The Signs of the Times for Vancouver Real Estate Housing Prices - Property Values in Flux and Balancing...

All About Balance in the Vancouver Real Estate Market Housing Prices

Moderate price increases with strengthen the property market in Vancouver says Ryan for Metro Vancouver newspaper. A recent shift in the Lower Mainland real estate market is welcome news to homebuyers who watched property values increase by double percentage digits over the last few years. According to the Real Estate Board of Greater Vancouver (REBGV), residential Vancouver property sales in Metro Vancouver have declined 30.7 per cent from May 2007 to May 2008 while listings are up 20.2 per cent. This is a shift from the white-hot market Vancouverites have come to expect over the last few years with multiple offers no longer being the norm. Dave Watt, REBGV president, said that the changes in the Vancouver real estate market pricing are “good news from an affordability standpoint.” “with more property listings and a decline in the number of sales, prices are not increasing as rapidly,” Watt said. The Vancouver housing market is at a balanced state, sellers have more competition and buyers have more selection.” In the end, it’s all about balance. Even with an influx of listings, the moderate price increases will only continue to strengthen the real estate Vancouver market and decrease the chance of a “market bubble burst,” which bodes well for more homeowners and potential purchases. Greg Carros is the managing broker of Sotheby’s International Realty in Vancouver and West Vancouver. “The selection of properties is the best in years, home buyers can now negotiate a deal that makes sense to them,” Carros said. “The interest rates are still at record lows and Vancouver as a world-class city is still a bargain for those properties in the core areas. Where else in a major city can you be minutes from the airport, city centre, recreation and cultural events?” So, while Vancouver real estate remains one of the most expensive markets in the country, the balanced property market we’re now seeing makes it more affordable for first-time homebuyers to get a firm grasp on the property ladder and feel confident that their investment will boast a healthy return.

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Analysts in Greater Vancouver See Prices Soaring

A housing conference in Vancouver last month heard that Metro Vancouver real estate home prices will increase again this year and in 2009. Charles King, an analyst with Canada Mortgage and Housing Corporation, said Metro Vancouver home prices will increase 8 per cent this year and 5 per cent next year. King noted that, at the end of 2007, there was $800 billion in outstanding mortgage credit in Canada, and forecast that it will reach $1 trillion by 2010. BC, King noted has the lowest mortgage arrears rate in Canada, at a mere 0.16 per cent. The Homeowner Protection Office sponsored the May housing conference.

Vancouver Condo Crazy

Vancouverites lead nation in high-rise condo ownership according to StatsCan and published in Metro Vancouver by Kristen T. It seems that not all those construction cranes that dot the Vancouver skyline are 2010 related. More people own condos in Vancouver than anywhere else in Canada, a trend that’s fuelling a surge in high-rise construction in the city. According to 2006 census data released yesterday by Statistics Canada, about one in three people who own a home here live in a condo, compared to about 10 per cent nationwide. Robyn Adamache, Vancouver-based senior marketing analyst with Canadian Housing And Mortgage Corporation, said it comes down to affordability. “Generally it costs about half as much to buy a condominium as a single detached home,” she said. “Of course, the other reason is lifestyle factors, (such) as the amenities and central locations condos are generally located in.” “What we’re seeing in new home building in Greater Vancouver is the vast majority, (about) 80 per cent of homes, are of the multiple unit variety.” The trend also holds true nationally, where around 913,000 Canadian households own a condo, up 36.5 per cent from five years earlier. That increase has driven home ownership to the highest it’s ever been. Around 68.6 per cent of Canadian households own their home slightly lower than the British Columbia average of 69.7 per cent. Above average: Around 29 per cent of B.C. households spend 30 per cent or more of their income on their home, above the national average of 24.9 per cent in 2006, according to StatsCan.

The High Price of Homes in Vancouver

From the 24 Hours newspaper by Dharm M. More people in the Vancouver region are contributing a higher percentage of their income towards shelter costs, according to 2006 census data released yesterday by Statistics Canada. The numbers show close to a third of all households in Vancouver, renters and owners, spend more than 30 per cent of their income to pay housing costs. Canadian Mortgage and Housing Corporation analyst Sarena Teakles said traditionally housing costs above 30 per cent mark are considered unaffordable. Area homeowners are apparently choosing otherwise. “A lot of people are finding that it is worthwhile for them to pay the extra money to have the accommodations that they want,” she said. Vancouver housing costs are taking a big chunk out of people’s wallets, StatsCan has found. The number of homeowners paying above 30 per cent affordability marker has increased 29.9 per cent in 2006 from 2001. Teakles suggest opting for condos may be a common choice because of their low price point. About 31 per cent of all owned homes in Vancouver real estate region are condos and Teakles predicts that number can only increase as property developers are forced to build upwards. Statistics Canada reports the rate of condo ownership is highest in B.C. census metropolitan areas but the number of condo owners grew fastest in Calgary between 2001 and 2006.

Pricey Properties in Vancouver Real Estate Market

Vancouver is the most expensive market for detached family homes according to Metro Vancouver’s Hollie. Homebuyers looking for a bungalow in Vancouver better want it twice as much as buyers elsewhere in the country. Detached Vancouver bungalows now cost at average of $850,000, which is almost double those in the next most expensive city, Calgary. Vancouver bungalows rose in price by 12.5 per cent from last year, when they were sold for an average of $760,000, according to a report by Royal LePage Real Estate Services released yesterday. By comparison, Halifax bungalows are selling for $210,000, and in Calgary, they are priced at $440,000. Bill Binnie, the president of Royal LePage Northshore, North Vancouver, said the housing costs in Vancouver have historically been high in the region. “Vancouver is enjoying a growth in population and limited supply of land,” he said. Across the rest of Canada: The average bungalow prices across the rest of Canada differ by as much as $200,000. Montreal at $230,000, Ottawa at $310,000, Toronto at $430,000 and Edmonton at $330,000 which don’t close close to Vancouver’s average bungalow price of $850,000.

Housing Sales Will Remain Strong in Canada

Canada’s resale housing market will remain at or near record levels this year, the Canadian Real Estate Association predicts. The realtors group said multiple listing services sales est a record of 520,747 units in 2007, up 7.6 per cent from 2006 in the steepest increase since 2002, and this year’s MLS transactions in Canada are forecast to remain solidly above 500,000. The association says three factors will save Canada’s hosuing market from the woes engulfing the housing sector in the United States: consumer confidence, employment and affordable interest rates.