Greater Victoria Municipalities and Neighbourhoods

A few months back the VREB added some proper maps of all their trading areas, replacing the old images that were too small to read and only showed down to the level of the municipalities.   It’s a great improvement, however the maps only have a few hundred views, so I think they are too hidden on the VREB site.

Given how often the topic comes up here, I figured it would be a useful reference to have embedded on the site in one place, starting with the sub-areas in the the VREB trading area (Greater Victoria plus the Malahat and Gulf Islands).

Then the core municipalities including Victoria, Victoria West, Oak Bay, Esquimalt, View Royal, Saanich East, and Saanich West.

The westshore which is Sooke, Langford, Metchosin, Colwood, and the Highlands.

And the peninsula which contains North Saanich, Sidney, and Central Saanich.

All maps courtesy of the VREB.   And if you want to know what you’ll be paying in taxes in each of these municipalities, that is here.

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65 thoughts on “Greater Victoria Municipalities and Neighbourhoods

  1. We have upcoming renos (to balconies and surrounds). Are these the kiss of death when selling a condo? Better to wait until after? Market’s friggin hot here right now…

    Kiss of death in slow markets, but in buoyant markets might not be so bad depending on some of the factors Leo mentioned below. The less uncertainty there is about cost, length of repairs, etc., the better.

  2. Selling my home on my own frightens the hell out of me—and I imagine it does most people, or else there would be more FSBO and mere postings out there.

    Okay fair enough, good point. However, even if you want full service apply some common sense to the situation.

    If I had a million dollar home in Oak Bay right now (essentially sells itself) I would email 25 REALTORS® with a few photos attached and say, for example,…..”looking to hire a REALTOR® and willing to pay 3%100k+1.5%balance cooperating commission and $8,250 on the listing portion, would you be interested in a doing a listing presentation?” Guaranteed you would get bites and that is an easy $8,250 savings for about 30 minutes’ worth of work (copy and paste generic email).

    This is low level common sense.

    Slightly higher level common sense you probably go 1.5% cooperating and find someone for $5,000 full service and you are $13,000 ahead.

    Of course, if you don’t have common sense you’ll fall for the 101 traps…………”Well, if I can’t negotiate my own commission, how am I supposed to negotiate for you in a bidding war that my proven marketing system will generate? You want the top negotiator on the biggest financial transaction of your life, correct?”

  3. We have upcoming renos (to balconies and surrounds). Are these the kiss of death when selling a condo? Better to wait until after? Market’s friggin hot here right now…

    Marko would know more about this, but it depends on the circumstance. Are the renos covered by contingency reserve, and if so, will it not deplete the reserve beyond minimums recommended in the depreciation report? If so it’s probably minimal impact from the renovation annoyance for the new owners. If it’s a special assessment then yes that will be discounted in the price.

    That said I would be pretty damn tempted to cash in on the condo mania right now in Vancouver. If the B20 rules hit in the fall it could slow down quite abruptly.

  4. Selling my home on my own frightens the hell out of me—and I imagine it does most people, or else there would be more FSBO and mere postings out there.

    Totally agreed. That is the reason more people don’t do it. And the people that do do it, do it for the wrong reasons (how do you like that sentence?). They want to pocket the whole commission so they price high and offer $1 co-op commission and are surprised when it doesn’t sell.
    So I believe the key is to make fewer people scared of it, and give them a better strategy for selling. Chances are it still won’t be a large segment of the market though. The whole topic is way too emotional for most people to make logical decisions.

  5. Thanks Leo, I think…

    Irregardless, when addressing a person or thing directly, the name used must be offset with a comma.

  6. But in high appreciation times and high priced markets, it loses all meaning. The amount you pay off is insignificant to the amount gained via appreciation so who cares about the few tens of thousands. Easy come, easy go.

    I buy this interpretation.

    Mere postings and alternative business models in Victoria have pretty much been flat for 7 years……….it really comes down to common sense is actually not that common.

    Selling my home on my own frightens the hell out of me—and I imagine it does most people, or else there would be more FSBO and mere postings out there.

    When we’re talking upwards of a million dollars, letting professionals handle every facet of the deal seems prudent. On the other hand, saving $30,000 is also prudent.

  7. Best way to find out what a reno will cost is try to talk to a few people that have done them. Usually more than the contractor estimates and way more than the real estate agent says. Why would anyone think that a real estate actually knows.

  8. VicRenter – very much doubt you could do it for 250K. Best route is often to strip it to the studs or rebuild from scratch.

  9. Thanks Leo, I think you answered the question I should have asked, What is the best way to structure buyer’s agent commission.

    We have upcoming renos (to balconies and surrounds). Are these the kiss of death when selling a condo? Better to wait until after? Market’s friggin hot here right now…

  10. Learner
    August 9, 2017 at 9:08 am
    How long do you folks this it will take to see the effects of the autumn rule changes (i.e., uninsured stress test)?

    That’s an interesting question when you put it into the perspective of the previous legislation that OSFI introduced.

    I was pretty sure that the legislation requiring insured mortgages to qualify at the BOC 5yr benchmark qualifying rate would have been a market killer considering the amount of leverage in the market.

    When CMHC mortgages dropped by 41% and all of a sudden everyone had 20% down, OSFI saw the end around their legislation and this is how they are addressing it.

    The fact that this new legislation targets both insured and uninsured mortgages, as well as mortgage renewals, spells the death knell for every large market out there.

    In my estimation, I doubt if the various markets will last longer than 6 months after the introduction of this new market killer. OSFI is ensuring that the banks have their t’s crossed and i’s dotted in the aftermath.

    “When extending loans to borrowers, FRFIs should impose contractual terms and conditions that secure their full protection under the laws applicable in the relevant jurisdiction, and seek to
    preserve an appropriate variety of recourses (including, where applicable, actions on personal covenant) should the borrower default. In addition, FRFIs should have the necessary action
    plans in place to determine the best course of action upon borrower default.
    Such action plans should cover:
    • The likely recourses/options available to the FRFI upon default in all relevant jurisdictions;
    • The identification of the parties against whom these recourses may be exercised; and
    • A strategy for exercising these options in a manner that is prudentially sound.”

  11. Not from what I’ve seen VicRenter. A complete renovation from top to bottom for a standard basement entry home is going to cost more. The problem with guesses from agents is that it’s just a guess.

    It’s just so frigging expensive at about $100 a finished square foot and then the cost of the lift and under pinning of a new foundation. I can’t rationalize paying this much for a renovation. It’s ludicrous and you’re not going to get that money back in an increase in house value. Maybe a return of 60 to 75 cents on every dollar spent on the renovation.

    That’s why you need market appreciation to make renovating a property profitable. And market prices have not moved for the last six months.

  12. sounds like it’s best to stick with norm of 3.22% on first $100K/1.15% on balance, is that right?

    Where did you get those percentages? 3%/1.5% is the most common commission on each side of the transaction (I want to be careful not to say that it is the standard or normal commission, because the real estate industry gets antsy about implying there is a standard commission).

    Could one not offer a buyers’ agent commission of 1.564% on the first $500K and 20% on the balance?

    Certainly, you can offer anything you like. But what is the point? Are you trying to encourage buyer’s agents to convince their clients to overbid? You never know it might work, but you are fundamentally indicating that you are looking for the sleaziest actors in the market to work against their client’s interests. I doubt it will make a difference to your results.
    It also doesn’t have to be a percentage, you can offer a flat amount if you like.

    The question of whether a higher offered commission results in a higher price or a quicker sale for you (the only two things you care about) is very poorly studied. Everyone has their own theories about this but none of them are validated. I am looking into whether this can be properly studied for the Victoria market.

    It is clear that if you offer $1 (the minimum you are allowed to), you will get agents approaching you with a fee agreement before bringing their buyers, and if you refuse that, you will get those agents extracting the fee from their buyers or trying to. In either case I believe this is a bad idea, as it sours the relationship to the buyer and causes a bunch of extra work. So offer something reasonable. But what is reasonable? Will offering $5000 get you fewer buyers than offering $7000 or $10,000? Possibly not, the reality is as soon as you list on MLS your listing will show up in thousands of PCS accounts and buyers will starting asking their agents about it. The impact of agents choosing to show a place or not isn’t nearly as high or even significant as it used to be.

  13. Looking to tap the collective wisdom on a potential mere posting for our condo in Richmond to finance a move across the pond – thanks in advance!

    Question 1

    For the buyer’s commission, sounds like it’s best to stick with norm of 3.22% on first $100K/1.15% on balance, is that right?

    I have long wondered why this shouldn’t/couldn’t be altered to better incent buyers’ agents. For example, with a listing at $500K, the above formula results in a buyer’s agent commission of $7820, or 1.564%.

    Could one not offer a buyers’ agent commission of 1.564% on the first $500K and 20% on the balance?

    This would seem to highly incent agents to encourage their clients to look at the place and engage in any bidding war.

  14. @John Dollar: I’m also curious as to how much of that $250,000 reno budget is for lifting the house. We looked at a really nicely renovated 50s house in the Hillside neighbourhood last year (open concept, new interior everything, new plumbing, new windows, new roof, new suite/finished basement, earthquake upgrading) and our realtor guessed that it probably cost the owner $100,000. Would that still be possible now?

  15. “And that’s why we are heading into trouble. So many of us think we are richer than we are, and it makes it very easy to spend that wealth and leverage up on the mortgage. And that could mean a lot of hurt coming our way during the next recession. And it doesn’t have to be a big recession.”

    Exactly JD. The interest rates may be low but the pile of debt is ten fold and mere minor rate rises will set if off. Look what a quarter point did and there will be a few more of those coming.

    Not to forget the massive amounts of dollars poured into high end renos that will never see any where near payback. I’ve heard of some brutal reno disasters the last several months in the hot hoods and the numbers thrown around like it’s chicken scratch is mind boggling.

  16. Why is it that people are perfectly happy to pay $33,000 to sell their million dollar house, but will look for alternatives to paying $12k to sell the $300,000 place? I think in low appreciation markets all that equity has real meaning. They worked for that equity and paid it off with real money. That $12,000 could have taken a few years to pay off. But in high appreciation times and high priced markets, it loses all meaning. The amount you pay off is insignificant to the amount gained via appreciation so who cares about the few tens of thousands. Easy come, easy go.

    Mere postings and alternative business models in Victoria have pretty much been flat for 7 years……….it really comes down to common sense is actually not that common.

  17. With those kind of house prices people lose all perspective of money. What’s $100k? Hardly more than a rounding error.

    This is the biggest problem in the current marketplace in my opinion. If you lose perspective you get fried…..sometimes you just have to step back and say….hmmmm, this doesn’t really make sense. I’ve stepped away from buying in pre-sale developments downtown I would have normally in past years as it just doesn’t make sense; however, they are selling out much faster than they did when it actual made sense to buy.

    https://www.youtube.com/watch?v=iZ0Md_ZQrTQ

  18. What do you mean?

    I mean if we’re at the point where a $1 increase is completely killing purchases because of the amount down, it means that people are buying nearly $1 million houses with under 20% down.

  19. With those kind of house prices people lose all perspective of money. What’s $100k? Hardly more than a rounding error.

    Yea, that’s one of the dangers I’m perceiving here. People have become desensitized to the numbers: They think nothing of that 100k. 1 million dollar homes? What’s the big deal? Borrowing 500k to buy a run-of-the-mill house selling for 800k? That’s not so bad.

    Except it is, and people have increasingly lost that sense of connection between themselves, their perspective on a house, and the value of a dollar. Normally, houses are a great way to preserve wealth overall. But they’re not typically good at creating it, as they are unproductive liabilities.

    Alas, many of us continue to live in a veritable fantasy land – a dream world where economics, reality, and gravity have been repealed by virtue of our collective genii, money is mere abstraction and debt is mathemagically meaningless. Thankfully, there are signs that at least a few people are starting to wake up.

    Because at some point, reality bites. 🙂

  20. How long do you folks this it will take to see the effects of the autumn rule changes (i.e., uninsured stress test)?

    Type of Publication: Letter
    Date: July 6, 2017
    Reference: Guideline for Banks / T&L / CRA / Life / P&C
    To: Federally-Regulated Financial Institutions (FRFIs)
    In July 2016, the Office of the Superintendent of Financial Institutions (OSFI) issued a letter to the industry entitled Reinforcing Prudent Residential Mortgage Risk Management. The letter also indicated that OSFI would review Guideline B-20.

    Today, OSFI is issuing for comment a revised version of Guideline B-20. Comments on the proposed guideline can be e-mailed to B.20@osfi-bsif.gc.ca by August 17, 2017. A non-attributed summary of comments received, along with OSFI’s responses, will be posted on OSFI’s website when the final version of the guideline is released.

    The final guideline will be issued in autumn 2017, and will come into effect shortly thereafter. Once the changes to Guideline B-20 are finalized, OSFI intends to make consequential amendments to Guideline B-21 – Residential Mortgage Insurance Underwriting Practices and Procedures.

    Yours truly,

    Carolyn Rogers
    Assistant Superintendent
    Regulation Sector

  21. When $100,000 only means a payment of $400 a month, it is easy to understand why so many parents gift their kids down payments.

    So what’s $400 a month. About what the typical pop bottle collector makes in a month. My neighbor up the street lives in what is now close to a million dollar home and she digs through my blue box. That’s the picture of a Victoria real estate millionaire today.

    And that’s why we are heading into trouble. So many of us think we are richer than we are, and it makes it very easy to spend that wealth and leverage up on the mortgage. And that could mean a lot of hurt coming our way during the next recession. And it doesn’t have to be a big recession.

    Last evening, I was speaking with a neighbor that came close to losing their home in the 1980’s and they only had a mortgage of $50,000. What saved them was they didn’t have other debts like credit cards and car payments.. It was tough, but they made it through.

    Fast forward to today. That same age couple now has a $500,000 mortgage, two car payments, and credit card debts in the tens of thousands.

    Good luck making it through that one.

  22. People already in, using large equity gains coupled with leverage to buy additional properties.

    Makes sense, bank of mom and dad refinancing their $2M house to take a few piddling hundred thou out and give the kid a nice 30% down payment.

    With those kind of house prices people lose all perspective of money. What’s $100k? Hardly more than a rounding error.

    I see this in other ways too. In expensive markets the vast majority use a full commission agent to sell their house. Propertyguys, private sales, mere postings, and 1% have a pretty small market share here. In cheaper markets they are much more prominent. Why is it that people are perfectly happy to pay $33,000 to sell their million dollar house, but will look for alternatives to paying $12k to sell the $300,000 place? I think in low appreciation markets all that equity has real meaning. They worked for that equity and paid it off with real money. That $12,000 could have taken a few years to pay off. But in high appreciation times and high priced markets, it loses all meaning. The amount you pay off is insignificant to the amount gained via appreciation so who cares about the few tens of thousands. Easy come, easy go.

  23. If it’s not foreign money, what else could it be?

    This is what I mean when I refer to an equity-based market. People already in, using large equity gains coupled with leverage to buy additional properties. What are they buying right now in Vancouver?

    Condos…

  24. If it’s not foreign money, what else could it be? Lack of supply is fine, but if the incomes aren’t there to buy the supply prices wouldn’t be increasing as quickly as it is in Vancouver. It’s either foreign money flowing in through other means, or a massive beg borrowing and leveraging by the locals.

    The CMHC has been tightening for almost a decade now. Every year or two they tweak a little here and there. And every time it doesn’t work they use a slightly bigger hammer the next time. The B20 rules are the biggest hammer yet, and it’ll almost certainly drop this year.

  25. “You said that seven years ago. The easy money days are gone until they’re back.”

    Did they have 2% point stress tests 7 years ago ? Will be fun to see prices go back seven years within one. Bombs away.

    “The bank regulator (OSFI) intends by the end of this year to force the banks into stress testing all borrowers – regardless of how much money they have for a down payment – including people who are renewing. The test will involve ensuring they have enough income (and secure employment) to make their mortgages payments at current rates plus 2%. It’s estimated by RateSpy guy and mortgage broker Rob McLister that this will “slash buying power for prime buyers by roughly 18%.” And just imagine what that’ll do to house prices already under pressure.

    But it gets worse.

    The stress test of rate+2% will become rate+3% for anyone renewing a mortgage where the value of their home has decreased and they no longer have 20% equity – or if the financial stability of that borrower has changed (think divorce, or a spouse on unpaid mat leave). In order to retain the lender’s financing, some additional money might have to be ponied up to bring the loan-to-value ratio back into line.”

    http://www.greaterfool.ca/2017/08/08/stress-2/

  26. Comment system causing performance problems. Reverting back to old system for now until comment editing, new comment highlighting, and performance issues can be fixed.
    Don’t fix what ain’t broke!

    I agree: the old system worked well and quotations looked good.

  27. The easy money days are gone.

    You said that seven years ago. The easy money days are gone until they’re back.

  28. If that’s really an issue, then the market is pretty hooped if it starts going down.

    What do you mean?

  29. John Dollar
    Looking at some costs to raise a 1950’s home to accommodate a full height basement. About 1100 square feet on the main and 750 square feet in the basement. So far a complete reno to modern standards is coming in at $250,000.

    Is the $250k incl. raising the 50’s house?
    How much to open concept everything on main (1100sq), remove brick chimney in the middle, heatpump, drain, 200amp, ensuite, windows, doors, and develop the basement for hobbits and leave it under 7′?

  30. Once you tick over from $999,999 to $1,000,000 you suddenly need to find an extra $125,000 for the down payment.

    If that’s really an issue, then the market is pretty hooped if it starts going down.

  31. The flip on Torquay made almost $400,000 in 8 months early 2015 to mid 2016.

    When this market turns, I’m wondering if the servers at UsedVictoria and Craigslist will crash from all the activity…

  32. The easy money days are gone.

    Probably true. The flip on Torquay made almost $400,000 in 8 months early 2015 to mid 2016. That was good timing. Now when houses in almost original condition in that neighbourhood are selling for ~850,000, it doesn’t seem there is a lot more room to flip it for much more. So far no success with gordon head 70s boxes selling for $1M+. $1M is both a psychological barrier and a financial one. No CMHC insurance available above that, so 20% down is a must. Once you tick over from $999,999 to $1,000,000 you suddenly need to find an extra $125,000 for the down payment.

  33. Looking at some costs to raise a 1950’s home to accommodate a full height basement. About 1100 square feet on the main and 750 square feet in the basement. So far a complete reno to modern standards is coming in at $250,000.

    A year ago this was doable as properties were appreciating. But with today’s flat prices it could become a $50,000 loss.

    Purchase $650,000
    renovations $250,000

    Projected Sale price $850,000 .

    I could rent the property at $3,500 a month and wait for properties to go up but I don’t want to be a landlord.

    Without that appreciation during construction it doesn’t make much sense to buy and renovate today. If I had bought a year ago, I would likely have had a $100,000 profit because of the lift from the market.

    The easy money days are gone.

  34. Comment system causing performance problems. Reverting back to old system for now until comment editing, new comment highlighting, and performance issues can be fixed.
    Don’t fix what ain’t broke!

  35. Different market (UK), different time (late 80s). But, you may enjoy perusing the link below which is a repository of what the papers said from 1988 -1996 in the UK, as their housing market was peaking, then falling. Prices up 30-50% YOY? Well, we’ve seen it all before.

    It provides a very interesting context to not only some of the arguments raised on HHV, but also in the media (hint: we make all the same arguments now).

    http://www.housepricecrash.co.uk/FAQ-1988-what-the-papers-said.php

  36. Wonderment, agreed, looks like another shack that needs a major slash to get the sale. That’s an outrageous price for a 2 bed. Oaklands itself is completely overpriced for what it is, mainly wartime shacks.

  37. Aug Aug
    2017    2016
    
    Net Unconditional Sales:    157 883
    New Listings:   222 1,120
    Active Listings:    1,932   2,094
    

    16% fewer sales than this week last year, 9% fewer active listings.

  38. Chinese Capital Reserves Swell To 9 Month High

    This is the sixth month in a row that China’s foreign exchange reserves rose, after implementing new capital controls in January 2017.

    Many speculated China would loosen the rules in a few months, instead they announced the deployment of 400,000 anti-money laundering experts to halt money from leaving the country.

    If you’re a city that’s been chasing Mainland Chinese investment, at the expense of building local industry – now might be the time to review those plans.

    https://betterdwelling.com/chinas-fx-reserves-see-largest-rise-in-over-3-years-global-real-estate-spending-cools/

  39. Does not seem like a lot of profit after all the transaction costs and the cost of renovations. Sounds like someone trying to get out whole. lets see what it sells for.

  40. It seems the top 10 international cities for international RE investors are beginning to slump simultaneously en masse.

    I never pay much attention to the Chinese outflows since it’s all a bit too nebulous for me, but it does seem like the controls are finally starting to work.

  41. Interesting flip attempt at 1861 San Juan. Listed in Feb for $750k, sold for $911. Now renovated and listed for $1.098M… New floors, heat pump, kitchen.

  42. Interesting article in the Economist from a few months ago that said, “On average, American home prices have recovered nearly all their losses from the 2006 crash, but when adjusted for inflation they are still 20% below the 2006 peak.”

    It seems the top 10 international cities for international RE investors are beginning to slump simultaneously en masse. Vancouver and Toronto are both in the top ten list. Victoria is in the top 20 list. Google it, the sudden change is making news headlines in all major centres.

    I wonder if our crash and recovery will take up to 15 years like the American RE markets, with minor exceptions like San Francisco.

  43. “The slash market has a few interesting ones. The edgy slumlord shacks are getting slashed only small amounts in Oaklands for $28K at 3003 Shakespeare St.”

    Hawk,
    2554 Shakespeare just listed for $759k (1945 2bd 1bth). I’m curious to see how much this will have to be slashed before it sells. Interior looks over 50 years old – and likely smells older. Overpriced even for the peak of this crazy market

  44. I miss the edit function. I guess I’ll just have to figure out another way to proof read without depending on the edit function.

    I’m wondering how I should interpret this…

  45. Rising unemployment and lots of open job postings? Simple remedy: employers need to pay more. “It’s really tough to find employees” leaves off an implicit “at the wage we’re offering”.

  46. Victoria unemployment on the rise up .5% in one month to 4.6% up from March low of 3.8%. Numbers are low still but with over 2000 job listings on the southern island it makes me think that less people are moving here due to the high costs of living here. If you don’t come from Vancouver or Toronto then it’s not the cheap deal the pumpers portray Victoria as.

  47. @ JD,

    Makes sense. That jump in numbers though, makes me wonder how averse they are to risk. Anytime you see borrowing spike like that, trouble tends to follow. Something else to watch moving forward, I guess.

  48. Credit unions will take the first big hit in the coming crash. Looks like they got greedy and will pay for it.

    The slash market has a few interesting ones. The edgy slumlord shacks are getting slashed only small amounts in Oaklands for $28K at 3003 Shakespeare St where you can walk across the street for your McRonny’s burger.

    Another flipper at 67 San Jose Avenue in James Bay took only a $25K slash.

    In trendy Vic West Bearkilla type slumshack at 225 Henry St is more aggressive for a $50K slash.

    Lower Rockland at 931 McClure Street only whacked it $50K.

    4960 Georgia Park Terrace in Cordova Bay is getting a bit more serious with a $89K slash.

    Another Bearkilla hood slash of 1836 Mt. Newton Cross Rd took a second slash for a total of $94K for a new price of $795K.

    The 2 bed/2 bath hot condo market don’t look that hot when 207- 1031 Burdett Ave has to slash $20K.

    Most of these are going to need much more to get a sale with the spec’ers wanting out and all those Golden Head slashers the past month or more.

  49. I miss the edit function. I guess I’ll just have to figure out another way to proof read without depending on the edit function.

  50. Credit unions and other provincially regulated lenders are more aggressive when it comes to lending practices and thereby take on more risk. And that’s how they build market share.

    However that doesn’t mean they will take on excessive risk. They will just be a little more of a risk taker than a federally regulated lender. They don’t want a flood of risky purchases coming their way so they will follow along in the spirit with OSFI regulations in spirit.

    The provincial lenders just don’t have the deep pockets therefore taking on too much risk could put them out of business when the next recession hits BC. Yes it is a loophole but in my opinion not a big one.

  51. I had a look at some of OFSIs material, and I may have answered my own question – the regulations proposed do not appear to apply to credit unions. If that’s the case, that would seem to be a pretty big “loophole” of sorts. I wonder if the provincial regulator would have an appetite to do something similar to that proposed at the federal level.

  52. I did receive an email asking for stakeholders feedback regarding OSFI Residential lending requirements.

    They are proposing

    -A qualified stress test for all uninsured mortgages.

    -the loan to value ratio measurements remain dynamic and adjust for local market conditions where there used as a risk control, such as for qualifying borrowers.

    -prohibit co-lending arrangements that are designed or appear to be designed to circumvent regulatory requirements.

    The stress test is the easy one. Every appraisal performed should have a market stress test for that type of property as part of the lending requirement. The test has to be objective and not open to interpretation or manipulation. We have it already. The MOI, Sales/listing ratio and the DOM to determine if the market is in balance, favors buyers or sellers.

    And if the market is at the extreme end of the spectrum like ours is today with auctions or if the market were at the other end of the market spectrum which would be a market influenced by foreclosures such as we had in the mid 1980’s.

    From that would come a dynamic loan to value ratio for different locations and types of properties. A heated market like ours that strongly favors sellers would mean that OSFI would lower the loan to value ratio to say 65%. In contrast when we really need a boost to the economy in a foreclosure market the loan to value ratio might be increased thereby stimulating the economy. What OSFI would be doing is moderating the real estate economy away from the inevitable Boom/Bust cycle.

    I see some of this in our market today. The re-sale market is taking most of the hits in regulations to slow down price increases. But new homes such as pre-construction condominiums receive some very favorable lending conditions like two year rate guarantees. In that way construction jobs and the economy are not affected.

  53. “Looks like a lot of the lending moved over to the provincially regulated credit unions”

    Pardon my ignorance here…but this has me wondering. Would potentially upcoming OSFI stress tests not apply loans originating at credit unions?

  54. “The low wind ratings can’t be accurate, they just can’t be. Love victoria but could do without the wind.”

    Probably using data from the airport. Wind there is nothing like Oak Bay, Fairfield, James Bay or Esquimalt

  55. Crazy how big the core is according to VREB. I always had it in my mind as south of McKenzie and east of Tilicum/Lampson.

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