Now is an exciting time to be living in Vancouver - we’re at a critical crossroad where we’re faced with solving massive problems around housing affordability, population growth, and environmental impact. The choices we make today around our land use and transportation planning will shape what we become, and whether we start solving these problems, or just make them worse.

I remember back in my UBC days writing my final term paper of my Real Estate degree on Transit Orient Development (TOD), when everything clicked. My young naïve eyes light up as I suddenly understood how our cities evolved and expanded alongside advances in transportation: from the origins of the railway, to street cars, and most recently to cars (which made possible urban sprawl)

Back then the idea of creating, walkable, pedestrian oriented communities in the suburbs where people would ditch their cars and walk out to the grocery story, meet their neighbours for a coffee and take transit to work seemed like a brilliant idea….but a tad unrealistic? We can all agree it’s a lovely concept, but how many people are actually willing to ditch their cars? And which comes first, the density needed to sustain the massive investments needed in infrastructure or vice versa?

Tranist Oriented Development in Vancouver

Fast forward a few years and these seemingly distant fantasies are now becoming the new standard of planning and development here in our region.  Forward thinking municipalities are looking at key SkyTrain Corridors as the answer for accommodation our growing population needs and tackling affordability.

Over the past few years, we’ve seen massive transformations centered around key SkyTrain Stations, to what are now some of the most sought after neighbourhoods in the city. Take a look for example at some of the recent developments around the Canada Line, Olympic Village and Cambie & 8th.

View Larger Map

More recently we saw Marine Gateway (currently sold out and under construction), where the first suites to sell out were the ones without designated parking stalls. And next on the drawing board, is the redevelopment of Oakridge Town Centre.

The City of Burnaby leads the way on Transit Orient Redevelopment

Looking further across the region, the City of Burnaby has been at the forefront, leading the way in developing visions for its four Town Centers, and proactively approving redevelopment projects around key Skytrain Stations. The recently approved redevelopment of Brentwood Town Centre is a perfect example.

Once a dated mall, on the busy corner of Willingdon & Loughheed – the redevelopment plans for the Brentwood Town Centre have it poised to become the vibrant heart of the Brentwood neighbourhood. This is prime case study of forward thinking concepts driven by key New Urbanism principles like building on a human scale, emphasis on walkability, transit access and mixed uses. The idea is to get people out of their cars and bring life back into the community - creating a sense of place where they can walk, shop, eat, meet neighbours, and transit to work.
 

On my end it’s been interesting to see this play out with homebuyers and sellers. More and more I’ve seen proximity to SkyTrain as becoming a determining factor for homebuyers and investors, especially around key stations with redevelopment. Brentwood is increasingly becoming a hotspot for first time homebuyers and young families who like the conveniences of living in a urban area, like downtown, but at a more attainable price point.

What once seemed like idealistic theories of New Urbanism & Transit-Oriented-Development, are now becoming a reality here in our cities. 

Downtown



Attached (Condos & Townhomes) – Balanced Market





The market remained in balanced condition as sales decreased 12% from March, and the number of active listings increased 8%.

Demand for condos under $700,000 has remained steady with the total number of sales almost unchanged from the previous month, while sales of condos $800,000+ decreased significantly.

Currently total sales for condos downtown are 30% below what we saw last year at this time, while listings are 16% below April 2012 activity.

Vancouver Westside




Detached – Balanced Market 









The market remained in balanced market conditions as sales decreased 5% from March, and the number of active listings increased 8%.

The market for homes priced under $2 Million showed strong signs of sellers market conditions – with the return of bidding wars on select properties-  while homes priced over $2 Million are in buyers market conditions.

Attached (Condos & Townhomes) – Balanced Market








The market remained in balanced market conditions as sales decreased 6% from March, and the number of active listings increased 9%.




 


Vancouver Eastside




Detached – Sellers Market




The market moved up into sellers market conditions as the number of sales increased 40% from March, and the number of active listings increased 17%









Attached (Condos & Townhomes) – Balanced Market









The market cooled into balanced market conditions, as sales decreased o 15%, and active listings increased 25% from March.
Compared to this time last year, listings are up 8%, while total sales are down 44%. 


 

North Vancouver




Detached – Sellers Market









The market remained in sellers market conditions as sales increased 5% compared to March, and the total number of listings increased 23%







Attached (Condos & Townhomes)- Balanced Market









The market remained balanced conditions, as sales increased 14%, and the number of active listings increased 16%. 




 


West Vancouver



Detached - Buyers Market









The market remained in buyers market conditions, as sales increased 5% compared to March, while inventory of active listings increased 15%








Attached (Condos & Townhomes) - Buyers Market








The market cooled into buyers market conditions as sales increased 16% compared to March, and the number of active listings increased 9%.

 


Richmond

 

Detached - Buyers Market









Sales increased 22% compared to March, while inventory of active listings increased 9%







Attached (Condos & Townhomes) - Balanced Market








Sales increased 23% compared to March, while the number of active listings decreased 1%.

For a copy of the complete April 2013 report including both condo & detached home sales throughout Metro Vancouver & Greater Vancouver, you can email me, or use the link below to subscribe to future monthly reports.






The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.


If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

More good news for my friends and clients! I've recently partnered with TELUS and have negotiated a special offer for new subscribers - Receive 40% of TELUS Optik TV & Internet for your first year. Save up to $500-$1000, and receive VIP service, including priority handling and priority scheduling.

This offer applies to new TELUS subscribers. Exisiting TELUS Internet & TV subscribers unfortunately don't qualify for the 40% off discount. However you can receive a special gift, of 2 free VOD credits

If you're interested in taking advantage of this offer contact me at adina@vancouvercondoshop.com

March sales showed double digit increases from the previous month, varying between 30%-50% increases across Metro Vancouver submarkets, while total number of listings remained stable. This brought more balance to the market, as the sales to active listings ratio moved up to up to 15% - for the first time since last spring. Most markets were in balanced market conditions, with certain segments showing clear signs of sellers market conditions.

Downtown



Attached (Condos & Townhomes) – Balanced Market




Sales increased 32% from February, while the number of active listings remained unchanged.


*The most active price bands in March were:

• $300,000- $600,000, with sales up 30% from February
• $1.25M-$1.5M, with sales more than 4 x February sales


Vancouver Westside




Detached – Balanced Market 








The market moved up into balanced market conditions as sales increased 45% from February, and the number of active listings decreased 3%.

* The most active price bands were between $1M-$1.75M, which showed definite signs of sellers market conditions, with roughly one in every two homes selling (45% sales to active listings ratio)
 

Attached (Condos & Townhomes) – Balanced Market







The market remained in balanced market conditions as sales increased 30% from February, and the number of active listings increased 2%.



 


Vancouver Eastside




Detached – Balanced Market



The market remained in balanced market conditions as the number of sales increased 22% from February, and the number of active listings increased 4%







 

Attached (Condos & Townhomes) – Sellers Market








The market moved up into sellers market conditions, as sales increased 51%, and active listings increased only 1% from February.



North Vancouver




Detached – Sellers Market








The market moved into sellers market conditions as sales increased 53% compared to February, and the total number of listings increased 4%





 

Attached (Condos & Townhomes)- Balanced Market








The market remained balanced conditions, as sales increased 19%, and the number of active listings increased 6%. 



 


West Vancouver

 

Detached - Buyers Market








Sales increased 84% compared to February, while inventory of active listings increased 3%






 

Attached (Condos & Townhomes) - Balanced Market







Sales increased 20% compared to February, while the number of active listings decreased 1%.
 


Richmond


Detached - Buyers Market








Sales increased 3% compared to February, while inventory of active listings increased 1%







Attached (Condos & Townhomes) - Balanced Market







Sales increased 54% compared to February, while the number of active listings increased 2%.
 

For a copy of the complete March 2013 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.






The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.
 

If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

On April 1, 2013 BC said goodbye to the Harmonized Sales Tax, HST, and returned to the dual taxes systems: Provincial Sales Tax, PST, and Goods and Services Tax, GST.

Since the introduction of HST, there has been a lot of confusion and misinformation about how the tax affected those in the housing market. And now with HST out, much of the confusion still lingers for home purchasers and sellers.  Here is a quick overview of how these changes will directly impact those currently in the housing market

* Please note this is for information purposes only & is not a definitive guide.  For more information consult a tax professional

BUYERS

Buyers of Resale Homes

Neither HST, or GST/PST, are payable on homes that have already been occupied. Buyers of re-sale homes can expect to see no direct impact with the new rules

Buyers of New Homes

Under the HST system, 12% HST was payable on the purchase price of a newly constructed home, with several provincial and federal rebates available to purchasers to help offset the cost.

As of April 1, 2013 purchasers of newly constructed homes, will now pay 5% GST, instead of HST. PST is not payable on new homes

Where new construction began before April 1, 2013 but ownership and possession occur after, purchasers will also pay a new temporary Transition Tax of 2%, in addition to the 5% GST

• Applicable to the full purchase price of a new home which is 10 per cent or more complete by April 1st and where completion and possession occur on or after April 1, 2013 but before April 1, 2015.
• The additional tax is aimed at providing a more even playing field for buyers of new homes both during and after the HST period.
• New housing transition rules will be in effect from April 1, 2013 – March 31, 2015 and apply to new housing only

Rebates for New Home Buyers

With the elimination of the HST comes the end of the New Housing Rebate program. The Federal GST Rebate program will still be in effect as follows:

• Properties less than $350,000 will qualify for a full federal GST rebate.
• Properties between $350,000 and $450,000 will qualify for a pro-rated federal GST rebate.
• Properties selling more than $450,000 will be exempt from rebate.

SELLERS

If you are selling your home, and completion and possession occur after April 1, 2013,  only 5% GST will be payable on realtor commissions.

For more information visit the BC Government's HST Transition Rules website >>

Home sales across the region have trended below historical averages for a full year now, with February sales down 29% compared to this time last year. Last month's sales were the second lowest February totals we've seen since 2001. The chart below summarizes market activity compared to last year across Greater Vancouver:
 

February 2013 - Greater Vancouver Market Snap-Shot

That said, we saw both sales and listing activity continue to rise in February as buyers and sellers continued to come back in from the sidelines. This was especially true in the condo and townhome segments - as the Downtown, Westside, and North Vancouver submarkets all moved up into Balanced market conditions. The Vancouver Eastside condo and townhome market also remained in Balanced market conditions. 
 

Downtown



Attached (Condos & Townhomes) – Balanced Market



The market moved into balanced market conditions as sales increased by 21% from January, and the number of active listings increased 15%
.

Vancouver Westside




Detached - Buyers Market 







Sales increased 26% from January, while the number of active listings increased 14%.

Attached (Condos & Townhomes) – Balanced Market







The market moved into Balanced Market conditions as sales increased 43% from January, and the number of active listings increased 12%.



 

Vancouver Eastside




Detached – Buyers Market


The market moved into balanced market conditions as the number of sales increased 37% from January, and the number of active listings increased 16%






Attached (Condos & Townhomes) – Balanced Market







The market remained in Balanced Market conditions, as sales increased only slightly by 1%, and active listings increased 10% from January.



North Vancouver




Detached - Balanced Market







The market is on the cusp of balanced market and sellers’ market conditions as sales increased 45% compared to January, and the total number of listings increased 18%





Attached (Condos & Townhomes)- Balanced Market







The market moved back into balanced conditions after a slow January, as sales increased 40%, and the number of active listings increased 17%. 


 

West Vancouver


Detached - Buyers Market







Sales decreased by 18% compared to January, while inventory of active listings increased 24%





Attached (Condos & Townhomes) - Buyers Market






Sales increased 114% compared to January, while the number of active listings increased 6%.

Richmond


Detached - Buyers Market







Sales increased by 40% compared to January, while inventory of active listings increased 7%





Attached (Condos & Townhomes) - Buyers Market






Sales increased 23% compared to January, while the number of active listings increased 14%.


For a copy of the complete February 2013 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.






The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.

If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

If you’re a first time homebuyer in the market for a new home, you have until the end of the month to buy and claim your bonus $10,000 BC Tax Credit.

B.C. First-Time New Home Buyers' Bonus expires March 31, 2013
 

First time homebuyers have until March 31, 2013 to purchase and take ownership of a newly built home, if they want to claim their $10,000 BC First-Time New Home Buyers’ Bonus.

In order to qualify for the one-time bonus, basic criteria is:

• You must be a First-Time Home Buyer
• The home must be newly constructed home, and HST payable
• You must take ownership or possession of the home before April 1, 2013

More Details on the BC First-Time Home Buyers' Bonus>>

Homes purchases after April 1, 2013 will not longer be subject to HST. Instead purchasers will pay 5% GST plus an additional 2% BC Transition Tax (effective until April 2015). To calculate and compare the net amount of tax payable unber HST & the new GST system you can use online calculators like this one HST Calculator

If you purchased your first home last year, you may qualify for two tax credits on your 2012 tax return.

1. First-Time Home Buyers' Tax Credit (HBTC)

What is the Home Buyers' Tax Credit (HBTC)?


The HBTC is a non-refundable federal tax credit, based on an amount of $5,000, for first time home buyers that acquired a qualifying home in 2012.

How is the new HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2010) by $5,000. For 2012, the credit should be $750.

Who is eligible for the HBTC?


You can qualify if:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.


How do I claim the HBTC?


Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.
 

Do I have to submit any supporting documents with my income tax return?
No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA)
 

For complete information on the Home Buyers’ Tax Credit (HBTC) visit the CRA's website >> 


2. The BC First-Time NEW-HOME Buyers' Bonus  

If you purchased a brand new home after February 21, 2012,  and paid HST, you may qualify for an additional $10,000 personal income tax credit.

For more information on The BC First-Time New Home Buyers’ Bonus click here >>

Downtown

 

Attached (Condos & Townhomes) – Buyers Market


Sales increases by 35% compared to December, while the number of active listings increased 25%
.

Sales of condos priced between $300,000-$400,000 doubled from the previous month.

Vancouver Westside


 

Detached - Buyers Market 






Sales increased 67% from December, while the number of active listings increased 28%.



Attached (Condos & Townhomes) – Buyers Market






Sales increased by 9% from December, while the number of active listings increased 21%.


 

Vancouver Eastside




Detached – Buyers Market

The number of sales remained unchanged from December sales, while active listings inventory increased 15%




Attached (Condos & Townhomes) – Balanced Market






The market remained in Balanced Market conditions, as sales increased 25%, and active listings increased 17% from December

 

North Vancouver




Detached - Balanced Market






The market remained in Balanced market conditions as sales increased 60% compared to December, while inventory increased 32%



Attached (Condos & Townhomes)- Buyers Market






The market slipped into Buyers Market conditions as sales decreased 5% compared to Deceember, and the number of active listings increased 20%.

Sales of condos priced under $500,000 were on par with December numbers, while condos priced over $600,000 experienced the biggest decline in sales. 

West Vancouver


Detached - Buyers Market






Sales increased 31% compared to December, while inventory increased 15%



Attached (Condos & Townhomes) - Buyers Market





Sales decreased 22% compared to Deceember, while the number of active listings increased 17%.

 

For a copy of the full January 2013 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.




The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.

If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Market activity finished the year off continuing on its downward trend that started during the second half of this year. Overall 2012 was a year of below average homes sales, typical listing activity and declines in prices. 

The most signifcant decreases in sales and prices were seen in detached home markets on the Westside and in Richmond. 

Downtown
 

Attached (Condos & Townhomes) – Buyers Market

Sales decreased by 42% compared to November, while the number of active listings decreased 33%
.

Sales of condos priced up to $400,000 remained strong with an average 1 in 5 listings selling, while sales of condos over $800,000 were much slower with less than 1 in 15 listings selling. 

Vancouver Westside

 

Detached - Buyers Market 





Sales decreased 36% from November, while the number of active listings decreased 25%.

Attached (Condos & Townhomes) – Buyers Market





Sales decreased 26% from November, while the number of active listings decreased 34%.



Vancouver Eastside


 

Detached – Buyer’s Market
The market slipped into Buyer’s Market conditions, as sales decreased 38% from November, and active listings inventory decreased 30%


Attached (Condos & Townhomes) – Balanced Market





The market remained in Balanced Market conditions, as sales decreased 37%, and active listings decreased 29% from November.
 

North Vancouver


 

Detached - Balanced Market





Both sales and active listings decreased, 47% and 34% respectively compared to November.

Attached (Condos & Townhomes)- Balanced Market





The market remained in Balanced Market conditions. Sales decreased 32% from November, while active listings decreased 33%.
 

West Vancouver
 

Detached - Buyers Market





Sales decreased 3% compared to November, while inventory decreased 11%



Attached (Condos & Townhomes) - Buyers Market




Sales increased 13% compared to November, while the number of active listings decreased19%.

For a copy of the full December 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.




The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.

If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Home sales in Greater Vancouver decreased 12% in November compared to the previous month. Meanwhile the total number of active listings also decreased compared to last month by approximately 10%. This simultaneous decrease has kept the overall sales to active listings ration unchanged from October at 11%, indicating Buyer's Market conditions across the region.

As with previous months, we've seen certain submarkets improve in favour of sellers, while conditions in other submarkets continue to favour buyers. Below is a quick snapshot of market activity over the past month

Downtown

Attached (Condos & Townhomes) – Buyers Market
Sales and inventory both decreased, 8% and 9% respectively from October.
 

Vancouver Westside
 

Detached - Buyers Market 




Sales decreased 24% from October, while inventory decreased 12% 





Attached (Condos & Townhomes) – Buyers Market




Sales decreased 15% from October, while inventory decreased 11%

 

Vancouver Eastside

 

Detached – Balanced Market



The market moved in Balanced Market conditions, and the sales to active listings ratio increased to 16%. Sales decreased 2% from October, while inventory decreased 14%
 

Attached (Condos & Townhomes) – Balanced Market




The market moved in Balanced Market conditions, as sales increased and inventory decreased, pushing the sales to active listings ratio up to 17%.  Sales increased 18% compared to October, while inventory decreased 11%.
 

North Vancouver

 

Detached - Balanced Market




Both sales and inventory decreased, 23% and 17% respectively compared to the past month.

* This was after we saw sales increase 73% last month. Sales of detached homes priced between $700,000-$1,000,000 showed signs of a sellers market.

Attached (Condos & Townhomes)- Balanced Market




Sales increased 4% from October, while inventory decreased 15%.

West Vancouver

Detached - Buyers Market




Sales decreased 39% over October, while inventory decreased 11%

Attached (Condos & Townhomes) - Buyers Market




Sales decreased 38% over October, while inventory increased 10%.

For a copy of the full November 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.


 

The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.

If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Just about everyone has an opinion on the market. ‘I heard the market’s really down now?’...’Yesterday’s paper said the market is ___”...” My neighbor just sold his house and… ‘ etc.

So how is the market actually doing? The answer depends on what market you’re talking about. Are we talking about Greater Vancouver or Metro Vancouver? Multimillion dollar homes on the Westside, or entry level condos downtown?

The media talks about ‘average prices’ and overall ‘market activity’, and creates buzz worth headlines that make for great stories and getting people emotionally charged. There’s just one small problem, these stories, although entertaining to read, don’t mean much for someone who is considering buying or selling their home.

A very real example of this can be seen on Vancouver’s Westside. Looking at the graph below you can see that since 2010 the detached home market has taken off completely from the condo apartment & townhome market.

The black line marking the residential ‘average’ shows us that average prices have increased about 13% since 2010 and are on their way down. But what does that really mean?
 

Neither condos, townhomes, or detached homes followed this trend. As far as I know, there is no hybrid detached-condo home you can physically purchase or sell. You are either buying a condo apartment, townhome or detached house. Here we see that while the apartment & condo market has remained relatively stable over the past 5 years, the detached market has shot up over 35%.

Since the peak in April of this year, the detached market on the Westside has been headed on a downward trajectory, with average prices decreasing by almost 9%. Whereas the condo apartment & townhouse markets have remained stable, with modest price decreases of 2-3% since April.  If we were to dig deeper, we’d see that certain neighbourhoods and price bands actually experienced ‘sellers market conditions’ and price increases this year, while other neighbourhoods experienced total buyers market conditions and price decreases. But we’ll leave that for another day

What’s the moral of the story here? Talking about ‘the market’ can be a fun pastime, and there’s nothing wrong with that. However when you want to make smart decisions that will maximize your wealth, it’s important to understand what’s actually happening in your specific submarket. No one I know made their fortunes by following the headlines or popular opinion of the day.

The real estate market started to rebound in October, as sales increased and new listings eased off, from September activity. Total sales across Metro Vancouver increased 27% from the previous month, and active listings decreased 19% from the previous month.  

October also marked the first month since March this year that we saw an increase in the Sales to Active Listings Ratio, as it increased to 11% from 8%.  Overall conditions continue to favour buyers, however certain price bands that are in high demand from buyers are showing signs of balanced and/or sellers market conditions. 

Downtown

Attached (Condos & Townhomes) – Balanced Market



Sales up 17% from September, while inventory decreased by 2%.

Sales of condos under $400,000 increased 30% over the previous month, and are showing signs of sellers market conditions with 1 in 4 condos selling. 

Vancouver Westside

Detached - Buyers Market 



Sales up 19% from September, while inventory decreased 3% 





Attached (Condos & Townhomes) – Buyers Market



Sales up 39% from September, and inventory up 2%

The largest increase in sales was in the $500,000-$700,000 price band, where sales more than doubled over the previous month.

Vancouver Eastside


Detached – Buyers Market



Sales up 24% from September, while inventory decreased 8%

Attached (Condos & Townhomes) – Buyers Market



Sales decreased 3% from September, and inventory decreased 1%.

Sales of condos priced under $500,000 remained steady compared to the previous month, while sales of condos over $500,000 decreased.



North Vancouver


Detached - Balanced Market



Sales up 73% over September, while inventory decreased 7%.

Sales of detached homes priced between $700,000-$900,000 showed signs of a sellers market, with an average of 1 in 3 homes selling in October.

Attached (Condos & Townhomes)- Buyers Market



Sales up 46% from September, inventory down 2%.

Sales of condos priced between $300,000 and $600,000 increased 58% over the previous month.

West Vancouver

Detached - Buyers Market



Sales increased 20% over September, while inventory decreased 4%

Attached (Condos & Townhomes) - Buyers Market



Sales remained flat compared to September, while inventory increased 12%.

For a copy of the full October 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.



The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type.





If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

The City of Vancouver has set the ambitious goal of becoming the greenest city in the world by 2020, and we're making progress. Here is an infographic released by the city on the progess we've made & what's on the horizon.

One thing that caught my eye is that '93% of Vancouver residents currently live within a 5 minute walk to green space'...talk about quality of living.

As expected, we’ve seen a surge of new activity over the past month, after the dry spell we experienced in August. Since early September both sellers and buyers have been steadily returning to the market.

We’ve seen an increase in new listings of 31% from August, and several high-profile condo pre-sale projects launching. However, it seems buyers are still somewhat uncertain and are taking longer to decide. So despite the increased activity, the number of closed sales has not kept pace in most submarkets. 

Many sellers are still resisting price reductions, and in many cases have stalled offer negotiations, further contributing to slower sales volumes. Despite declining sales, average prices have only modestly dropped compared to this time last year. 



The markets with the largest price reductions, are the same markets that have experienced the largest price increases over the past 3 years. For example, prices of detached homes on the Westside are down 6.5% from last year...after increasing 37% over the past 3 years. 

Downtown

Attached (Condos & Townhomes) – Buyers Market


Total inventory up 2% compared to August, while sales dropped by 4%.
 

Vancouver Westside

Detached - Buyers Market 


Inventory increased by 6% compared to August, while sales also increased 6%. 



Attached (Condos & Townhomes) – Buyers Market


Inventory increased 7% over August, while and sales decreased 26%.
 

Vancouver Eastside
 

Detached – Buyers Market


Inventory increased 8%, and sales down 6% over August.

Attached (Condos & Townhomes) – Buyers Market


Inventory increased 14% over August, sales increased 7%.

 

North Vancouver
 

Detached - Buyers Market


Inventory up 24% from August, while sales decreased 12%.

Attached (Condos & Townhomes)- Buyers Market


Inventory up 22%, while sales down 10% over July.
 

West Vancouver

Detached - Buyers Market


Inventory increased by 11%, and sales increased 71% over August.

Attached (Condos & Townhomes) - Buyers Market


Inventory increased 10%, and sales up 18% over August.
 



For a copy of the full September 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.

The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type



If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Market activity continued on its downward trend last month, with active listings hitting the lowest level yet this year, and sales declining to 39% below than 10-year average. This was the lowest selling August we’ve seen since 1998.

Sellers however have been resistant to reducing their prices, and despite declining sales, average prices have remained almost unchanged from a year ago.

Both inventory and sales slipped across most of the submarkets last month, compared to the previous month.

Downtown

Attached (Condos & Townhomes) – Buyers Market

Total inventory decreased by 12% compared to July, while sales dropped by 14%. The $200k-400k price band continues to be the most active.

Vancouver Westside

Detached - Buyers Market

Inventory decreased by 7% compared to July, while sales decreased a modest 4%. 

The $1M-1.75M price band continues to be very active, while properties over $2.25M continue to be the most affected by the slowdown. In August there were 616 homes over $2.25M listed on the MLS on the Westside, of those, only 35 successfully sold.

Attached (Condos & Townhomes) – Buyers Market

Inventory and sales declined a modest 7% and 8% respectively over the previous month.

Vancouver Eastside

Detached – Buyers Market

Inventory down 6%, and sales down 29% over July.

Attached (Condos & Townhomes) – Buyers Market

Inventory down 4%, sales down 34% over July.

We saw a big decline in demand for homes between $500k-$800k on the Eastside last month, with only 9 homes selling in this price range (compared to 27 the previous month). The most active price band is $200k-$500k, and the most desirable neighbourhoods are Main, Knight, Fraser, Fraserview and Grandview.

North Vancouver

Detached - Buyers Market

Inventory down 2%, sales down 15% over July.

Attached (Condos & Townhomes)- Buyers Market

Inventory down 13%, sales down 25% over July.

West Vancouver

Detached - Buyers Market

Inventory down 4%, sales down 48% over July. Of the 479 homes listed on the market, only 24 of them sold last month.

Attached (Condos & Townhomes) - Buyers Market

Inventory down 4%, sales down 42% over July.

*On an interesting note, average prices of attached homes in West Vancouver shot up from $650,000 to $1,395,000 last month! As one of the 11 total sales was priced over $5M....this makes for a perfect example of how using ‘averages’ for markets that have varied segments and submarkets can lead to newsworthy headlines that don’t actually mean anything…even though they may be technically correct.

For a copy of the full August 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.

The key indicator for identifying whether we’re in a  ‘Buyers Market’ vs a ‘Balanced’ or ‘Sellers Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type

If you'd like to receive a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

In July we saw a further reduction to buyer demand by 18% across the Greater Vancouver market. This made for the lowest selling July since 2000, and gives the upper hand to buyers as we are now in Buyer’s Market conditions

Below are a few highlights from July activity:

Downtown

Attached (Condos & Townhomes) – Buyer’s Market
Total inventory remained stable while sales decreased 13% over June . The $200k-500k price band continues to be the most active.

Vancouver Westside

Detached - Buyer's Market
Inventory remained stable, while sales decreased 20% over June.

Attached (Condos & Townhomes) – Buyer’s Market
Inventory remained unchanged, while sales down 16% over June. The $200k-400k price band continues to be the most active, with the hottest markets being seen in Mt. Pleasant, Kits & Fairview.

Vancouver Eastside

Detached - Balanced Market
Inventory up 5%, and sales up 3% over June. The submarkets of Fraser, Main, Grandview and Mt Pleasant continue to be the most active, and are in fact showing signed of seller’s markets.

Attached (Condos & Townhomes) - Balanced Market
Inventory down 7%, sales down 22% over June. The most active price band is $300k-$700k, and the most desirable neighbourhoods are Main, Mt. Pleasant, Fraser, Fraserview and Grandview.

North Vancouver

Detached - Balanced Market
Inventory down 7%, sales down 18% over June

Attached (Condos & Townhomes)- Buyer’s Market
Inventory down 6%, sales down 8% over June

West Vancouver

Detached - Buyer's Market
Inventory and sales remained almost unchanged from the previous month.

Attached (Condos & Townhomes) - Buyer 's Market
Inventory up 2%, sales increased 26% over June.

For a copy of the full July 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.

The key indicator for identifying whether we’re in a  ‘Buyer’s Market’ vs a ‘Balanced’ or ‘Seller’s Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type

If you'd like to recieve a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

This week city transportation planners released a new plan for tearing down the Georgia & Dunsmuir Viaducts and replacing it with a "super-road". This latest plan would free up the valuable real estate beneath the viaducts and allow for up to 85,000 sq ft of new housing in the Strathcona neighbourhood, as well as increased park space for the long awaited Creekside park.

"The plan calls for a new road that sweeps north from Pacific Boulevard and links up with Prior, Main and Quebec streets. Georgia Street would be extended to Pacific down a five per cent grade so gentle planners say it will accommodate people in wheelchairs.

Westbound vehicle access to Dunsmuir would stop, but a bicycle and pedestrian bridge would connect from a planned park to Dunsmuir Street above.

The proposal also calls for a broad bicycle and pedestrian mall on the west side of a future park linking Carrall Street with False Creek, and an additional 13 per cent park space could be added to the 9 hectares (22 acres) already committed for completion." Read More (Vancouver Sun Article)

Over the past couple of months the city has accelerated plans for the future of the viaducts; originally proposed as a 15-20 year project, these latest plans could see the demolition starting almost immediately. The plan is yet to undergo a final review, but so far councillors from both Vision Vancouver and the NPA seem to support this preliminary proposal.

Read more about the City of Vancouver's plan for the Georgia & Dunsmuir Viaducts>>

Below is a copy of the previous plan put forward to community for feedback back in June 2012

Sales dropped last month shifting most markets into 'Buyer's' * or low-end 'Balanced' * market conditions. What goes up must come down...it seems that the markets that were most heated during this time last year, where buyers where in a frenzi to outbid each other on over priced homes (ie. $2.5M+ homes on the Westside), are the ones that have taken the most serious beating during the past couple of months. Whereas the markets we saw more stability in, like the entry condo market, seem to be more resiliance.

Detached Property Market
The detached property market experienced a dramatic decline in sales across all markets. Markets on the Westside, Eastside, West Vancouve,r and even North Vancouver and Richmond, all saw the  total number of sales decrease by 17-40% from the previous month. Total number of sales on the Westside and in North Vancouver dropped to less than half of what they where this time last year, while invenory almost doubled.

Attached Property Market (Condos & Townhomes)
Sales of condos and townhomes also slowed down in June but much less so than the detached market. The downtown condo market has remained fairly stable in the $300k-$600k price bands, with almost unchanged inventory and sales down only modestly, while strong demand for entry level condos on the Eastside kept the market in 'Seller's'* market conditions, as sales rose 10% from the previous month. The most active price band across all markets continued to be the $300k-$800k price bands.

Below are a few highlights from June activity:

Downtown

Attached (Condos & Townhomes) - Low-end of Balanced Market

Vancouver Westside

Detached - Buyer's Market

Attached (Condos & Townhomes) - Low-end of Balanaced Market

Vancouver Eastside

Detached - Balanced Market

Attached (Condos & Townhomes) - Seller's Market

North Vancouver

Detached - Balanced Market

Attached (Condos & Townhomes)- Balanced Market

West Vancouver 

Detached - Buyer's Market

Attached (Condos & Townhomes) - Buyer 's Market

For a copy of the full June 2012 report including both condo & detached home sales throughout Metro Vancouver, you can email me, or use the link below to subscribe to future monthly reports.

The key indicator for identifying whether we’re in a  ‘Buyer’s Market’ vs a ‘Balanced’ or ‘Seller’s Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type

If you'd like to recieve a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Last week the government announced major changes to our mortgage rules for government-backed insured mortgages (mortgages with less than 20% down). Essentially these changes return us to the guidelines that were in effect prior to 2004.

These will apply to buyers with less than 20% downpayment.

1. Maximum amortization is reduced from 30 years to 25 years.
2. The maximum an individual can borrow when refinancing will be lowered to 80% from 85% previously.
3. The maximum gross debt service ratio (GDS) - the percentage of a buyers income than can be used towards mortgage payments, property taxes, strata fees and utilities - reduced from 44% to 39%, and total debt-service ratio (TDS) reduced to 44% from 45%.
4. Homes worth more than 1 Million will require at least 20% downpayment.
5. Lines of credit will be capped at 65% of the property value (previous announcement).

Buyers have until July 9th, to enter into a binding contract of purchase if they want to take advantage of the existing rules. Buyers who have purchased homes under the current rules with 25+yr amortizations will be grandfathered in and be able renew their mortgages with their current lenders.

What effect will this have on the market?

It’s expected that these rules will have a disproportionate impact on first time homes buyers. Last year approx 40% of new mortgages were amortized over 25+years, compared to 25% for total outstanding mortgages.The reduction in the maximum allowable amortization period from 30 years to 25 years will reduce purchasing power of first-time buyers and will raise the barrier to entry. Most likely we’ll see a sharp increase in sales in the next few weeks as buyers rush to take advantage of the current rules, followed by slower than normal activity.

Given that the Bank of Canada is expected to keep rates low for the foreseeable future, these new rules are one way the government is trying to cool down the market and ensure that homeowners don’t overextend themselves.

For more info and what industry experts and analysts are saying:
20 Observartions on the New Mortgage Rules

The Metro Vancouver market remained in 'balanced' territory in last month with a sales to active listings ratio of 16%. Over the past month, listings have continued to increase bringing the total number of active listings on the market to the highest levels we've seen since spring 2010. Both sales and prices have remained stable during this time.

The most significant shifts have been in the high-end detached home markets in both Vancouver Westside and West Vancouver Markets in the $2.5M+ price range. With Listings up significantly, and sales down both markets are showing strong signs of Buyer's Market.
 

Most other sub-markets have remained in either 'balanced' or 'seller's market' conditions. Strong demand for entry level homes, specifically for $300,000-$600,000 condos and $600,000-$1M detached homes continues, and multiple offer situations are still common in hot neighbourhoods like Mount Pleasant, Main, Fraser and North Vancouver.Below are a few highlights from May activity:

Downtown

Attached - Balanced Market
Both listings and sales were up slightly from the previous month, maintaining an 18% sales ratio. Sales of condos in the $0-$400,000 price range have remained strong, with conditions favouring sellers.
 

Vancouver Westside

Detached - Buyer's Market
Inventory of new listings has been rising sharply since Feb and the number of total listings is almost double that of last spring. The market of homes in the $2.75M+ range are in a definite buyer's market, with only 21 of the 523 listings selling in May.

Attached - Balanaced Market
 

Vancouver Eastside

Detached - Seller's Market
The $600k -$1.25M range continues to lead the market, with conditions favouring sellers, and multiple offers still common place. 

Attached - Seller's Market
Conditions continue to favour sellers, although the market has cooled slightly from the previous month with inventory up, and sales down.
 

North Vancouver

Detached - Seller's Market
The $600k -$1M range continues to be very active, with strong demand and limited supply.

Attached - Balanced Market
 

West Vancouver

Detached - Buyer's Market
The $1M-$2M price band continues to be very active, with conditions favouring sellers, while the $2.25M+ market has slowed considerably with only 22 of the total 296 homes selling.

Attached - Seller's Market
 

For a copy of the full May 2012 report including both condo & detached home sales throughout Metro Vancouver, please email me, or use the link below to subscribe.

The key indicator for identifying whether we’re in a  ‘Buyer’s Market’ vs a ‘Balanced’ or ‘Seller’s Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type

If you'd like to recieve a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Chances are that if you've been exposed to the local media here over the past couple of weeks you're familiar with the following

• We're one of the most expensive cities in the world for housing
• We're one of the most livable cities in the world
• Our housing market is in a bubble
• .....the bubble's going to pop any minute now
• ...wait maybe we're not in a bubble?
• Our real estate is being snatched up by foreigners forcing prices further out of reach 

One thing is for sure though, us Vancouverites love talking about the market....and by 'talking about' it's mostly polarized into 'complaining about' (in the case of frustrated home buyers) or 'bragging about' (in the case of home proud sellers) the market. 

So when exactly were the Golden Years, when there was an abundance of housing stock, affordable homes, and local ownership for local occupancy? Local journalist Jesse Donaldson decided to do some digging and find out. Here's a great article he wrote for Open File Vancouver:

 Space Cases: 100 Years of Complaining  

Watch Bob Rennie's full speech at the Urban Development Institute's Luncheon on May 17, 2012

Bob Rennie, Vancouver's condo king presented his annual market forecast to a room full of city's most prominet real estate development professionals at the Urban Development Institute yesterday. His conclusion: Vancouver is not a Bubble Story

A self proclaimed optimist, Rennie delivered his perspective on the market, and why Vancouver is not showing signs of a bubble. What I like about him, and his presentations on the market, is that he always backs his options up with numbers (and not just his numbers that he pulls out of the air, these are number from a third party). A few market trends to consider:

Income to Price Ratios:

Looking abck at 2011, of the 19,000 condo sales in Metro Vancouver the average price was $427,000, which requires an income of $66,000 to finance. If however you take out the top 20% of sales, and look at the remaining 80% the average price last year was $315,000 which requires an average income of $52,800 to finance. 

“With the 80 per cent of the [condo] market that traded in [Metro] Vancouver last year, you only needed a household income of $52,800 to purchase. That’s not a bubble story.” - Bob Rennie

Baby Boomers:

Looking at population growth between 2009 and 2018,

• The number of people between 55 -64yrs will increase 38%
• The number of people between 65 -74yrs will increase 56%
• While the number of those 35-54yrs will increase a modest 4.6%

These aging baby boomers are sitting on approximately $88 Billion in equity in Greater Vancouver, which will be freed up in the next 15 years and fuel local demand as they downsize and help their kids get into the market. 

There's no doubt that we are expensive, and the average income here will not get you the same size or type of home you could get in other major cities across Canada, but let's face it, when it comes to quality of living Vancouver is unlike any other city in Canada. Our city is one of the most attractive and desirable cities in the world.  

Read Vancouver Sun Article: Condo king says talk of bubble just a lot of hot air>>

Listen to Bob's summary of his  presentation at the 2012 UDI Forecast Luncheon (9min)>>

Below are some quick highlights of market activity in the different condo submarkets here in Vancouver, based on the Sales to Active Listings Ratios for April 2012. 

Vancouver Downtown

• Overall is showing signs of a balanced market with a Sales Ratio of 18%
• Hottest neighbourhoods: West End, Downtown
• Most active price range: $300,000-$500,000
• Least active price range $1Million 

Vancouver Westside

• Hottest neighbourhoods: Fairview, Mount Pleasant W, Marpole
• Most active prince range: $0 -$400,000
• Least active price range: $600,000-$800,000 and $1M-$1.25M

Vancouver Eastside

• Hottest neighbourhoods: Main St, Mount Pleasant E, Knight, Hastings, Grandview, Fraserview & Champlain Heights
• Most active price range: $300,000-$900,000
• Least active price range:$900,000-$1.25M

For a copy of the full April 2012 report including both condo & detached home sales throughout Metro Vancouver, please email me, or use the link below to subscribe. 

The key indicator for identifying whether we’re in a  ‘Buyer’s Market’ vs a ‘Balanced’ or ‘Seller’s Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type

If you'd like to recieve a comprehensive market report detailing activity and Sales Ratios broken down by neighbourhoods each month you can do so here Subscribe to Monthly Report

Lately I’ve been getting an increasing number of questions from clients and friends on what’s happening in the real estate market, ‘How’s the market?’...’I heard prices are down __%’...’Last night on the news they said the market is coming down”...etc.

So how is the market actually doing? The answer depends on what market/sub-market you’re talking about. Real estate market activity varies greatly between different neighbourhoods and price points, and is influenced by factors including the number of homes on the market, buyer demand and buyer psychology.

In an effort to keep my clients and friends informed on what’s actually happening in the market I’ve decided to start sending out easy to read monthly summary reports with a breakdown of market activity in Vancouver’s different neighbourhoods and price points. If you’d like to subscribe to this monthly report you can do so here Subscribe to Monthly Report

Understanding Sales Ratio & Market Type

The key indicator for identifying whether we’re in a  ‘Buyer’s Market’ vs a ‘Balanced’ or ‘Seller’s Market’ is the Sales Ratio. Essentially this ratio tells us how many homes are selling of the total number of homes for sale in the market for a given month. Click the following link for more information Understanding Sales Ratio & Market Type

What’s happening in the Downtown condo market?

Looking at the Downtown condo market last month we can see that the market as a whole was ‘Balanced’ with a Sales Ratio of 18.5%. If we break that down by price points  we can see that the $300,000 - $500,000 price band was the most active and is currently in a Seller’s Market (Sales Ratio over 21%). In contrast condos over $1Million dollars are not selling at the same pace, and are currently in a Buyer’s Market (Sales Ratio less than 14%) ....so if you have some extra cash lying around and want to buy yourself a luxury condo in Coal Harbour give me a call! lol

We've seen an increase in the number of listings coming on to the market and total inventory up 9% from March 2012. At the same time, sales have slowed down and are 16% less than the previous month. The average number of days on the market is approximately 24 days, and the average sale price is 4% less than list price.  

To subscribe to my monthly reports with a detailed breakdown of the stats specific to your neighbourhood click here Subscribe to Monthly Report

Last week I attended a talk by the infamous Bob Rennie on the condo market here in Vancouver. A few topics that he covered included the numbers behind the recent Marine Gateway project (which sold out within a matter of hours of launching), the progress on the Olympic Village sales, and more generally the need for more density in our city to be able to keep up with population growth. 

Here are a few takeaways from his talk:

• By 2026 the population in Vancouver (not metro Vancouver, but in the city itself) is expected to increase by 94,000 people.
• To keep up with this increased demand we will need approximately 53,000 new homes. 
• Since our supply of land is so limited the only way we can tackle affordability is by increasing density, and building more homes (ie. condos) on the limited land we have. 
• The best locations to maximize density are around transportation hubs, particularly around skytrain stations.
• A large proportion of pre-sale buyers (almost 2/3rds) in our market are 'passive investors', who already own a home and are buying for investment/rental purposes. For the most part these investors are not 'speculators', and they are putting down 20% (which is our big difference versus our US counterparts who buy with very little down), and are buying with a long term outlook. 
• These passive investors are absolutely critical to our supply of rental housing.

If you want to catch a glimse of Bob here's a link to his appearnace on Studio 4 with Fanny Kiefer recently>>

As of December 13, 2011 Depreciation Reports have become mandatory requirements for all strata corporations consisting of 5 or more units. Strata corporations have to 2 years to comply with this new legislation and have their reports prepared.

Although this is a new development here in BC, Depreciation Reports are common practice in other regions such as Ontario and much of the US.

What is a Depreciation Report?

Depreciation Reports, also known as Reserve Fund Studies, are useful planning tools to establish long term planning for common property* and common assets owned by strata corporations (the property owners). They assess the current condition of all common assets, the expected remaining lifetime of building systems and physical components, and identify a reasonable estimate of the replacement costs associated with their future replacement. 

For a comprehensive guide to depreciation reports please visit The Condominium Home Owners Association of BC (CHOA) Depreciation Report Information Guide. 

* For more information on Common Property and the role of Strata Corporations read  'Understanding Condos' 

How will this impact our condo market here in Vancouver?

Currently many strata corporations in our province are not effectively planning for capital maintenance expenditures. Their focus is on keeping maintenance fees low, and often as a result needed expenditures are deferred (which incidentally has been shown to increase the total cost of such projects by 30-50% in the end). Since these expenditures are not properly planned for or saved for by way of maintenance fees, the costs to complete these projects is funded by way of special levies, which can be very costly (anywhere from a few thousand, to over tens, sometimes hundreds of thousands  dollars per unit) and come as a surprise to many condo owners & recent purchasers.

All in all these reports are going to be very advantageous for both current condo owners and prospective buyers, who will now have a clear picture of what state the building is currently in and what kinds of costs they can anticipate in the future.

With this however, we are also anticipating some significant changes. Two big ones will include:

Maintenance Fee Increases

It is expected that many strata corporations will opt to increase monthly maintenance fees. One of the goals of introducing these reports is that strata corporations will be encouraged to do a better job of planning for and saving for major expenses. One way to do this is to have owners contribute more money towards the contingency reserve fund every month as part of their strata maintenance fees.

At a recent seminar I attended, Tony Gioventu, Executive Director of the Condominium Homeowners Association (CHOA) pointed out that currently if we compare the average monthly contribution condo owners make to the contingency reserve fund here in BC it’s $22/month, compared to $80-100/month in Ontario.

Although many owners and condo buyers fear high maintenance fees, this is not a bad thing (depending on how these funds are being spent of course). If these funds are properly allocated and used to proactively address needed maintenance projects, home owners may actually save money in the long run.**

** By deferring needed maintenance projects to avoid paying for them, many strata corporations waste a shocking amount of money - the end cost of these projects has been shown to increase by 30-50% when deferred.

Changes in Property Values

The introduction of mandatory Depreciation Reports is expected to produce a dynamic shift in our condo property values here in Vancouver. This will create greater transparency for buyers and will affect how much buyers are willing to pay for a similar condo in one building, versus one in another building. Up until now it has sometimes been difficult for buyers to assess the exact state of a building and when major expenses relating to major asset replacements will be expected. With these reports in hand buyers will now have a very clear picture of what’s going on and what to expect down the line. Buildings that have not been keeping up or effectively planning for needed capital maintenance projects will likely suffer in terms their of property values.

Read CHOA's information guide on Depreciation Reports in BC >>

Darcy Wintonyk and Lynda Steele, ctvbc.ca
Date: Wed. Apr. 11 2012 12:31 PM ET

The much hated Property Transfer Tax celebrates its 25th birthday this spring, and like the never-ending airport improvement fees, consumers say the tax has outlived its original intent.

The PTT arrived in 1987, the same year Jon Bon Jovi topped the charts with "Livin on a Prayer" and the Loonie made its debut. Back then the average home price in greater Vancouver was just over $147,000.

It was in those very different times that former premier Bill Vander Zalm introduced the Property Transfer Tax – one per cent on the first $200,000 of a home's sale price and two per cent on the remainder.

"The idea of it was that we were going to tax speculation and wealth -- so you had 95 per cent of the homes at that time below that $200,000 threshold," said Eugen Klein of the Real Estate Board of Greater Vancouver (REBGV)

But a quarter century makes a big difference. The average price of a detached home in greater Vancouver now is just over $1.03 million, but the tax threshold remains locked at $200,000.

Klein said if the PTT was applied to only the top five per cent of all home sales today, as it was intended, the $200,000 threshold would need to be raised to more than $1.4 million in greater Vancouver.

Only 2.5 per cent of homes sold on the Multiple Listing Service in greater Vancouver in 2011, or 839, sold for less than $200,000

Read more (CTV News Article - April 11, 2012) >>>

 It's tax time! And although that's not something most people get terribly excited about, it could be good news if you bought your first home last year. 

If you were a first time home buyer, and purchased a qualifying home last year, you may be able to claim an extra credit on your income taxes this year via the Home Buyers' Tax Credit (HBTC) incentive program. 

1. What is the home buyers' tax credit (HBTC)?

The HBTC is a non-refundable tax credit, provided by the Government of Canada to help first-time home buyers. It is based on an amount of $5,000, and is offered for certain home buyers that acquire a qualifying home (see below).
 

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2011) by $5,000. For 2011, the credit will be $750.

3. Who is eligible for the HBTC?

You can claim an amount of $5,000 for the purchase of a qualifying home made in 2011, if both of the following apply:

• You or your spouse or common-law partner acquired a qualifying home.
• You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

4. What is a qualifying home?

A qualifying home must be registered in your and/or your spouse's or common-law partner's name in accordance with the applicable land registration system, and must be located in Canada. It includes existing homes and homes under construction.

The following are considered qualifying homes:

• single-family houses;
• semi-detached houses;
• townhouses;
• mobile homes;
• condominium units; and
• apartments in duplexes, triplexes, fourplexes, or apartment buildings.

5. If I buy a house, can my spouse or common-law partner claim the HBTC?

Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750.

6. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.

7. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA).
 

For more information on the HBTC watch this video from the CRA >>>

Since the announcement of the budget yesterday, there has been quite a bit of excitement about this new $10,000 First-Time New Home Buyer's Bonus. And of course, as with most things we've seen that are HST related, quite a bit of confusion also.

Here are some facts about the BC First-Time New Home Buyers' Bonus:

• It is a one-time refundable personal income tax credit worth up to $10,000
  • (The bonus is equal to 5% of the purchase price of the home to a maximum of $10,000)

• Comes into effect Feb 21, 2012 until March 31, 2013 

• To qualify:
  • Purchasers must be first-time home buyers, purchasing the home for use as their primary residence. 
  • The home must be a NEW home that is purchased from the builder/developer, or is owner-built
  • The written agreement to purchase must be enetered into after Feb 21, 2012
  • Construction of the home is complete, or the home is occupied before April 1, 2013

• The amount of the bonus is gradually reduced for high income earners based on net household income. (see link below for full information)

• This bonus is in addition to the existing New Housing Rebates in place.

Fact sheet on the First-Time New Home Buyer's Bonus can be found here >>

Finance Minister Kevin Falcon announced today that British Columbia will be returning to the PST system on April 1, 2013. He also announced the rules for how this transition will apply to the sale of new homes between now and then. 

As part of the transition process, starting April 1 of this year the government will significantly increase the threshold for its HST New Housing Rebate program. This means homes up to $850,000 will now be subject to the rebate. This is a signifcant increase from the former threshold of $525,000.

The government will ablso be introducing a rebate for new second and recreational homes costing up to $850,000. 

More information can be found at:

Today's  HST Transition Rules announcement  
Vancouver Sun - HST Transition Rules For New Homes

Complete information on the re-introduction of PST
PST in BC website- New Home Purchases

In case you needed a reminder on why Vancouver is one of the best places on earth to call home, here it is...

Bob Rennie: Help Transform Where We Live—Take the Urban Futures Survey from PlaceSpeak on Vimeo.

Share your input! Take the short survey and share what matters to you, and how you think our city should develop. 
www.UrbanFuturesSurvey.com

Average performance predicted for housing market in 2012

The British Columbia Real Estate Association (BCREA) recently released its 2012 First Quarter Housing Forecast Update.

“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, BCREA Chief Economist.

BC Multiple Listing Service® (MLS®) residential sales are forecast to increase 2.1 per cent from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7 per cent to 80,500 units in 2013. The 15-year average is 79,000 unit sales. A record 106,310 MLS® residential sales were recorded in 2005.

"While European sovereign debt concerns and a sluggish US economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir.

Home prices in most BC markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand. The average MLS® residential price in the province is forecast to edge down 2.2 per cent to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8 per cent to $553,000.

Thinking of buying a new home and wondering how much HST will really cost you?

* First of all it’s important to clarify that HST is only applicable on the sale of newly constructed (or substantially renovated) homes. It is not added to the price of resale homes. For more information on how HST affects homebuyers click here.

Sales of newly constructed or substantially renovated homes are now subject to an HST tax of 12% on the purchase price. Fortunately there is some relief to help offset this tax from both the Federal and Provincial levels.

If you are buying a newly constructed home and plan to use it as your primary residence, you may qualify for two rebates: the BC New Housing Rebate and the Federal GST/HST New Housing Rebate.

WHAT IS THE BC NEW HOUSING REBATE?

The BC New Housing Rebate is a rebate of 71.43% of the provincial component of the HST paid (7% - formerly known as PST), up to a maximum of $26,250. The rebate maxes out at a purchase price of $525,000 and then stays flat at $26,250 for properties above that threshold. 

WHAT IS THE FEDERAL GST/HST NEW HOUSING REBATE?

The Federal New Housing Rebate is a rebate applied to the federal component of the HST paid (5%- formerly known as GST). The rebate reduces the federal part of the HST paid from 5% to approximately 3.5% for homes valued at $350,000 or less. The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000.

SO HOW MUCH WILL HST COST ME AS A BUYER?

As you can see calculating this net HST payable on new homes can be a bit of a pain for buyers (I know it has been for me!). 

Thankfully I recently came across this online calculator put out by the British Columbia Real Estate Association (BCREA) which helps you figure out exactly how much tax you’ll pay net of rebates. See for yourself, click the link below: 

SHELTER TAX CALCULATOR FOR BC

** You’ll see that this calculator accounts for HST, as well as Property Transfer Tax (PTT) which is 1% on the first $200,000 and 2% on the remainder of the purchase price. First Time Homebuyers buying a home under $425,000 are exempt from this PPT. (A partial exemption is available for homes between $425,000-$450,000) 

Download the complete REBGV October 2011 Stats Package >>

I recently attended an event at the Vancouver Board of Trade that featured some very well respected and prominent members of our real estate community discuss the supposed ‘housing bubble’ affecting the Vancouver housing market.

The panel of experts featured:

• Richard Wozny, Principal, Site Economics Ltd.
• Eugen Klein, Commercial Real Estate Investment, Klein Group; President-Elect, Real Estate Board of Greater Vancouve
• Ward McAllister, President & CEO, Ledingham McAllister Properties Ltd.

And was moderated by David Podmore, Chairman & CEO of Concert Properties.

Each speaker presented various facts and figures based on their respective perspectives, and all arrived at the same conclusion: Vancouver does not have a housing bubble.

The basic facts presented were that Vancouver’s housing market is affected by two main factors: 1) We are seeing very strong and steady demand and 2) our supply of new housing has been, and continues to be limited. Both of these trends are expected to continue in the forseeable future.

On the demand side:

•  Canada (and especially BC), has been in somewhat of a cocoon, as it has remained relatively strong and resilient in spite of the financial catastrophes that have impacted the US & Europe. 
• Real Estate is seen as a hedge investment in times of great uncertainty and risk – this makes Vancouver even more attractive to the international investor
• Infrastructure creates value in real estate. On the global scale Vancouver rates very high on the terms of Infrastructure (hard, soft & environmental), making it very attractive & desirable as a city to live and invest in. 
• Strong Immigration: According to CMHC stats we have 42,000-45,000 people moving to the GVRD each year, and they need places to live. In order to keep up with the population growth we need to build 17,000-25,000 new homes every year. 

On the supply side:

• Looking at our housing starts we are actually going to be slightly undersupplied over the next few years in comparison to demand. In 2011 we are expected to have 16.300 housing starts , and in 2012 that is expected increase modestly to 17,500. (We need 17,000-25,000 new starts annually to keep up with current population growth)

 Yes, Vancouver does have an affordability issue that is impacting the young middle class working resident. This is one of the biggest challenges we are now faced as a city. However our high prices are driven by supply and demand which are very real, not by speculation, and what we are seeing is not in fact a housing bubble. 

One of the many reasons to build up density in our beautiful city... 

More (wisely planned) density + better transportation = more efficient use of our land and ressources. Yet another reason I love condo living :) 

Affordable housing is a hotly debated issue here in Vancouver, and rightfully so, being as we’re often labelled as one of the most unaffordable cities in the world. Affordability is a huge issue for a broad spectrum of residents here in the lower mainland, not just for those living below the poverty line. Working in this industry, and also being in the 25-35yr age group here in Vancouver (that is often left feeling hopeless when the talk of home ownership comes up), it’s clear to see how this growing problem is affecting so many middle class residents. Many young well-educated, career-oriented individuals from teachers, nurses to corporate employees, with household incomes of $50,000-$80,000, are effectively priced out of the housing market. In my opinion this is one of the biggest issues that needs to be tackled here in our city. When many people hear the term ‘affordable housing’ they automatically think of housing for the homeless (which is of course a huge issue for us here), but affordable housing needs to also address this large segment that sits in the middle of the housing spectrum, and I’m happy to see is that we’re starting to give more attention to.

Here is a recent talk by Dr. Avi Friedman Thinking Outside the Box about Affordable Housing, which was hosted by SFU Centre for Dialogue.

A few points he made that stuck with me were:

• Housing is a defining instrument that can ensure all of us live on equal footing. We cannot afford to build a two-tiered society, because once we do that Canada is not longer Canada. It is El Salvador or Guatemala. We need to give everyone an opportunity to make it
• The housing construction sector is a huge generator of jobs and economic activity. It helps on both the supply side and demand side (by providing jobs & incomes for residents)
• The way we’ve been building housing is very archaic. Compared to the amount of innovation we’ve seen in the car industry and computers for example, there has been very little (to no) innovation in how we build homes.
• Our demand issue: We often criticize the influx of overseas investors and immigrants (particularly from Asia) for driving up prices above affordable levels. The reality is that we live in one of the most desirable cities in the world, and even if demand from Asia was slowed down that would only make more room for others (such as retirees from Alberta and other parts of Canada and the world) who also have Vancouver as their target.
• Life is about tradeoffs. We cannot have it all. (This reminded me of one of my favourite sayings ‘you can have anything, but you can’t have everything’). Affordable housing is achievable – what are we willing to trade-off to get it? What’s more important to us right now than this?
• Some of the biggest constraints we face here in Vancouver that are hampering supply of affordable housing are our extremely high cost of land, and bureaucracy at the municipal level. A big complaint I hear from my colleagues in the development industry is the outrageous costs of Community Amenity Contributions (CACs) for re-zoning which makes development in some prime locations (such as along the Cambie Corridor) almost infeasible..the result is that we're not making the highest and best use of our land. 
• We have a problem here, and stakeholders need to stop pointing fingers and come work together to solve it. As Peter Ladner says in the end ‘A lot more is possible than what we’re doing now, we need break through and open up our imaginations.’ We need to think outside the box.

Download the complete REBGV May 2011 Stats Package >>

Download the complete REBGV April 2011 Stats Package >>

March marks a strong start to the spring season. Activity in the Greater Vancouver housing market continued to strengthen in March with both the number of homes sold and added to the region’s Multiple Listing Service® (MLS®) reaching near record levels.

RESIDENTIAL PROPERTY SALES – UP 30% from last year

4,080 homes were sold in March 2011. This is represents a 30% increase from February 2011 and a 30% increase from the same month last year. This comes close to the all-time sales record for March which we saw in 2004 where 4,371 transactions were recorded.

HOUSING PRICE INDEX – UP 5% from last year

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5% per cent to $615,810 in March 2011 from $584,435 in March 2010.

• The benchmark price for detached properties increased 8% from March 2010 to $866,806.
• The benchmark price of an apartment property increased 2% from March 2010 to $403,885.
• The benchmark price of an attached unit increased 4% from March 2010 to $511,039

NEW LISTINGS – DOWN 3% from last year

6,797 properties were newly listed in March 2011. This represents a 3% decrease from March 2010, which was a record setting year with 7,004 new listings. This marks a 19% increase compared to the new listings we saw in February.

At, 13,110, the total number of residential property listings on the MLS increased 10% in March compared to last month and decreased 3%from the same month last year

SALES OF DETACHED PROPERTIES – UP 34% from last year

1,795 detached homes sold in March 2011. This is an increase of 34% from last year and a 100% from March 2009.

SALES OF APARTMENT PROPERTIES – UP 30% from last year

1,622 apartment properties sold in March 2011. This is an increase of 30% from March 2010, and an 66% increase compared to March 2009.

SALES OF ATTACHED PROPERTIES – UP 21% from last year

There were a total of 663 attached property sales in March 2011. This marks a 20% increase from March 2010, and a 69% increase from March 2009.

Download the complete REBGV March 2011 Stats Package >>
 

Housing demand for continued to be strong across Greater Vancouver in February, with particularly high sales volumes occurring in Richmond and Vancouver Westside. For the past two months, the number of properties listed for sale and those sold on the MLS in Greater Vancouver outpaced the 10-year average in both categories.

RESIDENTIAL PROPERTY SALES – UP 25% from last year

3,097 homes were sold in February 2011. This is represents a 70% increase from January 2011 and a 25% increase from the same month last year. Looking at this from the big picture, this outpaces the 10 year average of 2,742.

HOUSING PRICE INDEX – UP 3% from last year

Demand was up across the region in February with an intensity of activity seen in hotspots like Richmond and Vancouver West. Single detached homes in Richmond and the west side of Vancouver remain the most sought after properties in our marketplace.

Between November 2010 and February 2011, the MLSLink® Housing Price Index (HPI) benchmark price of a detached home in Richmond increased $190,739 to $1,099,679; in Vancouver West, detached home prices increased $222,185 to $1,850,072. In comparison, detached home prices across the region increased $51,762 between November 2010 and February 2011 to $848,645.

• The benchmark price for detached properties increased 6% from February 2010 to $848,645.
• The benchmark price of an apartment property increased 2% from February 2010 to $399,397.
• The benchmark price of an attached unit increased 2% from February 2010 to $507,118

NEW LISTINGS – UP 24% from last year

5,693 properties were newly listed in February 2011. This represents a 24% increase from February 2010 and a 19% increase compared to the 4,801 new listings we saw in January.

At, 11,925, the total number of residential property listings on the MLS increased 14% in February compared to last month and increased 5%from this time last year

SALES OF DETACHED PROPERTIES – UP 43% from last year

1,402 detached homes sold in February 2011. This is an increase of 43% from last year and a 139% from February 2009.

SALES OF APARTMENT PROPERTIES – UP 12% from last year

1,206 apartment properties sold in February 2011. This is an increase of 12% from February 2010, and an 85% increase compared to February 2009.

SALES OF ATTACHED PROPERTIES – UP 18% from last year

There were a total of 489 attached property sales in February 2011. This marks a 18% decrease from February 2010, and a 101% increase from February 2009.

Download the complete REBGV February 2011 Stats Package >>
 

We've still got it! For the fifth year in a row, Vancouver tops the list of the world's most liveable cities according to the annual sruvey by the Economist Intelligence Unit. The survey ranks cities based on 30 factors including healthcare, culture and environment, and education and personal safety. 

Read full article here>>

Burnaby is about to see a new addition to its skyline. Towering 511' high Bosa's latest project, titled Sovereign, is set to be Burnaby's tallest building. Located across the street from Metrotown, the 45 storey highrise is expected to complete 2014. Sales are set to start on Feb 19th, 2011

LOCATION | Kingsway and Willingdon, Burnaby

PROJECT SIZE | 45 storeys, 202 Units

DEVELOPER | Bosa Properties.

ARCHITECT | Chris Dikeakos Architects Inc.

OCCUPANCY | Estimated 2014

NOTES ABOUT SOVEREIGN |

• The first 19 floors will be a hotel with its own separate entrance and elevators (the hotel chain has yet to be announced), so the residences start on the 20th floor. Every unit is said to come with spectacular views.
• Amenities will include: pool, lounge, gym, rooftop garden and concierge
• All units come with one parking and one locker the Estate Suites & Penthouses will have 2. Additional parking can be purchase from the developer.

For more information and pricing for Sovereign click here>>

Did you purchase your first home in 2010? As a first time home buyer you could qualify for the Home Buyers’ Tax Credit (HBTC) which entitles you to a tax credit of $750 on your 2010 taxes.
 

1. What is the home buyers' tax credit (HBTC)?

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009.
 

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2010) by $5,000. For 2010, the credit should be $750.
 

3. Am I eligible for the HBTC?

You will qualify for the HBTC if:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
   

4. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.
 

5. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA)

For complete information on the Home Buyers’ Tax Credit (HBTC) click here>> 

 

The Greater Vancouver housing market remained in balanced market conditions in January, although higher levels of buyer demand were seen in some of the region’s largest communities, namely Richmond and Vancouver West.

“There was a healthy balance between the number of home buyers and sellers in our market in January, but there’s always variation in activity from region to region,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). "We’re seeing strong sellers’ market conditions in areas like Richmond and the west side of Vancouver.”

Here are the stats for January 2011 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES – DOWN 5% from last year

1,819 homes were sold in January 2011. This is represents a 4% decline from December 2010 and a 5% decline from the same month last year. Looking at this from the big picture, it is slightly higher than the 10 year average of 1,790.

HOUSING PRICE INDEX – UP 3% from last year

The MLSLink® Housing Price Index (HPI) benchmark price has come up about 3% on average across the Greater Vancouver region compared to January 2010. However this past year we have seen a lot of variation across different markets. Richmond has been a hotbed of activity and as a result has shown the greatest price appreciation, with prices rising 23% over last January, followed by Vancouver West where the average rose by 12%.

• The benchmark price for detached properties increased 3% from January 2010 to $810,045.
• The benchmark price of an apartment property increased 1% from January 2010 to $390,935.
• The benchmark price of an attached unit increased 3% from January 2010 $495,140.

NEW LISTINGS – DOWN 7% from last year

4,801 properties were newly listed in January 2011. This represents a 7% decline from January 2010 and a 182% increase compared to the 1,699 new listings we saw in December (2010).

At 10,438, the total number of residential property listings on the MLS increased 6% in January compared to last month and increased 2% from this time last year.

SALES OF DETACHED PROPERTIES – UP 13% from last year

793 detached homes sold in January 2011. This is an increase of 13% from last year and a 171% from January 2009.

SALES OF APARTMENT PROPERTIES – DOWN 21% from last year

713 apartment properties sold in January 2011. This is a decline of 21% from January 2010, and a 98% increase compared to January 2009.

SALES OF ATTACHED PROPERTIES – DOWN 4% from last year

There were a total of 313 attached property sales in January 2011. This marks a 4% decrease from January 2010, and a 187% increase from January 2009.

Download the complete REBGV January 2011 Stats Package >>
 

Thinking of buying a new home and wondering how much HST will really cost you?

* First of all it’s important to clarify that HST is only applicable on the sale of newly constructed (or substantially renovated) homes. It is not added to the price of resale homes. For more information on how HST affects homebuyers click here.

Sales of newly constructed or substantially renovated homes are now subject to an HST tax of 12% on the purchase price. Fortunately there is some relief to help offset this tax from both the Federal and Provincial levels.

If you are buying a newly constructed home and plan to use it as your primary residence, you may qualify for two rebates: the BC New Housing Rebate and the Federal GST/HST New Housing Rebate.

WHAT IS THE BC NEW HOUSING REBATE?

The BC New Housing Rebate is a rebate of 71.43% of the provincial component of the HST paid (7% - formerly known as PST), up to a maximum of $26,250. The rebate maxes out at a purchase price of $525,000 and then stays flat at $26,250 for properties above that threshold. 

WHAT IS THE FEDERAL GST/HST NEW HOUSING REBATE?

The Federal New Housing Rebate is a rebate applied to the federal component of the HST paid (5%- formerly known as GST). The rebate reduces the federal part of the HST paid from 5% to approximately 3.5% for homes valued at $350,000 or less. The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000.

SO HOW MUCH WILL HST COST ME AS A BUYER?

As you can see calculating this net HST payable on new homes can be a bit of a pain for buyers (I know it has been for me!). 

Thankfully I recently came across this online calculator put out by the British Columbia Real Estate Association (BCREA) which helps you figure out exactly how much tax you’ll pay net of rebates. See for yourself, click the link below: 

SHELTER TAX CALCULATOR FOR BC

** You’ll see that this calculator accounts for HST, as well as Property Transfer Tax (PTT) which is 1% on the first $200,000 and 2% on the remainder of the purchase price. First Time Homebuyers buying a home under $425,000 are exempt from this PPT. (A partial exemption is available for homes between $425,000-$450,000) 

This morning Jim Flaherty announced 3 regulation changes engineered to mitigate household debt levels in Canada. With mortgage delay payments up 50% & household debt identified by the IMF as the #1 risk to the Canadian economy, the following changes will take effect on March 18th, 2011:

1.   Max amortization shortened from 35 to 30 years.
2.   The max Canadians can borrow to refinance their mortgages will be lowered from 90% to 85%
3.   The government will no longer insure secured lines of credit.

Shortening the maximum amortization from 35 to 30 years has the immediate effect of eroding purchasing power by 7.5%. Under the current regulations, someone making $60,000 with no debts would qualify for $508,000.* With the new rules, that same person would only qualify for $470,000 -- a reduction of roughly $38,000.*

*assuming no property taxes, no heat costs, 3.89% 5 year fixed, no GDS & TDS of 44.

This article was contributed by Ryan Zupan, Mortgage Planner with The Mortgage Centre - City Wide.

To get pre-approved or talk about your mortgage needs contact Ryan at:

p| 604.250.6122
e|  zupan.r@mortgagecentre.com
w| www.ryanzupan.com 

Over the past four months we’ve seen steady home sales in Greater Vancouver, indicating a healthy level of stability. Generally we are seeing properties sit on the market longer and sell for less than asking, but properties that are properly priced are indeed selling especially in faster moving markets like downtown Vancouver.

We’ve seen less and less inventory come onto the market, coupled with steady buyer demand, which has eased downward pressure on prices. 

“We’ve seen a lot more consistency and less volatility in recent months when it comes to both number of sales and pricing, although it’s important to remember that conditions often vary between communities and neighbourhoods,” Jake Moldowan, Real Estate Board of Greater Vancouver (REBGV) president said.

Here are the stats for October 2010 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES - DOWN 37% from last year
2,337 homes were sold in October 2010

• This represents a 5% increase compared with September 2010
• In comparison, this represents a 71% increase over the 1,364 residential sales in October 2008, a 23% decline compared to October 2007’s 3,028 sales, and an 14% decline compared to October 2006’s 2,722 sales.

Total active property listings posted on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 14,075, a 9% decline from last month and a 16% increase from October 2009.

NEW LISTINGS - DOWN 26% from last year
3,698 properties were newly listed in October 2010

HOUSING PRICE INDEX - UP 7% from last year
According to the MLSLink® Housing Price Index (HPI), the benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5% to $579,349 in October 2010 from $553,702 in October 2009. Since June, however, residential home prices in Greater Vancouver have remained relatively unchanged, declining 0.2 %.

• The benchmark price for detached properties increased 6% from October 2009 to $796,883.
• The benchmark price of an apartment property increased 2% from October 2009 to $390,074.
• The benchmark price of an attached unit increased 4% from October 2009 to $487,530.

SALES OF DETACHED PROPERTIES - DOWN 34% from last year
976 detached homes sold in October 2010. Although this is a significant decrease compared to last year, this represents a 98% increase compared to sales in October 2008 where 493 units were sold.

SALES OF APARTMENT PROPERTIES - DOWN 39% from last year
984 apartment properties sold in October 2010. This is a 52% increase compared to sales in October 2008.

SALES OF ATTACHED PROPERTIES - DOWN 38% from last year
There were a total of 377 attached property sales in October 2010. This marks a 68% increase from October 2008 sales.

Download the complete REBGV October 2010 Stats Package >>

 

Vancouver home sales in September continued along the same path we saw in late this summer in July and August. We saw a slowing stream of listings come onto the market with healthy buyer activity, fuelled primarily by low interest rates. Although many people were reporting we were in a ‘buyer’s market’, the conditions we’re seeing seem to indicate that we’re in fact experiencing ‘balanced market’ conditions. This means that buyers can take their time to find the right place (compared to the rushed frenzy we saw last year) but should not expect to find rock bottom prices from desperate sellers. And sellers can expect that their property will sell within a reasonable amount of time if priced appropriately.

Compared to this time last year sales have dropped off significantly, however as I mentioned before it’s important to keep this in perspective and remember that last year we were experiencing some of the highest sales activity on record. 

Here are the stats for September 2010 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES - DOWN 37% from last year
2,220 homes were sold in September 2010

• This represents a 1% increase compared with August 2010
• In comparison, this represents a 40% increase over the 1,585 residential sales in September 2008, a 20% decline compared to September 2007’s 2,776 sales, and an 11.9 per cent decline compared to September 2006’s 2,519 sales.

“We’ve seen fewer properties coming on to the market over the last three months. This trend, combined with the continued attraction of low interest rates, is likely having the effect of less downward pressure on home prices,” Jake Moldowan, REBGV president said.

Total active property listings posted on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 15,401, basically unchanged compared to last month and a 22% increase from September 2009. Over the last three months, active listings in the region have declined 12%.

NEW LISTINGS - DOWN 18% from last year
4,731 properties were newly listed in September 2010

“We saw signs of more stability in our marketplace last month than we have seen since spring based on a variety of indicators that we look at each month,” Moldowan said. “At 56 days, it took, on average, three days less to sell a home in our region compared to August. This is the first month-over-month decline we’ve seen in this category since April.”

HOUSING PRICE INDEX - UP 7% from last year
Since spring, housing prices have decreased about 3% compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 5.5% to $577,174 in September 2010 from $547,092 in September 2009. This price remains consistent to last month, rising just 0.1% from August.

• The benchmark price for detached properties increased 7% from September 2009 to $790,992.
• The benchmark price of an apartment property increased 4% from September 2009 to $388,373.
• The benchmark price of an attached unit increased 5% from September 2009 to $490,385.

SALES OF DETACHED PROPERTIES - DOWN 39% from last year
866 detached homes sold in September 2010. Although this is a significant decrease compared to last year, this represents a 59% increase compared to sales in September 2008 where 535 units were sold.

SALES OF APARTMENT PROPERTIES - DOWN 35% from last year
971 apartment properties sold in September 2010. This is a 27% increase compared to sales in September 2008.

SALES OF ATTACHED PROPERTIES - DOWN 40% from last year
There were a total of 383 attached property sales in September 2010. This marks a 39% increase from September 2008 sales.

Download the complete REBGV September 2010 Stats Package >>
 

 

Despite the recent run up in prices we’ve seen here in Vancouver over the past several years, which has misled many into thinking they can buy and flip in short periods of time for big profits, real estate should really be thought of as long term investment. And who better to take advice from than someone who’s been in the business for a very long time. Meet George W. Johnson, a 97-year old real estate agent who has been working in the Seattle market for over 74 years!

Johnson’s main piece of advice is “buy a house today if you can, but don’t sell one if you don’t have to”. Real estate is cyclical in its very nature, and Johnson has been witness to many of these booms throughout his 74 year career. The main lesson he says he’s learned though the ups and downs is that after every housing recession the market has “gone higher than the one before”. So the trick is to hold on and weather the storm. This reminds me of some advice I received from a mentor of mine when I was first starting out. He said ‘You’ll never lose money investing in real estate...as long as you’re never forced to sell’ (of course that is assuming you do all your diligence before buying).

Here’s a summary of Johnson’s 4 real-estate tips: 

1) Beware of one-company towns: Cities dependent on a single company or industry are more vulnerable to jarring downturns if the economy goes south.

Luckily Vancouver has a well diversified economy fuelled by several different sectors.

2) Don't get greedy. Johnson blames "plain old greed" for the latest real-estate downturn in the US — people got caught up in the enthusiasm of the moment and banks egged them on with cheap loans.

This particular problem refers to what happened south of the border, and we can thank our conservative lending practices here in Canada for saving us from going down that path. However, greed has been a major factor in the Vancouver condo market. I have seen many condo owners/investors try to unsuccessfully sell their overpriced properties during the height of the market, and then get caught having to sell for much less when the market has cooled off.

3) Timing is everything. "In this market, any young person that hasn't bought a house ought to buy one," Johnson says. "A buyers market doesn't come along that often … you just can hardly help but make money on whatever you buy today at the prices they are." Johnson says rates are only going to go up over the long term, so borrowing will cost more. 

Although I’d say our market here in Vancouver at the moment is more of a ‘balanced market’, and not quite a ‘buyer’s market’, this is a great time for first-time buyers to get into the market. With the record low interest rates we are currently seeing and softening prices, this may be one of the best opportunities for young people to get into the market we’ll see in a very long time. 

4) If you don't have to sell, hang on. Johnson expects that in the US sellers will continue to suffer, at least for now. Buyers, on the other hand, "know it's a buyer’s market – they are going to come in with offers below what we've appraised it at just because they know a lot of people have to sell," he says.

Despite the continued housing-market struggles, Johnson is confident that the latest downtrend is largely over. "We are headed up," he says, "but like I said, I think it is going to be slow. It will take a year or two at least."

Read the full article here >>
 

So what exactly is a condo?....that’s a question that comes up a lot. Condo ownership is fast becoming a popular choice for homeowners here in Vancouver, offering both affordability and lifestyle, yet it is still a concept that is often misunderstood. ‘What is the difference between a condo and an apartment?’ is another great question I often get asked. So I thought I’d put together a little overview to help you get a better understanding about condos and condo ownership here in Vancouver.

The word ‘Condominium’ (or ‘Condo’ for short) refers to a form of legal ownership, as opposed to the style of construction. This form of ownership can apply to high-rise and low-rise residential buildings, townhouses, individual houses, and even bare land. A condo, also commonly referred to as a ‘strata’ here in BC, refers to a special way of subdividing and owning portions of buildings and land. This concept allows multiple individuals to own separate parts of the same building (and/or sometimes land), while sharing common areas and expenses related to those common areas.

The part of the property which an individual owns separately is called a ‘strata lot’ (also referred to as the ‘strata unit’ or ‘condo’), and the remainder of the property is called the ‘common property’

The difference between a condo building and an apartment building is the form of ownership. An apartment building is usually owned by a landlord and the individual units are rented out to various tenants, whereas a condo building follows the form of ownership described above with multiple owners each owning their respective units and jointly owning the common property.

Read more about condos, including ‘what do I own when I buy a condo?’, ‘what is the strata corporation and what is their role?’, and ‘what rules and restrictions should I be aware of?’ >> 

Housings starts were up in in August reflecting the strong demand from consumers we have seen over the past year. The Canada Mortgage and Housing Corporation (CMHC) recorded 1,488 housing starts in Metro Vancouver during August 2010, bringing the total number of Vancouver CMA housing starts to 9,493 for the year.

“Many centres across the Vancouver CMA have seen a rise in single detached housing starts in response to strong consumer demand for ground oriented housing. Not only are developers building in areas of raw land supply, but also there has been an increase in infill developments in areas such as Vancouver City, Burnaby and Richmond,” said Robyn Adamache, Senior Market Analyst for CMHC. “Multiple family units still dominate new home construction activity, making up more than two-thirds of all housing starts in the CMA,” noted Adamache.

Nationally, the seasonally adjusted annual rate of total housing starts dipped to 183,300 units in August. In British Columbia, August’s seasonally adjusted rate of urban housing starts moved higher to 25,400 units, from 20,100 units in July.

Download the full CMHC August 2010 Housing Starts Press Release>>
 

Conditions in the Greater Vancouver housing market continued to favour buyers in August. Since April, prices have edged down slightly as the number of sales and the number of properties coming on to the market have been declining.

Here are the stats for August 2010 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES - DOWN 36% from last year*
2,202 homes were sold in August 2010

*Although this represents a huge decrease from last year, August 2009, it’s important to keep in perspective that last August was the second highest selling August ever recorded, with 3,441 sales

• This represents a 2.4% decline compared with July 2010
• From a wider perspective, last month’s residential sales represent a 40% increase over the 1,568 sales in August 2008, a 35% decline compared to August 2007’s 3,384 sales and a 27% decline compared to August 2006’s 2,998 sales.

NEW LISTINGS - DOWN 18% from last year
3,750 properties were newly listed in August 2010

Total active listings in Greater Vancouver currently sit at 15,421, a 6% decline from last month and a 29% increase from August 2009.

“We’re seeing moderate demand, low interest rates and a healthy but slowing stream of supply in our marketplace, all variables that favour those looking to purchase a home,” Jake Moldowan, REBGV president said. “The last few months have also shown some stability when it comes to price fluctuations in the region, which is a welcome trend after reaching record highs in April.”

HOUSING PRICE INDEX - UP 7% from last year
Since spring, housing prices have decreased about 3 % compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 7% to $576,597 in August 2010 from $539,600 in August 2009.

• The benchmark price for detached properties increased 8.5 % from August 2009 to $795,076.
• The benchmark price of an apartment property increased 4.5 % from August 2009 to $385,968.
• The benchmark price of an attached unit increased 6.6 % from August 2009 to $489,511.

“Canada remains an attractive destination for foreign buyers, a fact that continues to affect activity in the Greater Vancouver housing market,” Moldowan said.

SALES OF DETACHED PROPERTIES - DOWN 35% from last year
893 detached homes sold in August 2010. Although this is a significant decrease compared to last year, this represents a 67% increase compared to sales in August 2008 where 535 units were sold.

SALES OF APARTMENT PROPERTIES - DOWN 36% from last year
1,464 apartment properties sold in August 2010. This is a 26% increase compared to sales in August 2008.

SALES OF ATTACHED PROPERTIES - DOWN 39% from last year
There were a total of 374 attached property sales in July 2010. This marks a 27% increase from August 2008 sales.
 

Download the complete REBGV August 2010 Stats Package >>

Home sales activity in Greater Vancouver was quieter last month than most Julys over the past decade, with residential sales, prices, and the number of homes listed for sale trending downward in recent months.

Here are the stats for July 2010 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES - DOWN 45% from last year*
2,255 homes were sold in July 2010

• This represents a 24% decrease compared with June 2010
• Although this represents a huge decrease from last year, July 2009, it’s important to keep in perspective that last July was the highest selling July ever recorded, with 4,114 sales
•  Looking back further, last month’s residential sales represent a 4 % increase over the 2,174 residential sales in July 2008, a 42 % decline compared to July 2007, and a 18% decline compared to July 2006.

“With the pace of home sales and listings easing off in our market, we’ve begun to see a levelling of home prices from the record highs seen in the spring, creating greater affordability,” Jake Moldowan, REBGV president said. “Activity in today’s marketplace is clearly trending in favour of buyers.”

NEW LISTINGS - DOWN 18% from last year
4,138 properties were newly listed in July 2010

At 16,431, the total number of property listings on the MLS® in July declined 6.5 % compared to last month, and increased 33% compared to July 2009.
“It’s currently taking home sellers who work with a REALTOR®, on average, 45 days to sell their property, which is a historically healthy timeframe for people on both sides of a transaction,” Moldowan said.

HOUSING PRICE INDEX - UP 9% from last year
Since spring, housing prices have decreased about 3 % compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 9% to $577,074 in July 2010 from $528,821 in July 2009.

• The benchmark price for detached properties increased 12 % from July 2009 to $793,193.
• The benchmark price of an apartment property increased 6 % from July 2009 to $387,879.
• The benchmark price of an attached unit increased 9 % from July 2010 to $490,995.

SALES OF DETACHED PROPERTIES - DOWN 44% from last year
908 detached homes sold in July 2010. Although this is a significant decrease compared to last year, this represents a 10% increase compared to sales in July 2008

SALES OF APARTMENT PROPERTIES - DOWN 43% from last year
979 apartment properties sold in July 2010. This is a 1% increase compared to sales in July 2008.

SALES OF ATTACHED PROPERTIES - DOWN 54% from last year
There were a total of 368 attached property sales in July 2010. This marks a 3% decline from July 2008 sales.

Download the complete REBGV July 2010 Stats Package >>
 

Thanks to the increased starts we’ve been seeing the past few months, we are moving closer towards a healthy level of new housing supply needed to satisfy demand here in Vancouver. However, with a total of 6,881 housing units breaking ground in the first half of this year, we’re unlikely to hit our ten-year average level of 15,360 housing units.

According to Canada Mortgage and Housing Corporation (CMHC), 1,250 housing starts were recorded in June 2010 across the Vancouver CMA.

“We have had a steady pace of new projects breaking ground, and together with a significant increase in the value of residential building permits recorded in May, we are well on track for total housing starts in 2010 to surpass the 10,000 mark” noted Robyn Adamache, Senior Market Analyst with CMHC. “But the current rate still suggests that we are likely to remain under the ten-year average level of 15,360 units.”

Although rental starts make up a small fraction of total starts, they are on their way up compared to past years. Rental housing starts have increased to 475 year to date, surpassing rental starts totals we’ve seen over the past five years.

Nationally, housing starts were down slightly in June, slipping to 189,300 units,
seasonally adjusted at annual rates (SAAR). In urban British Columbia, the seasonally adjusted annual rate of housing starts moved higher, edging up to 23,600 units, SAAR.
  

Download the full CMHC June 2010 Housing Starts Press Release>>

June is traditionally a quieter time of the year, and this year is not exception. Listings are coming on to the market at a slower pace than expected, and buyer demand is moderating. Overall numbers are showing a stable summer market ahead:

* A word of caution: When looking at the stats below, keep in mind that last year we saw the second highest selling June on record. It’s important to keep this fact in perspective when you read that ‘sales are down around 30% from last June’. Although this marks a significant decrease compared to last year, the numbers we are seeing are indicating that we are returning to more balanced market conditions.

“Activity in June marked a healthy balance between the near record setting pace of June 2009 and the considerably slower activity witnessed in June 2008, a period of recession as we all know,” Jake Moldowan, REBGV president said.

Below are the stats for June 2010 according to the Real Estate Board of Greater Vancouver (REBGV):

RESIDENTIAL PROPERTY SALES - DOWN 30.2% from last year

2,972 homes were sold in June 2010. Although this is down 30% from June 2009, keep in mind that last year we saw the second highest selling June on record. Compared to June 2008, last months sales were 22.6% higher. June 2010 sales also represent a 5.8% decline compared to the previous month’s sales totals.

“We didn’t experience any record-breaking activity in June, but we did see a stable summer market,” Moldowan said. “The number of new listings coming on the market is not as dramatic as we saw over the previous three months and demand remains at a healthy level for this traditionally quieter time of year.”
 

NEW LISTINGS - UP 3.2% from last year
5,544 properties were newly listed in June 2010. This is a 3.2% increase from this time last year, and a 21% decline from May 2010. At 17,564, the total number of property listings on the MLS® increased 1.2% in June compared to last month, and is up 32% compared to this time last year.

“There has been less upward pressure on prices in our market the last few months, which has allowed prices to ease back from the record high numbers seen in April,” Moldowan said.

HOUSING PRICE INDEX - UP 11.8% from last year
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 11.8 per cent to $580,237 from $518,855 in June 2009.

• The benchmark price for detached properties increased 13.4 % from June 2009 to $795,025.
• The benchmark price of an apartment property increased 9.7 % from June 2009 to $391,528.
• The benchmark price of an attached unit increased 11.6 % from June 2009 to $492,861.

SALES OF DETACHED PROPERTIES – DOWN 31.7% from last year
1,667 detached homes sold in June 2010. This is down 31.7% from last year, but represents a 24% increase from June 2008.

SALES OF APARTMENT PROPERTIES - DOWN 29.7% from last year
1,258 apartment properties sold in June 2010. This is down 29.7% from last year’s high, but up 19% from June 2008.

SALES OF ATTACHED PROPERTIES - DOWN 28.3% from last year
There were a total of 575 attached property sales in June 2010. Although this is down 28.3% from last year, it is up 27.8% from June 2008.
 

HST comes into effect this Thursday July 1, 2010. What does this mean for you?

LET'S START WITH THE BASICS:

WHAT HST? The Harmonized Sales Tax (HST) is a new tax introduced by the government, which will harmonize our current Provincial Sales Tax (7% PST) with our Federal Goods and Services Tax (5% GST).

So this ‘new’ tax is essentially just replacing the old PST & GST taxes, and will not have a net difference on the amount of tax paid on most goods. Instead of paying two taxes on the goods and services you buy (7% PST + 5% GST= 12% total tax), you will be paying the same amount of tax but it will have a new name (12% HST).

The kicker with the HST is that it will apply to some goods that were previously exempt from PST (and thus subject only to 5% GST tax). On these PST exempt goods consumers will now have to pay 7% more in taxes. And unfortunately one of these exempt goods is newly constructed or substantially renovated (almost new) housing.

HOW WILL HST IMPACT THE HOME BUYER?

COST OF RESALE HOUSING 

HST does not apply to resale housing. Buyers did not pay GST on resale housing under the old system and they will not pay HST on the price of their new home under the new system

COST OF NEWLY CONSTRUCTED HOUSING 

Sales of newly constructed or substantially renovated homes will be subject to the proposed HST, where both ownership and possession of the homes are transferred after June 30 2010. In these cases the buyer will incur an additional 7% in taxes.

But if you are buying a newly constructed home to use as your primary residence, you may qualify for the BC New Housing Rebate.

WHAT IS THE BC NEW HOUSING REBATE?

The BC New Housing Rebate is a rebate of 71.43% of the provincial component of the HST paid, up to a maximum of $26,250. This rebate is for buyers who buy their new home to use as a primary place of residence. 

The government claims that:

‘On average, the rebate ensures that you won’t pay any additional tax due to harmonization on new homes that cost up to $525,000. If you buy a new home that costs more than that, you’ll pay a little bit more tax than you did before, but you’ll still get the maximum rebate of $26,250.’

But a word of caution to buyers: The government has made these claims assuming that builders will discount the price of homes by the amount of tax savings they will now get (approximated 2%).**  

Click here for more information on the BC New Housing Rebate for home buyers.

** Business owners, such as builders, currently get to write off the 5% GST (but not the PST) they pay on input goods they use to conduct business (eg. building supplies). Under the new HST system, businesses will now be able to write off the full 12% HST in taxes they pay on input goods. The government is assuming that this savings will be passed on to consumers. If you would like more information you can watch this video created by the BC government. 

COST OF BUYING AND SELLING

Buyers and Sellers will incur a 7% increase in costs they pay for real estate services (including realtor commissions, home inspector and lawyer fees)

COST OF OWNING A HOME

HST is also applicable to such things like strata fees, residential heating fuel, commercial rents, smoke detectors, fire extinguishers, repairs, cable TV, internet, electricity, gas, renovations, painting and other professional services. So homeowners can expect to pay 7% more for these goods and services

A week ago today, the Real Estate Board of Greater Vancouver (REBGV) welcomed it’s 10,000th active member. The marks the second time in the REBGV’s 91-year history that membership has reached this number.

The last time we hit the 10,000 active member mark was in 1994, where membership peaked at 10,029 in September of that year.

Looking at this graph we can see that there is clearly a correlation between the number of active members and the health of the local real estate market. For example we see that during the market downturn that spanned the late 1990s to the early 2000s  membership numbers declined significantly. In January 2002 membership was at about  6,500 which marked the lowest total since January 1989. Even in the 2008 downturn we saw a drop of almost 500 active members.

Given the recent record setting activity we saw in the last half of 2009 and earlier this year, it’s no surprise that membership numbers are on the rise.  When the market is hot new- comers are often lured by the prospect of making 'easy money' (a hope which never actually materializes for most). As the market cools and the reality of what it takes to make a living in real estate sets in, many agents leave the market.     

What does this mean for you, the consumer? This increase in the number of REALTORS ® out there means that buyers and sellers theoretically have more choice with whom they do business with. This increased competition can result in some positive benefits for the consumer, as some REALTORS ® may offer certain incentives for new clients. However there are downsides to this as not all agents are created equal. Consumers should always exercise diligence when selecting their agent. Make sure you select someone who is knowledgeable about the market and who you trust has your best interest in mind.
 

According to Canada Mortgage and Housing Corporation (CMHC), the single family housing market is performing well and overall new housing construction is in line with key economic indicators.

There were a total of1,173 housing starts for the Vancouver CMA reported in May 2010. Construction of single family detached homes has increased and is now currently above the 10 year historical average, however starts of multi-unit housing are lagging and are currently below their 10 year average. As a result total housing starts year –to-date, currently 5,631, are well below the 10 year average of 6,495.

New construction of multi-unit housing totaled 749 units in May 2010 brining the year-to-date total to 3,702. The majority of this construction is accounted for in the City of Vancouver, where 1,306 multi-unit homes started construction so far this year.

Robyn Adamache of CMHC noted that “Most housing market indicators suggest that the new home construction market is in balanced conditions this year.” This is in line with what we are seeing in resale housing numbers and demographic indicators like population growth and household information.
 

Download the full CMHC May 2010 Housing Starts Press Release>>

The market started to show signs of cooling off in May. We’re seeing sales starting to slow down, and listings begin to increase. As I’ve noted in past posts it seems like we’re entering a more balanced market, where buyers have more time to select the home that’s right for them.

Here are the stats for May 2010 according to the Real Estate Board of Greater Vancouver

RESIDENTIAL PROPERTY SALES - DOWN 10.4% from last year
3,156 homes sold in May 2010

• 10.1% decline compared with April 2010

NEW LISTINGS - UP 48.2% from last year
7,014 properties were newly listed for sale May 2010

• 8.3% decline compared to April 2010
• The total number of listings on the MLS® now 17, 492, up 10% from April and 28.2% up from this time last year.

HOUSING PRICE INDEX - UP 16.7% from last year

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 16.7% to $590,662 from $506,201 in May 2009.

• The benchmark price for detached properties increased 19.1 per cent from May 2009 to $810,175.
   
• The benchmark price of an apartment property increased 13.9 per cent from May 2009 to $398,783.
   
• The benchmark price of an attached unit increased 14.8 per cent between May 2009 and 2010 to $500,339.

The following graph illustrates the movements of Housing Prices in the Vancouver West area:

SALES OF DETACHED PROPERTIES - DOWN 10.4 % from last year
1,256 detached homes sold in May 2010 

SALES OF APARTMENT PROPERTIES - UP 7.1% from last year
1,354 apartment properties sold in May 2010

SALES OF ATTACHED PROPERTIES - UP 3.7% from last year
546 attached property sales in May 2010
 

As anticipated, the Bank of Canada (BoC) raised its key lending rate by 0.25 percentage points this week, marking an end to the record low interest rates Canadian benefitted from this past year.

Lenders are now expected to follow suit and raise their prime rate by 0.25 percentage points. For homeowners on variable mortgage payments this means that their payments will increase by approximately $12/monthly payment per $100,000 of mortgage.

TD was the first of the Big 5 Banks to increase their prime rate by 0.25 percentage points to 2.50%. This increase was announced on Tuesday and took effect on Wednesday June 2.

Economists from the Big 5 Banks indicated that the prime rate is expected rise further this year by approximately 1 percent to 3.25% by the end of 2010, with further increases come 2011. 

 The next scheduled date for announcing the overnight rate target is 20 July 2010.

To date in 2010 we have seen robust sales activity and increased prices. As of March 2010, prices for apartment condo and townhouses were up 2% and 3% above previous peak levels respectively, with prices for single detached homes up 7% from the previous peak. These trends are not expected to continue into the coming months as sales activity moderates and price increases are expect to slow.  

CMHC forecasts that we will see a more balanced housing market in the second half of 2010,  as MLS(R) listings increase and sales begin to slow. Sales are expected to slow down in the coming months and remain flat in 2011. 

Although home ownership demand will be strengthened by improving local economic conditions and steady population growth, higher mortgage rates and the new mortgage regulations will act to dampen demand from buyers in the later half of this year. 

We are already seeing a slower pace of sales this year compared to what we saw last fall. This is expected, as much of the pent-up demand that built up from 2008 was satisfied in the second half of 2009 as buyers took advantage of record low mortgage rates and discounted prices. CMHC predicts we will see a 3% decline in annual sales for this year and next. 

During this time we expect to see more homes listed for sale as sellers try to take advantage of the price increases we have seen over the past year. 

This translates to good news for buyers. Although we don't expect to experience a 'Buyer's Market' as we did this time last year, buyers will now have a larger selection of homes to choose from and more time to make their decision. In addition we expect to see less multiple offers on properties, which will be a relief for buyers trying to secure their dream home.

What about prices?

We expect to see the pace of price growth to decline over the next year and a half as the market settles. CMHC predicts that MLS prices will increase 11% in 2010, with the majority of the growth being accounted for by the high prices and robust sales we saw in the first half of this year. In 2011 the price growth is expected to be a mere 3%. 

Read the full CMHC Spring 2010 Housing Market Outlook>>

Vancouver ties Auckland for the world's 4th best quality of living according to  Mercer's 2010 Quality of Living Survey.  In first place was Vienna, followed by Zurich and Geneva in 2nd and 3rd positions. 

To those who have set foot here, it comes as no surprise that Vancouver is one of the most livable cities in the world. Breathtaking views, endless recreational opportunities and one of the most diverse populations in North America, are a few of the things that make our city one of the most desirable places in the world to live. 

View the top 50 cities: Quality of Living Ranking >>

Get everything you love about Vancouver for a fraction of the price!

LOCATION | 2300 Kingsway, on the corner of Kingsway and Nanaimo.

PROJECT SIZE |

• 22-storey tower with 197 units
• 8-storey tower with 138 units

UNIT SIZES | 

This project offers a variety of unit-sizes and floor plans ranging from studios (396 sq. ft.) to 2 bedroom + den penthouses (1089 sq. ft).

PRICES |

Starting at $201,000 for units with parking...
 

Read more about 2300 Kingsway >>

Housing starts in Metro Vancouver were strong for April 2010 with 1,260 residential units being built. Single-detached homes accounted for 35% of total starts, just over half of which were in Surrey. Condo apartment starts accounted for 42% of total starts, most of which were located in Surrey, Vancouver City and North Vancouver. Year-to-date, total housing starts are up 94% compared to the same period last year.

Compared to April 2009, total housing starts have increased significantly across the board, in almost every city in the Vancouver CMA with the exception of Langley City which showed zero starts compared to 116 a year ago, and Richmond which had 44 starts compared to 53 in April 2009.

“This year, we are seeing an increase in rental units, some of which are laneway
housing,” noted Robyn Adamache, Senior Market Analyst at CMHC. Year-to-date, rental units as a share of new housing starts in the Vancouver CMA are about 9.3%, compared to just 3.3% a year ago. Laneway housing accounted for only 35 units of the total 415 new rental units being constructed, the majority of which were traditional multiple-unit rental buildings. For more on laneway housing see the City of Vancouver’s Eco-Density Website.

Provincial home starts in urban areas rose to 25,600 units, seasonally adjusted at
annual rates (SAAR) in April, from 22,000 in March. At the national level, total housing
starts reached 201,700 units SAAR in April from 199,200 units the prior month.
 

Download the full CMHC April 2010 Housing Starts Press Release>>

The Cecil is coming down, and new residence are going up...23 storeys up. Welcome 'The Rolston': this ambitious development promises to change the Vancouver skyline, leaving it's own unique mark while preserving the city's heritage.

LOCATION | Granville and Drake, Vancouver. Formerly home to the infamous Cecil strip joint and hotel.

PROJECT SIZE | 23 storeys, 187 Units

UNIT SIZES |

• One Bed 416 sq. ft. – 581 sq. ft.
   
• Two Bed 702 sq. ft. – 889sq. ft.

PRICES |

• One Bed $300,000-$359,000
   
• One Bed with Parking $329,000 - $429,000
   
• Two Bed/One Bath $430,900 -$509,000
   
• Two Bed/Two Bath $499,900 - $649,000

Read more about The Rolston >>

This time last year we started seeing home prices begin to rebound from the deep price drops that took place in the recession period.

Since then prices and sales have been on a steady increase, demonstrating the resiliency of the Vancouver housing market. April was no exception, showing increased activity across the board, it marked the beginning of a busy spring market to come.

Here are the stats for April 2010 according to the Real Estate Board of Greater Vancouver (REBGV)

RESIDENTIAL PROPERTY SALES - UP 18.5% from last year
3,512 homes were sold in April 2010

• The fifth highest-selling April on record
• 12% increase compared with March 2010
 

NEW LISTINGS - UP 64.5% from last year
7,648 properties were newly listed in April 2010

• 9.2% increase compared to March 2010

HOUSING PRICE INDEX - UP 18.9% from last year

The MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 18.9% to $593,419 from $499,021 in April 2009.
 

• The benchmark price for detached properties increased 21.2 % from April 2009 to $818,403.
• The benchmark price of an apartment property increased 16.9 % from April 2009 to $397,779.
• The benchmark price of an attached unit increased 16.4 % between April 2009 and 2010 to $502,399.

SALES OF DETACHED PROPERTIES - UP 15.1% from last year
1,370 detached homes sold in April 2010

SALES OF APARTMENT PROPERTIES - UP 29.4% from last year
1,526 apartment properties sold in April 2010

SALES OF ATTACHED PROPERTIES - UP 3.7% from last year
There were a total of 616 attached property sales in April 2010

Download the complete REBGV April 2010 Stats Package >>
 

April 19, 2010 marked day 1 of the new mortgage rules implemented by the government to 'protect' homeowners from getting overextended and 'prevent' a major housing price bubble.

Here's a summary of these changes and how they will affect home buyers and sellers:

QUALIFICATION RATE

What's changing?

Borrowers will now need to qualify for a 5-year fixed rate, regardless of what term they choose for their mortgage.

Who does it affect?

Borrowers who put down less than 20% and want a variable rate or a 1- to 4- year fixed term rate

What does this mean?

Borrowers will now have to qualify for the 5-year fixed term posted rate (6.10% at the date of this article), instead of the rate they will actually be paying if they go with a variable rate or a 1- to 4 fixed rate (can range from 2.75% -4.39% at the date of this article).

This is going to make it harder for borrowers to qualify for a variable-rate mortgage as their income will have to be roughly 25% higher in order to be approved for the same mortgage they would have take out pre- April 19.

The government has implemented these rules to help prevent borrowers from taking on mortgages they couldn't support if rates go up (which expected to happen this summer). Many lenders we've spoken to say they already use similar guidelines to calculate a borrower's debt-service ratios, so the actual effect many be negligible for many borrowers.

REFINANCING

What's changing?

You can now refinance your home up to a maximum of 90% of its value, compared to a 95% maximum previously.

Who does it affect?

Homeowners looking to refinance their homes.

What does this mean?

This will force homeowners to keep more equity in their home, which will help safeguard them in the event of housing price drops. Unfortunately this will also mean that borrowers will be less able to restructure their debt and pay off high-interest with lower-cost mortgage money.

RENTAL PROPERTY FINANCING

What's changing?

Buyers will now have to put down a minimum of 20% of the purchase price, compared to the previous 5% if they want to qualify for CMHC mortgage insurance. 

CMHC has also changed how they treat rental income when calculating a borrower's Total Debt Service Ratio (TDS):

A) For non-owner occupied rental properties:

• 100% of net rental income is added to the borrower's gross income
• The mortgage payment, property taxes, and heat are excluded from the Total Debt Service (TDS) calculations

B) For owner occupied rental properties

• 50% of gross rent is added to the borrower's income (as opposed to 80% previously)
• Property taxes and heat are excluded from the Total Debt Service (TDS) calculations

Who does it affect?

Investors purchasing residential income producing properties.

*Note: It will not apply to multi-unit owner-owner occupied homes with rental units

What does this mean?

The changes to the down payment requirement are clearly going to make it harder for investors to purchase income producing property. This is expected to push many investors out of the market and thus reduce the supply of rental units. As a result we could expect to see a shortage of rental units on the market and/or a material increase in rents.