The Real Estate Services Act requires that a deposit cheque of $5,000 or more received by a realtor must be submitted to the buying agent's brokerage office and deposited to a brokerage trust account.

Basically what this means is that when you give XYZ Realty a deposit cheque on a home you intend to purchase, it is held in a brokerage trust account until such sale completes, for a minimum of 30 days, and upon completion that money is then applied towards the final purchase price of the property. Brokerages hold trust monies as impartial stakeholders on behalf of the all parties involved in the transaction, and trust monies cannot be paid out of the account without the agreement of each party. If your original offer includes a clause that any interest accrued on trust monies was part of your agreement, you will be entitled to that interest once the property sale completes. If no such clause exists, under the Real Estate Services Act, the interest accrued is subsequently sent to the Real Estate Foundation, a non-profit organization which funds charitable works.

For more answers to your Real Estate questions, don't hesitate to contact Vancouver Townhouse. Or refer to the Real Estate Board of Greater Vancouver's website for more details.

Making your home move-in ready doesn't necessarily mean doing costly kitchen and bath renovations. It does mean addressing safety issues, as well as performing maintenance tasks, both minor (such as fixing leaky faucets and drawers that stick) and major (like fixing faulty appliances or problems with your heating/cooling system). To that end, consider having your home professionally inspected before it goes on market; the inspection report can serve as your to-do list, ensuring your property is all fixed up and will not be seen as a "fixer-upper" by potential buyers.

Getting your home in move-in condition also means making sure it's thoroughly clean and neutral in décor. Ideally, buyers want to be able to move into a property where they can apply their personal touch without having to remove yours. In other words, your décor should be a blank canvas. Doing this is as simple and inexpensive as giving your walls a fresh coat of paint in a neutral tone, and, if not already a neutral shade, replacing your carpeting could be an investment well-made.

Just as buyers want a move-in ready home, you want top dollar for your property. So, while putting work and money into your home only to turn around and sell it might seem counterproductive, doing so will help to justify a higher asking price than you could set for your home if it required more work on behalf of its new owners.

Due to the unique nature of strata ownership, there are certain questions to consider before making an offer.

1. Monthly strata fees – all strata lot owners must pay strata fees for their strata lot. The Schedule of Unit Entitlement sets each strata lot’s payment. The strata fees are based on the strata corporation’s annual budget, so check the current budget. Is a large part of it for recreational facilities (for example, a fitness centre and swimming pool)? If so, how much you will use them. Your monthly strata fees will pay your share of the upkeep for the recreational facilities – even if you never use them.
2.   The physical condition of the project – in a strata development, the general rule is that every owner must contribute to common expenses, such as repairs, unless an exception to the rule applies. If the development is in poor repair, you will have to pay your share of the cost to fix it, even if the repairs do not involve your strata lot or the part of the project where your unit is located. You may have to pay for special levies that have been previously approved, but not yet implemented. Review the minutes of meetings to see if any major repairs have recently been made or are planned. Check the minutes of general meetings of the strata corporation and meetings of the strata council. If the strata lot is part of something called a section, you also need to check the minutes of general meetings of the section as well as minutes of the meetings of the section’s executive. In each case, ask for complete copies of the relevant minutes for the past two years.
3. The type of ownership: “freehold” or “leasehold” – our legal system distinguishes between ownership and possession. In a lease, the landlord owns the property, but gives possession to the tenant for the term of the lease. In most condominium developments, people own their strata lots. These are called freehold developments – each owner holds “fee simple title”. The Strata Property Act permits a government body, for example, the City of Vancouver, to be the landlord of a leasehold strata development. In a leasehold development, the landlord owns the property, but grants a long-term lease to a developer (say, for 99 years) to build a strata development there. The developer is a long-term tenant who, with the landlord’s permission, creates a strata development on the landlord’s property.
4. The bylaws and rules – read them carefully before you buy. Bylaws set out owners’ rights and responsibilities and control what the place will be like to live in. Bylaws control the use of strata lots and common property. Bylaws set out the duties of owners, tenants, occupants, visitors, the corporation and the strata council, as well as the procedures at council and general meetings. Bylaws also allow the strata corporation to penalize owners who violate the bylaws.
5. The Information Certificate – you can ask the strata corporation for an Information Certificate (also known as Form B). It has important information on several things, including the corporation’s finances, the money the strata lot owes for strata fees, and other obligations, such as a special levy. The Information Certificate also shows if the strata corporation has adopted any new bylaws not yet filed at the Land Title Office, and whether the strata corporation is involved in any lawsuits or arbitration. You should always review a current Information Certificate before making an offer to buy a strata lot. Or you should make your offer subject to reviewing a current Information Certificate.
6. The financial statements of the strata corporation – these show how much your monthly strata fees will be and where all the money goes. They show any special levies to cover major expenses such as repairs. They also show how much is in the contingency reserve fund. If any major renovations are planned, you will have to help pay for them, so this is important information.
7. The Schedule of Unit Entitlement (also called a Form V) – each strata lot must contribute proportionately to common expenses, such as strata fees and special levies. Strata lot owners are personally liable for the debt of their strata lot. The Schedule of Unit Entitlement is a table that shows the portion of costs that you, as a strata lot owner, are responsible for. Compare your share of the costs to those of owners of other strata lots in the strata plan.
8. The strata plan and resolutions affecting common property – the strata plan, including any amendments, and resolutions affecting common property, are filed at the Land Title Office. Get copies of these documents and review them. Check the location and area of your strata lot and see if any limited common property features are attached to your strata lot.
9. The title to the strata lot – this may limit the use of the strata lot or affect its value. For, example, a bare land strata development may limit the height of any house you want to build on it. With your lawyer, review the results of a current title search for the strata lot.
10. The Disclosure Statement – if you’re buying a new condominium in a development with 5 or more strata lots, the developer must supply a Disclosure Statement under the Real Estate Development Marketing Act. Read the Disclosure Statement and any amendments – they have a lot of important information about the project. 

To learn more about the legal process of buying a strata property in BC, visit http://www.cba.org/bc/public_media/housing/407.aspx

As an example, let's look at a $300,000 mortgage, which would represent the approximate size of a mortgage loan needed for an average house in Canada, based on the national average home price.

From the chart above, you can see that a mortgage holder with a loan amortized over 35 years at an interest rate of five percent would pay $1,504 per month. Reducing the amortization from 35 years to 30 years would mean increasing the monthly payment by $97 a month. But look at the interest savings that accumulate for the homeowner after shaving five years off the amortization period — a whopping $55,404!

Interested in finding out if changing the terms of your mortgage might result in significant savings for you and your family over the long-term? Call today for a no-obligation review of your current mortgage situation, and for more information on today's loan options.

"Our market has had a very strong start to the spring season," noted Rosario Setticasi, REBGV president. "With home sales above 4,000 and nearly 7,000 home listings added to the MLS® in March, it's clear that homebuyers and sellers view this as a good time to be active in their local housing market."

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 4,080 in March 2011. This represents a 31.7 percent increase compared to the 3,097 sales recorded in February 2011, and an increase of 30.1 percent compared to the 3,137 sales in March 2010. Looking back further, it also reflects an 80.1 percent increase from the 2,265 home sales in March 2009.

"Conditions favour sellers at the moment, but we're seeing differences in home-price trends and overall activity depending on the region and property type," Setticasi said.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months increased 5.4 percent to $615,810 in March 2011, from $584,435 in March 2010.

Curious about how your particular neighborhood compares to the overall market? Even if you're not planning to move right now, it's still important to be aware of current home values. Please remember that you may call for a real estate update at any time, with no obligation.

• Comparable sales. What have similar homes in the same area recently sold for? Ask a real estate sales representative, who has full access to the Multiple Listing Services®, where such information is centralized.
• Condition of the home. Is the property structurally sound? Are its plumbing and electrical systems in good shape? If an inspection has recently been done, what did it report? Have the owners made improvements that make their property worth more than others in the neighborhood? Or will it need work to get it up to par?
• Market conditions. Every market's different — what are conditions like where you're hoping to buy? Are sellers entertaining multiple offers, or is it a buyer's market, where there's more negotiating room? For insight into local market conditions, contact a real estate sales representative with expert knowledge of the area.
• Seller motivation. Is the owner under pressure to sell, perhaps because they've already bought a new home or accepted a job offer requiring them to relocate? While seller motivation doesn't always have a huge impact on price, it is possible that their circumstances will allow you some flexibility to negotiate.

As you can see, there's a lot to consider, which is why establishing an offer price is a job best left to real estate sales representatives.

• Photographs. They can help your real estate sales representative show your property off in a light buyers may not get to literally experience. For instance, a house dweller selling in winter would be smart to provide quality photos of their property in summer; a condo owner whose unit will be vacant while on the market could take snaps of it while it's (fabulously) furnished.
• Your own "spec sheet." Include upgrades, like granite countertops and hardwood flooring; any chattels and fixtures you're willing to include in the sale; and what you've loved about living there, from the daycare so close you can walk to it, to that delizioso Italian bistro down the street. Such information is very valuable to your real estate sales representative.
• Warranties. Gather together any paperwork you have concerning warranties that are still valid for any of the appliances that will be included in the sale, as well as any warranties covering the materials and workmanship for any work you've had done on your home.
• Inspection report. Some sellers have pre-listing inspections performed on their properties — doing so lets buyers know homeowners are serious about selling, and confident about their home's condition. If you've had an inspection done, be sure your real estate sales representative gets a copy of the report. If you haven't had an inspection, talk to your real estate sales representative about whether it would be beneficial to do so in your particular case.

To understand why new borrowing restrictions were put into place, consumers need look no further than recent reports showing that the average Canadian household now owes a record amount of debt in mortgages, loans and credit cards — a reported 148 percent of disposable income. To help control this debt, the government's choices included either raising interest rates, or tightening borrowing restrictions. Having chosen the latter, the following are changes for homeowners and buyers:

1. New borrowers need to know that the maximum amortization period — the maximum amount of years it would take to pay off a government-guaranteed mortgage — has been reduced from 35 years to 30 years.
2. Current homeowners seeking extra funds through the refinancing of their current home may now refinance up to only 85 percent of their home's value, down from the previous 90 percent.
3. The government will no longer insure home equity lines of credit, putting the responsibility on the lending institutions instead.

Overall, the rationale behind these recent changes reflects an attempt to keep interest rates low, allowing real estate to remain affordable for Canadians, without making it too easy to run up personal debt.

Thinking of making a move this spring or summer, and wondering how the new mortgage changes might affect your personal situation? Please call to discuss your individual circumstances, and to find out about housing trends and affordability in your particular area.

In any condo, or townhouse complex there may be a few units for sale at the same time. Being in the same building, they're likely to be very similar to one another, and even have the same floor plan. That means your unit may be in direct competition with comparable condos as close as an elevator ride away. Staging can be an effective way to distinguish your condo from the competition.

Another reason home staging can be especially valuable for condo owners is that it helps make your home look more spacious, which tends to be a bigger challenge in condos than it does in houses. Home stagers know all the best tips and tricks to make even the smallest of spaces look bigger, meaning buyers will see the most bang for their buck at showings.

Lastly, repurposed rooms are common in condos, where space is more limited. For example, you may have no need for a dining room, and use the area as a home office instead. Unfortunately, repurposed rooms can confuse buyers, who want to see a dining room — if they don't, they might walk away thinking there isn't one. A home stager can help you dress each room for its intended purpose, so that buyers don't have to use their imagination — particularly helpful in situations where the condo's already vacant.

Did you know Vancouver Townhouse offers assistance in staging your property for sale? Read more on staging.

• How long have they been in the business? Can they provide references? Are they members of any type of movers' association? The answers will give you an idea as to how reputable the mover is.
• What additional fees might you be charged? For example, some movers charge extra if the home is hard to access (e.g., there's no elevator and the crew has to use stairs) or if they have to move big, awkward items like a piano.
• Will your stuff be stored or transferred? During long-distance moves, your belongings may have to be transferred from truck to truck, meaning greater potential for damage. And if your belongings will be stored, you'll want to know where and how.
• How will your belongings be protected from damage during the move? A reputable mover should be able to explain what sorts of packing materials they use. Also, are those materials included in the quote or charged separately?
• Do they provide insurance to protect your possessions against loss or damage? What limitations exist on their liability? Is the coverage included in their quote or charged separately, and how would you go about filing a claim?
• Do they have workers' compensation insurance? If the moving company can't provide proof that they carry this kind of insurance, you could be held liable should any of their workers get injured while on your property.

According to MLS statistics provided by Macdonald Realty, a record 375 homes -including nearly 50 condos -sold for over $3 million in 2010, breaking the record of 209 set in 2009 and more than double the 167 sold in 2008.

Of those, 73 homes sold for over $5 million.

The sales were primarily, but not exclusively, on Vancouver's west side, with the priciest home going for $17.5 million at 3489 Osler.

The second and third priciest homes -the second also on Osler and the third on Point Grey Road -both sold for about $11 million.

As well, Macdonald Realty says, if current patterns hold, the number of $3-million-plus homes is expected to reach 550 this year, raising the spectre that in some neighbourhoods a $3-million home may no longer be considered particularly exclusive.

In 2000, just 10 properties in Metro Vancouver sold for over $3 million, none of them condominiums.

The market for luxury homes is now "insanely hot," with mainland Chinese buyers -who are also impacting the Richmond market in a big way -the primary purchasers, said Dan Scarrow, Macdonald Realty vice-president of corporate strategy.

"Ninety-per-cent [of the luxury home purchases] are on the west side, probably some in West Vancouver," he said in an interview. "But it's incredibly striking, when you think what the prices were 10 years ago."

Scarrow said that while a $3-million house has always been categorized as "luxury," he no longer knows if that's the case in key West Side neighbourhoods, including Shaughnessy and Point Grey.

"We're part of a global luxury market by the ultra-wealthy," he said. "And from the buyers' perspective, prices here are cheap for what you get."

Tsur Somerville, director at the centre for urban economics and real estate, Sauder School of Business at the University of B.C., said in an interview that just because there are more homes selling for over $3 million doesn't mean they're not luxury homes.

"It's pretty subjective," he said. "But $3 million is an expensive home. And just because it's on a small lot doesn't mean it's not a luxury house.

"And the fact that there's a whole lot more [$3-million homes] than a decade ago, with the price increases, there'd better be."

Somerville also said that China is a huge source of immigrants to B.C. and that mainland Chinese immigrants tend to be investors and entrepreneurs.

"Clearly, there's a very targeted demand for higher-end properties that many associate with the mainland Chinese market."

But he said there's an absence of clear data on the specifics of those buyers, whether it's primarily immigrants or investor money from China. As an indication of how the luxury condominium market has grown, Scarrow said that last year a total of 49 condos sold for over $3 million - including seven for over $5 million - with the top three closing in on $6 million each, the priciest at Two Harbour Green, 1139 West Cordova, in Coal Harbour, for $5.8 million and the other two at the Shangri-La in downtown Vancouver.

Scarrow said many more properties are crossing the $3-million threshold, which now buys a new or newer house in the 2,500-to 3,000-square-foot range on a smaller west side lot.

"Now, you see multiple $3-millionplus homes on every block. I'd say $5-million is now where you're going for that luxury range."

'CHINA IS MORE EXPENSIVE'

Alice Zhang, who moved from Hangzhou, China, to Vancouver two years ago, now lives in one of six properties that she and her husband have purchased in Vancouver since moving here.

Zhang, who has two children, is waiting to move into a new home they're constructing on a Shaughnessy lot that they bought for about $3.1 million. The house is expected to cost another $3 million, which Zhang believes is a good deal.

"We moved from the most beautiful city in China to Vancouver, which we consider more beautiful," said Zhang, whose family owns hotels and a real estate development company in China.

"I think that compared to other Canadian cities, Vancouver is expensive. But, China is more expensive [than Vancouver].

"And the air is very fresh here and it's very green. You feel like you're in a garden."

Scarrow cited another client who purchased a 2,600-square-foot condo in Coal Harbour for about $1,600 a square foot.

"[She and her family] has homes all around the world. In Knightsbridge, London, a flat was sold to her for $8,000 [Cdn] per square foot. Their flat in London was 3,000 square feet and they paid $24 million for it."

She also has two homes in Hong Kong, one in Lake Tahoe, one in San Francisco, one in New York and one in Madrid, Spain, Scarrow said. "They all say their Vancouver property is their favourite home. They think it's the best value."

Macdonald Realty manager Matthew Lee, whose firm sold the three most expensive homes in Vancouver in 2009 and two of the five most expensive homes in 2010, believes that it's not just mainland Chinese who are fuelling the luxury market, "but buyers from Europe and the U.S. are willing to pay these prices as well. Globally, Vancouver is still seen as a relatively good bargain."

While the west side of Vancouver had the largest number of luxury homes sold, other areas in B.C. have also seen some very expensive sales, including the Fraser Valley's top three sales between $5.3 million and $6.1 million, the Okanagan, from $5.4 million to $10.7 million, and Victoria, from $3.9 million to $6.8 million.

And while Vancouver has seen some very expensive homes sold over the past decade, including one for $17.5 million in 2008 and one for $17 million as far back as 2004, it's the sheer numbers that are striking. In 2000, just 10 homes sold for over $3 million, and 78 in 2005.

An annual home-ownership survey from Royal Bank of Canada showed 90 per cent of Canadians are confident in the country's real estate market. Among homeowners, 85 per cent feel they are doing a good or excellent job of paying off their mortgage.

This comes shortly after the Canadian Real Estate Association forecast a 1.6 per cent decline in listed home resales this year, and a slight 1.3 per cent rise in the average price. That compares to average price gains of about seven per cent since 2000.

Almost three-quarters of respondents in the RBC poll said they are well positioned to withstand a decline in the housing market.

"Canadians believe in the long-term benefits of owning a home, including the value it can provide, both personally and as a long-term investment," said Marcia Moffat, RBC's head of home-equity financing.

Twenty-nine per cent of survey respondents said they intended to buy a home within the next two years. That was down two percentage points from the same survey a year earlier, but still the second highest level of intent since 2006.

Among those who own a home, 69 per cent said their home has risen in value over the last two years. That's up five points from responses this last year.

Asked what was their biggest concern about buying a home, 26 per cent cited rising prices and 22 per cent picked increasing mortgage rates.

The survey results were based on Internet surveys of 2,103 people conducted by Ipsos Reid between Jan. 12 and 17. The results are considered representative of the population within 2.2 percentage points, 19 times out of 20.

- Derek Abma, Financial Post March 9, 2011 

• Kiddies? Kitties? You want to make sure all members of your family — from your children to your furry (or scaly) friends — are welcome in the building. Ask about any occupancy restrictions first, to save time and aggravation later.
• Parking? If your "baby" is of the 4-wheeled variety, you'll need to confirm that a parking spot is included in the price. Also, confirm if the parking spot is owned by the condo owner, or by the condo. This will affect whether you can sell or rent the spot, or buy another spot for a second vehicle.
• How Will You Manage? Or, specifically, how is the complex managed? Is there a dedicated property manager to take care of the building? Inquire into the strata board, too, and find out if there was an unusual number of items disputed at the last board meeting.
• Check Your Status (Certificate). Before signing on the dotted line, it's important to confirm the rules, regulations and financial health of a particular strata corporation. A status certificate is a group of documents that includes, among other things, an outline of the budget; the amount of the Reserve Fund and if that fund is sufficient to cover any major work; minutes of the last annual meeting; information on arrears or increases in common expenses; and any special assessments being considered.

A good real estate sales representative will educate clients on what questions to ask, and how to interpret the answers. Please call today with all your questions on real estate in today's market.

The Canadian Real Estate Association expects sales numbers to remain fairly stable through the first half of 2011, although they could come under pressure when interest rates resume their expected climb in the second half of this year.

If you're thinking of listing your house for sale, there's no better time than now. Make sure you maximize your selling opportunity by remembering to highlight all of the things you've come to love about your home.

Location, of course, is always key. Be sure to list the unique features of your property's setting, including highlighting its location in relation to transportation, schools and shopping, as applicable.

In addition to location, it's worthwhile making a list of specific home improvements you've added to your house. Did you install an alarm system, crown moldings, a fireplace or hardwood floors? Did you upgrade your wiring or plumbing systems, cupboards or counters? Highlight, too, any warranties or guarantees that are transferable to the new owners, as well as items you've agreed to include in the sale price of the home, such as appliances, window coverings and light fixtures.

Whether you're buying or selling, you'll want a thorough analysis of the current, local real estate market, and you'll want to have a discussion on how your needs fit into this environment.

Please call to discuss how to make your property transactions as smooth, efficient and effective as possible.

The report is the third from a major market forecaster in the last week. The Canadian Real Estate Association and Royal Bank of Canada also predicted small gains through 2011 and 2012.

“The existing home market will remain in the balanced to sellers’ market range in 2011 and 2012,” CMHC economist Bob Dugan said. “As a result, growth in the average [Multiple Listing Service] price is expected to remain in line with economy-wide inflation in 2011 and 2012.”

Meanwhile, housing starts will be in the range of 157,300 to 192,900 units in 2011, with a point forecast of 177,600 units. In 2012, housing starts will be in the range of 154,600 to 211,200 units, with a point forecast of 183,800 units.

“Modest economic growth will continue to push employment levels higher this year and next. This, in conjunction with relatively low mortgage rates, will continue to support demand for new homes,” he said.

STEVE LADURANTAYE — REAL ESTATE REPORTER
Globe and Mail Update
Published Thursday, Feb. 17, 2011

The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2010 reached 30,595, a 14.2 per cent decrease from the 35,669 sales recorded in 2009, but a 24.2 per cent increase from the 24,626 residential sales in 2008. Last year’s number of housing sales was 10.3 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region.

The number of residential properties listed for sale on the MLS® in Greater Vancouver increased 9.7 per cent in 2010 to 58,009 compared to the 52,869 properties listed in 2009. Compared to 2008, last year’s total represents a 7.3 per cent decline compared to the 62,561 residential properties listed in 2008. The number of properties added to the MLS® peaked in April and generally declined for the remainder of the year.

“The last two years have been a bit of a rollercoaster for the real estate market. However, sales over the past six months have definitely shown a trend toward stability. We think that’s good news for home buyers and sellers,” Jake Moldowan, REBGV president said. “The Greater Vancouver housing market experienced a modest increase in home prices in 2010, and a continual decrease in the number of properties being listed for sale.”

Residential property sales in Greater Vancouver totalled 1,899 in December 2010, a decrease of 24.5 per cent from the 2,515 sales recorded in December 2009—an all time record for the month—and a 24.3 per cent decline compared to November 2010 when 2,509 home sales occurred.

More broadly, last month’s residential sales represent a 105.5 per cent increase over the 924 residential sales in December 2008, a 0.1 per cent increase compared to December 2007’s 1,897 sales, and a 12.6 per cent increase compared to the 1,686 sales in December 2006.

The residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 2.7 per cent to $577,808 between Decembers 2009 and 2010. However, prices have decreased 2.6 per cent since hitting a peak of $593,419 in April 2010.

“Although we saw some pressure on home prices throughout the year, home values in 2010 remained relatively steady in the region compared to the last few years when we witnessed much more fluctuation,” Moldowan said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,699 in December 2010. This represents a 21.1 per cent decline compared to the 2,153 units listed in December 2009 and a 43.9 per cent decline compared to November 2010 when 3,030 properties were listed.

Sales of detached properties in December 2010 reached 769, a decrease of 14.8 per cent from the 902 detached sales recorded in December 2009, and a 121.1 per cent increase from the 348 units sold in December 2008. The benchmark price for detached properties increased 4.0 per cent from December 2009 to $797,868.

Sales of apartment properties reached 811 in December 2010, a decline of 29.7 per cent compared to the 1,154 sales in December 2009, and an increase of 94.5 per cent compared to the 417 sales in December 2008. The benchmark price of an apartment property increased 1.2 per cent from December 2009 to $387,115.

Attached property sales in December 2010 totalled 319, a decline of 30.5 per cent compared to the 459 sales in December 2009, and a 100.6 per cent increase from the 159 attached properties sold in December 2008. The benchmark price of an attached unit increased 2.7 per cent between December 2009 and 2010 to $490,869.

Source: Real Estate Board of Greater Vancouver, January 5, 2010.

"Housing sales numbers were fairly typical for a November and indicate a fairly balanced market,” Jake Moldowan, president of the Real Estate Board of Greater Vancouver, said in a statement. “Activity on the buyer side has been stable, with slight increases, over the last few months while the number of homes listed for sale in our region has declined each month since we reached a peak in June,.”

According to the REBGV survey, November sales totalled 2,509, a 7.4-per-cent increase compared to October 2010 and an 18.6-per-cent decline from the the 3,083 sales in November 2009.

November sales came in slightly higher than the 10-year average for that month.

November sales also represent a 187.1-per-cent increase over the 874 residential sales in November 2008, a 13-per-cent decline compared to November 2007’s 2,883 sales, and a 6.4-per-cent increase compared to the 2,358 sales in November 2006.

Total property listings in Metro Vancouver now sit at 12,384, a 12.1-per-cent decline from last month and a 12-per-cent increase from November 2009.

The benchmark price for all residential properties in Metro Vancouver increased 4.1 per cent to $580,080 in November 2010 from $557,384 in November 2009. The price has remained virtually unchanged since June of this year.

- Source: Brian Morton, Vancouver Sun, December 3, 2010

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,509 in November 2010. This represents a 7.4 per cent increase compared to October 2010 and an 18.6 per cent decline from the 3,083 sales in November 2009.

Looking back further, last month’s residential sales represent a 187.1 per cent increase over the 874 residential sales in November 2008, a 13 per cent decline compared to November 2007’s 2,883 sales, and a 6.4 per cent increase compared to the 2,358 sales in November 2006.

“Housing sales numbers were fairly typical for a November and indicate a fairly balanced market. Activity on the buyer side has been stable, with slight increases, over the last few months while the number of homes listed for sale in our region has declined each month since we reached a peak in June,” Jake Moldowan, REBGV president said.

Total active residential property listings in Greater Vancouver currently sit at 12,384, a 12.1 per cent decline from last month and a 12 per cent increase from November 2009. New listings for detached, attached and apartment properties declined 17.1 per cent to 3,030 in November 2010 compared to November 2009 when 3,653 new units were listed.

“Home values have been relatively stable over the last five months compared to the summer period when we were seeing some downward pressure on prices,” Moldowan said. “It’s the homes priced accurately for today’s market that are receiving a lot of attention and selling right now.”

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 4.1 per cent to $580,080 in November 2010 from $557,384 in November 2009. This price has remained virtually unchanged since June of this year.

Sales of detached properties on the MLS® in November 2010 reached 1,050, a decrease of 9.8 per cent from the 1,164 detached sales recorded in November 2009, and a 226.1 per cent increase from the 322 units sold in November 2008. The benchmark price for detached properties increased 5.6 per cent from November 2009 to $799,312.

Sales of apartment properties reached 1,052 in November 2010, a decline of 24.6 per cent compared to the 1,396 sales in November 2009, and an increase of 156.6 per cent compared to the 410 sales in November 2008.The benchmark price of an apartment property increased 1.9 per cent from November 2009 to $389,168.

Attached property sales in November 2010 totalled 407, a decline of 22.2 per cent compared to the 523 sales in November 2009, and a 186.6 per cent increase from the 142 attached properties sold in November 2008. The benchmark price of an attached unit increased 4.1 per cent between November 2009 and 2010 to $488,733.

 - REBGV Stats, December 2, 2010.

“For the next year, we’re looking at favourable mortgage rates, a steady flow of migrants to the Lower Mainland, and a growing job market,” Canada Mortgage and Housing Corp. senior market analyst Robyn Adamache said in an interview about the federal agency’s housing market report that concluded sales will remain stable until mid-2011 before trending higher. “We’re looking at about 33,000 sales for Greater Vancouver [in 2011]. We’re looking at 31,000 this year. The 10-year average is about 34,000.

“Balanced market conditions that have been established in recent months will continue over the next nine to 12 months.”

The B.C. Real Estate Association also predicted in its fall housing forecast last week that B.C. housing sales, while declining 12 per cent this year to 74,950 units, will increase six per cent to 79,700 in 2011.

Adamache said that fewer new listings coming onto the market due to modest price growth, and a steady pace of sales will continue to gradually draw down the inventory of resale homes for sale.

The CMHC report predicted that the average home price in Metro Vancouver will increase 12 per cent in 2010 to $665,000, with most of the increase already having taken place. Prices are forecast to increase by three per cent next year to $685,000.

As well, new home construction in Vancouver will increase in 2011, approaching the 10-year average level as demand for new housing strengthens. “Homebuilding will increase modestly next year as developers seek to add to the stock of housing to accommodate approximately 16,000-18,000 new households each year,” said Adamache.

CMHC noted that housing starts across the province will also hold steady this year before gradually rising in 2011.

“Builders are expected to begin construction on more new homes next year in response to steady housing demand,” CMHC’s B.C. regional economist Carol Frketich said about the forecast of just under 26,000 total starts for 201, slightly below the 10-year average.

Nationally, CMHC said home construction is expected to continue easing in the final quarter of this year before stabilizing in 2011.

The BCREA reported Monday that residential sales in B.C. declined 36 per cent to 5,507 units in October compared to the same m onth last year. The average price climbed six per cent to $521,859 in October compared to the same month last year. “B.C. home sales have posted moderate gains since the summer months,” added BCREA chief economist Cameron Muir in a statement.

Year-to-date, B.C. residential sales dollar volume declined two per cent to $32.5 billion, compared to the same period last year. Residential unit sales declined 10 per cent to 64,735 year-to-date.

The report stated that the average residential price in B.C. is forecast to climb seven per cent to $498,500 this year and decline by one per cent to $495,600 in 2011.

Meanwhile, the City of Richmond is reporting that after a sluggish 2009, a record has been set in 2010 for total building permits issued in a year.

The city reported that at the end of October it has processed 1,511 building permits with a construction value of over $769 million, greatly exceeding the $163 million value in 2009 and beating Richmond’s previous record of $658 million in 2006.

“While the sheer number of projects is impressive, the city has taken a sustainable approach to development that was well thought out in our City Centre Area Plan,” Mayor Malcolm Brodie said in a statement.

~ By Brian Morton, Vancouver Sun November 16, 2010

Read more: http://www.vancouversun.com/business/real-estate/Improving+economy+mortgage+rates+boost+housing+sales+CMHC+says/3831738/story.html#ixzz15aQcRQ7V

The announcement was made Friday in Vancouver by federal Heritage Minister James Moore, with Vancouver Mayor Gregor Robertson on hand.

The award is based on a community’s achievements that demonstrate an ongoing commitment to the arts and culture.

"Vancouver is home to a vibrant and diverse arts and cultural community, and in 2011 we’ll be showcasing it throughout the city with our 125th anniversary celebrations," said Robertson.
The money will be used for Vancouver's anniversary celebrations, a literary festival, free tours of municipal sites, pedestrian spaces for public art, a commissioned artwork by a First Nations artist, a poster series about remarkable women, a mural project, and a multimedia presentation based on Aboriginal and immigrant cultural traditions.

Funding amounts vary according to the size of the municipalities named.

Two other cities — Charlottetown, P.E.I., and Levis, Q.C., — also received the 2011 award.

~ Staff Reporter, The Province November 12, 2010

Read full article on The Province

According to the MLSLink® Housing Price Index (HPI), the benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 4.6 per cent to $579,349 in October 2010 from $553,702 in October 2009. Since June, however, residential home prices in Greater Vancouver have remained relatively unchanged, declining 0.2 per cent.

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

Looking at transactions, the number of residential property sales in Greater Vancouver totalled 2,337 in October 2010. This represents a 5.3 per cent increase compared to September 2010 and a 36.9 per cent decline from the 3,704 sales in October 2009.

More broadly, last month’s residential sales represent a 71.3 per cent increase over the 1,364 residential sales in October 2008, a 22.8 per cent decline compared to October 2007’s 3,028 sales, and a 14.1 per cent decline compared to the 2,722 sales in October 2006.

“As we enter the final two months of the year, buyer demand is in closer alignment with supply than we’ve seen for most of 2010,” Moldowan said. “Those buying today recognize that they still have a chance to enter the market with near-record low interest rates, while gradual reductions in inventory have eased downward pressure on prices.”

Total active listings on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 14,075, an 8.6 per cent decline from last month and a 16.4 per cent increase from October 2009. New listings for detached, attached and apartment properties declined 25.7 per cent to 3,698 in October 2010 compared to October 2009 when 4,977 new units were listed.

Sales of detached properties in October 2010 reached 976, a decrease of 34.4 per cent from the 1,487 detached sales recorded in October 2009, and a 98 per cent increase from the 493 units sold in October 2008. The benchmark price for detached properties increased 6.3 per cent from October 2009 to $796,883.

Sales of apartment properties reached 984 in October 2010, a decline of 38.8 per cent compared to the 1,607 sales in October 2009, and an increase of 52.1 per cent compared to the 647 sales in October 2008.The benchmark price of an apartment property increased 2.4 per cent from October 2009 to $390,074.

Attached property sales in October 2010 totalled 377, a decline of 38.2 per cent compared to the 610 sales in October 2009, and a 68.3 per cent increase from the 224 attached properties sold in October 2008. The benchmark price of an attached unit increased 4 per cent between October 2009 and 2010 to $487,530.

Source: Real Estate Board of Greater Vancouver, November 2, 2010

In the October 2009 Monetary Policy Report the Bank of Canada projected potential growth of 1.5%, 1.9% and 1.9% for 2010 to 2012, respectively. This projection reflected an assumption of “trend” labour productivity growth of a mere 0.2% this year followed by gains of 0.9% and 1.2% in 2011 and 2012, respectively. “Actual” labour productivity grew, on a year-over-year basis, in the first half of this year at 1.2% with the third-quarter 2010 rate projected to be around 1.3%. Suggesting the possibility of the Bank revising up both productivity and potential growth in 2010; however, in the past, the Bank’s estimate of trend has deviated by more than a percentage point from actual growth.

It is also worth mentioning that the Bank of Canada acknowledged that inflation has generally come in below expectations in recent months, which in part reflects indications of a larger output gap then assumed and reflects the downward revision to growth (and possibly an upward revision to potential). With the closing of the output gap pushed further into the future, “both total CPI and core inflation are now expected to converge to 2% by the end of 2012.”

British Columbia's residential housing construction continued to rebound in September with another boost in new-home starts just as starts continued to slow on a nationwide basis, Canada Mortgage and Housing Corp. reported Friday.

Builders started work on 2,305 new homes in B.C. in September, bringing the province's total starts to 17,791 for the first nine months of 2010, a 91-per-cent increase from the same period of 2009.

However, September's starts, extrapolated over 12 months, raised the pace of construction to 26,500 units on what economists call the seasonally adjusted annual rate.

“A pick up in the pace of multiple-unit starts was behind the upward trend,” Carol Frketich, Canada Mortgage and Housing's B.C. regional economist said in a news release.

“The rate of single-detached starts remained relatively stable, while the rate of multiple-unit starts rose to 18,200 [on a seasonally adjusted annual rate] in September from 11,700 in July.”

Metro Vancouver accounted for 71 per cent of B.C.'s total September housing starts with builders beginning work on 1,644 homes.

“Multiple family units dominated September's residential construction activity in [Metro Vancouver],” market analyst Robyn Adamache said.

“Although most of the new multiple family units built were apartment condominiums, we are starting to see a growing number of homes with secondary suites being constructed.”

Canada Mortgage and Housing reported that Metro Vancouver saw 1,251 multi-family starts in September, up from just 489 in the same month a year ago during the bottom of the construction downturn.

Single-family home starts in September were down to 393 in Metro Vancouver from 453 in August, and not too far ahead of September of 2009.

September's housing-starts figures follow from the release of August building-permit statistics by Statistics Canada Thursday.

Those statistics showed a significant bump in the value of residential building permits issued to builders, which Adamache said was the result of builders jumping back into multi-unit developments in a bigger way.

Nationally, the annual pace of home construction slowed to 186,400 units in September from 189,300 units in August, Canada Mortgage and Housing reported.

By Derrick Penner, Vancouver Sun - October 8, 2010

Read more: http://www.vancouversun.com/business/real-estate/Housing+starts+another+sign+construction+rebound/3644963/story.html#ixzz12BOpS1Zh

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,220 in September 2010. This represents a 0.8 per cent increase compared to August 2010 and 37.6 per cent decline from the 3,559 sales in September 2009.

In comparison, last month’s residential sales represent a 40.1 per cent increase over the 1,585 residential sales in September 2008, a 20 per cent decline compared to September 2007’s 2,776 sales, and an 11.9 per cent decline compared to September 2006’s 2,519 sales.

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

Since spring, housing prices in the region have trended slightly downward, with a decrease of 2.7 per cent compared to the all-time high reached in April when the MLSLink® Housing Price Index (HPI) residential benchmark price was $593,419. The overall benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5.5 per cent to $577,174 in September 2010 from $547,092 in September 2009. The current price remains consistent with last month, rising just 0.1 per cent between August and September 2010.

Total active property listings posted on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 15,401, basically unchanged compared to last month and a 22 per cent increase from September 2009. Over the last three months, active listings in the region have declined 12.3 per cent.

New residential property listings posted in September declined 17.6 per cent to 4,731 compared to September 2009 when 5,746 new units were listed.

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

Sales of detached properties in September 2010 reached 866, a decrease of 39.1 per cent from the 1,423 detached sales recorded in September 2009, and a 58.6 per cent increase from the 546 units sold in September 2008. The benchmark price for detached properties increased 6.7 per cent from September 2009 to $790,992.

Sales of apartment properties reached 971 in September 2010, a decline of 34.7 per cent compared to the 1,489 sales in September 2009, and an increase of 27.1 per cent compared to the 764 sales in September 2008.The benchmark price of an apartment property increased 3.7 per cent from September 2009 to $388,373.

Attached property sales in September 2010 totalled 383, a decline of 40.1 per cent compared to the 647 sales in September 2009, and a 39.3 per cent increase from the 275 attached properties sold in September 2008. The benchmark price of an attached unit increased 5.2 per cent between September 2009 and 2010 to $490,385.

Source: REBGV Stats - October 4, 2010

"Higher mortgage rates in tandem with a further appreciation in home prices boosted the monthly costs associated with carrying a mortgage on a typical home," said RBC senior economist Robert Hogue. "This extended the deteriorating trend in affordability since the middle of last year."

But despite the downturn, he said affordability remained "within a safe range."

The RBC Housing Affordability Measure calculates the amount of pre-tax household income needed to service the costs of owning a home.

An affordability reading of 50 per cent means that home ownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household's monthly pre-tax income.

During the second quarter of 2010, the national level rose between 1.1 and 2.1 percentage points across the housing types tracked by RBC.

A two-storey home remained the least affordable and experienced the largest increase, climbing 2.1 percentage points to 48.9 per cent. That was followed by the detached bungalow, which rose by 1.9 percentage points to 42.9 per cent and the townhouse, which climbed 1.1 percentage points to 34.1 per cent.

A condominium was the most affordable, rising 1.1 percentage points to 29.3 per cent.

According to the report, the slide in affordability over the past year has reversed about half of the gains accrued in 2008 and early 2009.

Ontario and B.C. saw the most significant deterioration in affordability in the second quarter, although there was some improvements in specific housing types, such as Alberta condominiums and Saskatchewan townhouses. All other provinces showed modest erosion, with the exception of two-storey homes in Manitoba where the rise in the RBC measure was quite substantial.

In Quebec, affordability was hampered by a rise in home prices, while Atlantic Canada felt a cooling in the housing market as well, which also affected affordability.

"Current levels of affordability suggest some greater-than-usual stress weighing on Canadian homebuyers, but this does not represent an imminent threat to the market," said Hogue. "While we expect rising interest rates to increase mortgage servicing costs, a levelling off in home prices and increasing household income will partly offset the negative effect."

Staging is a proven way to make that all-important first impression; it is grooming and decorating a home to properly showcase its features and make it more attractive to potential buyers.  Staging really helps buyers envision themselves living in the space!

Top 9 reasons to stage you home for sale:

Get the money you want
If you are serious about getting the biggest return on your investment, you need to ensure that the property's best assets are put forward. Statistics clearly show that staged homes sell for more money than comparable houses (a conservative estimate is between 2% and 10% more). A down-to-earth appraisal of staging's effect is offered by HomeGain, an online resource for homebuyers and sellers: Their 2003 poll of 2,000 real-estate agents found that staging typically costs from $212 to $1,089 and adds from $2,275 to $2,841 to a home's selling price - a "return" of from two to 13 times the cost of staging. Stage a home for sale and you'll see the difference in the way people (including realtors) will react to it.

Reduce time on the market
Statistics are not easy to come by as they change with the market conditions, but according to statistics compiled by Stagedhomes.com, unstaged homes spent an average of 22 days on the market. Those staged by a professional spent an average of 11 days on the market.

Stand out from the crowd
In a slow market, the buyers are kings (and queens) and you need every competitive advantage you can get. If your house looks and feels attractive, the potential buyers will notice the difference and will want YOUR house.

Bring more people in
To stage a home for sale means maximizing your chances. It's the numbers game - more people see and LIKE your house, better are your chances of success. By using staging techniques, such as depersonalizing, you will make your property appealing to more potential buyers.

Get higher market price evaluation
The best time to stage a home for sale is BEFORE a realtor shows up to evaluate your property. Being ready will demonstrate to the real estate agent that you are a savvy home seller and he/she will put a higher price on your property, as a staged home will «show» better and will be easier for them to sell.

Attract best real estate agent
A realtor will evaluate the selling potential of your property against the risk he/she takes to list it. His/her reputation is at stake and the costs of marketing your listing are substantial(in time and money). The best looking properties will get the best agents who will work harder to show them and will sell them faster.

Enhance the advertising appeal
Pictures are worth a thousand words. Especially these days, when most shoppers will preselect the properties they are interested in through Internet, you need to have the best pictures possible to move potential buyers to the next phase - a visit.

Show you love your house
Show it with pride. Most buyers prefer a home in a move-in condition and a well maintained home inspires confidence. And you'll not be getting ridiculously low offers from bargain hunters....

Avoid potential price reduction
A property is HOT for the first few weeks it's listed. If it does not attract buyers within that timeframe, chances are the realtor will try to convince you to reduce the price. When you stage a home for sale, the investment in staging is much smaller than reducing the asking price, you'll get it back at the sale - so protect your equity.

For more information on home staging, click here!

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In British Columbia, builders must be licensed by the Homeowner Protection Office and arrange for third-party home warranty insurance in order to obtain a building permit or commence construction on a new home.

Homebuyers should check to see if their builder is licensed. The Homeowner Protection Office has the only public registry of Licensed Residential Builders which can be searched by licensee name, company name or geographic area.

Minimum coverage and allowable exclusions for third-party home warranty insurance are set by legislation. As a minimum, homes built by Licensed Residential Builders must have 2-5-10 Year Home Warranty Insurance - the strongest construction defect insurance in Canada. Some new homes have warranty insurance coverage that exceeds the minimum requirement.

Home warranty can only be provided by insurance companies approved by the provincial Financial Institutions Commission to provide home warranty insurance. Ask what type of warranty is included in the new home and get it in writing.

For more information on new home warranties, just ask us or visit the provincial Homeowner Protection Office. 

This contrasts sharply with a report last week from the Canadian Centre for Policy Alternatives, which said Canada's "housing bubble" is "an accident waiting to happen."

Back at the Conference Board, economist Mario Lefebvre acknowledges that home sales have fallen sharply this year, but points out that this is hardly a sign of distress after a period when sales were far too high to be sustainable. Instead, he concludes, it's just a return to normal.

More important, on the price front, "there's been no decline to talk about," Lefebvre said.

Prices rose in July from June in 19 of 28 Canadian cities and all 28 had prices that were above year-ago levels.

That's not to say that prices will keep rising.

Lefebvre expects to see a "pause" in price growth for most cities in the next year or so as Canada's economic growth slows. And prices could edge down by two to four per cent in the hottest western markets, like Vancouver, Calgary, Edmonton, Regina and Saskatoon. But that's hardly a bust.

This is a stark contrast to the truly frightening housing outlook published last week by the Canadian Centre for Policy Alternatives, a left-leaning non-profit group that said a worst-case scenario for the bursting of the housing "bubble" would see prices plummet by 20 to 38 per cent in the biggest Canadian cities. Even its best-case scenario would envision drops of between 19 and 29 per cent.

This is a truly horrendous scenario. The catastrophic recent U.S. housing meltdown saw a national drop of about 30 per cent.

It's hard to accept that people looking at the same Canadian housing market could come to such wildly different conclusions, but if you look behind the numbers, a clearer picture begins to appear.

The Centre for Policy Alternatives analyst, David Macdonald, begins with the assumption that there's a reasonable range of housing prices determined mostly by people's median income. (Median income is the level at which half the population is above and half is below.)

Macdonald looked back at the 1980s and 1990s and found that during the whole period, home prices stayed between three and four times the median income, while home prices today seem badly out of whack at between 4.7 and 11.3 times this measure.

But maybe that's because the yardstick is out of whack. Lefebvre of the Conference Board wouldn't dream of using this measure.

That's because it doesn't take into account the huge impact of mortgage interest rates, which have varied greatly over the years, directly affecting people's ability to pay for a home.

At today's low mortgage interest rates, housing affordability is pretty good in most Canadian markets, Lefebvre said, and he's not too worried about a rise in interest rates, since rates are rising only gradually.

As well, he said, Macdonald's concern that home prices have risen faster than incomes over the past decade overlooks a crucial fact: that home prices lagged badly during the previous decade.

Robert Hogue, a senior economist at the Royal Bank of Canada, has worked out the numbers on affordability in some detail, and his conclusion is essentially the same as Lefebvre's: there's no bubble today and little prospect of significant price declines tomorrow.

Hogue suggests that a possible exception is Vancouver, where prices are sky-high, and maybe Montreal, where prices are still fairly low, but have shot up rapidly in recent years.

While it's true that interest rates will put a little more stress on homeowners over the next year or two, Hogue simulated this by calculating the impact of adding 1.5 percentage points to today's mortgage rates. He found little cause for concern.

His finding: affordability would deteriorate only moderately, with home ownership costs representing about 46 per cent of median income for a typical bungalow, up from 41 per cent today.

This would still fall far short of the 54-per-cent home ownership burden that helped spur a severe housing bust in 1990. And the 46-per cent estimate is probably high, since rising Canadian incomes will partly offset rising interest rates.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,202 in August 2010. This represents a 36 per cent decline from the 3,441 sales in August 2009, the second highest selling August ever recorded, and a 2.4 per cent decline compared to July 2010.

From a wider perspective, last month’s residential sales represent a 40.4 per cent increase over the 1,568 residential sales in August 2008, a 34.9 per cent decline compared to August 2007’s 3,384 sales, and a 26.6 per cent decline compared to August 2006’s 2,998 sales.

New listings for detached, attached and apartment properties declined 17.5 per cent to 3,750 in August 2010 compared to August 2009 when 4,544 new units were listed. Total active listings in Greater Vancouver currently sit at 15,421, a 6.1 per cent decline from last month and a 29 per cent increase from August 2009.

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

Since spring, housing prices have decreased 2.8 per cent compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.9 per cent to $576,597 in August 2010 from $539,600 in August 2009.

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

Source: REBGV

It is 1,554 square feet with a private back yard, deck, wood-burning fireplace, garage, and ensuite laundry, all within the heart of Vancouver’s central west side neighbourhood of False Creek. It has one of the best views in the city and is mere steps to Granville Island.

Price tag: $795,000.

The catch? It is owned by the City of Vancouver, and is leased until 2036. Whoever buys the property is buying the prepaid lease and the right to live there until that time. Almost all of False Creek is comprised of leasehold properties owned by the city and all are priced well below market value.

Would-be buyer Ryan Walters recently considered a 1,000-square-foot leasehold property in False Creek priced at $300,000. The townhouse also had a water view and was a stone’s throw to Granville Island. It sold a few days ago, and Mr. Walters, who was hesitant to dive into leasehold ownership, wonders if he missed out on a deal or a nightmare.

“If you were looking at a freehold condo, it easily would be $1.2[-million] or $1.5-million for that,” he says. “If you’re just looking for lifestyle, it’s probably something to look into for sure, because that’s one of the best neighbourhoods in the city.”

Mr. Walters, a 30-year-old machinist from Ontario, rents an apartment on Main Street. He is one a growing group of Vancouver residents who’ve decided that renting and investing money elsewhere may be a better option than depending on a home for equity. Because Vancouver house prices are still high and the market is uncertain, a leasehold property may work for someone like Mr. Walters. Leaseholds are generally spacious and located in central, desirable locations.

“If you do the math, that works out to some ridiculously low rent …,” he says.

“The big question in my mind is, is it going to be a crazy awesome deal or is everyone going to get shafted?’

In Vancouver, there are hundreds of leasehold condos in the West End, and leasehold townhouses and detached houses in False Creek, Fairview Slopes and Point Grey. They are either owned by the city, the federal government, the UBC Properties Trust, the Musqueam native band or private individuals. Leasehold ownership means the tenant owns the right to use the property for a given amount of time, which is usually 99 years.

As to whether leasehold ownership is a good deal depends on whom you ask. There are risks, such as if it’s not prepaid for the term, there are regular lease payments on top of mortgage payments. Those payments could come up for renewal that is based on a much higher market value than when the property was purchased.

The most famous example of a hike in lease payments was in 1995, when Musqueam Park leases came up for renewal after 30 years. The Musqueam band raised the payments in accordance with then-current market values on the tony west side properties. It meant average lease payments went from about $400 to more than $2,000 a month.

Senior mortgage consultant Rob Regan-Pollock helped several devastated clients through the price hike and ensuing court battle, including one who was forced to declare bankruptcy. That client emerged from the crisis and went on to purchase land again – freehold.

“Their lease payments were in some cases higher than their mortgage payments,” Mr. Regan-Pollock says.

The other risk is that a leasehold property is marketable only when there’s lots of time left on the lease. As it gets closer to its renewal date, its value is certain to drop. Each lender is different, but banks generally only finance leaseholds that have at least five years remaining on top of the amortization period, Mr. Regan-Pollock says. But most leaseholds in Vancouver are young, which means they’re still marketable.

If a 30-year-old buys a leasehold with 80 years left, for example, he or she could live there for 40 years and still have a marketable property to the average lender.

“We run into difficulties with financing leasehold when the lease is coming up for renewal. If you’re the first in, it’s fine. If you’re the last one in, it gets tricky. … You’ll have limited marketability. You need someone willing to take the chance of occupying it and seeing if the lease is renewed and how much the escalation will be, because the reset of the lease terms are going to be done in current dollars. And it will be a huge increase from 70 years ago.”

Because some deals have gone sour, leasehold ownership has a bad reputation among some in the industry. Financial lecturer, author and former MP Garth Turner advises consumers to steer clear.

“In my experience it’s much more of a B.C. phenomenon than anywhere else,” says Mr. Turner, who operates a popular blog called the Greater Fool. “From an investment point of view, leaseholds are generally not a good investment. They should be selling at a discount to freehold properties, for obvious reasons.

A leasehold property is only of value, Mr. Turner says, when compared with the cost of renting.

“It is only the rent equivalent that gives it intrinsic value.”

Realtor Ken Leong has a $500,000 leasehold waterfront townhouse currently listed. He says it would be worth $800,000 as freehold.

“The price of entry is cheaper because you don’t own the land. You look at it like you’re renting an apartment,” he says. “You don’t want to pay the $3,000 a month to own that $800,000 place. You are saving money over the long term.”

Financial securities adviser Susan Stevenson purchased a prepaid leasehold apartment downtown five years ago, and she hasn’t looked back. She had it recently appraised and it’s gone up in value nearly $200,000. The apartment has stunning views of English Bay, and Ms. Stevenson can be at work within five minutes.

Like any condo, she pays monthly maintenance fees on top of her mortgage. Her lease has more than 70 years remaining on it.

“I probably won’t be here when it expires,” she says, laughing. “So for me, that wasn’t a concern. If I am here another 25 or 30 years, it will still be worth quite a lot because it’s waterfront property.”

Contrary to popular thinking, leaseholds do appreciate, but just not as much as a freehold, Mr. Regan-Pollock says.

“They appreciate because rents also escalate. When you buy leasehold property, you are buying the right to occupy that unit in today’s dollars – which down the road will be more, because everything goes up after a while.”

It’s like any major financial decision, he adds. You need a long-term plan.

“Make sure there’s a minimum of 30 years on the lease when you plan to exit so that someone else can have a successful run with it, and the next buyer will have to deal with the exit plan.”

In July, sales in all 28 markets totalled 271,717 units, seasonally adjusted at an annual rate for a decline of 11 per cent, the Conference Board said.Photograph by: Postmedia News files, .OTTAWA — Existing home sales plunged 11 per cent between June and July and have fallen 31 per cent year over year, the Conference Board said in a report Friday.

July resales were below year-earlier levels in all of the 28 markets tracked by the board and at least 10 per cent lower in 26 areas.

The worst declines were posted in the biggest markets, Toronto and Vancouver, where sales declined 13.6 per cent and 20.1 per cent, respectively.

Board economist Robin Wiebe said it is possible the drop came as a result of the application in Ontario and B.C of the harmonized sales tax in July. But aside from associated costs like legal fees, the HST applies only to sales of new homes and not resales, so it would have been more a matter of investor psychology than anything, he said.

Further, he added, the July numbers do not indicate a market in free fall but "a throttling back to less elevated levels," from the red-hot pace witnessed earlier in the year.

"I'd be hesitant to predict another big drop ahead," Wiebe said. "Canada's economic conditions seem sound, so conditions are in place for balanced markets to persist."

In July, sales in all 28 markets totalled 271,717 units, seasonally adjusted at an annual rate for a decline of 11 per cent, the board said.

The sales action in July has in fact left markets balanced in all but four of the 28 markets. The remaining four — Victoria, Calgary, Edmonton and Regina — are now considered buyers' markets.

The board's numbers are in line with those released by the Canadian Real Estate Association in mid-August showing July sales fell 30 per cent from a year ago.

A steady influx of new listings has helped create a balanced ‘typical spring’ housing market in the Greater Vancouver region.

The Real Estate Board of Greater Vancouver (REBGV) reports that new listings for detached, attached and apartment properties in Greater Vancouver totalled 7,004 in March 2010. This represents a 60 per cent increase compared to March 2009 when 4,385 new units were listed, and a 52.1 per cent increase compared to February 2010 when 4,606 properties were listed on the Multiple Listing Service® (MLS®).

At 13,538, the total number of property listings on the Multiple Listing Service (MLS®) increased 19 per cent in March compared to last month, but remains 7.6 per cent below this time last year.

“The total number of homes listed for sale on our MLS® is at its highest level in 10 months, which translates into more options and variety for those looking to buy during the traditionally busy spring period,” Jake Moldowan, REBGV president said.

Residential property sales in Greater Vancouver reached 3,137 in March 2010, a 38.5 per cent increase compared to March 2009, a 4.7 per cent increase over March 2008, and a 12.4 per cent decrease compared to March 2007. The current figure also represents a 26.8 per cent increase compared to the 2,473 sales recorded in February 2010.

“With a sales-to-listing ratio of 23 per cent, we see a healthy balance between buyer demand and seller supply in the marketplace,” Moldowan said.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 20.3 per cent to $584,435 from $485,845 in March 2009. This price is 2.8 per cent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

Sales of detached properties in March 2010 reached 1,336, an increase of 49 per cent from the 897 detached sales recorded in March 2009 and a 19.7 per cent increase from the 1,116 units sold in March 2008. The benchmark price for detached properties increased 23.3 per cent from March 2009 to $800,341, but declined 0.6 per cent compared to last month when the benchmark price was $800,796.

Sales of apartment properties in March 2010 reached 1,252, an increase of 28.3 per cent compared to the 976 sales in March 2009 and a decline of 8.6 per cent compared to the 1,370 sales in March 2008.The benchmark price of an apartment property increased 17.3 per cent from March 2009 to $395,507 and is up 1.2 per cent compared to last month when the benchmark price was $390,899.

Attached property sales in March 2010 totalled 549, an increase of 40.1 per cent compared to the 392 sales in March 2009 and a 7.4 per cent increase from the 511 attached properties sold in March 2008. The benchmark price of an attached unit increased 17.3 per cent between March 2009 and 2010 to $493,263, but declined 0.5 per cent compared to last month when the benchmark price was $495,496.

OTTAWA — With a late-day announcement on Tuesday, Bank of Montreal became the last of Canada's major banks to raise its mortgage rates this week.

BMO hiked its five-year fixed-rate closed-term mortgage by 60 basis points to 5.85 per cent, matching increases announced earlier in the day by Canadian Imperial Bank of Commerce, Bank of Nova Scotia, National Bank and Desjardins Group.

Royal Bank of Canada, Toronto-Dominion Bank and Laurentian Bank announced on Monday that their benchmark five-year rates would also increase to 5.85 per cent.

"The era of historically low mortgage rates is coming to an end," said Sal Guatieri, senior economist, BMO Capital Markets.

As with the other banks, BMO is also raising its three-year fixed-rated, closed-term mortgage, in this case by 20 basis points to 4.35 per cent, and its four-year, fixed-rate closed-term rate will increase by 40 basis points to 5.34 per cent.

BMO said in a release it will still offer its lowest five-year fixed-rate mortgage at 3.75 per cent. Canadians who want a fixed-rate mortgage should lock in now "as pressure builds for rates to rise," the bank said.

Scotiabank is raising its four-year closed-term mortgage by 40 basis points to 5.34 per cent, which is also in line with the other banks, but a 20 basis point increase to its three-year closed-term mortgage brings that rate to 4.5 per cent, higher than the other banks, though lower than the 4.7 per cent posted by TD.

Desjardins Group said it would increase its four-year rate to 5.35 per cent, up 41 basis points, while its three-year rate increases 40 basis points to 4.55 per cent. It also lowered its six-month closed rate and its one-year closed rate by five basis points to 3.45 per cent.

All of the increases announced on Tuesday take effect on Wednesday, while the rate hikes announced Monday took effect on Tuesday.

National Bank, which lowered its five- and four-year fixed rates earlier this month, was the only bank to announce a change to a variable-rate mortgage, with its five-year variable-rate, closed-term mortgage now at 5.85 per cent.

Anticipation over the Bank of Canada raising its overnight lending rate, possibly ahead of schedule, is pushing up bond yields, said Benjamin Tal, senior economist with CIBC World Markets on Monday. Rising yields put pressure on fixed-rate mortgages.

The central bank has said it will maintain its key rate at a record low 0.25 per cent until mid-2010 unless inflation becomes a concern.

RBC and TD also hiked four-year term closed mortgage rates by 40 basis points to 5.34 per cent.
RBC's three-year product rose by 20 basis points to 4.35 per cent, while the equivalent at TD gained 40 basis points to 4.7 per cent.

© Copyright (c) Canwest News Service

OTTAWA — Residential work will lead the construction industry in the near future as institutional construction feels the bite of reduced stimulus spending and rising commercial vacancy rates hold back a rebound in that sector.

Reports from the Conference Board of Canada released Monday paint a rosy picture for residential construction, while noting that non-residential construction always lags behind the economy.

"At their ebb in the early spring of 2009, (housing) starts had fallen to their lowest point since the mid-1990s," Michael Burt, the board's associate director, industrial economic trends, writes in a report Canada's residential construction industry. "Now, nearly one year later, some people are openly discussing the possibility of a housing bubble in Canada, and the federal government has decided that it is prudent to tighten mortgage-lending rules."

The board forecasts that housing starts will increase to 180,500 this year from 147,600 units in 2009, while new-home prices will grow 2.4 per cent this year and will continue to increase until 2014.

The report attributes the resurgence in the residential market to record-low interest rates and recovering employment prospects. Consumer confidence is also a factor, though the report notes that the number of people who say now is a good time to buy a home is almost equal to the number who say it is not.

"Once the Bank of Canada begins to raise interest rates later this year, mortgage rates are also expected to rise. Mortgage rate increases will take place gradually over a period of about 18 months to two years, but they will restrain the industry's growth later this year and beyond," Burt writes

As the residential market rebounds, so will costs, with labour and materials both becoming pricier.

"After falling to a four-year low of $2.5 billion in 2009, industry pre-tax profits have begun to improve in tandem with rising revenues. However, it will be 2012 before profits return to their pre-recession peak," he says.

But profits in non-residential construction will decline to a six-year low in 2010, Burt writes in a separate report on that sector, falling 19 per cent to $918 million as total non-residential investment drops 2.3 per cent.

"Interest rates are expected to begin rising in the second half of this year, large government deficits ensure that stimulus spending will eventually be reined in, and it will take another year before employment surpasses its previous peak.

"All these factors suggest that the industry's recovery will be slow to materialize — and shallow when it does," he writes, adding that profits are not expected to return to their pre-recession peak until 2014.
Still, the overall effects of the financial crisis on the construction industry are expected to be mild compared with previous economic downturns, he writes.

While industrial construction has been a major recipient of stimulus spending, the report notes that the value of industrial permits is below the level reached at the beginning of 2008.

"Commercial-permitting activity has begun to edge up in recent months, thanks to improved spending on office buildings. But here too, overall spending remains weak," Burt writes. "Perhaps most ominous is the downward trend in institutional permits. Although expected as stimulus spending fades, this suggests that the industry's one source of strength will gradually become a source of weakness in coming months."

© Copyright (c) Canwest News Service

By Brian Morton, Vancouver Sun - March 12, 2010

B.C. should see its GDP rise by 3.4 per cent this year, making it among Canada's economic growth leaders, according to an RBC Economics report released Thursday. "We have good growth prospects for B.C. in 2010 and 2011, reflecting more favourable global financial conditions, improved prospects in the U.S. and a stronger economy related to the 2010 Olympic and Paralympic Games," Craig Wright, senior vice-president and chief economist, RBC, said in an interview about the RBC Economics Provincial Outlook. "And that will continue as we go forward. "Also, the housing market in B.C. has bounced back and is producing continued support for the economy."

According to the report, B.C.'s forecast GDP rise of 3.4 per cent compares favourably to Canada's projected 3.1-per-cent growth in 2010.

The report said B.C.'s forecast growth rate represents a significant improvement compared to the contraction of 2.5 per cent in 2009, which marked B.C.'s worst performance since 1982.

However, the report also notes that B.C.'s forecast growth of 3.4 per cent in 2011 is slower than the national average of 3.9 per cent, mostly because of the removal of the "stimulus" the 2010 Olympics and Paralympic Winter Games provided.

Wright said it is also a reflection that in 2011, other provinces will begin bouncing back as well.

Wright said the 2010 Olympics has already provided a boost to tourism, retail trade and other services, adding that the Games will help speed up an emerging economic recovery, while positioning B.C. "as a top destination for travelling, emigrating and doing business."

The report also said that B.C.'s economy should continue to benefit from very low interest rates and that housing starts are expected to rise to 25,600 units in 2010, after falling to 16,000 units in 2009. However, the HST is expected to temper new home building in the second half of the year.

The outlook for B.C.'s labour market is also encouraging, with a predicted return to pre-recession levels by the end of the year, with RBC forecasting a rise in job growth of 2.1 per cent this year compared to a 2.4-per-cent decline in 2009. The unemployment rate should average 7.7 per cent, slightly higher than last year's 7.6 per cent, because of the entry of more people into the labour market.

Wright said capital investment should also pick up in B.C., "thanks in large part to strength in the energy and mining sectors."

Meanwhile, Central 1 Credit Union chief economist Helmut Pastrick agreed, in an interview, that B.C. should see renewed growth this year, although he assessed the RBC report as a bit too rosy.

"I'm a little lower on the growth rate [than RBC]," said Pastrick. "I see about 2.8 per cent this year and 3.0 per cent next year.

"And [RBC] is assuming stronger U.S. growth and more housing starts than I do. They have it at 25,600, while I have it at 23,000. But the difference [in RBC's and Pastrick's forecasts] isn't that large."

Nationally, the RBC report forecast unemployment rates to average 8.4 per cent in 2010 before falling to 7.7 per cent in 2011. It also said housing starts nationally are expected to grow to 184,000 in 2010, up from 149,000 in 2009.

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

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

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

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

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

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

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

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

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

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

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

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

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