Market conditions have shifted. After five years of blockbuster activity and double-digit price growth, market conditions have slowed, and now favour buyers in many areas of the province.
Residential sales have declined 22 per cent in the first six months of this year, while available resale inventory has grown by 54 per cent to 57,000 active listings in June. In the Greater Vancouver board area, where longer-term data is available, inventory is at the highest level since 1998.
Home price appreciation observed from 2004 to 2007 is less attainable in todays market, and sellers expectations for such gains should be tempered. More generally, in a market favouring buyers, prices generally increase at or below the level of inflation. While the average residential home price in BC increased at a healthy 6 per cent per year since 1981, large gains are often followed by periods of price stagnation. Over-optimistic pricing by sellers will only inhibit the timely sale of properties, adding to inventory levels.
Buyers have more homes to choose from now than in previous years, resulting in greater freedom to compare the attributes and prices of similar properties in the market before making purchase decisions.
Despite current buyers' market conditions fuelled by housing affordability constraints and economic uncertainty, the economic and demographic backdrop in support of housing demand remains strong in BC. BC's unemployment rate remains near record lows, while the labour force participation rate hovers near historical highs. Meanwhile, the province remains a favoured destination for new migrants, reflected in the third-highest population growth among provinces during the first quarter of 2008. However, challenges continue in the forestry sector, and eroded consumer confidence may also be playing a role in a pull back of consumer spending.
Further to my last post regarding Real Estate Title Fraud, Lynda Pasacreta, President and CEO of the Better Business Bureau recommends the following steps to avoid title fraud:
- Landowners are urged to regularly check on title and credit reports.
- As identity theft is a common occurrence on the World Wide Web, people should take extra care inprotecting their identity, including minimizing the amount of personal information they give out. The same thing applies to personal information handed out on the telephone.
- Consumers should get a duplicate title available through a lawyer, notary, or real estate agent.
- For those who own rental properties, screening of tenants should be done to establish their identity, and references should be collected.
For more information on real estate title fraud and other tips, visit www.bbb.org.
To keep you informed of what is happening in the recent real estate market, the following article puts things into perspective. This article appeared in the July 9, 2008 edition of the North Shore News, and was written by Deneka Michaud.
High Supply makes for buyers' market. After years of favorable conditions for home sellers, the North Shore real estate market appears to be giving buyers the upper hand, according to a new report issued by the Real Estate Board of Greater Vancouver. Multiple Listing Service figures released by the board last week show that sales for both North and West Vancouver in June were down from the same time last year, while listings were up. The percentage of sales-to-listings for detached homes in North Vancouver last month was 38 percent, while in June 2007 the figure stood at 93 percent. In West Vancouver, the percentage was 29 percent last month and 64 percent for the same time last year. For several months now there have been signs of moderation in the British Columbia home market as demand has eased off from the highs of last year, explained Cameron Muir, chief economist with the B.C. Real Estate Association. The market has been rebalancing itself froma high-demand state, and now there is actually higher supply than demand, meaning the market is now favourable towards buyers. "More balance between demand and supply means less upward pressure on home prices. It also reduces the chance of multiple bids on the same house, giving homebuyers more time to investigate properties thoroughly before purchasing," said Muir in a recent press release. "This is probably a long-anticipated realignment of the market," he added in an interview. The B.C. Real Estate Association forecasts that residential sales for the Greater Vancouver area will fall by eight percent this year, from 38,978 unit sales last year to 35,900 for 2008. They anticipate that in 2009 sales will again drop by three percent for the area to 34,800unit sales. Yet despire the fact that sales are dropping, home prices are not, explained David Watt, president of the Greater Vancouver Real Estate Board. According to the board's recent report, overall prices in the Greater Vancouver area were up 7.3 percent in June compared to the same time last year, bringing the average residential property selling price to $564,982. In North Vancouver, since June 2007, the benchmark price of a detached home increased by 4.7 percent to $893,639, the average attached home price increased by 8.1 percent to $608,225 and the average condo price rose by 4.4 percent to $386,212. In West Vancouver, over the past year, detached home prices have risen by 0.9 percent to an average $1,428,139, while the average attached home price increased by 4.9 percent to $719,783, and the average condo selling price was up by 6.9 percent to $711,268. BCREA expects that price increases will continue, but at a slower pace than the double-digit increases seen over the past several years. According to their spring 2008 housing forecast, the association predicts that overall MLS selling prices for the Great Vancouver area will rise by nine percent this year to an average $621,000 and will increase by an additional five percent next year to $651,000. Lower year-over-year increases are a result of the rebalancing of the market, said Muir. With more homes on the market, sellers need to be more educated and ned to price their homes at reasonable prices so that their homes will sell. Homes that have been on the market for some time and that have been listed in anticipation of continued rising prices may have to re-evaluate their pricing, he said. "Although housing prices, on a year-over-year comparison, continue to show single-digit percentage increases, we are beginning to see more price reductions in properties listed on the market today," Watt said in a press release. However, lower listing prices do not mean that home prices are decreasing, he explained in an interview. "It's not even that prices have gone down, it's just that they aren't marked up," he said. With the hosuing market taking a downturn south of the boarder, many Canadians have grown wary that Canada will suffer the same fate as the United States, but comparing the two industries is a far stretch said Gregory Klump, chief economist with the Canadian Real Estate Association. The U.S. housing market experienced extremely rapid price increases and poor lending practices which has not resulted in price corrections, he said. In Canada, on the other hand, price increases of the magnitude seen down south did not happen and Canadian lending always remained conservative, so a real estate market crash in Canada is not likely, he said. "We don't see a crash on the horizon, we see it returning to more normal levels," he said. Some areas in Canada, however, have seen falling sales prices, according to a summer 2008 report issued by BMO Capital Markets. In Calgary, prices are down 2.4 percent since last year and in Edmonton prices have dropped by 4.8 percent Prices are also expected to drop in Saskatchewan, said Michael Gregory, senior economist with BMO Capital Makets. British Columbia, on th other hand, did not see the major price mark-ups seen in Alberta and Saskatchewan, and so B.C. remains in good shape, he said. "The rate of price increases will slow, but it (B.C.) still has a pretty strong economy," he said, adding that he predicts, "a soft landing, rather than a collapse." A report issued by Landcor Data Corporation at the end of last month shows that some areas in British Columbia are fairing better than others. In 2001, sales values in the province totaled $19 billion; last year they totalled $62 billion and at the end of this year the rate is expected to be over $61 billion, explained Rudy Nielsen, president of Landcor Data Corporation. "Things are cooling, but things aren't bad," he said. "Overall, I look at B.C. as very positive," he added, explaining that the province has great natural resources, good tourism and a high quality of life. Even in places where prices may decrease, he says homeowners just need to wait it out because prices will again increase. He said he expects the cooling period to only last two to three quarters before turning around next year sometime. As for the North Shore market specifically, Watt said he believes it is secure and, if anything, real estate in North and West Vancouverwill become more desirable as gas prices rise and people look at living in areas that are closer to the city core.
The following letter,m written by Dave Watt, President of the Vancouver Real Estate Board, appeared in yesterday's Vancouver Sun (Thursday, July 10, 2008). It is in follow up to a couple of articles that have appeared recently in the Vancouver Sun in which homeowners are being encouraged to purchase Title Insurance for their property to protect themselves from Title Fraud. I trust this article will assist in putting your fears at ease.
"Letter to the Editor:
We're deeply concerned that The Vancouver Sun's view, expressed in the June 25 editorial "Rising real estate fraud makes title insurance essential", is causing unnecessary panic among B.C. homeowners.
The Land Title and Survey Authority (LTSA) reported that over the past 18 years they processed 15 million transactions. In that time, two claims related to land ownership fraud were resolved and only 14 claims related to mortgage fraud were filed.
Contrary to the paper's assertions, LTSA says there's been no increase in the number of fraud cases, and that cases of attempted fraud are rare.
We're not aware of any cases in B.C. that required an innocent owner to pay off a fraudulently obtained mortgage. Typically, when a homeowner is asked to pay for title insurance on a mortgage, that insurance protects the lending institution, not the homeowner.
REALTORS® have a high level of confidence in our land title system. As such, we believe the wholesale promotion of title insurance adds unnecessarily to the cost of homes in B.C.
Yours truly,
W. Dave Watt
President
Real Estate Board of Greater Vancouver
2433 Spruce Street
Vancouver, B.C. V6H 4C8
tel. 604.730.3000"
• 2,665 sq. ft., 3 bath, 4 bdrm 3-level split - 
MLS® $840,000
Forest Hills, North Vancouver - Walking distance to Edgemont Village, this property is on a level, corner lot. Existing home has been partially updated and offers 4 large bedrooms up, 2.5 baths, entertainment sized living room and dinning room, and large kitchen with eating area. Large rec-room down could easily be converted into a suite. Make use of existing home, or build a dream home. Many possibilities exist.
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Central Lonsdale, North Vancouver - We invite everyone to visit our open house at 304-137 W 17th Street on August 12, 2007 from 2:00 PM to 4:00 PM.
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Posted in Home Renovations on Jun 26th, 2007
Low-flow products are must-haves
If you’re looking for a way to reduce your utility bills and do something good for the environment at the same time, it’s worth taking a good look at your home’s plumbing fixtures. Older fixtures can waste a lot more water than you may realize, and a few simple changes can often […]
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Posted in Home Renovations, News Articles on Jun 27th, 2007
Tiles enhance your home, but tread carefully
MIKE HOLMES
I love tile floors. Tile is incredibly durable and looks great when it’s installed properly. It comes in every style and colour, so there’s hardly a floor in the house where tile won’t work, and there is no look it won’t enhance. But you have to make […]
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Posted in Home Renovations, News Articles on Jul 4th, 2007
Don’t let water problems dampen your reno enthusiasm
MIKE HOLMES
Finishing your basement is a great way to increase the living space — and value — of your home, but before you hire someone to install that new bar, home office or family room, make sure your basement is absolutely dry.
Concrete is used to build virtually […]
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Posted in Home Renovations on Jul 8th, 2007
How to fix wobble before unit springs a leak
Inman News
Q: I installed a new toilet using a wax ring with no rubber gasket. I
set the new bowl on the bolts, making sure it was lined up right. But
the bowl still wobbles — front to back, not side to side. When I fill
the tank with water […]
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Note that this information is outdated.
Join us at 10:00 a.m. on July 1, 2007 for the Canada Day Parade. The parade starts at 13th and Grand Boulevard in North Vancouver. The route goes down 13th Street, turns right onto Lonsdale, along Lonsdale to 17th Street, turns left onto 17th Street and continues on to the finish line at 17th and Jones. A celebration will continue at Mahon Park. This parade draws large crowds. Arrive early to get a curb side seat.
When/Where: North Vancouver, Sunday, July 1, 2007
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Ambleside, West Vancouver - We invite everyone to visit our open house at 1345 Sinclair Street, West Vancouver on June 10 from 2:00 PM to 4:00 PM.
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Note that this information is outdated.
A 24-Hour Relay event to raise money to send sick children to summer camp. 100% of the proceeds are given directly to this cause.
When/Where: Nat Bailey Stadium, Sat/Sun June 16/17, 2007
Note that this information is outdated.
Join us on Sunday, May 27, 2007 for the 2nd Annual Prudential Sussex Realty Seawalk 10K Run. Registration is $37 per entry. All proceeds with be divided between two well deserving causes -- The Lion's Gate Hospital Foundation and North Shore Programs for At Risk Youth.
When/Where: The Village at Park Royal, Sunday, May 27, 2007 at 7:30 a.m.
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Ambleside, West Vancouver - We invite everyone to visit our open house at 402-1745 Esquimalt Avenue on Sat/Sun in May.
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