As a homeowner in British Columbia, you may be looking for ways to reduce your carbon footprint and save money on energy bills. One practical solution is upgrading to a heat pump. These energy-efficient systems offer numerous advantages over traditional HVAC systems, making them a popular choice in the region. In this blog post, we'll delve into the energy efficiency benefits of upgrading to a heat pump for homeowners in and around British Columbia.

1. Energy Savings and Lower Utility Bills

Heat pumps are known for their exceptional energy efficiency. They work by transferring heat rather than generating it, which means they consume far less energy than conventional heating and cooling systems. By upgrading to a heat pump, you can potentially save up to 50% on your heating and cooling costs, depending on your existing system and local climate conditions.

2. Year-Round Comfort

Heat pumps are versatile, offering both heating and cooling capabilities in a single unit. This means that you can rely on your heat pump to keep your home comfortable throughout the year, regardless of the weather conditions in British Columbia. This dual functionality simplifies temperature control in your home, while also reducing the number of appliances you need to maintain.

3. Improved Indoor Air Quality

Heat pumps are designed with advanced filtration systems that help maintain clean indoor air by removing dust, allergens, and other pollutants. This contributes to a healthier living environment for you and your family, especially in British Columbia, where air quality is a priority for many homeowners.

4. Environmentally Friendly

By opting for a heat pump, you're actively contributing to a more sustainable future. Heat pumps consume less energy, which leads to a decrease in greenhouse gas emissions. Additionally, many heat pumps use environmentally friendly refrigerants, further reducing their environmental impact. This is particularly important in British Columbia, where local communities and authorities are striving to promote eco-friendly living.

5. Rebates and Incentives

In British Columbia, homeowners who upgrade to a heat pump may be eligible for rebates and incentives. These financial incentives are often provided by government programs and local utility companies to encourage homeowners to invest in energy-efficient systems. Be sure to research available incentives and rebates in your area to maximize your savings.

Conclusion

Upgrading to a heat pump offers a multitude of energy efficiency benefits for homeowners in British Columbia. These systems not only provide significant energy savings and lower utility bills but also ensure year-round comfort, improved indoor air quality, and reduced environmental impact. Additionally, local rebates and incentives can make upgrading to a heat pump even more cost-effective. Make the switch to a heat pump today and experience the energy-efficient benefits firsthand.

Victoria, British Columbia, is renowned for its stunning landscapes, commitment to eco-friendly practices, and a strong focus on sustainability. As residents of this beautiful city, we have a responsibility to reduce our carbon footprint and contribute to preserving our natural environment. One effective way to do this is by incorporating energy-efficient appliances into our homes. In this blog post, we will explore the benefits of using energy-efficient appliances tailored to Victoria, BC, and how they contribute to a more sustainable and cost-effective lifestyle.

Reduced Energy Consumption

Energy-efficient appliances are designed to minimize energy usage without sacrificing performance. By using advanced technologies, these devices consume less electricity, reducing the overall energy demand. This is particularly important for Victoria, where the local government and community are striving to lower greenhouse gas emissions and create a more sustainable future for the region.

Lower Energy Bills

For homeowners in Victoria, investing in energy-efficient appliances can result in significant monthly savings on energy bills. By consuming less power, these appliances require less energy, leading to reduced costs. In a region where the cost of living can be relatively high, these savings can make a meaningful difference in household budgets.

Enhanced Performance

Energy-efficient appliances are known for their improved performance compared to their less-efficient counterparts. Innovations in technology and design have allowed for the development of appliances that not only consume less energy but also function more effectively. For instance, energy-efficient washing machines can clean clothes just as effectively as traditional models while using less water and power - an essential consideration in a region where water conservation is crucial.

Climate Leadership Incentives

Residents of Victoria can take advantage of the various incentives offered by the British Columbia government through their Climate Leadership Plan. By participating in these programs, you can save money while also investing in a greener future for Victoria and the province.

Increased Home Value

In Victoria's competitive housing market, investing in energy-efficient appliances can boost the value of your home. Prospective buyers are increasingly seeking eco-friendly homes with lower energy costs. By incorporating energy-efficient appliances into your home, you can potentially increase its market value and make it a more attractive option for potential buyers.

Reduced Greenhouse Gas Emissions

Energy production is one of the leading causes of greenhouse gas emissions, which contribute to climate change. By using energy-efficient appliances, we can significantly decrease these emissions. This is especially relevant in Victoria, where the community is actively working to reduce its carbon footprint and combat climate change.

Supporting Local Green Initiatives

By investing in energy-efficient appliances, you contribute to the overall green initiatives in Victoria. The city is known for its commitment to sustainability, and your support helps encourage the continued growth of eco-friendly practices and the development of sustainable technologies in the region.

Conclusion

The benefits of using energy-efficient appliances in Victoria, BC, are numerous and far-reaching. Not only do they help reduce energy consumption, lower energy bills, and provide enhanced performance, but they also contribute to a more sustainable environment, increased home value, and the potential for government incentives. By embracing the green revolution and investing in energy-efficient appliances, we can actively contribute to preserving the natural beauty of Victoria and ensure a healthier planet for future generations.

As we work to ease out of the pandemic and return to our regular habits, the big question is whether we will see a return to a “more normal” real estate market after more than a year of rapidly growing prices amid a shortage of supply.

Looking back, we can see that the desire to spend more time at home caused increased interest in ownership of primary residences and of local vacation properties.  Initially, the demand was focussed on single family homes but that has now spread to all market segments, with condos picking up steam as well after a soft patch last summer and fall.

Prices, and the number of properties sold, climbed rapidly with single family home values up more than 20% over the last 12 months - and still climbing.  Our internal research tells us that the peak sales volume was likely early May.  We normally see a reduced number of sales over the summer months, and we are seeing that this summer as well. However, with the number of available homes down by more than half from this time last year, the expectation is that prices will stay at record levels.  So far, prices are continuing to climb in all market segments.

With local, national, and international travel starting up, the downtown condo market is likely the next to take off.  With price appreciation of condos at less than half that of single-family homes over the last year, condos appear more and more to be a great buy.  Our province’s excellent track record dealing with the pandemic is expected to drive further migration to our area, with many buyers choosing the easy lifestyle and walkability of our inner harbour district.

If you are waiting for prices to moderate before making a purchase, I’m not sure that I have good news for you.  Over the last fifty years, the annual appreciation of property in Victoria has averaged more than 7% per year, way ahead of the rate of inflation.  With our low inventory and highly desirable area, the post-pandemic desire to “make each day count” is likely to spur more interest in our region than we have seen in the past.  The best advice may be to get the home that you want now, before everyone else arrives.

If you would like to discuss these ideas in more depth, please feel free to give Karl Leong or Mark Roozendaal a call.  We are here to help you make sense of this changing market.

For even more timely updates follow the Preferred Homes Team on facebook or Instagram, and look for our “60 Second Market Snapshot” video released every week on our YouTube channel and on our facebook page.
 
Please consider referring your friends, family, and colleagues our way.  Virtually all of our business comes from referrals and we sure appreciate your help.  In fact, we wouldn’t be in business without you!

In the first five months of 2021, our local real estate market has seen sales volume more than double from the same period last year.  At the same time, prices are up by at least 20%.  However, as we are experiencing record selling prices, record sales volume, and record low inventory levels, a lot of people are wondering how long this can continue.

Our internal research tells us that in the single-family home market we may have already passed the peak of the market.  Compared to previous weeks, sales volume is down, inventory is up, and there are fewer multiple offers this week than last.  The change is slight, but it is starting to look like a trend.  Studying the condo market, we see much the same type of pattern.

However, even with growing inventory, the level of pent up demand is still pushing prices higher. In fact, inventory is so low, down nearly 40% from last year’s already low level, that it will likely take months for any balance to return to the market.

Many point to the brand-new, enhanced stress test as a powerful tool to shape the market.  Yes, it will slightly reduce the buying power of some home shoppers.  However, from our experience, it will make little difference in demand and will instead just push the affected buyers into a slightly lower price range. 

What the market truly needs is an increase in the housing supply.  Unfortunately, this is largely controlled by the municipalities and is never a quick fix.

If you would like to discuss these ideas in more depth, please feel free to give Karl Leong or Mark Roozendaal a call.  We are here to help you make sense of this changing market.

For even more timely updates follow the Preferred Homes Team on facebook or Instagram, and look for our “60 Second Market Snapshot” video released every week on our YouTube channel and on our facebook page.
 
Please consider referring your friends, family, and colleagues our way.  Virtually all of our business comes from referrals and we sure appreciate your help.  In fact, we wouldn’t be in business without you!

Nearly 300% More Homes Sold with Record Low Inventory

No matter how you slice it, this has been a highly unusual year for the real estate industry and for the world.  The pandemic has caused a massive shift in how people think about their home, travel, and how they envision spending time in the future.  For most people, this means increasing the size of their living space, which for many has also become their working space.

The most dramatic number to talk about this month is the 283% increase in the number of homes sold compared to April 2020. It is important to note that April last year was a very soft month for the real estate industry since it was right in the middle of the first lockdown.  Many home buyers initially took a “wait and see attitude” before returning to the market in full force in June.  However, even taking this into account, the current sales volume is historically unprecedented and is not showing any signs of letting up, just yet.

Our internal research also shows us that prices are significantly higher in all product categories compared to last year, even compared to last month.  As recently as a couple of months ago, price growth had been limited to single-family homes and townhomes. Condo pricing had fallen as buyers expressed a preference for their “own front door.”  However, that shift created a price gap that condos are now rapidly increasing to fill.

The number one question that we get is “how long is this going to continue for?”

There is no question that the pace of price increases is not sustainable in the long term. At a minimum, a plateau is sure to come at some point.  Having said that, with inventory slowly increasing, but still down by nearly 40% compared to last year, we need to see a lot more homes listed for sale, at all price levels, before the market levels.  Currently, this inventory shortage is causing nearly two thirds of all single-family homes and more than one third of all condos to sell over the asking price in competitive bids.  Ultra-low mortgage rates are also helping to fuel higher selling prices, enabling buyers to pay more for a home but still end up with a lower monthly payment.

Keep that seat belt on. It’s sure to be an interesting next couple of months.

If you would like to discuss these ideas in more depth, please feel free to give Karl Leong or Mark Roozendaal a call.  We are here to help you make sense of this changing market.

For even more timely updates follow the Preferred Homes Team on facebook or Instagram, and look for our “60 Second Market Snapshot” video released every Tuesday morning.
 
Please consider referring your friends, family, and colleagues our way.  Virtually all of our business comes from referrals and we sure appreciate your help.  In fact, we wouldn’t be in business without you!

In all market segments - houses, condos, and townhomes - prices are on the rise, inventory is incredibly low, and most properties are selling over the asking price. Where three to six months of inventory was historically quite normal, our internal research shows that the inventory of available houses has dropped to a record of low of 21 days of supply this week. Condos are not far behind with only one month of supply. Both of these inventory numbers are still dropping which points to further challenging times ahead for first time buyers and for those hoping to sell one property and buy another. Low interest rates, covid induced demand, and an overall shortage of properties for our growing population are all to blame.

While the single-family home market has been making all the news for rising prices over the last year during our pandemic, condos initially saw falling prices as buyers displayed a strong preference for their own front door. However, as we have mentioned over the last quarter, condos have been rebounding. Condo pricing is now clearly moving higher, with almost one in three condos selling over asking in competitive bids. A condo buyer could benefit significantly by making a purchase sooner rather than later.

For single family home buyers, even though the statistics make it look nearly impossible to secure a home at a “reasonable” price, there may be some respite on the horizon. It’s too early to call it a trend, but last week a smaller percentage of homes sold over the asking price than the week before. It’s a small change so far, but one that we will be watching very closely.

For house sellers, the current market continues to provide outstanding opportunities to sell a property for top dollar, especially for properties that may be challenging to sell in a more balanced market. If you are considering selling this spring, our advice would be to get on the market sooner rather than later. If a slight cooling trend does develop, the market advantage that sellers currently enjoy could quickly wane.

If you would like to discuss these ideas in more depth, please feel free to give Karl Leong or Mark Roozendaal a call. We are here to help you make sense of this changing market.

For even more timely updates follow the Preferred Homes Team on facebook and look for our “60 Second Market Snapshot” video every Tuesday morning.

Please consider referring your friends, family, and colleagues our way. Virtually all of our business comes from referrals and we sure appreciate your help. In fact, we wouldn’t be in business without you!

Our local real estate market continues to favour sellers with a shortage of inventory and plenty of multiple offers. Even with a potential mortgage interest rate hike on the horizon, demand is continuing unabated.

Single family homes continue to lead the market with more than half of all homes selling over the asking price. In the under $1M price range, more two thirds of all homes sell over the asking price. Another important statistic that we track internally is how many months of inventory is available. That figure is shockingly low at 0.9 months, meaning that during each month more than the total number of homes available will sell. To put this in perspective, in the past it was normal to have 6-8 months of inventory available. No wonder buyers are having such a tough time finding a home! Prices are on the rise as well. Although the Home Price Index calculates that prices are up 10.8% from last year, in many areas of Greater Victoria that increase is closer to 14-17%.

The condo market is also picking up steam. Over the last year, as single family home prices moved sharply upwards, condos were left behind and a pricing spread developed. Now, buyers who feel that house prices are out of reach are turning their thoughts to the benefits of condo life, causing this market segment to accelerate. Our internal research shows that the absorption rate for condos has doubled in the last two months, multiple offers situations have increased, and pricing has started to rebound from the dip created by the pandemic. The condo market is still a bargain compared to houses, but may not stay that way for long. If you are considering a condo, now may be the best time to make a purchase.

Looking to the future, we are watching bond yields very closely since they have a direct effect on fixed term mortgage rates. Those yields are now at a fifty-two-week high and this has already started to push mortgage interest rates up. Although variable rate mortgages are not directly affected, if you are considering a fixed rate mortgage, now would be a good time to call your lender to lock in your rate.

If you would like to discuss these ideas in more depth, please feel free to give Karl Leong or Mark Roozendaal a call.  We are here to help you make sense of this changing market.
 


Do you find our monthly updates valuable and informative?  If so, please consider referring your friends, family, and colleagues our way.  Virtually all of our business comes from referrals and we sure appreciate your help.  In fact, we wouldn’t be in business without you!

CMHC has released their rental market report for Canada. Rent rates in Victoria are up 3.3%.  Combined with capital appreciation, investing in rental properties continues to be a sold bet. 

Click here to read the full report.

As we continue into 2021, the robust market that we experienced through most of 2020 continues unabated.  Record low interest rates and a serious shortage of inventory is creating an increasing number of multiple offer situations, especially on single family homes. 

However, condos are also starting to feel the heat.  As house prices rise out of reach for many buyers, our internal research is now showing a rapid increase in competition for condos, especially in the last week.  We expect this trend to continue and intensify rapidly.  Consider this fair warning to condo buyers to act quickly.

How you feel about these market conditions clearly depends on whether you are a buyer or a seller. For sellers, there is an immense opportunity right now to sell at the highest prices that we have seen, especially for difficult to sell homes.   Inventory could eventually build and moderate demand, but until that happens, there is a great short term opportunity. 

For buyers, the market is extremely frustrating, and often heartbreaking, as dream homes receive multiple offers, often without conditions.  Although it can be tempting to simply give up, working hard to secure a home before prices rise further could end up being the winning move.  Buyers are strongly encouraged to make sure that their financing pre-approval is in perfect shape and to consider conducting a building inspection prior to writing an offer.  With so much competition for each home, a strong offer with few or no conditions often wins the prize. 

Although this market may feel unprecedented, it really isn’t.  As recent as the spring of 2017 we experienced similar low inventory levels with an even higher percentage of multiple offers.  Whether buying, selling, or both, you can rely on our experience to guide you these market conditions.

Happy New Year everyone!  Karl, Sydney, and I would like to wish you all the best in 2021. 

For many of us, the value of our home or investment property has a lot to do with whether 2021 is going to be a good year or not.  For others, they simply want to get into the market for the first time. 

Will we find the new home that we are looking for in this hyper-competitive market?  Should we buy an investment property?  And what are prices projected to do in the coming months?  These are questions that we receive each and every day.   Although we cannot predict the future - we wish that we could – we can share with you what we do know to help you make the best real estate decisions in 2021.

2020 started with a very robust market.  Volume in January and February was up nearly 30% compared to 2019.  That all changed in March when it was clearly apparent that the pandemic was going to be a major issue.  Many were predicting that property prices would plummet, and that the sales volume would collapse.  Even in May 2020, CMHC predicted a 9-18% drop in property values.  They couldn’t have been more wrong.  Although the number of properties sold in April and May hovered at about half of normal, by June volume was skyrocketing, making up for lost time and more.  Residential sales in December, normally a relatively quiet month, were up 54% compared to last year. 

Overall, the number of homes sold in 2020 was up by over 18%.  That increase in demand has pushed prices for single family homes in our region up by 10%.  Condo prices, on the other hand, suffered, and ended 2020 where they started.  The pandemic has clearly created a desire among buyers, who can afford it, to have their own front door.  Moreover, the lowest mortgage interest rates in recent history have increased affordability and have thrown more gas on the fire.

As we start 2021, the brisk pace of sales has left the market crippled with an unsustainably low inventory of available homes. More than one in three single-family homes in the last month had to be fought for in a multiple offer situation.  The lower the price range, the more frequent the multiple offer situation.  Even the condo market which was at best “balanced” for most of the year, is now showing signs of increasing competition and insufficient inventory. 

For buyers, the good news is that the spring market usually brings far more inventory to the market.  High property prices could help increase inventory, as builders are incented to bring more homes to market and investors release other homes for sale.  Buyers should expect competitive conditions to continue for the next quarter, at least. 

Potential home sellers should give serious consideration to taking advantage of the current extremely low inventory of homes for sale.  Although many buyers prefer to wait until the spring to list their home, it could be easily argued that now, when there is almost no competition, is going to be the best time to sell a home.