Vancouver Real Estate Market Trend in 2018 YOUR

Vancouver Real Estate Market Trend in 2018 YOUR LIFELONG 부동산 전문가 JESSIE HEO (허보영) RESIDENTIAL & COMMERCIAL CERTIFIED NEGOTIATION EXPERT (ENGLISH/한국어/日本語） 778 -707 -4330

Residential Average Sale Prices(Jan. 1977 - Nov. 2017)

2007 to 2017 HPI Price Changes

The Law of Supply & Demand Low supply -> Price upwards

Absorption Rate in Months Ex) In Nov. 2017, 699 listings and 380 sold. Absorption rate : 699/380 = 1. 8 months supply -> Seller’s Market

Sales-to-Active Listings Ratio Seller’s Market : 20% or up Balanced Market : Between 12 -20 % Buyer’s Market : 11% or lower Example: 10% means 1 in 10 homes selling rate (indicative of a Buyers market. )

House Prices Determinants – Why Vancouver?

Immigration -Main Factor for Household Growth

Mortgage Rates to Remain Low

Job Creation has been Strong and Mostly Full-time

Lower Active Listing due to a Surge in Sales

Vacancy Rate in 2017 Fall

Price Trends & Policy Changes in the Past 2. 5 Years

Vancouver’s Two Speed Market (Current)

Two Speed Market Extends to Fraser Valley (Current)

Price Acceleration Rates

Report – Vancouver West (Nov. 2017)-1

Report – Vancouver East (Nov. 2017)-1

Report - Vancouver West (Nov. 2017)-2

VANCOUVER

Mortgage

Vacancy Rate

JESSIE HEO

New Households Drive Housing Demand

New Multiple-Family Supply to Market by Developers

Record Number of Units under Construction in 2017

How to Calculate your Mortgage Amount

Mortgage Now vs. Mortgage in 2018 -> New Mortgage Stress Test Almost 20% difference of your buying power!!

BMO Bank – Mortgage Pre-approval -> Obtain mortgage Pre-approval by Dec. 31, 2017 (6 months Holding O. K)

Various Types of Mortgage (상황별 프로그램)

Mortgage Rate Forecast made in Sep. 2017 5 -Year Qualifying Rate on Dec. 11, 2017 -> 4. 99% Average 5 -Year Mortgage Rate Now -> 3. 19% – 3. 39% (Depending on the bank)

Housing Market Outlook

NDP Government /City of Vancouver Policy Changes 1. Provincial Government’s housing plan (Goal : 114, 000 new rental homes in 10 years) - Empty Home Tax : 2% - New Tenancy Agreement : - Favor to renters : ex) $400 renter’s rebate 2. City of Vancouver Government (Goal : 72, 000 New homes in 10 years) -> Vacancy Tax – only in City of Vancouver (exclude : UBC) -> 1 % of assessed value -> Empty-Home Tax Declaration Form by Feb. 2, 2018 -> Buyers beware! -> Air B&B : Short term rental only allowed in principal residents (April 2018)

Vancouver Housing Market Outlook Summary Where are we heading?

B. C. ’s Top 10 Cities for Real Estate Investment

Property Transfer Tax (PPT/취득세 면제) New Properties (Presale 분양건) -> Up to $750, 000

Home Buying & Selling Process

Thank you so much for coming. Happy Holiday & Happy New Year! Wish you all the best in 2018!!