– article by Barry Mathias; photos by www.nuttycake.com –
When we come to buy a house, most of us have already decided where we want to live, and how much we might be able to afford. However, we quickly find out that there are many more aspects to be considered, and the same applies when we come to sell our home: we are confronted with major decisions as to what price to charge, where to advertise and what pitfalls must be avoided. This is why we need professional realtors. With the housing market looking strong as we move into fall 2015 both buyers and sellers will have many questions.
“A total of 741 properties were sold in the Victoria Real Estate Board region this August compared to 609 properties in the same month in 2014,” says Guy Crozier of Remax Camosun. Guy is the current President of the Victoria Real Estate Board (VREB), founded in 1921, which represents over 1,200 realtors, and is a key player in the development of standards and innovative programs to enhance their professionalism. “We have a Government Liaison Committee that helps respond to issues that affect home owners,” (an example would be the problem of underground oil tanks) “and a continuing education program that requires all realtors to take industry courses every two years.” The VREB is also concerned with the constant improvement and expansion of the Multiple Listing Service (MLS) among the 100 Boards throughout Canada.
“However, it is The Real Estate Council, established in 1958 by the provincial government, that is the regulatory agency for the industry,” he explains. The Council is responsible for licensing individuals and brokerages, and enforcing entry qualifications and investigating complaints.
Guy notes that throughout July there was an increase in sales and a decline in the VREB listings. “The market is going through its typical summer cycle, but what is exciting is seeing the overall change in the real estate market in the last twelve months,” he says. “The latest August statistics show an increase from 16.9% in total sales in this area in July to 21.7% this month.”
Single family home sales have surged to their highest number since August 2007, while total active listings are 14.6% fewer than August 2014. During the same time period there has been an increase of 6.5% in the Multiple Listing Service’s Home Price Index benchmark value for a single family home on the Peninsula, raising it to $557,100 from $523,300. “Consumer confidence remains very strong and shows no sign of lessening,” Guy says.
“There are ongoing subtle changes to the housing market,” Guy explains. He gives as an example Sidney’s gradual densification over the last 20 years. “There is an acceptance of smaller dwellings close to the town centre, approximately 800 at the present time, and this goes hand-in-hand with improved architectural designs and modern furnishings and appliances.” This also applies to many village centres that are ‘walkable’ areas, encouraging neighborhoods to develop with less emphasis on the car. “Many people are moving towards this concept.”
Guy emphasizes that Sidney is no different from other centres as regards the pressures of growth. “With increased population comes the need for more schools, extended care facilities etc. In the past, the Victoria and Saanich regions may have tended to attract mainly retirees, but now attracts a wide variety of ages and skills.” When demand for housing exceeds supply, the result is higher prices. “From 2009 to 2014, we saw a downward price correction in every segment of the Victoria market, but over the last twelve months we’ve seen almost all of that come back, which has really exceeded our expectations for 2015.”
Adding to this optimistic picture is an announcement by the Canadian Mortgage and Housing Corporation (CMHC). “Starting at the end of September, buyers who have less than a 20 percent deposit will, when they apply for mortgage loan insurance from the CMHC, be allowed to include 100 percent of the projected income from secondary suites,” says Guy. “A change like this may buoy the market through the fall and winter.”
Another realtor, also at Remax, is Georgia Wiggins who, with her husband Tim, has just received the President’s Award from the VREB. This is only awarded to realtors who have achieved either a gold or silver award through the Board for 10 out of 13 years. She explained an interesting recent phenomenon: “Chinese buyers have pushed the Benchmark price for a detached home in West Vancouver to $2,653,000! Many of those who are selling are coming to the Victoria area and are purchasing our high end real estate and banking the difference. They are also ending up with nicer homes due to the price differential.”
Georgia was able to supply me with the 2014 details of who is buying in this region, and in the ‘Out-of-Town’ category, 22% came from Alberta, and 20% of B.C buyers came from Vancouver. “My prediction is that when the 2015 statistics are published you will see Vancouver as the #1 Out-of-Town origin for buyers in this region. It was interesting to note that in the ‘All Buyers’ category, only 0.60% came from Asia and 0.72% came from the USA.
The Real Estate Market is complex, for example: “Condo prices were down by 8% over last year while sales of condos were up, and townhome prices were 3.8% up but numbers of units sold was down by 6.2%” Georgia observes. “This reflects the upward movement of younger buyers into single family dwellings in the $450,000 – $550,000 range.” She notes that large numbers of retirees are moving into the area, and that many of the young first-time buyers are relying on parents to help with the initial down payment. “One of the most difficult properties to acquire is a rancher in Sidney.”
I ask her what makes a good realtor. “Experience matters,” she replies. “The realtor has to genuinely care about the client, and do everything possible to net them top dollars for their home. This takes time and money, but is a critical aspect of maximizing the selling price.” Georgia explains that, when she feels it necessary, she will hire a ‘stager’. This is an expert who will improve the look of a house by getting rid of clutter, rearranging furniture and making each room more attractive from the buyers’ point of view. “Sometimes, I will hire a gardener to reveal the property’s potential.”
80% of Georgia’s and Tim’s clients are referrals, which indicates the importance of a good reputation. “A well-priced house should sell within a three month period,” she says, “and real estate should be seen as an important investment.”
“You have to be a people person to work in real estate,” Holly Critchison agrees. Holly is the office manager at Newport Realty. “This is our first year open here in Sidney. I understand all our sales associates have been experiencing a very good year.” While acknowledging “The Sidney/Saanich Peninsula continues to be a destination for retirees, a constant over the years,” she says there have been some welcome changes. “The addition of some family orientated developments, as well as changes to the OCP (Official Community Plan) relaxing the regulations for secondary suites and multi-family developments (duplexes etc.), has opened the market up for younger people a little bit.” But, she makes the point: “It’s still a challenge for many young folk to live in this area.”
One development in recent years has been the way that buyers approach searching for a new home. “The consumers are becoming more educated, having more information, and getting the information instantly. It can be a challenge when a buyer calls you wanting to see a property they heard of before you did. It used to be that a realtor was the holder of all the information in the form of our magic ‘MLS catalogue’, nowadays the public have nearly as much information as the realtors do.”
“The realtors in this office deal with the full spectrum of real estate from new construction to humble homes to palatial estates, it’s ever changing.” Holly smiles: “I find most realtors don’t select it as a career, it sort of selects you.”
