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“ANOTHER ONE”

Another Big Move: Bank of Canada Cuts Rates Again by 50 bps

The Bank of Canada did it again! On December 11th, they announced another significant cut to the overnight target rate, slashing it by 0.50%, bringing the rate down from 3.75% to 3.25%. This marks the second consecutive 50 bps cut following the October decision and reflects a clear shift away from a restrictive monetary policy away. For homeowners, prospective buyers, and anyone navigating the mortgage market, this is another game-changer.

What Does This Mean for You?

Variable Rate Mortgage Holders

For those with variable rate mortgages, you’ll notice some impactful changes:

  • Fixed Payment Variable Mortgages: If your payment is fixed, your payment remains unchanged. However, a greater portion of your payment will now go toward reducing your principal balance instead of paying interest. For example:

    • A $500,000 uninsured mortgage with a 30-year amortization and rate of Variable Prime - 0.56% had a rate of 5.89% before the October cut with a payment of $2962.48. $508 of which went to principal. After October's cut, $717 of that payment would go to principal, and after December's cut $925 is going towards the principal, effectively dropping your amortization from 30yrs to just under 24yrs.

  • Adjustable Rate Mortgages: Your payment will decrease with this rate cut to maintain your original amortization schedule. For the same mortgage, your payment drops to $2,650.60, with $613 now going to the principal. This adjustment provides immediate relief to your monthly budget.

    ** Some banks will allow ‘fixed payment’ variable mortgage holders to adjust their payments. If a lower payment aligns more with your goals than shorter amortization; chat with your mortgage broker or call your bank directly to check your options.

Fixed Rate Mortgage Holders

If you’re locked into a fixed rate, this cut won’t impact your payments directly. However, it might be worth revisiting your options if your term is nearing renewal or if breaking your mortgage to refinance at a lower rate could save you money. Consult with your mortgage broker to analyze potential penalties and savings.

Prospective Buyers

  • Going Fixed: Fixed rates aren’t directly impacted by these cuts as they follow bond yields. Influenced by recent domestic political uncertainties, such as the recent resignation of Canada's finance minister, and global economic concerns impacting investor sentiment, the bond yields have only seen very slight downward trends when compared to the Bank of Canada decisions . If fixed is your preference, lock in your rate now but keep on your mortgage broker to push for better rates once you're under contract. 

  • Going Variable: Your purchasing power continues to grow as variable rates drop. This rate cut boosts borrowing capacity by another 4-5%. With more cuts potentially on the horizon, the trend is clear: Variable borrowers are in a strong position. But remember, as your buying power increases, so does everyone else’s. Acting now can help you beat the rush as sellers with listings that have sat over the holidays may be keen to move on to their next property.

Will There Be Another Cut on January 29th?

Looking ahead, the market is pricing a 60% chance of a 25 bps cut and a 40% chance of no cut at all, based on the forward contracts on the Canadian Overnight Repo Rate Average (CORRA) as of December 28th. Factors influencing this decision include:

  • Inflation Trends: Core inflation has been cooling but remains slightly above the Bank’s target range. Further cuts will depend on whether this trend continues.

  • Economic Growth: Recent GDP data suggests slowing growth, which supports further easing.

  • Global Influences: The Bank is also monitoring international monetary policies, particularly in the U.S., as well as global financial stability.

Should You Wait or Buy Now?

Every situation is unique, but here are some things to consider:

  • Ready to Buy: December and January are typically great times to be active as a buyer. This year inventory levels remain high, and many sellers are motivated. Acting now could give you a significant edge over spring competition.

  • Waiting for Another Cut: If your down payment or finances aren’t ready yet, there’s potential for rates to drop further. However, the spring market typically brings more competition and potentially higher home prices, offsetting the benefit of lower rates.

  • Mixing Fixed and Variable: Some buyers are opting for variable rates now and planning to lock into a fixed rate later in 2025. Discuss this strategy with your broker to ensure it aligns with your financial goals.

Let’s Build Your Plan Together

The recent rate cuts have reshaped the housing market landscape, creating opportunities for homeowners looking to make a move and buyers alike. Whether you're planning to buy your first home, upsize or downsize it’s crucial to have a tailored strategy with an advisor you can trust.

Reach out today to discuss your goals and take advantage of the changing market:

Email: kadelacasse@gmail.com
Call/Text: 604-401-9199
Book directly into my schedule HERE

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Important Changes to The Residential Tenancy Act

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.

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SOLD Beautiful Mount Pleasant Couch House

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 

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Most Rental and Age Restrictions are no longer valid with the passing of historic legislation last month!

David Eby followed through on the promise he made in his leadership campaign and introduced Bill 44 which has amended the Strata Property Act so that is no longer legal for Strata’s to adopt bylaws which restrict rentals or impose a minimum age for owners or residents below 55 years (senior housing). This Bill 44 was effective as soon as it passed on November 24th and any bylaws that were previously in place are now unenforceable. 

Owners will still need to follow their Municipal bylaws when it comes to short term rentals. A strata can not restrict rentals but they can refuse permission to obtain a short term rental business license as required in Vancouver when renting for a period of less than 30 days. 

The Premier stated that 2900 homeowners asked for exemptions from the speculation and vacancy tax based on the fact that their Strata would not allow them to rent their unit out. 2900 homes could be added to the rental pool, a rental pool which is in dire need after an over 40% increase in rents year over year in some parts of BC. 

 If you are a buyer in this current market, make sure you go back and look at the units you crossed off of your list because of the age restrictions or rental restrictions. You can now look a bit more freely knowing that if life throws you a curveball; you won’t be as stuck as you may have been in a Strata that doesn’t allow rentals or children.

For homeowners in a previously restricted building, your options just opened up big time. Talk to your Realtor about how this affects the value of your home as well as your Mortgage broker. Depending on your situation, maybe you have grown out of your studio apartment, you may be able to keep this unit and rent it out while you upsize into something bigger and start earning passive income!

Either way, your home will have many more eyes on it when it comes time to sell.


Reach out if you have any questions, let's chat about how this affects the value of your home!

-Kade

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We are less than two months away from the Cooling-Off Period that the government hinted at in 2021. I’m going to break this down for you as of the beginning of November 2022 but as with many regulatory changes; it may take some time to figure out how this change will effect Real Estate practice and strategy moving forward.

The seller’s market of 2020 and 2021 was an awful time for buyers. Subject-free offers were the hot ticket for sellers and desperate Buyers were feeling pressured to remove their subjects in order to stay competitive. The BC Government aiming to protect those consumers introduced the idea of the cooling off period which we are now calling the Home Buyer Rescission Period (HBRP).

The HBRP comes into effect on January 1st, 2023 and will be applicable to most Real Estate transactions in BC. There are a few exemptions the notable ones being;
1)leaseholds
2)pre-sale homes which are regulated under the Real Estate Development Marketing Act (REDMA) and already allow buyers an automatic 7-day right of rescission period.

Okay so what is the HBRP?

The HBRP and amendment to the Property Law Act state that a buyer is allowed to rescind their offer at any point during a 3-business day period starting on the first business day after the offer is accepted. So if a buyer’s offer is accepted on Thursday and assuming there are no holidays; they have until 11:59pm on the following Tuesday to rescind the offer in writing. The penalty for rescinding an offer is 0.25% of the purchase price paid by the Buyer to the Seller. 

Currently, deposits are typically presented when the deal is firm (subjects are removed or the offer was subject-free).
Time will tell what new standards the HBRP will bring to the Real Estate transaction but I foresee a first 0.25% deposit along with the offer and the remaining deposit due upon a firm deal. The new amendment also allows a brokerage to release the 0.25% to the seller and any remaining deposit to the buyer within the rescission period. That way the seller feels comfortable that they will not have to chase down their 0.25% upon rescission as previously both parties had to agree in writing in order for the deposit to be paid out of the Trust account.

This rescission period does not replace the need for other subjects and subjects will run concurrently with the 3 business day window. In order to ensure access for an inspector or appraisal, the subject should still be written into the contract. But, unlike typical subjects which allow the benefitting party to back out of a deal for a specific reason (ie. failed inspection or financing/appraisal issue), the buyer does not need to provide a reason for exercising this right of rescission.

Most importantly; the buyer is not allowed to waive this option. This makes sense as to allow it would render this regulation completely ineffective. Buyers would feel pressured to waive it in order to compete in the next competitive Vancouver Real Estate market.

It may feel like too little too late but while new construction of condos dropped 46% in Metro Vancouver in the first half of 2022 compared to 2021 according to CMHC; we still have a supply issue on our hands and we have not seen our last Multiple Offer-Over Ask competitive market.

While there are ways an educated buyer and a prudent buyer’s agent can lessen the risks of a subject-free offer; I think subject-free offers should be the exception and not the rule for the average buyer. Time will tell how effective this regulation is but I support the government’s goal and hope buyers feel more protected in competitive markets moving forward.

If you have any questions about the new rescission period or buying process, reach out!

Kade Lacasse
Vancouver Realtor
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Days on Market (DOM)- How many days the listing has been live or was live before it sold. Important stat but should be taken with a grain of salt as sellers will re-list their home when the listing is stale and this will restart the DOM count, bringing the listing to the top of the pile once again.

Open House- Window of time where the home will be shown to anyone that would like to have a look around. This will be hosted by a licensed agent but not necessarily the listing agent.

Open House by appt- Same as an open house but for more serious buyers who are either engaged with a Realtor or have contacted the agent directly to schedule an appointment.

Offers as they come- The seller will be reviewing offers as soon as they are received and can accept an offer the first day the listing is live. This is the typical listing strategy.

Holding Offers- The seller has set a date and time in which they have decided to look at offers (ie. 4pm Tuesday January 10th) . This is performed in writing and via a document called “Direction Regarding Presentation of Offers” (DRPO). What is not often understood is that the seller can change this direction (in writing) at any point. They can add a DRPO after originally taking offers as they come OR they can decide to look at strong offers presented before the offer deadline (Bully Offer). If they do choose to look at Bully Offers, they must notify everyone that requested to stay updated on the property in writing that they are moving up the offer deadline. So if you like a property, it’s best to let your agent know so they can express interest in writing and stay updated on the status.
This strategy is used when sellers are expecting multiple offers and in recent years has been combined with a listing price that is lower than the seller is willing to accept.
See my blog on Invitation to Treat for more details

Offer- A completed “Contract of Purchase and Sale” signed by the buyers stating the names of the buyers, sellers, the address of the home, offer price, terms and how long it is open for acceptance. Once the offer is sent, if the other seller signs without any changes, you have an accepted offer.  If they sign but change any terms, this is considered a counter-offer and the changes will need to be signed by the buyers in order to be considered a fully executed accepted offer.

Completion- aka Closing- The date on which the money goes from the buyer’s lawyer or notary to the seller’s lawyer or notary and the Title is officially registered in the Buyer’s name. The buyer becomes responsible for the property at 12:01 am on the completion day which is why we advise our clients to have the home insured for completion day not possession day.

Adjustment- The date that the lawyers use to make adjustments between the buyer and seller for the other costs associated with the property. For example, the seller will be responsible for their share (100/365 days) and the buyer responsible for the remainder (265/365 days) of the Property Tax or Strata fees. The adjustment date is typically the same as the possession date.

Possession- The date and time in which the buyer is entitled to physical possession of the property (assuming there is no tenancy in place).

Firm Deal- An accepted offer which is subject free or the buyer and seller have removed their subjects; the deal is now firm and binding meaning that the parties must perform their obligations set out in the contract (buyer releasing funds for completion and the seller providing a free and clear title and possession) or face legal consequences.

Conditional Offer- an accepted offer that contains Subjects (aka conditions). While there is a conditional offer in place, the seller may accept back-up offers.

Back-up Offer- an accepted offer between a second buyer and the seller that is subject to the first accepted offer falling through. 

Subjects- these are clauses in the contract that allow the benefitting party to walk away from the sale if their subject is not satisfied within the time specified. Typically subjects are for the benefit of the buyer and include financing, inspection, document and title review, etc. but can be for the benefit of the seller.

Deposit-aka earnest money- Money provided by the buyer to secure the sale. This is usually about 5% of the purchase price, due once the deal is firm and deposited into the buyer’s agent’s brokerage trust account. If the buyer is unable to perform their contractual obligations, the seller will be entitled to the deposit but the buyer may be liable for even more than the deposit should the seller have incurred additional damages.
The deposit is considered part of the down payment at completion.

Down Payment- Initial money the buyer pays towards the home (not including the closing costs) to complete the purchase. Purchase price - mortgage= Downpayment 

Appraisal - In terms of Real Estate, an appraisal is when an unbiased and impartial professional determines the value of a home or property. An appraisal can be physical, where the appraiser comes on-site to view the home OR a desk appraisal where they use recent comparable sales to determine the value. Required by lenders for home purchases and home-owners that are looking to re-finance as the lender wants to make sure the value of the home covers their risk, should the borrower default.

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Listing Low: An Invitation To Treat

We've all seen the headlines of these homes selling for $300k, $500k or more over asking price in Vancouver, Metro Vancouver and other areas of BC. So what's the deal?

First thing I want to say is, in our current market Asking Price is BS 85% of the time.
I tell my clients to ignore it or at the very least, take it with a big dry grain of Maldon.

Where in the past asking price has typically been an indication of the Seller’s expectations; the go-to marketing strategy in the Vancouver market is to use a low asking price as an invitation to treat.

What is an invitation to treat? An invitation to treat is when one party delivers information in order to entice another party to make an offer. The originial party is not, and has no intention to be, legally bound by this invitation.
So when that townhouse is listed for $990,000 depsite an identical unit in the same complex having sold for $1,268,000 3 weeks ago; the seller is inviting buyers to bring their best offer but is not legally bound to accept any of those offers, whether they meet or exceed the asking price.

Something that catches my clients off guard about this? If the seller doesn’t get that $300k over asking they wanted, THEY WILL DECLINE ALL OF THE OFFERS and re-list the day after offers were reviewed, raising the price by $300k. Yes they can do that. That’s often when we get to see the true asking price and one of the reasons I say Asking Price is BS only 85% of the time.


In this example, they list the property at $960,000. The agent and seller decide to hold offers off until the following Tuesday. Buyers with low budgets will think this place is a steal under a million and will want to see it along with the townhouse shoppers that missed out on the neighbour's listing last month. Showing appointments will be booked, open houses will have lineups pouring onto the streets and the agent at the open house will tell every buyer and agent just how busy it's been.

And damn, Vancouver loves a line. Makes me think of a restaurant I used to work at that had an amazing breakfast with waffles (yum) and lavender lattes (not for me but you do you, hon) and they served Mon-Fri with no wait because locals and tourists alike were 3 blocks down the street waiting in line for the other belgian waffle, lavender latte spot because *get this* it was known for how long of a wait it was to get a table.

Back to the towhnouse, we now have the frenzy of activity for viewings and when the home shows well there will be mulitple offers. Tuesday rolls around and they get 12 offers, 9 of which are way under market hoping for a miracle and 3 serious offers at around 1.2 million. The listing agent leverages the 3 top offers against each other and the home sells for 1.3 million. $310k over asking and a new record in the complex.

There we have it, a home sold in market but advertised as $310k over asking.

This technique is certainly seeing results and I can't blame the Seller or listing agent for going this route. These sellers want the best and quickest sale of their home and I'm assuming you will too when you sell your next home. But would that unit have sold for 1.3 million if they listed it at 1.26? Maybe, because there were still 3 buyers willing to pay at least 1.2 million. 

Bottom Line; as a buyer, you can't control how a seller chooses to list or market their home. What can you do?
Don't take it personally! Adjust your expectations, stop believing the over-ask hype and have a chat with your trusty Realtor about whether this home is priced in market and if it will actually sell within your budget.

Happy to answer any questions about this pricing strategy, the buying and offer process or anything else Vancouver Waffle Spot or Real Estate related.
Use the Let's Connect form below or text/call direct at 604-401-9199.


- Kade Lacasse | Vancouver Realtor

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“ANOTHER ONE”

Another Big Move: Bank of Canada Cuts Rates Again by 50 bps

The Bank of Canada did it again! On December 11th, they announced another significant cut to the overnight target rate, slashing it by 0.50%, bringing the rate down from 3.75% to 3.25%. This marks the second consecutive 50 bps cut following the October decision and reflects a clear shift away from a restrictive monetary policy away. For homeowners, prospective buyers, and anyone navigating the mortgage market, this is another game-changer.

What Does This Mean for You?

Variable Rate Mortgage Holders

For those with variable rate mortgages, you’ll notice some impactful changes:

  • Fixed Payment Variable Mortgages: If your payment is fixed, your payment remains unchanged. However, a greater portion of your payment will now go toward reducing your principal balance instead of paying interest. For example:

    • A $500,000 uninsured mortgage with a 30-year amortization and rate of Variable Prime - 0.56% had a rate of 5.89% before the October cut with a payment of $2962.48. $508 of which went to principal. After October's cut, $717 of that payment would go to principal, and after December's cut $925 is going towards the principal, effectively dropping your amortization from 30yrs to just under 24yrs.

  • Adjustable Rate Mortgages: Your payment will decrease with this rate cut to maintain your original amortization schedule. For the same mortgage, your payment drops to $2,650.60, with $613 now going to the principal. This adjustment provides immediate relief to your monthly budget.

    ** Some banks will allow ‘fixed payment’ variable mortgage holders to adjust their payments. If a lower payment aligns more with your goals than shorter amortization; chat with your mortgage broker or call your bank directly to check your options.

Fixed Rate Mortgage Holders

If you’re locked into a fixed rate, this cut won’t impact your payments directly. However, it might be worth revisiting your options if your term is nearing renewal or if breaking your mortgage to refinance at a lower rate could save you money. Consult with your mortgage broker to analyze potential penalties and savings.

Prospective Buyers

  • Going Fixed: Fixed rates aren’t directly impacted by these cuts as they follow bond yields. Influenced by recent domestic political uncertainties, such as the recent resignation of Canada's finance minister, and global economic concerns impacting investor sentiment, the bond yields have only seen very slight downward trends when compared to the Bank of Canada decisions . If fixed is your preference, lock in your rate now but keep on your mortgage broker to push for better rates once you're under contract. 

  • Going Variable: Your purchasing power continues to grow as variable rates drop. This rate cut boosts borrowing capacity by another 4-5%. With more cuts potentially on the horizon, the trend is clear: Variable borrowers are in a strong position. But remember, as your buying power increases, so does everyone else’s. Acting now can help you beat the rush as sellers with listings that have sat over the holidays may be keen to move on to their next property.

Will There Be Another Cut on January 29th?

Looking ahead, the market is pricing a 60% chance of a 25 bps cut and a 40% chance of no cut at all, based on the forward contracts on the Canadian Overnight Repo Rate Average (CORRA) as of December 28th. Factors influencing this decision include:

  • Inflation Trends: Core inflation has been cooling but remains slightly above the Bank’s target range. Further cuts will depend on whether this trend continues.

  • Economic Growth: Recent GDP data suggests slowing growth, which supports further easing.

  • Global Influences: The Bank is also monitoring international monetary policies, particularly in the U.S., as well as global financial stability.

Should You Wait or Buy Now?

Every situation is unique, but here are some things to consider:

  • Ready to Buy: December and January are typically great times to be active as a buyer. This year inventory levels remain high, and many sellers are motivated. Acting now could give you a significant edge over spring competition.

  • Waiting for Another Cut: If your down payment or finances aren’t ready yet, there’s potential for rates to drop further. However, the spring market typically brings more competition and potentially higher home prices, offsetting the benefit of lower rates.

  • Mixing Fixed and Variable: Some buyers are opting for variable rates now and planning to lock into a fixed rate later in 2025. Discuss this strategy with your broker to ensure it aligns with your financial goals.

Let’s Build Your Plan Together

The recent rate cuts have reshaped the housing market landscape, creating opportunities for homeowners looking to make a move and buyers alike. Whether you're planning to buy your first home, upsize or downsize it’s crucial to have a tailored strategy with an advisor you can trust.

Reach out today to discuss your goals and take advantage of the changing market:

Email: kadelacasse@gmail.com
Call/Text: 604-401-9199
Book directly into my schedule HERE

Read

Important Changes to The Residential Tenancy Act

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.

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SOLD Beautiful Mount Pleasant Couch House

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 

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Most Rental and Age Restrictions are no longer valid with the passing of historic legislation last month!

David Eby followed through on the promise he made in his leadership campaign and introduced Bill 44 which has amended the Strata Property Act so that is no longer legal for Strata’s to adopt bylaws which restrict rentals or impose a minimum age for owners or residents below 55 years (senior housing). This Bill 44 was effective as soon as it passed on November 24th and any bylaws that were previously in place are now unenforceable. 

Owners will still need to follow their Municipal bylaws when it comes to short term rentals. A strata can not restrict rentals but they can refuse permission to obtain a short term rental business license as required in Vancouver when renting for a period of less than 30 days. 

The Premier stated that 2900 homeowners asked for exemptions from the speculation and vacancy tax based on the fact that their Strata would not allow them to rent their unit out. 2900 homes could be added to the rental pool, a rental pool which is in dire need after an over 40% increase in rents year over year in some parts of BC. 

 If you are a buyer in this current market, make sure you go back and look at the units you crossed off of your list because of the age restrictions or rental restrictions. You can now look a bit more freely knowing that if life throws you a curveball; you won’t be as stuck as you may have been in a Strata that doesn’t allow rentals or children.

For homeowners in a previously restricted building, your options just opened up big time. Talk to your Realtor about how this affects the value of your home as well as your Mortgage broker. Depending on your situation, maybe you have grown out of your studio apartment, you may be able to keep this unit and rent it out while you upsize into something bigger and start earning passive income!

Either way, your home will have many more eyes on it when it comes time to sell.


Reach out if you have any questions, let's chat about how this affects the value of your home!

-Kade

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We are less than two months away from the Cooling-Off Period that the government hinted at in 2021. I’m going to break this down for you as of the beginning of November 2022 but as with many regulatory changes; it may take some time to figure out how this change will effect Real Estate practice and strategy moving forward.

The seller’s market of 2020 and 2021 was an awful time for buyers. Subject-free offers were the hot ticket for sellers and desperate Buyers were feeling pressured to remove their subjects in order to stay competitive. The BC Government aiming to protect those consumers introduced the idea of the cooling off period which we are now calling the Home Buyer Rescission Period (HBRP).

The HBRP comes into effect on January 1st, 2023 and will be applicable to most Real Estate transactions in BC. There are a few exemptions the notable ones being;
1)leaseholds
2)pre-sale homes which are regulated under the Real Estate Development Marketing Act (REDMA) and already allow buyers an automatic 7-day right of rescission period.

Okay so what is the HBRP?

The HBRP and amendment to the Property Law Act state that a buyer is allowed to rescind their offer at any point during a 3-business day period starting on the first business day after the offer is accepted. So if a buyer’s offer is accepted on Thursday and assuming there are no holidays; they have until 11:59pm on the following Tuesday to rescind the offer in writing. The penalty for rescinding an offer is 0.25% of the purchase price paid by the Buyer to the Seller. 

Currently, deposits are typically presented when the deal is firm (subjects are removed or the offer was subject-free).
Time will tell what new standards the HBRP will bring to the Real Estate transaction but I foresee a first 0.25% deposit along with the offer and the remaining deposit due upon a firm deal. The new amendment also allows a brokerage to release the 0.25% to the seller and any remaining deposit to the buyer within the rescission period. That way the seller feels comfortable that they will not have to chase down their 0.25% upon rescission as previously both parties had to agree in writing in order for the deposit to be paid out of the Trust account.

This rescission period does not replace the need for other subjects and subjects will run concurrently with the 3 business day window. In order to ensure access for an inspector or appraisal, the subject should still be written into the contract. But, unlike typical subjects which allow the benefitting party to back out of a deal for a specific reason (ie. failed inspection or financing/appraisal issue), the buyer does not need to provide a reason for exercising this right of rescission.

Most importantly; the buyer is not allowed to waive this option. This makes sense as to allow it would render this regulation completely ineffective. Buyers would feel pressured to waive it in order to compete in the next competitive Vancouver Real Estate market.

It may feel like too little too late but while new construction of condos dropped 46% in Metro Vancouver in the first half of 2022 compared to 2021 according to CMHC; we still have a supply issue on our hands and we have not seen our last Multiple Offer-Over Ask competitive market.

While there are ways an educated buyer and a prudent buyer’s agent can lessen the risks of a subject-free offer; I think subject-free offers should be the exception and not the rule for the average buyer. Time will tell how effective this regulation is but I support the government’s goal and hope buyers feel more protected in competitive markets moving forward.

If you have any questions about the new rescission period or buying process, reach out!

Kade Lacasse
Vancouver Realtor
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Days on Market (DOM)- How many days the listing has been live or was live before it sold. Important stat but should be taken with a grain of salt as sellers will re-list their home when the listing is stale and this will restart the DOM count, bringing the listing to the top of the pile once again.

Open House- Window of time where the home will be shown to anyone that would like to have a look around. This will be hosted by a licensed agent but not necessarily the listing agent.

Open House by appt- Same as an open house but for more serious buyers who are either engaged with a Realtor or have contacted the agent directly to schedule an appointment.

Offers as they come- The seller will be reviewing offers as soon as they are received and can accept an offer the first day the listing is live. This is the typical listing strategy.

Holding Offers- The seller has set a date and time in which they have decided to look at offers (ie. 4pm Tuesday January 10th) . This is performed in writing and via a document called “Direction Regarding Presentation of Offers” (DRPO). What is not often understood is that the seller can change this direction (in writing) at any point. They can add a DRPO after originally taking offers as they come OR they can decide to look at strong offers presented before the offer deadline (Bully Offer). If they do choose to look at Bully Offers, they must notify everyone that requested to stay updated on the property in writing that they are moving up the offer deadline. So if you like a property, it’s best to let your agent know so they can express interest in writing and stay updated on the status.
This strategy is used when sellers are expecting multiple offers and in recent years has been combined with a listing price that is lower than the seller is willing to accept.
See my blog on Invitation to Treat for more details

Offer- A completed “Contract of Purchase and Sale” signed by the buyers stating the names of the buyers, sellers, the address of the home, offer price, terms and how long it is open for acceptance. Once the offer is sent, if the other seller signs without any changes, you have an accepted offer.  If they sign but change any terms, this is considered a counter-offer and the changes will need to be signed by the buyers in order to be considered a fully executed accepted offer.

Completion- aka Closing- The date on which the money goes from the buyer’s lawyer or notary to the seller’s lawyer or notary and the Title is officially registered in the Buyer’s name. The buyer becomes responsible for the property at 12:01 am on the completion day which is why we advise our clients to have the home insured for completion day not possession day.

Adjustment- The date that the lawyers use to make adjustments between the buyer and seller for the other costs associated with the property. For example, the seller will be responsible for their share (100/365 days) and the buyer responsible for the remainder (265/365 days) of the Property Tax or Strata fees. The adjustment date is typically the same as the possession date.

Possession- The date and time in which the buyer is entitled to physical possession of the property (assuming there is no tenancy in place).

Firm Deal- An accepted offer which is subject free or the buyer and seller have removed their subjects; the deal is now firm and binding meaning that the parties must perform their obligations set out in the contract (buyer releasing funds for completion and the seller providing a free and clear title and possession) or face legal consequences.

Conditional Offer- an accepted offer that contains Subjects (aka conditions). While there is a conditional offer in place, the seller may accept back-up offers.

Back-up Offer- an accepted offer between a second buyer and the seller that is subject to the first accepted offer falling through. 

Subjects- these are clauses in the contract that allow the benefitting party to walk away from the sale if their subject is not satisfied within the time specified. Typically subjects are for the benefit of the buyer and include financing, inspection, document and title review, etc. but can be for the benefit of the seller.

Deposit-aka earnest money- Money provided by the buyer to secure the sale. This is usually about 5% of the purchase price, due once the deal is firm and deposited into the buyer’s agent’s brokerage trust account. If the buyer is unable to perform their contractual obligations, the seller will be entitled to the deposit but the buyer may be liable for even more than the deposit should the seller have incurred additional damages.
The deposit is considered part of the down payment at completion.

Down Payment- Initial money the buyer pays towards the home (not including the closing costs) to complete the purchase. Purchase price - mortgage= Downpayment 

Appraisal - In terms of Real Estate, an appraisal is when an unbiased and impartial professional determines the value of a home or property. An appraisal can be physical, where the appraiser comes on-site to view the home OR a desk appraisal where they use recent comparable sales to determine the value. Required by lenders for home purchases and home-owners that are looking to re-finance as the lender wants to make sure the value of the home covers their risk, should the borrower default.

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Listing Low: An Invitation To Treat

We've all seen the headlines of these homes selling for $300k, $500k or more over asking price in Vancouver, Metro Vancouver and other areas of BC. So what's the deal?

First thing I want to say is, in our current market Asking Price is BS 85% of the time.
I tell my clients to ignore it or at the very least, take it with a big dry grain of Maldon.

Where in the past asking price has typically been an indication of the Seller’s expectations; the go-to marketing strategy in the Vancouver market is to use a low asking price as an invitation to treat.

What is an invitation to treat? An invitation to treat is when one party delivers information in order to entice another party to make an offer. The originial party is not, and has no intention to be, legally bound by this invitation.
So when that townhouse is listed for $990,000 depsite an identical unit in the same complex having sold for $1,268,000 3 weeks ago; the seller is inviting buyers to bring their best offer but is not legally bound to accept any of those offers, whether they meet or exceed the asking price.

Something that catches my clients off guard about this? If the seller doesn’t get that $300k over asking they wanted, THEY WILL DECLINE ALL OF THE OFFERS and re-list the day after offers were reviewed, raising the price by $300k. Yes they can do that. That’s often when we get to see the true asking price and one of the reasons I say Asking Price is BS only 85% of the time.


In this example, they list the property at $960,000. The agent and seller decide to hold offers off until the following Tuesday. Buyers with low budgets will think this place is a steal under a million and will want to see it along with the townhouse shoppers that missed out on the neighbour's listing last month. Showing appointments will be booked, open houses will have lineups pouring onto the streets and the agent at the open house will tell every buyer and agent just how busy it's been.

And damn, Vancouver loves a line. Makes me think of a restaurant I used to work at that had an amazing breakfast with waffles (yum) and lavender lattes (not for me but you do you, hon) and they served Mon-Fri with no wait because locals and tourists alike were 3 blocks down the street waiting in line for the other belgian waffle, lavender latte spot because *get this* it was known for how long of a wait it was to get a table.

Back to the towhnouse, we now have the frenzy of activity for viewings and when the home shows well there will be mulitple offers. Tuesday rolls around and they get 12 offers, 9 of which are way under market hoping for a miracle and 3 serious offers at around 1.2 million. The listing agent leverages the 3 top offers against each other and the home sells for 1.3 million. $310k over asking and a new record in the complex.

There we have it, a home sold in market but advertised as $310k over asking.

This technique is certainly seeing results and I can't blame the Seller or listing agent for going this route. These sellers want the best and quickest sale of their home and I'm assuming you will too when you sell your next home. But would that unit have sold for 1.3 million if they listed it at 1.26? Maybe, because there were still 3 buyers willing to pay at least 1.2 million. 

Bottom Line; as a buyer, you can't control how a seller chooses to list or market their home. What can you do?
Don't take it personally! Adjust your expectations, stop believing the over-ask hype and have a chat with your trusty Realtor about whether this home is priced in market and if it will actually sell within your budget.

Happy to answer any questions about this pricing strategy, the buying and offer process or anything else Vancouver Waffle Spot or Real Estate related.
Use the Let's Connect form below or text/call direct at 604-401-9199.


- Kade Lacasse | Vancouver Realtor

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