News: Vancouver Real Estate Market

   Following the surprise announcement that Mark Carney will be departing to helm the Bank of England, it was back to business as usual at the Bank of Canada as interest rates were once again held constant at 1 per cent. The statement released this morning in support of the interest rate decision noted that while the global economy appears to have stabilized, it still remains vulnerable to major shocks from the US or Europe. The Canadian economy is growing at a slightly softer pace than...

   Among its many provisions, it makes significant changes to legislation including the Canadian Environmental Assessment Act, the National Energy Board Act, and the Species at Risk Act.

These changes affect the operation of the National Energy Board (NEB), which has potentially serious implications for property owners along pipelines.

This includes the 2,200 property owners along the Trans Mountain Pipeline, owned by Kinder Morgan, which runs from the Alberta tar sands and...

   TORONTO - One of the country's big banking groups has issued a report saying that a cooling in Canadian house prices may not be all bad news.

The CIBC World Markets says the slowing of Canadian home sales will "take a bite" out of economic growth but adds there could be "winners as well as losers across the economy."

For more information click here.

MISSISSAUGA, Ont. - The latest real estate outlook from ReMax says Canadian home sales increased or held steady in much of the country this year despite tighter financing and economic uncertainty abroad.

ReMax says the trend is expected to continue, with home-buying activity propped-up by low interest rates and an improved economic picture in 2013.

The report found that the number of homes sold is expected to match or exceed 2011 levels, led by strong activity in Calgary and other western...

   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...

About a third of Baby Boomers plan to sell their home to fund their retirement, according to a study that questions whether buyers will dry up as that massive segment of the population downsizes.

Bank of Montreal is warning Boomers not to count on that nest egg, while other observers suggest that even if prices don’t plunge, big increases in property values are a thing of the past.

“They shouldn’t be relying on their homes because there are risks,” says Marlena...

While many concerns stem from the Canadian housing market, it will not see an American-style crash, a new Canadian Imperial Bank of Commerce report says.

House prices will likely fall north of the border in the next year or two, but a number of factors are likely to mitigate the impact on borrowers and the broader economy here, it suggests. It forecasts that the Canadian market will likely go through a soft landing, which is exactly what policy makers in Ottawa are hoping.

Factors that...

   BCREA 2012 Fourth Quarter Housing Forecast

Vancouver, BC – October 26, 2012. The British Columbia Real Estate Association (BCREA) released its 2012 Fourth Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 9.8 per cent to 69,200 units this year, before increasing 8.3 per cent to 74,920 units in 2013. The fifteen-year average is 79,000 unit sales, while a record 106,300 MLS® residential sales were...

A laneway house (also known as a coach house or carriage house) is a detached dwelling located typically in the area where the garage would be on a single-family lot. It faces the lane, while maintaining the backyard open space. Alternatively on a corner lot it would face the side street. At least one parking space is needed for each laneway home. Most laneway houses include a garage.

Laneway houses present an excellent opportunity for homeowners to increase the value of their existing homes by adding...

What is a depreciation report?

A depreciation report is a legislated planning requirement for strata corporations in British Columbia. Depreciation reports are used to establish long term planning for common property and common assets to determine:

1) What assets you own ( an inventory )

2) The asset condition ( evaluation )

3) When things need to be replaced ( the anticipated maintenance, repair and replacement )

4) How much money you currently have ( contingency reserve report )

5) What...

   Vancouver, BC - October 15, 2012. The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through the Multiple Listing Service® (MLS®) in BC declined 28.5 per cent to $2.2 billion in September compared to the same month last year. A total of 4,539 MLS® residential unit sales were recorded over the same period, down 24.3 per cent from September 2011. The average MLS® residential price was $494,213, down 5.6 per cent from a year...

Number of units being built year-to-date more than 10 per cent higher than 2011

Construction is going strong in Metro Vancouver, even though home resale prices are dropping slightly and sales activity is significantly below historical levels.

Metro Vancouver housing starts in were on pace in September to reach 20,000 units by year’s end, mostly driven by multi-family developments, Canada Mortgage and Housing Corporation reported Tuesday.

There were 293 single-detached housing starts...

Canadian House Prices Edge Up in Third Quarter While the Number of Home Sales Fall

First-time buyer activity drops as market adjusts to new mortgage regulations

TORONTO, October 3, 2012 – The Royal LePage House Price Survey released today showed the average price of a home in Canada increased year-over-year between 1.8 and 4.8 per cent in the third quarter of 2012.

Survey findings indicated that the average standard two-storey home in Canada increased 4 per cent year-over-year rising...

Vancouver’s real estate board says there have probably been “some reductions” in prices in some of its hottest markets, acknowledging the country’s most expensive city to buy a home in is now a buyer’s market.

The Real Estate Board of Greater Vancouver maintains that prices remain stable overall in its market. It says its benchmark price index is $606,100, a 0.8% drop from a year ago and a 2.3% decline over the last three months.

But there is no mistaking...

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...

The slumping real estate market is illustrative of the effect it has on the economy as homeowners feel a negative 'wealth effect'

The slump in British Columbia's real estate market serves as a cautionary note for other provinces that are bracing for bumps in economic growth.

When homes slip in price, consumers rein in spending, producing a ripple effect on local merchants and slowing down the broader economy.

Jacques Marcil, senior economist at Toronto-Dominion Bank, points to...

Sagging home sales and flat prices have prompted speculation that the “housing bubble” might be
about to burst — a prospect that immediately catches the attention of British Columbians.

But there is no housing bubble, according to Tsur Somerville, director of the University of B.C.’s Centre
for Urban Economics in the Sauder School of Business.

“You can’t burst a bubble that wasn’t there,” said Somerville. “But you can have prices...

   Canadian job growth bounced back in August as employment expanded by 34,300. Just as last month's over 30,000 job losses were entirely due to part-time employment, this month's gains were the result of those jobs being added back.  Part-time employment grew by 46,700 while, full-time employment fell 12,500. The Canadian unemployment rate held steady at 7.3 per cent

BC employment followed the national trend, adding 14,900 new jobs in August. However, job growth was entirely based...

Metro Vancouver realtors saw their second-slowest August for residential property sales since 1998,
but prices are relatively stable, the region’s main real estate board reported Wednesday.

“We’ve seen a slowdown in the market in terms of the number of transactions, but there’s relative price
stability,” Real Estate Board of Greater Vancouver president Eugen Klein said.

Detached housing prices were relatively flat in August compared with a year ago, while...

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...

The average price of homes sold in B.C. is forecast to fall 7.8 per cent this year, but that doesn’t mean
the price of a typical home will drop, the B.C. Real Estate Association’s chief economist Cameron Muir
said Thursday.

The average Multiple Listings Service price is down and will continue to fall because fewer single-family
homes in tony neighbourhoods are selling, while more less-expensive homes are selling, Muir said,
adding that there has been a noticeable lull in demand...

The average price of homes sold in B.C. is forecast to fall 7.8 per cent this year, but that doesn’t mean
the price of a typical home will drop, the B.C. Real Estate Association’s chief economist Cameron Muir
said Thursday.

The average Multiple Listings Service price is down and will continue to fall because fewer single-family
homes in tony neighbourhoods are selling, while more less-expensive homes are selling, Muir said,
adding that there has been a noticeable lull in demand...

   For the complete news release, including detailed statistics, click: here.

Vancouver, BC – August 28, 2012. The BCREA Commercial Leading Indicator (CLI) continued to trend higher in the second quarter of 2012, rising 0.8 points to 112.6 from a revised level of 111.8 in the first quarter.  On a year-over-year basis, the CLI is now 3.7 per cent above its level in the second quarter of 2011.

"The trend in the CLI continues to signal strong growth in the BC commercial...

RBC Royal Bank raised two of its mortgage rates by one-fifth of a point each on Tuesday, and it’s likely
other lenders will soon follow suit, an economist told The Sun.

Helmut Pastrick, chief economist at Central 1 Credit Union, said bond yields have gone up by about 0.3
per cent in the past four weeks, and that is probably driving the increase.

“Sentiment has improved with respect to Europe and the economic outlook,” Pastrick said. “The
economic news was quite...

Buying a first home is one of life’s most significant purchases, and a new poll shows many first-time homebuyers wish they had done things differently.

More than half of those who were asked said they would make a bigger down payment and that they would buy a home sooner, the 2012 TD Canada Trust First Time Home Buyers Report found.

“The survey results reveal that people generally want the best of both worlds, to be able to buy a home sooner and to have a bigger down payment,...

Metro Vancouver home prices may slip a bit over the next year, but don’t expect them to drop sharply, according to a
report released Wednesday by Central 1 Credit Union.

The report was released on the same day as a Scotiabank report with a more pessimistic outlook for prices, saying the
downside risks to Canada’s housing market are increasing with a correction concentrated in Toronto and Vancouver, and

that prices should fall 10 per cent over the next two or three years.

 ...

   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...

   Property in the Lower Mainland continues to attract investors world-wide. It is therefore important for you (the non-resident) to understand Canada’s tax laws to help avoid mistakes and pitfalls. Here is a brief summary of information, relevant to you the foreign investor:

Resident or non-resident?

Under Canada’s income tax system, whether an individual is a resident or a non-resident can play a role in how much tax you will pay.

• As a resident you must pay Canadian...

Metro Vancouver apartment building sales are on par with last year, although values have soared in the central city,
according to a recently released report.

“They [buyers] are buying tired buildings that haven’t been kept up and then spending a lot of money on renovating
them,” said apartment broker David Goodman, co-owner of HQ Commercial Real Estate Services and author of the
Goodman Report, a Metro Vancouver apartment building market review.

The report concluded...

Canada's Housing Market at a Tipping Point

National price appreciation forecast to soften modestly for the remainder of the year

TORONTO, July 10, 2012 – The Royal LePage House Price Survey and Market Survey Forecast released today showed the average price of a home in Canada increased year-over-year between 3.3 and 5.5 per cent in the second quarter of 2012. By the end of 2012, Royal LePage expects national average prices to be 3.2 per cent higher compared to the same period of 2011, in line...

   The number of residential property sales hit a 10-year low in Greater Vancouver for June, while prices remained relatively stable.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 2,362 in June, a 27.6 per cent decline compared to the 3,262 sales in June 2011 and a 17.2 per cent decline compared to the 2,853 sales in May 2012.

June sales were the lowest total for the month in...

   For the fourth time in the past four years, the Federal Government has announced further action to restrict mortgage credit. The new measures include:

• The maximum amortization on a prime mortgage will be reduced from 30 to 25 years.
• Mortgage insurance will not be provided for properties valued over $1 million.
• Refinancing has been lowered from a maximum of 85% loan-to-value to a maximum of 80% loan-to-value.
• The maximum gross debt service (GDS) and total debt service (TDS) will be limited...

Greater Vancouver Real Estate Market Update June 2012

Vancouver, BC – June 6, 2012. The British Columbia Real Estate Association (BCREA) released its 2012 Second Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to edge down 2.2 per cent to 74,800 units this year, before increasing 4.9 per cent to 78,500 units in 2013. Since 2009, annual home sales in the province have hovered in the 74,000 to 78,000 unit range. A record 106,300 MLS® residential sales were recorded in 2005.

 ...

   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...

Risks associated to buying property in foreclosure. The Vancouver Foreclosure process.

Canadian CPI inflation registered 2.0 per cent (year-over-year) in April, a 0.1 point increase from March inflation of 1.9 per cent. The rise in consumer prices was led by transportation costs, including a 3.3 per cent rise in gasoline prices. In fact, Statistics Canada's gasoline Index reached a 4 year high in April. The Bank of Canada's core inflation measure, which excludes food and energy prices, rose 2.1 per cent in April, up from 1.9 per cent in March. Consumer prices in BC were 1.6 per cent...

   Canadian manufacturing sales increased 1.9 per cent in March, the largest advanced since September 2011. The gain was largely driven by higher sales of petroleum and coal products, though higher sales were reported in 13 of the 21 manufacturing sectors surveyed.

BC manufacturing sales rose 0.4 per cent on a month-over-month basis in March but were 0.4 per cent lower than in March 2011. BC manufacturing sales were lead higher by a rebound in BC’s non-durables goods sector...

   Canadian employment rose by 58,000 jobs in April following a blockbuster March in which employment increased by 82,000. Despite large job gains in the past two months, the national unemployment rate edged up 0.1 points to 7.3 per cent as more Canadian were looking for work.

Employment in British Columbia expanded by 19,700 in April, including 16,700 full-time positions. The BC unemployment rate fell by a surprising 0.8 points to 6.2 per cent. BC employment growth is up 2.1 per...

   Canadian building permits continue to show strength, rising 4.7 per cent month-over-month in March. The gain at the National level was mostly the result of higher institutional and commercial activity in Ontario, which were up 65 per cent and 15 per cent higher respectively.

Construction intentions in BC tumbled 29 per cent in March, though from a very active February that saw over $1 billion in permits. On a year-over-year basis, total building permits were down 13 per cent from...

   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...

Buying your first home is a very exciting yet stressful time. It's one of the most important decisions you'll ever make and one of the main reasons to seek professional advice. The right advisor will help guide you through the buying process and help you lay the foundation for an enjoyable home ownership experience. The sooner you start working with an agent the better. As a buyer there are typically no costs to hire a REALTOR®. Most agents offer a complimentary new home buyer orientation which...

   The Bank of Canada left its overnight rate unchanged at 1 per cent for the 13th consecutive meeting. In the statement accompanying the decision the Bank noted that economic momentum in Canada is slightly firmer than the Bank had forecast in January and that economic headwinds from the US and Europe have abated somewhat. However, the Bank still judges the continued accumulation of debt by Canadian households to be the biggest domestic risk facing the economy. The Bank further noted that...

   For the complete news release, including detailed statistics, click here.

Vancouver, BC – April 13, 2012. The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC declined 26.5 per cent to $3.8 billion in March compared to the same month last year. A total of 6,882 MLS® residential unit sales were recorded over the same period, a decline of 20 per cent. The average MLS®...

VANCOUVER -- Prices of homes in the Greater Vancouver area continue to climb while home sales have dropped to some of the lowest levels seen in a decade, the Real Estate Board of Greater Vancouver said Tuesday.

Sales of residential properties were down 29.6 per cent in March compared to a year earlier, the second-slowest March since 2002. Yet the price for a benchmark or typical home went up 5.3 per cent to $679,000 from last year.

For more information click here.

   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...

   The Canadian economy got off to a slow start to begin 2012, failing to build on momentum from December. January Gross Domestic Product grew just 0.1 per cent, after posting robust 0.5 per cent growth in the final month 2011. Economic growth in January was given a boost by manufacturing output which rose for the fifth consecutive month, but was dragged lower by declining oil and gas extraction. On a year-over-year basis, real GDP growth was 1.7 per cent in January.

The Canadian...