Vancouver Real Estate Blog

Luxury Housing Sales Surge Forward In most Canadian Urban Centres Except Vancouver Reports Re/max

Over 60% of the market set new records in the 1st quartet.

However Vancouver plugged 31%

Several factors have worked together to fuel the surge in demand for high end properties in 2012: 1) Equity gains

          2) Stock market Volatility

          3) Immigration

          4) Changing Fortunes

          5) Rebounding In Global Wealth

 

To read the media release by Re/Max visit the link below:

 

http://www.remax.ca/miscellaneous/REMAX%20MEDIA%20REPORTS/REMAXupperend2012.WCpr.FNL.pdf

Preparing Your Home For Winter

 

The most obvious items to address as the winter months approach center largely around ensuring that your home remains warm. Regardless of your heat source there are preventative measures that should be taken to ensure that you remain warm and safe inside your home. Some of the most important areas to assess include:

• Furnaces - regular annual furnace inspections will help keep your furnace in good repair. Cleaning or replacing furnace filters monthly during the operating months will also keep your furnace operating efficiently.
• Oil Heaters - like furnaces, oil heaters require annual inspections and maintenance. Annual inspections should include: inspecting the chimney, cleaning the pipes to remove soot build up, replacing the air filter, checking oil pressure and cleaning the oil filter bowl. Oil supplies will need to be replenished.
• Fireplaces - periodic cleanings should be performed by a chimney sweep to remove soot and creosote buildup to prevent chimney fires. It is also a good time to ensure that woodpiles are sufficiently stocked for the winter months with well-seasoned wood. Woodpiles should be located in a dry location and in an area away from structures to prevent granting wood-eating insects, such as termites, easy access to your home.
• Inspect windows and door for leaks - replacing cracked windows, or sealing air leaks around doors and windows will not only make the winter months more comfortable, but will also lower the costs of heating your home. One method of sealing leaks around windows is by using a removable caulking product which allows for easy removal and restoration of functionality for windows with the return of warmer weather in the spring.

Evaluate smoke detectors and related safety equipment - the ending of daylight savings time is an ideal time to replace batteries in smoke detectors and any other battery-powered safety or emergency equipment. It is also a good time to evaluate existing smoke detectors, carbon monoxide detectors and fire extinguishers in terms of lifespan and whether they provide an adequate level of coverage. Smoke detectors and fire extinguishers are generally considered to have a lifespan of 10 years, whereas carbon monoxide detectors have a lifespan generally ranging from 2 to 5 years. Beware that batteries in the carbon monoxide detectors may still function after the actual carbon monoxide sensor has ceased being operational 

Homes of The Future - What Will They Look Like

Some of you may be too young to remember, but if i were to ask those that were growing up in the 1960's and 1970's to project into the future what a house would look like. Most people would have images of the Jetsons with all their space age equipment and robots.

Well those are all intriguing idea's and thoughts. But not reality. The biggest change will be seen in the single family home. Mostly regarding it's size. Since 2007 homes have been getting smaller. In 2007 a home measured on average over 2500sqft(National Associate of Builders) It is now at about 2400 sqft and by 2020 or sooner it will be about 2150.

Why you say. Well it has all to do with the Baby Boomers.

Expect to see: 1) Stand alone Living room will be designed to encompass the kitchen and dining room. We are already seeing this, and it is called the Great Room.

                        2) Eat in Kitchens.

                        3) Larger walk in laundry rooms.

                        4) Walk-in showers.

                        5) Extension of a Great Room outside.

Expect to see less of:1) Formal dining rooms.

                                    2) 4 bedroom + homes - Empty nesters and new families are smaller.

                                    3) Mudrooms will disappear.

Home Sale Forecasts Changes For Canada - Greater Vancouver Surges Ahead

The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity via the Multiple Listing Service® (MLS®) systems of Canadian real estate boards and associations for 2011 and 2012.

National sales activity is now expected to reach 441,100 units in 2011, a decline of 1.3 per cent from 2010. This is a slight improvement from the 1.6 per cent decline forecast by CREA in February, due to stronger than expected activity in British Columbia in the first quarter of 2011.

In 2012, CREA forecasts that national sales activity will rebound by 2.6 per cent to 452,500 units. This is little changed from the previous forecast, and stands roughly on par with the ten year average for annual activity.
Although sales activity in the first quarter of 2011 came in largely as expected, multimillion dollar property sales in Greater Vancouver have surged unexpectedly. These sales have upwardly skewed average sale prices for the province and nationally, prompting the average price forecast to be revised higher.

The national average home price is forecast to rise four per cent in 2011 and nine-tenths of a per cent in 2012, to $352,500 and $355,800 respectively. This marks an increase from the previous forecast, and underscores the significant effect that investment in British Columbia is and will have on national results.

To read the full report follow the link below:

http://members.rebgv.org/realtorlink/rebgv/publications/RLzine/RL_may202011/files/CREAForecast.html

Vancouver Real Estate And Canada's Real Estate Market Report From Re/Max "First Time Buyers Report"

Real Estate in Vancouver and the rest of Canada  has been driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country,according to a report released today by RE/MAX.

The RE/MAX First-Time Buyers Report, highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. Just over 30 per cent of markets arereporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price. Leading the country in terms of percentage increases in the number of homessold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver(up close to 12 per cent), and Winnipeg (up just over 11 per cent). With an average price hike of close to20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength,followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close toseven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).

“With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving into the traditionally busy spring market,” says Elton Ash, Regional Executive Vice President, RE/MAX ofWestern Canada. “Consumer confidence is climbing in conjunction with economic performance, andconcerns over a secondary recession fade with each passing day. The mood is cautiously optimistic as first-time buyers enter the market.”

Inventory levels, while tight in several larger centres, are more balanced overall, giving first-time buyers a good selection of housing product from which to choose. Not surprisingly, condominium apartments and town homes have become the first step for many entry-level purchasers, especially in Greater Vancouver, Victoria, Kelowna, Edmonton, Calgary, London-St. Thomas, Hamilton-Burlington, Greater Toronto, the Island of Montreal, and Halifax-Dartmouth where average prices have risen unabated in recent years.

“Despite home ownership rates approaching 70 per cent, there is clearly room for growth as entry-level buyers make their moves from coast-to-coast, undeterred by higher housing values and changes to lending criteria” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Many purchasers intent on realizing home ownership are scaling back on expectations or are willing to sacrifice location, quality and/or size to make their dream a reality – not unlike generations before them.”

Changes to recent financing criteria have not created the anticipated run up in activity in most markets. From a financial standpoint, most rookie home buyers remain quite prudent. Those making the leap are not doing it lightly, buying within their means. While this most recent round of policy tightening will likely have a negligible effect on demand, the message is getting across.

Affordability remains a growing concern in most markets, and—aside from first-time purchasers—no one is more in tune with that than housing planners and developers. In fact, the growing demand for reasonably-priced product is creating a shift in the country’s housing mix. That trend is expected to gain traction in coming years, as builders look to create greater options for those seeking to realize home ownership. In recent years, builders have helped ease the move to home ownership by concentrating on intensification—condominium buildings with smaller suites and small-lot subdivisions offering detached, compact homes at a fraction of the cost of a traditional single-family home. On the flip side, the affordability factor is also breathing new life into tired older neighbourhoods, and that, in turn, is contributing to rising values.

As prices escalate, first-time buyers are indeed spending more—some out of necessity, but others are simply in a position to do so. Unlike in years past—a greater percentage of today’s first-time buyer pool is comprised of dual-income, college or university-educated couples with solid earnings. They’re spending close to average price or slightly more to secure—in most cases—a better location or a home that will grow with them. Yet, the fact remains that those on a tighter budget can get in for considerably less, with reasonable choices in every major market across the country. While some may feel discouraged by eroding affordability levels, the underlying confidence in the concept of home ownership is rising.

“While market conditions are one thing that influences first-time buyers, few things trump the fundamental belief in home ownership,” says Sylvain Dansereau, Executive Vice President, RE/MAX of Quebec. “Today’s entry-level buyers are steadfast in their mindset. They know they have to live somewhere, but they simply don’t want to pay someone else’s mortgage. Savvy or practical, they remain a driving force. The bottom line is that the demand for entry-level product will remain steady. The role of starter homes in the marketplace is becoming ever more vital."

RE/MAX is Canada’s leading real estate organization with over 18,000 sales associates situated throughout its more than 690 independently-owned and operated offices in Canada. The RE/MAX network, now in it's 38th year, is a global real estate system operating in 80 countries, with over 6,300  independently-owned offices and over 92,000 member sales associates. RE/MAX realtors lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information visit the following website: www.remax.ca

Manufacturing Sales in Canada

Manufacturing Sales in Canada are up 10.3% from August 2009 and was recorded ad 45.1 Billion.

British Columbia manufacturing sales gained 8.4% from the low from August 2009. All of these  indicators are good signs for a diverse economy which strengthens public confidence which translates into a stronger housing market.

Canadian Home Resales Drop 2.6% in April From March.

The Canadian Real Estate Association said in a statement from Ottawa today, that home sales fell 2.6% in April from March 2010 on a seasonally adjusted basis, as the country’s housing market cools from record sales. The number of homes sold dropped to 42,078 in April, from 43,199 units the month before, the Canadian Real Estate Association said. For more on this topic click on this link below.

http://creanews.ca/2010/05/17/canada%e2%80%99s-hot-resale-housing-market-starting-to-cool/.

Scotia Bank predicts an 8% increase in housing prices for Canada.

Scotia Bank is reporting that Canada is leading the way to an economic recovery. In the report Canada, Australia and Italy are seeing marginal growth in the 4th quarter(2009) in home prices and Canada is way out in lead position with a 19% increase in home prices year - over - year. Out of the 9 countries in the report, the bottom 6 are UK, Japan, USA, France, Spain, and Ireland. These last countries are behind the residential housing activity scale from year - after - year figures by up to minus 20%.

To read more click here Download Real Estate Trends. 

Mortgage Interest Rates

How does Interest Rates reflect in home ownership and demand on the housing market.

We have to look back to 1982 when interest rates were over 22%. This was the posted 5 year fixed rate as I remember. The impact of this rate had a massive control of the housing market. House prices fell 40%-50% as house affordability became out of reach for most people. As this example illustrates, housing affordability is not just a function of house hold incomes and home prices, but mortgage rates also play a huge part in the over all equation.

The Bank of Canada main focus is to keep inflation between 1% to 3%. I see a very telling story in the future of our housing industry. Our government see's in the horizon inflation creeping back into the economy, thus it is putting measures in place to help protect those in need to create a higher standard for individuals to qualify from banks for their mortgages. I believe this is a very good position to be in. We do not want to see anything like the devastation that has occurred south of the border to pose a threat to our housing system. Cameron Muir BCREA Chief Economist says it best "While low mortgage interest rates can be a powerful engine of demand, as recent activity demonstrates, very high interest rates can virtually pull the rug out from under any housing market".

The Re/Max Market Trend Report 2010

According to the report released by Re/Max, the lack of inventory will be the greatest challenge facing the housing market across the country. In the 16 markets that this report examines, it found that 81% of those markets surveyed saw a sharp decline in active listings. This is due in part by an over active market in January, which normally is fairly quiet. This is the result of the threats of higher interest rates( which I believe you will see this summer) and tighter lending criteria that takes affect this spring. On top of all this, you have the government introducing the new tax called HST, better known as the Harmony Sales Tax. This takes effect July 1st 2010.

- 87.5% of the markets surveyed posted increases in sales during January

- 81% of the market surveyed also saw average price move up.

Michael Polzler - Executive Vice President of Re/Max Ontario-Atlantic Canada said " There have never been so many motivating factors in play at once. We are in for a heated spring market that will , in all probability, spill over into summer months, as the window of opportunity draws to a close".

Click here to view the full report