Economy · 07. December 2018
BCREA announced that the Bank of Canada elected to leave its overnight rate at 1.75% rather than continuing the Bank's objective to "normalizing" its policy rate to between 2.5% and 3.5%. Reasons cited for the decision included that the economy will be challenged by Alberta's cutbacks in oil production. Other factors include the announced shutdown of GM's Oshawa plant, slowing housing market across Canada and a potentially sharp slowdown in US economic growth next year. Given these factors and...
12. April 2018
I am preparing for my quarterly newsletter, which means pulling stats and looking at the numbers. Something odd, and unexpected came up, which is summarised nicely by this release from BCREA. Demand is down, as noted in this release. Here on the Island, compared to March of 2017, we are down about 18%, though March 2017 was a very strong year. Yet, and this is what surprised me, inventory levels have gone down further since December. In December, after the rush of sales getting in before the...
Real Estate News · 10. March 2018
BCREA released its Housing Forecast Update last week and they are continuing to forecast a slower pace in the housing market. . In it they note some competing factors and are forecasting a 10.8% drop in units sold for the Vancouver Island Real Estate Board area (Malahat northward). Prices are forecasted to increase 7.6% percent for 2018, which is more reasonable than the 2.4% forecasted in November. The major factors include: Strong economy: "The BC experienced four consecutive years of 3 per...
Economy · 22. February 2018
Within the 2018 Budget announced February 21st, is a section titled Homes for BC. This includes "a 30-point plan for housing affordability in B.C." Minister of Municipal Affairs and Housing, Selina Robinson, states; "Home prices didn't spike overnight, and our housing problems can't be fixed with a single budget. It will take years of sustained action to bring housing affordability home." In a release BCREA disagrees that these moves will bring stability to the markets. Here they note the...
Real Estate News · 20. February 2018
In a news release (highlights added) with this title the BC Real Estate Association (BCREA) reported that home sales in January were 10% lower than December on a seasonally adjusted basis. If you conclude, as I did, that this headline is suggesting the markets have slowed, that is not the case. The real story here is that December was a very strong month as buyers rushed in to beat the new mortgage stress test that took effect January 1, 2018. The release notes that January sales were up 18.3%...
02. February 2018
As of today I have been unable to find any truly analytical assessments or forecast of the impact of the new stress for the housing market, especially here on the Island. The new 2018 stress test applies to mortgages with 20% or more down payment. Reaction from industry experts was somewhat alarmist with opinions that this was not needed or has gone too far. This article in the Huffington Post reports an estimation from a mortgage professional that the new measure will reduce unit sales by...
Economy · 17. January 2018
After years of warning that interest rates will increase, that finally started to happen in the in 2017 and really took hold the last half of the year. On January 17, 2018 the Bank of Canada announce its third 25 bases point increase in its overnight rate bringing it to 1.25%. Bond yields have been on the rise as well, affecting long term fixed mortgages.
Real Estate News · 29. November 2017
BCREA’s 4th Quarter 2017 Housing Forecast is entitled Strong Economy Versus Housing Headwinds. They are forecasting that due to rising interest rates and the new mortgage stress test for mortgages with 20% or more down payment a return to pretty much balanced markets in 2018. This is augmented by an increase in new home construction and a pulling back of the economy from 3.8% increase in GDP projected this year to 2.8% for 2018. For the VIREB area (Malahat north) the forecast for single...
Real Estate News · 17. October 2017
October 17, 2017 the federal government announced a new stress test for home buyers seeking an uninsured mortgage with 20% or more down payment.

     About Gerry

Information and Interpretation
Selling or buying real estate is a major financial endeavour with many factors to consider. While you have a wealth of information available to you on the internet, interpreting that information is another matter.

This is where I come in. Not only do I research and provide you the information you need, I take it to the next level and analyze and interpret that  information for you. I will tell you what I think, what we do is up to you.

As a client, your Realtor works for you, and this is a principle I hold dear.  I see my job as providing you with information, interpretation, services and guidance, not to push you on a course of action.

Unparalleled Service
I have a simple code, I don't sell, I service. I assume my clients are perfectly able to make their own decision once they have the information they need. I spend my time providing information, guiding people through the process, and making sure all the bases are covered, not in high pressure sales.

Over the years I have received very complementary feedback from clients. See Client Feedback.

Integrity, simply defined, is being honest and fair. This is further enhanced by one of a Realtor's prime duties, which is not to put anyone's interest above their clients, including their own.  This a duty I take very seriously. My personal outlook after over 30 years in business, is that whenever I experience high pressure sales I start to question the integrity of the person selling me.  Are they looking after my best interest or theirs?

Gerry Chwelos, REALTOR®


Tel: 250-8975465

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