2013: Everything costs more

Well, maybe not everything…

You can probably pay less for a computer or a house, but many of the day-to-day expenses of living are going up around here.

As the new year rolled over there was a spate of announcement for rising taxes, user fees, premiums and fares in BC.

In Vancouver, homeowners will pay about three per cent more in 2013 on their property taxes and utility bills.

The cost of health care premiums is set to rise in the province, from $128 to $133 per month for a family, adding up to $60 per year, according to the Canadian Taxpayers Federation.

“Most of us would say, ‘OK, we can squeeze out five dollars a month somewhere,’ ” said spokesman Jordan Bateman.

But, he added, this is the fourth January premiums have increased and “it’s really starting to weigh down taxpayers.”

Federally, Employment Insurance and Canada Pension premiums will also increase.

Workers who make over $47,400 will pay $891, up $51 from last year, and employers will pay $1,247 in EI premiums, up $72. Workers and employers will both pay an extra $49 in CPP premiums, with workers paying $2,356 in 2013.

The cost of getting around is also going up.

Yep, Translink fares are going up too – a one zone fare goes from $2.50 to $2.75.  Also Tolls and BC Ferry fare.

For the whole list check out the original article in the Vancouver Sun.

Sort by:   newest | oldest | most voted
gokou3
Guest

Like Garth Turner said, price inflation and asset deflation.

VMD
Member
2012 Assessment vs Purchase Price (a Van West neighborhood) This is my brief attempt to capture the Sale price trend vs 2012 Assessment Price (published on Jan 1, 2013) in an area of Vancouver West. I picked this area because a friend of mine just bought there in early 2012. As we can see, the buyers who bought in Jan-Mar 2012 paid 9-10% OVER their 2012 assessment price (assessed on July 1st,2012). By September, properties are changing hands at 6% UNDER assessment price. Month Assessment_vs_Sale_Price Jan -9% Feb -9% Mar -10% Apr -6% May -3% Jun -1% Jul +1% Aug… Read more »
Name taken
Guest

Do not confuse government-mandated taxes and fees with market prices. Things like CPP, EI, healthcare premiums, tolls, etc, are managed by bureaucrats who are spending other people’s money. Naturally they do it rather inefficiently. It is easier to collect more tax than to fire public unions or make some difficult choices that would improve spending efficiency. This trend of increasing tax rates is not new and it will stay here until there are fundamental changes in the system. Fundamental as in “system collapse”, “revolution”, etc.

Anonymous
Guest
I went downtown yesterday for the first time in months. I used to work retail downtown for many years. I have to say something did not seem right yesterday. Where was everyone??? The streets were dead. Not a soul at the art gallery steps. My friend said maybe everyone is hung over from New Years Eve. I said, I don’t buy it. I worked downtown for years and even on New Years Day, people would be out on the streets, people would be hanging out on the Art Gallery steps. Homeless kids would be playing hacky sack and asking if… Read more »
Anonymous
Guest
I just want to add something to my post about my walk downtown yesterday and the deserted streets and huge number of vacant apartments in the West End. You have to keep in mind that right now is one of the worst times of the year to be looking for rentals. Most people do not want to move during Christmas or during the winter so traditionally it’s been very hard to find vacancies for Jan. 1st or Feb. 1st (Sept. 1st is also hard because you are in competition with students). The best time to look for rentals is in… Read more »
Girlbear
Guest

Anon #4-5

Same thing in Kits. Seems like every second building has a vacancy sign in front. Never seen this in all my days of living on the westside.

Ford Prefect
Guest

gokou3:

Those who disagree with you should definitely read the work of Jeremy Grantham @ GMO.

Beyond argument he shows that all commodities, which means all prices, have increased dramatically and idiosyncratically (ie without usual underlying cause such as war for ex.) in past ten years. (He looks back, with very careful analysis, at real commodity prices for past 100 years).

Bag it and tag it
Guest

Sorry I can’t find a link, but watching BNN this morning they posted that bankruptcies in Canada increased 13% from October to November.

pricedoutfornow
Guest

@Anonymous:
Re: rentals. Not sure if this year is any different than any other year, but we’ve been scoping out different places to live in our East Van neighborhood. There seems to be a ton of supply right now, I keep seeing the same landlords advertising over and over again, they just can’t seem to find tenants. Often the rents keep going down too, on certain properties. A lot of these properties are those that were for sale in the spring, couldn’t sell, now trying to rent (often unsuccessfully). Soft rental market, at least where we live.

Bag it and tag it
Guest

#2 VMD
Great info. Any chance of getting Oct-Dec data? I’m very curious.

Yellow Helicopter
Guest
@Anonymous 4&5 and @Girlbear, I also live in the West End and have seen the same thing. We moved downtown in 2007 and at that time, you had to practically beg to get an apartment here – show up in your finest, references in hand, with 30 other people there at the same time, and be ‘interviewed’ by the landlord. Things are definitely changing -but I wonder if it’s because of the high ownership rates? If 70% of people own, who is left to rent, other than the transient student types? (And us bears. 😉 )
Mick Murphy
Guest

Home values in region decreasing
Notable decreases in Whistler, the Sunshine Coast, and Vancouver’s West Side

http://www.news1130.com/2013/01/02/home-values-in-region-decreasing-in-value/

RaggedyRenter
Member

@VMD,
I also ran the same spreadsheet yesterday
I saw the same trend in Coquitlam SFH nearby a friend’s purchase, it starts under-assessed, peaked in April (+6%) and goes downhill afterwards, by October it’s -6%

I’m wondering if this is the same trend in any other year, but more pronounced due to the price correction in the latter half of the year.

Best place on meth
Guest
China officials, fearing crackdown, are dumping illicit properties http://www.fcpablog.com/blog/2013/1/2/china-officials-fearing-crackdown-are-dumping-illicit-proper.html# Real estate agents in Guangdong and Jiangsu provinces are reportedly scrambling to sell a “torrent” of properties suddenly thrown onto the market by officials fearing exposure ahead of an expected anti-corruption crackdown. A Jiangsu official was overheard barking into his mobile, “Sell these four houses for me as soon as possible. Don’t sell them any cheaper than two million yuan (US $319,660) each. Quick, quick, this is how we will settle it.” In theory, officials are required to disclose all their assets to higher-ups on an annual basis. Loopholes and spotty… Read more »
yvr2zrh
Member

Re: Assess v. Sale price.

For December, I had already done Van-West Detached.

The sale price for December was 9% below assess on average.

An Observer
Guest

Perfect storm building against Vancouver real estate and the economy… in my opinion we’re going to be flirting with the worst economic period in our history in this region over the next 4 years… Happy New Year!

gokou3
Guest

@ Ford Prefect #7

Those who down-voted my “Like Garth Turner said, price inflation and asset deflation” probably voted because it’s said by Garth Turner as opposed to disagreeing with what he said.

southseacompany
Member

Press release from BC Assessment, including examples of local market trends for different unit types.

http://www.bcassessment.ca/News%20Releases/Vancouver%20Sea%20to%20Sky%202013%20Assessment%20Roll%20News%20Release%20FINAL.pdf

The examples show change from July 1, 2011 to July 1, 2012, so much of this is past history already in today’s quickly changing market. Interesting none the less.

Makaya
Member

If you haven’t seen it yet, here is Larry’s latest inventory chart for the three RE Boards of the region (Vancouver, Fraser Valley, Chilliwack).

The starting inventory this year is a lot higher than previous years…

gokou3
Guest

Re: #12

So in UBC Real Estate expert Tsur Somerville’s world, “flat” means down 3-6%. You know what hits the fan by the time he says “down slightly”. Oops, he just said it.

RaggedyRenter
Member

It’s always going to be flat.
As we go on, he’ll just say
“You know, if you look at a period from 2011 to now, we’re pretty flat”
“You know, if you look at a period from 2010 to now, we’re pretty flat”
“You know, if you look at a period from 2009 to now, we’re pretty flat”
“You know, if you look at a period from 2008 to now, we’re pretty flat”

Remember the YO2Y stats? It will show up soon on the monthly report

Bull! Bull! Bull!
Guest

VMD and yvr2zrh deliver two high quality posts. They are the best posters on this blog. It’s interesting that they also post a lot less frequently from other regulars.

Maybe some should make resolutions to post less 😉

Just Looking
Guest
@Name Taken While I don’t disagree that there is waste in government, I would also suggest that there is waste in the private sector that often gets ignored by those who argue that that it would be much more efficient if the private sector ran the show. I haven’t seen a good study on this, though – anyone know where some objective data on this might be found? The other aspect that those who share your view often ignore is Baumol’s Cost Disease. Essentially Baumol’s theory describes the notion that some industries drive the expansion of productivity of a given… Read more »
Makaya
Member

@Bull!

Maybe some should make resolutions to post less

I guess that includes yourself, right?

Dan
Guest

@gokou3 #17

I voted it down because BC’s latest y-o-y CPI inflation was an almost deflationary 0.1%! ie. Garth was dead wrong on price inflation.

http://www.statcan.gc.ca/daily-quotidien/121221/dq121221b-eng.htm

wpDiscuz