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, 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.