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

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

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

More information can be found at:

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

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

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

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

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

Average performance predicted for housing market in 2012

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

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

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

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

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

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

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

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

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

WHAT IS THE BC NEW HOUSING REBATE?

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

WHAT IS THE FEDERAL GST/HST NEW HOUSING REBATE?

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

SO HOW MUCH WILL HST COST ME AS A BUYER?

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

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

SHELTER TAX CALCULATOR FOR BC

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

Download the complete REBGV October 2011 Stats Package >>

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

The panel of experts featured:

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

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

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

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

On the demand side:

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

On the supply side:

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

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

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

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

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

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

A few points he made that stuck with me were:

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

Download the complete REBGV May 2011 Stats Package >>

Download the complete REBGV April 2011 Stats Package >>

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

RESIDENTIAL PROPERTY SALES – UP 30% from last year

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

HOUSING PRICE INDEX – UP 5% from last year

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

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

NEW LISTINGS – DOWN 3% from last year

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

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

SALES OF DETACHED PROPERTIES – UP 34% from last year

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

SALES OF APARTMENT PROPERTIES – UP 30% from last year

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

SALES OF ATTACHED PROPERTIES – UP 21% from last year

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

Download the complete REBGV March 2011 Stats Package >>
 

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

RESIDENTIAL PROPERTY SALES – UP 25% from last year

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

HOUSING PRICE INDEX – UP 3% from last year

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

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

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

NEW LISTINGS – UP 24% from last year

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

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

SALES OF DETACHED PROPERTIES – UP 43% from last year

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

SALES OF APARTMENT PROPERTIES – UP 12% from last year

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

SALES OF ATTACHED PROPERTIES – UP 18% from last year

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

Download the complete REBGV February 2011 Stats Package >>
 

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

Read full article here>>

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

LOCATION | Kingsway and Willingdon, Burnaby

PROJECT SIZE | 45 storeys, 202 Units

DEVELOPER | Bosa Properties.

ARCHITECT | Chris Dikeakos Architects Inc.

OCCUPANCY | Estimated 2014

NOTES ABOUT SOVEREIGN |

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

For more information and pricing for Sovereign click here>>

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

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

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

2. How is the new HBTC calculated?

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

3. Am I eligible for the HBTC?

You will qualify for the HBTC if:

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

4. How will I claim the HBTC?

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

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

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

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

 

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

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

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

RESIDENTIAL PROPERTY SALES – DOWN 5% from last year

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

HOUSING PRICE INDEX – UP 3% from last year

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

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

NEW LISTINGS – DOWN 7% from last year

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

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

SALES OF DETACHED PROPERTIES – UP 13% from last year

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

SALES OF APARTMENT PROPERTIES – DOWN 21% from last year

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

SALES OF ATTACHED PROPERTIES – DOWN 4% from last year

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

Download the complete REBGV January 2011 Stats Package >>
 

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

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

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

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

WHAT IS THE BC NEW HOUSING REBATE?

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

WHAT IS THE FEDERAL GST/HST NEW HOUSING REBATE?

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

SO HOW MUCH WILL HST COST ME AS A BUYER?

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

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

SHELTER TAX CALCULATOR FOR BC

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Download the complete REBGV October 2010 Stats Package >>

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Download the complete REBGV September 2010 Stats Package >>
 

 

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

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

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

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

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

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

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

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

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

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

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

Read the full article here >>
 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Download the complete REBGV August 2010 Stats Package >>

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

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

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

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

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

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

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

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

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

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

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

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

Download the complete REBGV July 2010 Stats Package >>
 

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

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

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

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

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

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

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

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

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

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

RESIDENTIAL PROPERTY SALES - DOWN 30.2% from last year

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

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

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

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

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

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

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

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

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

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

LET'S START WITH THE BASICS:

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

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

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

HOW WILL HST IMPACT THE HOME BUYER?

COST OF RESALE HOUSING 

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

COST OF NEWLY CONSTRUCTED HOUSING 

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

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

WHAT IS THE BC NEW HOUSING REBATE?

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

The government claims that:

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

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

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

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

COST OF BUYING AND SELLING

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

COST OF OWNING A HOME

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• 10.1% decline compared with April 2010

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

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

HOUSING PRICE INDEX - UP 16.7% from last year

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What about prices?

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

Read the full CMHC Spring 2010 Housing Market Outlook>>

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

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

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

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

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

PROJECT SIZE |

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

UNIT SIZES | 

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

PRICES |

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

Read more about 2300 Kingsway >>

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

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

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

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

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

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

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

PROJECT SIZE | 23 storeys, 187 Units

UNIT SIZES |

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

PRICES |

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

Read more about The Rolston >>

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

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

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

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

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

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

• 9.2% increase compared to March 2010

HOUSING PRICE INDEX - UP 18.9% from last year

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

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

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

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

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

Download the complete REBGV April 2010 Stats Package >>
 

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

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

QUALIFICATION RATE

What's changing?

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

Who does it affect?

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

What does this mean?

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

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

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

REFINANCING

What's changing?

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

Who does it affect?

Homeowners looking to refinance their homes.

What does this mean?

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

RENTAL PROPERTY FINANCING

What's changing?

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

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

A) For non-owner occupied rental properties:

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

B) For owner occupied rental properties

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

Who does it affect?

Investors purchasing residential income producing properties.

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

What does this mean?

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