NANAIMO, BC – Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for July 2010, shows continuing declines in both unit sales volume and inventories of properties listed for sale.

There were 347 sales of single family properties in the VIREB area through the Multiple Listing Service® (MLS®) in July 2010, down 35% from 536 sales in July 2009.

Single family properties listed for sale in July 2010 were also down by 12 per cent from the end of July 2009.

“July 2009 was a bit of an anomaly having higher than normal sales volumes than that of previous years,” says Cliff Moberg, President of VIREB. “I think the is conception out there is that the HST applies to existing home sales, which it does not.”

The 12-month average sale price across the VIREB region for July 2010 was $342,982; a 1 per cent increase from the $340,382 posted at the end of July 2009.

“We have to remember that average price information can be useful in establishing trends over time, but does not indicate the actual individual prices,” says Moberg.

For the 12-month period from the end of July 2009 to July 2010, average sale prices across VIREB’s six zones rose in all but two markets: Campbell River increased 4 per cent (to $303,056), the Comox Valley inched up 1 per cent (to $349,033), Nanaimo is up 5 per cent (to $382,6725), Parksville/Qualicum grew 2 per cent (to $377,506), Port Alberni dropped 18 per cent (to $194,765) and the Cowichan Valley was down 6 per cent (to $327,549).

Jim Stewart, president-elect of VIREB sites consumer confidence as a continuing market driver, as well as affordability when compared to the Victoria and Vancouver markets.

“Overall the market is showing its stability. Prices are expected to remain constant for the remainder of the year and increase slightly heading into 2011,” he says noting the market is settling back on par with historical trends during the summer months.

The average sale price across the VIREB region for June 2008 was $345,118. This is a 5 per cent increase from the $329,638 posted at the end of June 2009.

Jim Stewart, President Elect of VIREB says the market is returning to a balanced state. “Our inventory levels are continuing to grow despite the fact that our sales volumes have dropped somewhat showing less upward pressure as the market moves forward.”

For the period from the end of June 2009 to June 2010, average sale prices across VIREB’s six zones: Campbell River saw an increase of 12 per cent (to $298,126), the Comox Valley is up 7 per cent (to $362,222), the Cowichan Valley slipped 5 percent (to $350,024) while Nanaimo is up 7 per cent (to $362,018), Parksville/Qualicum inched up 1 per cent (to $396,488), and Port Alberni grew 27 per cent (to $242,752)

“2010 started out strong as the market began to recover from the recession and has now begun to level out going into the second half of the year. Due to supply and demand, what this means for sellers is proper pricing is essential and buyers have more to choose from.” adds Stewart.

The average sale price across the VIREB region jumped to $362,538 at the end of May 2010. That’s up 4% from the $348,524 just one month ago and up 12% from the $323,521 of last year.

Jim Stewart, VIREB President-Elect says, “We should be aware that the market was significantly lower in 2009. Compared to 2008, numbers are close to or slightly lower than this year.”

Both single family unit sales volumes and listings across VIREB were up as well. There were 456 residential unit sales for May 2010, up 2% from the 445 posted in May 2009 and 942 homes were listed last month, up 16% from the 808 listed in May 2009. Meanwhile, active listings of residential property for sale are currently at 3,004 across the board, up 4% from last year.

NANAIMO, BC – Single family unit sales last month were up 8% from April 2009 but down just 2% from the previous month on a Board wide basis. The average sale price meanwhile is 6% above April 2009 according to Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for April 2010. There were 410 single family unit sales across the VIREB region in April 2010.

The average sale price across the VIREB region for April 2010 was $348,542 up 6% from the $327,916 posted in April 2009, but very close to the March 2010 average price of $346,626. Cliff Moberg, President of VIREB says “The market remains buoyant. Certainly local sales have been, and are continuing to remain strong.”

Ray Francis, Past President of VIREB says “Vancouver Island REALTORS® are being very optimistic about the housing industry right now. The numbers are healthy and increasing and the sales volumes are there.”

For the period comparing data from the end of April 2009 to the end of April 2010, average sale prices in VIREB’s six zones saw: Campbell River increase 12% (to $295,831), the Comox Valley decreased 2% (to $347,448), the Cowichan Valley was up 6% (to $355,036), Nanaimo also increased 4% (to $367,805), Parksville/Qualicum was up 9% (to $401,036), and Port Alberni jumped 13% (to $214,375).

There were 24% more single family residential properties put on the market in April 2010 compared to April 2009, but overall there are 1% fewer homes for sale now than a year ago.

VIREB represents approximately 1,080 licensed REALTOR® members in more than 84 member offices on Vancouver Island (north of Victoria).

VIREB cautions that average price information can be useful in establishing trends over time, but does not indicate the actual prices in centers comprised of widely divergent neighbourhoods or account for price differential between geographic areas.

Real estate prices rose 10% in Nanaimo and sales doubled across much of the Island in March.

A surge in sales is likely to continue for the short term at least, as buyers rush to beat rising interest rates.

Banks reacted quickly to a Bank of Canada interest rate hike this week and “it is critical that buyers get pre-approved for their mortgage,” said Jim Stewart, Vancouver Island Real Estate Board president-elect.

In Nanaimo the average sale price hit $369,000 last month. In the VIREB region, stretching from the Malahat north it was $347,000, up 9% from $317,000 a year ago.

Sales numbers resumed a trend seen over the past few months of being closer to seasonal norms last month, with 119 units sold in Nanaimo in March 2010, a 47% increase from the 81 in the same month last year.

Region-wide, the number of sales doubled to 420 from 261 last year, when the market was still recovering from widespread market uncertainty following the global meltdown of 2008 and the resulting collapse of the U.S. housing market.

Author: Brooks Allisen

 A: The Professional Appraisal:

7. Cost Vs Investment:

The cost of a typical professional residential real estate appraisal varies from area to area. Currently, the range is $300 to $650 for a full market value appraisal. A full market value appraisal with pre-market suggested listing price range could be an additional $50 to $100, depending again on the area that the subject property is located in.

The cost of an appraisal may be an expense and may be deductible from the proceeds in some tax areas and for some properties, and this will reduce the net cost of the appraisal. This is an area which each individual will need to consult their respective tax adviser on.

For instances where a property may have been under-priced or over-priced and the net selling price is higher than the net cost of the appraisal, one might say that an appraisal is a good investment. Where market forces or a person’s particular circumstances govern a lower price than fair market value, an appraisal may be a poor investment. Generally though, a professional opinion of value will be more beneficial to a property owner than an individual’s own limited experience can offer.

Author: Brooks Allisen

 A: The Professional Appraisal:

6. Selling & Marketing Aid:

A full real estate appraisal done by a professional may be an essential aid in marketing a property. Before a property is listed, whether For-Sale-By-Owner or through a Realtor, is the best time to get a Market Value appraisal with a listing price analysis. A pre-marketing appraisal can assist in preventing over-pricing or under-pricing a property, thus enabling an owner to obtain their best price.

Once the subject property has been listed, the pre-marketing appraisal may be used to inform prospective purchasers and/or Realtors what the current market value of the subject property is, thus possibly reducing the potential for large scale negotiating. In other words, if an appraisal is made available to prospective purchasers and/or Realtors, the likelihood of receiving a sale at or near the list price is greatly enhanced. Prospective purchasers and/or Realtors will have more confidence in the value of the subject property.

Once a purchase contract has been agreed to, it may be possible to have the appraiser provide a letter of transmittal to the purchaser’s lender so that the purchaser may use the appraisal, thus saving the purchaser time and money in getting his/her mortgage approved.

Author: Brooks Allisen

 A: The Professional Appraisal:

5. Expertise in Researching Market:

Each and every day professional appraisers are gathering information from many sources to include in the appraisal reports they write. One of the first sources to check is the MLS. This search brings up all the current listings, expired listings, cancelled listings, withdrawn listings, all the sales over the past 5, 10, 15, or 20 years, depending on the archive facilities of the local MLS board. Looking at old MLS data and information can be a valuable resource for confirming: age, size, and details of the property; improvements to a property; and/or missing data from the current listing, if there is one. Next, assessment and/or municipal records are searched for the maps, site plans, site maps, legal description, site size, site configuration, zoning, and/or conforming/non-conforming useages. Next, the property is searched on the internet to determine if there are any adverse factors that may pop-up, such as: the property is listed For-Sale-By-Owner, the property has been a grow-op (marijuana growing location), damaged by fire, flood or other means, been the target of illegal activity, etc. Internet browser maps can focus in on what is in the subject area and what types of properties are adjacent, near, or across the street from the subject property. In some areas, street eye-level images are available to get a good idea of the surroundings. In some centers, appraisers routinely do a title search on the subject property and note any irregularities on their appraisal report.

Once the subject property has been adequately researched, the subject property inspected or viewed, many of the above mentioned research sources are utilized in checking out the comparable sales, before the appraisal report is completed and delivered to the client.

Author: Brooks Allisen

 A: The Professional Appraisal:

 4. Independent & Objective Opinion :

Clients hire professional appraisers for their independent & objective opinions, not to rubber-stamp pre-determined sales prices, lending values, assessment values, cost estimates by builders, reconstruction cost for damaged properties, or market values for third party uses such as the income tax department or financial projections. As mentioned in the previous section, a professional appraiser treasures his/her credibility and likewise his/her right to have an independent and objective opinion regarding the value of the particular property that he/she is appraising. This opinion may or may not confirm another party’s estimate of value, such as: a sales price, a lender’s indicated loan value, an assessment value, a cost estimate by a builder, or a price on a private or MLS listing. Where another person’s estimate of value accurately reflects current market value, the two should be in alignment.

Author: Brooks Allisen

 A: The Professional Appraisal:

3. Credibility:

Fee appraisers operate within a well-defined system that has been in place for generations. There are many checks and balances built into the system and an appraiser faces severe repercussions for any serious deviation from the accepted standards of practice. First of all there is the appraisal organization that the appraiser belongs to. Many, if not most, appraisal organizations, associations, institutes and governing bodies are self-regulating and carefully guard their reputation, thus each and every appraiser adheres to their regulations in order to maintain their accreditation, designation, licensing, and/or authority to represent their particular affiliation. The second level of checks and balances is the network of prime lenders who utilize residential real estate appraisals to confirm the lending values of the properties they are mortgaging or lending on. Often major lenders have an approval system that the individual appraiser or appraisal company must satisfy in order to be on the lender’s approved appraiser list. The third level of checks and balances is the appraiser himself/herself. The fee from doing one compromised appraisal hardly justifies damaging one’s career, reputation, lifetime of diligent work ethic, and/or financial security. In summary, the professional appraiser has nothing to gain by not being as credible as is humanly possible.