers PLUS lower rates by the time they close.

So if you are still on the sideline, my question to you is;
What is your tipping point and are you sure it’s well informed?

If making a move is in your future, let’s sit down now and create a strategy.

Click here and book with me directly
Email: kadelacasse@gmail.com
Call/text: 604-401-9199

As a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation, future goals and of course the market.

Because I do not yet know your motivation to sell, let’s talk first about the market based on the Summer 2024 numbers. While we are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will sell; it is not an objectively ideal time to list. 

What makes me say that? Well to decide whether the market is ripe for listing we have to consider supply and demand. Supply in Real Estate is listings and Mount Pleasant is currently 22% over the 10year average of Totally Inventory for this time of year. Demand of course is the buyers looking to purchase those listings and despite the additional inventory, June sales in Mount Pleasant were 7% below the 10 year average. 

So, objectively speaking, listing right now means less eyes on your property. Not to mention that summer has finally hit in Vancouver; kids are out of school and weekends are filling up and buyers tend to have less urgency in their home search this time of year.

It isn’t the best time to sell for everyone but it might be the best time for YOU.

If you are looking to sell a property without buying another one (neither upsizing or downsizing) and you are in the position to hold the property; I still believe there will be a better market to list as the BoC continues to make rate cuts. Prepare but hold.

Upsizing? Well that is a different story. If you’re selling to upsize and buy a larger (thus, more expensive) home, then we need to consider your experience on the buy side as well when discussing your sale strategy. Less competition on the buy side will always save you stress but when upsizing in a slow market; it will save you stress and MONEY. If the product and market you are buying in (ie. townhouse in Mount Pleasant) is performing the same or slower than the one you are selling in (ie. condo on Cambie) then not getting as high of an offer as you would have on your listing will be more than made up for by avoiding less competition in your purchase. Ultimately net positive.

If you are downsizing and both markets are performing the same, the opposite will be true. You’ll take a larger hit selling the higher-priced home in a slow market. Currently detached home sales are stale. In Mount Pleasant no single family home sales were recorded in June. Sure, the 10 yr avg for June is only 5.1 but this is the only shutout for that product in June of any year in the last decade. Zooming out a bit more and single family home sales in East Vancouver were 45% lower than the 10 year average.
One strategy for those single family homeowners that would like to make a move to a condo or townhouse this summer; Since most downsizers have substantial equity built up in their home, depending on the structure of their financing and tolerance to risk, they could buy first and prepare their home for a sale when the market starts to shift. Detached sales are down but so are new listings and total inventory so when the demand returns, your vacant and staged home will be ready to market and sell!

Like I said, a selling strategy should be based on many factors, only one of which is the current market and how to capitalize within it. Your personal situation and goals need to be heavily considered in order to decide if Summer 2024 is the right time to sell.

If selling is in your future, let’s sit down now and create a selling strategy.

Click here and book with me directly

Email: kadelacasse@gmail.com
Call/text: 604-401-9199

And What Landlords, Buyers, and Tenants Should Know

The Residential Tenancy Act in BC has recently undergone some significant changes impacting landlords, buyers, and tenants. This is not an exhaustive breakdown of the changes but these are the key changes that could affect the everyday real estate transaction.

Notice Periods
The most significant change is the extended notice period for tenants. Landlords are now required to give a four-month notice to vacate for personal or caretaker use, up from the previous two months. This change came into effect on July 18th, 2024.

It's important to note that notice is still effective on the final day of your rental period (the day before rent is due). So, if you are in a month-to-month lease paying rent at the beginning of the month and receive notice on September 10th, you won't be required to vacate until January 31st, 2025.

However, it seems the Government of BC acted recklessly by announcing these changes without properly consulting the industries impacted. Initially, the four-month notice period also applied to landlords serving notice on behalf of new buyers intending to move into the home and requesting vacant possession. The issue with including primary residence purchases is that rate holds—when a buyer’s lender pre-approves them at a certain interest rate—are typically valid for only 90-120 days, with rare exceptions. For example, if a buyer was just pre-approved at the end of August, their rate hold would expire by the end of December, leaving them vulnerable to rate shifts that could affect their mortgage qualification. Unfortunately, major banks, being national entities, are unlikely to adjust their policies based on one province’s legislative changes so they would not provide any workarounds. While I understand their intention to enhance tenant protections, the originally introduced extended notice period would disproportionately penalize first-time buyers, who have no options to bridge their mortgage from an existing property. 

The solution? After lobbying from mortgage brokers and the real estate industry, the BC Government announced an amendment reducing the notice period for landlords instructed to provide notice for a purchaser when they or their close family member will live in the property, from four months to three months. This amendment was effective August 21st.

So, if you are in a month-to-month lease and your landlord, after a buyer has removed subjects and instructed them to provide notice to vacate, serves that notice on September 2nd, you would be required to vacate by December 31st, 2025.

Fixed-term tenancies can be served notice to vacate, but the three-month notice still applies, and the effective date to vacate cannot be before the end of their fixed term.

Web Portal: A New Tool for Transparency
Landlords are now required to use the Landlord Use Web Portal to generate the Notice to End Tenancy. This creates a tool for regulators to register and track evictions, increasing transparency in the process. Additionally, notices generated due to a new buyer requesting vacant possession will now require a copy of the Contract of Purchase and Sale to be included.

Initial Length of Use
They have increased the length of time a landlord must use a rental unit for personal or caretaker use following the eviction of a former tenant. This period is up from 6 months to 12 months. If a landlord fails to demonstrate personal use or caretaker use for 12 months, they may be liable to pay an evicted tenant 12 months’ rent as compensation.

Dispute Period
The deadline for a tenant to dispute has also increased to;
-21 days when receiving 3 months notice
-30 days when receiving 4 months notice.

The clock starts as soon as the notice is deemed received. (more info about serving notice here)

Landlords: Navigating the New Landscape
Even with the latest amendment reducing notice to three months, selling a unit with a tenant has gotten stickier. Currently, inventory is above seasonal averages, and most investors are on the sidelines due to high interest rates which means the active buyers are looking for vacant possession not taking over tenants.

Landlords should be aware of the challenges they may face when selling a tenanted property, including:
-smaller buyer pool due to expiring rate holds, risks assuming tenancy
-long completion
-not staged well
-inflexible showing times

In a busier market, your property will still move, but what are you leaving on the table?
In slower markets, your property sitting on the market will only lead buyers to look for more of a deal.

Buyers: Understanding the Risks
Don't shy away from a property just because it is tenanted, but make sure you understand the risk of buying a tenanted property. If you're getting good value, need a long completion, or have found a unique property then I understand but otherwise, why deal with the additional stress of a tenanted property?

Tenants: Leverage the New Rules
Yes, your notice period has extended, which is valuable to help you find a home in a typically terrible rental market. But the blessing in this amendment is your increase in leverage. Once you know of your landlord’s intention to sell; using the knowledge that a vacant home will sell easier, you may be able to get more than the Tenancy Act entitles you to...
How you ask?

Cash for Keys, baby! A Potential Win-Win Solution
The term "Cash for Keys" refers to an agreement where a tenant agrees to vacate a property on a specific date in exchange for a payment from the landlord. This arrangement can be beneficial for both parties:

Sellers/Landlords  have a vacant property that they can stage and market which will no longer deter buyers who are averse to the completion length.

Tenants could leave on their own terms with more money in their pocket to help ease the cost of moving and off-set your potential increase in rent.

Final Thoughts
These changes to the Residential Tenancy Act have shifted the landscape for landlords, buyers, and tenants in BC. It's important to be informed about these changes and understand how they may impact your real estate decisions and the best way to make sure you stay informed is to work with a professional that is on top of the latest regulations and helps you make informed decisions.

https://calendly.com/kadelacasse_realtor/

Again, this is not an exhaustive breakdown; you can find much more information regarding Bill 14 by typing "bill 14 residential tenancy act" into your favourite search engine.

As a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation and future goals instead of following the FOMO of the market.

We are in what has been coined a ‘luke warm Spring Market’. We are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will get offers. The median Days on Market in March was low at only 10 days. So, in general it is a good time to list but less talk more specifically...

Looking to sell your property without buying right away?  While timing the market is always risky as we can’t say what’s around the corner... I still believe there will be a better market to list when the BoC finally makes their first rate cute of 2024. Prepare but hold.

But if, like most sellers, you’re selling your primary residence to upsize and buy another home, then we need to consider your experience on the buy side as well when discussing your sale strategy.

Less competition on the buy side, especially when upsizing, will save you stress and money. Not getting as high of an offer as you would have on your listing will be made up for by avoiding less competition in your purchase. Ultimately net positive.

Either way, if you are going to sell this Spring, be very cautious of the low list price strategy to drive multiple offers. We are seeing that tactic fail often right now. It may work for some but it is not the 2021/22 Spring Housing Market.

If selling is in your future, let’s sit down now and create a selling strategy.

Email: kadelacasse@gmail.com
Call/text: 604-401-9199
Or Click here and book with me directly

Announced the morning of Oct 16, 2023;
The latest housing legislation introduced by the province is aimed specifically at short term housing within the province as municipalities across the BC deal with long term rental shortages causing record increases in monthly rent. 

The Gov't of BC plans to phase-in the legislation over 2 years. You can find the full details at the link below but here are my highlights;

1. Primary Residents Only: The legislation appears to restrict short-term rentals to primary residents, meaning those who live in the property as their main residence. Secondary suites on the same property may be allowed for short-term rentals.

2. Fines and Data Sharing: The legislation includes provisions to increase fines for operators of short-term rentals. It also requires platforms such as Airbnb and VRBO to share data with local and provincial government authorities, which can help in monitoring and enforcement.

3. Host and Platform Registry: The province plans to establish a provincial host and platform registry by late 2024, which is aimed at enhancing accountability in the short-term rental market.

4. Compliance and Enforcement Unit: A provincial short-term rental compliance and enforcement unit is to be set up. This unit will be responsible for ensuring that the rules and regulations are followed by short-term rental operators.

Enforcement is a significant concern, as many cities, including Vancouver, already have bylaws that are stricter than the ones introduced in this Act. Vancouver, for instance, requires short-term rental operators to be primary residents, have a business license, and restricts the rental of secondary suites unless they are the primary residence. However, enforcement has been a challenge in these municipalities and they have been asking the province for assitance.

The BC Hotel Association's report, authored by McGill University Professor Dr. David Wachsmuth, released in September 2023 highlights that a significant portion of short-term rental revenue comes from commercial operators who do not live in the properties they rent out. If the province can effectively enforce the new regulations and penalize violators, homes could return to the long-term rental market, alleviating a bit of the pressure related to long-term rental shortages and rising monthly rents in major municipalities. 

To stay informed on the latest, make sure to sign up for my newsletter.

Kade

To learn more about new short-term rental rules in B.C., visit: https://gov.bc.ca/ShortTermRentals

Full "The housing impacts of short-term rentals in British Columbia’s regions" report found here:
https://upgo.lab.mcgill.ca/publication/strs-housing-bc-2023-summer/Wachsmuth_BC_2023_08_10.pdf

Hyperlocal.

If you stick to the headlines, you’ll be trying to make a move when everyone else is. And competition is not desirable as a buyer or a seller. There are markets within markets within markets so keep a close eye on your area (or partner with someone who will) so you can evaluate the right market for YOU to make a move and ignore the click bait headlines telling you the broad strokes.

If you own a condo in Mt Pleasant or want to own a condo in Mt Pleasant; these are the numbers you need to be watching.

The Mount Pleasant condo market is proving to be resilient once again, making a small month to month jump (0.53% up) to a new record high benchmark price of $763,000, having surpassed the previous May 2022 peak in June of the year and continuing upwards. Although the trajectory is slowing and I expect it to stabilize rather than keep climbing.

This price stability despite high borrowing costs is (and will continue to be) fuelled by a lack of inventory. The August 2023 condo inventory in Mount Pleasant was 25% lower than the 10 year average. 

The median Days on Market jumped from 8 in July to 13 in August and were the highest since last October. This tells me less homes sold in their first week and sellers had to be more patient for summer buyers to make their move.

The sales to active ratio for August was 38%, still well in the seller's market range (defined by a market with an over 20% sales to active ratio).

If you are looking to sell; there is plenty of demand for well marketed, well priced, Mt Pleasant condos especially as fall brings buyers back to their routines and goals.

Reach out and let’s start strategizing how to present your home in it’s best light!

Kade

I love helping turn Mt Pleasant renters into Mt Pleasant homeowners✨

 These buyers filled their home buying bingo card in a very short amount of time including three inspections, having to walk away from an accepted offer and competing against 8 other offers.

This meant they had narrowed down their livable compromises and the deal breakers through tough decisions including just how important staying in Mount Pleasant was.

They were seasoned buyers after less than 2 months of shopping. So, when this place popped up, they were in the next day to view and sent an offer that evening that was strong enough to deter the seller from waiting for their open house.

They secured a beautiful 6 year old home in a small strata in Vancouver's best neighbourhood.
No shared walls, so much storage and an attached garage.

Well done R & A 

If you’re buying a condo or thinking of listing, you should be watching the stats on a local level. 

Nothing new here, Mount Pleasant condos are a hot commodity. And with the skytrain extension, new St Pauls Hospital and office development booming in the area, I can’t see demand slowing anytime soon.

It may seem counter productive but with the possibility of more interest rate increases on the horizon; a prudent buyer will stay active or get active in this market. Why? One or two more hikes will not have the same affect on the market as the 8 straight increases between March 2022 and January 2023 BUT another increase in July combined with the typical summer lull from folks travelling may just open up a window for opportunity. At the very least, you could see less competition.

How about some good news for the small budget buyer? There are pockets of older buildings that can still bring great value per sqft if you can sacrifice luxuries like in-suite laundry for location. Of course it all depends on your personal priorities.

First time buyers; Unfortunately this neighbourhood is not going to get more affordable so starting where you can instead of waiting for the dream place is the way in. 

Kade