Langley Real Estate Blog

What is a Subject to Sale Offer?

A subject to sale offer allows a buyer to purchase a property on the condition that they first sell their existing home. This prevents them from being financially overextended or left without a place to live.

Example of a Subject to Sale Offer

Consider a homeowner looking to upgrade to a larger home. They are concerned about selling first and not finding a new home in time. To mitigate this risk, they include a subject to sale clause in their offer, making their purchase conditional on selling their current home.

Pros and Cons

Pros

• Provides security, ensuring you don’t sell without securing a new home.

Cons

1. Higher Purchase Price & Lower Selling Price: Sellers may be less flexible on price, and buyers under pressure to sell may accept lower offers.

2. Bump Clause Risk: If another buyer submits an offer without this condition, you may have 24-72 hours to waive your conditions, potentially losing the home.

3. Financial Costs: Home inspections and appraisals are most likely non-refundable if the deal falls through.

Key Considerations

• Your home must be ready to list immediately after your offer is accepted, time is very much of the essence.

• Many sellers require a tight deadline for your sale.

• Have a backup plan (temporary housing rental, staying with family or friends) in case your home sells first.

A Better Approach?

Many buyers list their home first and wait for an accepted offer before making an offer on a new home. This strengthens their position, improves negotiations, and reduces financial risks.

Final Thoughts

Preparation is key to making the buying and selling process smooth. Understand the pros and cons, plan ahead, and consult  with us to make the best decision for your situation.

Looking for more details? Check out our podcast https://www.youtube.com/watch?v=vkm_oN2isTI&t=2s

Buying a first home is a major financial step, and government programs are available to help ease the burden for new buyers in Canada. Understanding these programs can make homeownership more affordable and accessible.

Property Transfer Tax Exemptions for First-Time Buyers

The First-Time Home Buyers' Program in British Columbia helps reduce or eliminate the property transfer tax when purchasing a first home. Eligible buyers may qualify for a full or partial exemption, potentially saving thousands of dollars.

To qualify, a buyer must:

• Be a Canadian citizen or permanent resident

• Have lived in B.C. for at least one year before registering the property or have filed two B.C. income tax returns in the last six years

• Have never owned a property used as a principal residence anywhere in the world

• Have never received a first-time home buyer exemption or refund

The property must also:

• Be used only as a principal residence

• Have a fair market value of $835,000 or less (effective April 1, 2024)

• Be 0.5 hectares (1.24 acres) or smaller

• Contain only residential improvements

How Much Can a First-Time Buyer Save?

If all requirements are met, the buyer is exempt from property transfer tax on the first $500,000 of the home’s value. A partial exemption applies to homes valued between $835,000 and $860,000, as well as properties that exceed size limits or have additional buildings.

New 30-Year Amortization for First-Time Buyers of New Builds

To further support first-time homebuyers, the federal government has announced a 30-year amortization period for insured mortgages on newly built homes, effective August 1, 2024.

This change is designed to:

• Lower monthly mortgage payments

• Improve affordability for younger buyers

• Encourage new housing construction

This initiative is part of the Canadian Mortgage Charter, which aims to make homeownership more accessible while also protecting mortgage holders facing financial difficulties. It builds on other programs, such as the Tax-Free First Home Savings Account, which has already helped more than 750,000 Canadians save for a down payment.

Conclusion

With rising housing costs, these programs provide first-time buyers with critical financial relief. Understanding available tax exemptions and mortgage options can make homeownership a more achievable goal. Those considering purchasing a first home should consult with a real estate or financial expert to determine their eligibility and explore the best path forward.

Some details provided by : https://www.canada.ca/en/department-finance/news/2024/07/government-announces-30-year-amortizations-for-insured-mortgages-to-put-homeownership-in-reach-for-millennials-and-gen-z.html 

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers

As we move through 2024, it’s important to stay on top of key tax deadlines to avoid penalties and maximize tax planning opportunities. Here are the crucial dates you should keep in mind for the year.

Key Deadlines for Q1 2024

February 28

• Proposed extended deadline to make charitable donations for the 2024 tax year (pending approval).

• Deadline for corporations with a December 31 year-end to pay the balance of income tax due (for Canadian-Controlled Private Corporations meeting specific criteria, the balance is due three months after year-end).

• Deadline to issue T4, T4A, T5, RL-1, RL-2, and RL-3 income tax slips.

March 1

• Deadline to contribute to your RRSP to claim a deduction for the 2024 tax year, including Home Buyers’ Plan/Lifelong Learning Plan repayments.

• The 2024 RRSP limit is $31,560.

March 15

• First quarterly personal income tax installment is due.

March 31

• Deadline to file most trust income tax returns.

• Deadline to issue most T3, RL-16, NR4, and T5013/RL-15 income tax slips.

• Deadline to file most partnership income tax returns.

Key Deadlines for Q2 2024

April 15

• Deadline to file 2024 U.S. individual income tax returns or request a six-month extension and pay any tax due.

• Deadline to file 2024 U.S. Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114) for U.S. persons (automatic six-month extension applies).

April 30

• Deadline to file personal income tax returns for most individuals and pay any balance due for 2024.

• Deadline for residential property owners affected by the Underused Housing Tax (UHT) to file returns and pay any tax owing.

June 15

• Second quarterly personal income tax installment is due.

• Deadline to file personal income tax returns for self-employed individuals and their spouses/common-law partners.

• Deadline to file GST/HST returns for self-employed individuals with a December 31 year-end.

• Deadline to file U.S. individual income tax returns for U.S. citizens or resident aliens residing abroad and U.S. non-residents with no withholding tax.

June 30

• Deadline to file corporate income tax returns for corporations with a December 31 year-end.

Key Deadlines for Q3 & Q4 2024

September 15

• Third quarterly personal income tax installment is due.

December 15

• Fourth quarterly personal income tax installment is due.

December 30

• Last trading day for tax-loss selling planning in 2024.

December 31

• Deadline to contribute to a First Home Savings Account (FHSA) to claim a deduction for the 2025 tax year.

• Deadline to make charitable donations for the 2025 tax year.

• Deadline for RESP and RDSP contributions to receive government grants.

• Deadline to contribute to your RRSP if you turn 71 in 2024.

• Deadline to convert your RRSP to a RRIF if you turn 71 in 2024.

• Deadline to close your FHSA if you turn 71 in 2024.

Final Thoughts

While these deadlines serve as general reminders, each taxpayer's situation is unique. It is always advisable to consult a tax professional to discuss your specific needs and ensure compliance with the latest tax regulations.

Stay organized and ahead of your tax obligations to maximize your financial opportunities in 2025!

Details provided by - https://www.scotiawealthmanagement.com/ca/en/resource-centre/scotiawealth-important-tax-dates.html

January 31, 2025 - Ottawa, Ontario
The federal government has delayed the increase in the capital gains inclusion rate from June 25, 2024, to January 1, 2026. Announced by Finance Minister Dominic LeBlanc, this move provides Canadians with more certainty ahead of tax season.

Key Changes and Exemptions

1. Principal Residence Exemption

   • Canadians selling their primary home remain exempt from capital gains tax.

2. New $250,000 Annual Threshold (Effective 2026)

   • Individuals earning gains under this limit continue to benefit from the current one-half inclusion rate.

   • Applies to secondary properties, e.g., a couple selling a cottage with a $500,000 gain faces no extra tax.

3. Increased Lifetime Capital Gains Exemption

   • Rising to $1.25 million (from $1,016,836) on June 25, 2024.

   • Small business owners, farmers, and fishers with eligible gains under $2.25 million benefit.

4. New Canadian Entrepreneurs’ Incentive

   • Lowers the inclusion rate to one-third on up to $2 million in gains.

   • Begins in 2025, increasing $400,000 annually, reaching $2 million in 2029.

   • Combined with the $1.25 million exemption, tax benefits apply to $6.25 million in gains.

Next Steps

The government will introduce legislation to formalize these changes. The increase in the Lifetime Capital Gains Exemption and the Canadian Entrepreneurs’ Incentive remains on schedule.

Minister’s Statement

“The deferral of the increase to the capital gains inclusion rate will provide certainty to Canadians, whether they be individuals or business owners, as we quickly approach tax season. Given the current context, our government felt that it was the responsible thing to do.”

This decision aims to balance tax policy with economic growth, ensuring fairness for middle-class Canadians and business owners alike. Stay tuned for legislative updates.

Information provided by - https://www.canada.ca/en/department-finance/news/2025/01/government-of-canada-announces-deferral-in-implementation-of-change-to-capital-gains-inclusion-rate.html

Smart homes are no longer a luxury; they’re becoming a standard in modern living. From energy savings to enhanced security and convenience, smart home technology is revolutionizing the real estate market. Here’s why you should consider smart features when buying or selling a home.

What is a Smart Home?

A smart home uses internet-connected devices to control various systems, like lighting, heating, security, and appliances. These devices can be controlled remotely through apps or voice assistants, making everyday tasks more efficient.

1. Convenience and Comfort

Smart homes offer unmatched convenience. Imagine walking into your house and having your lights turn on automatically, your thermostat adjust to your preferred temperature, and your security system activate—all without lifting a finger. Smart devices like thermostats, locks, and lights make everyday life easier and more comfortable, and are increasingly becoming a must-have for homebuyers.

2. Energy Efficiency and Cost Savings

Smart thermostats learn your schedule and adjust temperature settings to save energy, while smart lighting ensures lights aren’t left on unnecessarily. This helps homeowners cut down on energy costs. Additionally, these systems can integrate with solar panels or battery storage for even greater savings and sustainability.

3. Increased Security

Smart home security systems, including doorbell cameras, motion sensors, and smart locks, provide real-time alerts and remote monitoring. Homeowners can keep an eye on their property from anywhere, offering peace of mind when it comes to safety.

4. A Smart Investment

Homes with smart technology often have higher resale value. As more buyers seek homes equipped with the latest tech, investing in smart devices can make your property stand out. For buyers, purchasing a smart home means fewer upgrades and long-term savings on energy and security.

5. Personalization

Smart homes are highly customizable. You can control lighting, temperature, and security based on your routine. This level of personalization adds comfort and convenience to everyday life, making it an appealing feature for homeowners.

Conclusion

Whether you're buying or selling, smart home technology adds value and functionality to any property. From energy efficiency to improved security, the benefits are clear. As the demand for tech-savvy homes grows, now is the perfect time to explore the potential of smart living in the real estate market.

Purchasing a condo or townhouse is an exciting milestone, but before you take the plunge, there’s a crucial step you can’t skip: reviewing the strata documents. While it may seem daunting, understanding these documents is essential to making an informed decision about your new home. They offer a window into the building's financial health, rules, and management, all of which can impact your future living experience.

What Are Strata Documents?

Strata documents include a variety of records that provide insight into the building’s operations. Some of the key documents you'll want to review include:

• Financial Statements: These reveal how well the building is managed financially, including the budget, reserve funds, and current debts.

• Bylaws and Regulations: These outline the rules you'll need to follow, covering everything from pet policies to renovation restrictions.

• Maintenance and Repair Reports: These documents show the history of building upkeep and any upcoming maintenance plans that could affect you.

• Meeting Minutes: Minutes from annual or special meetings can help you understand the building’s general atmosphere and any major issues or future projects.

What to Look For

1. Financial Health: Ensure the strata has a consistent budget, healthy reserve funds, and no signs of financial distress. Underfunded reserve funds or frequent special levies can be red flags, indicating that future assessments could be costly.

2. Bylaws and Regulations: Make sure the rules align with your lifestyle. For example, if you're a pet owner, check for pet restrictions. If you plan to renovate, ensure the bylaws allow it.

3. Maintenance and Repairs: Look at past and future repair plans to gauge how well the building is maintained and whether any major expenses are coming down the pipeline.

4. Meeting Minutes: These can give you valuable insight into the mood of the building’s community, recurring issues, and upcoming projects.

Common Red Flags

• Underfunded Reserve Fund: This could mean significant future costs will be passed on to owners.

• Frequent Special Levies: Indicates poor financial planning or unexpected expenses.

• Ongoing Litigation: Legal issues could create financial instability for the strata corporation.

Conclusion

While reading and understanding strata documents may seem overwhelming, taking the time to go through them can give you a clear picture of what life in that condo will be like. From financial health to building maintenance, these documents hold the key to understanding the potential risks and rewards of your investment. So, take a deep breath, dive in, and arm yourself with the knowledge you need to make a well-informed decision.

Some Details Provided by - https://www.stratareports.ca/blog/how-to-read-and-understand-strata-documents-before-buying-your-next-condo

If you're looking to purchase real estate in Metro Vancouver, you may find yourself deciding between a leasehold or a freehold property. Both options come with their own set of pros and cons, but it’s crucial to understand what each term means and how it affects your investment and future plans.

What’s the Difference?

A leasehold is an agreement where you own the property (like a home or condo) for a fixed period, typically between 20 and 99 years, but not the land beneath it. Essentially, you’re leasing the land from its owner, which can be a university, government, private entity, or Indigenous group. Once the lease expires, ownership of the land reverts back to the landlord. For example, if you buy a property on a 99-year lease with 50 years remaining, you only get the remaining 50 years.

Leasehold properties are generally less expensive than freeholds because they don’t include land ownership, which is a big part of the property’s value. However, the tradeoff is that leasehold properties don’t appreciate as much over time, and as the lease shortens, the value of the property can decrease, making it harder to resell.

On the other hand, a freehold means you own both the property and the land it's on, with no time limit on your ownership. Freehold properties are more expensive but are usually a safer long-term investment, as they appreciate more consistently and you aren’t at risk of lease expiration or renegotiation.

The Uncertainty of Leaseholds

A big downside of leasehold properties is the uncertainty that comes with a lease nearing its end. The landowner isn’t required to renew the lease, and if they do, it could come at a much higher cost. As the lease gets closer to its expiration date, buyers may find the property’s value decreasing, which can make it harder to secure financing or find a buyer when it’s time to sell.

Also, keep in mind that leaseholds are not governed by the Residential Tenancy Act (RTA), which covers rental properties in BC. Instead, they’re governed by specific lease agreements, so your rights and responsibilities differ from those of a typical tenant.

Which is Right for You?

While leaseholds can be more affordable upfront, they come with potential risks, especially as the lease runs down. Freeholds, though pricier, offer more stability and long-term value. If you’re looking for a home to stay in for the long haul, a freehold might be your better bet.

In Metro Vancouver, you’ll find leasehold properties around areas like SFU and UBC campuses or on First Nations land. These can be great options for some, but it’s crucial to understand the terms of your lease, how much time is left, and what your rights are as a leaseholder before making a decision.

In the end, whether you go for a leasehold or freehold depends on your priorities—affordability and short-term flexibility versus long-term security and ownership. Just make sure you know what you’re getting into.

Some details provided by- https://dailyhive.com/vancouver/leasehold-freehold-metro-vancouver?utm_campaign=Newswire_Real%20Estate%20Insider&utm_medium=email&_hsenc=p2ANqtz-_zKaaPpv-_nlgTbmRfYdQ60Iqdx8qQdI869OG7bU4TkRnIDqCOBbV4U4MBpGorNyYWJp_J44G7ktR70Nmuf0_fqn4wsQ&_hsmi=344322975&utm_content=344322975&utm_source=hs_email

When buying a home, most people focus on the property’s physical condition and location. But sometimes, what has happened in or near the home can have a lasting impact on its marketability—regardless of how perfect the house seems otherwise. These properties are known as "stigmatized" properties, and their value can be significantly affected by non-physical events tied to their history.

What Makes a Property Stigmatized?

A stigmatized property is one that has been impacted by an event that affects how buyers perceive it, even though the property itself is in good condition. These events don’t usually affect the property’s structure or use, but they can make it less desirable.

Examples include:

• Criminal activity: A home next to a reputed gang member’s house.

• Violence or death: A murder, suicide, or other violent crime associated with the property.

• Unusual occurrences: The property being rumored to be haunted or previously used for illegal activities.

Although these events don’t change the property’s physical condition, they can deeply affect how buyers feel about living there.

Why Do Stigmatized Properties Lose Value?

The stigma surrounding certain events or circumstances can have a powerful psychological effect on potential buyers. Even if a property is in excellent shape, buyers might not want to live in a home with a violent or unsettling history, particularly if the event was widely publicized. For some, a tragic past might be a dealbreaker, while others might be more open-minded—or even intrigued by the property’s story.

The perception of stigma varies from buyer to buyer. For example, a house with a history of ghost sightings might scare some away, while others may find the supernatural element a unique charm that adds character to the property.

The Subjectivity of Stigmatization

What one buyer finds off-putting, another might see as a selling point. For example, some buyers may be perfectly fine with the fact that a murder occurred in the house, while others might consider it a dealbreaker. This subjectivity makes it challenging to determine whether a property is stigmatized and how it will affect the market value.

This unpredictability also makes it hard to decide whether sellers should disclose these events. After all, revealing the property’s history could lower its value, but keeping it a secret may lead to legal trouble later on.

Legal Considerations

In places like British Columbia (BC) and Ontario, there’s no specific law requiring sellers to disclose stigmatizing events. However, in some areas like the U.S. and Quebec, there are disclosure requirements.

While these laws vary, they highlight the importance of understanding how psychological factors can impact a property’s sale. Even if there’s no legal requirement, sellers should consider how a property’s past might influence potential buyers' decisions.

Conclusion

Stigmatized properties are a reminder that, in real estate, perception can be just as important as physical condition. While the house may be in top shape, its history—whether tied to crime, death, or rumors—can make a significant impact on its value and desirability. Whether you’re buying or selling, understanding the emotional and psychological factors at play is key. After all, what’s considered a "haunted" house to one person might be the dream home for someone else.

Details courtesy of - https://bcrealestatelawyers.com/knowledge-centre/legal-issues-faqs/stigmatized-properties/

The B.C. Real Estate Association (BCREA) reports that the province’s housing market ended 2024 on a strong note, setting a positive outlook for 2025. The latest data shows a significant 24.7% increase in residential unit sales in December compared to the same month in 2023, with 4,484 homes sold. At the same time, the average price of a home in B.C. rose to nearly $1.1 million, marking a 5.6% year-over-year increase. This uptick in both sales and prices indicates a market that’s gaining momentum as it moves into the new year.

Brendon Ogmundson, BCREA's chief economist, highlights that active listings have increased by almost 17%, which is the highest start-of-year inventory level in B.C. since 2019. This increase in listings means that buyers now have more choices available to them, helping to balance supply and demand. "There are enough listings in the market right now to absorb that extra demand without prices rising too much," Ogmundson told CBC News. This stable inventory, combined with a steady demand, sets the stage for a more balanced housing market in 2025. The Canadian Real Estate Association (CREA) also predicts a solid year ahead, with home sales in B.C. expected to see an 8.6% increase, largely driven by a recovery in the province’s housing inventory.

Despite the positive outlook, affordability remains a challenge for many in B.C. Even as interest rates have begun to decrease, they’re still coming off a high base, which means home prices have not fully adjusted to the earlier rate hikes. University of British Columbia business professor Thomas Davidoff points out that while falling interest rates are a welcome relief for buyers, the overall affordability crisis persists. As the market stabilizes and demand continues to grow, B.C.'s housing affordability will continue to be a key issue to watch in the year ahead.

Though the housing market is entering a period of relative stability, there are still external factors that could disrupt this equilibrium. Ogmundson has expressed concerns about potential tariffs or other trade-related issues from south of the border, which could impact B.C.'s housing market by raising construction costs and affecting supply chains. For now, however, the market remains in a relatively balanced state, providing some relief for buyers, though challenges remain in the form of high prices and the ongoing affordability crisis.

Details courtesy of - https://www.cbc.ca/news/canada/british-columbia/b-c-housing-market-forecast-2025-1.7435419

When you purchase or gain an interest in property that is registered at the Land Title Office, you or your legal professional must file a property transfer tax return and pay the applicable property transfer tax, unless you qualify for an exemption. The property transfer tax is based on the fair market value of the property (land and improvements) at the time it was registered. The tax is calculated using a tiered rate: 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, and 3% on amounts above $2,000,000. However, if you are a foreign national, foreign corporation, or taxable trustee, an additional property transfer tax applies on the residential portion of the property if it is located in a specified area of B.C. The first-time home buyers' program may reduce or eliminate the amount of property transfer tax you owe when purchasing your first home. To qualify for an exemption, you must be a Canadian citizen or permanent resident and meet one of the following criteria: have lived in B.C. for at least a year immediately before the registration date, or have filed at least two income tax returns as a B.C. resident in the last six taxation years before the registration. Additionally, you must have never owned a registered interest in a property that was your principal residence anywhere in the world and have never received a first-time home buyers' exemption or refund. The property itself must be used exclusively as your principal residence, have a fair market value of $835,000 or less (effective April 1, 2024), be 0.5 hectares (1.24 acres) or smaller, and contain only residential improvements. If one or more purchasers do not qualify, only the percentage of interest owned by the qualifying first-time home buyer(s) is eligible for the exemption. For example, if you acquired 60% interest in the property and another person acquired 40% interest, but only you meet the qualifications, only your 60% would be exempt. It’s also important to note that property transfer tax is distinct from annual property taxes, which are paid to your municipal or rural tax office to fund local services. The fair market value refers to the price a willing buyer would pay a willing seller for the property in the open market on the registration date. The government provides an online calculator to help estimate your property transfer tax, which should be factored into your closing costs.

Details provided by - https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers + https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax

So you got your BC Assessment in the mail last week and you don't like the number you see. Do you have any options as the homeowner, what can you do?  Well before filing a complaint or appeal regarding your property assessment, it's recommended that you first review your assessment and compare it with the sales data of similar properties using the Assessment Search tool. (Or contact CJ or Garry and we can help pull sales data for you.) This will help ensure that your assessment is accurate. If you still have concerns, You are encouraged to contact BC Assessment for clarification before formally submitting a Notice of Complaint (Appeal). The deadline for filing a complaint or appeal for the 2025 assessment is January 31, 2025.

Many concerns can often be addressed through direct discussions with the staff, outside of the formal complaint process. If, after contacting BC Assessment, you remain unsatisfied, you have the option to proceed with the formal appeal process for an independent review of your assessment. You can reach them by phone at 1-866-VALUEBC or use the Contact Us form for electronic assistance. If you prefer in-person service, you can schedule an appointment by contacting the same number. The first level of appeal is to the Property Assessment Review Panel (PARP), with a filing deadline of January 31, 2025. If you wish to pursue the matter further, the second level of appeal is to the Property Assessment Appeal Board (PAAB), which has a filing deadline of April 30. Please note that you must file with the PARP before escalating your appeal to the PAAB. For more information on the process and preparing for a hearing, please consult the Appeal Guide or visit the Ministry of Finance website.

Data courtesy of BC Assessments  - https://info.bcassessment.ca/Services-products/appeals

Showing Signs Of Recovery

The Canadian housing market is showing signs of recovery, with pent-up demand expected to drive more home sales in the coming months. However, TD economist Rishi Sondhi warns that this surge in activity won’t last indefinitely, projecting that the rush will likely subside by the first half of next year. While the initial wave of demand should push housing prices higher, Sondhi notes that large supply backlogs, particularly in Ontario and British Columbia, will continue to weigh on the market and take time to resolve. As demand outpaces supply, home prices are likely to rise in the short term.

New Mortgage Rule Changes And Interest Rates

Additionally, there are factors that could further support the housing market in the coming months. Falling interest rates and recent federal mortgage rule changes, which took effect on December 15, are expected to give a boost to both home sales and prices. Among the key changes are an increase in the maximum mortgage amortization period for first-time buyers from 25 years to 30 years, as well as a rise in the insured mortgage cap from $1 million to $1.5 million. These measures, coupled with the potential for continued economic growth, should help sustain the housing market’s momentum. According to TD’s forecast, home sales across Canada are expected to rise by 16 percent in 2025, while the average home price could increase by 8 percent.

For homebuyers, recent policy changes have improved affordability, particularly in light of the national banking regulator’s decision to eliminate the stress test for uninsured mortgages. As of September, the Office of the Superintendent of Financial Institutions no longer requires lenders to apply the minimum qualifying rate when borrowers switch their mortgages to a different institution, provided their loan amount and amortization schedule remain unchanged. Ratesdotca’s mortgage expert Victor Tran believes these changes will contribute to a hot spring market in 2025, as more buyers take advantage of the improved conditions.

In Vancouver, housing affordability is showing slight improvement, although challenges remain. The Royal Bank of Canada’s December 2024 report notes that rising household incomes have helped ease some of the affordability strain, and home prices in the region are stabilizing. However, despite these gains, affordability in Vancouver remains an issue, with 96.7 percent of the median household income required to cover homeownership costs in the third quarter of 2024. This is in stark contrast to other Canadian cities, such as Calgary (42.2 percent), Edmonton (33.6 percent), Ottawa (47.3 percent), and Montreal (49.4 percent). While the Bank of Canada is expected to cut interest rates further in 2025, which could lower homeownership costs, RBC’s Robert Hogue cautions that any significant price increases in Vancouver would be a setback, making it even harder for average households to afford a home.

Overall, while the Canadian housing market is poised for a stronger 2025, the recovery will be uneven, with regional disparities in affordability and supply challenges continuing to shape the landscape. The interplay of interest rates, federal policy changes, and local market dynamics will play a key role in determining how the market evolves in the months ahead.

Want to know how this impacts you as a buyer or seller? Give me a call or email today, and I’ll help you understand how this affects your personal real estate situation.

Call/Text Garry

Email Garry

Details provided by The Canadian Press & Business Intelligence for BC 

https://www.bnnbloomberg.ca/business/real-estate/2024/12/30/housing-market-poised-for-2025-comeback-as-lower-rates-unleash-pent-up-demand/

https://www.biv.com/news/real-estate/homeownership-costs-ease-a-little-in-vancouver-but-affordability-still-elusive-says-rbc-10025840#:~:text=RBC%20anticipates%20a%20two%2Dper,Hogue%20said%20in%20the%20report.