Vancouver Real Estate Blog

REALTOR Care Blanket Drive Donation Neared 19,000 Keeping The Working Poor And Homeless Covered And Warm

Blanket Drive continues to spread warmth to those who need it most

Nearly 19,000 working poor and homeless people across the Lower Mainland received donations of blankets, clothing, and other necessities this year from the region’s longest running Blanket Drive.

Over the years, the REALTORS Care® Blanket Drive has grown to become the largest collection of its kind in our region.

Since 1994, the real estate community has partnered with local charities to distribute items collected in the region, in that time helping more than 185,000 people.

During the REALTORS Care® Blanket Drive, people from across the Lower Mainland benefited from the many contributions distributed through local charities.

“Many people in our community who are struggling financially will be blessed and warm this winter because of the Blanket Drive,” said Lorraine Pilling, clothing co-op manager at Higher Ground Ministry, a charitable organization in Port Coquitlam.

The largest recipient charity in Surrey, NightShift Street Ministries, is an organization that offers outreach services to the homeless including food, clothing and counselling.

“We anticipate the hundreds of bags of coats and blankets we received this year will provide a change of clothes and a fresh blanket to every client who needs it until April 2012,” said MaryAnne Connor, founder/president of Nightshift Ministries.“This donation program is an integral part of our mission to assist those in need.”

Donations collected by Chilliwack and district volunteers were distributed to Ruth and Naomi’s Mission, Chilliwack; the Joshua Project, Hope; and Agassiz-Harrison Community Services, Agassiz.

This year, for the first time, a video blog was created to tell the stories behind the Blanket Drive. Learn how it started, how volunteers collect and sort donations, and how charities distribute the items by visiting www.blanketdrive.ca

Renting Verses Buying A Home

There are many factors to be considered when deciding to move to a new location with the first critical decision being whether to purchase some property or rent. Depending upon your circumstances, it may either be a clear-cut decision or one that requires a more thorough analysis to make that determination.

Factors to Consider

Career - For some individuals, it may not be practical to purchase property if their career will require them to relocate frequently. Although some people have the resources and inclination to accumulate property each time they move, for most of us that is either not an option or would be an undesirable outcome to find ourselves in the role of landlord. For the majority of us, that means we need to sell property each time we move, so careful analysis is required to determine whether it is better to buy or rent property for the duration of the assignment. One item to consider is that it generally takes 3 - 5 years under average real estate market conditions to reach the breakeven point for recouping the closing costs incurred at the time of purchase. Individual situations will vary, but in a stagnant real estate market it will take longer to realize enough in property appreciation to cover the transaction costs related to acquiring and selling property.

Property Resale - Not all properties or real estate markets are equal when it comes time to sell property. Factors to weigh include the typical length of time it takes to sell property in your area or the area you are interested in which you are interested, and if there is something unique about the property (price range, location, size) that you are interested in that would make it either easier or harder to sell. Whether or not you have relocation benefits available to you through an employer if you are unable to sell your property may also be a factor.

Finances - The purchase of property typically involves significant upfront cash outlays: pre-purchase inspections, a down payment and closing costs. Equally important is whether or not sufficient income is available to cover the mortgage payments while still having enough income to adequately take care of other living expenses, car payments as well as saving for retirement. The lack of sufficient funds may quickly eliminate any thought of purchasing property and dictate that in the interim renting, living with family members or some other living arrangement will be required until enough funds can be saved.

Relationship Status - Personal relationships can play an important part in deciding to purchase property. Engaged or newly married couples often are looking to establish a single common property on which to build their future together. Single or newly divorced adults may not be ready or interested in making a long-term obligation to a specific location and prefer to leave their options open as they pursue relationships, careers, other interests and hobbies.

Personal Preference - While some people feel a strong need to own property, others don't want the responsibility of maintaining property and prefer to simply pick up the phone at the first sign of any possible trouble and have someone else be responsible for remedying the issue at hand.

Benefits of Purchasing a Home

Ownership - For most people, owning their home is a key element of attaining the Canadian  Dream. And there is nothing quite like buying your first home and realizing it is all yours (provided of course that you continue to make your mortgage payments on time). Homeowners also tend to view their purchase an investment and have incentive to keep their property in good repair.

Building Equity - Obviously the largest benefit is that you are now building equity in your own property instead of contributing to the equity in someone else's property via rent payments. Historically, home ownership has been a long-standing means of building long-term wealth.

Decorating Without Limitations - As an owner, you have the freedom to personalize your property to your heart's content, subject only to local code and any applicable Strata Property rules, unlike when you rent and experience many restrictions as to what you can and cannot do to the rental property. No need to get approval to paint interior walls, change flooring, install custom closet organizers, or complete minor home improvement projects. Although larger remodel projects may require getting permits, other than meeting code requirements, you are limited only by your budget and creativity when making changes to reflect your personal tastes and style.

Financial Stability - Fixed rate mortgages result in both greater financial stability and predictability. Assuming a fixed-rate mortgage, over time your housing costs should become a smaller percentage of your monthly budget as your income continues to grow while the mortgage remains constant. Additionally, fixed mortgages offer a great deal of predictability when preparing long-term budgets. Although repairs and maintenance will need to be factored in, there will be no surprises with unexpected hikes in rent.

Personal Benefits - Owning property frequently allows you a greater opportunity to meet neighbors and develop friendships with others that hold values similar to your own. And unlike apartment dwellers that tend to be more nomadic and view their unit as just a place to sleep at night, homeowner's tend to move less often and view their homes as investments. It is also not uncommon to find neighbors that were drawn to the area for many of the same reasons that caught your attention - good reputation of schools, easy access to public transportation, close proximity to outdoor activities, the architecture of the homes, or the availability of shopping, dining and entertainment within walking distance - giving you something in common right from the beginning to build upon.

 

Benefits of Renting a Home

Limited Commitment - Perhaps one of the greatest benefits of renting is the limited commitment that is required of tenants allowing, them more flexibility to relocate as circumstances change. Leases often only require an initial six-month or one-year term, allowing a lot of flexibility for tenants. At worse case, if something unexpected comes up and you need to move before the initial lease is up you are frequently out a deposit for breaking the contract, but you don't need to sell a house before you can move or to free up your cash.

 

Repairs and Maintenance - In many circumstances, a tenant needs only to contact the property owner or manager to have repairs taken care of. And for those who don't have the time or inclination to keep up a yard, renting a property where the upkeep is taken care of can be a real plus.

Roommates - Many people choose to have roommates to help defray housing costs by splitting the cost of rent as well as utilities. Although this tends to appeal more to young adults, it is not limited exclusively to the younger crowd. As the economy has created new challenges, some homeowners have begun seeking roommates to ease financial burdens by filling empty rooms in their homes.

Laneway Housing - City of Vancouver

In July 2009 Laneway (or Coach) Housing was approved by the City of Vancouver under their EcoDensity Initiative.

Available to RS-1 and RS-5 single-family zones on lots 33′ or wider, you can now build 500 – 750 sf of lane-facing housing. This is in addition to an in-house secondary suite, and to the provision of a single on-site parking space.

If you are interested in looking into adding a Laneway House on your property, you can  contact the City of Vancouver Enquiry center at 604-873-7613  to confirm whether or not your particular lot is eligible.

For more information, visit EcoDensity Laneway Housing.

Greater Vancouver Home Sales Trend Toward Buyers’ Market Over Summer

August marked the third consecutive month that home sale activity in Greater Vancouver was below the 10-year average for the month. In contrast, home listing activity in the region has exceeded the 10-year norm every month since the beginning of the year.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) reached 2,378 in August. This total represents an eight per cent increase compared to the 2,202 sales in August 2010, but also ranks as the third lowest total for August in the last 10 years.

“MLS® statistics continue to indicate that we’re in a balanced market,” Rosario Setticasi, REBGV president said. “However, with a sales-to-actives listings ratio of 15 per cent, Greater Vancouver is in the lower end of a balanced market and has been trending toward a buyers’ market over the past three months.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,685 in August. This represents a 24.9 per cent increase compared to August 2010 when 3,750 properties were listed for sale on the MLS® and an eight per cent decline compared to the 5,097 new listings reported in July 2011. Last month’s new listing total was the highest volume recorded for August in 16 years.

At 15,437, the total number of residential property listings on the MLS® increased 1.4 per cent in August compared to July 2011 and rose 0.1 per cent compared to this time last year.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 8.5 per cent to $625,578 in August 2011 from $576,597 in August 2010.

“Year over year, prices are up. However, in the detached home category, benchmark prices have come down slightly in each of the past two months,” Setticasi said. “It’s important for people entering the market to understand that activity can differ significantly depending on the area and property type.”

Sales of detached properties on the MLS® in August 2011 reached 1,020, an increase of 14.2 per cent from the 893 detached sales recorded in August 2010, and a 25.4 per cent decrease from the 1,367 units sold in August 2009. The benchmark price for detached properties increased 11.7 per cent from August 2010 to $888,243.

Sales of apartment properties reached 955 in August 2011, a 2.1 per cent increase compared to the 935 sales in August 2010, and a decrease of 34.8 per cent compared to the 1,464 sales in August 2009. The benchmark price of an apartment property increased 5.6 per cent from August 2010 to $407,457.

Attached property sales in August 2011 totalled 403, a 7.8 per cent increase compared to the 374 sales in August 2010, and a 33.9 per cent decrease from the 610 attached properties sold in August 2009. The benchmark price of an attached unit increased 4.5 per cent between August 2010 and 2011 to $511,433.

Download the complete stats package by clicking here.

Vancouver Real Estate Agent Mitchell Mingie

Thanks to CMHC Mitchell Mingie a Real estate Agent with Re/Max Crest Realty (Westside) found some intriguring stats for the first half of 2011.

Greater Vancouver Resale Market:

- 1st half of 2011 - 18,881 sales in Greater Vancouver from MLS stats.

- 10% increase ocer the 17,133 last year.

- Housing sales averaged 3,292 units per month

- Total number of new listings 34,958. This is 5% down (36,973)from 2010.

- With higher sales and lower # of homes for sale, residential housing market flucuated from a balance market to a Seller's Market.

- Average prices in Greater Vancouver rose 20%

- During the 1st half of 2011 construction of new multi family homes reached over 1,000 units in the Vancouver area.

Vancouver Real Estate - Real Estate Signs - How Long Can One Keep Them Up For

Within the Real Estate Board area, 22 municipalities, two regional districts and the Islands
Trust either have a:

• special purpose sign bylaw; or

• cover signs under other broad based bylaws such as zoning or land use bylaws.

These bylaws deal with real estate sign size, use, and placement. The rules often differ among local governments.
For example the Burnaby sign bylaw:

“Bylaw states that a sign is permitted during the duration of the sale"

Now does that mean up to completion or up to the subject removal date?

A number of local governments also use similar language in their sign bylaw regarding the length of time a sign can remain on a property. The Real Estate Board contacted a few municipalities for clarification. Here is what they told us.

• Belcarra: a sign can be left on the property until the completion date.

• Burnaby: a sign can be left up until the completion date.

• Coquitlam: a sign is permitted until the property is registered in the Land Title Office and the new owners take possession.

• Delta: a sign is permitted until the completion date, which is technically when the title changes. However, if this is months away and there is a complaint, Delta may sk the REALTOR® to remove the sign.

• Maple Ridge: a sign is permitted until the completion date.

• Pitt Meadows: a sign is permitted until the documents are signed and the property is sold.

• Richmond: a sign is permitted until the completion date.

Vancouver Realtor's donated 2.3 million in 2010

 Greater Vancouver REALTORS® donated more than $2.3 million to charity in 2010.

We have identified $8.4 million in member donations since this annual program began four years ago. The total was $1.2 million in the first year, then $2.6 million (this included a single $1 million donation) and almost $2.3 million last year.

Vancouver Real Estate Agent Mitchell Mingie See's A New Trend Emerging For Condos and Townhomes.

Mitchell Mingie see's a bright future for the attached(townhouse) and condominium element of the real estate market on the Westside and across Vancouver. He looks at the slow but constant demand arising out of all those detached homes selling, the economy and the number of people migrating to live in Vancouver.

Families are either retiring and moving into condo life or are individuals who have seen an opportunity in the way of price and have decided to sell and keep the extra money for their future retirement. Mitchell says "I have seen many home owners who have bought a few years ago and are selling now, because the money is so great". Some of these home owners are seeing an extra million or more for their property. So it is time to sell and move on. Mitchell always reminds his client to stay in the market. "You do not have to buy another detached home, that just puts you back in the same position from where you started. But, better yet transition yourself into a townhome or condo where you can see yourself living for the next 15 years". The city of Vancouver has so many fascinating area's like Coal Harbour, Concord Pacific lands, Kitsilano "where your townhome can become a cabin, cottage and house combined". The possibilities are endless says Mr. Mingie.

Not only is this current trend relevant to condo and townhouse owners but the reality of the detached home out pricing itself for most people is a realty that we must all face. The hardest equation to come to terms with, that Mitchell see's is "families that see their children living farther away from home", simply because of the cost of buying a detached home in places like Dunbar or Point Grey. A simple 33 x120 lot with a post world war 11 home is asking 1.4 million. The scary thing is that they are being bought up quicker than they can be put on the market. These modest homes have a foot print of 850 - 1100 square feet and were once the common site on the Westside. In it's place, the new homes are about 2400 square feet with 3-4 bedrooms and sometimes a mortgage helper in the basement.

So even if the detached homes have seen a 28% rise in price in a year, condo's and townhomes have seem a 4% increase.  I believe "a steady growth pattern will emerge" says Mr. Mingie. One just has to look at what developers are scrambling to build after a few year of abstance from the market. "The Lull" where developers were just not building. The building scene is picking up, yet most of those projects will not be ready for occupancy until 2012 and 2013.

Vancouver Real Estate First Quarter Biggest Stories for 2011

The Olympic Village and a focus on the influence of wealthy foreign homebuyers on the local real estate market were the dominant issues featured in real estate-related press coverage in the first quarter of 2011.

 

Real Estate Board Of Greater Vancouver - Explaining Sellers & Buyers Contractual Obligations

Buyers and sellers with signed contracts that are legally binding have many contractual obligations. 

Included items

The standard form, Contract of Purchase and Sale, contains this clause:
“The Purchase Price includes any buildings, improvements, fixtures, appurtenances and attachments thereto, and all blinds, awnings, screen doors and windows, curtain rods, tracks and valances, fixed mirrors, fixed carpeting, electric,
plumbing, heating and air conditioning fixtures and all appurtenances and attachments thereto as viewed by the Buyer on the date of inspection...” (Clause 7: Included items).

The contract provides a space for additional items that are to be included or excluded, for example, washing and drying machines, curtains or even a stone garden bench.

If you are a buyer, and you have specified items that you want to be included in the contract and if these items have been removed when you take possession of your home, then talk to your REALTOR® and/or your lawyer as to whether the seller has breached Clause 7 of the contract.

Property condition

The standard form Contract of Purchase and Sale contains this clause:
“The Property and all included items will be in substantially the same condition at the Possession Date as when viewed by the Buyer...” (Clause 8: Viewed).

If the property’s condition is different when you take possession of your property, talk to your REALTOR® and/or your lawyer as to whether the seller has breached Clause 8 of the contract.

Other commitments

Buyers may impose a specific obligation on the seller, for example, to make repairs or to clean the property prior to the closing. Examples could include shampooing carpets, power washing the driveway, removing garbage and unwanted items, cutting lawns, and repairing fences.

Sellers (and buyers) are obligated to keep their contractual commitments. If a contractual commitment has been breached, consider talking to your REALTOR® and/or your lawyer as to your options.

Your REALTOR® and his/her brokerage may be able to help resolve this complaint by contacting the other party’s REALTOR® or brokerage to ask for assistance or to communicate your concerns.

Note: Your REALTOR® cannot force the other party to do what they said they would do in the contract. For this, you need the assistance of a lawyer or the Courts.

Subject to clauses

Buyers may wish to make “subject to” offers for example; subject to the buyer being able to obtain financing; subject to an inspection of the property and/or subject to legal advice. Sellers can accept an offer subject to the seller being able to find another suitable property within a specified period of time or subject to legal or financial advice. The parties must act in good faith and are expected to make reasonable efforts to satisfy and remove subject clauses from the agreement.

Note: A subject clause is not necessarily an “escape clause.” If the other contracting party does not believe you have made an effort to satisfy the subject clause he/she may consider that you have breached your contractual obligations.

Deposits

Deposits are most commonly held in trust by the buyer’s REALTOR®’s brokerage. Once deposit monies have been placed in the brokerage trust account they can only be removed from the trust account with the written approval of the buyer and seller. If the parties cannot agree, the real estate brokerage may pay the monies into court pending legal action that the parties may choose to take.