Come down to my Open House!

Saturday, April 27 2pm to 4pm & Sunday, April 28 2 to 4pm

3007-1008 Cambie Street Vancouver, BC

2 Bedrooms and 2 Bathrooms 900sqft

Contact Carmen @ 604-218-4846 for further information!

Open House:  #202-1396 Burnaby Street

Saturday, April 20 and Sunday, April 21 from 2 to 4pm

#202-1396 Burnaby Street: Asking $419,000 1 bed 1 bath 782 sqft

Welcome to one of West End's most desirable buildings -- The Brambleberry. Only 2 blocks from English Bay. This cherry blossom tree lined street is situated close to shops, transportation and Seawall. West-facing balcony with a peek-a-boo ocean view, canopied by luscious cherry blossoms in the spring. Buy with ease into this problem free building which was repainted, re-plumbed and re roofed along with other common area updates. This spacious one bedroom offers an Open living area (approx. 23 X 13) perfect for entertaining guests with the option to make into 2nd bedroom. Tastefully decorated with shoji-screen feature walls, insuite laundry and an abundance of storage.

CONTACT CARMEN @ 604-218-4846 WITH ANY QUESTIONS AND IF YOU WANT A PRIVATE VIEWING!

The City of Vancouver has ranked fifth in the annual fDi (foreign direct investment) “Cities of the Future” list. In fact, all three of Canada’s major cities ranked well. Toronto and Montreal edged out Vancouver to claim the third and fourth spot respectively. 

Top 10 Cities of the future (Americas)

Here is how Vancouver stacked up against cities of similar size:

These rankings were based on cities with an immediate city population of more than 500,000 plus a metropolitan area of more than 1 million, or a metropolitan area of more than 2 million people.

The fDi (foreign direct investment) “Cities of the Future” ranking shortlists over 400 cities across North and South America of different sizes in different categories. Categories include “Quality of Life,” “Business Friendliness,” “Cost Effectiveness,” “ Infrastructure,” “Human Resources,” “FDI Promotion Strategy” and “Economic Potential,” each ranked for various sizes of cities. Cities are judged by a panel examining expert opinion and independent data. fDi is a division of Financial Times Ltd., providing leading industry insight on globalisation and foreign direct investments intelligence.

Greater Vancouver Real Estate Market: March 2013

The big lesson this month is that you can have a balanced market, but that doesn’t mean it’s typical. “Balanced” simply indicates the sales-to-active-listings ratio, which rose to 15.2 percent in March, according to the Real Estate Board of Greater Vancouver.

The REBGV defines a balanced market as anywhere from 12 to 19 per cent. The Greater Vancouver MLS® market was stuck below 12 per cent since July 2012 until it squeaked to 12.2 per cent in February. The REBGV calls anything under 12 per cent a buyer’s market, but, again, the name doesn’t really tell the story. Buyers weren’t buying at typical rates.

So even though the sales-to-active-listings ratio tells us the market is now balanced, the sales and listings numbers say it’s kinda wonky.

Sales and Listings

The 2,347 sales recorded around Greater Vancouver in March were 30.6 per cent above February’s sales, and that’s as it should be as the market hits its spring stride.

However, compared to other Marches, 2,347 sales is slow: 18.3 per cent below March 2012, and 42.5 per cent below March 2011 (an unusually busy year). It’s the second-lowest since 2001, in fact, and 30.2 per cent below the 10-year average for March.

To put it graphically…

REW.ca based on REBGV data

New listings also lagged. They were up only 0.1 per cent over February, and 17.2 per cent lower than March 2012. That puts them at 14.4 per cent below the 10-year March average.

March saw 15,460 Greater Vancouver homes for sale on the MLS, which is up only 4.5 per cent over February. Slow sales must account for the increase in active listings, because there weren’t enough new listings to make up the difference.

Neither sellers nor buyers are rushing in to end the standoff we’ve been witnessing  since last summer. And that means that prices aren’t moving much either.

Benchmark Price (MLS® Home Price Index)

As REBGV president Sandra Wyant puts it: “While home sales were below what’s typical for March, we are seeing more balance between the number of sales and listings on the market in the last two months, which is having a stabilizing impact on home prices.”

In general, more expensive areas are seeing bigger drops in benchmark prices. The price of a typical detached house on the West Side of Vancouver dropped the hardest of the 20 communities surveyed by the REBGV; it fell 9.1 per cent from a year earlier, compared to a region-wide decline of 5 per cent. The West Side benchmark is currently $2.06 million, still the highest in all of Canada.

Richmond has also seen a y/y dip of 8.4 per cent, and now sits at $938,100.

In West Vancouver and Burnaby South, the benchmark price of a detached house dropped 4.9 per cent to $2,026,400 and $923,900. North Vancouver is the only other municipality where the benchmark house price is over $900,000. At $936,100, it has declined just 2.4 per cent from March 2012.

However all of the most expensive municipalities except for West Vancouver saw small increases in detached house prices compared to February.

Townhouse and condo prices have seen consistent y/y drops, but less so than houses. And m/m changes have all been within a very small range.

See the REBGV full stats package for details broken down by city and municipality.

We could experience a sluggish market all the way through 2014, says TD Bank Senior Economist Sonya Gulati, who will be keynote speaker at the upcoming Vancouver Real Estate Forum. She provided this table with TD Economics’ sales and prices forecast for Greater Vancouver, based on numbers from the Canadian Real Estate Association:

OPEN HOUSE: SATURDAY APRIL 6TH 2PM TO 4PM

36-9000 ASHGROVE CRESCENT, BURNABY BC

$433,500

3 BEDROOMS & 2.5 BATHROOMS

1410 SQFT 2 LEVEL TOWNHOUSE

CONTACT CARMEN @ 604-218-4846 FOR FURTHER DETAILS.

OPEN HOUSE: SUNDAY, APRIL 7th   2PM TO 4PM

3323 PARKER STREET, VANCOUVER BC

$1,095,000 6BEDROOMS & 4BATHROOMS

2154 SQFT, YEAR BUILT: 2012

CONTACT CARMEN @ 604-218-4846 FOR FURTHER DETAILS!!!

Home Ownership Offsets BC’s High Cost of Living

Open House Saturday, March 30 & Sunday, March 31

#1707 788 RICHARDS ST. 

$489,000  1 Bedroom & 1 Bathroom  648sqft

Open House at #36-9000 Ashgrove Crescent $433,5000 Open House March 23, 130 to 3pm

1410 sqft 3bedrooms and 2.5 bathrooms

Open House Sunday, March 24, 2 to 4pm

#406 - 2250 West 3rd Ave $469,000

1 bedroom and 1 bathroom 793sqft

Millennials Have Fresh Take on Housing Needs

There’s a new type of home buyer on the market. They know what they want and are ready to get their hands dirty to transform a house to meet their unique needs. Stereotypical homes do not entice them; rather these buyers strive to own homes that stand apart and suit their personal lifestyle.

Make way for the “millennials,” a.k.a. GenY, the new generation of home buyers.

Two new surveys sketch a picture of the housing aspirations of young adults.

A Royal LePage survey of 1,013 Canadian millennials born between 1980 and 1994 (along with 1,011 baby boomers) asked about their attitudes toward owning a home and their ability to do so. Here are the main findings.

A good investment: The vast majority of the GenY respondents—80.3 per cent—see real estate as a sound investment. As Royal LePage CEO Phil Soper says, ”Baby boomers have built homes for themselves. They are established in their neighbourhoods and their residences have become a place of happiness for family and friends. It’s their children that are seeking to create a similar atmosphere of their own, even though new impediments exist for this younger generation.”

If I could afford it…: The main impediment is affordability. GenY is at the transition point between renting and owning, but many, particularly in BC, don’t know if they will ever be able to own a home. Across Canada, 72.4 per cent said they wanted to own someday, but were pessimistic about actually buying because of current house price affordability. In BC, 86.1 per cent were pessimistic.

Renting an option: And of those planning a move, 55.1 per cent intend to buy a home and 32.6 per cent say they plan to rent. In BC the number of renters rises 6.3 per cent to 38.3 per cent. And 21.4 per cent in BC said they actually prefer renting over home ownership.

Small down payment: Almost three-quarters of the millennials buying will be buying for the first time, and they will find the down payment a challenge: 63.8 plan to put down less than 20 per cent, meaning they will require government-backed mortgage insurance. Savings, RRSPs and the bank of mom and dad will provide down payments for 67 per cent of the respondents.

So what do they want in a house?

Another new survey, conducted for Better Homes and Gardens Real Estate, polled 1,000 young US adults between the ages of 18 and 35, but it is considered characteristic of Canadians of that age group as well. It asked what they wanted in their first or next home purchase. It discovered this group is willing to rewrite the rules to home ownership to fit their values.

Here are the findings from the survey.

Fix-it generation: Nearly 1 in 3 millennials surveyed would actually prefer a fixer-upper to a house with minimal repairs needed. Furthermore, 72 per cent consider themselves just as handy as their parents, and 82 percent of them prefer to handle home improvements on their own instead of turning to their parents. That’s a contrast to a general misconception that paints young adults as coddled or entitled.

Better, not bigger: Unlike their Baby Boomer parents, 77 per cent of millennials surveyed would prefer an “essential” home compared to a grand stereotypical luxury home.

Room for change: Millenials want each room to serve a purpose fit for their tech-drenched lifestyle. Twenty per cent would call their dining room a home office, considering what it’s mostly used for. And 43 per cent would like to transform their living room into a home theatre. Fifty-nine percent would rather have extra space in their kitchen for a TV rather than a second oven, and they seek to be entertained in every room of their home. In fact, 41 per cent of millennials would be more likely to brag to a friend about a home automation system than a newly renovated kitchen.

High tech: Eighty-four per cent believe that technology is an absolute essential to have in their homes. The most sought-after technical equipment is an energy efficient washer and dryer (57 per cent), security system (48 per cent), and smart thermostat (44 per cent). To this generation, technology is more important than curb appeal, the survey found. If a home doesn’t have the latest tech capabilities, 64 percent of millennials surveyed would simply not consider living there, according to the Better Homes and Gardens Real Estate survey.

7 Pragmatic Steps to Buying Your First Home

Since last year’s federal changes to mortgage lending, most first-time buyers now are in the same situation as buyers of 30 years ago, before high-ratio mortgage insurance and long amortizations. If you have a down payment of under 20 per cent, you’ll require government backed mortgage insurance (CMHC or Genworth).  And that means you’ll have to take pragmatic steps toward a home purchase.

1. Make sure you qualify for the higher payments of a 25-year amortization. The amortization period has been reduced to a maximum of 25 years from 30 years. The result is slightly higher payments, because they’re not spread out as long. There is a payoff, though: you will pay thousands of dollars less in interest payments over the (shorter) life of your mortgage.
2. Reduce your other debts. Before you apply for a mortgage, make sure that your other debt obligations (like student loans, credit cards or car loan payments) will not skew your debt-service ratio above the maximum threshold. The maximum gross debt service ratio to qualify for an insured mortgage is now 39 per cent, down from 41 per cent, and the maximum total debt service ratio is 44 per cent.
3. Avoid the bare minimum down payment. The 5 per cent down payment is still available, but it is wise to save longer and put down more. This is because you will not only save on the mortgage insurance premium but you will also spend less in interest payments over the life of the mortgage.
4. Check your credit score. A credit score of at least 600 is often required now to qualify for insured mortgages.
5. Buy a property for under $1 million. This may sound obvious, but $1 million is the typical house price in some Metro neighbourhoods. Under the mortgage rules, such purchases require a minimum 20 per cent down payment, or $200,000. If you buy a $900,000 home, though, the minimum down payment required for mortgage insurance is $45,000. (But don’t ignore Step 3 above.)
6. Take advantage of the current buyer’s market in the Lower Mainland. Sales through MLS® are down about 25 per cent from a year ago, prices have basically flatlined and mortgage rates are about as low as they can go. Realtors tell us that buyers are negotiating aggressively and getting price reductions. Developers are also starting to offer special deals and extras to help reduce their inventory.
   Get pre-approved for a mortgage and contact a local Realtor. You can still buy under the stricter mortgage rules by applying pragmatic, old-school principles.
7. If possible, put down 20 per cent or more. With a down payment of over 20 per cent you won’t need a government-backed insured mortgage and you will save the thousands of dollars those insurance payments would have added to your mortgage. You won’t be constrained by their rules, either, so you can amortize over a longer period.

Remember, your first home won’t be your dream home. It’s just your first step. So save as much as you can and buy only what you can afford. A Realtor and an independent mortgage broker will help you discover what’s feasible within your budget.

March 7, 2013

Greater Vancouver Real Estate Market: February 2013

The report everybody was waiting for is out: the Real Estate Board of Greater Vancouver’s sales, listings and house price statistics for February.  New listings picked up in January. Would sales follow? Would we start to see an awakening of the residential real estate market after an extra-long winter’s nap?

Sales and Listings

We did not. The 1,797 MLS® home sales in the region were the second-lowest total for February in 12 years, and 30.9 per cent below the 10-year average. Compared to last February, home sales were down 29.4 per cent.

Detached houses were the least favoured. House sales were down 36.1 per cent from February 2012, while apartments declined 25.5 per cent and townhouses, 21.5 per cent. All housing types saw higher sales in February than January, with townhouse sales increasing the most, but sales always increase as we head into spring.

There was more choice for buyers in February. Active listings increased to 13,246, after four months of steady decline. They gained 11.6 per cent over January, and 5.2 per cent over February 2012. This despite the fact that new listings faded to 4,833 after January’s influx of 5,128 new listings.

Even with low sales and slightly higher active listings, the sales-to-listings ratio actually increased two points to 12.2 per cent. According to the REBGV, that puts it on the cusp of a balanced market. It hasn’t been over 11 per cent since last June.

The REBGV sees this as a promising sign. President Eugen Klein (video at bottom of article) says, “With a two-point increase in our sales-to-active-listings ratio and a reduction in the average number of days it’s taking to sell a home, February showed some subtle indications of a changing sentiment in the marketplace compared to recent months.”

Mind you, a two-point increase in the sales-to-active-listings ratio is modest this time of year. Spring is typically the major selling period of the year and buyers start to come out in force in February. Last year the increase from January to February was 6.4 per cent.

Benchmark Price (MLS® Home Price Index)

About 54 per cent of all detached houses in Vancouver city limits are assessed at over $1 million according to a study by Andy Yan of Bing Thom Architects, quoted in a recent Vancouver Sun article.

A quick search of the listings on our site found only one house on its own land under $1 million on the west side (two others were on leased land). On the east side we found 141 houses under $1 million. Only three were under $600,000.

House prices that would draw gasps in other cities are the norm in Vancouver. That’s true of West Vancouver, North Vancouver, Richmond and Burnaby North and South as well. All have average benchmark prices of $900,000 or over.

No wonder Greater Vancouver is the star of every overvaluation/unaffordability study that comes out. And no wonder there’s an almost rabid expectation that prices will fall.

But no, in February benchmark prices for houses, townhouses and apartments rose ever so slightly from January.

Townhouse prices went up in all but three areas: Squamish, Vancouver East and Whistler. Prices for condos went up everywhere but Coquitlam, Maple Ridge and Port Coquitlam. Detached house prices dropped in eight out of the twenty REBGV areas: Burnaby South, Maple Ridge, Port Coquitlam, Port Moody, Richmond, Sunshine Coast, Vancouver East and West Vancouver.

These are all very slight increases/decreases, and there’s no telling if they signal a change of direction. When we asked local realestate professionals how they thought the spring real estate market would go the consensus was that we’ve seen the correction from the peak prices of last April and May, and prices would remain flat.

Open House Today

Saturday, February 23, 2013 from 2 to 4pm

#36-9000 Ash Grove, Burnaby BC 1410 sqft

3 Bedrooms and 2.5 Bathrooms $434,900

Beautiful reversed layout plan... Call Carmen for further information @ 604-218-4846