NelsonLocal.com Winter 2010 Newsletter

INSIDE THIS ISSUE:

Yara Joins Valhalla Path Realty
Kootenay Region Year End Statistics
HST & Real Estate Transactions
Tips for Buyers & Sellers
Listing Info

 

Real Estate News in Nelson, BC

Yara Joins Valhalla Path Realty

At the end of 2009, I left Re/max RHC Realty and joined Valhalla Path Realty in Nelson, BC.

“Created in 1993, Valhalla Path Realty is a thriving independent Real Estate company. It represented part of a dream of founder, Berni Eigelshoven, who immigrated to Canada from Europe, eventually settling in the Kootenays where he and his wife built a magnificent home overlooking Valhalla Wilderness Park.

Berni’s goal was to create a Real Estate company that would provide a high calibre of service along with a distinctive personal quality by employing only experienced and dedicated representatives. Berni lost his life in a tragic mountain accident in 2008 but his legacy continues, both in the memories of his friends and family as well as through the unique, independent company he established.

Today, Valhalla Path Realty remains committed to the same high quality service. The Realtors® live, work and play in the Kootenays. They have chosen to raise their families here, conduct their business here, participate in the cultural and recreational opportunities available here and support local businesses and organizations.

We are located in a charming brick heritage building in Nelson’s downtown core. During the warmer months, our private outdoor courtyard provides a relaxing atmosphere for client meetings.”

 

Kootenay Region Year End Statistics

With a slow recovery, the 2009 Kootenay Real Estate market turned out to be decent despite the terrible start.  The 1st quarter of 2009 total MLS(R) Sales were the 2nd worst recorded between 1989 – 2009. There was an overall decline of 8% on the average residential home in the Kootenay Area from $316,600 in 2008 to $291,561.  Below is a breakdown by community.  (figures provided by Kootenay Real Estate Board, deemed to be correct but not liable for error)

Area	2009 Year End Average	2008 Year End Average
Castlegar	$261,617	$276,021
Cranbrook	$289,752	$320,164
Creston	$225,017	$249,657
Elkford	$290,961	$287,140
Fernie	$385,694	$513,899
Fruitvale	$218,839	$265,884
Grand Forks	$206,186	$239,805
Golden	$329,336	$309,509
Greenwood	$155,954	$177,875
Invermere	$387,071	$416,984
Kaslo	$272,973	$291,625
Kimberley	$249,344	$272,123
Midway	$229,235	$168,642
Montrose	$216,578	$242,600
Nakusp	$249,300	$249,972
Nelson	$340,117	$359,711
New Denver	$197,000	$192,750
Radium	$319,156	$340,000
Rossland	$262,973	$314,874
Silverton	$159,450	$480,500
Slocan	$202,800	$167,250
Sparwood	$277,599	$304,939
Trail	$181,096	$202,742
Warfield	$206,295	$183,705

 

 

HST & Real Estate Transactions

Buying and Selling properties in BC will be a bit more expensive as of July 1st, 2010.

REALTORS® are required to collect and remit GST/HST on their real estate commission revenues. So this means instead of a seller paying the old 5%GST on the total commission payable, they will now have to pay the full 13% HST amount on sales taking place after July 2010. (some restrictions and exceptions apply).

If you are considering selling your property before the end of the summer, it is a good time to contact me for a market evaluation to get the ball rolling before the increase tax occurs in July.

GST/HST also applies to most other costs relating to real estate transactions including appraisal fees, legal fees and inspection fees. However mortgage brokerage fees and commissions are exempt from GST/HST. 

General Rules to the new GST / HST on trading Real Estate

Any supply of real property located in Canada is subject to GST/HST unless it is specifically exempted from the tax. The following are the general categories of exempt real property transactions:

• Most residential rentals,
• Sales of used residential housing (unless substantially renovated or last used otherwise than   as a place of residence),
• Sales of personal use land by an individual or an estate,
• Certain sales of farmland to related individuals where the farmland is for personal use, and
• Most supplies of real property by charities, non-profit organizations, universities, colleges, schools and hospital authorities.

Unless an exemption applies, the supply will be subject to HST as GST was. Thus, the following categories of real property transactions are generally taxable:
• Commercial rentals,
• Sales of new (or substantially renovated) residential housing,
• Sales of commercial property, and
• Most supplies of real property by a municipality, province or the federal government.

For more information visit: http://www.bcrea.bc.ca/hst/hstaction.htm

 

Tips for Buyers & Sellers

Buyers
Get pre-approved for a mortgage before you start looking for property.  If you got pre-approved three months ago, it is a good idea to get re-approved with a current low rate.  Typically your approval is only good for up to 90 days.  Being pre-approved and ready to go if you find the right home is important, especially if you are in a competing offer situation.

Make sure your Realtor® is helping you do your homework.  In this market you are in a good position to shop around and find a home with real value.  There is a lot more inventory in most markets allowing you more time to make an informed decision on your purchase.  Get comparable sales before making an offer.

Sellers
Make sure your asking price reflects today’s market conditions.  Many people are still trying to price their homes at prices that may have been acceptable in the height of the seller’s market but today they are out of line.  Thus homes are sitting on the market and losing appeal.

The first few weeks a listing is exposed to an active market is the most crucial in finding a qualified buyer within a reasonable time to facilitate a sale. “Testing the market” is not a good idea.  You may find yourself having to do a number of price reductions when no offers are made and the home will take longer to sell because you missed the initial surge of activity.  Buyers are more educated and there is more listing competition with increased inventory levels.

You should trust your Realtor’s advice in respect to pricing your property adequately, and if you don’t perhaps you should find someone that you trust.  It is not uncommon to have a few people provide you with market evaluations before deciding which Realtor® to hire.

 

Listing Info

You can search for all listings on the Multiple Listing Service website to see a full range of properties throughout the Nelson and surrounding areas.   Listings throughout all of Canada can also be found on these websites.  www.mls.ca or www.Realtor.ca.  Contact me with any questions on all MLS® listings. info@nelsonlocal.com.

If you are considering making a purchase or sale in the area and want some expert advice on the local market, give me shout and visit www.NelsonLocal.com for more information about Nelson BC Real Estate.  I am currently seeking new listings.

 

Don’t forget that I donate $50 of each sale to charity.

Visit http://nelsonlocal.com/charity.html for more details about the Charity program.

 

 

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