The Blog - John Chan Mortgages

June 2020 Vancouver Real Estate Review

Relative to the last few months, June was a strong month for real estate. Sales increased 64.5% from this May. In the big picture, sales were 21.9% below the 10-year June sales average. However, this is still better than last June by 17.6%, when the sales were 34.9% below the 10-year sales average. The strong showing might be due to the pent up from the months of restrictions. An RBC economist announced last month that we have probably seen the peak prices for real estate for the year. This correlates well with the fact that all benchmark prices have dropped in June. For detached home, the benchmark price dropped 0.5%. For apartment and attached homes, the benchmark prices have decrease 0.8% and 0.2% respectively. The

July 8, 2020 No Comments

May 2020 Vancouver Real Estate Review

In this past month of May, the sales were 43.7% lower than May 2019 and 54.4% below the 10-year May sales average. Despite the anemic sales, the prices have not moved much. For detached homes the benchmark price went up 0.3% from the previous month and still up 2.9% from May 2019. For apartment homes, the benchmark price went down 0.3% from the previous month but still up 3% from May 2019. For attached homes, the benchmark price went up 0.2% from the previous month and up 1.8% from May 2019. The inventory is 32.4% lower than a year ago and that might explain part of the price stability. The sales-to-active listings ratio are still healthy. It is 13.5% for detached homes, 18.9% for townhomes

July 7, 2020 No Comments

April 2020 Vancouver Real Estate Review

It has been a rough month globally and I am glad here in BC, we seem to have a better handle on the pandemic than the States. I hope everyone is healthy and doing well. I have included the help-links from the province and federal government in case someone needs the help. BC Government COVID-19 Page: https://www2.gov.bc.ca/gov/content/safety/emergency-preparedness-response-recovery/covid-19-provincial-support Federal Government COVID-19 Page: https://www.canada.ca/en/department-finance/economic-response-plan.html In terms of the real estate market in April, sales are slow, inventory is holding steady and so are the prices. There were 1,109 sales in Metro Vancouver last month. That is a 39.4% decrease from last year. But last year was a bad year. Last April’s sales were 29.1% below the year before. For comparison, at the market high in March 2016

July 6, 2020 No Comments

March 2020 Metro Vancouver Real Estate Review

What a difference a month makes! Covid-19 has basically shut down Canada and a good part of the world. The real estate market was going strong until mid March when social isolation started to put a stop to open houses and other real estate activities. The industry has adapted to the new measures. So, sales interactions are still going on, but just at a slower pace. However, it is not a bad idea to sit on the sideline to see how this pandemic plays out. The Canadian government has already committed more money to fight this then all the money for the 2008 financial crisis. The key is to stem bankruptcies. The government seem to be willing to throw in the kitchen sink. Let’s hope

July 5, 2020 No Comments

Home Equity Loans in the World of Covid-19

In this extreme time of financial stress, people are looking for relief. Home equity loans might be the answer, but there are many costs associated with it and you must weigh all your options before committing to one. I would like to cover the basics in this article so you are not at the mercy of the first lender you call. And remember if they are willing to take your application today, they will take it next week. Don’t get pressured into moving faster than you are comfortable with. A home equity loan requires the lender to put their name on your title. This means lawyers are involved. The borrower is responsible for all legal costs and a $2,000 budget is probably average. The lender

April 17, 2020 No Comments

2020 February Metro Vancouver Real Estate Review

The February market looks to be healthy. Inventory is a bit on the low side. 20.7% below last February. With a relatively strong sales volume (44.9% above February 2019, and 15.6% below the 10-year February sales average), prices in all three types of property increased last month. The benchmark price for a detached home is up 0.2% for the last month but down 0.7% over the last 12 months at a price of $1,433,900. For apartments, the price is up 2.1% for the last month but only up 0.9% over the last 12 months at $677,200. And finally, for attached homes, the price is up 0.3% for the last month and up 0.6% for the last 12 months at $785,000. The sales-to-active listing ratios show

April 17, 2020 No Comments

2019 December Metro Vancouver Real Estate Review

Last year was a slow year for real estate sales in Metro Vancouver. Total sales were 20.3% below the 10-year sales average. So, it should be no surprise that the value of real estate in the region would drop. And this is reflected in the new BC Assessments that have been sent out earlier this month. Some drops are substantial, but note if you do not need to sell or refinance your property now, then it doesn’t really affect you. Lenders do NOT reassess your property at renewal as long as you don’t miss any payments. So, for people who bought their property with 5% down payment and the assessment is down 15%, you do not need to be concerned about being kicked out of

April 16, 2020 No Comments

2020 January Metro Vancouver Real Estate Review

The big news in the past month is the recent massive hike in Strata building insurance premiums. Horror stories tell of hikes of 350% to 780% increase to the premium. One condo building in Abbotsford had to implement a one-time levy of $,3000 a unit and a doubling of the monthly strata fee to $600. And if you think that is bad, try not being able to get insurance. There are buildings that are having trouble getting insurance. This can potentially cause the bank to pull financing which means they want their money back but you can’t sell the unit because any new buyer will not be able to get financing. It is unclear why the huge increases now. Some say old buildings with bad

April 16, 2020 No Comments

November 2019 Metro Vancouver Real Estate Review

Looks like the market is back to a healthier pace. November continues on with the recovery story. The November sales were 4% above the 10-year November average. As the year closes out, the number of new listing falls as usual. It is 25.7% lower than October, but it is also 13.7% below last November. The total number listed is 12.5% below last November as well which is helping support the prices. Prices are remaining fairly stable. The benchmark price for an apartment has gone down 0.2% in the last month while the prices of detached homes and attached homes has gone up 0.3% and 0.2% respectively. The sales-to-active listings ratio which gives an indication of demand in the market is a healthy 23.2%. The higher

April 16, 2020 No Comments