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Home sales and listings continue to follow historical averages

Wed, 05 Mar 2014 19:44:00 GMT

In the first two months of 2014, the Greater Vancouver housing market has maintained the steady pace set throughout 2013.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,530 on the Multiple Listing Service® (MLS®) in February 2014. This represents a 40.8 per cent increase compared to the 1,797 sales recorded in February 2013, and a 43.8 per cent increase compared to the 1,760 sales in January 2014.

Last month’s sales total mirrors the 10-year sales average for February of 2,547, with just 17 sales separating the two figures.

The sales-to-active-listings ratio currently sits at 18.9 per cent in Greater Vancouver, a 4.9 per cent increase from last month.

“Home buyer demand picked up in February, which is consistent with typical seasonal patterns in our housing market,” said Sandra Wyant, REBGV president. “We typically see home buyers become more active in and around the spring months.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,700 in February. This represents a 2.8 per cent decline compared to the 4,833 new listings reported in February 2013 and a 12.1 per cent decline from the 5,345 new listings in January. Last month’s new listing count was 0.5 per cent below the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,412, a 9.3 per cent decline compared to February 2013 and a 6.4 per cent increase compared to January 2014.

“With the market continuing to perform at a steady, balanced pace, it’s important for home sellers to ensure their homes are priced correctly for today’s conditions,” Wyant said.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $609,100. This represents a 3.2 per cent increase compared to February 2013.

Sales of detached properties in February 2014 reached 1,032, an increase of 46.6 per cent from the 704 detached sales recorded in February 2013, and a 6.3 per cent decrease from the 1,101 units sold in February 2012. The benchmark price for detached properties increased 3.5 per cent from February 2013 to $932,900.

Sales of apartment properties reached 1,032 in February 2014, an increase of 35.8 per cent compared to the 760 sales in February 2013, and a 1.2 per cent increase compared to the 1,020 sales in February 2012. The benchmark price of an apartment property increased 3.6 per cent from February 2013 to $373,300.

Attached property sales in February 2014 totalled 466, an increase of 39.9 per cent compared to the 333 sales in February 2013, and a 9.9 per cent increase from the 424 attached properties sold in February 2012. The benchmark price of an attached unit increased 0.6 per cent between February 2013 and 2014 to $458,300.

Balanced conditions continue in the Greater Vancouver housing market

Mon, 04 Nov 2013 21:08:00 GMT

Home buyer and seller activity continues to mirror historical averages in the Greater Vancouver housing market. These trends have helped keep the region in a balanced state for the last nine months.

The Real Estate Board of Greater Vancouver reports that residential property sales in Greater Vancouver reached 2,661 on the Multiple Listing Service® (MLS®) in October 2013. This is a 37.8 per cent increase compared to the 1,931 sales recorded in October 2012, and a 7.2 per cent increase from the 2,483 sales recorded in September 2013.

New listings for attached, detached and apartment properties in Greater Vancouver totaled 4,315 in October 2013. This represents a 0.2 per cent decline from the 4,323 new listings reported in October 2012, and a decrease of 14.2 per cent compared to the 5,030 new listings reported in September of this year.

Last month’s sales were 2.8 per cent above the 10-year sales average for the month, while new listings for the month were 1.9 per cent below the 10-year average.

“We continue to see fairly typical activity when it comes to monthly home sale and listing totals,” Sandra Wyant, REBGV president said. “Today’s activity is helping to keep us in balanced market territory, which means that prices tend to experience minimal fluctuation.”

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 15,257, a decline of 12.2 per cent compared to this time last year, and a decline of 5.3 per cent compared to September 2013.

The sales-to-active-listings ratio is currently at 17.4 per cent in Greater Vancouver.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is $600,700. This represents a 0.5 per cent decline compared to this time last year.

Sales of detached properties reached 1,067 in October 2013, an increase of 35.1 per cent from the 790 detached sales recorded in October 2012 and a 9.5 per cent increase from the 974 units sold in October 2011. The benchmark price for detached properties decreased 0.5 per cent from October 2012 to $922,600.

Sales of apartment properties reached 1,098 in October 2013, an increase of 36.7 per cent compared to the 803 apartment sales recorded in October 2012, and an increase of 14.6 per cent compared to the 958 sales in October 2011. The benchmark price of an apartment property decreased 0.9 per cent from October 2012 to $365,600.

Attached property sales totaled 496, an increase of 46.7 per cent compared to the 338 attached property sales recorded in 2012 and a 29.8 per cent increase compared to the 382 attached property sales recorded in October 2011. The benchmark price of an attached property is $458,000, which is virtually unchanged from October 2012.

Sale and listing activity continues to follow historical averages

Wed, 02 Oct 2013 20:08:00 GMT

Home buyer and seller activity in the Greater Vancouver housing market continues to far outpace 2012, yet is in line with the region’s 10-year averages.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,483 on the Multiple Listing Service® (MLS®) in September 2013. This represents a 63.8 per cent increase compared to the 1,516 sales recorded in September 2012, and a 1.2 per cent decline compared to the 2,514 sales in August 2013.

Last month’s sales were 1 per cent below the 10-year sales average for the month, while new listings for the month were 3.5 per cent below the 10-year average.

“While sales are up considerably from last year, it’s important to note that September 2012 sales were among the lowest we’ve seen in nearly three decades,” Sandra Wyant, REBGV said. “Home sale and listing activity this September were in line with the 10-year average for the month.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,030 in September. This represents a 5.5 per cent decline compared to the 5,321 new listings reported in September 2012 and a 20.2 per cent increase compared to the 4,186 new listings in August of this year.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 16,115, a 12.2 per cent decrease compared to September 2012 and a 0.5 per cent increase compared to August 2013.

The sales-to-active-listings ratio currently sits at 15.4 per cent in Greater Vancouver.

“It’s important to remember that stronger sales activity does not necessarily equate to rising home prices. In fact, home prices have not fluctuated much in our market this year,” Wyant said.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $601,900. This represents a decline of 0.7 per cent compared to this time last year and an increase of 2.3 per cent compared to January 2013.

Sales of detached properties reached 1,023 in September 2013, an increase of 72.2 per cent from the 594 detached sales recorded in September 2012, and a 6.9 per cent increase from the 957 units sold in September 2011. The benchmark price for detached properties decreased 1.4 per cent from September 2012 to $922,600.

Sales of apartment properties reached 1,018 in September 2013, an increase of 50.6 per cent compared to the 676 sales in September 2012, and an increase of 10.4 per cent compared to the 922 sales in September 2011. The benchmark price of an apartment property decreased 0.5 per cent from September 2012 to $366,600

Attached property sales in September 2013 totalled 442, an increase of 79.7 per cent compared to the 246 sales in September 2012, and a 20.4 per cent increase from the 367 attached properties sold in September 2011. The benchmark price of an attached unit is currently $458,300, which is unchanged from September 2012.

The summer housing market remains active in Greater Vancouver

Wed, 04 Sep 2013 18:27:00 GMT

August activity in the Greater Vancouver housing market finished well above last year’s pace and slightly below the 10-year average for the month.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,514 on the Multiple Listing Service® (MLS®) in August 2013. This represents a 52.5 per cent increase compared to the 1,649 sales recorded in August 2012, and a 14.7 per cent decline compared to the 2,946 sales in July 2013.

Last month’s sales were 4.6 per cent below the 10-year sales average for the month.

“We’ve seen a healthy amount of demand in the marketplace this summer compared to the number of homes listed for sale,” Sandra Wyant, REBGV president said. “The market today is much stronger than we saw last year and is consistent with our long-term averages for this time of year.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,186 in August. This represents a 3.5 per cent increase compared to the 4,044 new listings reported in August 2012 and a 13.8 per cent decline from the 4,854 new listings in July of this year.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 16,027, which is an 8.8 per cent decrease compared to August 2012 and a 3.6 per cent decline from July 2013.

The sales-to-active-listings ratio currently sits at 15.7 per cent in Greater Vancouver. This ratio remains consistent with balanced market conditions.

“People entering the market should not confuse stronger sales activity with rising prices. Home prices have been quite stable and consistent for much of this year,” Wyant said.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $601,500. This represents a 1.3 per cent decline compared to August 2012 and an increase of 2.3 per cent since the beginning of 2013.

Sales of detached properties reached 1,052 in August 2013, an increase of 69 per cent from the 624 detached sales recorded in August 2012, and a 3.1 per cent increase from the 1,020 units sold in August 2011. The benchmark price for detached properties decreased 2 per cent from August 2012 to $923,700.

Sales of apartment properties reached 1,018 in August 2013, an increase of 40.4 per cent compared to the 725 sales in August 2012, and an increase of 6.6 per cent compared to the 955 sales in August 2011. The benchmark price of an apartment property decreased 1.1 per cent from August 2012 to $366,100.

Attached property sales in August 2013 totalled 444, an increase of 48 per cent compared to the 300 sales in August 2012, and a 10.2 per cent increase from the 403 attached properties sold in August 2011. The benchmark price of an attached unit decreased 1.1 per cent between August 2012 and 2013 to $457,000.

July home sale activity increases in Greater Vancouver

Fri, 02 Aug 2013 18:51:00 GMT

Sunny weather did not slow the pace of home sale activity in July. Last month was the highest selling month of the year in Greater Vancouver and the highest selling July since 2009.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,946 on the Multiple Listing Service® (MLS®) in July 2013. This represents a 40.4 per cent increase compared to the 2,098 sales recorded in July 2012, and an 11.5 per cent increase compared to the 2,642 sales in June 2013.

Last month’s sales were 0.1 per cent above the 10-year sales average for the month.

“Demand has strengthened in our market in the last few months, which can, in part, be attributed to pent-up demand from the slowdown in sales activity we saw at the end of last year,” Sandra Wyant, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,854 in July. This represents a 1.1 per cent increase compared to the 4,802 new listings reported in July 2012 and a 0.4 per cent decline from the 4,874 new listings in June of this year.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 16,618, which is an 8.1 per cent decrease compared to July 2012 and a 3.9 per cent decline from June 2013.

The sales-to-active-listings ratio rose two and-a-half percentage points between June and July to 17.7 per cent in Greater Vancouver. This is the highest this ratio has been in Greater Vancouver since April 2012.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $601,900. This represents a decline of 2.3 per cent compared to this time last year and an increase of 2.3 per cent over the last six months.

“Home prices continue to experience considerable stability with minimal fluctuation throughout much of this year,” Wyant said. “This stability in price brings greater certainty to the home buying and selling process.”

Sales of detached properties reached 1,249 in July 2013, an increase of 59 per cent from the 787 detached sales recorded in July 2012, and a 13.7 per cent increase from the 1,099 units sold in July 2011. The benchmark price for detached properties decreased 3.1 per cent from July 2012 to $920,500.

Sales of apartment properties reached 1,210 in July 2013, an increase of 31 per cent compared to the 927 sales in July 2012, and an increase of 16.3 per cent compared to the 1,040 sales in July 2011. The benchmark price of an apartment property decreased 1.6 per cent from July 2012 to $368,300.

Attached property sales in July 2013 totalled 487, an increase of 27 per cent compared to the 384 sales in July 2012, and a 12.7 per cent increase from the 432 attached properties sold in July 2011. The benchmark price of an attached unit decreased 2.6 per cent between July 2012 and 2013 to $456,700.

Balanced conditions provide a stable backdrop for today’s home buyers and sellers

Fri, 05 Jul 2013 17:45:00 GMT

The Greater Vancouver housing market continues to maintain a relative balance between the number of homes for sale and the number of people looking to purchase a home in the region today.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,642 on the Multiple Listing Service® (MLS®) in June 2013. This represents an 11.9 per cent increase compared to the 2,362 sales recorded in June 2012, and an 8.3 per cent decline compared to the 2,882 sales in May 2013.

Last month’s sales were 22.2 per cent below the 10-year sales average for the month, while new listings for the month were 11.5 percent below the 10-year average.

“As the term suggests, a balanced market means that many of the key housing market indicators, such as price, are stable and conditions therefore don’t tilt in favour of buyers or sellers,” Sandra Wyant, REBGV president said. “If you plan to enter the market today, identify your needs, consult your REALTOR® and work to build a ‘win-win’ scenario with the people on the other side of the sale.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,874 in June. This represents a 13.2 per cent decline compared to the 5,617 new listings reported in June 2012 and a 13.8 per cent decline from the 5,656 new listings in May of this year.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 17,289, a 6 per cent decrease compared to June 2012 and a 0.4 per cent increase compared to May 2013.

The sales-to-active-listings ratio currently sits at 15 per cent in Greater Vancouver. This is the fourth straight month that this ratio has been at or above 15 per cent.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $601,900. This represents a decline of three per cent compared to this time last year and an increase of 2.3 per cent compared to January 2013.

Sales of detached properties reached 1,102 in June 2013, an increase of 19.7 per cent from the 921 detached sales recorded in June 2012, and a 25.1 per cent decrease from the 1,471 units sold in June 2011. The benchmark price for detached properties decreased 4.3 per cent from June 2012 to $919,900.

Sales of apartment properties reached 1,068 in June 2013, an increase of 4.1 per cent compared to the 1,026 sales in June 2012, and a decrease of 15.6 per cent compared to the 1,266 sales in June 2011. The benchmark price of an apartment property decreased 1.9 per cent from June 2012 to $369,100.

Attached property sales in June 2013 totalled 472, an increase of 13.7 per cent compared to the 415 sales in June 2012, and a 10.1 per cent decrease from the 525 attached properties sold in June 2011. The benchmark price of an attached unit decreased 2.4 per cent between June 2012 and 2013 to $457,000.

Spring months bring balance to Greater Vancouver housing market

Wed, 05 Jun 2013 23:59:00 GMT

While the number of home sales in Greater Vancouver continued to trend below the 10-year average in May, the balance of sales and listings meant continued market stability this spring.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,882 on the Multiple Listing Service® (MLS®) in May 2013. This represents a one per cent increase compared to the 2,853 sales recorded in May 2012, and a 9.7 per cent increase compared to the 2,627 sales in April 2013.

Last month’s sales were 19.4 per cent below the 10-year sales average for the month, while new listings for the month were 7.4 percent below the 10-year average.

“We’ve seen some steadying trends over the last three months,” Sandra Wyant, REBGV president said. “The number of homes listed for sale has been keeping pace with the number of property sales, leading to a balanced sales-to-listings ratio. This is having a stabilizing influence on home price activity.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,656 in May. This represents an 18.3 per cent decline compared to the 6,927 new listings reported in May 2012 and a 3.7 per cent decline from the 5,876 new listings in April of this year.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 17,222, a 3.4 per cent decrease compared to May 2012 and a 2.9 per cent increase compared to April 2013.

The sales-to-active-listings ratio currently sits at 17 per cent in Greater Vancouver. This is the third straight month that this ratio has been above 15 per cent. Previous to this, May 2012 was the last time this ratio was above 15 per cent.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $598,400. This represents a decline of 4.3 per cent compared to this time last year and an increase of 1.8 per cent compared to January 2013.

Sales of detached properties reached 1,212 in May 2013, an increase of 2.7 per cent from the 1,180 detached sales recorded in May 2012, and a 22.8 per cent decrease from the 1,570 units sold in May 2011. The benchmark price for detached properties decreased 5.2 per cent from May 2012 to $917,200.

Sales of apartment properties reached 1,136 in May 2013, a decline of 1.7 per cent compared to the 1,156 sales in May 2012, and a decrease of 7.5 per cent compared to the 1,228 sales in May 2011. The benchmark price of an apartment property decreased 3.7 per cent from May 2012 to $365,600.

Attached property sales in May 2013 totalled 534, an increase of 3.3 per cent compared to the 517 sales in May 2012, and a 7.8 per cent decrease from the 579 attached properties sold in May 2011. The benchmark price of an attached unit decreased 3.2 per cent between May 2012 and 2013 to $454,900.

Spring delivers greater balance to Greater Vancouver housing market

Fri, 03 May 2013 19:27:00 GMT

A closer relationship between home buyer demand and the supply of homes for sale has been having a stabilizing impact on home prices in the Greater Vancouver housing market over the last three months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,627 on the Multiple Listing Service® (MLS®) in April 2013. This represents a 6.1 per cent decrease compared to the 2,799 sales recorded in April 2012, and an 11.9 per cent increase compared to the 2,347 sales in March 2013.

Last month’s sales equate to the lowest April total in the region since 2001 and 20.9 per cent below the 10-year sales average for the month.

“While the number of home sales remains below average, properties that are priced right are selling and we’re seeing greater balance between buyer demand and the number of homes listed for sale. This is having a steadying influence on home prices in the region,” says Sandra Wyant, REBGV president.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,876 in April. This represents a three per cent decline compared to the 6,056 new listings reported in April 2012 and a 21.4 per cent increase from the 4,839 new listings in March of this year. Last month’s new listing count was 0.4 per cent above the region’s 10-year new listing average for the month.

The total number of properties listed for sale on the MLS® in Greater Vancouver is 16,730, a 1.2 per cent increase compared to April 2012 and an 8.2 per cent increase compared to March 2013.

The sales-to-active-listings ratio currently sits at 15.7 per cent in Greater Vancouver. This is the second consecutive month that this ratio has been above 15 per cent. Previous to this, May 2012 was the last time this ratio was above 15 per cent.

“There have been modest increases in home prices across the region over the last three months. This comes on the heels of home price declines of approximately five to six per cent in Greater Vancouver during the last half of 2012,” Wyant said.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $597,300. This represents a decline of 3.9 per cent compared to this time last year and an increase of 1.6 per cent compared to January 2013.

Sales of detached properties reached 1,064 in April 2013, a decrease of 5.5 per cent from the 1,126 detached sales recorded in April 2012, and a 24.1 per cent decrease from the 1,402 units sold in April 2011. The benchmark price for detached properties decreased 5.2 per cent from April 2012 to $914,000. Since January the benchmark price of a detached home has increased 1.4 per cent.

Sales of apartment properties reached 1,052 in April 2013, a decline of 11.6 per cent compared to the 1,190 sales in April 2012, and a decrease of 12.4 per cent compared to the 1,201 sales in April 2011. The benchmark price of an apartment property decreased 2.6 per cent from April 2012 to $365,900. Since January the benchmark price of an apartment home has increased 2.1 per cent.

Attached property sales in April 2013 totalled 511, an increase of 5.8 per cent compared to the 483 sales in April 2012, and a 17.8 per cent decrease from the 622 attached properties sold in April 2011. The benchmark price of an attached unit decreased 3.5 per cent between April 2012 and 2013 to $455,200. Since January the benchmark price of an attached home has increased 1.2 per cent.

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Home sale activity improves but remains below historical averages

Wed, 03 Apr 2013 20:48:00 GMT

Lower levels of both supply and demand in recent months are holding home prices in check in the Greater Vancouver housing market.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,347 on the Multiple Listing Service® (MLS®) in March 2013. This represents an 18.3 per cent decrease compared to the 2,874 sales recorded in March 2012, and a 30.6 per cent increase compared to the 1,797 sales in February 2013.

Last month’s sales were the second lowest March total in the region since 2001 and 30.2 per cent below the 10-year sales average for the month.

“While home sales were below what’s typical for March, we are seeing more balance between the number of sales and listings on the market in the last two months, which is having a stabilizing impact on home prices,” Sandra Wyant, REBGV president said.

The sales-to-active-listings ratio currently sits at 15.2 per cent in Greater Vancouver, a three per cent increase from last month. This is the first time this ratio has been above 15 per cent since May 2012.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,839 in March. This represents a 17.2 per cent decline compared to the 5,843 new listings reported in March 2012 and a 0.1 per cent increase from the 4,833 new listings in February of this year. Last month’s new listing count was 14.4 per cent below the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 15,460, a 1.5 per cent increase compared to March 2012 and a 4.5 per cent increase compared to February 2013.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $593,100. This represents a decline of 3.9 per cent compared to this time last year and an increase of 0.9 per cent compared to January 2013.

Sales of detached properties reached 933 in March 2013, a decrease of 21.1 per cent from the 1,183 detached sales recorded in March 2012, and a 48 per cent decrease from the 1,795 units sold in March 2011. The benchmark price for detached properties decreased 5 per cent from March 2012 to $906,900.

Sales of apartment properties reached 982 in March 2013, a decline of 17.5 per cent compared to the 1,191 sales in March 2012, and a decrease of 39.5 per cent compared to the 1,622 sales in March 2011. The benchmark price of an apartment property decreased 3.3 per cent from March 2012 to $362,100.

Attached property sales in March 2013 totalled 432, a decline of 13.6 per cent compared to the 500 sales in March 2012, and a 34.8 per cent decrease from the 663 attached properties sold in March 2011. The benchmark price of an attached unit decreased 2.5 per cent between March 2012 and 2013 to $454,300.

April 1 marked the return of the GST and PST tax structure in the province. From a real estate perspective, it’s important to remember that:

• sales tax on a new home is reduced to 5 per cent GST plus 2 per cent BC Transition Tax (total 7 per cent) from 12 per cent under the HST; and

• tax on real estate commissions has been reduced to 5 per cent from 12 per cent under the HST.

These reduced tax rates apply to transactions payable on or after April 1.

Source: Real Estate Board of Greater Vancouver

Home sales continue at below average pace

Wed, 06 Mar 2013 23:01:00 GMT

Home sale activity has trended below historical averages for a full year in the Greater Vancouver housing market.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,797 on the Multiple Listing Service® (MLS®) in February 2013. This represents a 29.4 per cent decrease compared to the 2,545 sales recorded in February 2012, and a 33 per cent increase compared to the 1,351 sales in January 2012.

Last month’s sales were the second lowest February total in the region since 2001 and 30.9 per cent below the 10-year sales average for the month.

“Sales in February followed recent trends and were below seasonal averages, though our members tell us they saw more traffic at open houses last month compared to the previous six to eight months, said Eugen Klein, REBGV president.

The sales-to-active-listings ratio currently sits at 12.2 per cent in Greater Vancouver, a two per cent increase from last month. This is the first time this ratio has been above 11 per cent since June 2012.

“With a two-point increase in our sales to active listings ratio and a reduction in the average number of days it’s taking to sell a home, February showed some subtle indications of a changing sentiment in the marketplace compared to recent months,” Klein said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,833 in February. This represents a 13 per cent decline compared to the 5,552 new listings reported in February 2012 and a 5.8 per cent decline from the 5,128 new listings in January. Last month’s new listing count was 4 per cent higher than the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 14,789, a 5.2 per cent increase compared to February 2012 and an 11.6 per cent increase compared to January 2013.

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.6 per cent to $590,400. This represents a 3.3 per cent decline compared to this time last year.

Sales of detached properties in February 2013 reached 704, a decrease of 36.1 per cent from the 1,101 detached sales recorded in February 2012, and a 49.8 per cent decrease from the 1,402 units sold in February 2011. The benchmark price for detached properties decreased 4.5 per cent from February 2012 to $901,500. Since reaching a peak in May 2012, the benchmark price of a detached property has declined 6.8 per cent.

Sales of apartment properties reached 760 in February 2013, a decline of 25.5 per cent compared to the 1,020 sales in February 2012, and a decrease of 37 per cent compared to the 1,206 sales in February 2011. The benchmark price of an apartment property decreased 3 per cent from February 2012 to $360,400. Since reaching a peak in May 2012, the benchmark price of an apartment property has declined 5.1 per cent.

Attached property sales in February 2013 totalled 333, a decline of 21.5 per cent compared to the 424 sales in February 2012, and a 31.9 per cent decrease from the 489 attached properties sold in February 2011. The benchmark price of an attached unit decreased 0.7 per cent between February 2012 and 2013 to $455,500. Since reaching a peak in April 2012, the benchmark price of an attached property has declined 6.5 per cent.

Resale vs New: Condo Price Comparison

Mon, 25 Feb 2013 19:22:00 GMT

Frank Schliewinsky, Strategics Vancouver Condo Report

What’s a better deal, new or resale?

Although the MLS® condo market got off to a slow start in January, there’s still hope that sales will pick up over the next three to four months. For those potential buyers looking for an apartment or townhouse condo over the next few months, the following tables present a comparison of average MLS selling prices for newer condos (less than 5 years old) over the past three months and asking prices for new condo projects that started marketing in 2012. Keep in mind that the average asking prices for new apartment and townhouse condos exclude HST.

The data for new project prices and sizes are taken from the latest edition of the Condo Market Opportunities (CMOP) Report. The CMOP Report is the most complete and up to date analysis of the new condo market in Metro Vancouver. Its 500+ pages cover all new projects marketing and upcoming. It provides an in-depth analysis of present and anticipated market conditions for over 20 market areas as well as practical advice on pricing, product mix and features. For an evaluation copy contact Jeff Hancock:jhancock@mpcintelligence.ca.

The new high-rise market proved to be much more resilient than the MLS high-rise market in 2012. Unlike MLS high-rise sales, which are going through a meltdown, new high-rise sales in 2012 were actually up from 2011. A look at the average prices for newer high-rise condos sold on MLS against average asking prices in high-rise projects that started marketing in 2012 gives some clues as to why the difference.

In almost all markets, the average asking price for new high-rise condos is less than the average MLS selling price of newer units. Granted that buyers of new condos are getting a smaller unit, and once HST is added in, the price difference will decrease or even disappear. But buyers in a new project get the latest in features and maybe some developer goodies and giveaways.

New low-rise projects that started marketing in 2012 didn’t enjoy the sales success of new high-rise projects. Total low-rise sales for 2012 were down by about 400 units from the previous year. There are several reasons for poorer sales in new low-rise projects, but the main one is that new low-rise projects were more likely to target potential owner-occupants instead of investors. Also, it’s apparent from a comparison of average MLS prices for newer low-rise condos over the past three months that there’s not the price gap that is evident in the high-rise market.

In several of the major low-rise markets such as the City of Vancouver, Burnaby, Coquitlam, North Surrey and Langley, average prices in new low-rise projects were considerably higher than for newer units sold on MLS. An exception would be buyers looking at the Richmond market. They could get a much better deal in a new project.

Sales in new townhome projects in 2012 were also down from the previous year. The drop was not as steep as experienced in the MLS townhouse markets. Average asking prices in new townhome projects that started marketing in 2012 were generally considerably higher than average MLS prices for newer townhomes sold over the past three months.

Average asking prices in new townhome projects the North Surrey, South Surrey and Langley markets were lower than average MLS prices but that didn’t seem to help sales. New townhome sales in these markets were on a downward trajectory at the end of 2012.

In-depth regional analysis by housing type here.

Condo/Townhouse Price Calculator here.

Originally Posted From:

http://www.rew.ca/news/resale-vs-new-condo-price-comparison

This Greater Vancouver Condominium Market Overview is compiled by Strategics, a Vancouver-based company providing information and analysis since 1981, helping to minimize marketing risk for apartment condominium developers, lenders, project marketers and investors.

January home sales remain quiet

Fri, 08 Feb 2013 19:08:00 GMT

Home buyer demand remains below historical averages in the Greater Vancouver housing market. This has led some home sellers to remove their homes from the market in recent months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,351 on the Multiple Listing Service® (MLS®) in January 2013. This represents a 14.3 per cent decrease compared to the 1,577 sales recorded in January 2012, and an 18.3 per cent increase compared to the 1,142 sales in December 2012.

Last month’s sales were the second lowest January total in the region since 2001 and 18.7 per cent below the 10-year sales average for the month.

“Home sale activity has been below historical averages in Greater Vancouver for about seven months. This has caused a gradual decline in home prices of about 6 per cent since reaching a peak last spring,” Klein said.

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.9 per cent to $588,100. This represents a 2.8 per cent decline compared to this time last year.

“It appears many home sellers are opting to remove their homes from the market rather than settle for a price they don’t want,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,128 in January. This represents a 10.9 per cent decline compared to the 5,756 new listings reported in January 2012. Last month’s new listing count was 18.9 per cent higher than the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,246, a 5.6 per cent increase compared to January 2012 and a 4.5 per cent decline compared to December 2012. This is the fourth consecutive month that overall home listings have declined in the region.

“When a home seller isn’t receiving the kind of offers they want, there comes a point when they decide to either lower the price or remove the home from the market. Right now, it seems many home sellers are opting for the latter,” Klein said.

With the sales-to-active-listings ratio at 10.2 per cent, the region remains in buyers’ market territory. Since June, this ratio has ranged between 8 and 11 per cent.

Sales of detached properties in January 2013 reached 542, a decrease of 17.8 per cent from the 659 detached sales recorded in January 2012, and a 31.7 per cent decrease from the 793 units sold in January 2011. The benchmark price for detached properties decreased 3.1 per cent from January 2012 to $901,000.

Since reaching a peak in May 2012, the benchmark price of a detached property has declined 6.9 per cent.

Sales of apartment properties reached 576 in January 2013, a decline of 12.3 per cent compared to the 657 sales in January 2012, and a decrease of 19.2 per cent compared to the 713 sales in January 2011. The benchmark price of an apartment property decreased 2.9 per cent from January 2012 to $358,400. Since reaching a peak in May 2012, the benchmark price of an apartment property has declined 5.6 per cent.

Attached property sales in January 2013 totalled 233, a decline of 10.7 per cent compared to the 261 sales in January 2012, and a 25.6 per cent decrease from the 313 attached properties sold in January 2011. The benchmark price of an attached unit decreased 1.7 per cent between January 2012 and 2013 to $449,900. Since reaching a peak in April 2012, the benchmark price of an attached property has declined 7.7 per cent.

Download the complete stats package by clicking here.

Seven secrets to finding a good handyman – and avoiding reno hell

Wed, 23 Jan 2013 01:08:00 GMT

The following article is from Canadian Real Estate Wealth Magazine.

Hunting for the right handyman to help you with your next home improvement? The search is easier than you think A good handyman is an important player on any real estate investors’ team. Having someone you trust for renovations and can depend on in an emergency will really make a difference to your portfolio’s potential – not to mention your stress levels.

So who do you turn to when you’re looking to renovate or repair a property? Here’s a simple guide to finding the right (handy) man for the job.

1) Who’s who.
Before you start looking for home improvement help it’s a good idea to figure which type of professional is best suited to the job. “A handyman doesn’t have a trade license, he knows a little bit about everything,” says Jim Caruk, master contractor of The Caruk Group. “What you have to understand is a contractor doesn’t necessarily have to be a tradesman either. He contracts everything out and he makes sure that the people he brings in are licensed tradespeople – that’s his job.”

If you’re planning a large project that requires the expertise of a number of different professionals then you’re better off looking for a qualified general contracting company. Smaller jobs are usually best suited to a handyman who has a broad range of skills and extensive experience, but is not necessarily licensed.

2) Where to look.
There are several ways to find a good handyman or contractor, says David Foster, director of environmental affairs for the Canadian Home Builders’ Association. “There are some companies that specialize in this, and the time-tested method is asking friends, neighbours and family who they use and would recommend.”

He also suggests checking with HBA websites for “RenoMark” contractors. These contractors are members of the CHBA association and comply with the association’s code of ethics, as well as renovation-specific codes of conduct. In addition they provide warranties, meet regularly to keep up to date with current trends, materials and regulations. Caruk also suggests looking at contractors’ signs in the neighbourhood. “If you see a lot of their signs then obviously they’re on the up and up and you would think that they do good work if everyone keeps hiring them.”

3) What to ask the contractor.
When calling around, there are some key questions to ask that will help you narrow down your search.

· References – ask for at least three names

· Licensing – Licenses expire annually; so you’ll need to look at it to make sure the license is still valid. A license does not guarantee the contractor is a quality tradesperson. Foster adds, “Licensing and so forth varies from jurisdiction to jurisdiction – consumers should check with their municipal building department to determine if any local licensing is required.”

· Insurance – Business liability and WSIS insurance is a must, says Foster. If the contractor doesn’t have valid insurance coverage, you can request him or her to buy temporary insurance. Alternatively real estate expert Paul Hecht suggests having your lawyer draft a general release that stipulates the contractor fully understands that they are responsible for any accident and damage and cannot sue you. This will protect you should something break on your property or there is an injury.

4) What to ask referrers.
Whether you’re asking friends for references, or checking out the list of names provided by the handyman, there are several questions to ask that will help you determine if you’ve found the right person for the job.

· Have you personally used them?
· How many times have you worked with them?
· What did the job entail?
· Did the project start on time?
· Was the work completed on time?
· Was it on budget?
· Were there any problems?
· Would you use them again?
· Are you getting a referrer’s fee?

5) How to get the best estimate.
Price plays a major part in deciding whom to hire. Provide each home improvement professional with the same information. This may include: plans (with simple sketches or full construction drawings), and detailed descriptions of materials and products. According to Caruk they should all be within 10 per cent to 15 per cent of each other. “If you’ve got four or five and you’ve got one that’s really, really high and one that’s really, really low what you usually do is discard the highest and lowest one and work with the three guys in between. Then go with your gut feeling.” Caruk warns homeowners not to get too carried away getting estimates. “If you start getting 10, it just makes it more confusing.”

There is also a risk of alienating good professionals. Caruk usually asks how many others are bidding for the job and if there are more than five he won’t even provide a quote. According to the CHBA, a written offer becomes legally binding and becomes part of the contract between you and the handyman should you accept it. That said there are always unexpected challenges in any project. Make sure you set aside a contingency fund in your budget.

6) What to expect from the contract.
The Canadian Mortgage and Housing Corporation suggests a typical contract might include:

· Description of the work to be done – make this as detailed as possible. Include: prep work, items to be salvaged or reused, waste disposal, structural details, product information, size and location of things like doors, windows, closets and finishing work such as coats of paint and stain.

· Any permits needed and who is responsible for providing and paying for them
· Supplies and materials
· Sub contractors (if needed)
· Timing – when work is to commence and full completion date
· Terms of payment – fixed cost basis, cost plus or cost plus fixed fee
· Payment schedule – Never pay huge sums of money upfront. Some contractors will ask for a down payment as a show of good faith – on average this is about $2,500. Additional payments should be based on the work completed, not time put into the job
· Extras and how they will be calculated
· Washroom facilities and Utilities
· Standards of work (level of clean-up, hours permitted on site)
· Third-party liability insurance details
· Compliance with Workers’ Compensation and other laws
· Warranty
· Default by owner or contractor – indicates what happens if either owner or contractor defaults on terms of contract
· Dispute resolution – an agreed upon process to deal with potential conflicts

7) How to manage your handyman.
The contract forms the basis of your relationship with your contractor or handyman. According to Foster, “In all situations, effective management of a contractor requires clarity about what they are being hired to do, how and when they will do it, what their services will cost and when payment will be due, and what warranty do they provide on their work. It needs to be in writing. Every time. Period.” Once the job is underway, communication and mutual respect will play a vital role in keeping things rolling along smoothly. A good handyman or contractor should not make you feel uncomfortable for asking questions.

On the other side, try to be reasonable with your expectations. The CMHC advises homeowners, “Don’t overreact if something is wrong. Allow sufficient time for a response. As well, things the contractor can’t control, like bad weather and back-ordered components, can delay the job, so leave a little leeway in your schedule for them.” If things start to go pear-shaped, follow the dispute resolution method outlined in the contract. And if all else fails, you can cancel the contract. However, this will likely result in a cancellation fee. Be aware that there are several laws protecting consumers, which vary across the provinces and territories.

In addition to contacting your consumer protection authority, you can also get in touch with the Better Business Bureau. If legal action is necessary, you can take the contractor to small claims court. Small claims are less complicated than a formal court case and do not require the services of a lawyer. Decision in small claims courts are binding.

How to spot a handyman from hell

Bad presentation – Late for your initial meeting? Reluctant to answer questions? Vague about the technical aspects of how they’d handle the job? These are all indications that they might not be capable or trustworthy
Poor communication skills – Communication is absolutely vital to the success of any project. You need someone that is willing to listen to our ideas, concerns and suggestions and who in turn, is able to effectively discuss challenges with you as they come up
Requests cash only payments – Don’t be tempted if they offer a discount to you if you pay in cash. You want to keep as much of a paper trail as possible and all payments should be cheques or certified cheques
Doesn’t provide receipts – make sure you get a receipt for all your payments, signed and dated by the contractor
Does not want signage – Many renovation companies ask to promote their services to your neighbours by displaying signs on the property. According to the Canadian Mortgage and Housing Corporation, if the company does not want to display a sign, it could be an indication it is trying to avoid scrutiny

From Canadian Real Estate Wealth Magazine, a monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

Tips on Preparing Your Home for Sale Day

Mon, 07 Jan 2013 16:07:00 GMT

There are more than 20,000 homes for sale in the Lower Mainland, so making your home stand out for potential buyers is vital. It is especially true in today’s buyer’s market.

First, work with your Realtor to get the maximum exposure for the home. Then prep both yourself and your home for sale day.

Say to yourself, “This is not my home; it is a house—a product to be sold.” Make the mental decision to let go of your emotions and focus on the fact that soon this house will no longer be yours. Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners.

Say goodbye to every room. Don’t look backwards—look toward the future. All sellers want their home to sell fast and bring top dollar. Well, it’s not luck that makes that happen. It’s careful planning and knowing how to professionally spruce up your home. Here is how to prep a house and turn it into an irresistible and marketable home.

Dawna Johnson, an Accredited Staging Professional Master (ASP) says the idea behind staging is to allow rooms to show themselves.Think clean and simple: when prepping a home for sale, get rid of clutter, clean and, if necessary, stage rooms with rented artwork, flowers.

“If your home is vacant, it’s soulless,” Dawna warns. “Without staging, it will probably remain on the market for many months.” She has this practical advice for making a home sparkle:

Apply orange oil to cabinets that appear dry, which will renew their original lustre
Put out large bowls of fruit such as polished apples, bright oranges, luscious grapes
Arrange colourful and fun cookbooks on the kitchen counters

Dawna believes in bringing the outdoors inside through the use of greenery and plants, creating clean, crisp spaces and arranging furniture with plenty of room to walk around.

She says bathrooms are essential to dress well. “Bathrooms should look open, airy and delightful,” says Dawna. One of her favourite tricks is to add baskets filled with spa items such as small towels tied with ribbon, bottles of lotion and scented soaps.

The front and back yards often need staging, too. For patios and decks, Dawna brings in plants and potted flowers and makes sure decks are clean and clutter free. Your Realtor has been through many open houses and will be able to provide other tips on getting your home sale-day ready.

Prices hold firm as home buyers and sellers conclude 2012 from the sidelines

Sat, 05 Jan 2013 20:54:00 GMT

The Greater Vancouver housing market experienced below average home sale totals, typical home listing activity and modest declines in home prices in 2012.

The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2012 reached 25,032, a 22.7 per cent decline from the 32,387 sales recorded in 2011, and an 18.2 per cent decrease from the 30,595 residential sales in 2010. Last year’s home sale total was 25.7 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region.

The number of residential properties listed for sale on the MLS® in Greater Vancouver declined 2 per cent in 2012 to 58,379 compared to the 59,539 properties listed in 2011. Looking back further, last year’s total represents a 0.6 per cent increase compared to the 58,009 residential properties listed in 2010. Last year’s listing total was 6.1 per cent above the ten-year average for annual MLS® property listings in the region.

"For much of 2012 we saw a collective hesitation on the part of buyers and sellers in the Greater Vancouver housing market. This behavior was reflected in lower than average home sale activity and modest fluctuations in home prices,” Eugen Klein, REBGV president said.

Residential property sales in Greater Vancouver totalled 1,142 in December 2012, a decrease of 31.1 per cent from the 1,658 sales recorded in December 2011 and a 32.3 per cent decline compared to November 2012 when 1,686 home sales occurred.

December sales were 38.4 per cent below the 10-year December sales average of 1,855.

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.8 per cent to $590,800. This represents a 2.3 per cent decline when compared to this time last year.

“We saw home prices come down a bit during the latter half of the year. During the same period, we saw fewer home sales and listings,” Klein said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,380 in December 2012. This represents a 15.3 per cent decline compared to the 1,629 units listed in December 2011 and a 50 per cent decline compared to November 2012 when 2,758 properties were listed.

Sales of detached properties in December 2012 reached 425, a decrease of 32.5 per cent from the 630 detached sales recorded in December 2011, and a 44.7 per cent decrease from the 769 units sold in December 2010. The benchmark price for detached properties decreased 2.7 per cent from December 2011 to $904,200. Since reaching a peak in May, the benchmark price of a detached property has declined 6.5%.

Sales of apartment properties reached 504 in December 2012, a decline of 34.9 per cent compared to the 774 sales in December 2011, and a decrease of 37.9 per cent compared to the 811 sales in December 2010.The benchmark price of an apartment property decreased 1.9 per cent from December 2011 to $361,200. Since reaching a peak in May, the benchmark price of an apartment property has declined 12.8%.

Attached property sales in December 2012 totalled 213, a decline of 16.1 per cent compared to the 254 sales in December 2011, and a 33.2 per cent decrease from the 319 attached properties sold in December 2010. The benchmark price of an attached unit decreased 2.6 per cent between December 2011 and 2012 to $450,900. Since reaching a peak in April, the benchmark price of an attached property has declined 4.4%.

“Activity continues to vary depending on area so it’s important to work with your REALTOR® and other professionals to understand the trends in your area of interest,” Klein said.

The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

For more information please contact:
Craig Munn, Assistant Manager of Communications
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146
cmunn@rebgv.org

Greater Vancouver residential property sale and listing activity below 10-year averages in November

Tue, 04 Dec 2012 23:31:00 GMT

Over the past six months, the Greater Vancouver housing market has seen a reduction in the number of homes listed for sale, a gradual moderation in home prices and a decrease in property sales compared to historical averages.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 1,686 on the region’s Multiple Listing Service® (MLS®) in November, a 28.6 per cent decline compared to the 2,360 sales in November 2011 and a 12.7 per cent decline compared to the 1,931 home sales in October 2012.

November sales were 30.3 per cent below the 10-year November sales average of 2,420.

“Home sellers appear more inclined to remove their properties from the market today rather than lower prices to sell their properties. On the other hand, buyers appear to be expecting prices to moderate,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 2,758 in November. This represents a 14.4 per cent decline compared to November 2011 when 3,222 properties were listed for sale on the MLS® and a 36.2 per cent decline compared to the 4,323 new listings in October 2012.

New listings were 12.9 per cent below the 10-year November average of 3,168.

At 15,689, the total number of residential property listings on the MLS® increased 13 per cent from this time last year and declined 9.7 per cent compared to October 2012. Total listings in the region have declined by nearly 3,000 properties since reaching a peak of 18,493 in June.

The region’s sales-to-active-listings ratio was unchanged from October at 11 per cent.

“Home prices in Greater Vancouver have generally declined between three and five and a half per cent, depending on property type, since reaching a peak six months ago,” Klein said. “Changes in home prices vary per municipality and neighbourhood. It’s good to check local market statistics with your REALTOR®.”

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 4.5 per cent to $596,900. This represents a 1.7 per cent decline when we compared to this time last year.

Sales of detached properties in Greater Vancouver reached 629 in November, a decrease of 31.3 per cent from the 916 detached sales recorded in November 2011, and a 40.1 per cent decrease from the 1,050 units sold in November 2010. Since reaching a peak in May, the benchmark price for a detached property in Greater Vancouver has declined 5.5 per cent to $914,500.

Sales of apartment properties reached 750 in November 2012, a 25 per cent decrease compared to the 1,000 sales in November 2011, and a decrease of 28.7 per cent compared to the 1,052 sales in November 2010. Since reaching a peak in May, the benchmark price for an apartment property in Greater Vancouver has declined 3.9 per cent to $364,900.

Attached property sales in November 2012 totalled 307, a 30.9 per cent decrease compared to the 444 sales in November 2011, and a 24.6 per cent decrease from the 407 attached properties sold in November 2010. Since reaching a peak in April, the benchmark price for an attached property in Greater Vancouver has declined 3.6 per cent to $454,300.

Feature Facts:

Of the 15,689 homes currently for sale on the MLS® in Greater Vancouver, 49.6 per cent are listed for $600,000 or less. Of those, 1,321 are detached properties, 5,039 are condominiums and 1,419 are townhomes.
Of the 1,686 homes that sold in Greater Vancouver in November, 273 (16%) sold for $1 million or more.

Property Flipping in the Metro Vancouver Market: A Landcor Study

Mon, 05 Nov 2012 21:16:00 GMT

November 1, 2012
REW.ca

The Metro Vancouver real estate market has climbed since 2002, with one big dip during the recession of 2008–09 and a current flattening trend. During that time interest rates have fallen until they've bottomed out for the last two years.

It's been a fertile environment for flipping: buying properties, improving them (or not) and selling them again in a short time, hoping to make a profit.

Flippers, speculators or short-term investors — depending on what you like to call them — include everyone from the couple who buy a house, fix it up and sell it, to the offshore investor who scoops up pre-sale condos and sells once the building is up, to the builder who knocks down a house and builds a spec triplex with a laneway house in back, all the way to the giant development company that buys up a block of houses and puts high-rise condos in their place.

We wanted to know, is flipping is as prevalent as it seems to be in the real estate markets of Vancouver and the Lower Mainland? And was it ever? We asked Landcor Data Corporation to do what they do best and sift through their stats for the answers.

They tracked eight years of data on houses, townhouses and condos that were bought and sold within short periods of time: under 6 months, 6 months to 1 year, 1 year to 18 months, and 18 months to 2 years. The findings were intriguing:

Flipping activity peaked in 2005–07 and never returned to those levels after the 2008–09 recession
Six-month flips practically disappeared this year
Yields also peaked in 2005–07, despite large increases in home prices and low interest rates after the recession
Except for the bottom of the recession, it's been profitable to flip in the Metro Vancouver market since at least 2004

How much flipping is going on?

The volume chart covers all three housing types (detached, townhouse, condo). It shows that Vancouver has consistently been the investor hot spot in the Lower Mainland. This stands out particularly in the 6-month term, where a property is bought, upgraded cosmetically and turned around fast. In the one-year-plus terms, where properties are being substantially renovated or replaced by new homes, Surrey experienced a surge of activity before the recession. Then, both Surrey and Vancouver saw activity fall off by a factor of two or three afterwards.

Why has activity dropped steeply since the 2008–09 recession? It's fallen off much more than the average housing price has come up.

We talked to a couple of local companies with many years in the building trade to see if the numbers match their observations.

Graham Collins of Kenorah Construction & Design in Delta remembers the pre-2008 market as "the wild west," when a lot of amateurs entered the market with dollar signs in their eyes.

"If you look back to those statistics, five to eight years ago a lot of the companies that were doing this flipping work, they were purely cosmetic changes, and they were not performing all of the code- and bylaw-driven requirements we see now. It's very difficult to get away with that now unless they're going to avoid permiting and do it on the sly."

When it comes to making a quick profit these days by selling homes, he sees three big hurdles:

The enormously escalated cost of buying a property
The increased burden of code and bylaw compliance
The reduced inventory of homes that meet the criteria for flipping

A lot of the good flip opportunities in detached houses have been exhausted, he says.

"You're looking for excellent bones and dated interiors, and therefore the flip is going to focus on that cosmetic upgrade, maybe with some modest reconfiguring. Those are few and far between these days.

"Now the inventory of homes tends to fall into two categories. They're either still in good shape, in which case the seller is trying to capture that value on resale, so there is no flip opportunity. Or this is no longer a $100,000 upgrade, this is a $400,000 upgrade because there are structural, mechanical, performance issues in the home that require a far more invasive level of change.

"And those things are not as visible to the prospective homeowner. People who are going to buy a flipped house are looking for sexy finishing. A builder may have had to upgade mechanical systems, do fireproofing… legitimate costs, but not things that are going to gather the full return on investment."

Lloyd Kinney of MLK Properties in Steveston points to what he calls "the HGTV effect," where it looks a lot easier on TV than it is in real life. Small-time flippers are not going to be able to get an army of skilled workers descending on their property and wrapping it up in three weeks.

"There was a lot of large-scale multifamily activity over the last five years. It was very difficult to get trades when it was busy because the trades were focusing on working with the big developers. So to go and do a one-off here and there, it was very difficult to line up. And then if you did manage to get them there, you were going be charged at a premium, so that affects your return on investment."

He also sees the HST, introduced in July 2010, as a big factor.

"If you are someone who flips homes on the side, you're going to wait until HST runs out. If you're building a new home from scratch and you have to add another 12% on top of the already increased land values and inflated home prices, it makes it a lot tougher for homeowners to make that return. So on a million- or two-million-dollar home investment, you're saving yourself hundreds of thousands of dollars."

In other words, flipping has dropped off in the Lower Mainland because it's become less profitable. And the numbers bear that out.

Is there money to be made?

These charts show the percentage increase in value from bought date to sold date. We don't know how much was invested in improving the properties, so the charts can't tell us actual profits, just yields.

Except for the trough in 2008–09, yields have consistently been over 10 per cent — in many cases, spectacularly so. Compare that to a stagnant stock market and low bond rates, and flipping appears to be a great investment.

But it's not for the faint of heart. Lloyd Kinney says he's noticed that with the higher costs and current correction, there's a bit of fear in the air.

"People aren't able to flip something in 6 months anymore. They may want to, but they're not able to because things are staying on the market longer, especially in the million-dollar-plus area. So that's why you're seeing plateauing on the 1-year-to-2-years charts."

He says a businesslike attitude is essential.

"A business doesn't make a 25–30 per cent return on investment every year. You see a lot of flippers and even builders that are sitting on a lot of inventory, trying to keep the price up because they're worried that it'll lower their value of their sales in the future. But you can't think about that. You have to write it off on the books, or say maybe I'll take 5% instead of 15%, and when things get rosy again we'll be back up to our 20% again."

With lower margins and less opportunity to do a quick-and-dirty flip, the amateurs have mostly been shaken out, says Kenorah's Graham Collins."Flipping is being performed by companies by the book, according to code, therefore it's more costly.

"The winner in all of those things is the homeowner."

Landcor Data Corporation is an independent research firm with the largest, most comprehensive database on BC real estate, provided by the BC Government. Landcor draws on a wide range of other data, and on almost 25 years of deep analysis of the real estate market.

Housing market sees slight changes in October

Sat, 03 Nov 2012 18:03:00 GMT

The Greater Vancouver housing market saw a slight increase in the number of home sales, a slight reduction in the number of listings, and a slight decrease in home prices in October compared to the summer months. With those changes, the sales-to-active-listings ratio increased to 11 per cent in October from 8 per cent in September.

The Real Estate Board of Greater Vancouver (REBGV) reported 1,931 residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) in October, a 16.7 per cent decline compared to the 2,317 sales in October 2011 and a 27.4 per cent increase compared to the 1,516 home sales in September 2012.

October sales were 28.5 per cent below the 10-year October sales average of 2,700.

“Buyer demand increased slightly in October compared to the previous few months,” Sandra Wyant, REBGV president-elect said. “Overall conditions in today’s market remain in favour of buyers, with low interest rates, more choice, and less time pressure in terms of decision-making. This translates into a calmer atmosphere for those looking to buy a home and it places more onus on sellers to ensure their homes are priced to compete in today’s marketplace.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,323 in October. This represents a 1.2 per cent decline compared to October 2011 when 4,374 properties were listed for sale on the MLS® and an 18.8 per cent decline compared to the 5,321 new listings in September 2012.

At 17,370, the total number of residential property listings on the MLS® increased 12 per cent from this time last year and declined 5.3 per cent compared to September 2012.

Since reaching a peak of $625,100 in May, the MLS Home Price Index® (MLS HPI®) composite benchmark price for all residential properties in Greater Vancouver declined 3.4 per cent to $603,800 in October. This represents a 0.8 per cent decline compared to last year.

“There’ve been modest price changes since they peaked in the spring. The largest reductions have occurred in the areas and property types that experienced the biggest price increases over the last few years,” Wyant said.

Since hitting a record high in April, the benchmark price of a detached home on the Westside of Vancouver has declined 8.6 per cent while detached homes in Richmond and West Vancouver have seen declines of 6 per cent over the same time period.

Sales of detached properties in Greater Vancouver reached 790 in October, a decrease of 18.9 per cent from the 974 detached sales recorded in October 2011, and a 19.1 per cent decrease from the 976 units sold in October 2010. Since reaching a peak in May, the benchmark price for a detached property in Greater Vancouver has declined 4.1 per cent to $927,500.

Sales of apartment properties reached 803 in October 2012, a 16.2 per cent decrease compared to the 958 sales in October 2011, and a decrease of 18.4 per cent compared to the 984 sales in October 2010. Since reaching a peak in May, the benchmark price for an apartment property in Greater Vancouver has declined 2.9 per cent to $368,800.

Attached property sales in October 2012 totalled 338, an 11.5 per cent decrease compared to the 382 sales in October 2011, and a 10.3 per cent decrease from the 377 attached properties sold in October 2010. Since reaching a peak in April, the benchmark price for an attached property in Greater Vancouver has declined 2.9 per cent to $457,700.

Conditions continue to favour buyers in the Greater Vancouver housing market

Tue, 02 Oct 2012 21:56:00 GMT

The summer of 2012 drew to a close in September with home sale activity well below historical averages in the Greater Vancouver housing market.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 1,516 in September, a 32.5 per cent decline compared to the 2,246 sales in September 2011 and an 8.1 per cent decline compared to the 1,649 sales in August 2012.

September sales were 41.6 per cent below the 10-year September sales average of 2,597.

“There’s been a clear reduction in buyer demand in the three months since the federal government eliminated the availability of a 30-year amortization on government-insured mortgages,” Eugen Klein, REBGV president said. “This makes homes less affordable for the people of the region.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,321 in September. This represents a 6.3 per cent decline compared to September 2011 when 5,680 properties were listed for sale on the MLS® and a 31.6 per cent increase compared to the 4,044 new listings in August 2012.

At 18,350, the total number of residential property listings on the MLS® increased 14.1 per cent from this time last year and increased 4.5 per cent compared to August 2012.

“Today, our sales-to-active-listings ratio sits at 8 per cent, which puts us in a buyer’s market. This ratio has been declining in our market since March when it was 19 per cent,” Klein said.

The MLS HPI® composite benchmark price for all residential properties in Greater Vancouver is $606,100. This represents a decline of 0.8 per cent compared to this time last year and a decline of 2.3 per cent over last three months.

“Prices in the region remain relatively stable overall, although we do see some reductions in the areas that have had some of the largest price increases over the last year or two,” Klein said.

Sales of detached properties on the MLS® in September 2012 reached 594, a decrease of 37.9 per cent from the 957 detached sales recorded in September 2011, and a 31.4 per cent decrease from the 866 units sold in September 2010. The benchmark price for detached properties decreased 0.5 per cent from September 2011 to $935,600.

Sales of apartment properties reached 676 in September 2012, a 26.7 per cent decrease compared to the 922 sales in September 2011, and a decrease of 30.4 per cent compared to the 971 sales in September 2010. The benchmark price of an apartment property decreased 0.7 per cent from September 2011 to $368,600.

Attached property sales in September 2012 totalled 246, a 33 per cent decrease compared to the 367 sales in September 2011, and a 35.8 per cent decrease from the 383 attached properties sold in September 2010. The benchmark price of an attached unit decreased 2.7 per cent between September 2011 and 2012 to $458,600.

Real Estate Board of Greater Vancouver August Stats

Wed, 05 Sep 2012 18:19:00 GMT

Home sellers continue to outnumber buyers in Greater Vancouver’s summer housing market

Home sale activity remained below long-term averages in the Greater Vancouver housing market in August.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 1,649 in August, a 30.7 per cent decline compared to the 2,378 sales in August 2011 and a 21.4 per cent decline compared to the 2,098 sales in July 2012.

August sales were the second lowest total for the month in the region since 1998 and 39.2 per cent below the 10-year August sales average of 2,711.

“Home sales this summer have been lower than we’ve seen for most of the past ten years, yet we continue to see relative stability when it comes to prices,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,044 in August. This represents a 13.7 per cent decline compared to August 2011 when 4,685 properties were listed for sale on the MLS® and a 15.8 per cent decline compared to the 4,802 new listings in July 2012.

“For sellers it’s critical to work with your REALTOR® to understand today’s market and to develop the best strategy for selling your home,” Klein said. “On average it’s taking about two months for a home to sell on the MLS® in Greater Vancouver today.”

At 17,567, the total number of residential property listings on the MLS® increased 13.8 per cent from this time last year and declined 2.8 per cent compared to July 2012.

“Today, our sales-to-active-listings ratio sits at 9 per cent, which puts us in a buyer’s market. This ratio has been declining in our market since March when it was 19 per cent,” Klein said.

The MLSLink® Housing Price Index (HPI) composite benchmark price for all residential properties in Greater Vancouver is $609,500. This represents a decline of 0.5% compared to this time last year and a decline of 1.1% compared to last month.

Sales of detached properties on the MLS® in August 2012 reached 624, a decrease of 38.8 per cent from the 1,020 detached sales recorded in August 2011, and a 30.1 per cent decrease from the 893 units sold in August 2010. The benchmark price for detached properties increased 0.2 per cent from August 2011 to $942,100.

Sales of apartment properties reached 725 in August 2012, a 24.1 per cent decrease compared to the 955 sales in August 2011, and a decrease of 22.5 per cent compared to the 935 sales in August 2010. The benchmark price of an apartment property decreased 0.9 per cent from August 2011 to $370,100.

Attached property sales in August 2012 totalled 300, a 25.6 per cent decrease compared to the 403 sales in August 2011, and a 19.8 per cent decrease from the 374 attached properties sold in August 2010. The benchmark price of an attached unit decreased 1.9 per cent between August 2011 and 2012 to $462,300.

Checklist: Documents You Need when Applying for a Mortgage

Tue, 28 Aug 2012 00:21:00 GMT

August 27, 2012
Jason Neumann, Realtor

Whether you are considering buying a new home or refinancing your existing mortgage, important personal information and documents will be required by lenders. This checklist gives an overview of the necessary documentation that most Canadian lenders require prior to approving and funding a mortgage. By providing these documents in a timely fashion, you will help to ensure a speedy approval/renewal process.

Buying a Home?

Information that describes the property you are purchasing:

Contract of Purchase and Sale Agreement*
MLS Detail Feature Sheet*
Property Disclosure Statement (PDS)*
Title search*
Strata property information: Form B, Meeting Minutes, Strata Fees* **
Name, address, telephone number of your solicitor/notary
Confirmation of your down payment:
Savings or investment statement from the last 90 days
Sale of an existing property – a copy of the sale agreement
Gift letter if down payment funds are from family, friend etc.
Withdrawal from RRSP through the Home Buyer’s Plan

Employment verification:

Copy of latest pay slip
T4
Letter of employment
T1 General and Notice of Assessment (NOA) if self-employed

Refinancing Your Home?

Information that describes your existing property:

Recent mortgage statement
Current homeowner insurance policy
Recent property tax statement
Legal description of your property

Additional information that may be required…

As part of your application process, you may be asked questions relating to what you owe and own. Some projected expenses relating to your property such as taxes, heating costs and condo fees may be requested.

Once the Lender has Given Final Approval:

A void cheque for the account that the mortgage funds are to be debited from.

This checklist is by no means exhaustive, as each lender has criteria that are important to them. Should you have any questions about applying for a mortgage or refinancing an existing property, speak with a mortgage professional. Your Realtor will be able to refer someone in your area.

*Your real estate agent will be able to provide these documents to your bank or mortgage broker.

**Typically required if purchasing strata-titled property.

Jason Neumann is a Realtor with CENTURY 21 Assurance Realty in Kelowna, BC.

5 Steps to Refinance Your Mortgage

Thu, 23 Aug 2012 18:22:00 GMT

August 22, 2012
Matthew Chan, CA MBA AMP

If you're in a fixed-rate mortgage from last year or earlier, chances are you're at a fixed rate higher than the going rates today. We're still in the midst of all-time low interest rates. It's tempting to think you might be able to prune your expenses or cut the term of your mortgage by refinancing early.

But before you decide to refinance your mortgage, here are some tips on how to proceed so you won't be hit with any nasty surprises.

Step 1. Contact a mortgage professional

Choose your mortgage broker carefully. Here are some things to consider:

How long has this mortgage broker been in the business?
Does this mortgage broker specialize in refinancing?
Is this person a full-time (vs a part-time) mortgage broker?
Is this an independent mortgage broker or one employed by a lender?
What type of professional designations or educational background does this mortgage broker have?

Step 2. Determine why you would like to refinance

Besides getting a better rate, you should consider other reasons for refinancing your mortgage.

Do you have some unsecured debt that you would like to consolidate?
Would you like to take out some money for investment purposes?
Are you very unhappy with your current lender?

By determining your reasons for refinancing, you're in a better position to evaluate your options.

Step 3. Determine the short-term and long-term goals for your home

Before refinancing your mortgage, first evaluate what your goals are for your current home. If you're looking to sell and purchase a new home soon, consider holding off your refinance until you purchase your new home. You'd be saving yourself the time and trouble by applying for a new mortgage just once (when you buy your new home) instead of twice (the refinance and then buying your new home).

Step 4. Determine what the penalty is to refinance

This is usually the biggest obstacle. In a fixed-rate mortgage, you are contractually obliged to keep your mortgage until it's up for renewal. As a result, if you refinance it before maturity, the lender charges a penalty. A penalty might be reduced or even eliminated if the refinance is done with the same lender (some lenders have options for an early renewal).

The payout penalty is usually the greater of two numbers:1) 3 months' interest, or 2) Interest Rate Differential (IRD).

The IRD is probably one of the most misunderstood terms in the mortgage industry. It is explained by a major bank's website in this way:

The IRD amount is equivalent to the difference between your
annual interest rate and the posted interest rate on a mortgage
that is closest to the remainder of the term less any rate discount
you received, multiplied by the amount being prepaid, and
multiplied by the time that is remaining on the term.

Huh?

A full explanation of the IRD process is beyond the scope of this article. However, the tactics that banks use to inflate penalties are very real. Here's a great article on the subject.

Note: Some "no frill" mortgages simply don't allow refinancing. If you have such a mortgage, check the terms and conditions.

Step 5. Calculate the real cost of refinancing your mortgage

Once you know the penalty amount and the rate you are eligible to get in the market today, you should be able to evaluate if it's worthwhile to refinance. At this stage, you should lean on your mortgage broker to evaluate the figures and provide some suggestions.

Even if the penalty for refinancing your mortgage is higher than your savings with the lower rate, it could still be worthwhile to consider a refinance for the following reasons:

You are consolidating high-interest consumer debt (credit cards, personal loans, etc.) such that your overall cost of borrowing is lower after refinancing your mortgage.
You are concerned about interest rates moving up, so by refinancing to a longer-term mortgage you expect to save money over the long term if rates move up in the future.

In some cases, a mortgage refinance can save thousands of dollars. At the current low interest rates, it's definitely worth checking with an independent mortgage broker to see if refinancing makes sense for you.

Matthew Chan has been a licensed mortgage broker since 2004 and has served on the Board of Directors for MBABC. Before becoming a mortgage professional, Matt earned a Chartered Accountant designation with a Big Four accounting firm and an MBA from the Rotman School of Management at the U of T. Canadian Mortgage Professional (CMP) magazine has included him in its 2012 Top 75 Brokers list.

Greater Vancouver housing market hits summer lull

Thu, 02 Aug 2012 18:48:00 GMT

Residential property sales in Greater Vancouver remained at a 10-year low in July, while the number of properties being listed for sale continued to edge down and prices remained relatively stable.

The Real Estate Board of Greater Vancouver (REBGV) reports that there were 2,098 residential property sales of detached, attached and apartment properties in July. That’s an 18.4 per cent decline compared to the 2,571 sales in July 2011 and an 11.2 per cent decline compared to the previous month’s 2,362 sales.

July sales were the lowest total for that month in the region since 2000. They were 31.2 per cent below the 10-year July sales average of 3,051.

“People appear to be cautious about making significant financial decisions right now. While our local economy appears to be quite robust, there may be some concern about the impact of international markets and the federal government’s tightening of mortgage regulations,” says Eugen Klein, REBGV president.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,802 in July, the lowest number of new listings for any month this year. This represents a 5.8 per cent decline compared to July 2011 when 5,097 properties were newly listed for sale on the Multiple Listing Service® (MLS®) and a 14.5 per cent decline compared to the 5,617 new listings reported in June 2012.

At 18,081, the total number of active residential property listings on the MLS® increased 18.8 per cent from this time last year and decreased 2.2 per cent compared to the previous month.

“With a sales-to-actives-listing ratio of 11.6 per cent, conditions have favoured buyers in our marketplace in recent months,” Klein said. “That means buyers have more selection to choose from and more time to make a decision. For sellers, it’s important to price properties competitively. For information on local market prices, contact your REALTOR®.”

The MLS® Home Price Index (MLS® HPI) composite benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 0.6% to $616,000 and declined 0.7% compared to last month.

Sales of detached properties on the MLS® in July 2012 reached 787, a decrease of 28.4 per cent from the 1,099 detached sales recorded in July 2011, and a 13.3 per cent decrease from the 908 units sold in July 2010. The benchmark price for detached properties increased 1.4 per cent from July 2011 to $950,200 and declined 1.2 per cent compared to last month.

Sales of apartment properties reached 927 in July 2012, a 10.9 per cent decrease compared to the 1,040 sales in July 2011, and a decrease of 5.3 per cent compared to the 979 sales in July 2010. The benchmark price of an apartment property remains unchanged compared to July 2011 at $374,300 and declined 0.5 per cent compared to last month.

Attached property sales in July 2012 totalled 384, an 11.1 per cent decrease compared to the 432 sales in July 2011, and a 4.3 per cent increase from the 368 attached properties sold in July 2010. The benchmark price of an attached unit decreased 0.5 per cent between July 2011 and 2012 to $468,700 and is relatively unchanged compared to last month.

Slowing Chinese Growth Weighs On Vancouver’s Housing Market

Mon, 09 Jul 2012 22:49:00 GMT

Last year’s big house price increases in Vancouver was accompanied by discussion of the role Chinese purchasers were playing in the price run-up. Now, the pendulum has swung the other way and Vancouver’s housing market is slowing. This shift coincides with recent hints that China’s economy is cooling. In truth, the shadow from the east has long loomed over the Vancouver housing market and some believe that a slowing Chinese economy could signal a period of weakness ahead. But is that consistent with past trends?

As Canada’s “gateway to the Pacific”, Vancouver’s attraction to Chinese immigrants stretches back to the 19th century when the gold rush and railway construction brought thousands of Chinese residents to British Columbia. More recently, the Chinese takeover of Hong Kong in 1997 spurred many of that colony’s residents to seek Canadian citizenship and migrate to the province. Data from the British Columbia Bureau of Statistics show that immigration from mainland China to Vancouver averaged just over 9,600 persons per year in the decade to 2010, the most recent figures available, peaking at nearly 13,000 persons in 2005. China is typically the largest source of immigrants to Vancouver, accounting for nearly a quarter of all arrivals in 2010.

These immigrants need a home and have supported housing demand growth in British Columbia for several years. Some come to BC with a significant amount of wealth and, thus, a strong appetite to invest in the housing market. Catering to Chinese residential demand is big business out here; the Chinese Real Estate Professionals Association of BC lists over 200 members on its website.

There is a clear correlation between Chinese immigration and real estate activity in Vancouver. In fact, the Chinese immigration peak of 2005 was matched by a peak in existing home sales in that same year. The 42,000 resale transactions that year were nearly 50 per cent above the previous decade’s average and remain a record high for this market. By contrast, Vancouver existing home sales volume was fewer than 22,300 units in 1999 when less than 7,700 Chinese arrived.

But is there a similar correlation between economic growth in China and the Vancouver housing market? Offshore investors do not need to live in Canada to own a property in Vancouver and it is possible to arrange property management by a professional or a family member. This is in contrast with Australia, for instance, which requires temporary residents to sell their real estate before leaving the country.

Accordingly, Chinese wealth probably has a larger affect on the Vancouver housing market than immigration numbers alone suggest, since Chinese investors can buy homes here while remaining there. Faster Gross Domestic Product growth in China makes more of its citizens well-off and some of these are likely to invest money in Vancouver real estate.

Several measures of Vancouver housing market health have broadly followed the Chinese GDP performance. For instance, as shown in Chart 1, resale price advances hit double digits in 1992 and 1993, while China’s economy was hot, then subsided as Chinese output hikes eased. Accelerating Chinese growth during the past decade was accompanied by surging Vancouver MLS price increases. The financial crisis of 2008 was hard on both Chinese growth and Vancouver house prices, but by 2010 both were once again in double-digits.

The new construction market has reacted similarly to the Chinese economy. Chart 2 shows that total housing starts in Vancouver hit 21,300 units in 1992, but softened markedly thereafter. Slowing Chinese economic growth in 2008 preceded a big starts drop in 2009.

The bottom line is that expectations of slowing Chinese economic growth could be considered as big a drag on the Vancouver housing market going forward as anything else, including the city’s notoriously poor affordability.

Source: www.conferenceboard.ca

Author: Robin Wiebe

Ottawa Tightens CMHC-Insured Mortgage Rules

Mon, 25 Jun 2012 16:17:00 GMT

In a bid to save Canadians from themselves, Ottawa has tightened some lending rules for CMHC-insured mortgages.

Finance Minister Jim Flaherty has been expressing concern about Canadians' record household debt levels for about a year, especially in light of a persistent housing boom in most large cities.

One thing hasn't changed: it's still possible to buy a home with a small downpayment. If you have 5 to 20 per cent to put down, you need to qualify for mortgage insurance to get a prime mortgage, and that generally means CMHC (Canada Mortgage and Housing Corporation).

As of July 9, the following changes will affect you, but only if you need a CMHC-insured mortgage. They don't apply to conventional mortgages.

The maximum amortization period is 25 years, down from 30 years. (Note that current pre-approved mortgages with 30-year amortization are not grandfathered. Unless a purchase is made before July 9, the amortization on the pre-approved, CMHC-insured mortgage will be reduced to 25 years.)
Homes over $1 million are no longer eligible for CMHC-insured mortgages.
The maximum amount you can borrow to refinance your mortgage is 80 per cent of the value of your home, down from 85 per cent.
You can only qualify for CMHC insurance if your maximum gross debt service (GDS) is 39 per cent and your maximum total debt service (TDS) is 44 per cent (down from 45 per cent). These numbers refer to the percentage of your income needed for all housing costs (GDS) and the percentage required for GDS plus other debts (TDS). Some lenders may have lower guidelines.

The Finance Minister says these measures are aimed at slowing down a housing market that looks overexcited, and preventing Canadians from stretching themselves too far to buy a home in a hot market. "What we anticipate is less than five per cent of new home purchasers will be affected by these measures.... Some people will buy less into the market.... I consider that desirable."

Check with your Realtor or mortgage broker for more information. Meanwhile, here is an FAQ on the changes.

At the same time, new regulations aimed at conventional mortgages came down from OSFI, the federal organization that oversees the finance industry. These should have little effect on CMHC-backed mortgages. Mostly they direct financial institutions to check and verify borrowers' identity and ability to pay -- things we hope the lenders are already doing.

The biggest change affecting consumers is in home equity lines of credit (HELOCs). The maximum loan-to-value ratio for these will now be 65 per cent, down from 80 per cent.

This change addresses widespread concern that Canadians are borrowing too much against the equity in their homes. The government wants home ownership to be a vehicle for saving, not spending.

Source: REW.ca

What's the Real Value of Your Home?

Tue, 19 Jun 2012 22:05:00 GMT

How much is your home worth?

The only real value is what a buyer and a seller shake hands on. But if you're selling or buying a home -- or paying taxes on one -- you need a realistic dollar figure to work from.

And that is going to depend on whom you ask. Your home has different value to different people and institutions, and many percentage points can separate the assessed value from the price your home actually fetches on the market. (Isn't that why you immediately suspect something's very wrong with a house that's being offered at below assessed value?)

Here's a top-to-bottom look at who determines house prices and what they're thinking.

$$$$

Realtor: A Realtor's job is to get top dollar for a home, so you're likely to hear the highest valuation from this real estate professional. Realtors have access to MLS® statistics that aren't available to the public: they know how long homes are taking to sell in your neighbourhood and how sold prices compare to asking prices. They're also out there all the time, looking at properties, meeting the people at open houses and talking to other Realtors. With all that information, they'll arrive at the highest price they think they'll be able to get, considering comparable properties in your area and current market conditions.

$$$

You: You love this place. You've got it fixed up the way you like it, and every inch of it has a memory attached. You've been doing your homework, reading Real Estate Weekly and checking out the listings on REW.ca and you have a price in mind that reflects not only what you think you can get, but also what you want to get in order to move to your next home.

$$

The Bank: Lenders do not want an exaggerated value attached to a home because they might end up wearing it. They want a conservative valuation so if the people who buy your home fail to pay their mortgage, the lenders will be able to get their money back. When an offer is accepted, in most cases the lenders send out an appraiser to look at the home and determine if it's worth what the buyer and seller have agreed on. If the appraiser thinks it's worth considerably less, the buyer has to look for other supporting financing, or the financing can fall through altogether. It can be hugely inconvenient if you're the seller, and devastating if you're the buyer.

$

BC Assessment: Here's the starting point. The most conservative valuation of your home comes from this self-supporting Crown Corporation. BC Assessment is in charge of attaching a dollar value to all of the 2 million properties in private hands throughout BC. It does this so that each municipality and taxing authority can collect property taxes based on a provincewide assessment standard.

This doesn't mean that someone from BC Assessment will visit your home every year. While it has appraisers, it doesn't have nearly enough for that. BC Assessment has a vast data bank which includes information from municipalities, the provincial government, the real estate boards and others.

Your property assessment is set on July 1 of the previous year and based on dozens of factors including:

finished area
age
lot size
number of bedrooms and bathrooms
condition and quality
layout
sundecks and patios
outbuildings like sheds and garages
views
traffic and noise
schools
neighbourhood amenities

BC Assessment analyzes home sales in bulk to establish market value for properties with similar attributes in similar neighbourhoods. Basically, it looks at the same things you do when you're house hunting: "Well this one's nice inside but it's too close to all that traffic on Main Boulevard. The other one's a bit smaller, but it's on a quieter street and it's got a finished basement."

Most assessments go up because of changes in the overall real estate market. If your neighbourhood suddenly became hot last year and homes were selling for far more than they did the year before, you'll see it in your assessment this year.

When there are extreme market changes, the government has even stepped in to cap the assessment. It did so in 2009 when prices in some places fell by over $100,000 from 2008 highs.

Your assessment could also go up because of something you did, e.g., took out a building permit for an addition or substantial updating. By changing the size or the effective age of your house, you've made it more valuable.

So What Is My Home Worth?

You can see how your assessment compares to that of other similar homes using BC Assessment's e-valueBC tool. Keep in mind, though that the values shown are for July of last year.

You can talk to a Realtor, or several. They know the local market inside out. Realtors often have their own methods for determining the market value of a home, and you could get several answers, all within the same ballpark. What the home actually lists for could be different again, depending on the Realtor's selling strategy. For instance, in a seller's market the list price could be lower than those of comparable homes, in hopes of inciting a bidding war.

If you want a detailed, current valuation, you can access the same data that lenders and real estate professionals use. Landcor Data Corporation's Property Valuator report costs $29.95, and along with a current market value, you get a history of the property, assessment data, neighbourhood market trends and much more. Landcor uses the BC Assessment database and other sources and analyzes the mountain of data using its own proprietary methods.

Ask your neighbours, friends and relatives. What the heck? This is the Lower Mainland real estate market. Apart from the weather, house prices are practically all we talk about, right? Can't hurt to see which way the wind is blowing.

Source: Rew.ca

The Best Thing You Can Do To Sell Your Home

Tue, 12 Jun 2012 22:45:00 GMT

REW.ca

The simple act of cleaning and decluttering before putting your home on the market can add thousands to your selling price, according to the HomeGain 2012 National Home Improvement Survey. Besides showing your home as a more spacious, blank canvas for the next homeowners, a big purge means that when it's time to move, it'll be easier and cost you less.

When faced with rooms full of amassed bric-a-brac and basements and storage lockers bulging at the seams, it's easy to feel overwhelmed. Where do you start? And how will you get rid of it all? We turned to two local professional organizers for advice.

Start the decluttering process at least a month in advance — longer if you have a large home or have been living there for a long time, recommends professional organizer and image consultant Rowena List, owner of Getting It Together. "Give yourself enough time. Most people underestimate how long it will take to declutter a home."

Limor Friedman, professional organizer and owner of Vancouver In The Box, advises spending at least a couple of hours per day in the month leading up to the open house sorting and getting rid of stuff — starting with the easiest jobs first.

"Before digging into the crawl space where you store old memories and photos, start with the present — with the stuff that you see every day and are less attached to," says Friedman, pointing to items like chipped dish sets, old clothing, and children's toys. "After the first 'sort and purge,' you will feel so much better. Then you will be ready to tackle the past — the old items you have left in the basement or the attic."

Once you've decided where you'll start, it's time to get ruthless. List suggests that you arm yourself with plenty of heavy-duty black garbage bags, then designate sorting areas: donate, sell or consignment, and toss.

Things like broken and rusty appliances or torn or stained clothing headed for the trash pile are the easiest to determine. Deciding what to keep versus what to donate, sell, or even recycle can be tougher.

Evaluate each item and ask yourself what purpose it serves. Is it irreplaceable? When was the last time you used it?

"What are the chances that your next new printer will come without a cable?" says Friedman. "Recycle the old cables you held on to for years."

Remember the end goal.

"Only keep what you need, use, and love," says List, noting that people tend to use only 20% of their things 80% of the time. "Most people live in fear of 'what if I need it?'" I support my clients in living with a faith-based mentality: believing that what they have is what they need... once we do the sorting."

Once you’ve determined what to lose, start offloading your cast-offs before you lose momentum. Here are some resources to help you along your clutter-busting journey:

Toss/Recycle/Donate It

Things like expired medication, batteries, antifreeze, or broken appliances have to be disposed at the appropriate depots. Find out what goes where here:

Metro Vancouver Recycles: Select a material type and enter your postal code for a list of depots, charitable locations, and consignment stores near you. Or download their free mobile app.

GVRD’s “101 Things to Do With All Your Old Stuff” : Read this PDF for tips on selling, recycling, and donating.

Freecycle.org: Join people around the world getting rid of stuff on this grassroots community page.

There's no shortage of charities to which you can donate clothing, household goods, and small appliances. Some of them, such as Big Brothers and the Canadian Diabetes Association offer free home pickup.

Here are some local links too:

Fraser Valley

FVRD Garbage and Recycling Facilities and Services
Fraser Valley Metal Exchange: Recycle various metal materials — and get paid for them — here.
Encorp Return-It: Recycle electronics, beverage containers, and milk cartons at these Fraser Valley depots.
ShredMasters ValleyRecycling
Big Brothers/Big Sisters of the Fraser Valley

Abbotsford

Abbotsford/Mission Recycling Depot
Abbotsford Community Services Recycling Program
City of Chilliwack: Find out about everything from curbside collection schedules to where to dispose of hazardous waste. Also see where to recycle tricky items such as x-rays and fluorescent light bulbs here.
Village of Harrison Hot Springs: Download waste removal info sheets and recycling guidelines here.
District of Hope Garbage and Recycling Information

Langley

Township of Langley: Learn all about garbage, green can, and recycling in Langley here.

North Shore

North Shore Recycling Program: North Shore recycling and composting programs plus a North Shore-specific recycling directory

Sea-to-Sky

Whistler Recycling: Find recycling depots in Whistler, including hazardous materials disposal, here.
Encorp Whistler Re-Use It Centre
Squamish Climate Action Network
Squamish Garbage and Recyling

Surrey

Surrey Reuses Recyclopedia: Find out where to recycle everything from asphalt to yard trimmings.
City of Surrey recycling guidelines
Product Care: Search for a depot near you that recycles hazardous materials.

Vancouver

Vancouver Reuses Recyclopedia: Find out where to recycle everything from art supplies to yard trimmings.

Sell or Swap It

It doesn’t cost anything to create listings on classified sites like Craigslist and Kijiji. And as long as you take a good photo and price your item in line with similar items, you can offload large pieces of furniture in less than a week. Free items can go really fast. Bonus: you won't have to haul it away. Also check out:

Secondhand Savvy: Search freelance writer and mindful-consumption advocate Jo-Anne Lauzer's blog for local rummage/thrift sales, auctions, flea markets and antique shows.

Outsource It

Fed up with pre-sale decluttering and junk removal? Enlist the help of a pro here:

Resist the temptation to do your sorting and purging on the other end. “Do it all before you move,” says List. “You will feel less stress and have more energy, time, and money.”

US property prices expected to rise by over 1% during the rest of 2012

Thu, 07 Jun 2012 21:48:00 GMT

National residential property prices in the United States increased slightly in the three months to the end of April but analysts expect them to increase further by 1.2% over the rest of 2012.

The latest figures from Clear Capital shows that all regions except the Midwest saw mild quarterly price gains. The West, South and Northeast saw both quarterly and yearly price gains and the only area with price declines was the Midwest, but that area's declines were less severe when compared to April's report.

‘Markets have continued to show signs of bottoming out. The projections we made at the beginning of the year are playing out and we expect to see the nation gain just over 1% through the year's end,’ said Alex Villacorta, director of research and analytics at Clear Capital.

‘Home prices continue to show relative strength in April with virtually no change over the short term and tapering losses over the longer term. There has been quite a bit of buzz in the housing industry surrounding turning REOs into rentals. Our data suggests early activity from these programmes could be starting to take effect, with national REO only home price gains on a price per square foot basis vastly outpacing fair market prices on a national level,’ he explained.

‘Should investor interest continue to drive the expansion of REO to rental programmes over the next several months, there could be a significant impact on the market overall in terms of providing a rising floor to home values,’ he added.

Quarter on quarter results were notable only in how little change was seen this month, with numbers very similar with the price changes reported last month.

The nation lost a little ground with quarterly losses of 0.2%, showing continuing price stability over previous months' reports.

For the past five months, price movement at the regional level has settled in under 1% on a quarterly basis except in the Midwest, which the firm said is a level of stability not seen for a decade.

As the West, Northeast, and South are all in positive territory, significant losses in the Midwest are pulling down national numbers. The Midwest lost 2.7% of its value over the quarter, which is the fifth month of declines for this beleaguered region. Despite mild winter weather and an early spring, it wasn’t enough to kick off a home buying season in this region.

Looking at yearly results, prices are down 1% compared to last year, which is an improvement over the -1.4% loss posted in April’s Market Report.

The Northeast, a market that has held up well throughout the housing crisis, posted a light 0.7% increase in prices year on year, while the rest of the regions are still trying to climb back into positive territory.

The West and South, while still negative for the year, also saw improvements over last month’s report, shrinking their annual losses by 1.4% and 0.3% respectively.

Midwest year on year performance paints a very different picture, a loss of 4%, which is deeper than last month’s yearly loss of 3.8%.

The Phoenix market, hard hit in the housing meltdown, is starting to sizzle with quarterly values increasing 3.8% more than the next highest MSA. Phoenix also tops the Highest Performing 15 list for the second month and has been either leading or in second spot on this list since February. However, with peak to current values at -58.2%, there is still a long way to go for Phoenix to see the values it once had.

The Milwaukee MSA is the hardest hit market in April with a dramatic quarterly loss of 12.5%. This loss is 5% more than the second hardest hit MSA, Columbus, Ohio, which posted a loss of 7.5%.

Spring activity remains balanced in the Greater Vancouver housing market

Mon, 04 Jun 2012 19:09:00 GMT

The number of properties listed for sale continued to increase in the Greater Vancouver housing market in May. The number of sales decreased year over year, but remained relatively constant compared to recent months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,853 on the Multiple Listing Service® (MLS®) in May 2012. This represents a 15.5 per cent decline compared to the 3,377 sales recorded in May 2011.

May sales were the lowest total for the month in the region since 2001 and 21.1 per cent below the 10-year May sales average of 3,617. However, sales have been constant throughout the spring months, with 2,874 sales in March and 2,799 sales in April.

“Home sellers have outpaced buyers in recent months, however, there continues to be an overall balance between supply and demand in our marketplace,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,927 in May 2012. This represents a 16.8 per cent increase compared to May 2011 when 5,931 homes were listed for sale and a 14.4 per cent increase compared to April 2012 when 6,056 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 15.3 per cent above the 10-year average for listings in Greater Vancouver for May.

At 17,835, the total number of homes listed for sale on the region’s MLS® increased 7.9 per cent in May compared to last month and increased 21 per cent from this time last year.

“Our sales-to-active-listing ratio sits at 16 per cent, which is indicative of balanced market conditions,” Klein said. “As a result of this stability, home prices at the regional level have seen little fluctuation over the last six month.”

The MLS® HPI benchmark price* for all residential properties in Greater Vancouver currently sits at $625,100, up 3.3 per cent compared to May 2011 and up 2.4 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland** is $558,300, which is a 3 per cent increase compared to May 2011 and a 2.3 per cent increase compared to three months ago.

Sales of detached properties on the MLS® in May 2012 reached 1,180, a decline of 24.8 per cent from the 1,570 detached sales recorded in May 2011, and a 6.1 per cent decrease from the 1,256 units sold in May 2010. The benchmark price for detached properties increased 5.1 per cent from May 2011 to $967,500.

Sales of apartment properties reached 1,156 in May 2012, a decline of 5.9 per cent compared to the 1,228 sales in May 2011, and a decrease of 14.6 per cent compared to the 1,354 sales in May 2010.The benchmark price of an apartment property increased 1.7 per cent from May 2011 to $379,700.

Townhome property sales in May 2012 totalled 517, a decline of 10.7 per cent compared to the 579 sales in May 2011, and a 5.3 per cent decrease from the 546 townhome properties sold in May 2010. The benchmark price of a townhome unit increased 0.9 per cent between May 2011 and 2012 to $470,000.

*Editor’s Note: Benchmark prices underwent a re-calculation this month in order to more accurately reflect trends measured by the MLS® Home Price Index. There were no changes to the calculation of index values.

This re-calculation involved aggregating benchmark prices using the sales weighted approach for the reference period (i.e. January 2005) and thereafter linking movements in aggregate benchmark prices to their corresponding MLS® HPI.

The methodology, available at www.homepriceindex.ca, will be updated later this week.

**Lower Mainland: Includes areas covered by the Real Estate Board of Greater Vancouver and the Fraser Valley Real Estate Board.

Spotlight on Greater Vancouver home prices:

Detached

Home price measure	May 2012	1 month change %	6 month change %	1 year change %
MLS® HPI benchmark price	$967,500	+0.4%	+3.4%	+5.1%
Average price	$1,073,018	-4%	-5.4%	-12.2%
Median price	$847,750	-3.7%	-0.03%	-5.4%

Townhome

Home price measure	May 2012	1 month change %	6 month change %	1 year change %
MLS® HPI benchmark price	$470,000	-0.3%	+1.3%	+0.9%
Average price	$551,445	-4.9%	-2.1%	-0.2%
Median price	$505,000	-0.8%	-0.6%	+2.5%

Condominium

Home price measure	May 2012	1 month change %	6 month change %	1 year change %
MLS® HPI benchmark price	$379,700	+1.1%	+3%	+1.7%
Average price	$460,761	+3.4%	+6.7%	-1.1%
Median price	$379,950	+1.3%	+4.1%	-1.3%

Download the complete stats package by clicking here.

Parade of Renovated Homes 2012 Sunday, June 10

Thu, 31 May 2012 19:49:00 GMT

Professionally renovated homes open to public

The Greater Vancouver Home Builders’ Association (GVHBA) invites the public to tour eight professionally renovated homes in Burnaby, North Vancouver, Surrey and Vancouver on Sunday, June 10 from 10 a.m. to 4 p.m.

The 19th annual Parade of Renovated Homes, produced by the GVHBA Renovation Council and sponsored by FortisBC, showcases leading-edge design, advanced construction techniques and products, and energy-saving features.

"FortisBC is extremely excited to again be the presenting sponsor of this popular consumer event. We look forward to combining the strengths of GVHBA and FortisBC to help the renovation industry in Metro Vancouver achieve innovative and successful results when it comes to their projects and energy requirements," said Dan Noel, FortisBC regional energy solutions manager.

Renovations on display include the revitalization of a 1950s bungalow, restoration of a 1920s Vancouver heritage home, eco-chic kitchen, bathroom makeover, conversion of a Westside basement suite, an extensive interior and exterior renovation, and a contemporary whole-house transformation.

GVHBA President and CEO Peter Simpson said Metro Vancouver homeowners will spend $3.8 billion sprucing up their homes this year, and this popular one-day event offers exceptional sample renovations.

“Professional RenoMark renovators, many of them award winners, will be on site to offer expert advice and discuss their craftsmanship. Project values range from $135,000 to more than $800,000, offering homeowners an abundance of ideas they can incorporate into their own renovations,” said Simpson.

Admission is by passport, available at each home for $10 per person. Children 17 and under are free. Passports can be purchased at any home, and then used for entry to the remaining homes. Part proceeds from passport sales will help fund the purchase of tools, building materials and safety gear for a carpentry training program offered by Guildford Park and Frank Hurt secondary schools in Surrey.

The event is limited to six hours, so visit www.gvhba.org to review the full list of participating homes, including project descriptions and before-and-after photos, then plan your route to ensure you have sufficient time to visit specific homes that capture your interest.

Home locations and renovator contact, listed by municipality (Note: as these are private residences, please respect their privacy. Homes are only open on Sunday, June 10) :

BURNABY

4778 HARKEN DRIVE
The original poorly laid out kitchen had the sink window staring at the neighbour's roof, and a sunken TV room was under-utilized. The RJR design team creatively reconfigured the entire area so it is now both well designed and functional. The sunken floor was raised and the kitchen was relocated to capture the private backyard view. Walls enclosing a formal dining room were removed, opening up the space. Beautiful shaker-style cabinetry and spectacular granite incorporate two extremely different types and styles, yet complement each other in a unique way. New skylights bring in warm natural light.
RJR Construction Management Ltd., (604) 254-1760, www.rjrrenovator.com

4382 SOUTHWOOD STREET
This kitchen-dining room renovation is the second phase of a three-phase renovation plan of the contractor’s own home. Contemporary styling elevates this typical 1959 bungalow, while the period’s design characteristics were retained and restored. Floor-to-ceiling windows, large doors and a spacious open plan capture the spectacular south-slope view. This phased renovation also features a huge deck, tasteful landscaping and a grade-level patio with a serene water feature, perfect for outdoor entertaining. Visual preview of the third phase of the renovation will be on display.
TQ Construction Ltd., (604) 430-9900, www.tqconstruction.ca

NORTH VANCOUVER

4366 CANTERBURY CRESCENT
This 1954 rancher needed to be modernized to accommodate the client’s lifestyle and design sensibilities. The homeowners’ love of mid-century modern architecture and style was the compass. The interior was opened up to create contemporary social spaces for family and friends. Initially, the plan was to only renovate the interior, but the homeowners decided to landscape the property as well, including an outdoor living room with gas firepit. Front retaining walls replaced aging stone walls. A kidney-shaped pool was filled in to create three separate outdoor living spaces. The kitchen/BBQ area is sheltered by a cedar pergola with a smoked glass roof.
CCI Renovations, (604) 980-8384, www.ccirenos.com

SURREY

12166 - 57 AVENUE
This stately home has been restored to its former grandeur with an extensive interior and exterior renovation. At the heart of this home is a kitchen that would delight any gourmet chef with professional appliances and wine buffet. The dining room opens onto an enclosed lanai which, in turn, opens onto an expansive outdoor area for informal entertaining. The home features a luxuriously appointed master suite with marble steam shower, free-standing tub and crystal chandeliers. Exquisite detailing abounds in the coffered ceilings and four uniquely finished fireplaces.
My House Design / Build Team Ltd., (604) 694-6873, www.myhousedesignbuild.com

VANCOUVER

2148 GRAVELY STREET
This 1908 family home makes a stunning entrance into the 21st century with an eco-chic dream kitchen and bathroom renovation. Naturally crafted white-shaker custom kitchen cabinets, pantry and island are framed with complementary mouldings. Corner-drawer cabinets and recycling centre complete the details. Bath cabinets extend the length of the room providing ample storage space. Cabinetry is made from eco-friendly maple plywood and solid alder with low-VOC paint and durable lacquer finish for easy cleaning. There are also Douglas fir floors and a Tuscan dining table built from wood reclaimed from a Penticton high school.
Eco Country Tables Inc., (604) 809-4125, www.ecocountrytables.com

4785 WEST 2 AVENUE
Designed by a prestigious Vancouver-based architectural firm, the house was originally built in 1932. Having never undergone any upgrades, the home’s plumbing, electrical and mechanical systems had to be upgraded, the roof replaced and the extensive water damage fixed. The owners’ vision and appreciation of the home’s heritage was incorporated into this whole-home renovation, as much of the original house as possible was rescued. As a result, the renovation created an updated open living space for a modern family, while respecting this beautiful home’s heritage.
G. Wilson Construction Co. Ltd., (604) 873-8013, www.gwilsonconstruction.com

2982 WEST 27 AVENUE
These clients wanted to convert their typical Westside basement (damp with a low ceiling) into a well-appointed rental suite for investment purposes. The foundation was lowered by two feet then the space was completely modernized with up-to-date engineering and insulation. The totally transformed suite is now beautifully appointed with granite countertops, hardwood floors, stainless-steel appliances and tile finishes. To add extra comfort to the basement suite, in-floor and ceiling radiant heating were added. Nearing completion is a backyard laneway home that is open for viewing.
Kemp Construction Management Ltd., (604) 948-1124, www.kempconstruction.ca

4930 WALDEN STREET
This home was completely transformed to allow for an open-concept main floor. The home was updated in a funky contemporary style, including a larger kitchen that offers seating for six at the island. The dining room and living room were opened up to the kitchen, which provides a great ambiance for entertaining. A floating glass partition offers privacy to the powder room. The upper floor consists of a reconfigured master ensuite complete with a large walk-in shower, floating vanity with an eight-inch-deep countertop and a makeup counter. The kids’ bathroom was redone with vivid accents to create a more playful feel. My House Design / Build Team Ltd., (604) 694-6873, www.myhousedesignbuild.com

CLICK here to see the photo gallery index

The do’s and don’ts of a home renovation

Tue, 22 May 2012 18:06:00 GMT

In an inflated property market, many homeowners may choose to undertake renovations rather than move in order to get more out of their home and limit any potential fall in value in the event the market turns around.

But some improvements may cost more than the value they add to a property, experts say, so it’s important to consider what kind of work to have done. Here are five points to consider when contemplating a home reno:

Be objective

This might sound obvious, but you will only be able to convert your investment into a return if you are able to sell your home at a good price. This means ensuring the improvements you make have a broad appeal. Designer features, such as standalone baths in the middle of a bedroom, will only ever appeal to a small section of the market, especially if they come at the expense of valuable living space.

Extend/Convert

The two main factors that determine a property’s price are size and location. The latter isn’t something you can change but adding space can be an effective way to add value. However, spending $100,000 rearranging the layout of your property doesn’t mean you will add $100,000 in value. Why? Because you haven’t added a single extra square foot of floor space. Attic conversions or basement finishing are two of the most cost effective ways to add value to your property, with a rear extension adding slightly less.

Local research

It is vital to research your local area and market, because there will be a maximum price that a house in a certain neighbourhood can be valued at, regardless of the improvements you make. Consider the value of the work you are doing in relation to the maximum sale value of similar properties in your area, and keep in mind that going over this figure is risky.

Improve energy efficiency

With fuel costs expected to have nowhere to go but up, having an energy-efficient home is a big selling point for many prospective buyers who are becoming increasingly conscious of a home’s running costs and environmental issues. Getting a professional energy audit and addressing problems, some of which can be very simple to rectify, can boost a home’s energy-efficiency considerably.

Layout

It is important when considering the layout of your property to try and avoid losing rooms. If you expand a room’s size at the expense of another’s and in the process go from a three- to a two-bedroom property, it is extremely likely you will be reducing the value of your home. Also, try to keep layouts flexible – if you go to an open-concept ground floor, consider installing dividing doors or make it easy to reinstate stud walls so potential purchasers understand they can change the layout to meet their needs.

Source: Globe and Mail

Don't count on your home to fund your retirement

Fri, 18 May 2012 21:38:00 GMT

Source: Globe and Mail

One thing I often say to clients and readers of my website is that the next decade for real estate prices in Canada will look nothing like the past. There are three main reasons for this:

1) The capacity for house prices to outpace income growth by two to three times in most Canadian cities, as they have over the past decade, simply will not be possible as interest rates will eventually begin to rise.

2) The past decade saw a loosening in credit requirements, but in 2009 things began to change. The availability and cost of mortgage credit has been a fundamental driver of the current housing boom, and recent trends toward stricter mortgage underwriting strongly suggest that credit conditions will tighten in the coming years.

3) Demographics. This one’s potentially a big one, and is what I want to discuss today.

In August, 2010, The Bank for International Settlements (BIS) wrote a great report on the impact of an aging population on asset prices. It noted the following:

The paper identifies the impact of aging through the analysis of house prices. It finds that demographic factors contributed positively to real house prices in many countries in recent decades. For instance, the United States is estimated to have enjoyed around 80 basis points per annum demographic tailwinds in the past forty years compared to neutral demographics.

The author calculated that demographic factors have led to a real house price increase of roughly 20 per cent over the past 40 years in Canada. That is, there has been a 0.5 per cent per annum tailwind driving real (inflation-adjusted) house prices. This paper notes the following:

Looking ahead, forecasts … uniformly point towards substantial demographic headwinds.

…The young save for old age by buying assets, while the old sell assets to finance retirement. This asset transfer can happen directly or through institutions such as pension funds. In this setting, the change in the relative size of asset buyers (the young) and sellers (the old), have consequences for asset prices. In particular, the asset purchases of a large working age generation, such as the baby boomers...drives asset prices up. Conversely, if the economy is aging, i.e. the subsequent younger generation is relatively smaller, then asset prices decline.

Now for the bad news: The author calculates that demographics alone will have a 1 per cent annual drag on house prices in Canada into the foreseeable future.

To understand this imbalance, it’s important to understand when age groups become net buyers and net sellers of real estate. This topic was explored in an interesting paper in the Journal of the American Planning Association. It concluded that groups of people become net sellers of real estate after the age of 65, while net buying of real estate is most pronounced between the ages of 25 and 35. If those findings apply to Canadians, we can easily see the problem by simply looking at the age distribution of the Canadian population:

Granted this does not consider the offsetting influence of net immigration, but it’s easy to see how that paper came to the following conclusion:

What have not been recognized to date are the grave impacts of the growing age imbalance in the housing market. If the elderly are more often home sellers, and are more numerous than the young who are buyers, a market shift could come on quickly after 2010, causing housing prices to fall. Even if prices remain flat, without the investment incentive young households will likely slow their entry into homeownership, worsening the imbalance between sellers and buyers.

This poses a particular problem for the Canadian housing market when we consider how many near-retirees are planning on using home equity to at least partially fund their retirement. A 2011 RBC survey estimated that number at 56 per cent. What this does not tell us is what percentage plan on accessing that equity through a reverse mortgage or HELOC and how many plan on accessing it by selling and downsizing or possibly renting. That remains up for speculation. Nevertheless, we can certainly assume that downsizing is in the plans of a significant portion of these households.

This leads me to a few conclusions:

1) It certainly seems reasonable to assume that downsizing will put pressure on the higher end of the market as empty nesters sell their larger homes to downsize into smaller, more age-friendly homes. Current demographic trends suggest that the demand for these large homes is unlikely to persist at current levels. In 1975, the average single family home in Canada was 1050 square feet. In 2010, the average new home being built was nearly 2000 square feet. Yet over that same time, the average household size has fallen by a third. This is a trend that simply will not persist indefinitely and I suspect these larger homes will fall out of favour over the coming years, unfortunately just as many try to capture their equity gains and downsize.

2) The flip side of the first conclusion is that smaller, age-friendly homes (including condos in areas where new construction is not rampant) will see a relative floor put under them. The end result is price compression in the market whereby the larger, more expensive homes fall in price to a greater degree (or as a best case scenario, appreciate more slowly) than smaller, age friendly homes .

The implications are clear: If you are counting on current home equity to at least partially fund your retirement and are hanging on for that last bit of capital gain before selling, you are playing a dangerous game.

Analyst and strategist Mr. Rabidoux covers Canadian macro economic trends with a focus on housing and consumer credit. He also has a website, TheEconomicAnalyst.com.

Source: Globe and Mail

Vancouver Real Estate Market - 2 Different Pictures

Thu, 17 May 2012 21:01:00 GMT

REW.ca, May 16, 2012

Okay, it looks like the big crazy boom in Vancouver house prices is over for now. A flat market or a drop in prices could well be on the way, to the relief of everyone except west siders who haven't cashed out yet.

So what happens now? It's funny how different stats can tell different stories.

A May 15 article in the Globe and Mail is a good snapshot of the Vancouver real estate market as it teeters on the brink of... something. Great headline too: "Vancouver's Real Estate Swoon Deepens."

But the graph accompanying the Globe and Mail article totally loses us when it compares the percentage change in average Toronto and Vancouver home prices over the last year.

Greater Vancouver includes several of the most desired and expensive neighbourhoods in Canada. The sheer volume of luxury home sales skews the average price unrealistically.

RE/MAX just released its report on luxury home sales across Canada. After 2011's unprecedented luxury-home feeding frenzy in Greater Vancouver, first-quarter sales this year dropped by 31 per cent (but they're still twice as high as they were in 2010).

Knock out 180 sales ranging from $2 million to $20 million and you're going to see the effect in the average price. That's why this Globe and Mail graph takes such a dive.

First reaction: Yikes. Run for your lives!

Compare that to the graph below that shows the percentage change in MLS® benchmark prices. These are changes in sold price for homes that are typical of their type for the area.

Benchmark prices don't reflect sales of ultra-expensive homes -- except in neighbourhoods where those are the norm -- so they give a better idea of the trajectory of house prices throughout a region.

Like the Globe and Mail graph, this one shows the change over the last year in Vancouver, Toronto and all of Canada.

That much calmer look at the real estate market still illustrates the huge gap between stratospheric Vancouver house prices and those of the runner- up for the title of Most Expensive City in Canada. Nobody's denying that our prices are ridiculous. But comparing the two charts also shows how the same facts can send confusing messages.

If you're buying or selling, talk to a Realtor who knows your area well. Someone with experience in your neighbourhood will be watching the changing situation daily, and will know mood of your particular market. What's selling and what's not? How long are properties staying on the market? What are potential buyers after? How close are sales prices to asking?

Those hyperlocal stats are more important to your goals than general averages and benchmarks.

Source: REW.ca

Landlords face pitfalls when they go the DIY route

Thu, 10 May 2012 18:32:00 GMT

The following article is from Canadian Real Estate Wealth Magazine.

Ask any landlord, contractor, builder or small real estate investor the one tool they have in their DIY renovation arsenal, and the answer is invariably the spreadsheet. Most property owners with some years of experience behind them have crafted a list of must-do projects as they inspect their latest investments. The spreadsheet, making up years of gained knowledge on a variety of projects, is the key to that successful renovation.

Peel back the spreadsheet onion and investors reveal the projects that are essential in making the most amount of profit for, what they hope is, the least amount of cost. Especially in a volatile economic climate with the fear of a double-dip recession, property investors and landlords are taking it upon themselves and "DIYing" their projects to ensure they are attracting the best tenants and/or buyers for their properties.

DIYing and the economy
Owners and landlords are enhancing the value of their properties on their own more than ever before. Cost is always the number one factor and certainly the economy has heightened the need to cut expenses as much as possible.

Even though uncertainty in the economy can create buying opportunities for investors, would-be investors need to be aware of the pitfalls those investments might bring. “Economic times have increased the availability of some projects,” says Andrew Brennan, a professional real estate investor with Brennan Property Investments. “A lot of people who are behind on mortgage payments may not have the money to maintain their more distressed issues,” he adds.

There is a flipside to the economic story other than the availability of potential projects. Landlords, because of uncertainty, are looking to save money.

Stuart Henderson is a property owner and a senior member of the Ontario Landlords Association. The association has more than 3,000 members, most of whom own properties of 10 units or less. He says members are looking for assistance on DIY renovations more than they have in the recent past.

“The economy has not been strong since 2008, so more and more landlords who would have normally paid a contractor are now forced to do their own repairs and renovations,” he says. “Doing your own repairs and renovations is really a key point of landlords these days; the days of slumlords are over if you want to get good, qualified tenants.”

Plan and budget
Getting the appropriate high-quality tenants is really what is behind the renovations in the first place. Essentially, it should be the first part of any DIY renovation plan. “The first thing you need to do is know the expectations of the tenants you are marketing to. You can’t go into a low-income area in parts of Toronto and renovate that to the same standards that would be required for a $1,500 one-bedroom apartment downtown. You need to know what your tenants want,” says Andrew Gulaty, a full-time firefighter and owner of properties in Toronto and Mississauga. He notes that new landlords must realize the goal of a renovation on a rental is not the same goal one might have on their personal residence.

“When you are renovating a rental, your goal is to maximize return on investment and to attract quality tenants. Your personal tastes are not as important; the goals are different,” he stresses. He adds that most new landlords’ biggest mistake is overrenovating. “Granite and stainless steel in a poor-quality neighbourhood is not going to attract top-quality tenants.”

Most investors agree that fixing problem areas first and then getting into the cosmetics is the way to go on DIY projects and makes good planning sense. Scott McGillivray, a property investor and the host of Income Property on HGTV Canada, prepares a relatively systematic way of looking at projects.

“When I see a property that has opportunity, the checklist would be to fix everything that’s a deficiency on the home, i.e. roof, wiring, plumbing,” Mr. McGillivray says.

And with most renovations, either for personal or income purposes, the kitchens and bathrooms appear to be first on everyone’s list.

“The kitchen is of No. 1 importance,” adds Mr. McGillivray. “I have a sublist of how much work needs to be done in the kitchen.

The bathrooms are the next on the list and, again, a checklist is created. Then I look at all the hardware in the house, which I know is really easy. And then I look at how significant the flooring is in terms of needed work.”

Seasoned pros like Mr. McGillivray and Mr. Gulaty often determine their budgets before they even buy a property. Says Mr. Gulaty, “I already have a rough idea as to how much it will cost me to upgrade the unit and how much extra rent I can get through the upgrade.”

Mr. Brennan says his renovations move much more efficiently with a master list of potential items. “I’ve created a master list of 95 per cent of the things you may need as far as supplies for a renovation, from screws to flooring to faucets. It’s much easier if I have a process, if I already have a very good indication of all the items I may need and

I have a good understanding of what the prices are.”

And for the more junior or novice investors, Mr. Brennan says it’s easy enough to walk into any hardware store and familiarize oneself with costs.

Similarly, there is an abundance of resources online by searching "contractors’ costs," which will garner a wealth of information on costs per square footage or per item on a variety of home renovation projects.

Where to start?
Whether you are a landlord who rents or are looking to flip a house, you will likely start your renovations in the kitchens and bathrooms. However, the methodology behind the renovations may be as varied as the projects themselves.

For example, Mr. Henderson has a philosophy by which properties should be renovated to attract the best tenants. He suggests three things to enhance the property, in whatever part of the house/unit it may be. His philosophy looks at the ideas of "space,:" "personalizing the property" and "cleanliness."

Space, he says, can come in the form of an open kitchen and living room, as is the trend among homebuyers these days. “The open concept can be done, but you don’t have to be highly skilled to do it,” notes Mr. Henderson. “In my experience the cost of putting in an open concept kitchen in order to attract a good tenant is worth it.”

In order to personalize, he says items like a new tub or toilet allow tenants to feel the property is theirs and not a property that has been rented out hundreds of times for the past number of years. “We could totally redo the bathroom but these cost-effective tips are the way to go if you are on a budget,” adds Mr. Henderson. In terms of cleanliness, Mr. Henderson says changing old carpets between tenants diminishes the potential for allergies, health problems, and shows sensitivity to people’s health concerns.

Mr. Gulaty agrees that kitchens and bathrooms are the place to start and says tenants often do not have much by way of imagination.

“Even if they see a kitchen and bathroom, if the rest of the place is not in good repair it’s still going to be a hard sell,” he says. “What I often do is if I am working on a unit and it doesn’t show well I will take [the tenants] up to a completed unit to show them this is what it will look like when it’s finished.”

There are also differences between the work done on a single-family home versus a multi-family unit, Mr. Brennan notes. For example, appliances for a single family unit might be purchased new for top rent. But, adds Mr. Brennan, a multi-family residence might get used appliances. Also, a nicer faucet would be added to a single-family.

Part of that planning, according to Mr. Brennan, is knowing well in advance what you may need for repairs or renovations. To a small investor every penny counts, and he says knowing projects ahead of time will allow investors to seek out sales and promotions on the products they need ahead of the renovation stage.

Another piece of advice for investors includes knowing your limits and ensuring you don’t pick the most difficult project around, says Mr. McGillivray. “I could give you every checklist and every piece of information about being a real estate investor. But you’ll never actually understand something until you try it. Don’t jump into something that is overwhelming.” He adds that picking projects within one’s comfort zone will allow them to do many renovations themselves and save costs.

“Even if you’re not that skilled at physically doing things, act as the project manager so you at least learn from hiring out the trades,” he says.

Challenges

Nothing in the DIY world should be taken for granted and even though costs can be saved and value can be added to projects, novice investors may find themselves trapped by some of the pitfalls of renovation.

1. Be realistic about timelines
Mr. McGillivray says investors should make sure they can afford to carry the property for 25 per cent longer than originally anticipated as timelines always become an issue. Mr. Brennan agrees and says, “It’s guaranteed that something will come up you didn’t plan for both dollar-wise and time-wise.” He adds that investors should try not to add anything during the project, should not procrastinate, and should try to do the challenging projects first and compromise later if needed.

2. Walk before you run
Again, Mr. McGillivray says novices should tackle projects they can deal with. For example, if an investor already owns a home, try putting an income suite in the house first to get a feel for the challenges of being a landlord.

3. Understand local rules, regulations and legislation
Mr. Gulaty says for Ontario landlords, issues such as not being able to collect security deposits, the inability to evict bad tenants in a timely manner and the fact that tenants can qualify if their income matches the rent (even though other expenses are not accounted for) all play havoc with the landlord experience. Mr. McGillivray also adds that checking with the city you are operating in and understanding the local bylaws on building apartments within houses or subdividing properties should be first and foremost in investors’ minds.

4. Play safe
“If you’re under pressure and you’re stressed and your time frame is quickly slipping away from you, sometimes you rush and you may get hurt,” notes Mr. Brennan. And besides your own safety on the job, the safety of the investment and your tenants should be ensured as well. Says Mr. McGillivray: “Above everything than just the cosmetics is the safety of the house. Typically you need a proper inspector or home inspection done to determine if the roof needs to be replaced, if anything needs to be rewired, if there is a plumbing issue or structural issue. Those things take precedence over any cosmetic renovations.”

5. Know when to ask for help
“I’ve learned a lot, even if it’s from a guy at the hardware store,” quips Mr. Brennan.

He says don’t be embarrassed to say “I don’t know.” Take money out of the budget, if necessary, and ensure the project is done right.

Reflecting the clientele
With all the planning, budgeting, avoided pitfalls and lists of materials, the investor interested in “DIYing” their projects must not forget the most important part of the equation – the tenant. “It’s all about imagining what the good tenant wants and doing it in a cost effective manner,” stresses Mr. Henderson. All the work in the world will not attract the right tenants and provide the income being sought if the renovations lack purpose. “Your renovations have to reflect your clientele. And then you can give slightly more to give you an advantage [over your competition],” says Mr. Gulaty. With that information in hand, DIY landlords can plan their projects with direction in order to save money, enhance value and participate in the renovation game in a meaningful and profitable way.

From Canadian Real Estate Wealth Magazine – the only monthly newsstand publication dedicated to individuals and businesses focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers alike.

Greater Vancouver housing market maintains a steady spring pace

Thu, 03 May 2012 16:12:00 GMT

Home sale and listing activity has maintained a consistent pace on the Multiple Listing Service® (MLS®) in Greater Vancouver in recent months, which has helped create balanced conditions for the region’s housing market.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,799 on the Multiple Listing Service® (MLS®) in April 2012. This represents a 13.2 per cent decline compared to the 3,225 sales recorded in April 2011 and a decline of 2.6 per cent compared to the 2,874 sales in March 2012.

April sales were the lowest total for the month in the region since 2001 and 16.9 per cent below the 10-year April sales average of 3,369.

“Although April sales were below what’s typical for the month, we continue to see, with a sales-to-active listing ratio of nearly 17 per cent, a balanced relationship between buyer demand and seller supply in our marketplace,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,056 in April 2012. This represents a 3.6 per cent increase compared to both March 2012 when 5,843 homes were listed and April 2011 when 5,847 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 6.7 per cent above the 10-year average for listings in Greater Vancouver for April.

At 16,538, the total number of homes listed for sale on the region’s MLS® increased 8.5 per cent in April compared to last month and increased 16 per cent from this time last year.

“Recent activity has had a stabilizing effect on home prices at the regional level, although pricing can vary depending on area and property type,” Klein said “To best understand conditions within your area of interest, it’s important to do your homework and consult a local REALTOR®.”

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $683,800, up 3.7 per cent compared to April 2011 and an increase of 2.8 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland is $612,000, which is a 3.4 per cent increase compared to April 2011 and a 2.6 per cent increase compared to three months ago.

Sales of detached properties on the MLS® in April 2012 reached 1,126, a decline of 19.7 per cent from the 1,402 detached sales recorded in April 2011, and a 17.8 per cent decrease from the 1,370 units sold in April 2010. The benchmark price for detached properties increased 6.3 per cent from April 2011 to $1,064,800.

Sales of apartment properties reached 1,190 in April 2012, a decline of 0.9 per cent compared to the 1,201 sales in April 2011, and a decrease of 22 per cent compared to the 1,526 sales in April 2010.The benchmark price of an apartment property increased 1.1 per cent from April 2011 to $375,900.

Townhome property sales in April 2012 totalled 483, a decline of 22.3 per cent compared to the 622 sales in April 2011, and a 21.6 per cent decrease from the 616 townhome properties sold in April 2010. The benchmark price of a townhome unit increased 1.7 per cent between April 2011 and 2012 to $487,300.

Source: Real Estate Board of Greater Vancouver

Mortgage Features: More than the Best Mortgage Rate

Wed, 02 May 2012 17:30:00 GMT

Mortgage Features: More than the Best Mortgage Rate

By Matthew Chan, CA MBA AMP

Getting the best mortgage rate doesn't necessarily mean you're getting the best mortgage. A no-frills mortgage with a rock-bottom mortgage rate may have the lowest interest rate, but it could cost you in the end.

And lenders like to upsell you to a mortgage with more features, but they've always been very cagey about telling you what those mortgage features mean in terms of dollars and cents. As of November 5, 2012, federally regulated financial institutions in Canada are going to have to be absolutely clear in explaining what it will cost to get a mortgage you can pay off faster.

Meanwhile, let's take a look at mortgage features that might -- or might not -- match your needs.

	No-Frills Mortgage
What It Is	A basic, fixed-rate mortgage with: limited prepayment of the original principal (typically 10- per cent or less) no double-up payment feature limited or no ability to increase your mortgage payment penalties (very high in many cases) for refinancing or paying out the mortgage in some cases, no ability to refinance unless your home is sold limited ability to port your mortgage (take it with you) if you move
You Want It If...	Interest rates are low You see no need to change the mortgage term and payments You don't expect to be able to make extra lump-sum payments of over each year (usually 10 per cent or less per year) You want your payments to stay the same through the life of the mortgage
You Don't If...	You want to pay out the mortgage or refinance it before the term is up (over 70% of borrowers do) You'll have enough money to make large lump-sum payments occasionally You expect to be able to increase your payment each year

	Variable Rate Mortgage
What It Is	Your mortgage rate is tied to the current prime interest rate and goes up or down with it Payments could either move up or down with the prime rate, or stay the same but cover more or less of your interest as the prime rate fluctuates You can lock in any time, so if interest rates are climbing you can switch to a fixed mortgage rate
You Want It If...	Interest rates are trending down (the situation since 1990) You have the potential of paying a lower average rate than a fixed-rate mortgage offers -- there used to be a significant difference between variable and fixed rates, but with the recent historically low interest rates, lenders have decreased the difference to make fixed rates more attractive You're willing to pay attention to the prime rate You like the flexibility to lock in to a fixed rate mortgage later
You Don't If...	Interest rates are going up (they're steady right now, but there's only one place to go from here) You like security and predictability

	Prepayment Privileges
What It Is	Your mortgage includes the right to make extra payments up to a certain percentage of the whole without penalty: In one or more lump sums per year In double-ups, or extra amounts whenever you want to make them In increased payments arranged annually
You Want It If...	You want to pay your mortgage down faster You expect to have extra money in your budget to add to your payments or increase them every year You're expecting lump sums you can apply to your mortgage, e.g., bonuses from work or an inheritance
You Don't If...	You don't forsee any extra money in your budget

	Payment Deferral
What It Is	Your mortgage lets you skip one payment or one month's payments per year. Some banks require you to make a double payment at some point to make up for a missed payment, so if this feature is offered with your mortgage, check the terms.
You Want It If...	You want to have the option of deferring a payment in case of an emergency
You Don't If...	You'd be tempted to use the money as disposable income rather than an investment in your future

	Collateral Mortgage
What It Is	This mortgage can be split into multiple components, e.g., part fixed rate, part variable rate, part secured line of credit. Many banks automatically register their mortgages as collateral mortgage, including TD and ING.
You Want It If...	You want to separate different portions of your mortgage for tax purposes -- if you took out a loan for investment/business purposes, then it's easier to track the interest expense for tax purposes You're undecided and want to diversify the mortgage so you have some on both variable rate and fixed rate You plan to use some of the equity in your home later, e.g., for investment or renovations
You Don't If...	You don't want to be tied to one bank because you have different loans with different renewal dates You don't want to incur legal fees if you switch to a different lender You want to have leverage to negotiate or switch (banks love collateral mortgages because they can tie in more banking services with them, like secure credit cards, lines of credit, RRSP loans, etc.

Every lender creates different packages and uses different names for these mortgage features. An independent mortgage broker will thoroughly analyze your needs and help you find the best mortgage, not just the best mortgage rate.

Matthew Chan has been a licensed mortgage broker since 2004 and served on the Board of Directors for MBABC during 2006 and 2007. Before becoming a mortgage professional, Matt earned a Chartered Accountant designation with a Big Four accounting firm and earned an MBA from the Rotman School of Management at the University of Toronto.

Source: REW.ca

Wow Factor Condo Features: What Buyers Want Now

Mon, 30 Apr 2012 17:34:00 GMT

April 27, 2012, REW.ca

In the Greater Vancouver real estate market, the condo is the first step on the equity ladder for most buyers. The current benchmark price is $375,100, just over one-third of the price of a detached house. And depending on size and location, there are plenty at lower prices.

But that's still a lot of money, so buyers want to be blown away. For developers, the design and feature options they offer can be the difference between instant sellout and the dreaded "unsold inventory."

These are the hot button features for condos that sold in the last half of 2011. They either sold much faster than average or fetched a higher-than-average asking price according to the Condominium Market Opportunities Report (CMOP), prepared by industry consultants Strategics and MPC Intelligence. Clean and sleek was definitely the preferred look.

High-rise condo buyers salivated over these features:

Laminate hardwood kitchen flooring
Viking and Liebherr kitchen appliances
Quartz kitchen countertops
Vinyl bathroom flooring
Glass door bathroom cabinets
Quartz bathroom countertops.

Low-rise buyers went for these features in a big way:

Engineered hardwood kitchen flooring
Stainless steel kitchen appliances
Bosch , Samsung or Fisher Paykel kitchen appliances
Glass door kitchen cabinets
Quartz bathroom countertops
Glass door bathroom cabinets

Meanwhile, the 2012 TD Canada Trust Condo Poll interviewed people who have recently bought or intend to buy a condo. Vancouver respondents were almost unanimous about the major elements that help them decide to buy a condo they'd looked at:

Low condo fees (97%)
Good building security (96%)
Attractive interior design (95%)
Energy-efficient building features (93%)
A balcony (92%)

The TD study found differences between men's and women's condo-shopping preferences. More men than women want a newly constructed condo. Women are more likely than men to look for environmentally friendly features and a balcony.

Single women a force in the condo market

An earlier TD study estimated that single women make up 30 per cent of first-time home buyers, and they overwhelmingly choose condominiums.

According to Mark Belling, of Surrey-based Fifth Avenue Marketing, "Single women are now a power in the local condominium market. They easily outnumber single men." He adds, "Young women seem to become financially mature earlier, with the ability to save for a down payment."

Witness the new HGTV show, Buy Herself, with Realtor Sandra Rinomato guiding single women to a home purchase. Rinomato says that making a smart investment is the primary driver. Women say to her, "Well, you know it's time for me to buy a condo as an investment that I can make money off of, that I can also live in, that I can nest in… I can paint it and decorate it to my taste… Why not do it?"

Safety, a balcony and entertaining space are important to women, she says. Condos offer greater security, which is a top concern among women living alone. A balcony gives them safe, private outdoor space for chilling out. And a party room or rooftop deck lets them entertain more people if they have a matchbox-sized living space.

Developers are listening. An example is the Meccanica project in False Creek South. Hani Lammam, VP of development for Cressey, talked about it with Business in Vancouver's Strategic Marketing columnist, Judy Bishop.

'Meccanica incorporated feedback from women about design, floor plan and exteriors,' said Lammam. 'We've placed major emphasis on qualities women value.'

The result was functional layouts and stylish design features including polished floors, high-gloss cabinets, closet space, spa bathrooms and high ceilings. And overwhelming response from women.

Location still rules

Location is paramount. A year ago, it was the usual to see lineups of prospective buyers when new projects went on sale. Now, that only happens when the condos are smack up against a transit line and a neighbourhood loaded with amenities.

An estimated 7,800 new condo units in high rises are expected to become available this year. Prices of both new and MLS® condos are not expected to return to their mid-2011 anytime soon. In a stagnant market, condos with the right mix of design and features, price and location will find owners.

Source: Rew.ca

2 Top Economists vs The Bubble

Thu, 12 Apr 2012 17:23:00 GMT

Source REW.ca

REW.ca, April 9, 2012

Just relax. Vancouver real estate bubble fears are overblown, and the numbers don't bear them out.

Two top economists told REW.ca the same thing about where the Lower Mainland and Vancouver real estate market is going, and neither of them foresees the kind of sudden, extreme correction many people are worried about (or hoping for).

Cameron Muir (left) is the Chief Economist of the BC Real Estate Association, and the familiar face delivering BCREA's video outlook every month. Warren Jestin (right) is Chief Economist at Scotiabank, where he studies Canadian and global economic issues. Both will be speaking at the Vancouver Real Estate Forum on Wednesday, April 11 at the Vancouver Convention Centre West.

Muir describes the real estate market as "a constellation of factors that interplay with one another," but he says the age-old demand and supply ratio is the most telling. In real estate that's sales-to-listings, and he says that ratio is currently in balanced territory: in between 15 and 20 per cent. With unit sales below the 10-year average across the region, expect "moderate-average typical demand scenario."

Demand -- distinct market segments

When it comes to demand, Warren Jestin says there are two distinct market segments. The high end, driven by wealthy families, produces eye-popping numbers like the benchmark price of $2,250,100 for single detached houses in Vancouver West.

As Cameron Muir points out, luxury home sales appreciate much faster during good times. Those extremes put upward pressure on average prices by skewing the whole regional price picture, as we saw last year.

(The new MLS® Home Price Index and benchmark prices give a truer picture of typical home prices and trends for each market area, as they're less affected by a few ultra-high-end sales. For instance, the average March price for a detached house in Greater Vancouver was $1,155,521, while the benchmark price was $1,056,400 -- almost a full $100,000 apart.)

The other market segment -- let's call it The Rest of Us -- will buy homes when there's optimism about job security and continued income. That's a much larger market segment.

Strong economic fundamentals for BC

BC is doing well on the job front, says Jestin. Our province has outperformed the national average fairly consistently, and he believes that over the next year BC will outperform Central Canada and the Maritimes and see employment growth.

In Asia, 20 million new homes are being built, fueling a 2.25 - 2.5 per cent growth in demand for construction-grade lumber. And Asia has a net demand for other resources, including natural gas and oil. BC's position as a gateway to those developing markets will require new infrastructure, creating jobs and economic activity.

These strong economic fundamentals result in confidence that will drive consumer spending on the biggest item on the household balance sheet: the home.

Interest rates -- low and stable

But how affordable is that home? Greater Vancouver has the highest benchmark prices in Canada and the Fraser Valley is in third place behind Toronto. We've seen numerous affordability studies warning about the high ratio of home price to income.

Muir says those studies leave out one factor in the calculation: interest rates. We're at lifetime lows -- the bottom of a 25-year decline in interest rates -- which means you can borrow more for the same payments.

Neither economist sees interest rates rising sharply. It's true they have nowhere to go but up, but it would take a worldwide economic shock to drive rates steeply upwards, so low interest rates should continue to buoy the market for at least a year.

Jestin sees three- and five-year mortgage rates going up about 0.5 per cent over this year, and a year from now the beginning of a rise in short-term interest rates, which will affect variable mortgages.

He says, "In the purchase decision, that reality has to be there. Now is the time to temper enthusiasm, but not panic.

Multifamily construction takes over

Even with low mortgage rates, single-family detached houses are out of reach for most first-time buyers, particularly in Metro Vancouver. Muir expects to see detached-house prices continue to increase for two reasons: there's no place to build more of them because of our geography, and they're becoming a smaller and smaller proportion of our housing stock. Most of the new ones being built are replacing houses that were torn down.

Construction is moving to condos and away from single-family detached. In fact, condo construction is outpacing household formation in Greater Vancouver, and the growth of condo prices has flattened, with a possible drop in prices predicted.

Now, condos are fulfilling a new role, says Jestin. First-time buyers are starting in condos/townhouses as "the starter house" becomes too expensive to contemplate.

Condos are also becoming the source of rental properties. Investors see them as a good opportunity for cashflow because the rental market is so tight.

No bubble

"Prices are nuts!" "Nobody can afford to get into the market!" "It's all gotta collapse sometime... "

We Lower Mainland locals talk about our real estate market obsessively, and try to make sense of it from anecdotal evidence and a tsunami of unrelated statistics.

So it's educational to hear from two professionals whose job it is to make sense of statistics and put them in context.

Our market is definitely changing, with multifamily housing growing fast. Our prices are definitely out there, but because of strong demand in particular areas, not rampant speculation. Activity is definitely slower, but in the last couple of years we've seen "a profound run-up."

Warren Jestin admits there's a risk for slower growth and higher interest rates, but doesn't believe there's a bubble about to burst because he doesn't forsee job destruction (as happened in the US housing crisis).

Cameron Muir says, "Prices are very sticky on the way down. If there are no big macro-economic shocks, we're not going to see dramatic changes."

The state of the local real estate market is the subject of the Vancouver Real Estate Forum on Wednesday, April 11 at the Vancouver Convention Centre West. Warren Jestin will be giving the keynote address and Cameron Muir will be on the panel for "Residential Market: Is this Market Sustainable?"

Source: REW.ca

How to make your house picture-perfect for the sale

Mon, 09 Apr 2012 20:59:00 GMT

Source: Globe and Mail

Staging has become a common, if not integral, step in the home-selling process, especially as savvy HGTV-fed consumers continue to tune into programs like Designed to Sell, The Stagers and Get it Sold.

“Years ago you could put your house on the market and nobody cared what it looked like,” says Cindy Stocker, a property stylist at Vancouver-based Urban Presentations. “But people are more impressionable these days.”

Blogs, articles and websites are awash in statistics championing the effectiveness of staging. According to Designed to Sell, for example, virtually all houses that are staged sell over asking price, while an AOL Money poll found that 87 per cent of people say home presentation makes a difference in most sales.

In 2011, the Real Estate Staging Association (RESA) found that homes staged prior to listing, as opposed to those staged after sitting on the market, were likely to sell 79 per cent faster.

Of course, some find the idea of paying thousands of dollars to stage a home deplorable, and may argue there’s scant genuine data proving its effectiveness to sell a home. These studies cannot possibly account for the slew of factors that may impede or facilitate a sale, such as market fluctuations, local market conditions, location and the structural condition of a home.

But others view staging as a relatively easy and cost-effective way to make a strong first impression on Realtors’ Multiple Listing Service, to attract more interested buyers and to command a higher purchase price.

And most homeowners would agree that it can be difficult to bring a buyer’s perspective to a property they’ve lived in for years. The mandate of the professional stager, then, is to bring this much-needed fresh set of eyes to ensure that the space appears well maintained and move-in ready to prospective buyers.

Here’s what to expect in terms of services and costs:

Site visit - no cost

Most companies do not charge for the initial meeting, which generally involves a brief 15-minute walk-through of the space. This meeting helps the stager to help determine the estimate.

Consultation - between $75 and $250

During the one-hour consultation, the stager offers advice on curb appeal and then moves room-to-room, pointing out areas that could use improvement, says Anne Bourne, the owner of Toronto-based StagingWorks. Depending on the company, they will follow up with report of recommendations, or the client will simply take notes during the walk-through and create his or her own do-it-yourself list.

Two to three-hour tweak - $250

This “once over” or “tune-up” service is for people with modest spaces, like condos, to get their places photo-ready. The stagers will use what the client has in the apartment, whether it’s bedding, art or furniture, and suggest ways to improve the flow so that potential buyers can move through the space freely.

The works - from $800 to upwards of $5,000

The cost depends on the size of the space (i.e. 500 sq. ft. condo vs. 3,000 sq. ft. house) and the amount of “fluffing” that is required. If it’s just art, area rugs, lamps and accessories that the home owner needs, the cost will run on the lower end of the scale. But when movers are involved to bring in a new sofa or dining room table, for example, or tradesmen are needed to paint the walls and make repairs, the price can escalate quickly.

Ms. Stoker and Ms. Bourne say the average person will shell out between $2,300 to $2,500 for staging services, rental of furniture for a month and the hiring of a moving company. They also caution against stagers who offer cut-rate prices.

“Often you get what you pay for,” says Ms. Stoker, who recommends getting a couple of quotes on the services or rentals before hiring the company.

*****

The DIY approach

If hiring the pros is not in your cards, here are some quick-and-dirty ways to help you stage your home on a dime:

1. Remove 20 to 50 per cent of furniture and accessories in each room

2. Stick to neutral paint colours on the wall, and add a fresh coat of bright white paint to the baseboards

3. Clean all windows and scrub all floors

3. Pick up a couple of planters and a new welcome mat for your front porch

4. Buy a fresh set of crisp, clean bedding and white fluffy towels for the bathroom

5. Edit your art. If your walls are plastered with wedding or baby photos, go out and buy a couple of works that are a bit more mainstream.

6. Ditch the shoe racks, small book cases or storage pieces. These will give the buyer the impression that space is tight.

7. Freshen things up with flowers and fruit. Ms. Stoker says her team always puts an orchid or greenery in every bathroom and puts a bowl of fruit – lemons, limes, oranges – in the kitchen.

8. Don’t use air fresheners to mask the small of tobacco, dirty laundry, cats or last week’s leftovers. Try using a lemon-scented cleaner, says Ms. Bourne, to help remove unwanted odours.

Source: Globe and Mail

Link: http://www.theglobeandmail.com/globe-investor/personal-finance/home-cents/how-to-make-your-house-picture-perfect-for-the-sale/article2393191/

Increased selection helps maintain balance in Greater Vancouver housing market

Wed, 04 Apr 2012 15:47:00 GMT

Tuesday, April 3, 2012

VANCOUVER, BC - Home sales in March trended below the 10-year average in Greater Vancouver while home listing activity outpaced what’s typical for the month.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,874 on the Multiple Listing Service® (MLS®) in March 2012. This represents a 12.9 per cent increase compared to the 2,545 sales recorded in February 2012, a decline of 29.6 per cent compared to the 4,080 sales in March 2011 and an 8.4 per cent decline compared to the 3,137 home sales in March 2010.

March sales in Greater Vancouver were the second lowest total for the month in the region since 2002 and were 16.8 per cent below the 10-year sales average for the month.

“Home sellers have been more active than buyers the first few months of the year, but we continue to see a relative balance in the total supply of homes for sale and current demand in the marketplace,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,843 in March 2012. This represents a 5.2 per cent increase compared to February when 5,552 homes were listed and a 14 per cent decline compared to March 2011 when 6,797 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 4.5 per cent above the 10-year average for listings in Greater Vancouver for March.
At 15,236, the total number of residential property listings on the MLS® increased 8.4 per cent in March compared to last month and increased 16 per cent from this time last year.

“The total number of properties for sale in Greater Vancouver has increased each month since December, which means there’s more selection to choose from as we enter what’s traditionally the busiest season of the year in our market,” Klein said.

The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $679,000, up 5.3 per cent compared to March 2011 and an increase of 1.1 per cent compared to February 2012. The benchmark price for all residential properties in the Lower Mainland is $607,700, an increase of 4.8 per cent compared to March 2011.

Sales of detached properties on the MLS® in March 2012 reached 1,183, a decline of 34.1 per cent from the 1,795 detached sales recorded in March 2011, and an 11.5 per cent decrease from the 1,336 units sold in March 2010. The benchmark price for detached properties increased 9.2 per cent from March 2011 to $1,056,400.

Sales of apartment properties reached 1,191 in March 2012, a decline of 26.6 per cent compared to the 1,622 sales in March 2011, and a decrease of 4.9 per cent compared to the 1,252 sales in March 2010.The benchmark price of an apartment property increased 2.2 per cent from March 2011 to $375,100.

Townhome property sales in March 2012 totalled 500, a decline of 24.6 per cent compared to the 663 sales in March 2011, and an 8.9 per cent decrease from the 549 townhome properties sold in March 2010. The benchmark price of a townhome unit increased 0.9 per cent between March 2011 and 2012 to $480,900.

The Real Estate Board of Greater Vancouver is an association representing more than 11,000 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

For more information contact:
Craig Munn
Assistant Manager, Communication
Real Estate Board of Greater Vancouver
604.730.3146
cmunn@rebgv.org

Is This a Good Time to Buy? Our Consumer Survey

Fri, 30 Mar 2012 17:02:00 GMT

March 28, 2012
REW.ca

REW.ca asked consumers for their thoughts on the current Vancouver real estate market.

We asked because expert opinion is easy to find -- consumer opinion, not so much. Government, banks, real estate boards and other industry heavyweights weigh in regularly with predictions based on what consumers have done. So we like to ask consumers what they think they will do in hopes of getting a crystal-ball glimpse of the near-future.

We asked only two questions in our March 2012 Consumer Confidence Survey:

Do you think it's a good time to BUY a house/condo in the next three months?
Do you think it's a good time to SELL a house condo in the next three months?

Then we had them tell us their reasons. We didn't give them a list of choices. Instead we let them give their own answers and then we grouped them.

Good time to buy?

On the "good time to buy" question, our 278 respondents were almost evenly split, and the answers were consistent across the region and across all demographics. Renters -- 22 per cent of the respondents -- were just as split as owners on whether or not to buy in the current real estate market.

High prices were the largest deterrent to buying: 49 per cent of the No side said prices were too high to encourage buying now.

On the Yes side, 28 per cent of the respondents were encouraged by the lowest interest rates ever seen, and 17 per cent believed there was a lot to choose from on the market.

But all sorts of other factors emerged in the spontaneous answers people gave to "Is it a good time to buy in the next three months?"

Good time to sell?

A clear, but small majority said it is a good time to sell, but there was no single reason given. Those who thought the time is right to sell cited five main factors that showed they were paying attention to the real estate market.

There was a range of opinion on house prices on the Yes side. While 17 per cent think a price correction is coming (making now a good time to cash out), 7 per cent think prices have stabilized and 8 per cent think prices will continue to rise. (So far this year, Greater Vancouver prices have risen by only 0.1 per cent.)

The respondents who wouldn't sell expressed concern about the economy in general and about a possible market correction in the coming months, which would make a home purchase immediately lose value.

Looks like the crystal ball is still cloudy.

We welcome your comments on whether it's a good time to buy or sell a home in Metro Vancouver, the Fraser Valley and Abbostford/Chilliwack in the coming three months. What do you think?

For current market conditions, see: Greater Vancouver stats, Fraser Valley stats, resale condo/townhouse stats.

See survey details here.

Source: REW.ca

Blog

Home sales and listings continue to follow historical averages

Balanced conditions continue in the Greater Vancouver housing market

Sale and listing activity continues to follow historical averages

The summer housing market remains active in Greater Vancouver

July home sale activity increases in Greater Vancouver

Balanced conditions provide a stable backdrop for today’s home buyers and sellers

Spring months bring balance to Greater Vancouver housing market

Spring delivers greater balance to Greater Vancouver housing market

Home sale activity improves but remains below historical averages

Home sales continue at below average pace

Resale vs New: Condo Price Comparison

January home sales remain quiet

Seven secrets to finding a good handyman – and avoiding reno hell

Tips on Preparing Your Home for Sale Day

Prices hold firm as home buyers and sellers conclude 2012 from the sidelines

Greater Vancouver residential property sale and listing activity below 10-year averages in November

Property Flipping in the Metro Vancouver Market: A Landcor Study

How much flipping is going on?

Is there money to be made?

Housing market sees slight changes in October

Conditions continue to favour buyers in the Greater Vancouver housing market

Real Estate Board of Greater Vancouver August Stats

Home sellers continue to outnumber buyers in Greater Vancouver’s summer housing market

Checklist: Documents You Need when Applying for a Mortgage

Buying a Home?

Refinancing Your Home?

Once the Lender has Given Final Approval:

5 Steps to Refinance Your Mortgage

Step 1. Contact a mortgage professional

Step 2. Determine why you would like to refinance

Step 3. Determine the short-term and long-term goals for your home

Step 4. Determine what the penalty is to refinance

Step 5. Calculate the real cost of refinancing your mortgage

Greater Vancouver housing market hits summer lull

Slowing Chinese Growth Weighs On Vancouver’s Housing Market

Ottawa Tightens CMHC-Insured Mortgage Rules

What's the Real Value of Your Home?

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So What Is My Home Worth?

The Best Thing You Can Do To Sell Your Home

Toss/Recycle/Donate It

Sell or Swap It

Outsource It

US property prices expected to rise by over 1% during the rest of 2012

Spring activity remains balanced in the Greater Vancouver housing market

Parade of Renovated Homes 2012 Sunday, June 10

Professionally renovated homes open to public

The do’s and don’ts of a home renovation

Don't count on your home to fund your retirement

Vancouver Real Estate Market - 2 Different Pictures

Landlords face pitfalls when they go the DIY route

Greater Vancouver housing market maintains a steady spring pace

Mortgage Features: More than the Best Mortgage Rate

Mortgage Features: More than the Best Mortgage Rate

No-Frills Mortgage

Variable Rate Mortgage

Prepayment Privileges

Payment Deferral

Collateral Mortgage

Wow Factor Condo Features: What Buyers Want Now

Single women a force in the condo market

Location still rules

2 Top Economists vs The Bubble

Demand -- distinct market segments

Strong economic fundamentals for BC

Interest rates -- low and stable

Multifamily construction takes over

No bubble

How to make your house picture-perfect for the sale

Increased selection helps maintain balance in Greater Vancouver housing market

Is This a Good Time to Buy? Our Consumer Survey

Good time to buy?

Good time to sell?