Justin Leigh : Blog : Latest Blog Posts

Greater Vancouver Real Estate Sales Increase in February While Listing Inventory Declines

Thu, 04 Mar 2010 00:30:55 GMT

The following market report is from the REBGV

VANCOUVER, B.C. - The Greater Vancouver housing market continued to experience strong demand from homebuyers and an increase in total property listings in a month where the eyes of the world were focused on the region.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,473 in February 2010, an increase of 67.1 per cent compared to February 2009 when 1,480 sales were recorded and a 28.6 per cent increase compared to the 1,923 sales recorded in January 2010.

More broadly, last month’s sales totals marked a 7.6 per cent decline compared to the 2,676 sales recorded in February 2008 and were 13.5 per cent behind February 2007 when 2,859 residential sales were recorded on the Multiple Listing Service (MLS®) in Greater Vancouver.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 19.7 per cent to $581,911 from $486,054 in February 2009. This price is 2.4 per cent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

“We don’t know at this point what long-term impact the Olympics will have on our housing market, but we do know that  activity remained steady through all of the excitement and distraction of the last few weeks,” Scott Russell, REBGV president said.

“In February, for example, 110 sales were recorded on the MLS® in downtown Vancouver. That’s higher than 2009 and  slightly lower than the mid-2000s, which is consistent with data from the overall market. It’s too soon to say whether that’s an Olympic effect,” Russell said.

New listings for detached, attached and apartment properties in Greater Vancouver totaled 4,606 in February 2010. This  represents a 17.6 per cent increase compared to February 2009 when 3,916 new units were listed, and a 10.5 per cent decrease compared to January 2010 when 5,147 properties were listed on the MLS® in Greater Vancouver.

At 11,346, the total number of property listings on the MLS® increased 11 per cent in February compared to last month and declined 21 per cent from this time last year.

“Two months into 2010, we see the total number of homes listed for sale on the rise and demand in the market strong, but less frenzied than we saw in the latter part of 2009,” Russell said.

Sales of detached properties increased 67.5 per cent in February 2010 to 983 from the 587 detached sales recorded during the same period in 2009. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties increased 22.5 per cent from February 2009 to $800,796.

Sales of apartment properties in February 2010 increased 65.2 per cent to 1,074 compared to 650 sales in February 2009. The benchmark price of an apartment property increased 17.3 per cent from February 2009 to $390,899.

Attached property sales in February 2010 are up 71.2 per cent to 416, compared with the 243 sales in February 2009. The benchmark price of an attached unit increased 16.2 per cent between Februarys 2009 and 2010 to $495,496.

Vancouver Ranked #1 Most Liveable City in the World...Again!

Thu, 18 Feb 2010 14:18:19 GMT

The Economist Intelligence Unit, a branch of The Economist Magazine, has released its Global Liveability Report for 2010 and once again Vancouver is ranked as the most liveable city on the planet. The timing of this report couldn't be better for Vancouver real estate as the world's focus is currently on Vancouver for the 2010 Winter Olympics. To read the press release for this report please follow the link below. If you currently own real estate or are considering buying Vancouver real estate, you will find this report encouraging. Vancouver continues to be a good place to invest in real property:

Winter Olympics host, Vancouver, ranked world's most liveable city:

http://www.eiu.com/site_info.asp?info_name=The_Global_Liveability_Report_Press_Release&page=noads

Laneway Housing coming to Vancouver?

Tue, 28 Jul 2009 13:27:04 GMT

Vancouver City Council is expected to approve Laneway Housing this week. This will allow the construction of a laneway house in the back yard of a single detatched lot with a minimum width of 33 feet. An area of 16 feet between the back of the existing house and the laneway house will be required to maintain a backyard open space. There are also parking spot requirements.

The purpose of this initiative is to help Vancouverite's deal with the high prices of real estate and the shortage of living areas in Vancouver's single detached housing areas. Although there has been some resistance to laneway housing in Vancouver, it is a foregone conclusion that it will be approved. If you would like to discuss Laneway Housing in Vancouver please contact me for more information.

Here is a link to a city hall policy report on laneway housing with diagrams and requirements: _media/Documents/laneway_housing.pdf

Here is a link to a Globe and Mail article discussing the issues and the controversy: http://www.theglobeandmail.com/news/national/british-columbia/the-laneway-house-a-novel-solution-to-vancouvers-real-estate-crunch/article1233008/

Mould In The Olympic Village?

Tue, 30 Jun 2009 12:15:53 GMT

According to a report by the CBC, there may be a future mould problem festering in the condos being built at the Olympic Village. The issue has been raised by the International Association of Heat and Frost Insulators and Allied Workers who claim that some construction shortcuts will lead to mould and mildew behind the drywall where pipes are not being insulated properly. The City of Vancouver is looking into the matter and assures the public that regular inspections are being held on site to ensure that all building codes are being adhered to. The developer claims this is an isolated issue.

If you have any concerns or would like to discuss any real estate matters, please feel free to contact me. Here is a link to the CBC report: http://www.cbc.ca/canada/british-columbia/story/2009/06/29/bc-olympic-village-pipe-insulation.html

Confidence in Canadian Real Estate Markets Increasing

Wed, 10 Jun 2009 00:44:47 GMT

If you aren't convinced that Vancouver Real Estate has become more affordable over the past year, you may be part of a minority opinion. A new report released by the Canadian Mortgage and Housing Corporation today shows that there is an increase in confidence among Canadian homeowners these days. The report which polled recent Canadian homebuyers reveals that 90% of these home owners believe that real estate is a good investment. 70% of them feel that now is a good time to buy. These opinions shouldn't come as a surprise since most house prices in Canada have come down in the past year and a half, and mortgage interest rates are hovering around record lows. This is creating an environment of increased affordability across all Canadian housing markets, including Vancouver. If you are looking to get into the real estate market in vancouver, please contact me and I will be happy to discuss any concerns you may have.

Here is a link to the CHMC's press release about this report: http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-06-09-0830.cfm

BC Court Allows Buyer to Back Out of Purchase Contract

Fri, 05 Jun 2009 13:46:17 GMT

If you have signed an offer to buy a pre-sale Real Estate property in Vancouver, or anywhere else in Canada, you may be able to rescind the purchase contract if the developer has not proivided you with all the amendments to the disclosure statement. This may come as a relief to those buyers that have purchased pre-sale properties which have dropped in value over the past few years. If you are in this position please feel free to contact me with any questions you may have. In addition, you might find this article in the Vancouver Sun very interesting: http://tinyurl.com/r3mbfu

May 2009 Real Estate Market Statistics

Thu, 04 Jun 2009 15:02:24 GMT

The Real Estate Board of Greater Vancouver has just released the statistics package for May 2009 and it looks like the Spring market in 2009 is much busier than it was in 2008. Total Real Estate sales transactions in Vancouver were up 17% from a year ago and total inventory of homes for sale is down 16%. This means more demand and less supply which explains the competition that we've been seeing in the market between Buyers as people scramble for desirable properties. Their goal is to take advantage of low prices and low interest rates. Home prices in Vancouver are up since December 2008 but still down 11% from this time last year. You may download a copy of the May Stats package here: May Stats Package

Please contact me if you would like to discuss this issue or any other Vancouver Real Estate issue. It will be my pleasure.

BCREA Reports Vancouver Real Estate Stabilizing

Tue, 26 May 2009 19:23:55 GMT

The British Columbia Real Estate Association released their Spring 2009 Housing Forecast today and the news is good for Vancouver Real Estate!

“The majority of the decline in home prices has already occurred,” said Cameron Muir, BCREA Chief Economist. “Balanced markets are emerging in Victoria, Vancouver and the Fraser Valley. There’s now little downward pressure on home prices in these areas.”

Increased affordability have brought first time buyers back into the market this year, a profile of buyers that were largely absent from the market in the last 6 months of 2008.

The BCREA have actually revised their forecast of 2009 home prices upward. They now predict that the average home price in BC will decline only 8% as opposed to their initial forecast of 13%.

Please click here to read the BCREA press release: _media/Documents/2009-05-26Forecast.pdf

CMHC's Crystal Ball for Vancouver's Real Estate Market

Wed, 20 May 2009 01:16:48 GMT

The Canadian Mortgage and Housing Corp. is now forecasting that in 2009 Greater Vancouver will see a 44% drop in the inventory of new home construction compared with 2008 levels. CMHC also sees average resale home prices dropping 13% this year and another 2.3% for 2010. Contrast this with the actual data that shows rising sales over the past few months and it becomes clear to me that the basic economics of supply and demand will provide for a fairly stable Vancouver housing market in the near future. Low interest rates and relatively low inventories of properties on the market will slow any future price declines. Please contact me to discuss this blog post or any other Vancouver real estate issues. I'd love to hear your opinion.

Here is a link to a Vancouver Su article about CHMC's forecasts: http://www.vancouversun.com/Business/housing+starts+decline+from+2008+CMHC/1609497/story.html

Canadian Real Estate Sales Strong in April

Fri, 15 May 2009 22:21:22 GMT

Spring came in like a lion! April real estate sales in Canadian cities like Vancouver showed the highest monthly jump since 2004. Low interest rates and low prices signaled a return to affordability and Canadian buyers reacted by writing offers. The market has been so strong that the Canadian Real Estate Association has revised its sales and price forcasts for 2009 upward. Don't hesitate to contact me if you want to discuss the Vancouver Real Estate market in greater detail. It will be my pleasure.

Click the following link for a related Financial Post article:

http://www.financialpost.com/story.html?id=1597829

Great Deals on New Homes in Vancouver Real Estate Market

Wed, 13 May 2009 18:13:07 GMT

Developers in the Greater Vancouver area have dropped their prices on a variety of new construction real estate. This translates into great buying opportunites for buyers looking for new homes. However, don't think the deals are sitting around getting dusty. Many new developments are selling quickliy as the market reacts to lower prices for new homes in Vancouver. Feel free to contact me if you are interested in buying a home in Vancouver or if you would like to discuss this blog post with me.

Here is a link to a Vancouver article that discusses this issue:

http://www.vancouversun.com/Business/home+prices+still+falling/1587270/story.html

Canadian Housing Market Shows Signs of Recovery

Tue, 05 May 2009 15:54:31 GMT

Scotiabank has released a report on the Canadian Housing Market that indicates there are signs that the real estate market may be stregthening as demand is up and listing inventory is down. The recovery may be moderate and slow but the signs are positive. Here's a link to a CBC News article about the report: http://www.cbc.ca/consumer/story/2009/05/05/housing-market.html

April Real Estate Market Statistics point to Increased Stability

Tue, 05 May 2009 00:11:40 GMT

The Real Estate Board of Greater Vancouver has just released their latest statistics package outlining market activity in the Greater Vancouver area. Please click here to download the full report or read on for the accompanying press release. If you have any questions about the current market conditions in the Greater Vancouver Real Estate Market please contact me and I would be happy to discuss it with you.

VANCOUVER, B.C. May 4, 2009 With more buyers and fewer homes for sale in recent months, the Greater Vancouver housing market has entered a more moderate and balanced state.

For the sixth consecutive month, new listings for detached, attached and apartment properties declined in Greater Vancouver, down 33.7 per cent to 4,649 in April 2009 compared to April 2008, when 7,010 new units were listed. The total number of property listings on the Multiple Listing Service® (MLS®), while slightly down compared to last month, remains unchanged compared to the same period in 2008.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,963 in April 2009, a decline of eight per cent from the 3,218 sales recorded in April 2008, and an increase of 31 per cent compared to last month.

"We're seeing greater balance in the housing market, as evidenced by a strong sales to active listings ratio of over 19 per cent, Scott Russell, REBGV president said. "The result is a relatively stable market in which homes are being realistically priced.

"The bridge between buyer demand and housing supply is continuing to narrow, which, as we see, helps bring stability to home prices," he said. "The trends in our housing market over the last couple of months offer a much more comfortable, historically normal set of conditions."

Sales of detached properties declined eight per cent to 1,190 from the 1,293 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties declined 12.2 per cent from April 2008 to $675,268.

Sales of apartment properties in April 2009 declined 10.5 per cent to 1,179, compared to 1,317 sales in April 2008. The benchmark price of an apartment property declined 12.6 per cent from April 2008 to $340,203.

Attached property sales in April 2009 are down 2.3 per cent to 594, compared with the 608 sales in April 2008. The benchmark price of an attached unit decreased 9.7 per cent between April 2008 and 2009 to $431,759.

Bright spots in Greater Vancouver in April 2009 compared to April 2008:

Detached:
Vancouver West ..........up 59.5 per cent (193 units sold from 121)

Attached:
Port Coquitlam ................up 69.6 per cent (39 units sold from 23)
Richmond ....................up 17.9 per cent (132 units sold from 112)
Vancouver West .................up 46.3 per cent (98 units sold from 67)

Apartments:
North Vancouver ...............up 29.2 per cent (84 units sold from 65)

Real Estate based Securities Warning

Mon, 27 Apr 2009 12:39:09 GMT

Both the BC and Alberta securities commissions have issued warnings to investors about investing in unregulated real estate-based securities. Because these investment vehicles are not traded on any exchanges, they are not subject to disclosure regulations. Individuals considering investing in these types of real estate-based securities are urged to do their homework before investing. Here is a link to a Business In Vancouver article discussing this issue:

http://www.bivinteractive.com/index.php?option=com_content&task=view&id=1575&Itemid=32

The Death of Rent Control in British Columbia?

Fri, 24 Apr 2009 13:14:36 GMT

Here is an article from todays Vancouver Sun that should be of interest to property investors, landlords, and renters alike. It discusses an apartment complex in Vancouver's West End neighbourhood that has recently increased rents by 38 percent. Annual rent increases in British Columbia are limited by the Residential Tenancy Board to 3.7%. Read on to find out how this whopping rent increase was allowed...

West End rental increase becomes election issue

West End NDP candidate Spencer Herbert says a decision by the Residential Tenancy Office to allow an almost 40 per cent rent increase at the Seafield Apartments in the West End signals the end of rent control.

"Rent control is effectively dead in this province," said Herbert, who represented the former Vancouver-Burrard riding before it was redistributed for the election. "And now, thanks to the Liberals, renters have no protection."

Rent control guidelines limit annual rent increases to 3.7 per cent, but a clause in the provincial Residential Tenancy Act allows landlords to apply for higher amounts if they can prove units in neighbouring buildings garner substantially higher rent.

In January, landlords Gordon Nelson Investments notified tenants of the Seafield, located at 1436 Pendrell St., of rent increases up to 73 per cent.

The tenants appealed, and this week the Residential Tenancy Office approved increases of up to 38 per cent. While arbitration decisions don't set legal precedents, they are often used by tenants to support future arguments.

Herbert said the rental legislation must be changed, particularly the geographic profiling clause. "In the case of the Seafield I raised the issue with [Liberal Minister of Housing] Rich Coleman and said the legislation has to be changed," Herbert said. "But he said it's fine. That's why I introduced a private members' bill asking to get rid of this part of the code."

Liberal Vancouver-West-End candidate Laura McDiarmid said while any legislation is open for review, she believes the law worked in favour of the tenants.

"I'm very sympathetic to renters as are all the B.C. Liberals," McDiarmid said. "But from the sounds of it there was a reduction in what the landlords had initially applied for. To me that sounds like a win for these tenants."

McDiarmid said the Liberals have offered incentives to landlords to keep rental units intact.

"We have to look at both sides," she said.

A message posted on a website run by Seafield tenants says they won't comment on the decision because they're seeking legal advice and are considering a judicial review of the decision.

The rent increase will affect nine units out of 14 at the Seafield, which means the rent on seven two-bedroom units will increase from between $1,358 and $1,450 to $1,833 by next year. If the initial application had been approved, the $1,374 rent on a two-bedroom apartment would have increased to $2,255.

The tenants facing the highest rent increase of 38 per cent are 82-year-old Roland McFall and his 93-year-old sister Mary who've lived in the building for 48 years.

According to the 12-page ruling by dispute resolution officer K. Miller, the landlords can raise the rent in three increments, with three months notice in between each increase.

The ruling notes the landlords didn't have to prove rents at the Seafield are significantly lower than "all" comparable apartments, but merely prove there are "some" units with higher rents than the subject units.

Neither the West End Renter's Survey, complied by the tenants, or the Canada Mortgage and Housing Corporation's analysis of the survey, were considered as evidence.

Sandra Thomas, Vancouver Courier
Published: Friday, April 24, 2009

Canada home resale prices drop in March, sales up

Thu, 16 Apr 2009 01:46:31 GMT

Here is a Reuters report on Canadian resale house prices that indicates how the Spring real estate market is unfolding in Greater Vancouver compared with the rest of the country:

Resale house prices in Canada fell 7.7 percent in March from a year earlier, but sales rose from February, the Canadian Real Estate Association said on Wednesday.

The average home price in Canada was C$288,641 ($238,546) in March, down from C$312,852 a year earlier, CREA said.

Home prices were lower in 14 of 25 major markets that the association measures, led by Greater Vancouver. The average price of a home in Greater Vancouver, which had seen a very sharp run-up in prices in the past few years, was C$530,763 in March, down 13.9 percent from a year earlier.

Other Western Canadian cities also felt sharp price pressure, with average home values still down more than 10 percent in Victoria, Calgary and Edmonton.

The biggest increase in home prices was in the Atlantic province of Newfoundland and Labrador, up 24.3 percent from a year earlier to C$198.057.

But the average national price "continues to be skewed downward" because of fewer transactions at the higher end of the spectrum, CREA said.

However, in an encouraging sign that the housing market may be stabilizing, there was a pickup in sales for a second consecutive month.

Nationally, 31,135 homes were sold in March, up 7 percent from February on a seasonally adjusted basis and building on February's 10.3 percent rise from January.

British Columbia posted the largest increase in sales, up 13.6 percent, and Ontario followed with a 10.5 percent rise.

"On the whole, the report does provide some evidence that Canadian housing market activity may have improved modestly in recent months as homebuyers take advantage of the improved buying conditions -- namely, low mortgage rates and more affordable prices," said Millan Mulraine, economics strategist at TD Securities. "This is certainly encouraging."

He also added that the overall housing market would remain "soft" in the months ahead.

While the housing market is showing some signs of life, there is risk that consumer confidence can fall quickly amid a fragile economic environment where job losses have been steep this year.

"Further price declines and low mortgage rates will ultimately help trigger a recovery, but a reversal in the wave of job losses is one major prerequisite still outstanding," noted Robert Kavcic, an economist at BMO Capital Markets.

On a year-over-year basis, sales were down 20 percent in March on a seasonally-adjusted basis. Actual sales fell 13.7 percent, the smallest year-over-year decline in six months.

TORONTO, April 15 (Reuters)

New home prices slide in February

Tue, 14 Apr 2009 19:30:07 GMT

Here is an article that was published in the Financial Post last week that gives some information about Canadian Real Estate housing price trends:

OTTAWA - Canada's new house price index dropped again in February, down 0.7%, compared with a decline of 0.6% one month earlier.

Prices were down 1.8% from a year earlier, the largest year-on-year decrease since 1996.

Between January and February, prices declined 3% in Edmonton, followed by Vancouver (-2.9%), Saskatoon (-2.1%), Victoria (-1.7%) and Calgary (-0.9%). In all these cities, except for Saskatoon, poor market conditions continued to be the main reason for the decreases. In Saskatoon, declines were attributed to lower material and labour costs and competitive market conditions.

In Quebec, new housing prices increased 2.6% from a month earlier.

In Charlottetown, prices increased by 1.2% partly as a result of increased land values in the current market.

Prices also increased from a month earlier in Regina, up 0.9% and in London, Ont., also up 0.9%.

February was the second straight month in which prices declined year-on-year.

Financial Post with files from Reuters Published: Thursday, April 09, 2009