My Vancouver Realtor® Blog - Information
and Reports From The Local Area

I try to keep on top on local trends and reports for my clients (as much as my real estate practice allows). If you’d like to comment on any of these postings, please feel free to either phone me directly on (604) 783-5644 or send me an e-mail to nnozari@sutton.com.
- Neda
 

Vancouver Realtor® Blog - July 26th/2010

Vancouver Parking Rates Surprisingly Not The Most Expensive In Canada

Emptying out the old wallet to pay for parking in Vancouver is no fun. But it is number five in the top five Canadian cities on the highest parking rates list. Vancouverites shell out an average of $224 for a monthly parking pass and $14.83 on a daily basis. Rates increased two percent from 2009 to 2010. The biggest increase was between 2008 and 2009 when rates climbed by 9.9 percent.

Calgary remains at the top of the expensive parking list, with its residents shelling out an average of $453.38 per month. Calgary also made it onto the list of most expensive parking places to park in the world, at number 14. London, England, which discourages cars in its downtown core, charges a whopping $933 USD per month to park, earning that city the number one spot on that list. Number two went to Hong Kong, at $744 USD, three to Tokyo at $654 USD and four to Sydney, Australia at $591 USD per month.

Back at home, second place went to Toronto, at a monthly rate of $336. Victoria, on Vancouver Island, was a relatively reasonable $180 and Waterloo, Ontario a virtual bargain at $116.00. Of course after looking at London’s figures, and those from elsewhere around the globe, parking anywhere in Canada can be thought of as a bargain, relatively speaking.

Vancouver Realtor® Blog - July 20th/2010

Metro Vancouver Listings Up, Sales Slowing and Prices Dipping, As Expected

Metro Vancouver’s property sales are slowing and prices have dropped slightly, but by years end properties will still be worth more than they were in 2009. That is the opinion of Royal LePage realtors in the area.

The major real estate firm also noted that most sales were driven into the first half of 2010 which is why the quarterly stats seem so off-kilter. The increased inventory and price decreases basically amount to a slight correction on the oddly timed year.

The average price, taking all property types into consideration, was $669,000 at the end of the second quarter of 2010. By the end of the year, the average is expected to drop to about $650,000. Even at that, the average price is ten percent higher than the end of December in 2009.

Already with listings up and buyers not as frantic to latch on to properties, the anticipated slip in sales has already begun. The market now has to contend with the Harmonized Sales Tax (HST) which became law on July 1st. Buyers are still looking, but they are being much more discriminate in their property choice and more price conscious.

Vancouver Realtor® Blog - July 6th/2010

Economist: HST May Have Brief but Not Damaging Impact on Real Estate Market

Although the soon to be imposed harmonized sales tax is about as popular among home buyers as a termite infestation, experts are predicting that the tax will not have a significant impact on the housing market.

Michael Gregory, an economist with the Bank of Montreal, spoke at a market analysis event at the bank’s Kamloops office. At the session, Gregory advised that the HST, which will be effective on July 1 in Ontario and British Columbia, has already affected purchasing. He noted that people have entered the real estate market somewhat prematurely, in anticipation of the tax. Consequently, sales in the spring were higher than anticipated in Kamloops, and extremely strong in Vancouver and Toronto.

Gregory said he expected a shortfall in sales throughout 2010, but did not anticipate a long-term sales drought.

The HST will mainly affect buyers of new-construction homes, as well as existing homes priced at more than $525,000. The tax will not impact resale homes priced below the $525,000 level.

Apart from any conditions created by the HST, Gregory said, the Canadian economy continues to be healthy, with new jobs springing up all over the country. Gregory said that the recovering economy and job creation are more important to home sales than any effects of the HST. Gregory acknowledged that it may take six months or so before people intimidated by the HST return to the market, but they will eventually resume their buying.

Kamloops and District Real Estate Association President Dick Pemberton agrees with Gregory. He believes that the Kamloops real estate market will recover from any short-term slowdowns the HST may cause.

Vancouver Realtor® Blog - June 29th/2010

Air India Tragedy Anniversary Triggers Stephen Harper Apology

Twenty five years after the Air India disaster, Stephen Harper, Canada’s Prime Minister issued an apology for the government’s failure to prevent the tragedy and the length of time taken to find answers for the families of the victims. An Air India flight out of Vancouver was taken down by a terrorist bomb. The primary tragedy was the loss of life, but on a secondary note, the entire crash was treated more like an Indian problem, not a Canadian issue. This, despite the fact that Canadian citizens of Indian decent were on board and killed and that their very Canadian families needed to know what happened. The Indo Canadian community felt, and do still feel, very much ignored.

The apology was delivered in Toronto at a memorial dedicated to those who perished in the crash. There was a second ceremony in Vancouver’s Stanley Park at a memorial built just three years ago. Roughly 100 people gathered to hear Stockwell Day, a federal cabinet minister say a few words honouring the victims and to reiterate “this should not have happened.”

There were no specifics on what the government is planning to do to give the victim’s families closure. Though these families seemed to be glad of getting the apologies, the attitude of many was that nothing would be changed.

Vancouver Realtor® Blog - June 23rd/2010

Viaduct System in Vancouver’s Downtown May Have To Go

Traffic patterns may change in downtown Vancouver. City council is contemplating tearing down the Dunsmuir and Georgia viaducts with the intent of changing the way east side traffic flows into the city’s core. There are six ideas already being considered which call for either shortening the viaducts or tearing one or perhaps both of them down. Both viaducts were closed during the Vancouver Winter Olympic Games.

Despite already having all these options to consider, city council is now going to decide whether to spend $695,000 for further study on the idea. The viaducts are almost forty years old and it is expected they could stand as is for another fifty years. The problem, as some see it, is that these 20th century structures may not fit in aesthetically with what Vancouver’s council has in mind for the modernization of the city.

A new development, still to be approved, in Northeast False Creek may be hampered by the viaducts as they stand now. Council wants to open up space for more development as well as more public open areas and that could be accomplished by removing or altering the viaduct system. The feasibility study, should it be approved would be completed by May of 2011.

Vancouver Realtor® Blog - June 10th/2010

Suburbs Attract Parents and Middle Income Families

Statistics Canada recently released a report showing that urban centres draw people on extreme ends of education and income levels, and suburbs draw young parents in middle education and income levels.

The study showed that from 2001 to 2006, 14 per cent of people between 25 and 44 left Vancouver, Montreal and Toronto cities for the suburbs. Only five per cent in the same age group moved from the suburbs to Montreal and Toronto, and four per cent moved back to Vancouver.

Twenty-seven per cent of new parents in Vancouver left to live in the suburbs, and only eight per cent of those living alone moved to the suburbs. The trend increases in people to age 34 and then begins to taper off in the older age brackets.

The study also found that people with bachelor’s degrees more frequently moved to the suburbs but those with master’s or doctorate degrees stayed within the urban centres.

Additionally, families with incomes around $100,000 and over are less inclined to move to the suburbs as families with middle bracket incomes. Lower-income families with incomes equal to or less than $20,000 were the least likely of all income groups to leave a city centre.

Vancouver Realtor® Blog - May 18th/2010

Okanagan Still Has A Slew Of Condos Still Available – For A Song

As Vancouver’s real estate condo market is on a healthy rebound, cities like Kelowna in the Okanagan are not enjoying the same good fortune. One reason is that when the economy started to tumble, ongoing condo projects in places like Vancouver came to an abrupt halt. Banks shut down funding and construction companies shut down their machines.

In Kelowna, they just kept building. The result is that there is a glut of properties on the market that in some cases are selling at more than 40 percent less than they did during the real estate boom years of 2002 to 2008. Bob Rennie, a condo sales expert for the area does not expect those high prices to return anytime soon.

Another reason for Vancouver’s price and sales rebound is the amount of foreign investors that have put money into the city since the 2010 Olympics. You can’t get a much bigger advertisement than that and Vancouver took full advantage of its two weeks in the sun and is reaping the rewards.

Kelowna’s success came mainly from Albertans and Vancouverites looking for a second or vacation home. In the current market, when buyers are still rather gun shy, there is more focus on putting family funds into the primary residence and not risking money on a luxury item.

Rennie believes that the glut of homes in the Okanagan will continue at least until the high end units have been sold. Currently he is helping InVue sell their upscale condo units. He predicts that it will take a couple of years for the market to get back into shape.

Vancouver Realtor® Blog - May 11th/2010

Renovations Are The Rage In The Current Real Estate Climate

You have lived in a cherished home for some time and you find that you are in need of more space. Moving is not an option, either because you are content with your locale or can’t find anything you want or can afford in the current real estate market. What are your options?

Many homeowners are opting to renovate. The increase in popularity of both spouses working from home is leading to the addition of space so each worker has their own office. The luxury of having a second or even a third bathroom is also high on the list, as is the need and or want for a new kitchen. The advantage of these latter two additions is that each increases a home’s resale value. Installing environmentally friendly appliances is always a plus.

Surprisingly enough, though a favoured option, adding a swimming pool or home theatre to your home doesn’t offer as much of a return on your investment as that bathroom. Installing a central heating and air conditioning system doesn’t always give a good return on your financial outlay either. It just depends on what part of the country you live in. Skylights? They can be pretty and provide an extra source of light and brightness for a room and if you like one, put one in. Just don’t expect a return on your money.

When considering renovations, ask yourself why you are doing them and how long you plan on staying in the home. If the property is a short term investment, put your renovation dollars into what will give you the best return at resale time. If you plan on putting down roots for a while, do what makes you happy. Of course it is rare to find a homeowner made sad by a new kitchen with stainless steel appliances or a bathroom with a jetted tub and a whirlpool shower.

Vancouver Realtor® Blog - April 22nd/2010

Developers In Overdrive To Beat HST Deadline

Rudy Nielsen, President of NIHO Land and Cattle Co., believes that buyers and sellers will adjust to the HST addition quickly, recalling the application of GST in the 1980s. GST’s introduction, he remembers, pushed sellers to bargain more, and he believes the introduction of HST will see a similar trend.

Developers, however, are would rather risk holding on to excess inventory.

Ranjit Rai, Head Developer of Raicon Development Inc., is rushing to beat the deadline on July 1. Rai had the foundations poured 18 months ago on nine homes he is building on spec lots in Surrey, and is foregoing customizing so he can complete the builds.
Rai is not alone. Developer Jon Van Geel is building 20 to 30 cottages on spec at his Cultus Lake project, doubling the construction program and adding to his workload. Van Geel will start his 2010 sales campaign 12 weeks early in an attempt to sell the spec-built cottages.

New and pre-owned homes will both be subject to 12 per cent HST with some exceptions. The government announced a rebate program that will pay back consumers about five per cent on new homes sold up to $525,000. New homes above that price and pre-owned homes will not receive the rebate.

Metro Vancouver’s average detached housing price in March reached $800,341. HST could add $35-$40,000 in taxes to a $750-$800,000 home.

Builders are banking on an influx of buyers also seeking to beat the HST deadline to help move the properties.

Vancouver Realtor® Blog - March 24th/2010

Streetcar desired but fading away

The Olympic streetcar line, the short-term project transit project during the winter Olympics, offered a realistic and affordable solution to inner city travel woes. But, despite the public’s enthusiastic response to the project—half a million passengers used the service—the City of Vancouver are declining to make it a permanent route, arguing that transit is not their responsibility. It’s Trans-Link’s.

Trans-Link, however, are already running behind schedule on their planned new transit project: the Evergreen Line SkyTrain extension. Besides which Trans-link is sold on the idea of commuter trains for suburban commuters and buses for inner city travel.

The Olympic Line doesn’t fit this model. There is also the problem that Trans-Link is having difficulty maintaining current service levels.
The Olympic streetcar line could connect the three main existing routes across the city and along Broadway. And, making the Olympic line a permanent route would cost a fraction of the cost of a SkyTrain extension.

This project would suit a joint City and corporate partnership. A corporate sponsor willing to invest in the project could be granted naming rights and receive revenue from fares. The City could offset the operating subsidy with revenue from advertising. And, the taxpayer would be relieved of paying $3 billion for the planned Broadway extension.

The chances of any of this happening now seem slim—a shame as the Line offers an affordable inner city transit service that could making living, working and playing in Vancouver that much easier and pleasanter for its residents.

Vancouver Realtor® Blog - March 17th/2010

Too Much Snow for Paralympic Practice Runs

A late-winter snowfall in the Vancouver area on March 9 helped to bump up the snow at local ski resorts, but postponed the training ski runs for the Paralympics at Whistler. Heavy fog also contributed to the inability of the para-alpine ski team to practice.

Canada’s para-alpine ski team director, Jean-Francois Rapatel, said that despite the snow crew’s heroic efforts, the course was impossible to navigate.

In the city of Vancouver and suburbs such as Burnaby and Coquitlam, people awakened last Thursday to snow amounting to several centimetres. Snow on Burnaby Mountain roads forced the substitution of shuttle buses for articulated buses to Simon Fraser University. Winds also played a role, as wind warnings were issued for the regions near the North Coast and the Strait of Georgia. Winds as strong as 100 km/h were recorded in the areas of Haida Gwaii and Vancouver Island. Approximately 2,600 people lost power in Burnaby when a tree was knocked over onto power lines, according to BC Hydro.

As much as 25 centimetres of snow had been expected to fall at Whistler Mountain, as well as the Olympic and Paralympic Parks. More snow had been predicted for the weekend.

Rapatel said that the Paralympic skiers are using the same course that was used by the women in the recent Olympics. He noted that the course had to be free of new accumulation for it to be in top condition for the event.

The snowfall presented good news to ski resorts that were able to reopen ski runs that were not open since January.

Vancouver Realtor® Blog - March 13th/2010

Vancouver Set to Hire More Employees During Second Quarter

It looks like it’s going to be easier to get a job in Vancouver during the second quarter of 2010.  Manpower of Canada released a survey that stated that 19 percent of employers were expected to hire between April and June while only 10 percent are expected to cut staff. The majority of employers, roughly 70 percent plan to keep their staffing levels the same.

This means that compared to last years minus one percent net employment figure, Vancouver is looking at a healthy nine percent in the plus column. The first quarter showed Vancouver with a healthy 11 percent net employment figure, but this number could have been influenced by the Olympics.  These figures seem to indicate that the worst of the economic slowdown might be over.

Industries that are expected to show the most growth and will need the manpower to do so are the utilities and transportation industries, expected to make up 20 percent of the new hire numbers.  This is followed by the finance, real estate and insurance fields at 18 percent of those businesses hiring throughout Vancouver and Western Canada.  Construction and mining sectors are also strong.

Nationwide, Canada also expects a good second quarter for hiring, expecting a seven percent increase in jobs. Last years posted net hiring number was one percent.

Vancouver Realtor® Blog - March 8th/2010

Canada Shows the World That We Are One Country, One People and We Are Proud of It

The Olympic Games in Vancouver united Canada.  No matter the crowds, the congestion, the ridiculous surcharges imposed by an overwhelmed BC Ferry system, the sporadic protesters and a first week that was less than stellar, no one can deny that simple fact.
It started with the torch run.  Over a million people applied to carry the flame.  A lucky 12,000 were granted the honour.  They carried the torch for 45,000 kilometres across Canada, sharing the glow with all who wanted to come bask in it.  Organizers made it as easy as possible for those wanting to see that flame to make it happen.  The route put the torch within an hour’s drive of more than 90 percent of Canada’s population. Everywhere it went the torch was greeted by a sea of red and white.

Canadians who could not get to the events were glued to their TVs as much as possible. It was almost as if the whole country was on an unofficial two week vacation.  Even houses of worship got into the swing of things, in at least one case exchanging a Sunday service for a group viewing of the final hockey game between USA and Canada.  Prayers were said from pulpits, encouraging a favourable outcome.  They worked.

Retail and restaurant outlets in Vancouver benefited greatly from the games.  In Yaletown, restaurant sales were up by 130 percent.  Downtown Vancouver saw an increase of almost 90 percent. Olympic gear was flying off the shelves, and by the time the men’s curling and gold medal hockey game were scheduled, it became hard, then impossible to find an official Olympic sweatshirt.

So what now?  Much like the sigh of relief and hint of sadness after a much anticipated event, Vancouver will take a breath and absorb the ups and downs, mostly ups, of an amazing two weeks in February of 2010.  The city is expecting a financial and tourism windfall after such nationwide and world wide exposure.

 Even if that doesn’t happen, the fact remains that Canada has changed, for the better. We are more united as a nation than we have ever been.  We welcomed the Olympics and the world with one voice, one heart, and we are stronger for it.
 

Vancouver Realtor® Blog - February 13th/2010

2010 Winter Olympic Games in Vancouver

The time is almost here, when the world will descend upon Vancouver for the 2010 Winter Olympic Games, along with the Paralympic Games also.

It was over twelve years ago that the West Coast mega-city decided that it wanted to host the ultimate sporting event.  More than a quarter of a million people are expected to attend the events.  From the 34,000 sponsors to the 7,000 athletes, there will be people from every corner of the earth in Vancouver for the Winter Olympic Games.

Over three billion people are expected to watch the events on TV. There is a media frenzy in Vancouver, and they are writing about anything they can think of, from the drug problems to the mild weather that has ruined the slopes of some freestyle courses, there is no subject the media will leave untouched.

The Olympics Games are more than just an extremely competitive spectacle of the world's best athletes, but it will be a major opportunity to sell advertising, and an even bigger opportunity for sponsors to broadcast messages and products to the world.

Not only will the ads help sponsors, Vancouver hopes that the attention and picturesque setting will show the world that Vancouver is a world-class city.  City Officials even hope that the spotlight triggers investment capital from all over the world to flow into Vancouver.

Vancouver Realtor® Blog - January 28th/2010

Vancouver's Market Seems Strong

The Conference Board of Canada released some data that suggests the real estate market in Vancouver will not continue to heat up as it did in 2009.  Senior economist, Robin Wiebe, says that although the number of sales in December 2009 was triple the number in January 2009, new listings have also increased, keeping the market balanced.

He thinks that it wouldn't take much to tip the market into an area where prices would be ripe for sellers, which would then again bring more pressure on prices.

The Conference Board identifies Vancouver as one of the Canadian cities where prices will rise about five percent.  The Conference Board has quite bold predictions, expecting to see over seven percent increases in cities such as Saskatoon and Montreal.  They don't believe that any Canadian city will see a decrease in prices through 2010.

The estimates are not exactly based on the entire economic forecast of Canada, but they cite the strength of recent sales and rising prices as the basis for the improving market conditions they predict.

In 2009, over 73,000 homes were listed for sale, as opposed to only 54,000 homes listed in 2008.  The year-over-year increase is quite dramatic, and it will play a big role int he way the market shapes up for 2010.

Vancouver Realtor® Blog - January 25th/2010

City Of Coquitlam Asks to Borrow $4 Million

The city of Coquitlam is using an alternative approval process for the $4 million it needs to borrow to widen Coast Meridian Road, where it runs between Victoria Dr. and David Ave.  Instead of being able to vote on the matter, eligible voters of Coquitlam who oppose the loan can tell the council through a response that must be submitted by Feb. 15, 2010.

According to city staff, is more than ten percent of voters reject the city's request to borrow the money, then the project to widen the road will not be carried out this year.  The alternate approval process saves the city money by avoiding the cost of a referendum. The process will speed up the rate at which the city begins the process, allowing it to take advantage of low interest rates and low labor costs.

The entire project is planned to cost $5.5 million, with $1.5 million coming from the city and the other $4 million being borrowed from the Municipal Finance Authority.  For anyone who wants to submit an elector response must be Canadian citizen, 18 years of age or older, been a resident of British Columbia for the last six months, lived in the city of Coquitlam for at least 30 days, and must not be disqualified from voting in an election.

All responses must be received by 5 p.m. on Monday, February 15, 2010 to be valid.  The same type of alternate approval process was used in neighbouring municipalities, such as when the Sunshine Coast Regional District borrowed money to improve the water pipes.

Vancouver Realtor® Blog - January 19th/2010

British Columbia Posts Strong December Housing Sales

British Columbia’s real estate market finished the year with a bang.  Coastal and southern property markets had a remarkably strong December, enough to energize sales through the first part of 2010. The BC Real Estate Association (BCREA) was quite pleased with its Tuesday report findings.

The Multiple Listing Service showed 5,703 homes sold in the province in the month of December.  This is a 132 percent increase from December of 2008.  Yearly sales totalled 85,028 sales, 23 percent higher than in 2008.  After housing prices fell to their lowest in January of 2008, the average home price climbed to $465,725 by the end of 2009, besting the 2008 average by 2 percent.

Cameron Muir, a chief economist with the BCREA believes that most of those who were tempted to buy homes because of the low interest and price points have already done so. The lure of getting a mortgage that allowed you to carry a loan at a 27 percent saving over 2008 rates was a huge incentive in March of 2009.  By December of 2009 the margin of saving on carrying costs dropped to 15 percent lower because of rising house prices.

Even with the expected interest rate raise and the stabilization of housing prices once more inventory does come on the market, the general opinion is that sales will be at a slower pace but they will remain steady until year end. It’s just the market taking it easy after its breathtaking meteoric journey.

Vancouver Realtor® Blog - January 13th/2010

What a Difference a Year Makes

The mood at this years Sutton Christmas party was decidedly more upbeat than Christmas of 2008. Last year the condo marketer was dealing with layoffs, lack of sales and plunging real estate prices. Developers were putting projects on hold indefinitely. There was of course, no sense building if no one was buying.

Christmas 2009 was totally different. The festive Polynesian party goers were celebrating an incredible reverse of fortune marked by near record sales and a renewed interest in building new properties.

True, 2009 started out with a whimper having only 724 sales in Metro Vancouver. By February the number of sales increased to 1,480 units and by June an amazing 4,259 units changed hands. Sales were strong through the remainder of the year.

The rebound in the real estate market was helped by the Bank of Canada reducing its interest rates to those not seen since the 1950s. Combined with the lower home prices and relaxed mortgage and credit rules more people were able to get into the market particularly later in the year when the general economy in Canada showed signs of recovery. Interest rates are expected to stay low until the latter half of 2010.

The increase in sales has also caused housing prices to increase. Metro Vancouver has nearly recovered its 15 percent loss in property values that it suffered during the economic crisis. In November of 2008 the average price of a single family home was $745,000. By November of 2009 that average price increased to $903,000, almost catching up to it pre-crisis rate of $920,000 from February of 2008.

Sales are expected to slow somewhat in 2010 especially when more homes become available on the market and when interest rates are adjusted in the latter part of the year. The number of sales for 2010 is expected to exceed those of 2009 but at a much slower, steadier pace that is more in tune with Canada’s overall economic recovery.

Vancouver Realtor® Blog - December 11th/2009

Vancouver’s Housing Market Sees Great Price Strength

Real estate giant, ReMax, recently released its 2010 housing market outlook, and they expect Vancouver’s real estate market to see a staggering, 45% increase in the number of sold units.  The activity shows signs of strength for the Canadian housing market after a dismal 2008 and a horrid first quarter of 2009.  ReMax says that the $640,000 average home price they expect for homes in Vancouver during 2010 will be a record, compared to a national average home price of $325,000.

Kelowna and Victoria have the next highest average home prices of the twenty-three major cities across Canada.  ReMax says they feel comfortable calling the bottom of the market when the average home price in Vancouver was at a low of $530,763 in March of 2009, but since then the average price of a home has jumped more than three percent.

Calgary and Toronto round out the top five cities with the highest average home prices this year.  ReMax also mentioned that the best prices for homes would be found on Price Edward Island, where the average price from a single-family home is merely $150,000.

Vancouver Realtor® Blog - November 29th/2009

Fight Over Broadcasting Revenues Will face CRTC Hearings

Inside of a hearing room in Gatineau, Quebec, the major television networks of Canada will be taking on the likes of biggest satellite and cable television providers.  The major TV networks have proposed that the cable and satellite operators must pay the broadcasters for the signals that are used to disseminate cable and satellite signals. 

Although the proposal by the major broadcasters has been dismissed twice by the CRTC, the broadcasters have recently began a third campaign in light of financial losses the broadcasters, such as CTV, Global and CBC, endured this past year.

Both sides of the battle have spent millions of dollars on public advertising and lobbying campaigns that seek to discredit the other side of the argument.  The satellite and cable providers are quick to dismiss major networks’ campaign as a greedy, self-serving plea to gain more profits, while the broadcasters explain that the cable and satellite companies take in enormous profits from subscribers by using the signals that are provided by the major public networks.

The major networks expect the CRTC to allow them to charge carriers for their signals in relation to the number of subscribers that the signal is reaching.  A lot of money is at stake here, and the CRTC is also considering putting a cap on the amount of money that the major networks are allowed to spend on U.S. programming.  The potential changes to the Canadian TV industry could account for the biggest overhaul the TV industry has seen in decades.

Vancouver Realtor® Blog - November 25th/2009

B.C. Real Estate Market Saw Highest October Home Sales in Five Years

The B.C. Real Estate Association recently reported that the province had the highest monthly home sales rate for October since 2003.  Home sales were up 115% from this time a year ago.  In October, there were 8,624 sales completed through the Multiple Listing Service, but about half the sales, 3,767 of them, were within the Real Estate Board of Greater Vancouver’s territory, what is known as the metro area.  That number is an increase of 171% since October 2008.  Year-over-year numbers are staggering, inferring the market may be much stronger than people expect..

B.C. Real Estate Association’s chief economist, Cameron Muir, thinks the recession is impacting urban real estate much less than it is affecting the resource-oriented communities.   In saying this, like most economists, he doesn’t think the trend has strength to sustain itself.  He sees sales beginning to dwindle as the new year approaches.  He thinks the buying is simply due to the record-low interest rates, and he thinks buyers will be scarce when interest rates are raised in 2010.

The province saw 17% gain in average MLS home prices from year-age.  Year-over-year increases in average home value were up approximately 15% in the region.  Muir admits that the data seems to lead him to draw the conclusion that we are in a buyer’s market and that prices will be rising even more.
 

Vancouver Realtor® Blog - November 18th/2009

Houses Made With Wheat Straw Can Withstand Earthquakes, if Not the Big Bad Wolf

Reminiscent of the tale of The Three Little Pigs, Canadian researchers have arrived at a way to build houses made of straw. Incredibly, houses constructed with materials including waste straw from wheat stand a significantly better chance of holding up in earthquake zones. Edmonton’s Alberta Research Council developed the technology to use wheat straw as an ingredient of a substitute plywood product called Oriented Split Straw Board. The wheat fibers are compressed, and resin is added to the compound, making it more flexible and able to withstand the shocks of earthquakes.

The technology is currently being employed at the China plant of Panel Board Holding Ltd., a company based in the Netherlands. With production having begun October 18, the factory is taking full advantage of China’s abundance of wheat straw. Armed with predictions that China will require 200 million new residences within 20 years, Panel Board Holding plans to construct two additional factories in China. As China was struck by a massive earthquake in 2008, the country is ripe for technologically advanced building materials.

Harvesting wheat straw would produce the valuable side benefit of reduced carbon emissions, as wheat straw is typically burned at the end of growing seasons.

Vancouver Realtor® Blog - November 16th/2009

TransLink CEO Departure Coincides With Review of Agency

The timing of the resignation of TransLink CEO Tom Prendergast is being viewed with suspicion among Vancouver officials. Only 16 months after assuming the top position at TransLink, Prendergast is returning to New York, where he will become the president of the city’s Transit Authority.

His sudden departure, effective November 30, comes shortly after a November 6 review of TransLink by the provincial comptroller-general. Shirley Bond, transportation minister, ordered the review last July. Bond contended that Prendergast’s exit does not coincide with the review, or any performance-related issues.

However, others affiliated with the ten-year-old TransLink agency believe that Prendergast’s tenure was plagued by financial deficits and policy disagreements with the province. Transit booster and former city councilor Gordon Price believes that Prendergast was fighting a losing battle for support and line expansions.

Prendergast, who spent much of his 30-year career at the New York Transit Authority and Long Island Railroad, will be charged with ushering in technology enhancements, contending with budget cuts and solving financing problems at the NYTA. His interim successor at TransLink will be Ian Jarvis, the agency’s chief financial officer. A search is underway for a new CEO.
 

Vancouver Realtor® Blog - November 6th/2009

How The Real Estate Market In Vancouver Has Taken A Turn For The Better

Even though one would only expect the capital, Ottawa to be progressing well in terms of financial recovery, Vancouver is not far behind. A recent figure released by the Canadian Real Estate Association clearly stated that Vancouver is one of the fastest growing real estates cities in the entire country at the present time.
In comparison to Vancouver’s amazing increase of 35%, other more popular cities such as Toronto and Calgary only saw a small increase between 10 – 20%. That may not seem like much in percentage terms, however once converted into monetary value, the story becomes quite some different.

As other news articles have already mentioned, this year alone has seen the largest increase from the year 2002. With markets reaching peak heights before the depression occurred, many feel there is a bright future ahead for the real estate world.

As one would expect, seeing that the demand of houses has increased in Vancouver, so has the price and demand. There are some areas in Vancouver that are currently doing much better in comparison to others however on an over all analysis, Vancouver has taken a turn for the better.

Just as a taste of how quick fire the real estate market has become in Vancouver, a recent listing of a house on Prince Edward Street has gone up for re-sale. The expected value that it will be listed for is about the $1 million mark and already a few buyers are willing to pay the full price without evening visiting the place. Those that know that this is a great investment opportunity to grab are doing so and so can you.

Taking a look at the average price demand for houses in Vancouver, the market has seen an increase of up to 20% from $610,576 in this year alone. The markets peak however was in may this year when it peaked at $624,630, however the current figures is running steadily and is expected to remain for quite some time.

Many experts have been quote claimed that due to the low interest rates offered by the government and other incentives, there has been an “explosion” in the way the market runs. Already so many consumers are showing their confidence in the market and only positive signs lie ahead.

A recent real estate owner published his recent figures of house sales in Vancouver stating that it sold 36 houses that accumulated to over a million dollars. Out of which 20 of these were sold in the last six months alone. As one can see there is a huge contrast between the housing markets in the first quarter where only two to three houses were being sold.

Vancouver Realtor® Blog - November 3rd/2009

Real Estate Mogul Rob Rennie Unveils $10 Million Private Art Gallery in Vancouver

Though Rob Rennie is well-known for his real estate activities, art remains his first love. This indecipherable icon of Vancouver has taken a sabbatical from his efforts to sell Olympic Village condominium properties, and has unveiled an art collection that has turned out to be one of the most talked about collections to hit the city in years. While some may question his motivations, Rob Rennie’s private gallery in the city’s Chinatown certainly seems as though it is a real celebration of modern art.

It is ironic that Rennie’s name has thus far overshadowed the art gallery, primarily as a result of his local celebrity status. It is rare that the opening of a new art gallery can generate the type of hype and crowd participation that Rennie’s gallery has. It is particularly rare in t cases of a gallery such as this one, open as it is to appointment only. Still, this is no ordinary gallery. To begin with, it is situated in the Wing Sang building, constructed in 1889 by Chinatown icon Yip Sang – the man who made his fortune hiring Chinese laborers who has built the Canadian Pacific Railway. That, combined with the $10 million spent by Rennie to renovate the property, leaves little wonder why this project has garnered so much attention.

Despite that, Rennie insists that this project owes more to his continuing passion for art and the neighborhood – he was raised in Downtown Eastside – than to any desire on his part for profit. Rennie reportedly purchased his first piece of art when he was 17 years old. It was a Norman Rockwell print, and it was the beginning of a collection that he would continue to build for the next thirty years. Serving on the American acquisitions board of London’s Tate Modern, Rennie’s knowledge of art takes a backseat to no one. His collection has impressive depth and breadth, including more than 170 artists, with multiple pieces from 40 of them.

The collection can hardly be considered a “safe” one, as the gallery’s first shows are slated to include works from Richard Jackson, Amy Brisoon, Palestinian Mona Hatoum, and Kerry James Marshall. Each of those artists have made a point of dealing with issues concerning geographic politics and identity, which are also issues which Rennie concerns himself and about which he deflects questions. Of particular note is one key piece that will be installed on the sixth story roof and be visible to residents throughout the city of Vancouver – including those troubled areas that Rennie is attempting to sell. The piece is by Britain’s Martin Creed, and consists of a neon sign with the words “Everything is going to be alright.”

Within the 20,000 square foot building, there are six different gallery areas which each represent a particular challenge the artists included in the gallery. The most incredible aspect of all of this is the fact that Rennie has no plans to charge any of the gallery’s visitors. The gallery will remain private, and only open to those with scheduled appointments on Thursday.
 

 

Vancouver Realtor® Blog - October 21st/2009

Jack Poole - The Man Who Helped Bring The Olympics To Vancouver Has Passed Away

Many Canadians do not see Jack Poole as a man of the people. His immense wealth and government acquaintances make him seem self-centered and greedy, but this is hardly the truth. Jack Poole truly lives the good life in more ways than one. He selflessly helped Vancouver capture the rights to host the 2010 Winter Olympics.

Many politicians speak very highly of Mr. Poole, calling him one of the most impressive people ever. Others politicians call him classy and down-to-earth. Infact, these same politicians say that no single person did more than Mr. Poole did to ensure the 2010 Winter Olympics would be held in Vancouver.

Poole says it was a pleasure to help the community in such an empowering way. After the idea seemed dead, Poole was able to breath new life into the project of bidding for rights to host the 2010 Winter Olympics by calling many private-sector friends for the needed funds. Poole was also able to form an effective, fully-functional team who was able to hire a great chief operating officer to oversee Vancouver’s bid for the 2010 winter games. The rest is history.

Vancouver Realtor® Blog - October 21st/2009

Vancouver Real Estate Market Roars Back

Bidding wars are coming back to Vancouver. Once the hallmark of a raging real estate market, bidding wars on properties all but disappeared during the current recession. However, realtors report that certain homes for sale have received multiple offers, some from potential buyers who have never stepped inside the properties.

Prices are growing over a limited inventory in some Vancouver areas. For example, several buyers have made offers on a home on Prince Edward Street prior to its officially being shown. The home’s list price will be $1.27 million.

The Canadian Real Estate Association reports that Vancouver is currently the country’s most competitive residential real estate market, with a 34 percent sales hike for the third quarter versus the same period last year. This represents the largest quarterly sales increase versus year-ago recorded since 2002. Vancouver’s sales jump towers over those compiled for Toronto and Calgary, with nonetheless impressive quarterly sales gains of 11 percent and 19 percent, respectively.

The average price home price of $610,576 in the Vancouver market represents a gain of 20 percent over prices in November 2008, when the real estate market fell precipitously. The average price of a home in British Columbia has jumped 20 percent from a November 2008 low of $395,687 to a September rate of $474,169.
 

 

Vancouver Realtor® Blog - October 16th/2009

Canadian Housing Market Rebounds

In early September, The Canadian Real Estate Association announced that the home sales and home prices have continued to rise since they hit lows about six months ago. During August, 42,483 homes were sold, a number 18.5% higher than the number of August home sales in 2008.

Economists do not believe the gains can continue because as home prices rise, the market will consolidate gains, and buyers will disappear. As housing prices move higher, people will be less eager to buy.

Although month-to-month sales declined, data shows that the housing market has significantly recovered over the past four months, with home prices on the rise because there is better demand. Home sales declined by only 240 units from July to August. Stabilization is taking place.

With record-low interest rates and a sense that economic recovery is upon us, housing markets across the globe are seeing an increase in home buyers, especially Canada and the United States.

The CREA also announced that housing sales are up across many regions. Year-over-year sales rose 117% in Vancouver and 27% in Toronto. Modest increases in sales activity were also seen in Calgary and Montreal. A market-weighted average shows a 5.3% rise in prices across Canada. Great news for the country’s housing market.
 

Vancouver Realtor® Blog - October 9th/2009

Lower Mainland Home Sales Up, Despite Pricing Variables

First-time home buyers continue to delve into the real estate market, maintaining Lower Mainland sales and elevating prices. Per the Multiple Listing Service (MLS), September sales for the Vancouver area include 3,559 transactions, an increase of 3.4 percent versus August. The average price of detached-unit and condominium homes rose 1.6 percent in September versus a year ago. Home prices recouped some, but not all, of the losses incurred since the housing market peaked in mid-2008.

Low interest rates continue to entice first-time home buyers, according to Scott Russell, president of the Real Estate Board of Greater Vancouver. Mortgage rates fell to all-time lows in May. Although they have increased slightly, they are still sufficiently appealing to lure potential buyers. Sheena Hanbury, vice president of retail services at Coast Capital Savings, noted that in the most recent quarter, her company granted three times the number of mortgages in the $100,000-plus range than it did during the first three months of 2009.

Attractive mortgage rates are also enhancing sales in the Fraser Valley, a region with boundaries from Surrey to Abbotsford, including Mission. First-time home purchasers accounted for some 30 percent of all recent buys in this area. Fraser Valley home prices registered a –2.9 percent drop in September versus the same month last year.
 

 

Vancouver Realtor® Blog - October 3rd/2009

North American Real Estate Comparisons

North American home prices are all over the map, literally. A 2,200 square foot four bedroom 2 ½ bath family home in the southern California neighbourhood of La Jolla will cost an average of $2.1 million USD. On the other end of the scale, that same home in Grayling, Michigan will bring an average of $112,675.

Canada’s home market has huge value fluctuations as well, but not nearly as dramatic as those in the United States. The same home in Vancouver runs an average of $1.3 million. On the other end of the scale, a home in Charlottetown will bring $158,667. Vancouver actually ranked 10th in most expensive home markets in North America. Interestingly enough, if one drives to Burnaby, about 20 minutes from the city centre, the price for that same four bedroom home drops to $657,250.

Alberta, where the real estate market is holding its own in the current economy, boasts Fort McMurray as the most expensive locale in the province, with the average price of the same home $638,000. This exceeds pricing in Alberta’s two largest cities, Edmonton pricing out at $432,250 and Calgary at a bit more at $525,525.

At present, real estate in Canada can be considered a relative bargain.
 

Vancouver Realtor® Blog - September 25th/2009

Metro Vancouver Leads Nation in Home Resales

Metro Vancouver is leading the rebound in national home resales with an impressive 117 per-cent increase in August, compared to sales figures from August, 2008.

According to the Canadian Real Estate Association, 42, 483 homes listed with the Multiple Listing Service Systems were sold in August, 2009.

Real estate expert Tsur Somerville from the University of B.C. agrees that the dramatic increase in sales is surprising; however, he also states that sales in Metro Vancouver peaked higher and declined more quickly and steeply than in other parts of the country, which may in part account for the huge swell in home sales.

Metro Vancouver’s recession was severe, but rather short term. The housing numbers, according to Somerville, seem to reflect that.

The CREA statistics show that Metro Vancouver’s 117 per-cent increase in sales in August 2009 was the largest in the nation. B.C. saw a 67 per-cent increase from the same month a year ago. Ontario experienced a 16-per-cent increase with 18, 067 homes sold. Quebec, where 5,709 homes sold, saw a 5.2-per-cent increase.

Nationally, the sales in August increased 18.5 per-cent from the same month in 2008. It is the third consecutive annual increase of more than 15 per-cent.
 

 

Vancouver Realtor® Blog - September 16th/2009

Have Vancouver Home Prices Hit Bottom?

A recent RBC Economics report states that more consumers can afford homes since this time last year. The report covers April through June of 2009, however, and may already be out of date. The season rise in prices means that the market has responded and buyers are becoming less timid.

The RBC report also states that this may indicate that housing prices have hit bottom and are on the rebound.

For instance, the cost of detached bungalows fell 11.3% from the previous year to 58.4%. Standard two-storey homes prices dropped 12.8 points to 64.4 per cent. Town homes fell 7.6 points to 45.6%, and condominium prices dropped 6.2 points to 32.7%.

The drop in prices for British Columbia in the same quarter was less dramatic, with bungalows dropping 0.7%, two storey homes down 0.9%, town homes reaching 1.0%, and condo prices falling only 0.1%.

The report goes on to state that prices are still well above averages measured over the long term in spite of the sharpest declines since 1991.

The report cannot account for the increase in buying as the usual technical indicators of economic growth or inflated prices due to speculation are not in play, the report states.
 

Vancouver Realtor® Blog - September 10th/2009

Canada’s Housing Market Hit Record High in July

Weak economic conditions were no match for Canada’s housing market, as existing-home sales jumped a record 18.2% in July. High economic confidence, combined with lower interest rates, spurred the demand.

Economists are actually concerned about the sudden takeoff of the housing market. They fear it may cause a bubble in the prices of homes. One of the reasons they find it alarming is that the market was at a standstill just at the beginning of the year, when it hit a decade low. However, the deputy chief economist at BMO Capital Markets considered the bubble scenario highly unlikely, given the weakness still present in the rest of the economy. Economists also believe the availability of houses will fall in the coming months, causing prices to rise.

Still, interest rates are very low right now, with a 5-year fixed rate mortgage—the most popular option for Canadian home buyers—showing a rate of only 4% from some lenders. Variable-rate mortgages can be had for around 3% interest. Topping that off, the Bank of Canada has promised to keep its rates low until at least the middle of 2010 if conditions allow it. This has given home-buyers the confidence to go ahead and purchase a new home.
 

 

Vancouver Realtor® Blog - September 2nd/2009

August Was Another Busy Month For Vancouver Realtors®

What a difference a year can make.  Last year around this time the Vancouver real estate market was stagnant and most realtors® were busy twiddling their thumbs.  Market statistics are showing that last month was comparable to the market boom of previous years. Over 3400 sales went through the local board, a 120% jump from the same time last year.

The cost of homes also managed to continue with it’s upward trend, the average price in Vancouver was $732,656 last month.  Still lower than last year by 0.7%, the average price is still an indicator that the market is low.

The amount of property changing hands in Vancouver over the summer months has been very similar to the years before 2008.  With the average price down, listings available still up, it’s definitely still leaning slightly towards buyers however most are predicting a more level market in Vancouver over the fall months.

Vancouver Realtor® Blog - August 24th/2009

National Home Sales Up Again

Canada’s housing market is still rising, for the sixth month in a row since February of 2009. The sales in July set a historical record for the month, as over 50,200 homes were sold. That’s almost twenty percent as many sales as took place in July of 2008.

This marks the first time that sales in July have been above 50,000. Compared to the massive 9 percent increase in sales that took place in June the percentage increase in July was not as impressive at a little over 2.5 percent.

Still, the report, published by the Canadian Real Estate Association, is being viewed as proof that the housing market is being re-infused with customers after the abandonment of the recession. Two of the driving forces behind the rebound are likely the historically low mortgage rates and other suggestions that the worst of the recession is over.

In Vancouver, resale activity was up a massive 90 percent compared to one year ago this month, but most markets showed a more reasonable 20 to 25 percent increase. Still, despite the rebound, the number of new listings is less than what it was a year ago by almost 15 percent, a sign that perhaps the market still has a ways to go before it’s fully recovered.
 

Vancouver Realtor® Blog - August 17th/2009

The New RAV Line Starts Providing Service Today!

The Canada RAV line which is the major sky train will start to function as of today. This line starts from Vancouver Airport which is located in Richmond goes all through Vancouver (Cambie) under the water (False Creek) and will go into downtown core.

Laneway Housing in Vancouver are finally being approved from the City of Vancouver as of July 2009 which means that Laneway Housing eg. Is coach houses. Houses with back lanes or big back yards that already do exist you can now build new dwellings without changing the look of the neighbourhood housing.

Also, some other positive points to this is that people would want to live longer at their place since they could have this add on to their dwelling having more space rather than moving out and upgrading to a bigger place and another key point is affordability for these existing homeowners. Also, laneway house will not need upgrades to the existing main house.

This has been something that has been here for long term project and finally as of July 2009 the City of Vancouver is looking to hold a public hearing and this will be in effect right away!

Vancouver Realtor® Blog - August 7th/2009

Renting Homes During the 2010 Winter Olympic Games

If you are looking for a place to stay in Vancouver, Canada during the 2010 Winter Olympics Games, be advised that most of the hotel rooms are already filled to maximum. Fortunately, there are a great many people willing to rent out there homes and apartments to Olympic goers, during this time.

Many people enjoy meeting and getting to know the people that stay in their home for this eighteen day time period. It is a chance for them to meet new people with possibly different backgrounds and ideas, without having to leave their homes.

If you decide to rent a home or partial home, be sure to check the offer out thoroughly. Some travel agents are working with Vancouver. Making sure the home you are renting has a license with Vancouver could help to insure you are will get what you think you are paying for. Ask a lot of questions, do not just go with whatever you are told. Getting a copies of all papers, your questions and answers, and using a third party for deposits, may help should problems arise. Prices can be high, and usually the closer to the game sites, the more costly the rent.

Vancouver Realtor® Blog - July 31st/2009

Will The HST Lead To Paying More For Homes?

At the beginning of July the BC government will implement a harmonizing of the two tax structures we currently pay, provincial and federal tax.  Under our current system, new property owners receive a rebate in taxes that brings it down a fair amount when they move into their new home (around 1.5%).  Some are speculating this to change under the current plan.

It could be unfortunate if this was the case (although not really too surprising) however I’m sure the amount will be pretty negligible.  While their is the possibility it will affect the industry, the real estate market is showing so many signs of strength I’m sure Vancouver Realtors® will adapt.

There is also recent news that the city is considering allowing homes to build "laneway homes" on their property to ease the housing crunch in the Vancouver area.  I’m not such a huge fan of this, although I guess it is a possible solution.  I just worry it could take away from some of the beauty we currently enjoy in our fine city.

Increased taxes on realtor fees and laneway houses, who would have thought we’d be at this spot in the market.  If you don’t like the way the market is, maybe wait a few months, I’m sure it will change.

Neda
 

Vancouver Property Report - July 24th/2009

Another Month Of Increases In The Vancouver Property Market - What Are The Positive Factors

Vancouver Realtors® again saw large increases in activity during the month of June, according to statistics kept it was the 2nd most active on record.  The drop in local prices combined with record low interest rates are the positive factors, and have been able to combat the negative factors in the economy like the unemployment rate.

According the real estate board, 4,259 properties exchanged hands during the month of June, which represents an increase of 76% from the same month in 2008.  Average price of detached properties is still over $700k, which is around the same as it was in May and still down from 2008.

The market is quite remarkable considering the state of the local unemployment situation and the greater global economy.  It’s not long now before the recovery factors are so powerful the market will start heading in the right direction (it already is).  The time is great for those looking to get a great deal as well as those looking to sell.

- Neda
 

Vancouver Realtor® Blog - July 13th/2009

Mayor Gregor Robertson promised to put a bike lane on the Burrard Bridge - Is It Not Time We Gave This A Chance And Ended All The Bickering

Everyone needs to take a collective deep breath.  Now what feels better does it not?  After all, it is just a bike lane.  With the way some people are talking about this contentious issue, you’d think it was something to do with world hunger or a famine.  I’m not sure what everyone expected.  Gregor ran his campaign on a complete environmental agenda, and he was very clear when he told us that he was going to attempt to put a bike lane on the old Burrard Bridge.

How did we respond?  We elected him in one of the biggest margins in Vancouver history!
 

How many times have we heard that politicians don’t keep their promises?  Well this is exactly what he is doing, keeping a promise.  Many commuters aren’t going to like, I admit even I cringe at the thought of going across that old bridge with a lane removed, but you can’t fault the mayor for sticking to what he said he was going to do.

More than likely it won’t work, and drivers will get eternally frustrated by seeing an empty bicycle lane as they are stuck in traffic in one of the major arteries into the city.  It’s definitely avoiding the bigger question, do we not need to do something to the bridge to enable it to offer access to all sorts of transportation, even walking traffic?  Maybe it will work, I’m not sure.

At the very least we have a mayor who sticks to his promises, most municipalities can not say the same.  So at least be happy for that while you are stuck in traffic during a hot summer day without air conditioning!
 

Vancouver Property Report - July 3rd/2009

Market Recovery Is Expected To Be Minor

While it is starting to appear that the worst of the housing market slump is behind, I wouldn’t expect a major recovery anytime soon.  The market’s recovery has largely been to low mortgage rates and a drop in prices.  But now with mortgage rates inching back up, combined with high unemployment figures, it appears the hot market will cool off soon.  This will probably lead to a more balanced market, good for both sellers and buyers.

Most consumers are less afraid then they were at the start of the year, however no one is singing from the mountaintops quite yet.  The resales market in the country is overall very strong, with a high volume of sales in both May and June.  But July numbers always dip, a combination of family holidays and the summer months historically provides a dip in the market.

How will Vancouver properties fair?  The lead up to 2010 is still strongly driving the market, investors are still looking to get into the rental business in time to cash in on the high rents for the Olympics and first time buyers are trying to get in to avoid any potential spike in prices before the Olympics.  The market will have it’s highs and lows throughout the year, but considering where we were in January, everything is looking great right now!

Housing starts are starting to increase, which is always a good sign of a strong market.  Where this market will go, nobody really knows exactly.  But I am starting to see the signs of a healthy more stable market, which is good for everyone.