Posted on
January 15, 2021
by
fabrizio zenone
Millennials are looking for breathing room.
The Toronto metropolitan area saw a net loss of 50,375 residents to other parts of Ontario between July 2019 and July 2020, while the Montreal area lost a net 24,880 people to other parts of Quebec. In Vancouver, 12,189 more residents moved out to other parts of B.C. than moved in, among the highest numbers ever recorded.
The COVID-19 pandemic unfolded about mid-way through this period.
Thanks to immigration, the largest metro areas still recorded overall population growth during this period, but they grew far less quickly than many smaller nearby places.
Vancouver’s 1.1-per-cent population growth was outdone by suburban New Westminster (2.8 per cent), while Montreal’s 0.7 per cent growth paled in comparison to nearby Mirabel, growing 3.6 per cent.
It’s not surprising that the pandemic accelerated the exodus from big cities, but the trend began well before that, said Frank Clayton, an urban and real estate economist at Ryerson University’s Centre for Urban Research and Land Development in Toronto.
“There’s been an outflow of Toronto for years as people move out for something bigger,” he told HuffPost Canada.
With the pandemic, “people accelerated the decision a bit,” he added.
Millennials are settling down and having children, and they are following the Baby Boomers in an exodus for more affordable and larger houses in suburbia, Clayton said.
“Millennials’ behaviour is not exactly but pretty much like Boomers, except they’re doing it 10 years later (in life),” Clayton said.
Hence the booming populations and housing markets in places like Kitchener-Cambridge-Waterloo and Guelph, near Toronto, and Abbotsford and Kelowna, not far from Vancouver.
While rental rates are tumbling in the large cities, many of these smaller centres are seeing soaring housing costs. Asking rates for one-bedroom apartments in Toronto dropped 20.9 per cent over the past year, according to rental site Padmapper, but rose by 8.5 per cent in both Hamilton, west of Toronto, and Oshawa, east of Toronto.
One-bedroom rents are down 9.3 per cent in Vancouver, but up a staggering 26.9 per cent in Abbotsford, and 8.9 per cent in Kelowna.
“Demand for housing from the prime home buying group is for lower density housing like single-detached or at least townhouses,” Clayton said. “We’re not increasing the supply of that in Toronto.”
Satellite offices?
The work-from-home phenomenon also has many businesses reconsidering the high price of downtown real estate. The office vacancy in Canada’s downtown cores has shot up by some 40 per cent over the past year, to 13 per cent, the highest level in 16 years, according to data from commercial real estate agency CBRE.
Clayton believes some of these businesses leaving the core may choose to open small “satellite offices” outside the major urban areas, that would allow employees to avoid long commutes into downtown.
For instance, someone in southwest Ontario, in Kitchener-Cambridge-Waterloo or London, might drive to a satellite office in Milton or Mississauga a few times a week, avoiding the drive into Toronto.
But all this doesn’t necessarily mean the fight against urban sprawl is lost. There are ways to develop growing cities in a more sustainable way, Clayton argues, including a focus on the “missing middle” of housing ― everything in between sprawling suburban homes and tiny condos in high-rise towers.
In that, Clayton has allies in the real estate industry, where many have called for a focus on development of larger apartment units, townhouses and stacked townhomes, as a way of reducing the demand for detached homes.
But with Canada likely to return to high immigration levels once the pandemic is over, cities will have to keep finding space for development, Clayton said.
“You’ve got to have a combination of growing up and growing out. The planners think they can just limit it to growing up. That’s not going to happen.”
Posted on
November 2, 2020
by
fabrizio zenone
Home sale and listing resurgence extends into the fall
Home sale and new listing activity remained at near record levels across Metro Vancouver in October.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,687 in October 2020, a 29 per cent increase from the 2,858 sales recorded in October 2019, and a 1.2 per cent increase from the 3,643 homes sold in September 2020.
Last month’s sales were 34.7 per cent above the 10-year October sales average and stands as the second-highest total on record for the month.
“Home has been a focus for residents during the pandemic. With more days and evenings spent at home this year, people are re-thinking their housing situation," Colette Gerber, REBGV Chair said. “Throughout this period, REALTORS® have been working to understand and adapt to the latest safety protocols so that they can continue to help the public meet their housing needs in a safe and responsible way.”
There were 5,571 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2020. This represents a 36.7 per cent increase compared to the 4,074 homes listed in October 2019 and a 13 per cent decrease compared to September 2020 when 6,402 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,416, a 1.5 per cent increase compared to October 2019 (12,236) and a 5.2 per cent decrease compared to September 2020 (13,096).
“With demand on the rise, homes priced right for today’s market are receiving attention and, at times, garnering multiple offers," Gerber said. "To understand the market conditions in your neighbourhood and property type of choice, work with your local REALTOR® to assess the latest MLS® housing market information."
For all property types, the sales-to-active listings ratio for October 2020 is 29.7 per cent. By property type, the ratio is 30.9 per cent for detached homes, 43.5 per cent for townhomes, and 24.9 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,045,100. This represents a six per cent increase over October 2019 and a 0.4 per cent increase compared to September 2020.
Sales of detached homes in October 2020 reached 1,335, a 42.3 per cent increase from the 938 detached sales recorded in October 2019. The benchmark price for a detached home is $1,523,800. This represents an 8.5 per cent increase from October 2019 and a 1.1 per cent increase compared to September 2020.
Sales of apartment homes reached 1,570 in October 2020, a 13.4 per cent increase compared to the 1,384 sales in October 2019. The benchmark price of an apartment property is $683,500. This represents a 4.4 per cent increase from October 2019 and is unchanged compared to September 2020.
Attached home sales in October 2020 totalled 782, a 45.9 per cent increase compared to the 536 sales in October 2019. The benchmark price of an attached home is $813,000. This represents a 5.4 per cent increase from October 2019 and a 0.4 per cent increase compared to September 2020.
Posted on
November 2, 2020
by
fabrizio zenone
Previous to this, the bank’s economics section on September 30 predicted that condo prices could “weaken in larger markets next year”.
Another thing is happening as well with the condo market in Canada.
In its latest housing report, RBC Economics noted that the real-estate market is awashed with condo supply.
According to economist Robert Hogue, "condo investors are looking to sell”.
“As rents soften and vacancies rise, condo listings are spiking in Toronto, Montreal and Vancouver—albeit from low levels,” Hogue reported on Thursday (October 29).
In the City of Toronto, condo listings in September 2020 increased 133.9 percent compared to supply in the same month last year.
For the rest of the Greater Toronto area, condo listings last month posted year-over-year growth of 81.5 percent.
In the island of Montreal, listings rose 41.4 percent in September compared to the same month in 2019.
However, for the rest of the Greater Montreal area, listings declined 32.8 percent year-over-year.
In Greater Vancouver, listings of condo properties rose 20.9 percent in September 2020 compared to the same month last year.
In contrast, listings for detached homes in all Toronto, Montreal, and Vancouver metropolitan regions decreased year-over-year in September.
“New, stricter regulations in Toronto are adding to the impulse to sell – at a time when new condo completions are bringing more units to the Toronto and Vancouver markets,” Hogue noted in his October 29 report.
Hogue’s report covered in broad strokes how the COVID-19 pandemic is affecting the Canadian housing market.
“Rural and suburban areas that once lagged desirable city addresses are now roaring hot as homebuyers wearied by lockdowns seek bigger yards and larger living spaces,” Hogue wrote.
Meanwhile, “Tight downtown condo markets that previously commanded expensive rents are now thick with supply.”
Hogue also stated that “rent is now declining in Toronto, Montreal and Vancouver, especially in higher density, downtown locations”.
“Underlying the shift,” according to the bank economist is a “surge in rental supply as the short-term rental business dries up and new purpose-built rental and condo units are completed”.
As well, “Big-city living has lost some of its luster with social distancing measures severely restricting cultural life and socializing opportunities.”
“Meantime, affordability issues are driving many Canadians further afield into smaller towns and cottage country, where larger living spaces are available,” Hogue wrote.
Posted on
September 25, 2020
by
fabrizio zenone
The coronavirus pandemic has swept through the country, from the east coast to west coast. As a result, the real estate market has seen significant lows but has also showed encouraging signs of recovery following improving market conditions.
Overall, the Canadian housing market outlook is experiencing promising activity due to pent-up demand and low inventory in the market. These trends are evident in the Vancouver real estate market as well. The city, which was experiencing a tremendous amount of activity at the years start, is now ramping up once again.
Here’s a look at the road to recovery for the Vancouver real estate market:
The Vancouver Real Estate Market: Early in the Pandemic
The state of the Vancouver real estate market early in the pandemic, like other markets in the county, was troubling. During the months of March and April, Vancouver was experiencing plummeting home sales. This trend continued into May, where home sales were 54.4 per cent lower than the 10-year sales average for that month.
It was evident that as a result of the coronavirus pandemic, individuals had put their homebuying plans on hold. The typically busy spring homebuying season was nowhere in sight. For those willing to (or obligated to) participate in the market, realtors were able to guide them safely through the process, embracing tools such as virtual tours and e-signatures.
Yet, by late Spring and early Summer, activity had bounced back in this city. Buyers were eager to get back into the market after being cooped up in their homes.
In June, Vancouver experienced year over year highs for home sales. The Real Estate Board of Greater Vancouver (REBGV) noted that listing activity outpaced historical averages.
This positive market activity continued and by August 2020 there were 5,813 new listed detached, attached and apartment properties for sale in Metro Vancouver. This represents a 55.1 per cent increase compared to the 3,747 homes listed in August 2019. Meanwhile, in August home sales across Vancouver showed a 36.6 per cent increase from 2019.
Vancouver Condo Market
During the early months of the pandemic Vancouver condo prices expectedly dipped. Yet, by June condo listings began to climb which pointed to renewed confidence from sellers. There was also matched demand from homebuyers who were eager to re-renter the market to purchase a condo in the Vancouver market.
Condo sales were experiencing year over year highs during these summer months. Throughout July and August, condo prices were also on an upward trend with year over year highs. In August, the benchmark price of an apartment property was a whopping $685,800.
Vancouver Condo Market
Single-family homes in Vancouver were experiencing greater jumps than condos or townhomes. Due to the coronavirus, real estate trends are notably shifting; after being confined to their homes for months, the preference for more spacious homes or lots is growing.
In August, the median price of a detached home was $1,491,300. Meanwhile, the benchmark price of an attached home is $806,400. Both are year-over-year highs, demonstrating that there continues to be demand in this segment of the real estate market despite uncertainties.
Market Conditions
There are a variety of factors that have helped boost recovery of the Vancouver real estate market.
Firstly, the Bank of Canada dropped the benchmark interest rate to 0.25% in order to stimulate the economy. This is the lowest the rate has ever been and may have ignited the desire for Canadians to purchase homes despite challenges caused by the coronavirus outbreak.
This lowered interest rate can allow people to secure larger mortgages at a lower cost, ultimately allowing them to widen their home search and access more of the amenities they may prefer in a Vancouver home.
Another factor contributing to the market upswing is the increased confidence in public health measures, causing more people to venture outside of their homes. As the province entered stage three this summer, Vancouver businesses that had previously laid off employees or reduced salaries due to a slowdown in business, started hiring again and increasing salaries to meet demand. This economic resurgence has renewed people’s financial power, giving them the confidence to enter the real estate market and make a home purchase.
Lastly, limited supply in the Vancouver market is also contributing to increased competition in the market. With pent-up demand, many are eager to secure a home, igniting bidding wars across the city.
Uncertainties
Yet, uncertainties related to the coronavirus means the real estate market could change once again in the fall. With flu season returning, fears of a second wave of the virus could be heightened, leading to a decrease in activity. This makes it challenging to predict what will happen to the market in the fall season.
The Vancouver real estate market is a popular market to purchase a home in. Even though the coronavirus affected this urban market early on, with increased confidence and improving market conditions, Vancouver is well on the road to recovery.
Posted on
July 12, 2020
by
fabrizio zenone
The B.C. government says it’s taking the first steps to address concerns about sky-high costs and the availability of insurance for condos that have seen premiums rise by as much as 50 per cent.
Housing Minister Selina Robinson introduced legislation Tuesday that proposes to amend the Strata Property and the Financial Institutions acts to bring more transparency to the insurance market and give property owners more tools to deal with the challenges they face.
“This is an issue that has been growing for a number of months and it’s one that is being felt in communities across the province, and in fact around the world,” Robinson said at a news conference. “We do absolutely understand the difficulty that people living in stratas are facing when dealing with significant increases in insurance costs or in some cases not being able to find insurance at all.”
A government-commissioned report released last week by the B.C. Financial Services Authority said the insurance market isn’t healthy for about 1.5 million people living in condos, townhouses and other similar properties in the province.
The interim report said B.C.’s earthquake risk and insurance losses over the past three years from numerous minor claims due to poor building maintenance are among the reasons for the higher costs. It also found strata insurance has been used to fill gaps left by new home warranties and maintenance programs for older buildings.
Authority vice-president Frank Chong said last week the independent regulatory agency didn’t see immediate relief for the problems facing condo councils.
Robinson said the legislation would bring balance back to the insurance market by, among other things, ending the practice of insurance brokers paying referral fees to property managers, setting clear guidelines on insurance requirements for condo councils and strengthening depreciation reporting requirements.
Tony Gioventu, executive director of the Condominium Homeowners Association, said he supported the proposed changes, saying they will result in more competition and lower fees.
“The disclosure of fees and commissions and the end of undisclosed commissions to third-party brokerages will certainly affect the outcomes,” said Gioventu, who participated in the government’s news conference. “The transparency of fees and commissions that are collected or earned by the insurance brokerages will also provide a high level of transparency on the industry, which will enable competition, which will be beneficial to the public.”
Finance Minister Carole James said the insurance industry is a private marketplace, but ending referral charges and disclosing commissions would increase competition and could lead to lower rates.
“We have heard that commissions could have been up to, it’s been reported, up to 20 per cent of the cost,” said James. “That’s a very large amount that is going into commission fees, so by disclosing that we believe that will help create some competition and help address some of the challenges.”
In a statement, the executive director of the Insurance Brokers Association of B.C. said the changes “will be critical foundation pieces” in finding a solution.
“These are the first steps necessary to stabilize the strata insurance market in the province,” said Chuck Byrne.
Opposition housing critic Todd Stone called the government’s legislation overdue, but criticized it for failing to provide relief for thousands of people hit hard by rising strata insurance costs.
“Now, the government has put forward a bill that provides zero financial relief to condo and townhome owners who desperately need it,” he said in a statement. “We’ve heard horror stories of British Columbians facing significant financial stress and anxiety as a result of being hit with huge increases in their monthly strata fees and one-time special assessments in the thousands of dollars, and yet the government’s bill does nothing to keep money in their pockets.”
The Financial Services Authority is meeting with those affected by the higher premiums, including condo owners and insurance industry officials, throughout the summer to prepare a final report to submit to the government this fall.
Posted on
February 13, 2020
by
Fabrizio Zenone
“Over the past 10 years, Vancouver has placed a strong emphasis on development that supports walkability. Many of the new developments are focused on areas that are close to transit—specifically our monorail system."
 Downtown Vancouver Waterfront, and Lifestyle on June 25 , 2011 in Vancouver has prominent buildings in a variety of styles by many famous architects. / Shutterstock
While Vancouver was recently ranked the most congested city in Canada, a new ranking finds that the coastal city is quite comfortable on foot.
According to a new ranking from Redfin, a technology-powered real estate brokerage, Vancouver is the most walkable city in Canada.
The ranking is based off of data from Walk Score®, a Redfin company that rates the walkability of cities, neighborhoods and addresses. Cities where daily errands do not require a car score 90 points and above, a score of 70 to 89 points means most errands can be accomplished on foot and a score of 50 to 69 indicates that some errands can be completed on foot.
Vancouver was given a walk score of 80, or very walkable, with report authors noting that the city has, "a lively downtown, terrific neighbourhoods, easily accessible natural playgrounds all year round, and a thriving economy."
In Vancouver, however, well-built properties in walkable areas often cost a pretty penny.
“Over the past 10 years, Vancouver has placed a strong emphasis on development that supports walkability. Many of the new developments are focused on areas that are close to transit—specifically our monorail system,” said Brooks Findlay, Redfin Vancouver market manager.
“The city itself has also been very focused on building new walking and bike paths, allowing for a green commute and discouraging single-driver vehicles. Many young professionals in Vancouver don’t even consider owning a car. Developers have created mini villages in high-traffic areas, meaning you don’t have to travel more than five or six blocks to get anything you need.”
Toronto, with a Walk Score of 61, also made it into the top three.
“A lot of Toronto is connected underground, so when it gets cold in the winter, there are still ways to get around. Then there’s the boardwalk, which allows people to walk across much of the city right on the waterfront,” Redfin Toronto market manager Blair Anderson said.
“One thing people don’t always realize about Toronto is that there are lots of nature walks and trails right in the city. If it was just a concrete jungle, people wouldn’t be so inclined to walk places, but since it’s so beautiful, walking is appealing. Plus, city traffic is less than desirable these days, so being able to get around on foot is very advantageous.”
Posted on
February 4, 2020
by
Fabrizio Zenone
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Home sale and price activity remained steady in Metro Vancouver to start 2020 while home listing activity declined in January.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,571 in January 2020, a 42.4 per cent increase from the 1,103 sales recorded in January 2019, and a 22.1 per cent decrease from the 2,016 homes sold in December 2019.
Last month’s sales were 7.3 per cent below the 10-year January sales average.
“We’ve begun 2020 with steady home buyer demand that tracks close to the region’s long-term average,” Ashley Smith, REBGV president said. “Looking at supply, we’re seeing fewer homes listed for sale than is typical for this time of year. As we approach the traditionally more active spring market, we’ll keep a close eye on supply to see if the number of homes being listed is keeping pace with demand.”
There were 3,872 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2020. This represents a 20.1 per cent decrease compared to the 4,848 homes listed in January 2019 and a 143.8 per cent increase compared to December 2019 when 1,588 homes were listed.
Last month’s new listings were 17.4 per cent below January’s 10-year average.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,617, a 20.3 per cent decrease compared to January 2019 (10,808) and a 0.2 per cent increase compared to December 2019 (8,603), and is 13.7 per cent below the 10-year January average.
For all property types, the sales-to-active listings ratio for January 2020 is 18.2 per cent. By property type, the ratio is 11.6 per cent for detached homes, 22.6 per cent for townhomes, and 23.9 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,008,700. This represents a 1.2 per cent decrease over January 2019, a 1.4 per cent increase over the past six months, and a 0.8 per cent increase compared to December 2019.
Sales of detached homes in January 2020 reached 439, a 29.5 per cent increase from the 339 detached sales recorded in January 2019. The benchmark price for detached properties is $1,431,200. This represents a 1.7 per cent decrease from January 2019, a one per cent increase over the past six months, and a 0.5 per cent increase compared to December 2019.
Sales of apartment homes reached 814 in January 2020, a 45.6 per cent increase compared to the 559 sales in January 2019. The benchmark price of an apartment property is $663,200. This represents a one per cent decrease from January 2019, a 1.5 per cent increase over the past six months, and a one per cent increase compared to December 2019.
Attached home sales in January 2020 totalled 318, a 55.1 per cent increase compared to the 205 sales in January 2019. The benchmark price of an attached unit is $782,500. This represents a 0.7 per cent decrease from January 2019, a 1.6 per cent increase over the past six months, and a 0.5 per cent increase compared to December 2019.
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Home sale and price activity remained steady in Metro Vancouver to start 2020 while home listing activity declined in January.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,571 in January 2020, a 42.4 per cent increase from the 1,103 sales recorded in January 2019, and a 22.1 per cent decrease from the 2,016 homes sold in December 2019.
Last month’s sales were 7.3 per cent below the 10-year January sales average.
“We’ve begun 2020 with steady home buyer demand that tracks close to the region’s long-term average,” Ashley Smith, REBGV president said. “Looking at supply, we’re seeing fewer homes listed for sale than is typical for this time of year. As we approach the traditionally more active spring market, we’ll keep a close eye on supply to see if the number of homes being listed is keeping pace with demand.”
There were 3,872 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2020. This represents a 20.1 per cent decrease compared to the 4,848 homes listed in January 2019 and a 143.8 per cent increase compared to December 2019 when 1,588 homes were listed.
Last month’s new listings were 17.4 per cent below January’s 10-year average.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,617, a 20.3 per cent decrease compared to January 2019 (10,808) and a 0.2 per cent increase compared to December 2019 (8,603), and is 13.7 per cent below the 10-year January average.
For all property types, the sales-to-active listings ratio for January 2020 is 18.2 per cent. By property type, the ratio is 11.6 per cent for detached homes, 22.6 per cent for townhomes, and 23.9 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,008,700. This represents a 1.2 per cent decrease over January 2019, a 1.4 per cent increase over the past six months, and a 0.8 per cent increase compared to December 2019.
Sales of detached homes in January 2020 reached 439, a 29.5 per cent increase from the 339 detached sales recorded in January 2019. The benchmark price for detached properties is $1,431,200. This represents a 1.7 per cent decrease from January 2019, a one per cent increase over the past six months, and a 0.5 per cent increase compared to December 2019.
Sales of apartment homes reached 814 in January 2020, a 45.6 per cent increase compared to the 559 sales in January 2019. The benchmark price of an apartment property is $663,200. This represents a one per cent decrease from January 2019, a 1.5 per cent increase over the past six months, and a one per cent increase compared to December 2019.
Attached home sales in January 2020 totalled 318, a 55.1 per cent increase compared to the 205 sales in January 2019. The benchmark price of an attached unit is $782,500. This represents a 0.7 per cent decrease from January 2019, a 1.6 per cent increase over the past six months, and a 0.5 per cent increase compared to December 2019.
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Home sale and price activity remained steady in Metro Vancouver to start 2020 while home listing activity declined in January.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,571 in January 2020, a 42.4 per cent increase from the 1,103 sales recorded in January 2019, and a 22.1 per cent decrease from the 2,016 homes sold in December 2019.
Last month’s sales were 7.3 per cent below the 10-year January sales average.
“We’ve begun 2020 with steady home buyer demand that tracks close to the region’s long-term average,” Ashley Smith, REBGV president said. “Looking at supply, we’re seeing fewer homes listed for sale than is typical for this time of year. As we approach the traditionally more active spring market, we’ll keep a close eye on supply to see if the number of homes being listed is keeping pace with demand.”
There were 3,872 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2020. This represents a 20.1 per cent decrease compared to the 4,848 homes listed in January 2019 and a 143.8 per cent increase compared to December 2019 when 1,588 homes were listed.
Last month’s new listings were 17.4 per cent below January’s 10-year average.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,617, a 20.3 per cent decrease compared to January 2019 (10,808) and a 0.2 per cent increase compared to December 2019 (8,603), and is 13.7 per cent below the 10-year January average.
For all property types, the sales-to-active listings ratio for January 2020 is 18.2 per cent. By property type, the ratio is 11.6 per cent for detached homes, 22.6 per cent for townhomes, and 23.9 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,008,700. This represents a 1.2 per cent decrease over January 2019, a 1.4 per cent increase over the past six months, and a 0.8 per cent increase compared to December 2019.
Sales of detached homes in January 2020 reached 439, a 29.5 per cent increase from the 339 detached sales recorded in January 2019. The benchmark price for detached properties is $1,431,200. This represents a 1.7 per cent decrease from January 2019, a one per cent increase over the past six months, and a 0.5 per cent increase compared to December 2019.
Sales of apartment homes reached 814 in January 2020, a 45.6 per cent increase compared to the 559 sales in January 2019. The benchmark price of an apartment property is $663,200. This represents a one per cent decrease from January 2019, a 1.5 per cent increase over the past six months, and a one per cent increase compared to December 2019.
Attached home sales in January 2020 totalled 318, a 55.1 per cent increase compared to the 205 sales in January 2019. The benchmark price of an attached unit is $782,500. This represents a 0.7 per cent decrease from January 2019, a 1.6 per cent increase over the past six months, and a 0.5 per cent increase compared to December 2019.
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Posted on
January 29, 2020
by
Fabrizio Zenone
Vote of confidence
Year-end housing data from Canada Mortgage and Housing Corp. (CMHC) earlier this month pointed to record housing starts of 28,141 units for Metro Vancouver in 2019. This was up 20% from a year earlier.
The activity was in sharp contrast to land sales in the region, which fell sharply.
Data from the Real Estate Board of Greater Vancouver indicated a 55% drop in the number of land sales through the third quarter versus a year earlier. The value of those sales dropped 64% to just $2.2 billion.
But there are signs of life in the market as 2020 gets underway.
Grosvenor Americas recently purchased a 4.8-acre parcel, currently home to a car dealership, for $167 million, completing the assembly of a 7.9-acre development site in the Brentwood area of Burnaby.
“This is a very sizable one, both in terms of price and in terms of size,” said Bob Levine, a principal in the Vancouver office of brokerage Avison Young.
More recently, brokers at Avison Young handled Bene Development Ltd.’s sale of a 3.4-acre mixed-use development site at 6851-6871 Elmbridge Way to Landa Global Properties Ltd. for $60 million.
“People very much believe in the long-term viability of the market,” Levine said. “The development community is certainly looking towards the future in terms of new potential developments in and around Greater Vancouver.”
Shift to rental
Situated opposite Brentwood SkyTrain station on Lougheed Highway between Alpha and Beta streets, the land assembly Grosvenor Americas recently completed is slated for a mixed-use development described in marketing materials as “a carefully curated mix of market condominiums, market rental homes, non-market rental homes and a variety of retail and office space.” The commercial space will total about 500,000 feet and could include a hotel.
But according to Mike Ward, senior vice-president and general manager for Grosvenor Americas, rental units will account for 60% of the residential space, or more than 1,200 units. This exceeds the city’s requirement of 20% and reflects a marked shift in the region towards rental units.
According to figures from CMHC, 24% of all housing starts in the region last year were rental. The previous year, the proportion was an all-time high of 27%. Since 2013, market and non-market rentals have consistently been 17% of starts or greater. The average for the period has been 21%.
“There’s going to be a need for a lot more residential accommodation, whether it’s rental or condo,” said Avison Young’s Levine.
But the chance of significant additions to the rental stock in Vancouver itself is slim because of the cost of land. Instead, developers are having to look outside the city, where lower costs and policies designed to encourage density on redevelopment sites are helping make the numbers work.
“The increased density that’s allowed reduces land costs per unit, and it allows you to give serious consideration to building rental,” Levine explained.
Ward credited the new housing policy Burnaby adopted last May with giving legs to its plans.
“[It] encourages rental housing, and on this site in particular, we’ve got unique zoning,” he said, noting that it’s a commercial zoning that “also allows market rental-residential.”
In short, the zoning supports a mix of uses that allows Grosvenor to make economic sense of a project that will meet the city’s requirements as well as its own desire for an investment property generating long-term income.
“There seems to have been a shift in the market where cities are encouraging rental density by providing and allowing more density on sites … and making it feasible,” he said.
Posted on
January 29, 2020
by
Fabrizio Zenone
Some of these projects are approved, some are under construction and some are proposed
Vancouver House, Westbank’s 52-storey luxury residential tower, designed by Danish architect Bjarke Ingels of the firm BIG, is largely finished at the north end of Granville Bridge. The first phase of residential occupancy is complete.
Aside from this high-profile building, numerous other architecturally interesting developments are proposed or coming to Vancouver. This isn’t an exhaustive look at upcoming projects but provides a peek at some of the buildings that will help shape the look and feel of the city in the future.
THE BUTTERFLY
Type: 57-storey, 331-unit luxury condo tower (556 feet).
Location: 969 Burrard St.
The building: It’s being built behind First Baptist Church. The sculpted facade features high-performance curved double glazing with high-quality insulated precast white panels. The building includes “sky gardens” in open-air breezeways on each level, and tree planters on every third floor.
Status: City council approved the tower in July of 2017. Construction started in December 2018 with an anticipated completion date of 2023.
Developer/Architect: Westbank is the developer. Venelin Kokalov, the design principal of Revery Architecture (formerly Bing Thom Architects), is the lead on The Butterfly. It’s one of the last projects Bing Thom of Bing Thom Architects was involved in before he died in 2016. Kokalov worked closely with Thom for 16 years.
THE STACK
Type: 36-storey office tower.
Location: 1133 Melville St.
The building: Once completed, The Stack, will be the tallest office building in downtown Vancouver. The building features four stacked and rotated boxes with six outdoor decks and a roof-top patio for office tenants.
Status: City council approved the project at an April 2017 public hearing. Construction started in 2018. The building is expected to be completed by 2022.
Developer/Architect: It’s an Oxford Properties Group project. James KM Cheng Architects designed the building in collaboration with Adamson Associates Architects.
LULULEMON’S NEW HEADQUARTERS
Type: Office with retail and restaurant uses at street level.
Location: 1980 Foley St. at Great Northern Way.
The building: Carved-out sections, greenery on the exterior, and the “brise soleil” shading system make the design of Lululemon’s new proposed 13-storey head office stand out.
Status: Lululemon is seeking a rezoning text amendment to allow additional height on the site, as well as retail and restaurant uses. No additional density is being sought. A public hearing started Jan. 23, and is expected to wrap up Jan. 30, to determine if it's approved.
Developer/Architect: Morphosis Architects, led by Thom Mayne and based in Culver City, Calif., is the design architect for the project, while Francl Architecture is the local architect.
OAKRIDGE CENTRE
Type: Redevelopment of a shopping centre, which will include 10 towers of varying heights up to 44 storeys, midrise buildings with commercial, office and residential uses, a community centre, library, seniors’ centre, performance spaces, a daycare and a nine-acre public park.
Location: 650 West 41st Ave.
The building: Architect Gregory Henriquez has called the redevelopment a “mini-city” and “the biggest and most complex project I’ll ever work on in my life.” Futuristic buildings will transform the site and neighbourhood. Housing being built includes 2,000 market condos, 290 market rental units, and 290 below-market rental apartments.
Status: Construction work has started on the project, which is being completed in phases. Some retail and office space could be completed in early 2022, while the first residences are expected in late 2022.
Developer/Architect: QuadReal and Westbank are developing partners in the project. Henriquez Partners Architects is the design lead and Wonderwall out of Tokyo is designing the interior of the mall.
FIFTEEN FIFTEEN
Type: 42-storey tower with 220 market strata units.
Location: 1515 Alberni St.
The building: The developer has described it as a three-dimentional sculpture.
Status: Council approved rezoning for the site in January 2018.
Developer/Architect: Bosa Properties and German “starchitect” Büro Ole Scheeren. Francl Architecture is the local architect.
NATURE’S PATH NEW HEAD OFFICE
Type: 10-storey office building.
Location: 2102 Keith Dr.
The building: Nature’s Path, an organic food company, is building its new headquarters on a site near the East Van cross. It will replace the company’s existing head office in Richmond. The new building will feature a honeycomb-like exterior. It remains to be seen what happens to East Van cross, officially known as the Monument for East Vancouver. It may stay in its current location or be moved elsewhere. City staff told the Courier late last year that the city is consulting with those involved and working toward a decision about its future.
Status: The City of Vancouver’s Development Permit Board voted in favour of the development application for the building on Jan. 21, 2019. The project is in the permitting phase, so it’s unclear when construction will start.
Developer/Architect: Architectural firm Dialog is behind the design.
SQUAMISH NATION DEVELOPMENT
Type: The project will feature about 6,000 units of mostly rentals in 11 towers.
Location: An 11.7-acre Squamish Nation-owned site at the foot of Burrard Bridge near Vanier Park.
The project: Initially, Squamish Nation was considering a 3,000-unit development, but news broke last November revealing the new plan for 6,000 units. Squamish Nation Coun. Khelsilem told Frances Bula of the Globe and Mail that the towers were designed “to echo elements of totem poles and reflect the mountains and sky of the North Shore.”
Status: Squamish Nation members voted 87 per cent in favour of designating the land use for development in a Dec. 10 referendum, while 81 per cent voted in favour of the business terms for the development that will see Squamish Nation partner with developer Westbank. Construction for phase one could start in 2021.
Developer/Architect: Squamish Nation, Westbank and Revery Architecture.
NELSON STREET TOWER
Type: Proposal for a 60-storey Passive House residential tower with a building height of 555.5 feet.
Location: 1059 to 1075 Nelson St.
The building: The proposal is to build the tower to Passive House standards — an international standard for energy efficiency. The project would be among the city’s highest buildings if it’s approved and it also promises to be the tallest Passive House tower in the world. It features a wavy shape with a curvy column of greenery down its centre, inspired by the peninsula, the inlet and green forests.
Status: The project is in the rezoning stage. City staff are reviewing the application and are in discussions with the applicant.
Developer/Architect: Henson Developments. Tom Wright of U.K.-based WKK Architecture designed the tower, while Vancouver-based IBI Group is the executive architect.
DELOITTE SUMMIT
Type: 24-storey office tower with commercial space on the ground floor.
Location: 400 West Georgia.
The building: The tower itself features “several clusters of four-storey steel-framed cubes arranged around a central concrete core.” The project is envisioned as a “living sculpture.”
Status: Council approved the rezoning application in February of 2018. Currently under construction, it’s being built with a fast-tracked construction process where the steel components are fabricated at a manufacturing plant and then delivered to the site for installation. The project’s core is currently furthest along at level 24, with the steel structure at levels nine to 13 and the parkade is 70 per cent complete.
Developer/Architect: Westbank, Japanese architectural firm OSO and local architect Merrick Architecture.
ALBERNI BY KUMA
Type: 43-storey residential tower.
Location: 1550 Alberni St.
The building: The developer describes it as “shaped by two emphatic scoops that form deep balconies furnished in wood.”
Status: Under construction. Workers are pouring slab for the lower levels of the tower.
Developer/Architect: Westbank, Kengo Kuma Architects and Associates and local architect Merrick Architecture.
GRANVILLE GATEWAY TOWER
Type: Proposal for a tower with 303 market residential units, 152 social housing units and commercial space at ground level.
Location: 601 Beach Cres.
The building: The tower would sit opposite Westbank's Vancouver House on the north end of Granville Bridge. The goal is for the two towers to create what's been dubbed the "Granville Gateway" in and out of downtown Vancouver.
Status: A revised rezoning application was submitted in October of 2019 based on feedback from the public, which staff is currently reviewing.
Developer/Architect: Pinnacle International and GBL Architects.
VANCOUVER HOUSE
Type: 52-storey tower with 407 residential units and a 10-storey podium with retail and 95 residential market units.
Location: North end of Granville Bridge
The building: Likely one of the most photographed buildings in Vancouver during construction.
Status: The first phase of residential occupancy is complete and the second phase of residents are expected to move in in the coming months. Fresh Market and London Drugs will open in February, while “House Concepts,” a 15,000-square-foot collective concept of four fitness studios under one roof, will open in the spring of 2020. University Canada West and Momofuku are expected to open in the summer.
Developer/Architect: Westbank and Danish “starchitect” Bjarke Ingels of the firm BIG (Bjarke Ingels Group). Dialog is the local architect.
Posted on
January 10, 2020
by
Fabrizio Zenone
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Home prices increase 2.2 percent in Q4 as buyers continue to move off the sidelines
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Greater Toronto Area home prices heat up as demand outstrips supply
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Greater Montreal Area sees the strongest appreciation rate in almost a decade
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For what is believed to be the last time this business cycle, Greater Vancouver home prices decline year-over-year — and stabilize on a quarterly basis
TORONTO – BUSINESS – According to the Royal LePage House Price Survey released today, the aggregate1 price of a home in Canada increased by 2.2 percent year-over-year to $648,544 in the fourth quarter of 2019. Similar to the third quarter, potential buyers are continuing to come back to the real estate market. In the first half of 2019, buyers had remained largely at the sidelines waiting to gauge the potential impact of the federal mortgage stress test.
“We have successfully navigated the first significant national housing market correction since the Great Recession a decade ago,” said Phil Soper, president, and CEO, Royal LePage. “While the drop in the number of properties bought and sold during the 2018-19 downturn was large, the value of homes in Canada held up remarkably well, with only minor, single-digit declines in the areas of Ontario and B.C. that had experienced the most aggressive price inflation in recent years, and of course those regions still suffering from a downturn in the oil and gas sector.
“The federal government has signaled that changes could come to the mortgage stress test mechanism in 2020,” said Soper. “The stress test pushed people out of real estate markets across Canada temporarily. For the most part, buyers have adjusted, yet it still represents a significant hurdle as families pursue the dream of owning their own home.”
Soper added that the impact of the regulations-driven drop in demand is felt very differently in different parts of the country.
“We believe policymakers have the necessary experience to modify the tool to meet the reality of today’s Canada – that we have very different and varied economies, and by extension housing policy needs, from region to region,” said Soper.
The Royal LePage National House Price Composite is compiled from proprietary property data in 64 of the nation’s largest real estate markets. When broken out by housing type, the median price of a two-story home rose 2.3 percent year-over-year to $761,817, while the median price of a bungalow increased modestly by 0.7 percent to $537,622. Data analyzed contains both resale and new build transactions, provided by Royal LePage’s sister company, RPS Real Property Solutions.
Across Canada, condominiums remained the fastest appreciating housing type, with the median price rising 3.3 percent year-over-year to $487,525. Largely, condominium data is weighted towards the country’s largest urban centres where the majority of them are found. The median price of a condominium rose 7.8 percent year-over-year to $565,919 in the Greater Toronto Area and 4.4 percent year-over-year in the Greater Montreal Area to $338,148 during the fourth quarter. However, national price gains were offset by year-over-year declines in Greater Vancouver’s real estate market where the median price of a condominium decreased 3.4 percent to $645,607. Nationally, after significant price gains in recent years in the condominium segment, double-digit gains have become rarer as the price of a detached home is now more attractive as the gap between the two segments tightens, especially for millennials looking for more space for their growing families.
According to the Royal LePage Market Survey Forecast, released in December 2019, the aggregate price of a home in Canada is expected to increase by 3.2 percent year-over-year in 2020, rising to $669,800. The company’s 2020 forecast is dependent on consistent economic conditions, assuming no new housing policy changes. Royal LePage’s 2020 forecast includes regional aggregate and housing type forecasts.
MARKET SUMMARIES
Greater Toronto Area
Low supply, population growth and increased consumer confidence continued to fuel home prices in the Greater Toronto Area. In the fourth quarter, the aggregate price of a home in the region increased by 4.8 percent year-over-year, rising to $843,609. During the same period, the median price of a standard two-storey home and bungalow increased 4.4 and 2.4 percent to $982,944 and $806,977 while condominiums rose 7.8 percent to $565,919.
“The Greater Toronto Area is at a pivot point where we are seeing signs that prices could begin to rapidly increase,” said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Limited. “The region has a very low supply of listings while we are seeing more potential buyers trying to enter the market.”
Home price growth varied significantly across the region. While some areas showed stabilizing prices and healthy price growth, many regions, including the city centre, showed the potential for rapidly accelerating appreciation rates driven by high demand and low inventory. Significant price gains were seen in Pickering and Mississauga, where the aggregate price increased 9.7 percent and 7.9 percent year-over-year, respectively. The aggregate price of a home in the City of Toronto increased by 6.6 percent year-over-year.
The cities of Ajax and Oshawa were the only two areas to show a year-over-year decline in aggregate price. The aggregate price of a home in Ajax and Oshawa decreased by 1.2 percent and 1.8 percent to $661,049 and $524,423, respectively.
Greater Montreal Area
In the fourth quarter of 2019, the aggregate price of a home in the Greater Montreal Area increased 6.3 percent year-over-year to $433,993, the highest rate of appreciation since the fourth quarter of 2010. High demand coupled with low inventory fueled two-storey and bungalow home prices as their median prices rose 7.2 percent and 5.9 percent respectively to $548,374 and $336,981. The median price of a condominium in the region increased 4.4 percent year-over-year to $338,148, posting the lowest increase among the three property types surveyed in the fourth quarter.
“The fourth quarter is historically the least active, but demand remained intact until the end of the year in the Greater Montreal Area,” explained Dominic St-Pierre, vice-president, and general manager of Royal LePage for the Quebec region. “This increased competition has not only reduced inventory, but it has also changed seller behaviour. Sellers are more likely to wait until they find their next home before listing their current home. At this point, the seller is experiencing the same frustration as the buyer with little selection to choose from and escalating prices. This exacerbates the inventory problem.”
St-Pierre added that the upward trend in price appreciation over the past three years in the region stems from the continued good economic performance driving growth in demand across all buyer segments.
“We are currently in a ‘perfect storm’ for an exceptionally competitive spring market: interest rates are low; employment rates are healthy; listing inventory is limited; and, all buyer segments are active, including first-time buyers, baby boomers, newcomers and foreign buyers,” said St-Pierre.
Greater Vancouver
While Greater Vancouver continued to show a year-over-year decline in home prices, the fourth quarter showed signs of a market-moving towards recovery. The aggregate price of a home in Greater Vancouver decreased by 4.8 percent year-over-year to $1,107,719 in the fourth quarter of 2019. In comparison, in the third quarter of 2019, the aggregate price of a home in the region had decreased 5.2 percent compared to the same period in the previous year.
Broken out by housing type, the median price of a standard two-storey home and bungalow in Greater Vancouver decreased 4.7 percent (-4.2% in Q3) and 6.7 percent (-7.6% in Q3) year-over-year to $1,443,918 and $1,195,003, respectively, while the median price of a condominium in the region decreased 3.4 percent (-5.9% in Q3) year-over-year to $645,607.
“Sales volume is up and inventory is decreasing. This is a good sign of a recovery on the horizon,” said Randy Ryalls, general manager, Royal LePage Sterling Realty. “We’re likely to see some moderate price growth after last year’s decline in prices. The window of opportunity for buyers to get a deal is closing quickly for most typical buyers. There remain some excellent opportunities in the luxury market.”
Ryalls added that Greater Vancouver’s real estate market was fairly balanced in the fourth quarter.
“Sellers were able to purchase a new home and then sell their current property in a pretty short window,” said Ryalls. “It was a healthy market for both buyers and sellers.”
Ottawa
Low inventory and a tight rental market continue to put upward pressure on Ottawa home prices. The aggregate price of a home in Ottawa had a healthy year-over-year increase of 5.3 per cent in the fourth quarter of 2019, rising to $493,947. The median price of a two-storey home increased 4.4 per cent year-over-year to $521,524 while the median price of a bungalow saw a strong increase, rising 10.1 per cent year-over-year to $501,195. During the same quarter, the median price of a condominium saw an increase of 2.1 per cent year-over-year to $329,828.
“Ottawa’s real estate market saw healthy sales activity through December,” said Kent Browne, broker and owner, Royal LePage TEAM Realty. “If demand continues to outstrip supply, we expect to see further price growth this spring.”
Browne added that Ottawa’s strong local economy, supported by good employment, entices Canadians from other regions looking to move.
Calgary
While the recovery of Calgary’s real estate market has been slow, quarter-over-quarter price trends have been encouraging for homeowners. The aggregate home price in Calgary decreased 2.3 per cent year-over-year to $469,916 in the fourth quarter of 2019. However, in the last six months of 2019, the aggregate price of a home in Calgary increased 2.1 per cent, from $460,089 in the second quarter of 2019.
Broken out by housing type, the median price of a two-storey home decreased 1.0 per cent year-over-year to $514,139, while the median price of a bungalow decreased 4.1 per cent year-over-year to $488,521. Meanwhile, the median price of a condominium decreased 6.9 per cent year-over-year to $265,488.
“Sales have improved and inventory has gone down in both detached houses and townhomes. Buyers are taking advantage of reduced prices, primarily in the single-family home segment,” said Corinne Lyall, broker and owner, Royal LePage Benchmark. “There is still a surplus of condos available offering excellent choice for buyers looking at turnkey properties with little maintenance.”
Edmonton
Home prices in Edmonton were relatively flat in the fourth quarter. The aggregate price of a home in Edmonton decreased 0.7 per cent year-over-year to $379,426. Broken out by housing type, the median price of a standard two-storey home increased 1.2 per cent year-over-year to $435,426 and the median price of a condominium remained relatively flat, increasing 0.3 per cent to $230,969. During the same period, the median price of a bungalow decreased 5.1 per cent year-over-year to $361,943.
“Home buyers in Edmonton have adjusted to the mortgage stress test and sellers are making appropriate compromises,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. “Sellers are optimistic when meeting buyers that they are ready to make a purchase.”
Shearer added that he expects to see moderate growth in home sales this spring but price growth will be modest in 2020.
Halifax
The aggregate price of a home in Halifax remained relatively flat in the fourth quarter of 2019, decreasing 0.6 per cent year-over-year to $318,768. The median price of a two-storey home increased 0.4 per cent year-over-year to $336,353. The median price of a bungalow was flat with a decrease of 0.2 per cent year-over-year to $267,036, while the median price of a condominium saw a decrease of 3.7 per cent year-over-year to $319,897.
“Momentum and consumer confidence is building in Halifax,” said Matt Honsberger, broker and owner, Royal LePage Atlantic. “Rental inventory is tight, and inventory among homes listed for sale is a little over half of what it would have been last year. That’s the formula for price growth in the spring when demand escalates.”
Winnipeg
Winnipeg home prices saw strong gains in the fourth quarter. The aggregate home price in the region rose 7.4 per cent year-over-year to $321,346. During the same period the median price of a bungalow rose 5.3 per cent year-over-year and the median price of a condominium rose 1.1 per cent year-over-year to $306,293 and $232,875, respectively. The median price of a standard two-storey home increased 10.2 per cent year-over-year to $353,536.
“Sales are up across the detached home market, and sales of homes above $800,000 have been especially brisk,” said Michael Froese, managing partner, Royal LePage Prime Real Estate. “While demand has been strong, there is ample inventory, providing buyers a choice and maintaining affordability.”
Regina
The aggregate home price in Regina decreased 2.8 per cent year-over-year to $314,937 in the fourth quarter. The median price of a two-storey home increased 1.2 per cent and the median price of a bungalow decreased by 4.6 per cent year-over-year, to $387,892 and $286,402, respectively. The median price of a condominium decreased 15.0 per cent year-over-year to $200,261.
“Resale two-storey homes were struggling to compete against new build homes in 2018 as builders reduced prices to encourage sales,” said Mike Duggleby, managing partner, Royal LePage Regina Realty. “Now that the oversupply of new build homes is under control, resale homes are beginning to regain some of those price concessions.”
For more regional analysis, visit Royal LePage’s media room to find city-specific releases. The media room also contains royalty-free assets, such as images and b-roll, that are free for media use.
Posted on
December 18, 2019
by
Fabrizio Zenone
Our round-up of various industry groups’ predictions for B.C.’s housing market next year — and is there a consensus?
Looking back to last year’s round-up of B.C. housing market forecasts, on the whole, the pundits had it not far off. Many predicted that sales in 2019 would rebound after a soft 2018. And they were partially right, although it ended up happening too late in the year for the full-year total to be described as a recovery.
So what are the various real estate industry organizations and brokerages predicting for B.C.’s residential sales and prices in the coming year?
We compiled this summary of some of the key 2020 forecasts, and took our best stab at a general consensus.
Sales activity
Prone to bullishness about the B.C. housing market by nature, the B.C. Real Estate Association (BCREA) predicts that MLS residential sales across the province will increase 10.9 per cent to 85,500 units in 2020, which would take the annual total to just below the 10-year annual average of 85,800 units. However, it’s worth noting that BCREA’s forecast a year ago that sales would rise 5.2 per cent in 2019 did not come to pass.
What’s also worth bearing in mind is that BCREA’s predicted sales increase is for all of B.C. and flattens out the widely varying predictions across different regions. Most of the recovery in activity is forecast to be driven by rising sales in Greater Vancouver and the Fraser Valley, where the markets were hit hardest by the recent slowdown. Greater Vancouver residential transactions are predicted to increase by 18.2 per cent in 2020, compared with 2019, and Fraser Valley sales are forecast to go up 12.4 per cent next year. In comparison, Victoria’s resale transactions are expected to rise a more modest four per cent in 2020.
Central 1 Credit Union, which tends to forecast with more measured caution, is surprisingly even more optimistic about B.C. home sales in 2020. It predicts that the higher demand seen in the market this summer and fall will mean home sales across the province will rise 12.9 per cent in 2020 — a generous upward revision from its previous forecast of 8.8 per cent.
Brokerage Royal LePage agrees that this demand, particularly in the Greater Vancouver market, will be sustained in 2020. “Sales have picked up significantly this fall and there is momentum in our market. Buyers who took a ‘wait and see’ approach over the past 18 months are returning to the market looking to buy, confident that price drops have levelled off and may start to escalate,” said Randy Ryalls, managing broker of Royal LePage Sterling Realty, in the brokerage’s 2020 forecast.
Canada Mortgage and Housing Corp. (CMHC) makes the vote for considerably higher Greater Vancouver sales in 2020 unanimous. The federal housing agency, which breaks down its forecast by census metropolitan area rather than province, predicts that Vancouver CMA will likely recover the home sales lost in 2019 and return, in 2020, to approximately the “normalized” levels of activity seen in 2018. Victoria CMA will see sales level off in 2020 and 2021, said CMHC.
General consensus: The forecast is pretty much unwavering among the various pundits. B.C.’s housing market activity will strengthen on the whole, but most of the recovery will be in the Lower Mainland, where the market had previously been hardest hit.
Home price changes
In another show of bullishness, Central 1 Credit Union is confident that B.C.’s median sale price across the whole year will break new records in 2020, and again in 2021. After the downward blip seen in 2019, in which the median full-year price is expected to have fallen 2.4 per cent to $522,000, the credit union is forecasting a rise of 3.8 per cent to a new all-time provincial record of $542,000 in 2020.
BCREA predicted a similar whole-province average price rise, at 3.6 per cent in 2020. However, it seems the larger increase in predicted sales in the Lower Mainland doesn’t translate to larger increases in predicted home prices. According to BCREA, Greater Vancouver and the Fraser Valley are both expected to see an average MLS sale price rise of just one per cent in 2020. The association’s highest forecast for an average sale price increase is in the B.C. Northern region, where prices are expected to jump 8.1 per cent in 2020.
RoyalLePage mirrored this forecast for Greater Vancouver. It said in its most recent outlook: “In Greater Vancouver, house price appreciation is expected to stabilize in 2020 after declining in 2019. The aggregate price of a home in the region is forecast to rise 1.5 per cent to $1,125,200. Overall, British Columbia’s outlook is positive.”
RoyalLePage’s Ryalls added, “The concern for potential buyers may be that prices will escalate quickly but they should also be concerned that they won’t get the same selection of listings or time to look around. It varies between neighbourhoods, but areas such as East Vancouver are a seller’s market.”
Re/Max didn’t offer a whole-province prediction, but its area-focused forecast was something of an outlier, pegging Vancouver East and Vancouver West as seeing considerably higher price growth next year, at eight per cent and four per cent respectively. It said that Kelowna would see the province’s least amount of price growth, with prices flat to 2019, while Victoria would see a three per cent price uptick.
CMHC thinks that any Vancouver-area price growth will remain muted, but its forecast range predicts that a slight rise is more likely than a slight decline. Victoria’s home prices in 2020 are likely to remain flat with 2019 before rising slightly in 2021, according to the federal housing agency.
General consensus: This one is slightly more varied than the sales forecast, but it averages out to a sense of cautious optimism. Which is to say that B.C.’s average home prices will likely rise a few per cent next year, but Greater Vancouver and Victoria’s price trends will lag somewhat, with modest-to-zero increases and probably no loss of value.
Posted on
December 12, 2019
by
Fabrizio Zenone
Canada seemed to weather the storm that proved to destroy the American economy in the “Great Recession.” Following the economic downturn, Americans and even people up in Canada became fearful of what their household finances would look like should we experience another financial crisis. This made many a little gun shy when it came to purchasing a home. And it wasn’t just buyers who felt the dread. Lenders felt it too and became more restrictive about who they lent money to for mortgages. This had a negative impact on consumer confidence as people who witnessed the after-effects of unmanageable debt were soured by the idea of living off credit.
Meanwhile, in Canada, we did okay. We weren’t hard hit by the recession, and in fact actually didn’t even have a recession at all. We enjoyed less unemployment and maintained a stable economy. This is because Canada can lean on its resources to keep things afloat. This helps insulate Canadians from the threats of recession. However, in Vancouver, real estate did face some challenges. The good news is things are set to improve in 2020 and beyond.
Slowed Home Sales in Vancouver
Back in May home sales continued to slow in Vancouver as prices decreased. There were reports of waning resale transactions and the drop was the lowest in sales since 2013. So, as the first decline in about seven years, B.C. was looking like things were going to remain sluggish. In a weakening price environment in the Metro Vancouver area, slowed sales were to blame. It was predicted that housing prices would remain soft for the next few years.
Recessionary Conditions
Buyers sat by and watched hoping prices would continue to fall reducing real estate purchases. This led to the same report stating that ‘recessionary conditions’ in B.C.’s ownership market persisted. Even with this news experts said not to be too nervous. It wasn’t a sign the economy was in trouble. It was simply a housing market downturn with an economy in B.C. that is remaining strong with low unemployment rates, high employment growth and tight labour markets.
Stress Test Constraints
However, the low sales volume is being blamed on a lack of financing available to people who want to get into the market. This is keeping a lot of people out of the real estate game, especially first-time buyers. With the down payment constraints placed on home buyers thanks to the stress test, many people still can’t afford to take the leap into homeownership even as prices drop.
So, although the B.C. economy remains strong, the province is experiencing a housing correction. This is not surprising considering the sky-high prices of homes in the province, and particularly in Vancouver.
Slowdown Bottoming Out
There are some positives to consider, however. It appears the housing slowdown in B.C. is finally bottoming out. According to the Canada Mortgage and Housing Corporation (CMHC), before we hit 2021 there will be stabilization in housing starts, sales and prices in the province. And why? Because of favourable economic and demographic conditions. This will help drive relatively stronger new housing starts in B.C. when compared to other regions of Canada.
CMHC is predicting a low of 39,300 and a high of 42,300 starts by the end of 2019 and for 2020, a low of 40,700 and a high of 44,700. By 2021 they are estimating a low of 41,900 in 2021 and a high of 46,900.
Sales and Prices Should Climb
Despite reports from CMHC that B.C. sales dropped from over 103,000 in 2017 to about 78,000 in 2018 and the possible dip of between 62,000 and about 69,000 for 2019, there should be a climb in 2020 and 2021. They are approximating there could be from 74,600 to 84,400 home sales in 2020 and even more in 2021 between 79,800 and 90,800.
Good or bad, they also predict rising home prices in 2020. This is an increase from the 2019 declines however and will be the second-highest rate after Ontario by 2021. The area has definitely suffered due to property overvaluation in Vancouver and other regions of the province, but this should still not discourage the predicted increase in both sales and home prices. They are forecasting a benchmark B.C. price range of $656,600 to $723,400 for 2019, $675,100 to $749,500 in 2020, and $718,400 to $801,600 by 2021.
Interest and Equity
As for five-year mortgage rates, CMHC estimates they could rise from about 5.2 percent to 5.6 percent by 2021. This could affect market conditions, because of high household debt. This could make potential buyers more vulnerable as interest rates rise.
As always, in the current market, as homes become more affordable, buyers benefit but homeowners see a decrease in their home equity. This will affect their retirement assets depending on how long they have owned their homes.
As well, if interest means developers are unable to get enough pre-sales it could affect their chances of finding financing which in turn could delay building projects.
September Rebound
According to BNN Bloomberg, a 46 percent rebound in September seems Canada’s most expensive home market might be back on track despite the challenges faced by what many are referring to as a policy-driven downturn. The report shows September is the third month in a row that saw an increase in property sales which might be because prices dipped 7.4% in September compared to last year.
Vancouver has suffered due to government policies introduced since 2016 in an effort to control the growth that made the province, and particularly Vancouver become the most unaffordable urban area to live not only in Canada but the entire continent.
Because of falling home sales in the province, national sales will also see decreases that will be the lowest seen in about 10 years.
The Bubble
One last thought. In the U.S. house prices dropped by 40 to 50% of their average prices in value when the housing bubble burst. Such a drastic price drop is highly unlikely in Canada or Vancouver. This is because we continue to experience a more stable economy. To say Canada or any city or province is immune to a Canadian real estate market collapse in the long term or short term would be an exaggeration as anything is possible. However, Canada is definitely in a better position to survive if it ever does happen. Need their wrap up/take here
Posted on
December 11, 2019
by
Fabrizio Zenone
Taxpayers to be alerted to changes, exemptions for coming year
Finance Minister Carole James | Photo: Jeremy Hainsworth
B.C.’s speculation tax will rise from 0.5% to 2% for land owned before Dec. 31, the Ministry of Finance said Dec. 10.
In addition, an exemption for vacant land will end Dec. 31, 2019.
A speculation and vacancy tax year is the same as a calendar year, so tax levied Dec. 31 is due the following July. For example, for a property owned as of December 31, 2018, the 2018 tax rate of 0.5% applied, and the tax was due on July 2, 2019.
The changes are in line with legislation that created the tax; a levy the government says has been successful in targeting speculators.
"When we introduced the speculation and vacancy tax, our province was at the peak of a real estate crisis, and moderation in the market was long overdue," Minister of Finance Carole James said. "Based on the data from the first year, we see the tax is working as it was designed to: capturing speculators, foreign owners and people who own vacant homes, while exempting more than 99.8% of British Columbians."
James said in July that the province collected $115 million from property owners in major urban centres deemed to be extremely unaffordable and subject to land speculation, millions more than had been expected.
The government said those funds would be used to help fund affordable housing.
What else can be expected in the tax’s second year?
The ministry said property owners will benefit from a retroactive exemption for Canadian Armed Forces members and spouses while in active service and a retroactive exemption for people who own properties accessible only by water.
A longer phase-out will be provided for temporary exemptions, and the exemption for rental-restricted stratas will now end Dec. 31, 2021.
The exemption for strata accommodation properties will now end Dec. 31, 2021.
Water-access-only property owners with residential properties accessed by road and within a short walking distance to a public or private road will be exempt from paying the tax, a change retroactive to the 2018 tax year.
Canadian Armed Forces members and spouses will now qualify for a stand-alone exemption on residences if they are unable to reside in their home. There is no limit on the number of years that the exemption may be claimed by a forces member or spouse. The exemption can, however, only be applied to one property and is retroactive to the 2018 tax year.
Strata condo property owners restricted from renting when the tax became law will continue to qualify for a grandfathering exemption, meaning new owners and owners subject to new rental restrictions do not qualify. The exemption will now end Dec. 31, 2021.
To prevent tax avoidances, Victoria is increasing identification and information required from corporations, trusts and partnerships and foreign owners. The government said those changes are being put in place to improve efficiency and compliance and will not affect the vast majority of British Columbians.
Some who thought their privacy was being violated by that information-gathering contested the information being sought.
The Office of the Information and Privacy Commissioner thought otherwise.
“I am satisfied that the property owner’s name, address, date of birth, social insurance number and email address relate to and are necessary for the program of administering the tax,” adjudicator Erika Syrotuck said in an October ruling.
Posted on
December 6, 2019
by
fabrizio zenone
Posted on
December 6, 2019
by
fabrizio zenone
When it comes to Christmas decorations, there are a few things that immediately come to mind, like DIY wreaths, handmade ornaments, and Christmas lights galore. But wait—aren’t you forgetting something? Christmas kissing balls are a classic decoration that often get left in celebrations past, but in recent years, the evergreen décor has been popping up left and right on Pinterest and in real life. In fact, you've probably seen them hanging near the cash register for purchase at your local Christmas tree farm. (If you like the image you clicked on originally, you can buy that Christmas kissing ball here.)
So, what are Christmas kissing balls? Often confused with mistletoe, these small, medium, and large decorative bunches of holly and evergreen leaves hang from the ceiling (or wherever you install them) in voluptuous ball shapes. Christmas kissing balls are a vintage Christmas decoration that's making a major comeback. They can be accented with pine cones, berries, ribbon—anything festive, really. So why are there Christmas kissing balls and mistletoe put out during the month of December? Wouldn't just one suffice? Well, think of Christmas kissing balls as mistletoe's big sister, since they came first. Here's what you need to know.
What's the history of Christmas kissing balls?
While Christmas kissing balls are picture-perfect in and of themselves, it’s what they stand for that makes them so symbolic of the holidays. Back in the Middle Ages, villagers would tie holly branches and leaves together with twine to craft balls of all shapes and sizes. However, beyond just natural greenery, they would nestle a small baby Jesus figurine in the middle to complete what they referred to as holy boughs. Most often, these decorations were hung over entryways as a beacon for blessings and good tidings to all that walked beneath them.
While these holy boughs were customary among Christians for centuries, they fell off the map once the Puritans came into rule in the 17th century and didn’t make a reappearance again until the English Victorian Era in the 1800s. They also took on a new look, featuring a potato or apple core decorated with evergreen sprigs. At that point, the Christmas kissing balls were hung—with mistletoe added to them, thanks to Charles Dickens romanticizing the plant in two of his books—for single young women to line up underneath to be kissed by an eligible man. But eventually, the trend changed, and became just a few small sprigs of mistletoe hung over a door.
How are Christmas kissing balls used today?
As fragrant as these new Christmas kissing balls were, many people began to realize that the fruit and veggie cores might not last throughout the entire holiday season, let alone more than one. As such, balls made with foam cores came into the picture in the mid 1900s, and along with them came the inclusion of mistletoe.
Before long, mistletoe (and the perk of being able to sneak a kiss beneath it) took over as the mainstream, and Christmas kissing balls all but disappeared. But fortunately, for anyone who likes to get in the festive spirit, the spherical decorations are back and better than ever in the 21st century. Now, you can purchase fresh and faux Christmas kissing balls from your local garden center or home goods shop, or if you’re feeling crafty, DIY your very own.
If you want to opt for the latter, scroll below for a quick tutorial.
How do you make a Christmas kissing ball?
YOU’LL NEED:
- Foam sphere of your choice
- Wire (or segment of a straightened wire coat hanger)
- Greenery (like holly, pine, and mistletoe)
- Ribbon
INSTRUCTIONS:
- Stick the wire through the center of your foam ball until the end pokes out the bottom. Curve the tail end of the wire upwards towards the ball so that it hooks into the bottom. Press it in place. This ensures the ball will be secure when hung.
- Strip the ends of your greenery and cut each sprig to your desired size, making sure they’re all about the same length to create a uniform sphere.
- Stick the stripped ends into the foam ball. Keep adding new greenery until your ball is as full as you’d like.
- Tie a ribbon around the wire at the top of your Christmas kissing ball for added festive cheer.
- Loop the top wire for easy hanging and pick the perfect spot to display your DIY Christmas decoration.
DIY Your Own Christmas Kissing Ball Faster Than You Can Pucker Up
Posted on
November 22, 2019
by
fabrizio zenone
A sold home is pictured in Vancouver on Thursday, Feb. 11, 2016.
Vancouver’s empty homes tax continues to be a revenue generator for the city despite drawing from a shrinking number of vacant homes, the latest report from the city finds.
Released Wednesday, the report reveals that $39.4 million in revenue was raised during the 2018 tax year, which was collected from the owners of 1,989 vacant properties.
That’s a 22 per cent drop from the number of vacant properties taxed in 2017, when 2,538 homes generated $38 million in revenue.
 2:05Provincial rules stand in way of more empty homes taxes in B.C.
The revenue collected by the empty homes tax goes towards affordable housing projects and programs in Vancouver, including the creation of new housing and enhanced protections for renters.
“The main objective of Vancouver’s Empty Homes Tax is to influence property owners to put their empty properties on the rental market and the data shows that is happening,” Mayor Kennedy Stewart said in a statement Wednesday.
“For those who choose to keep their properties unoccupied, we appreciate their contributions to the funds that are supporting various, much-needed affordable housing initiatives across the city.”
Another 892 property owners were charged the tax after non-compliance audits were performed on an additional 8,457 properties between Nov. 2, 2018, and Nov. 1, 2019. Those audits raised an additional $22.1 million.
That’s way up from the same period a year ago, when $6.2 million was raised from 331 property owners charged after audits on 6,231 homes.
In addition to the drop in vacant properties, the city found the number of properties tenanted went up by seven per cent from 2017 to 2018, from 46,770 to 50,102.
Properties declared as principal residences also shot up one per cent, from 131,347 to 132,815.
Vancouver’s empty homes tax took effect in 2017 as a way to fight back against rampant speculation and foreign ownership that left many homes in the city empty during the recent housing crisis.
The policy requires homeowners to prove their homes are occupied for at least six months out of the year by either themselves or renters. Otherwise, they’re charged an additional one per cent tax on the property’s assessed value.
 1:28City of Vancouver passes empty home tax
The city says $17 million from the 2018 revenue will go towards the Community Housing Incentive Program, which council approved to give grants to housing developers who provide social or co-op housing.
The city will also purchase the Ross House, a 24-unit single-room occupancy (SRO) building in the Downtown Eastside, for $3.8 million, while also contributing $1.7 million to revitalize other SRO housing projects.
A combined $5.83 million will be put towards supports for renters, including the city’s renters advocacy and services team.
“From securing safe, warm homes in the Downtown Eastside, to increasing support for renters and providing grants to non-profit housing providers, lives are being changed by the revenue generated from the Empty Homes Tax,” said the city’s general manager of arts, culture and community services, Sandra Singh.
The empty homes tax has not come without controversy. Multiple lawsuits have been filed by homeowners and developers after they were charged the tax and denied appeals by the city.
The city says council will debate proposed amendments to the empty homes tax at its next meeting on Nov. 26, including extending the deadline for homeowners to submit a challenge to the tax to 90 days.
Posted on
November 6, 2019
by
Fabrizio Zenone
Credit: Courtesy of Zolo Realty
The view from the priciest property to sell in B.C. last week
The most expensive residential property to sell last week was in West Vancouver, according to data analyzed by Vancouver-based Zolo Realty on behalf of BCBusiness. The single-family home in Dundarave went for just under 81 percent of the $6.68-million list price. It had been on the market for almost three months, likely because sales activity for higher-priced residential properties has dropped dramatically in the past year, notes Zolo director of content Romana King.
The No. 2 spot was at the opposite end of the Lower Mainland near the Peace Arch in South Surrey. This single-family residence was listed for just over two months before selling for 88 percent of the $3.97-million asking price.
The property that had been on the market the longest was a 5,390-square-foot single-family home near Malahat, 30 minutes from Victoria. Listed for $3.7 million, the five-bedroom, six-bathroom home fetched $2.66 million after 466 days.
Sales activity continues to slow, which isn’t a big problem given the season and with fairly stable prices across the Lower Mainland, King observes. “It will be interesting to see what the new federal government will announce in the coming weeks and months, and whether or not new policies will once again impact B.C.’s residential real estate marketplace,” she says.
Like last week, relatively few properties (14 percent) sold for more than list price. Another 52 percent sold for close to list price (between 90.0 and 99.99 per ent), which is in line, though slightly lower, than previous weeks. For the second week in a row, a property sold for less than 75 percent of list price: located in Princeton, between Hope and Penticton, it went for just under 69 percent of the $159,900 list price after 229 days.
Details from each of B.C.’s real estate boards for the highest- and lowest-priced properties sold across the province last week are provided below
Real Estate Board of Greater Vancouver
Highest single family
Address: 2302 Bellevue Avenue, West Vancouver/Dundarave
Sold price: $5,400,000
List price: $6,680,000
Days on market: 163
Year built: 1986
Size: 3 bedrooms, 3 bathrooms, 3,057 square feet, 8,073-square-foot lot
Lowest single family
Address: 2075 Austin Avenue, Coquitlam/Central Coquitlam
Sold price: $925,000
List price: $898,000
Days on market: 6
Year built: 1964
Size: 5 bedrooms, 2 bathrooms, 2,318 square feet, 8,125-square-foot lot
Highest townhouse
Address: 322 West 62nd Avenue, Vancouver West/Marpole
Sold price: $1,385,000
List price: $1,490,000
Days on market: 8
Year built: 2017size: 3 bedrooms, 4 bathrooms, 1,461 square feet
Lowest townhouse
Address: 348 Taylor Way, West Vancouver/Park Royal
Sold price: $998,000
List price: $1,398,000
Days on market: 153
Year built: 1993
Size: 3 bedrooms, 3 bathrooms, 2,035 square feet
Highest condo
Address: #109, 3690 Banff Court, North Vancouver/Northlands
Sold price: $789,200
List price: $819,000
Days on market: 29
Year built: 1992
Size: 2 bedrooms, 2 bathrooms, 1,316 square feet
Lowest condo
Address: #318, 8900 Citation Drive, Richmond/Brighouse
Sold price: $305,000
List price: $325,000
Days on market: 41
Year built: 1980
Size: 1 bedroom, 1 bathroom, 699 square feet
Fraser Valley Real Estate Board
Highest single family
Address: 1467 – 176 Street, South Surrey White Rock/Pacific Douglas
Sold price: $3,500,000
List price: $3,975,000
Days on market: 63
Year built: 2005
Size: 3 bedrooms, 4 bathrooms, 3,551 square feet
Lowest single family
Address: 14768 – 87A Avenue, Surrey/Bear Creek Green Timbers
Sold price: $802,000
List price: $829,900
Days on market: 13
Year built: 1984
Size: 3 bedrooms, 2 bathrooms, 1,515 square feet, 7,137-square-foot lot
Highest townhouse
Address: #31, 6450 – 199 Street, Langley/Willoughby Heights
Sold price: $579,900
List price: $579,900
Days on market: 30
Year built: 2002
Size: 4 bedrooms, 4 bathrooms, 1,811 square feet
Lowest townhouse
Address: #20, 20087 – 68 Avenue, Langley/Willoughby Heights
Sold price: $529,900
List price: $549,900
Days on market: 52
Year built: 2019
Size: 2 bedrooms, 3 bathrooms, 1,518 square feet
Victoria Real Estate Board
Highest single family
Address: 4181 Rocky Mountain Road, Malahat and Area/Malahat Proper
Sold price: $2,660,000
List price: $3,700,000
Days on market: 466
Year built: 2005
Size: 5 bedrooms, 6 bathrooms, 5,360 square feet, 7.67-acre lot
Lowest single family
Address: 123 Sahtlam Avenue, Z3-Duncan/Lake Cowichan/Honeymoon/Youb
Sold price: $165,000
List price: $199,000
Days on market: 8
Year built: 1940
Size: 1 bedroom, 1 bathroom, 1,100 square feet, 7,200-square-foot lot
Highest townhouse
Address: #1, 828 Rupert Terrace, Victoria/Downtown
Sold price: $1,011,500
List price: $1,089,000
Days on market: 87
Year built: 2009
Size: 2 bedrooms, 2 bathrooms, 1,659 square feet
Lowest townhouse
Address: #33, 278 Island Highway, View Royal
Sold price: $400,000
List price: $379,900
Days on market: 15
Year built: 1973
Size: 3 bedrooms, 2 bathrooms, 1,436 square feet, 1,940-square-foot lot
Highest condo
Address: #414, 2285 Bowker Avenue, North Oak Bay
Sold price: $2,000,000
List price: $2,000,000
Days on market: 59
Year built: 2019
Size: 2 bedrooms, 2 bathrooms, 1,495 square feet, 2,781-square-foot lot
Lowest condo
Address: #303, 647 Michigan Street, Victoria/James Bay
Sold price: $151,000
List price: $189,000
Days on market: 127
Year built: 1969
Size: 1 bedroom, 1 bathroom, 597 square feet
Vancouver Island Real Estate Board
Highest single family
Address: 2439 Mill Bay Road, Zone 3 Duncan/Mill Bay
Sold price: $1,235,000
List price: $1,395,000
Days on market: 78
Year built: 1925
Size: 6 bedrooms, 4 bathrooms, 4,243 square feet, 27,456-square-foot lot
Lowest single family
Address: 441 Parkhill Terrace, Zone 3 Duncan/Ladysmith
Sold price: $350,000
List price: $375,000
Days on market: 3
Year built: 1963
Size: 4 bedrooms, 2 bathrooms, 2,378 square feet, 19,805-square-foot lot
Powell River Sunshine Coast Real Estate Board
Highest single family
Address: 7143 Jordan Street, Powell River/Westview
Sold price: $462,000
List price: $469,900
Days on market: 7
Year built: 1967
Size: 4 bedrooms, 2 bathrooms, 2,550 square feet, 11,748-square-foot lot
Lowest single family
Address: 5054 Manson Avenue, Powell River/Westview
Sold price: $220,000
List price: $299,000
Days on market: 81
Year built: N/A
Size: 3 bedrooms, 1 bathroom, 980 square feet, 30,180-square-foot lot
South Okanagan Real Estate Board
Highest single family
Address: 190 Middle Bench Road South, Penticton/Uplands/Redlands
Sold price: $1,335,000
List price: $1,425,000
Days on market: 131
Year built: 1922
Size: 5 bedrooms, 4 bathrooms, 3,849 square feet, 1-acre lot
Lowest single family
Address: 260 Penryn Avenue, Princeton
Sold price: $110,000
List price: $159,900
Days on market: 229
Year built: 1925
Size: 3 bedrooms, 1 bathroom, 911 square feet, 3,484-square-foot lot
Highest townhouse
Address: 4216 Golf Course Drive, Osoyoos
Sold price: $510,000
List price: $550,000
Days on market: 111
Year built: 2007
Size: 2 bedrooms, 3 bathrooms, 2,511 square feet
Lowest townhouse
Address: #101, 7717 Prairie Valley Road, Summerland/Main Town
Sold price: $225,000
List price: $239,900
Days on market: 83
Year built: 1981
Size: 2 bedrooms, 1 bathroom, 958 square feet
Highest condo
Address: #1307, 160 Lakeshore Drive West, Penticton/Main North
Sold price: $685,500
List price: $699,900
Days on market: 22
Year built: 2008
Size: 2 bedrooms, 2 bathrooms, 1,266 square feet
Lowest condo
Address: #315, 1410 Penticton Avenue, Penticton/Columbia/Duncan
Sold price: $177,500
List price: $192,000
Days on market: 172
Year built: 1975
Size: 2 bedrooms, 1 bathroom, 861 square feet
Okanagan Mainline Real Estate Board
Highest single family
Address: 2485 Longhill Road, Central Okanagan/NG-North Glenmore
Sold price: $1,700,000
List price: $1,750,000
Days on market: 18
Year built: 1977
Size: 4 bedrooms, 4 bathrooms, 4,250 square feet, 6.86-acre lot
Lowest single family
Address: 2411 Vickers, Shuswap/Revelstoke/North Shuswap
Sold price: $208,500
List price: $249,000
Days on market: 90
Year built: N/A
Size: 5 bedrooms, 2 bathrooms, 1,888 square feet, 25,264-square-foot lot
Highest townhouse
Address: #10, 255 Feathertop, Central Okanagan/BW-Big White
Sold price: $950,000
List price: $999,000
Days on market: 54
Year built: 2006
Size: 3 bedrooms, 4 bathrooms, 1,894 square feet
Lowest townhouse
Address: #204, 4004 – 34 Street, North Okanagan/AP-Alexis Park
Sold price: $170,000
List price: $175,000
Days on market: 8
Year built: 1980
Size: 2 bedrooms, 1 bathroom, 785 square feet
Highest condo
Address: #405, 5030 Snowbird, Central Okanagan/BW-Big White
Sold price: $580,000
List price: $699,000
Days on market: 227
Year built: 2006
Size: 4 bedrooms, 3 bathrooms, 2,129 square feet
Lowest condo
Address: #16-316, 2751 Westside Road, Central Okanagan/WS-Westside Road
Sold price: $124,000
List price: $128,900
Days on market: 55
Year built: 1987
Size: 1 bedroom, 1 bathroom, 600 square feet
Kamloops & District Real Estate Association
Highest single family
Address: 119 Coppertree Court, Kamloops/Sahali
Sold price: $840,000
List price: $849,900
Days on market: 38
Year built: 1994
Size: 6 bedrooms, 3 bathrooms, 3,802 square feet, 8,712 square feet
Lowest single family
Address: 640 Lister Road, Kamloops/Heffley
Sold price: $340,000
List price: $349,900
Days on market: 17
Year built: 2005
Size: 2 bedrooms, 1 bathroom, 1,156 square feet, 14,374-square-foot lot
Highest townhouse
Address: #5, 3150 Westsyde Road, Kamloops/Westsyde
Sold price: $363,000
List price: $369,900
Days on market: 36
Year built: 2005
Size: 3 bedrooms, 2 bathrooms, 1,663 square feet, 1,742-square-foot lot
Lowest townhouse
Address: #14, 1750 Summit Drive, Kamloops/Sahali
Sold price: $267,549
List price: $264,900
Days on market: 16
Year built: 1978
Size: 2 bedrooms, 1 bathroom, 1,080 square feet
Kootenay Real Estate Board
Highest single family
Address: 327 High Street, Nelson
Sold price: $844,000
List price: $885,000
Days on market: 28
Year built: 1990
Size: 7 bedrooms, 4 bathrooms, 2,550 square feet, 10,018-square-foot lot
Lowest single family
Address: 2903 9th Avenue, Castlegar/South Castlegar
Sold price: $79,900
List price: $79,900
Days on market: 25
Year built: 1994
Size: 4 bedrooms, 3 bathrooms, 1,197 square feet, 9,147-square-foot lot
Highest townhouse
Address: A-415 Canyon Trail, Fernie
Sold price: $534,000
List price: $546,000
Days on market: 49
Year built: 2007
Size: 3 bedrooms, 3 bathrooms, 1,935 square feet
Lowest townhouse
Address: #530, 2030 Panorama Drive, Invermere Rural/Panorama
Sold price: $85,000
List price: $99,000
Days on market: 312
Year built: 1980
Size: 1 bedroom, 1 bathroom, 530 square feet
Highest condo
Address: #310, 901 Richards Street, Nelson
Sold price: $434,000
List price: $438,888
Days on market: 116
Year built: 2012
Size: 3 bedrooms, 2 bathrooms, 927 square feet
Lowest condo
Address: #104A, 1802 Alpine Drive, Elkford
Sold price: $72,000
List price: $72,900
Days on market: 50
Year built: 1980
Size: 2 bedrooms, 1 bathroom, 735 square feet
BC Northern Real Estate Board
Highest single family
Address: 7408 West Fraser Road, Quesnel-Zone 28/Quesnel Rural-South
Sold price: $185,000
List price: $229,000
Days on market: 101
Year built: N/A
Size: 1 bedroom, 0 bathrooms, 1,326 square feet, 21.84-acre lot
Lowest single family
Address: 297 Boyd Street, Quesnel-Zone 28/Town
Sold price: $160,000
List price: $189,000
Days on market: 10
Year built: 1980
Size: 5 bedrooms, 3 bathrooms, 2,320 square feet, 6,000-square-foot lot
Posted on
October 31, 2019
by
Fabrizio Zenone
Incoming tech workers, downsizing empty-nesters, international students will all add to demand for purpose-built rental homes, says researcher
Two years ago, the B.C. NDP campaigned on a pledge to deliver 114,000 affordable housing units within a decade. The housing crisis has hardly improved since then, with prices and rents both increasing even as sales pulled back.
Speaking to the Urban Development Institute recently, Michael Ferreira, principal of market research for Urban Analytics Inc., offered his take on what’s required in terms of purpose-built rental units.
Ferreira believes foreign students could require 10,000 to 20,000 units. Downsizing empty-nesters could need 38,000 units, according to numbers provided by GWL Realty Advisors Inc., while their children could require 10,000 to 15,000 units.
And let’s not forget about all those jobs the booming tech sector is drawing to the region: Ferreira said that with 20,000 workers coming, it’s fair to add another 10,000 to 15,000 units to demand, especially as many of them will be foreign nationals who have better things to spend their cash on than B.C.’s foreign buyer’s tax.
Add those numbers up and you’ve got an estimated demand for at least 68,000 purpose-built rental units, a far cry from the 3,273 purpose-built rental units set to complete this year and 10 times the 6,800 units in planning for the region. Ferreira said afterwards he believes 30,000 units are necessary in the next two years to meet oncoming demand.
But with municipalities such as the District of North Vancouver not budging on approvals, Ferreira presented a stark vision of the future.
“We have to stop talking and actually start building, because if even a fraction of this potential demand materializes, we’re nowhere near where we need to be in terms of supply,” he said. “How long do you think before we see a $5 per square foot rent in downtown Vancouver or a $4, $4.50 per square foot rent in Burnaby, Richmond and some of these other places?”
Offering a counterpoint
But a few hours after Ferreira delivered his talk, Simon Fraser University associate professor of public policy Josh Gordon participated in a panel discussion with David Hutniak, CEO of LandlordBC; Tony Pappajohn, president of Jameson Development Corp.; and Squamish Nation councillor Khelsilem.
Gordon argued the issue isn’t so much how many units are built as it is security of tenure.
Gordon, who rents a condo from family and (as Hutniak noted) has pretty solid tenure, said households with an annual income of $80,000 and up have secure tenure because they can afford alternative accommodation if displaced (median household income in Metro Vancouver is 15th highest in Canada, at $72,662 in the 2016 census, according to Statistics Canada).
What’s needed are policies that protect housing for those with the least leverage in the market, Gordon said. Cracking down on short-term rentals and owners who leave units vacant, and having more cash for those who lose tenure through renovictions and demovictions are his favoured options.
“The low vacancy rate is a product of a high economy – nothing more, nothing less,” he said, claiming (as some University of British Columbia instructors shook their heads in disagreement) that there are no peer-reviewed academic studies showing that boosting the stock of purpose-built rentals improves vacancies.
“Supply is on the way. It’s already being delivered,” said Gordon, claiming there are 45,000 units for sale and rent under construction in Metro Vancouver.
Pack ’em in
A glance at Statistics Canada data puts the much-discussed Metro Vancouver housing shortage in context.
The region has approximately 2.6 people per bedroom (StatsCan lumps dwellings with five-plus bedrooms together). This is less than Toronto (2.8 people per bedroom) but more than Montreal (2.4 people per bedroom). Fraser Valley homes are exceptionally cozy with nearly three people per bedroom in Abbotsford-Mission and 3.2 per bedroom in Chilliwack.
The statistics indicate that Abbotsford is also the best place in the Lower Mainland to find households of five or more people living in a studio apartment (more than four per cent of units are apparently inhabited this way, versus less than one per cent in Vancouver).
Posted on
October 16, 2019
by
Fabrizio Zenone
Residential resale activity “built on momentum from the summer” with transactions up 24 per cent year over year and average prices on the rise
Although residential real estate is seeing a stronger resurgence of activity in Greater Vancouver, the sales uptick is being seen throughout the province, according to the latest monthly data from the B.C. Real Estate Association (BCREA).
There were 6,938 home sales on the MLS across B.C. in September, the BCREA reported October 15, which is an increase of 24 per cent compared with September 2018.
The average home sale price in September was also higher than one year previously, up 2.1 per cent to $697,943, which is 1.8 per cent higher than in August.
However, this doesn’t mean a return to the overheated housing markets of 2016, according to the BCREA.
“Markets across BC built on momentum from the summer,” said Brendon Ogmundson, BCREA’s chief economist. “While the year-over-year increase in provincial sales was quite strong, home sales in most areas are simply returning to historically average levels.” (See graph above.)
The BCREA said in its report that “overall market conditions remained in a balanced range, with a sales-to-active-listings ratio of about 18 per cent.”
Only two of the 12 individual real estate boards across the province failed to record higher sales in September than one year previously. These were the small market of Powell River, where sale and price percentage changes fluctuate greatly each month, and Vancouver Island, which saw 5.1 per cent fewer sales on an annual basis.
Vancouver Island was also one of four boards to record a lower average home sale price than a year ago — down three per cent. The others to see lower average sale prices in September were Greater Vancouver (-5.9 per cent), Victoria (-6 per cent) and Powell River (-0.3 per cent).
In larger markets, an increase in sales coupled with a decline in average sale price could mean that there are increasing numbers of sales at the lower to mid end of the market — perhaps as buyers take advantage of improved affordability and cheaper mortgage rates. A larger number of lower-priced homes being sold will pull down the average sale price; it does not necessarily mean home prices are declining in those markets, although this could also be true.
Even though the province’s sales and price activity over July through September has been relatively strong compared with the previous year, it was not enough to offset the slow sales of the 2019’s first half and it is certainly possible that 2019 will finish behind even the weak showing of 2018.
Year-to-date, January through September, B.C. residential sales dollar volume was down 12.4 per cent to $39.7 billion, compared with the same period in 2018. Total home sales were 8.9 per cent lower at 57,773 units, and the average MLS resale price across the period was down 3.9 per cent year-to-date at $687,530.nits, and the average MLS resale price across the period was down 3.9 per cent year-to-date at $687,530.
Posted on
October 10, 2019
by
Fabrizio Zenone
– It seems it’s still a buyers’ market in Metro Vancouver, but the head of one of Canada’s real estate firms is warning that one-sided election promises could quickly change that.
“Housing has received a tremendous amount of attention in this federal election cycle, and it’s easy to understand why,” says Phil Soper, CEO of Royal LePage. “Today’s first-time home buyers — those in their 20s and 30s — are a very large part of the Canadian population, a bubble of people coming into the age where they make major financial decisions.”
As a consequence, Soper points out there has been plenty of policy focused on helping younger buyers get into the housing market.
“The challenge is that a number of these policies have been what we call ‘demand stimulus’ ideas. They make more people want to buy houses and in our big cities like Vancouver, where we don’t have enough homes for sale to satisfy the current demand, let alone increased demand.”
Soper says the industry would love to see every politician who promises something that will make it easier to buy a house also address how that house will be provided.
“In other words, lower barriers to building, and developing the homes we need to fill the needs of our growing population.”
Otherwise, he argues, a surge in new buyers would cause prices to escalate, erasing any enhanced purchasing power that was promised.
“We need our leaders to shift from focusing on demand-side to supply-side — finding ways to make it more efficient to get adequate volumes of housing into our big cities.”
Meanwhile, Greater Vancouver is still experiencing a decline in home prices.
Royal LePage’s latest Home Price Survey finds the aggregate home price fell 5.2 per cent in the third quarter, compared to the previous year, to $1,194,900.
When broken down by housing type, the median price of a two-storey home and bungalow in Greater Vancouver decreased 4.2 per cent and 7.6 per cent to $1,503,017 and $1,296,447 respectively in the third quarter, compared to the same period in 2018. The median price of a condominium in the region fell 5.9 per cent year-over-year to $646,902.
The only segments of the local market to see increases, year-over-year, were condos in Langley (up 2.2%) and two-storey houses in North Vancouver (up 0.4%).
“Buyers are in control in the detached market. Sellers have had to embrace the new market reality to get deals done,” says Randy Ryalls with Royal LePage Sterling Realty. “As the housing market stabilizes, we’ve seen an increasing number of homebuyers become willing to enter the market.”
Ryalls expects activity to continue to pick up heading toward the end of 2019.
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Rendering for The Butterfly building at 969 Burrard.
Rendering for "The Stack" office building being built at 1133 Melville St.
A rendering of Lululemon's proposed new office building at 1980 Foley St.
Artist rendering of redevelopment of Oakridge Centre.
Building planned for 1500 West Georgia.
Nature's Path's is positioned near the East Van cross.
Early renderings of Squamish Nation project by Burrard Bridge.
The propsed Nelson Street tower (left) would sit near The Butterfly (right).
Building planned for 400 West Georgia.
Rendering of Alberni by Kuma at 1550 Alberni St.
The Granville Gateway tower (right) is proposed for 601 Beach Cres., which is opposite from where Vancouver House (right) was built.
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