“ New Listings on the Rise ”

Greater Vancouver Real Estate June 2010- Last month listings continued to rise, while the number of sales experienced a slight decrease due to the surge of interest rates. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales totalled 3,156 in May 2010, a decline of 10.4 per cent compared to the 3,524 sales in May 2009. More than 7,000 homes were listed for sale in Greater Vancouver, which was an increase of 10 per cent compared to last month, and is up 28.2 per cent compared to this time last year. The large array of listings is giving prospective home buyers more choices. Additionally; the rush to secure low interest rates has passed, thereby giving buyers more time to make decisions and work with their realtors on finding that perfect life investment®.

Burnaby Real Estate – Like much of the lower mainland Burnaby experienced a drop in sales and an increase in listings, although many of the homes sold well above the guide prices. Most of the listings came from new condo developments in the area, with many more exciting and affordable expansions on their way. Although the banks did raise benchmark prices, the current interest rates are still at a record low, continuing to drive demand for first time buyers and those looking for larger square footage.

Outlook

With the coming of the new Harmonized Sales Tax (HST) this July 1, there seems to be a lot of confusion as to how this will affect the housing market; so here is what you need to know. The Harmonized Sales Tax is a 12% tax applicable to most goods and services, including new homes, real estate, and property. Currently, new BC and Vancouver homes are subject to 5% GST (federal tax) in which first time home-buyers or investors can receive GST rebates. This will be replaced with the higher 12% HST, a 7% tax difference on the total purchase price of a new BC home or property. The B.C. HST program will give partial rebates for new BC homes priced up to $400,000. The government will give these homebuyers a partial 5% HST rebate on the provincial tax side which makes any new B.C. home/property $400,000 or less no more expensive than it is today. Homebuyers looking to buy new Vancouver property over $400,000 will receive a maximum BC HST rebate of $20,000, but will see the purchase price above that level subject to the extra 5% tax rate system. The 12% HST is also applicable to any costs and fees associated with your property/home purchase including legal/notary fees, commissions and other closing costs. The cost of new home ownership will increase significantly, not only will your new home or cost more up front, but the 12% HST is also applicable to strata fees, residential heating fuel, commercial rents, smoke detectors, fire extinguishers, repairs, cable TV, internet, electricity, gas, renovations, painting and other professional services. With your help and community support there is still a chance to stop the HST from coming into effect, for more information please go to www.stophst.com

Greater Vancouver Real Estate Stats for May 2010:

*All figures set against May 2009

Detached Sales

Vancouver West: Down by 35% (from 232 to 150)

Vancouver East: Up by 2% (from 180 units sold to 175)

Burnaby: Down by 17% (from 140 units sold to 115)

Attached Sales

Vancouver East: Down by 32% (from 59 units sold to 40)

Burnaby: Down by 8% (from 98 units sold to 88)

Apartment Sales

Vancouver East: Down by 11%% (from 139 units sold to 123)

Burnaby: Down by 9% (from 187 units sold to 179)

NOTE: The MLSLink Housing Price Index® (HPI) calculates benchmark prices, which represents a typical property within a market. The HPI takes into consideration what averages and medians do not - the price of housing features such as lot size, age, number of rooms, ect. These \'typical house\' in a given area. Each month\'s sales determine the current prices paid for bedrooms, bathrooms, fireplaces, ect. and apply those new values to the typical house model. The HPI measures typical, pure price change (inflation or deflation).

For more information and a free market - analysis please call Italo Fionda