Real Estate Board of Greater Vancouver (REBGV) – April Report

Spring delivers greater balance to Greater Vancouver housing market

A closer relationship between home buyer demand and the supply of homes for sale has been having a stabilizing impact on home prices in the Greater Vancouver housing market over the last three months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,627 on the Multiple Listing Service® (MLS®) in April 2013. This represents a 6.1 per cent decrease compared to the 2,799 sales recorded in April 2012, and an 11.9 per cent increase compared to the 2,347 sales in March 2013.

Last month’s sales equate to the lowest April total in the region since 2001 and 20.9 per cent below the 10-year sales average for the month.

“While the number of home sales remains below average, properties that are priced right are selling and we’re seeing greater balance between buyer demand and the number of homes listed for sale. This is having a steadying influence on home prices in the region,” says Sandra Wyant, REBGV president.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,876 in April. This represents a three per cent decline compared to the 6,056 new listings reported in April 2012 and a 21.4 per cent increase from the 4,839 new listings in March of this year. Last month’s new listing count was 0.4 per cent above the region’s 10-year new listing average for the month.

The total number of properties listed for sale on the MLS® in Greater Vancouver is 16,730, a 1.2 per cent increase compared to April 2012 and an 8.2 per cent increase compared to March 2013.

The sales-to-active-listings ratio currently sits at 15.7 per cent in Greater Vancouver. This is the second consecutive month that this ratio has been above 15 per cent. Previous to this, May 2012 was the last time this ratio was above 15 per cent.

“There have been modest increases in home prices across the region over the last three months. This comes on the heels of home price declines of approximately five to six per cent in Greater Vancouver during the last half of 2012,” Wyant said.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $597,300. This represents a decline of 3.9 per cent compared to this time last year and an increase of 1.6 per cent compared to January 2013.

Sales of detached properties reached 1,064 in April 2013, a decrease of 5.5 per cent from the 1,126 detached sales recorded in April 2012, and a 24.1 per cent decrease from the 1,402 units sold in April 2011. The benchmark price for detached properties decreased 5.2 per cent from April 2012 to $914,000. Since January the benchmark price of a detached home has increased 1.4 per cent.

Sales of apartment properties reached 1,052 in April 2013, a decline of 11.6 per cent compared to the 1,190 sales in April 2012, and a decrease of 12.4 per cent compared to the 1,201 sales in April 2011. The benchmark price of an apartment property decreased 2.6 per cent from April 2012 to $365,900. Since January the benchmark price of an apartment home has increased 2.1 per cent.

Attached property sales in April 2013 totalled 511, an increase of 5.8 per cent compared to the 483 sales in April 2012, and a 17.8 per cent decrease from the 622 attached properties sold in April 2011. The benchmark price of an attached unit decreased 3.5 per cent between April 2012 and 2013 to $455,200. Since January the benchmark price of an attached home has increased 1.2 per cent.

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2013 will be a challenging year for home sellers

The current supply of homes for sale in Richmond at over 10 months of inventory is putting pressure on home sellers who want to sell their homes in a hurry. It is very challenging for home sellers to deal with when buyers are in no hurry to buy. In spite of low interest rates at all-time-low of 3.0% or less for 5-year fixed mortgages, buyers are staying on the sideline. Many resale homes are languishing on the market due to buyers not willing to pay the prices sellers are expecting from their homes.

The first salvo from Parc Riviera

Parc Riviera, a riverfront project in north-east Richmond is a 20-acre master planned community with five acres of parks and riverfront trails. The project featured a Clubhouse and a Daycare is planned for the area. The developer is now offering pre-construction sale of condos starting from the mid $200,000’s. The selling prices for the first phase of condos and townhouses at Parc Riviera could set the stage for Richmond home prices to come down.  The ad placed in Vancouver 24 Hrs and Richmond News boldly advertised townhouses selling from $369 per sq ft and condos from $386 per sq ft. With condos starting at $277,900 and townhomes starting at $399,900. Current selling price per sq ft for resale wood-frame condo in Richmond is around $405 to $420 per sq ft. There is a price advantage for home buyers to consider buying their new homes at Parc Riviera instead of the more expansive resale homes elsewhere in Richmond.

How resale condos and townhouses compared?

Home prices at Parc Riviera are priced some 10% to 15% lower than the selling prices of resale condos and townhouses transacted the past 3 months. Current resale lowrise wood-frame condos and townhouses are priced from $435 to $475 per sq ft. Recent condos in Richmond were sold at prices from $400 to $450 per sq ft.

The overhang of too many homes chasing too few buyers could only mean lower selling prices for sellers. Motivated sellers would take low-ball offers to sell their homes. A likely scenario is for condo and townhouse prices to come down to $400 per sq ft or lower.  Condo owners who bought the past 3 years when selling in today’s market, stand to lose thousands of dollars.

Disclaimer: The opinions expressed herein are not intended to be a forecast of future events, a guarantee of future results or real estate market patterns, and are subject to change based on market and other conditions. The information and discussion on topics of interest are not intended to be a comprehensive discussion of the strategies or concepts mentioned.

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The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,797 on the Multiple Listing Service® (MLS®) in February 2013. This represents a 29.4 per cent decrease compared to the 2,545 sales recorded in February 2012, and a 33 per cent increase compared to the 1,351 sales in January 2013.

Last month’s sales were the second lowest February total in the region since 2001 and 30.9 per cent below the 10-year sales average for the month.

“Sales in February followed recent trends and were below seasonal averages, though our members tell us they saw more traffic at open houses last month compared to the previous six to eight months, said Eugen Klein, REBGV president.

The sales-to-active-listings ratio currently sits at 12.2 per cent in Greater Vancouver, a two per cent increase from last month. This is the first time this ratio has been above 11 per cent since June 2012.

“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,” Klein said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,833 in February. This represents a 13 per cent decline compared to the 5,552 new listings reported in February 2012 and a 5.8 per cent decline from the 5,128 new listings in January. Last month’s new listing count was 4 per cent higher than the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 14,789, a 5.2 per cent increase compared to February 2012 and an 11.6 per cent increase compared to January 2013.

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.6 per cent to $590,400. This represents a 3.3 per cent decline compared to this time last year.

Sales of detached properties in February 2013 reached 704, a decrease of 36.1 per cent from the 1,101 detached sales recorded in February 2012, and a 49.8 per cent decrease from the 1,402 units sold in February 2011. The benchmark price for detached properties decreased 4.5 per cent from February 2012 to $901,500. Since reaching a peak in May 2012, the benchmark price of a detached property has declined 6.8 per cent.

Sales of apartment properties reached 760 in February 2013, a decline of 25.5 per cent compared to the 1,020 sales in February 2012, and a decrease of 37 per cent compared to the 1,206 sales in February 2011. The benchmark price of an apartment property decreased 3 per cent from February 2012 to $360,400. Since reaching a peak in May 2012, the benchmark price of an apartment property has declined 5.1 per cent.

Attached property sales in February 2013 totalled 333, a decline of 21.5 per cent compared to the 424 sales in February 2012, and a 31.9 per cent decrease from the 489 attached properties sold in February 2011. The benchmark price of an attached unit decreased 0.7 per cent between February 2012 and 2013 to $455,500. Since reaching a peak in April 2012, the benchmark price of an attached property has declined 6.5 per cent.

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Greater Vancouver Home Sales Remain Quiet

VANCOUVER, B.C. – February 4, 2013 – Home buyer demand remains below historical averages in the Greater Vancouver housing market. This has led some home sellers to remove their homes from the market in recent months. View full report here.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,351 on the Multiple Listing Service® (MLS®) in January 2013. This represents a 14.3 per cent decrease compared to the 1,577 sales recorded in January 2012, and an 18.3 per cent increase compared to the 1,142 sales in December 2012. Last month’s sales were the second lowest January total in the region since 2001 and 18.7 per cent below the 10-year sales average for the month.

“Home sale activity has been below historical averages in Greater Vancouver for about seven months. This has caused a gradual decline in home prices of about 6 per cent since reaching a peak last spring,” Klein said.

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.9 per cent to $588,100. This represents a 2.8 per cent decline compared to this time last year.

“It appears many home sellers are opting to remove their homes from the market rather than settle for a price they don’t want,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,128 in January. This represents a 10.9 per cent decline compared to the 5,756 new listings reported in January 2012. Last month’s new listing count was 18.9 per cent higher than the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,246, a 5.6 per cent increase compared to January 2012 and a 4.5 per cent decline compared to December 2012. This is the fourth consecutive month that overall home listings have declined in the region.

The old real-estate mantra “location, location, location” is ingrained into the consciousness of house-hunters everywhere because it is just that vital. Simply put: it’s one of the most important factors to consider when looking for a new place. Indeed, those who move into a new house or apartment end up living in the overall neighborhood just as much as they do their home. That’s why it’s important to put as much care into neighborhood selection as property selection.

With that in mind, here are some quick and foolproof ways the average home hunter can ensure they are relocating to a neighborhood conducive to their lifestyle as well as their familiar obligations.

Ask around

Of course, it’s important to try and talk to as many potential neighbors as possible when visiting an open house or apartment showing. It is equally important to walk the area and speak to local merchants, shopkeepers and other members of the community in order to get a sense of the overall vibe. Doing so will give the person relocating a fair idea of not just what the nearby amenities may be, but the type of members of the community as well.

For example, those looking for a neighborhood good for families aren’t going to want to move into an area populated mostly with college students. Conversely, most college students likely aren’t going to want to move into an area or building predominantly consisting of families.

Visit the neighborhood at different times

It’s one thing to visit a home or apartment building at 1:30 in the afternoon when everything is peaceful; it’s another to visit it at night or early in the morning. Visiting an area at night will give the mover a sense of the safety factor of the neighborhood, and by visiting in the morning, those same people can gauge whether or not traffic congestion will present problems with the work commute.

Consider peripheral costs

Home prices and property taxes are obviously the most important cost factors to keep in mind when looking for a new place, but there are others that are nearly just as important. For example, while one home in a certain area may offer an attractive price, it may be so far away from work as to make the commuting cost prohibitively expensive. These days, everyone is painfully aware of the rising cost of gasoline, so moving into a slightly more expensive home closer to work may balance out by saving the mover money on fuel in the long run.

Utilize the Internet

This may seem like an obvious choice, especially in today’s era when everyone is online constantly. But there are some great resources for those looking to relocate to a new area. On the subscription end, Neighborhoodscout.com provides home hunters with neighborhood crime figures, school-performance stats as well as price-appreciation records of homes in the area. The site costs $29.99 for a monthly subscription. On the free end, Streetadvisor offers comprehensive neighborhood reviews. User’s can filter search results by a number of criteria, including type of residents, amenities and schools.

By keeping these tips in mind, those looking to buy a new home or rent a new apartment should have no trouble finding out all relevant info of their potential new neighborhood.

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Home renovations are fun and rewarding, but unfortunately, they are somewhat costly. The good news is that there are ways you can get the results you want without throwing money away needlessly. With a little forethought and careful planning, you can have home improvements done and still stick within a budget.

Prioritize

Almost all homeowners have a list of projects they would like to have done. The trick is to figure out which ones you absolutely need and which ones you can live without or do later. You have to be realistic about what you can afford. You might want to remodel the bathroom and add a hot tub, but what about your kitchen that dates back to the 1980s? Choose projects based on your needs and the value they add to your home, not just the ones that you want the most.

Know Exactly What You Want

The last thing you want to do is tell a contractor that you have changed your mind about something or tell them you want something that they did not originally figure into the quote. You can be certain the contractor will add the cost of extra labor and materials into the bill. Additionally, he or she may have to undo or redo finished work and will charge you for that as well. Think about your home improvement project from every angle and communicate call your ideas clearly to your contractor so that neither one of you receives any unpleasant surprises.

Shop Around

Do not just hire someone based on a friend’s recommendation or go with the first quote you get. Compare bids from different contractors to make sure you get the best possible price. Additionally, you should check the contractor’s reputation, and if possible, ask to speak to some of their former clients. Going with a cheaper contractor who does shoddy work can actually cost you more in the long run. Balance out getting the best price with finding the contractor who does the best work.

Do You Need Soundproofing?

Soundproofing is very popular these days, especially for rooms with home theatre systems. Soundproofing is a good investment, but it does involve some serious structural work that comes with a hefty price tag. Some rooms are worth investing in soundproofing, while it may not be as essential for others. For example, if you have a big screen television and high mega-watt sound system in your basement then you might want to have that room sound proofed, but you do not necessarily need your son’s bedroom soundproofed even if he does play guitar.

Planning and research are your two biggest allies. Determine your needs; asses which ones are most important and find a contractor who will quality work at a reasonable price. You do not always have to break the bank to make home improvements.

About the Author: Kandis Jernejcic is a home improvement expert who loves to use green glue buckets to create home theaters, drapes and window coverings to change a living room, and fantastic repurposed furniture to change the shape of any space.

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Peak housing prices are now over in Vancouver

The housing market in Vancouver the past 8 years had been supported by wealth from new immigrants, not income. A lot of this is wealth from newly arrived immigrants, although it is difficult to quantify it.

Many of the purchases make by home buyers the past few years don’t need a mortgage because they have the cash and can buy a house outright. But the supply of people is now diminishing, due to the changes happening in the immigration policy for new immigrants.

There is a slowing down in people coming to Vancouver, especially foreign residents with a lot of money. With lack of buying activities, the market looks very ripe for a meaningful correction. Some critics are predicting a 10% or more drop in home prices in Vancouver. View homes for sale in Vancouver West.

A drop of 5% to 10% can be expected

Although the average price of a detached home in Vancouver decreased slightly year-over-year, ad condos dropped just 3.6% year-over-year, 2013 could witness a more significant drop in home prices as supply begins to flood the market in the spring.

The real estate market has been slow in Vancouver the past 12 months. Sellers have not reduced their listing prices much. Buyers on the other hand, stay on the sideline hoping prices to fall more. The current real estate market in Vancouver can best be described as a ‘stand off’ between two opposing parties.

It is now generally accepted that home prices are going down the next year or two. In high prices areas like Vancouver West, Richmond and the North Shore, a marked softening in home prices was recorded the past few months.

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Prices hold firm as home buyers and sellers conclude 2012 from the sidelines

VANCOUVER, B.C. – January 3, 2013 – The Greater Vancouver housing market experienced below average home sale totals, typical home listing activity and modest declines in home prices in 2012.

The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2012 reached 25,032, a 22.7 per cent decline from the 32,387 sales recorded in 2011, and an 18.2 per cent decrease from the 30,595 residential sales in 2010. Last year’s home sale total was 25.7 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region.

The number of residential properties listed for sale on the MLS® in Greater Vancouver declined 2 per cent in 2012 to 58,379 compared to the 59,539 properties listed in 2011. Looking back further, last year’s total represents a 0.6 per cent increase compared to the 58,009 residential properties listed in 2010. Last year’s listing total was 6.1 per cent above the ten-year average for annual MLS® property listings in the region.

“For much of 2012 we saw a collective hesitation on the part of buyers and sellers in the Greater Vancouver housing market. This behavior was reflected in lower than average home sale activity and modest fluctuations in home prices,” Eugen Klein, REBGV president said.

Residential property sales in Greater Vancouver totalled 1,142 in December 2012, a decrease of 31.1 per cent from the 1,658 sales recorded in December 2011 and a 32.3 per cent decline compared to November 2012 when 1,686 home sales occurred.

December sales were 38.4 per cent below the 10-year December sales average of 1,855. Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.8 per cent to $590,800. This represents a 2.3 per cent decline when compared to this time last year.

“We saw home prices come down a bit during the latter half of the year. During the same period, we saw fewer home sales and listings,” Klein said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,380 in December 2012. This represents a 15.3 per cent decline compared to the 1,629 units listed in December 2011 and a 50 per cent decline compared to November 2012 when 2,758 properties were listed.

Sales of detached properties in December 2012 reached 425, a decrease of 32.5 per cent from the 630 detached sales recorded in December 2011, and a 44.7 per cent decrease from the 769 units sold in December 2010. The benchmark price for detached properties decreased 2.7 per cent from December 2011 to $904,200. Since reaching a peak in May, the benchmark price of a detached property has declined 6.5%.

Sales of apartment properties reached 504 in December 2012, a decline of 34.9 per cent compared to the 774 sales in December 2011, and a decrease of 37.9 per cent compared to the 811 sales in December 2010.The benchmark price of an apartment property decreased 1.9 per cent from December 2011 to $361,200. Since reaching a peak in May, the benchmark price of an apartment property has declined 12.8%.

Attached property sales in December 2012 totalled 213, a decline of 16.1 per cent compared to the 254 sales in December 2011, and a 33.2 per cent decrease from the 319 attached properties sold in December 2010. The benchmark price of an attached unit decreased 2.6 per cent between December 2011 and 2012 to $450,900. Since reaching a peak in April, the benchmark price of an attached property has declined 4.4%.

“Activity continues to vary depending on area so it’s important to work with your REALTOR® and other professionals to understand the trends in your area of interest,” Klein said.

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Vancouver, B.C. – December 4, 2012 – Over the past six months, the Greater Vancouver housing market has seen a reduction in the number of homes listed for sale, a gradual moderation in home prices and a decrease in property sales compared to historical averages. View full report here.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of  detached, attached and apartment properties reached 1,686 on the region’s Multiple Listing Service® (MLS®) in November, a 28.6 per cent decline compared to the 2,360 sales in November 2011 and a 12.7 per cent decline compared to the 1,931 home sales in October 2012.

November sales were 30.3 per cent below the 10-year November sales average of 2,420. “Home sellers appear more inclined to remove their properties from the market today rather than lower prices to sell their properties. On the other hand, buyers appear to be expecting prices to moderate,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 2,758 in November. This represents a 14.4 per cent decline compared to November 2011 when 3,222 properties were listed for sale on the MLS® and a 36.2 per cent decline compared to the 4,323 new listings in October 2012.

New listings were 12.9 per cent below the 10-year November average of 3,168. At 15,689, the total number of residential property listings on the MLS® increased 13 per cent from this time last year and declined 9.7 per cent compared to October 2012. Total listings in the region have declined by nearly 3,000 properties since reaching a peak of 18,493 in June.

The region’s sales-to-active-listings ratio was unchanged from October at 11 per cent. “Home prices in Greater Vancouver have generally declined between three and five and a half per cent, depending on property type, since reaching a peak six months ago,” Klein said. “Changes in home prices vary per municipality and neighbourhood. It’s good to check local market statistics with your REALTOR®.”

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 4.5 per cent to $596,900. This represents a 1.7 per cent decline when we compared to this time last year.

Sales of detached properties in Greater Vancouver reached 629 in November, a decrease of 31.3 per cent from the 916 detached sales recorded in November 2011, and a 40.1 per cent decrease from the 1,050 units sold in November 2010. Since reaching a peak in May, the benchmark price for a detached property in Greater Vancouver has declined 5.5 per cent to $914,500.

Sales of apartment properties reached 750 in November 2012, a 25 per cent decrease compared to the 1,000 sales in November 2011, and a decrease of 28.7 per cent compared to the 1,052 sales in November 2010. Since reaching a peak in May, the benchmark price for an apartment property in Greater Vancouver has declined 3.9 per cent to $364,900.

Attached property sales in November 2012 totalled 307, a 30.9 per cent decrease compared to the 444 sales in November 2011, and a 24.6 per cent decrease from the 407 attached properties sold in November 2010. Since reaching a peak in April, the benchmark price for an attached property in Greater Vancouver has declined 3.6 per cent to $454,300.

Feature Facts:

• Of the 15,689 homes currently for sale on the MLS® in Greater Vancouver, 49.6 per cent are listed for $600,000 or less. Of those, 1,321 are detached properties, 5,039 are condominiums and 1,419 are  townhomes.
• Of the 1,686 homes that sold in Greater Vancouver in November, 273 (16%) sold for $1 million or more.

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Greater Vancouver Housing Report – November 2, 2012

The Greater Vancouver housing market saw a slight increase in the number of home sales, a slight reduction in the number of listings, and a slight decrease in home prices in October compared to the summer months. With those changes, the sales-to-active-listings ratio increased to 11 per cent in October from 8 per cent in September.

The Real Estate Board of Greater Vancouver (REBGV) reported 1,931 residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) in October, a 16.7 per cent decline compared to the 2,317 sales in October 2011 and a 27.4 per cent increase compared to the 1,516 home sales in September 2012.

October sales were 28.5 per cent below the 10-year October sales average of 2,700.

“Buyer demand increased slightly in October compared to the previous few months,” Sandra Wyant, REBGV president-elect said. “Overall conditions in today’s market remain in favour of buyers, with low interest rates, more choice, and less time pressure in terms of decision-making. This translates into a calmer atmosphere for those looking to buy a home and it places more onus on sellers to ensure their homes are priced to compete in today’s marketplace.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,323 in October. This represents a 1.2 per cent decline compared to October 2011 when 4,374 properties were listed for sale on the MLS® and an 18.8 per cent decline compared to the 5,321 new listings in September 2012.

At 17,370, the total number of residential property listings on the MLS® increased 12 per cent from this time last year and declined 5.3 per cent compared to September 2012.

Since reaching a peak of $625,100 in May, the MLS Home Price Index® (MLS HPI®) composite benchmark price for all residential properties in Greater Vancouver declined 3.4 per cent to $603,800 in October. This represents a 0.8 per cent decline compared to last year. “There’ve been modest price changes since they peaked in the spring. The largest reductions have occurred in the areas and property types that experienced the biggest price increases over the last few years,” Wyant said.

Since hitting a record high in April, the benchmark price of a detached home on the Westside of Vancouver has declined 8.6 per cent while detached homes in Richmond and West Vancouver have seen declines of 6 per cent over the same time period.

Sales of detached properties in Greater Vancouver reached 790 in October, a decrease of 18.9 per cent from the 974 detached sales recorded in October 2011, and a 19.1 per cent decrease from the 976 units sold in October 2010. Since reaching a peak in May, the benchmark price for a detached property in Greater Vancouver has declined 4.1 per cent to $927,500.

Sales of apartment properties reached 803 in October 2012, a 16.2 per cent decrease compared to the 958 sales in October 2011, and a decrease of 18.4 per cent compared to the 984 sales in October 2010. Since reaching a peak in May, the benchmark price for an apartment property in Greater Vancouver has declined 2.9 per cent to $368,800.

Attached property sales in October 2012 totalled 338, an 11.5 per cent decrease compared to the 382 sales in October 2011, and a 10.3 per cent decrease from the 377 attached properties sold in October 2010. Since reaching a peak in April, the benchmark price for an attached property in Greater Vancouver has declined 2.9 per cent to $457,700.

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