What are Assignments? How do Assignments work? What should we expect from Assignments moving forward?
The Greater Vancouver real estate market has seen a tremendous amount of new construction over the years. With new construction comes assignments.
Essentially an assignment is when a purchaser of a property sells their contract to a new purchase before closing on the property. This can happen in both re-sale and pre-sale markets; however, it is much more common on the pre-construction side of things. Not all developers allow assignments, and some developers that do allow them will not allow them to be made public on MLS. Most developers charge an assignment fee ranging from a few hundred dollars to 5% of the original purchase price.
With changes to the local government policy, taxes and a shifting market we are seeing a lot of assignments come on the market. If you have any questions about assignments feel free to drop us a line down below or text me directly at 604-363-7858
Chapter 1: Know What's Selling
Springtime; typically one of the busiest seasons for Real Estate. I’m incredibly curious to see what the April statistics have in store for us. We see so many posts, on so many mediums, casting a very dark light on the market. Everyone seems to be getting inundated with information without knowing exactly how to perceive what they are taking in. We hear the stories from clients who speak with their coworkers, and the public that attends our open houses, everyone has heard different and conflicting options. So what properties are actually selling successfully in a down market?
The answer is simple. The well priced, quality homes are still selling quickly and for fair market value. We are still seeing quite a few properties receiving multiple offers. In the last 2 weeks, we have been in 4 multiple offer situations, on properties ranging from Kitsilano condos, to a Burnaby townhouse, and even a 2 million dollar detached in Strathcona. For reasons detailed in this post, its the quantity that has greatly decreased; but quality properties are still moving.
Without a doubt, you can certainly feel the shift that has occurred over the last year. We see a great difference in our clients' mentality when they are buying and selling now versus 2 years ago. Buyers and Sellers alike have erred on the side of caution over the last year, and we see that continuing for the foreseeable future. Buyers are taking longer to weigh their options and watch the market. Sellers are reluctant to reduce listing prices with the market downturn, afraid to leave money on the table from the sale of their home.
We see that housing demand isn’t aligned with our growing economy and low unemployment rates. The market trends we’re seeing are largely policy induced. For three years, governments at all levels have imposed new taxes and borrowing requirements on to the housing market. But what policymakers are failing to recognize is that these demand-side measures don’t eliminate demand. That demand is ultimately satisfied down the line because shelter needs simply don’t go away. Using public policy to delay local demand in the housing market just feeds disruptive cycles that have been so well-documented in our region.
The number of homes for sale continues to climb as sellers try to offload their properties in what is traditionally a busy spring market, while buyers hold back. There were 4,949 homes newly listed for sale on the MLS in March 2019. This is an 11.2% increase from March 2018 and 27.2% higher than February 2019. This shows us that the market is picking up as we transition out of winter.
The overall sales-to-active listings ration for all property types is teetering between a balanced market and a buyer’s market, and currently standing at 13.5%. The improvement in sales in March brought this figure back into balanced market territory, which is generally between 12 and 20%.
However, the market varies greatly by property type, as the ratio is 9.4% for detached homes, which is firmly a buyer’s market. It’s a balanced market for townhomes/duplexes/rowhomes at 15.9%, and for condos at 17.2%.
The benchmark price for all residential properties in Metro Vancouver stands at $1,011,200, which is a 7.7% drop from March 2018, and a 0.5% slide in the month since February 2019.
I recently went to the realtor prescreening of the Vista project by Dolomiti Homes in Burquitlam. We have been selling quite a few homes to our clients in the suburban areas surrounding Vancouver, as people are tired of paying a premium for square footage in the city when commuting via skytrain is quick, easy and affordable. Burquitlam is a fantastic example of this. From the skytrain station you can be downtown within approximately 30 minutes and pay a fraction of the price for a home. With tons of development proposed for this area, we are seeing a lot of activity from the developers and inquiries from our clients. The Presale market has seen a slight decrease as well, so we are finding that builders are offering certain incentives for buyers (such as no strata fees for a year, decorating bonuses, etc) you just have to know where to look.
Grand Opening: April 6th, 2019
This particular project is just 8 minutes from the skytrain station, groceries, shops, and services
35 minutes to downtown by skytrain
Walking distance to Lougheed Town Center
Modern 1, 2, and 3 bedroom units available
Over 4,000 sq ft of amenity space
360 degree views from the 3,300 sq ft
ample outdoor space including a childrens play area next to greenspace
Secure underground parking
Starting Price List:
1 Bed - $375,000
2 Bed - $499,900
3 Bed - $693,900
If you have any questions about presale projects around Metro Vancouver, we are here to help. Call us today for details, floorplans, and pricing!