Conditions in the Greater Vancouver housing market continued to favour buyers in August. Since April, prices have edged down slightly as the number of sales and the number of properties coming on to the market have been declining.

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.

Sales of detached properties in August 2010 reached 893, a decrease of 34.7 per cent from the 1,367 detached sales recorded in August 2009 and a 66.9 per cent increase from the 535 units sold in August 2008. The benchmark price for detached properties increased 8.5 per cent from August 2009 to $795,076.

Sales of apartment properties reached 935 in August 2010, a decline of 36.1 per cent compared to the 1,464 sales in August 2009 and an increase of 26.4 per cent compared to the 740 sales in August 2008.The benchmark price of an apartment property increased 4.5 per cent from August 2009 to $385,968.

Attached property sales in August 2010 totalled 374, a decline of 38.7 per cent compared to the 610 sales in August 2009 and a 27.6 per cent increase from the 293 attached properties sold in August 2008. The benchmark price of an attached unit increased 6.6 per cent between August 2009 and 2010 to $489,511.

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The exemption from a rental bylaw that occurs for all strata lots identified on a RDS has been significantly extended for those developments where the RDS is filed after December 31, 2009. The RDS will apply to exempt all strata lots named in the RDS from the application of a rental bylaw until the RDS expires. In other words, during the period the RDS is valid, a Strata Corporation will be unable to enforece a rental restriction.

If the RDS was filed prior to December 31, 2009, a rental bylaw does not apply to the strata lots identified on the RDS during the period the RDS is valid until the strata lot is sold by the first owner. The only amendment to this provision is to provide that the exemption applies to the first owner (other than the Owner Developer) rather than the first purchaser, thereby clarifying that a person who obtained title as a consequence of an assignment has the benefit of the RDS.

Thirdly, when counting rented strata lots, section 142 has been amended to provide that rentals to family members and rentals permtted on the basis of hardship are not ouncted when determining whether the number of permitted rentals as set out in the Rental Bylaws has been reached.

When buying a Vancouver condo, you should review all the strata documents with your lawyer.

For more info, read the BC Strata Title Act

though deemed to be correct, the above information should not be relied upon without verification. if you need further information seek independent legal advice

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Gibsons on Vancouver’s sunshine coast

Globe and Mail just published an article saying the future is far from clear because house prices are still higher than they were a year ago. On the other hand, month over month sales have been on the downturn since June.  Some forecasters predict prices to drop over the next two years , followed by years of stagnation. The Canadian Centre for Policy Alternatives describes housing bubbles as being rare in Canada but sees a possibility that the big six Canadian cities , including Vancouver, follow the sharp downturn Vancouver had in 1994.  Historically Canadian house prices have stayed in a narrow range of 150,000 to 220,000 inflation adjusted dollars, once outside of that range they are more susceptible to rising interest rates. They point out that a US style house correction is the most extreme scenario. Secondly, when the US economy recovers, this will benefit Canada and interest rates will then rise. That likely means today’s prices won’t be sustainable once interest rates begin to climb quickly. In conclusion they feel a correction of 9-21% may be in order.

C.D. Howe think tank disagrees and points out that Canadian housing policies have been put in place to avoid a real estate crash but they do agree that the prices are overdue for a correction. TD Bank predicts 10-15%, CIBC says 14%. Overall prices have adjusted down about 5-7% this year.

Then there’s CMHC who predict Vancouver real estate activity to stabilize in 2010/11 as the provincial economy grows at a moderate rate and accompanying job gains will support housing demand. Strong international immigration will grow the population by 28,000 households. Existing home sales on MLS is expected to be slightly lower than last year’s level. The forecast is that resales will remain in line with job and population growth, approaching 82,500 sales in 2010 and 86,400 sales in 2011 in BC and the resale price will increase 5.6% in 2010, on gains made during the first half of the year.

CMHC forecast 2010 sales in Vancouver to drop by 6.2% over 2009 and for 2011 sales to drop by 2.9% over 2010. Average MLS price will be 10.6% higher this year and 2.3% in 2011.

What do you think? Share your story with us if you are currently a buyer or seller.

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I’m S. Geronimo Colbert, an elite downtown fitness professional, and with thanks to Maggie Chandler I’d like to introduce myself to those of you interested in quality personal training. Most successful people have organized networks of real estate agents, lawyers, therapists, doctors, mechanics, accountants and consultants to support our various needs. The same could be said of our network of friends. Yet many of us fail to do the same to protect our most valuable asset: our health and fitness. If you are interested in protecting and improving yours, there is simply no more efficient way to accomplish this than working with an elite trainer. Let Body by Geronimo be your solution. Visit my website or call me directly at 778 288 6516 to book your FREE consultation

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Currently there are 35 condos listed for sale, ranging in price from $916,000 for 1481sf with no view, on the second floor, to a Penthouse listed at $4.4M, which is one of four condos listed over $4M. There are only 4 listings under $1M, 22 listed between $1M and $2M, 4 between $2M and $4M. The average $psf is 1,042.

July saw 5 sales from $1,090,000 to $1,630,000 and August had 3 sales, from $560,000 for 877sf to $1M for 1185sf. Average days on market for the 8 solds were 85 and 861 was the average $psf. Sale price to list price ratio was 96%. Approx nine months of inventory, which has increased by one month since May.

Year to date there have been 23 sales on Bayshore Drive. Seven under $1M, 15 between $1M and $2M and one sale at $3M. Average days on market 73. Average $psf 878. Sale price to list price ratio 95%.

View my other posts on Bayshore Drive and see how this year’s shaping up

Bought or sold on Bayshore Drive? Have a comment? Current Seller or Buyer?

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The average prime rate from Jan 1, 2000 to Dec/09 was 4.94%, with a high of 7.50% and a low of 2.25%. Generally speaking strong economies and high interest rates are tied. Today we are in a weak global economy so we are experiencing low interest rates. The question remains when will interest rates rise and how quickly?

If you assume Prime will increase by .25% every 4 months, beginning in Jan’11 and given that the 3 year ARM is tied to Prime, then a 3 year fixed rate would be cheaper for the consumer. You can now get a 3 year fixed rate at 2.9% and a 3 year ARM at 2%. But at the end of 3 years the ARM rate would be 4%, given the .25% rise every 4 months and prime would be 5%, which is its 10 year average.

In the above scenario the client with a fixed rate would benefit in a climate with rising interest rates. The ARM client would benefit in a climate of fixed or falling rates.

Have you been in this situation? If so, what decision did you make and why?

Have a mortgage question? contact alma pasic , mortgage broker at verico wealth wizard financial

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The national average home price slid a slight 1.2% to $342,661 in June from a month ago, but remains 4.9% above year-ago levels. Now that home prices have fallen back in line with the 30-year historic appreciation rate of 5.5%, economists and industry experts expect prices to increase at a slower rate as the market balances.

The number of months of inventory measures the amount of time it would take to sell all the homes on the market at the current pace of sales if no new homes become available. There were 6.9 months of inventory in June, which is close to the level seen in March of 2009. Fewer new listings are expected to enter the market over the coming months, which should continue to stabilize the balance between supply and demand.

source: CREA, CMHC

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I just did an analysis of Kits condo buildings for a current buyer client and compared the sales of condos between $300,000 and $400,000 from January to July 2009 and the same for 2010. Here’s what I found.

In 2009 sales in buildings from 0-5 years old averaged $551 psf. Buildings from 5-10 years old averaged $537psf and buildings over 10 years averaged $520psf.

In 2010 sales in buildings from 0-5 years old averaged $683psf. Buildings from 5-10 years old averaged $602psf and buildings over 10 years averaged $563psf.

Condo buildings under 5 years appreciated $132psf in that time period, whilst buildings 5-10 years old appreciated $65psf and the buildings over 10 years appreciated $43psf.  These figures are an average and don’t take into consideration any specifices , such as location, amenities, etc.

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Taking a look at July’s sales we see a total of 354 Vancouver west side transactions in condos  and 60% of those were under $500,000 and 10% were over $1M. The one and two bedroom suites were selling about the same, with 167 one bedrooms and 158 two bedrooms, 14 three bedrooms and 15 studios. Average days on market was 50 and list price to sale price ratio was 97%. Average sale price $555,774 and average $psf was 627.

Townhome sales tallied 44 with 25% under $500,000, 15% were over $1M and the bulk selling between $500,000 and $1M. Average days on market 40. Sale price to list price ratio 97%. Average sale price was $ 733,602 and average $psf was 593.

Vancouver homes saw a total of 116 sales for the month of July and only 5 sales under $1M, the least expensive was $850,000.  80 sales between $1M and $2M, 22 sales between $2M and $3M, 5 between $3M and $4M and 4 over $4M, including one house selling over $5M and one over $6M. Average days on market was 38. Sale price to list price ratio was 96% and average sale price was $1,863,787.

Although there is a great difference in the average sale price of Vancouver homes, townhomes and condos, it appears that the lower price range is what’s presently selling the best and the market remains balanced with the average list price to sale price ratio coming in at 96-97% for all three categories. As well, the days on market are all under 50.

Best selling neighbourhood? South Granville with 16 house sales, narrowly beating out Dunbar with 15. Kits had the most towhome sales with 14, followed by Fairview with 11 and Downtown wins with the most condo sales at 106, followed by West End at 54.

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