The Liberals came into power having promised more affordable housing to Canadians. Their exact words were “We will make it easier for Canadians to find an affordable place to call home.” As we all know now this was a mere platitude to attract votes and the reality is that they have made it more difficult for the average Canadian to afford a home.

Shortly after assuming power they moved to tighten lending rules for homes worth more than $500,000 when they raised the minimum down payment requirement. This happened in December 2015. The following year, in October 2016, they announced several major changes to mortgage rules. For example, all high-ratio insured mortgages must qualify for mortgage insurance at an interest rate equal to the Bank of Canada’s five-year fixed posted rate (or their contract mortgage rate whichever of the two is higher). In practical terms this effectively reduced how much money a consumer could qualify to borrow when applying for a mortgage. A month later they applied this to low-ratio insured mortgages as well. They also required the sale of a principal residence home to be reported to Revenue Canada.

A year later they announced more mortgage rules that came into effect on the 1st of January 2018. More stringent guidelines were applied to all Canadians who apply for a mortgage through a federally regulated mortgage lender. All borrowers now have to qualify for mortgages that are two percentage points higher than the rates that they are applying for. The Fraser Institute states that these new rules are both unnecessary and harmful to homebuyers. Nevertheless the government went ahead and made it more difficult for Canadians to get a mortgage.

In addition to these rules the Trudeau government has raised income taxes and is in the process of introducing another new tax on all of us. This carbon tax and the tax increases will take even more money out of our pockets. Add these changes to interest rates that increased on the 17th of January (and are expected to continue to go up in 2018) and homes have now become more unaffordable – the opposite of what Trudeau promised to Canadians.

So what do Comox Valley homebuyers do? Perhaps what is commonly referred to as a mortgage helper may help you buy what you need. Homes with suites and homes with secondary carriage homes on the property are becoming increasing sought after as a way to help pay the bills.

If you consider the purchase of a homes with suites in Comox or Courtenay make sure that the suite is permitted by the local municipality. For homes with carriage homes ensure that the secondary residence is allowed by the local zoning bylaw. If you find that they are not and you buy the home you may be in for a real surprise if they are ordered to be removed by the local municipal authorities.

Comox, British Columbia is a laid back seaside town located about half way up the eastern side of Vancouver Island. While it is currently home to just over 15,000 residents the area continues to grow. The ongoing increase in population is fuelled by the areas attractive quality of life. Comox offers many different types and styles of homes to people relocating from the mainland and out of province. Home prices in Comox are much less than you find on the mainland in and around Vancouver and you are able to find very well built quality homes in the local area.

Comox was the early focal point of development in the Comox Valley because of its potential for settlement, agriculture, deep water access, and safe moorage in Comox Bay. Settlement spread out from the wharf. Very few of the early homes exist today but there are some homes still around that were built after the local Royal Canadian Air Force base began its operations in 1943. This small settlement was incorporated as a village in 1946 and subsequently as a town in 1967. By this time the influx of military personnel had driven the population to about 2500.

Many homes built in the 1960s remain. Split level homes are commonly found in the downtown core area. Walk in the main entry of these homes and you will find a small foyer with stairs going up and down. The main living area is upstairs and the basement is downstairs. Generally there will be a kitchen area, dining area, living room, hallway, main bathroom and three bedrooms upstairs. These home were commonly built in the area in the 1960s and 70s.
The recession of the 1980s and the relocation of 409 Squadron away from Comox in 1982 added to the downturn and the number of homes sold annually dropped from about 420 to 150. Towards the latter part of the 1980s the economy started to pick up and construction on the prestigious Highwood area of Comox started.

The first recorded listing of homes in Comox on the multiple listing service was April of 1990 with the first recorded sales the following spring. A four bedroom three bathroom 3000 square foot home on Deal Street sold for $165,000 in 1991. This two storey home featured 2×6 wall construction, custom oak cabinets and upgraded trim and finishing. The main living area was upstairs. At the time this was a high end home and it touted a view of the farm and pasture in the foreground and mountains in the background. Many of the lots sold in this time frame were listed at either 7251 square feet or 10,890 square feet.

By the turn of the century the population once again began to grow. Many of the newcomers were retirees and the town median population increased in age from 42.1 to 46.2 between 2001 and 2006. The town’s population grew to 13,626 by 2011 and to 15,028 by 2016. During this period of growth Lancaster Heights and Beckton Estates were built. Most of the homes in these subdivisions were built in the 2000s and there is some construction currently going on. Rancher style homes became popular and quite a number were built in this time frame.
A more recent trend is the remodelling of older homes and the building of new homes to a higher standard than ever before. Some of this is driven by the necessity of new building codes but the higher level of finishing is being driven by consumer appetite. New home features often include a more open concept main floor living space and practical kitchens full of the latest features and gadgetry. The great room is a newer creation that appeared in the 1990s as higher end builders looked for a way to demonstrate affluence in the features of the home. This room is often distinguishable by its central location and high ceilings (11-12 feet and higher up to and including the upper level of the home) and windows. The room intends to generate spaciousness and exude a majestic and even opulent feeling in really high end homes. Other rooms such as home theatre rooms are appearing in increased number of the higher end homes.

Comox and the surrounding area offers almost every type of home style and feature. Whether in the town itself, in the Comox peninsula or in neighboring areas such as the affluent Crown Isle subdivision, this area has much to offer home buyers. Why not drop out for a visit? You may just decide to relocate to this fabulous area.

The Comox real estate market took off in 2017 with prices starting to climb at unprecedented rates early in the year. Home prices were fairly flat throughout 2015 and there was a noticeable upward trend in the middle of 2016. This climb was sustained throughout 2017 and prices spiked in July with another similar spike in October. Single family homes in Comox hit a median sell price of $574,900 in October and the average price that month hit a high of 581,785. A year prior the numbers were closer to $450,000.

One of the most interesting statistics for October 2017 was the sell to list ratio of 133% meaning that more homes sold than were listed that month. A low supply of listings was persistent throughout the year and this factor was one of the contributing reasons why prices have done what they have. There just have not been enough new listings to sustain a healthy neutral market.

Besides increasing prices and a low and shrinking supply, the number of days to sell a home has dropped as well. Unfortunately this has resulted in many competing offer situations for home buyers who end up paying even more to buy a home that others also bid on.

Another factor that drove up prices is the tendency by people who live in the craziness of the mainland area to relocate here. Why put up with insane home and property prices when you can move here and buy much more for less than you are used to? The spill off effect is that is makes homes more unaffordable for local families.
The multiple changes to mortgage rules in Canada has not helped this situation one bit as the Trudeau government keeps making it harder for families to qualify for mortgages. Funny how the government wants us to get our financial house in order yet they continue to spend at a historic rate and rack up yearly deficits and the annual debt at an alarming rate. This habit will adversely affect us all in the longer term as more tax dollars are spent to pay the interest on all of this borrowed money and there will be less money for needed programs in the country.

So is there any good news for 2018? It depends. It depends on whether or not the record low interest rates stay low and whether or not the number of new listings increases. It also depends on whether or not the provincial and federal governments keep tax hikes in check. Neither so far has shown that they will. Tax hikes by the NDP coalition government in BC and the Trudeau government with things such as the job killing Trudeau carbon tax will hit us all in the pocket books and the result will be that we all have less money to spend on things like food and homes. Hold on in 2018 for it could be a bumpy ride.

Crown Isle has become a very popular location for people who relocate to the valley and who want an upscale community to live in. Many of the residents of this upscale part of Courtenay are from other parts and they have come here to enjoy our temperate climate and quality of life that is hard to beat.

Silverstone is the latest announced development and it is planned as a gate community of 17 bare land strata lots. Building lots in this exclusive area start at $550 thousand and go up to about $750 thousand. These homes are surrounded by the golf course and several small lakes.

The Rise phase III is the continuation of the subdivision being built on the other side of Ryan Road from the main part of Crown Isle. It started out with homes built on lots behind the local Costco and it it moving further down Crown Isle Boulevard. Lots start in around the $200 thousand range and homes are currently priced at about $650 thousand and up.

Crown Isle Drive continues to be expanded to eventually circle the golf course on the main property. The latest area under development is called Cambridge Park Estates. In this area building lots start at around $250 thousand and homes are generally in the $700 thousand range and up. Some lots and homes border the golf course. The homes in this area are freehold.

Many of the strata lots in Hampton Gate, a bare land stata development just off of the entrance located at 1290 Crown Isle Drive are sold and some newer homes are now coming on the market.  Lots are in the $300 thousand range with some looking out towards the golf course. Recent homes sales in this area were in the $800 to $900 thousand range. Phase III is the latest and final part of this development that is now well underway.

The town of Comox, BC has changed considerably since the 1960s when there was only 2500 people living there. Now there are about 15000 people and growing. New home construction in Comox increased in 2014 and it has been climbing since then. Price increases took off in the area in 2017 and record highs were seen during the year.

In contrast to record high prices in some sectors, home listings dropped compared to normal years with some months hitting record lows. There are a number of reasons for this that include the Baby Boomer generation choosing the Comox Valley and towns like Comox as a retirement relocation for the quality of life that the area offers. There are also an increasing number of people leaving Vancouver and its surrounding suburbs because of that region’s insanely high prices.

While many people come to vacation in the Comox Valley, quite a number also relocate here and want to rent. Unfortunately, the rental vacancy rates are among the lowest on Vancouver Island. While the exact numbers will vary during the year, rates of around 0.5% and lower were experienced in 2017. The rates drop even lower for 3 bedroom and higher accommodation. When there is little to rent people are forced to look for very short term rentals such as B&B, motels, campgrounds and other accommodations. The only other option is to purchase a home.

Building a new home is an option but price increases were also experienced in the new construction sector due to progressive price increases in building materials throughout the year. Added to this will be the impact of the shortly expected change to the BC Building Code. More requirements means additional cost to the builders which means increased cost to consumers. The government goal of getting to net zero housing by 2032 is laudable but how must will this cost us?

While homes on the used real estate market are still less than a new build, the prices of many types of homes have gone up and the near term outlook remains the same. Higher prices and low supply unless some major outside effect pushes either in the opposite direction.  There are, of course, going to be changes as a result of the impending changes to mortgage rules expected for the first of 2018. The federal government has already made it harder for some people to get mortgages. All non-insured borrowers will need to qualify at either the posted 5-year fixed mortgage rate or their contract rate plus 200 basis points, whichever is higher. Expect the challenges to increase for more people as they struggle to qualify for mortgages under the new rules. The government says that they are for affordable housing but their actions seem quite the contrary as they make it harder for many of us to get mortgages.

So what will 2018 bring? Even higher prices? Continued reduced supply? Higher mortgage rates? The answer is likely yes to all three to start the year. A key determinant of how long these trends will last will be the numbers of people relocating to the area and from where. The Baby Boomer and mainland relocation trend will continue for the foreseeable future. How many other people will decide to more here?

The Comox and Courtenay suburban areas offer almost very style of home from mobile homes to multi-million dollar homes. Recreational, social and cultural opportunities abound in the area. The weather is among the most moderate in Canada and the scenery and quality of life are very hard to beat. As the saying goes, drop by for a visit and you many not want to leave.

The phrase “your home is your castle” can be applied to Courtenay’s high end neighbourhood – Crown Isle Resort & Golf Community located in the City of Courtenay. In this prestigious neighbourhood a typical new home offers between 1,800 to 2,400 sq. ft. and can be custom designed as either a rancher/bungalow style or as a two-storey home that can include a bonus room, guest suite(s) or possibly even a walk out basement.

There are a number of subdivisions currently being built and developed. Phase 3 of the Ridge subdivision is in the planning and approvals stage for Phase 3, which will include 106 new lots for sale in the beautiful Comox Valley. Enjoy ease of travel to the Comox Valley with an airport just minutes away offering 30 minute flights to Vancouver plus non-stop flights to both Calgary and Edmonton. You will also enjoy being close to the new Comox Valley Regional Hospital, opening in October, 2017, North Island College, the Aquatic Centre plus the Crown Isle Plaza shopping centre complete with restaurants, medical and dental offices, supermarket, the Valley’s largest liquor store, Costco, and of course Starbucks and Tim Hortons.

There are also endless recreational opportunities available in the Comox Valley and surrounding area. You can enjoy the snow activities at Mount Washington during the winter, or hiking, swimming and festivals all summer plus endless fishing and boating possibilities all year round. With the milder climate in the Comox Valley you can even play golf 12 months of the year.