The 2009 Vancouver Home and Interior Design Show at BC Place Stadium - October 15th - 18th, 2009 with Ty Pennington Endorsement

Introducing the The Vancouver Home and Interior Design Show – October 15 – 18, 2009

The 2009 Vancouver Home and Interior Design Show will be happening this October 2009 and is officially endorsed by Ty Pennington, the host of Extreme Makeover: Home Edition! The exact dates for the 2009 Vancouver Home & Interior Design Show is set for Oct 15th to 18th at BC Place Stadium and the hours include: Thursday, October 15th from 4 to 9pm, Friday, October 16th from noon to 9pm, Saturday, October 17th from 10am to 9pm and Sunday, October 18th from 10am to 6pm. It’s time to update your look. Is your home in need of some updating? Get inspired and informed with helpful advice, money-saving solutions and the coolest new products at the Vancouver Home + Interior Design Show 2009. It’s just four days only so get your tickets today. The special appearance highlight: don’t miss Ty Pennington’s first and only Canadian appearance on the opening night of the 2009 Vancouver Home & Interior Design Show, Thursday! Plus, it’s Girls Night Out so free goodie bags for the first 250 ladies at the show. Visit the website for full details. Ty Pennington, Marketplace Events spokesperson and host of Extreme Makeover: Home Edition as seen on HGTV. Connect your space to the future. Discover the latest in home installations, electronics and décor at Tech Style with ConnectPro by Future Shop designed by HGTV’s Cheryl Torrenueva, here at the 2009 Vancouver Home and Interior Design Show. Get the inside dish. Join Vancouver’s hottest chefs including, Foot Network’s Anthony Sedlak, on The Food Stage for cooking demos, BC wine pairings and a chance to win culinary prizes and score one on one consultations, all here at the Vancovuer Home and Interior Design Show 2009! The Sponsors include ConnectPro, BC Hydro, Urban Barn and HGTV. You can visit the Vancouver Home and Interior DesignShow website today at www.VancouverHomeShow.com If you pick up the Fall 2009 edition of the West Coast Homes & Design magazine and turn to Page 51, you will find a coupon where you can clip out and Save $4 on admission. Buty Vancouver Home and Interior Design Show tickets online and save by entering promo code Westcoast.

Summer 2009 Update: Vancouver Real Estate Market June Numbers, Electric Vehicle Plug-In for New Multi-Family Projects & Vancouver Cost of Living Drops

June 2009 Greater Vancouver Real Estate Market Update

It was a June to remember for the Vancouver real estat market, as sales and prices pushed upwards amidst a renewed optimism in the global economy recovery coupled with lowered asking prices and historically low interest rates. In the Greater Vancouver area, the price of a detached house in June 2009 was about 8% higher then in February 2009 ($649,000 benchmark price) and up 3% compared to this May 2009 (benchmark price of $680,000). For June 2009, the average benchmarck price for a detached Vancouver home was above $701,000, touching this mark for the first time since last year. With signs of a Canadian economic recovery and also an end to the global recession in site, the Greater Vancouver housing prices have steadily increased since February 2009. In addition to the detached homes, the attached Vancouver homes also saw a benchmark price gain up to $441k while condos/apartments also saw a 2% rise to an average of $357k. June 2009 signified the second busiest month for number of Vancouver real estate sales in the Lower Mainland, only to be bettered by June 2005. At one point, the average Vancouver home prices dropped 15% from the height of the market in 2008 to the lowest point earlier in 2009. Right now, Vancouver housing prices are still down 8% compared to June 2008, but with a renewed optimism and more homebuyers looking to purchase at low interest rates, the trends towards higher benchmark sales prices and number of sales will likely continue through the year. In most markets, homebuyers are also seeing a shrinking number of home listings compared to last year, which is a sign of a more balanced Greater Vancouver real estate market.

According to the North Shore News, although prices are still down, values are recovering and the number of Greater Vancouver real estate sales in June 2009 were record breaking and at all time highs! Whether it is pent up demand from homebuyers who opted to stay away from purchasing last year or lower prices, North Shore real estate sales continue to increase as well through 2009, signifying a huge rebound in both property values as well as real estate sales. While the North Shore property prices are still lower than the all-time peak highs in 2007 and 2008, both West Van and North Vancouver property sales have accelerated faster then most analysts and experts had predicted. In June 2009, the North Shore (West Vancouver, District and City of North Vancouver) had four hundred and seventy two sales, as released by the Greater Vancouver real estate board on July 3, 2009. This increase in sales represents the 5th consecutive month in which the number of North Shore real estate sales has increased, which followed a 7 month period where property values plummeted. The worst month came in December 2008, when only 65 homes were sold on the North Shore. The benchmark price for a detached home in west Vancouver was still down at around $1.25 million, which represents a 16.7% decrease in value compared to last May 2008. In the North Vancouver real estate market, the values are 12% lower at a benchmark price of $812k. The rebound in North Shore property sales and that of the entire Greater Vancouver and Fraser Valley real estate markets is due in part to these drop in asking/listing prices which increases affordability for all lifestyles and age groups in addition to the lowest interest mortgage rates in the history of the country. With many people not purchasing property in 2008, these homebuyers are showing up in flocks to buy devalued Vancouver property now with interest rates as low as they are. The entire Greater Vancouver real estate market showed a 75.6% increase in number of sales over last June 2008 with 4,259 total homes changing hands, which represents the second largest sales month of all time, just behind the 4,333 sales in June 2005.

City of Vancouver Pushes for Car Plug-In Requirements for New Real Estate Developments

The City of Vancouver is pushing for a new requirement in building processes, plug-ins for electric vehicles. This is the first step in any major municipality to have this requirement for Vancouver real estate construction. Hping to build and they will come approach, any new Vancouver development, whether it be condos, townhomes or single family homes will require plug-in stations in garages or parking stalls for electric vehicles according to 24 Hours Vancouver. Vancouver developers will be required by building law to include a specified number of electric plug-in stalls for new developments depending on the size of the project for multi-family housing. As one of the defining factors of electric vehicles making it into the common marketplace, the City of Vancouver hopes that this push in new Vancouver real estate requirements will help facilitate more electric vehicle sales and thereby creating a healthier environment within our city. Currently, the City of Vancouver is asking for at least ten per cent of all parking stalls/garages to have plug-in capabilities for electric vehicles. According to the Vancouver Electric Vehicle Association, they think this is a good move by the City but says that it should become a requirement that all parking stalls for new multi-family Vancouver housing projects should have these electric plug-ins available, which will be in line with future growth, tenants and homebuyers. However, there are many local Vancouver developers who are opposed to such changes in building requirements, citing that electric vehicles are not mainstream yet. The estimated increase in building costs for the 10% of all parking stalls to have electric vehicle plug ins is a mere 0.5 per cent.

Vancouver Cost of Living Falls

Contrary to popular believe, Vancouver’s cost of living has fallen down the ranks for world class cities according to the latest 2009 Worldwide Cost of Living survey. According to Metro News Vancouver, the City of Vancouver is now 93rd most expensive city to live in, which is surprisingly tied with Panama City. Last year in 2008 Worldwide Cost of Living survey, the City of Vancouver ranked 64th (which represents a drop in 23 places for this year). Some of the major reasons for the drop is the strength of the Canadian Dollar globally, which reduces the cost of living here in Vancouver. The priciest Canadian City was Toronto at 84th, Calgary at 89th followed by Vancouver. The 2009 Worldwide Cost of Living survey covered one hundred and forty three cities in six continents and the top 2 priciest cities were in Japan (Tokyo and Osaka).

April 2009 Vancouver Real Estate Market: BC Home Inspectors, Stable Property Market, FINTRAC, Little Mountain Housing, Vancouver Leaky Condos

B.C. Home Inspectors Must Be Certified

Beginning March 31, 2009, all home inspects in the province of British Columbia must be licensed to inspect homes. The BC government passed this law and is expected to provide greater security to Vancouver home buyers. The B.C. home inspectors will be licensed under the BC Business Practices and Consumer Protection Authority. BC Home Inspectors are often called in during a home sale, and the Real Estate Boards across Greater Vancouver Regional District have applauded the licensing requirement. A BC home inspector seeking a license must first pass muster with the B.C. Branch of the Canadian Association of Home and Property Inspectors, the Applied Sciences Technologists and Technicians of B.C. or the National Certification Program for Home and Property Inspects. A BC home inspector that practices in contravention of the regulations faces discipline, including penalties of up to $5,000 per infraction.

The Greater Vancouver Housing Market is Returning to Stable Sales

According to the Real Estate Weekly magazine, the entire Metro Vancouver and Fraser Valley real estate markets are returning to a more stable marketplace with listings and sales happening much quicker when compared to the previous six months. According to the Real Estate Board of Greater Vancouver, the hosuing market in Vancouver real estate property market has calmed to a more stable market with sales rising more than 50 per cent in March 2009 compared to a month earlier in February 2009 (that also saw a huge increase compared to the first month of the year). The Real Estate Board of Greater Vancouver reported that 2,2665 residential home sales were recorded in Greater Vancouver real estate district in March 2009, a fifty three pre cent increase over February, but a 24.4 per cent decrease over March 2008 when things were still booming at the time. This represents the second straight month of increased sales in the Greater Vancouver real estate market and much higher levels are also expected for April 2009 numbers when they come in in May. Obviously, there is more consumer homebuyer confidence in the Vancouver real estate market that is returning after six months of declining sales volume and property values. The Vancouver property sales activity is rising to more typical levels given the season, and the number of Vancouver homes being listed for sale are also leveling off, which is a great sign of a more balanced property market. The number of new residential listings on MLS actually declined by 22.7 per cent in March 2009 and for the 5th month in a row, the number of new Vancouver home listings has actually decreased. There has been more active transactions from first time Vancouver home buyers who are definitely attracted to the lowest mortgage rates in history, in addition to a great selection of listings being offered and obviously, greater affordability. The Real Estate Vancouver Board’s Housing Price Index for detached Vancouver homes also fell 15.1 per cent, which is also a good sign for the market.

Real Estate Developers Must Also Report to FINTRAC

Real estate developers, like real estate agents, will have to comply with new federal regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act according to the Real Estate Weekly article. Real estate developers in Canada have until February 20, 2009 to meet the filing deadline. Development companies that fail to report transactions properly under Financial Transaction and Reports Analysis Centre of Canada (FINTRAC) guidelines could face fines up to $500,000. Executives could be fined up to $100,000 per person. Realtors began complying with the tighter reporting rules this past June, and all new regulations accompanying the act will kick in by September 2009. Realtors have until January 2009 to comply or face penalties. Every real estate developer in Canada who has sold atl east five homes, one commercial or industrial building, or a condo or apartment complex will be subject to the act’s client-indentification, record-keeping and reporting requirements when they sell a property. The new rules are designed to bring Canada’s anti-money laundering rules up to international standards. The new rules are designed to improve enforcement of the law but they will also place a greater regulatory burden on real estate developers and reporting agencies, including banks and loan companies. Real estate developers in Canada will have to document proof of identity of people and companies involved in every transaction and keep that information on file for five years in case FINTRAC, a federal agency that polices financial transactions, should want to review it. Any real estate developer who receives $10,000 or more in cash for a single deal must keep a large-cash transaction record and report that details to FINTRAC, unless the money is obtained from a financial institution or public body. Real estate developers in Canada must also report suspicious transactions to FINTRAC.

Little Mountain Housing – Slogan Cover-Up?

According to 24 Hours Vancouver newspaper, B.C. Housing is covering up its dirty little secret with $2 rollers and cheap brown paint, according to advocates for Little Mountain Housing. Supporters who painted murals on plywood that cover the windows at the largely abandoned social housing project last week at Little Mountain Housing Vancouver were shocked to learn slogans such as “Home is wehre theheart is” had been painted over by a graffiti clean-up crew in the past few days. “BC Housing is afraid of the words,” said advocate Kia. “There was another paitning that said, ‘Love still lives here,’ and it was blotted out – very offensive.” BC Housing regional director Dale McMann said his agency allowed the event to take place at Little Mountain Housing without explicit consent but covered up some images felt to be inappropriate for a family neighbourhood. “There was a slogan around Helther Shelter – sort of vague reference to the old Charles Manson Helter Skelter days,” McMann said. “We wanted to ensure those types of paintings were removed.” Community Advocates for Vancouver Little Mountain social housing project have called on the province to restore 224 social housing units rather than pursue commercial development scheduled since early 2007. NDP MLA David Chudnovsky said the paint job is another example of the government sticking its head in sand rather than addressing the province’s most crucial issues. “What do we need in Vancouver?” he posed. “Another 2,000 million dollar condos? Or affordable housing for middle class and working people who need it?” From Dharm M.

Vancouver Leaky Condo Syndrome

A great article by HouseLeague for MetroNews Vancouver by Ryan D. As winter approaches, it seems home buyers are beginning to dredge up that fear of leaky condos that plagued hundreds of Vancouver condo buildings erected in the 90s. Leaky condo syndrome is a catastrophic failure of the building envelope leading to water ingress that potentially leads to rot and mould. This was caused by many factors including a shift in the Vancouver condo building codes allowing for the use of inadequate materials and poor design. Use a realtor as they have an intimate knowledge of the area you are searching in and will likely be able to steer you away from buildings with known leaky condo Vancouver problems. Second, when writing an offer on a Vancouver condo, request a Form B from the property management company. It mentions if there are any upcoming assessments being levied against the homeowners. Third, read through the last two years of strata minutes. Issues that have arisen in that time, including leakage, will be mentioned there. Fourth, check if the builder was built with “rainscreen” technology or if it has been repaired to have it. “Rainscreening” is a small gap between the exterior and interior walls of the structure that allows any water that penetrates from the outside to seep down and escape.

Is It The Right Time To Buy Vancouver Real Estate? Low Interest Rates and Falling Housing Prices Make It A Good Time to Consider Investing in a Home

Vancouver Real Estate Update April 2009 – New Stock of Vancouver Condo Units Dwindling

In a recent study and analysis of Vancouver real estate inventory, it came as a shock for many homebuyers and real estate investors/analysts that the housing stock is dwindling in the City of Vancouver as of March and April 2009. According to 24 Hours Vancouver newspaper, Dharma: “Prices for new Vancouver housing real estate stock have hit the floor, according to the man who launched a series of bulk real estate sales across the region. According to Cameron McNeill, president of MAC Marketing Solutions, he said that his latest condominium Vancouver promotion, which started on March 20th, 2009 and represents over $110 milion in Vancouver home sales at four real estate developments, could be the last of its kind as vacant properties in the Lower Mainland and Fraser Valley built before the economic downturn are filling with residents. “New [Vancouver real estate] developments cannot come to market at these values,” McNeill said. “They don’t make economic sense or every few of them do.” A further drop in Vancouver new home sales prices may not be in the cards according to MAC Marketing solutions as well. “I think that we’re going to see that we’ve found the floor and we’re going to be staying close to these prices –for six months to at most a year – and then we’re going to see a slow appreciation.” But Tsur Somerville, associate professor at UBC’s Sauder School of Business, said projecting an economic recovery in the Vancouver real estate market is no easy task. “People in the business of selling talk about the economy stabilizing and starting to come around and then there are others who aren’t so optimistic,” Somerville added. “There’s a consensus that prices [for Vancouver real estate housing] have further to fall. What there’s not as much as consensus on is when things start turning around.”

Vancouver Real Estate Market Downturn or Property Market Opportunity?

We are in a Greater Vancouver/Lower Mainland housing market that has definitely changed from the furious pace of the last few years. While the media slowly tires of sensationalized stories of a crash, industry experts watch as Vancouver real estate opportunities emerge. And I ask, is this a market downturn or a market opportunity? A special advertisement provided by Polygon real estate developers in Vancouver. Economic Slowdown: After six years of exceptional growth there is no doubt British Columbia now faces a more difficult challenge. With the financial crisis and global economic slowdown new challenges have emerged in the Greater Vancouver real estate market and will become the stories of 2009. Home Prices Within Reach: The bad news is not unfamiliar, home prices in Greater Vancouver have fallen. But is this really bad news? For those renters looking to get into a new home, home prices in the Lower Mainland are within reach for the first time in years. For those that currently own a Vancouver home, the news isn’t all that bad either. Sure, the price of your home may have correted, but so too has the dream home you aspire to own. Do the math; a 10% reduction on fthe cost of a more expensive home represents a greater savings to you than a 10% reduction in your own lower priced Vancouver home. In a booming real estate market the reverse is true. Today’s lower prices in the Greater Vancouver real estate market clearly presents an opportunity to purchase for many. Interest Rates Lowest in Years: With recent drops in lending rates from the Bank of Canada, a prospective homeowner now stands the chance of getting a home financed at some of the lowest mortgage rates in fifty years. For many, the difference between a mortgage payment on an average priced home six months ago and one made today can represent savings of hundreds of dollars a month or thousands a year, clearly an opportunity not to be missed in today’s Lower Mainland real estate market! Strong Political Leadership: Our country is now facing some challenging political times; however, thanks to Premier Gordon Campbell, and the efforts of our B.C. Liberal Government, British Columbia offers some of the most competitive personal and business tax rates in Canada, and is leading the country in job creation, economic strength, business confidence and fiscal responsibility. Consumer Confidence: Let’s be honest, with such great real estate Vancouver prices, low interest rates, plenty of choice and all the buying power a prospective homebuyer could ask for, the only thing keeping people from acting is fear. I suggest that if you are planning to stay in your home for five years or more, there has never been a better time to purchase a new Vancouver home. Think about it, smart homebuyers buy in a buyer’s market. Even this past fall, we saw many smart people taking advantage of today’s opportunities in the Lower Mainland real estate market as we closed over 300 sales int eh last three months of the year. Real estate markets change but two things remain constant: the desire to live in well designed homes, and Polygon’s commitment to building them well. After building more than 18,000 homes in Greater Vancouver real estate market, over the last 28 years, Polygon continues to be confident in the future of British Columbia. If you are thinking about upsizing, downsizing, or getting into your first home, I encourage you to take advantage of today’s Vancouver home buying opportunities. The advice I share with friends and family is to buy the best home you can afford in the best neighbourhood for your search area in the Lower Mainland. Visit a Polygon community in your area this weekend and we’ll help you find the new home that’s right for you. In the long run, you will realize the value to yourself and your family of owning a home int eh great Province of British Columbia. Neil, Present and Chief Executive Officer for Polygon. Polyhomes.com.

Polygon Builders Report Steady Sales in South Surrey Real Estate Market

According to a Vancouver Sun special advertorial by Polygon, the home buyer’s response to amenities and value make Polygon’s Kaleden and Cathedral Grove at Morgan Heights in the new South Surrey a success this year. “There’s a reason that the quiet treed corridor along South Surrey’s 158th Street has become a such a popular place. It could be the allure of the stands of mature evergreens set against a backdrop of the North Shore Mountains. It could be it’s proximity to the lively new shopping district of Morgan Crossing just a short walk away. But most likely, it’s the combination of these factors and the quality, design and value of Polygon’s latest new home communities Kaleden and Cathedral Grove in Morgan Heights, South Surrey real estate market. AS the saying goes, few factors have the ability to secure a home sale quite like the age-old adage ‘location, location, location.” And Kaleden and Cathedral Grove by Polygon in Morgan Heights community stands as a testament to this, offering Vancouver homeowners a convenient doorstep to one of the liveliest new neighbourhoods the Lower Mainland reale state has to offer at Morgan Heights. Walking distance to a brand new and expansive selection of urban village style boutique shopping and dining, a short drive to the sandy beaches and shorelines trails of White Rock real estate or the lush greens of Morgan Creek Golf Course, Polygon’s two new communities at the South Surrey Kaleden homes and Cathedral Grove houses sit among the best this area has to offer. But if fun in the sun in the sunniest place in the Lower Mainland real estate market proves not to be enough then Steve Nash’s 38,000 square foot fitness centre (coming soon to Morgan Heights South Surrey) or the arena, pools, and other amenities of the local South Surrey Athletic Park are sure to fill your day for even the most active of families. And with easy access to the highway a weekend trip to Seattle or the outlet malls across the border are conveniently close. For young families with children, or newlyweds with plans for kids and ht eprospect of school on the not too distnad horizon, the options are equally promising at the Morgan Heights community of South Surrey real estate market. The top ranked Southpointe Academy is at the end of the street for those interested in private school; or, with the city’s approval of a new public elementary school slated for the land across the street, a quick trip home ofr lunch could be in the cards for the kids of Morgan Heights Kaleden and South Surrey Cathedral Grove home communities in the very near future. “A strong selling point for our homebuyers is certainly our central location,” says Cathedral Grove Sales Manager Laura. “But for many it is what they find on their arrival that sets us apart from the rest,” she says pointing down a winding path through stands of mature evergreens that tower over a central amenity clubhouse here at the Morgan Heights South Surrey Cathedral Grove and Kaleden home communities. “Our favourite part is the trees,” says Cathedral Grove homeowners. “During our first visit we noteiced the clubhouse. It was beautiful, sow e walked over to have a look. The pool was fabulous, the barbecue was on, and the ambience was great!”

The Evergreen Club at Morgan Heights and More Info

The Evergreen Club South Surrey, a breathtaking 7,500 square foot country club inspired clubhouse, features a beautiful outdoor pool and spa, state of the art media room, fireside lounge, and more, to which residents at both Polygon South Surrey Morgan Heights communities receive exclusive access. In addition, with two guest suites that homeowners can reserve for visiting house guests, and a resident manager who ensures everything runs smoothly, owning a home at Cathedral Grove Polygon homes or Kaleden South Surrey truly is a resort inspired experience. With many new homeonwers having already moved in, the community is quickly coming to life. Residents of both Polygon communities in the South Surrey community were recently treated to one of their first official neighbourhood events: a Wine Tasting party hosted in the inviting fireside lounge of the Evergreen Club by local wine merchant Liberty. The evening marked the first of many more events to come at the Evergreen Club of Morgan Heights as both communities continue to grow and welcome the new neighbours who will make their home at Kaleden or Cathedral Grove by Polygon Homes. On the home front, it doesn’t take long to fiture out the appeal of owning a Polygon home. Whether it’s a contemporary two or three bedroom floor plan at Kaleden Morgan Heights or a spacious four bedroom at Cathedral Grove South Surrey real estate, the quality, design and value Polygon delivers in every home is evident. Distinguished for its remarkable affordability while including designer finshings, such as integrated cabinet paneled appliances, granite countertops, and warm wood style flooring, it is not surprising Kaleden Morgan Heights South Surrey homes has been reconized as the fastest selling townhome community in all of the South Surrey real estate market. For htose families looking for some additional space and finer details, Cathedral Grove at Morgan Heights offers home up to over 2100 square feet, gourmet kitchens well equipped with Bosch appliances and granite countertops, and the conveniences of two car garages. In today’s South Surrey real estate market, likely the most important and final consideration for prospective hombuyers is the price. “Kaleden Homes is our first home purchase a is by far the best value we could find,” homeowners at Kalden by Polygon Homes. At just $314,900 for a new home at Kaleden South Surrey and only $419,900 for a four bedroom home at Cathedral Grove in Morgan Heights neighbourhood, these two new communities offer some of the best value in the entire Lower Mainland property market. “We are delighted with the steady sales at both communities having sold 105 homes here in the last seven months. WE are now down to eight homes in our first phase at Cathedral Grove… and having quickly sold out of our first phase at Kaleden, we will be releasing more homes this weekend.” Offering a vibrant lifestyle in a convenient, yet exclusive, setting, Kaleden and Cathedral Grove homes in Morgan Heights South Surrey shine as two of the best in the hot new neighbourhood. The Polygon family of companies, British Columbia owned and operated since 1980, has built more than 18,000 homes throughout the Lower Mainland, and earned the trust of thousands of families. Polygon’s award winning Customer Service team provides after sales service, and all homes are protected by comprehensive 2/5/10 warranties by the Traveler’s Gaurantee Insurance Company. The Morgan Heights Kaleden and Cathedral Grove South Surrey sales centre and display homes, as well as the impressive Evergreen Club, are open daily from noon to 5pm except Friday, and are located at 27th Avenue and 158th Street in South Surrey. For more information about Kaleden, please call 604.541.4246 or Cathedral Grove, please call 604.541.7383 or visit www.polyhomes.com.

Doom and Gloom or Smooth Sailing? What is the 2009 Vancouver Real Estate Forecast and Housing Outlook in the Lower Mainland now and beyond 2010?

2009 Vancouver Housing Forecast and Lower Mainland Property Outlook for 2010 Olympic Year

There is much talk about the Vancouver real estate forecast for 2009 and further ahead into the Winter Olymipic 2010 Vancouver property market forecast, but really, there is no one in this world who can predict what will happen to the Lower Mainland housing market. There are predictions and outlooks, forecasts and opinions, but these are not based on facts or reality, just yet. This is an article that talks about the future of the Vancouver real estate market in terms of forecasting the 2009 Vancouver housing market as well as the property outlook further into 2010 before and beyond the Winter Olympics. Based on fundamental issues such as the Vancouver economy, in and out migration, housing affordability, GDP growth and other factors such as aging population and transient work force, there are many things to be happy about in terms of the Vancouver housing forecast for 2009 and beyond, but there are also many traps and assumptions being made that should not be by the typical Lower Mainland home buyer and investor. A wide range of chief economists, bank leaders and Greater Vancouver real estate experts have taken claim to what they think is the true outlook for the Vancouver property outlook 2009 as well as the Vancouve real estate forecast for 2010. Published, blogged and submitted to newspapers and magazines, these experts’ opinions vary widely in their perception of what is going on with the current housing market and the 2009 Vancouver housing real estate forecast that is already upon us. Let’s take a look.

The Vancouver Real Estate Forecast for 2009

The Greater Vancouver property market has faced an unprecended growth period during the past decade, lead by huge property gains in West Vancouver, the west side of Vancouver, downtown as well as many suburbs like Richmond, Burnaby, New West, Surrey and Abbotsford posting some of the largest gains in Canada real estate market. However, during the past 10 years, many homebuyers and investors have failed to notice why the property values and housing market was keeping afloat and exponentially increasing in value seamlingly every month. With a growth economy based on commodities, construction (of course), employment was at its peak and unemployment was at all time lows in Greater Vancouver. However, everything changed as soon as the global economic crisis took hold of world economies, trade and credit financing. Vancouver real estate did not escape the US housing market liquidation. Perhaps, we have fared better than our countertops down south through 2008 and into 2009, but most Vancouver municipalities have faced large drops in real estate housing values in 2009 already. The effect of long term exponential growth in Greater Vancouver property values has taken its negative effect on the property forecast 2009 for Vancouver. Affordability is now the major issue facing first time homebuyers (who service the engine that creates a balance Vancouver real estate market) and with property affordability in Vancouver at it’s all time lowest (one of the most expensive cities to live in the world), this segment of the population has been kep out for about a year now. With the economy in ruins and jobs disappearing, Vancouver is in a tight position when it comes to people wanting to buy a home right now. In addition, with credit tightening throughout all the major banks, it has become very difficult for first time home buyers to get a good mortgage product for any home that they choose. Therefore, the 2009 forecast for Vancouver real estate and the Vancouver housing outlook 2009 is for a more stable market than the last quarter of 2008, but don’t expect any huge returns or gain in value. Stabilization of the Greater Vancouver property market may come later in the fourth quarter of 2009, and forecasts on the Vancouver housing market 2009 suggest that gains in value won’t even begin until mid-2010. As far as the 2009 Vancouver real estate outlook is concerned, you can probably expect a slight drop in future sales prices and a huge drop in sales volume through the first six months of 2009. The forecast for Vancouver home market 2009 later in the year is for a steadying of the sales volume and maybe even a slight gain property values, but nothing is set in stone. As long credit is tight and the global economy is in trouble, the Vancouver real estate forecast 2009 seems grim for those looking to sell. For those homebuyers looking to purchase a home or for first time home buyers, 2009 may be the best opportunity for you to get into the market. With a 2009 Vancouver housing forecast for a slight drop in property values coupled with low interest rates for both variable and fixed mortgage financing, the outlook for Vancouver real estate market for buyers is bright. There have been several surveys that have shown that homebuyers in Vancouver are changing their perspective on buying a new home this year compared to the last six months of last year. If this is the case, the 2009 Vancouver housing real estate outlook should be good heading into 2010.

Winter Olympics and Its Affect on the 2010 Vancouver Property Outlook

With recent surveys and analysis, many experts believe that the US housing market will come out of its downward spiral and foreclosure problems by the end of 2009. These same articles and experts expect the Greater Vancouver housing outlook and sales to balance out after that, so some time in very late 2009 or early 2010. With the winter Olympics showcasing Vancouver, there is a lot to be said about creating a renewed interest in the city, not seen since Expo ’86. The 2010 Vancouver housing forecast and Vancouver real estate outlook is calling for smooth sailing once 2010 Olympics hit and there are many reasons why. The Winter Olympics will employ many people before, during and after the Games, creating a legacy like no other large event can provide. The city will be showcased to most of the world’s population, profiling Vancouver as one of the most beautiful cities in the world. In addition, mortgage rates are expected to stay very low through 2010, so that Vancouver home buyers looking to purchase in a year’s time, will still be able to get great financing products. The Lower Mainland property market has seen it’s share of negative news including the cancelled Coquitlam Riverbend project, and the Homer & Helmcken plus Garden City Richmond condo receivership problems. Now comes the Millennium 2010 Olympic Village fiasco with over-runs, debt mounting and problems with completing the affordable housing component. With all of this, it doesn’t seem like the 2010 Vancouver real estate outlook should be very good, but it is. And then, you can also add the delay of the West Vancouver Evelyn project, the cancellation of the Hills Vancouver condos, the delay of the Ritz-Carleton condo hotel residences and the cancellation of Jameson House and the forecast for 2010 Vancouver housing market should look bleak. However, it is safe to say that condo and housing inventory has been kept in check through all of these delays and cancellations. With an ever increasing population moving into the Lower Mainland, the outlook for 2010 Vancouver housing market is for a shortgage of units by years’ end and into 2011, even with the estimated completion of these delayed projects. With many developers holding back and not building for another year, this will cause some problems in terms of new inventory that comes onto the market for homebuyers. With this limited supply of homes, the 2010 Vancouver real estate forecast is calling for an increase in value, sales figures and sales volumes through the year and into 2011. By 2012, it is expected that Greater Vancouver will again face a shortgage of homes and affordable housing such as condos and the construction process will start yet again. Therefore, the Winter Olympics will provide a vehicle for the Vancouver property forecast in 2010 to be positive … and with sales volumes and prices increasing, the 2010 Vancouver housing outlook is very positive to say the least.

So What Do the 2010 and 2009 Vancouver Real Estate Outlook Mean to You?

If you currently own your own home or you have invested in condos/townhomes that you are now renting or have yet to close, HOLD ON to your property. The biggest mistake homebuyers and investors make is to listen to the top headline news about the world falling down. This is not a time to panic. Rather, you should think through and calculate your monthly cashflow to see if you can afford your place still as well as whether or not to keep your rental properties. If you are tight on cash, sure, sell. However, if you aren’t, holding onto your Vancouver property and real estate through 2009 and 2010 is a great way to ensure that you will not incur losses or have to pay capital gains tax if you have made money. The 2009 Vancouver housing forecast is good and the Vancouver real estate outlook for 2010 is even better. By keeping your rental homes for another 12 months, you may end up facing an upswing in property values again during the Olympics when Vancouver is on the world stage. If you are a first time home buyer, 2009 may be the BEST year to purchase your new home. With a drop in Vancouver property 2009 in addition to great mortgage rates and financing packages, you can skip ahead of the rest of us who purchase during the past five years and locked in at higher rates. If you can afford it comfortably, 2009 is the best year to purchase Vancouver property. The forecast for 2010 Vancouver housing market is calling for an increase in value as well as both fixed and variable mortgage rates, so why wait? As an investor, the 2009 Vancouver housing outlook is bright for you as well. Again, as a real estate investor, cashflow is king. If you can operate your business with positive cashflow (meaning your rental income is higher than all expenses), you should put in your due diligence and start purchasing property again. These are great times for you. 2009 Vancouver real estate outlook is calling for more liquidation events such as the MACBULK Onni condo sales in addition to many other real estate developers providing incentives to purchase their available inventory. The forecast for the 2009 Vancouver real estate outlook is calling for more developers taking on the GST, anywhere from 10 to 35% off the original pre-construction pricing, no strata fees or property fees paid for for the first year or even getting a new car with the purchase of a new home. These incentives will not last through the 2009 Vancouver property market and by 2010, the forecast for Vancouver housing outlook will again re-start bidding wars for good property. These gloom and doom times are actually not so bad when you look at all the factors involved with how you can take advantage of these special times.

Other News Items:

Major Banks in Canada Slash their Prime Rates and See Recovery Sooner Rather Than Later

According to the Real Estate Weekly for Vancouver, the Bank of Canada slashed their prime lending key interest rate to its lowest level in the history of the country this month and all of the major banks, surprisingly, followed suite with a drop in their bank prime rates too. The central bank of Canada cut the trend setting over night rate by 0.5% to the lowest 1% level in history, lower than the 1958 rate of 1.12%. In mortgage moves, the Royal Bank of Canada slashed its one two and three year rates by 1.1%. It’s five year posted rate drops to 5.79% and there is a five year closed rate special at only 4.49%. Many economists see the Central Bank of Canada lowering its rate again by as much as 0.5% as early as the next BoC announcement on March 3, 2009. Overall the BoC predicts that inflation will average at a very lot 1.1 per cent this year and won’t return to the target inflation rate of 2% until 2011. There is speculation that the recovery in Canada will come sooner rather than later with a full recovery come mid-2011. That is yet to be seen. Alarmist view dismissed recentlay and published in the Real Estate Weekly. A major Canadian bank believes fears of a future downturn in housing markets is more myth than reality. According to another article, homes throughout Vancouver and in all of Canada have become more affordable to typical homebuyers and this coupled with low interest rates and loans create opportunity for people looking for new homes. There is a better chance of buying an affordable new Vancouver home now than at any tie in the past decade says REBGV. With home sales and consumer confidence already bouncing back in certain cities and neighbourhoods, people and homebuyers have seen a long-term strength in investing in property and owning a home. With low interest rates and consumer confidence already hitting all-time lows and recovering, there are numerous opportunities for homebuyers to get back into the market. Overall Vancouver residential benchmark prices, as calculated by the Vancouver Board’s Housing Price Indix, decline 10.9% to $489,007 between January 2008 and 2009. The benchmark price for a Vancouver single family detached home declined 11.2% to $659,638 in Janaury 2009 compared to $742,490 January 2008. The same trends are seen in the Vancouver condominium/apartment market in addition to to a lesser extent, attached units like townhomes and duplexes. REBGV also reports that sales of detached Vancouver homes and apartment properties declined as much as 58.1% when comparing January 2008 to 2009. New listings in the Greater Vancouver real estate market have also declined. The Bank of Canada has slashed its key interest rate to the lowest level in history to 1 per cent. The decrease was in line with the expectations of most Canadian economists, who have been calling for bold action on the parts of the Bank of Canada and the federal government. Shortly after the BoC rates fell, the big banks led by BMO and TD dropped their lending prime rates by the same amount.

The 2009 Vancouver Real Estate Forecast - Growing Trends in Vancouver Property Market Outlook, Credit Crunch - First Time Homebuyers Seminar

The 7th Annual Spring Parade of New Homes in Greater Vancouver Real Estate Market

It’s a great time to buy a new home! Can you believe that it’s the 7th Annual Spring Parade of New Vancouver Homes already? With the doom and gloom surrounding the Vancouver real estate market just a year ago in 2008, 2009 brings a air of optimism and some bright future outlooks for certain developments and communities in the Lower Mainland. With continued low mortgage rates, declining asking/listing prices and new home inventory coming onto the market, the 7th Annual Spring Parade of New Vancouver Homes comes at an excellent time for home buyers and investors. Brought to you by the Greater Vancouver Home Builders’ Association, also knwn as GVHBA, the 7th Annual Spring Parade of New Homes in Greater Vancouver will be happening from April 18th through 26th at various locations across the Lower Mainland. For more information, you can visit www.paradeofhomes.ca today. This year, the 7th Annual Spring Parade of New Homes in VAncovuer presents thirteen builders with 57 show homes in six cities and one presentation centre. From $209,900 to over $869,900, the wide range of homes presented at the 7th Annual Spring Parade of New Vancouver homes will have something for everyone. Here is the list of new developments featured this year.

2009 7th Annual Spring Parde of New Coquitlam Homes
1. Burke Mountain Heights single family Coquitlam homes at 3398 Don Moore Drive
2. Belmont at the Foothills single family detached Coquitlam homes at 1456 Avondale Street
3. Whitetail Lane Coquitlam townhomes for sale at 1357 Purcell Drive
4. Birchwood Estates single family detached Coquitlam houses at 3372 Scotchpine Avenue

Delta Parade of Homes
1. Radiance at Sunstone Delta at 8385 Delsom Way

7th Annual Spring Parade 2009 of Langley Homes
1. High Point Equestrian Estates at 20048 Second Avenue with single family homes
2. Milner Heights including single family Langley homes, fee simple rowhomes and four plex manor homes for sale at 20843 – 69B Avenue

Maple Ridge Parade of Homes
1. The Crest at Silver Ridge Mapel Ridge single family homes at 22845 – 137 Street
2. The Meadows at Verigins Ridge townhomes in Maple Ridge at 11282 Cottonwood Drive

The 2009 Spring Parade of New North Vancouver Homes
1. Branches low rise North Vancouver condominiums at 1111 East 27th Street

Surrey 2009 Spring Parade of Homes
1. The Brownstones Townhomes at 25 – 15833 – 26th Avenue
2. Salus townhomes and low-rise Surrey condominiums at 1-6671-121st Street
3. Springfield Village Surrey townhomes at 8676 – 158 Street
4. Lotus Townhomes at 16355 – 82nd Avenue
5. Panorama Hills single family Surrey detached homes at 15038 – 59th Avenue
6. Vista’s West Surrey single family houses for sale at 6093 – 164th Street
7. The Estates at Vista’s West single family Surrey homes for sale at 16327 – 60th Avenue
8. Glenmore at Morgan Heights South Surrey townhomes at 2450 – 161A Street
9. Kaleden townhomes at 2729 – 158th Street
10. NUVO live work Surrey townhomes at 10- 15454 – 32nd Avenue
11. Morgan Heights South Surrey single family homes for sale at 16363 – 26th Avenue
12. Clayton Heights single family Surrey homes at 7001 – 194B Street
13. Hazelwood Estates Surrey homes at 7880 – 164th Street

First Time Vancouver Homebuyers Seminar 2009 - 15th Annual First Time Homebuyers Seminar

Get out the red pen and calendar. Fire up your electronic day-timer. If you’re a first time Vancouver homebuyer, you’ll want to be sure to reserve the evening of Tuesady, March 24th, because that’s the date for the 15th Annual First Time Homebuyers Seminar in Vancouver. Brought to you by the Greater Vancouver Home Builders’ Association (GVHBA), this springtime tradition is a Must Attend Event for anyone considering home ownership. “Our experts will help first-time hom buyers de-mystify the home buying process,” says Peter Simpson, GVHBA’s CEO for the 15th Annual First Time Homebuyers Seminar. This year’s panel of experts for the 15th Annual First Time Homebuyers Seminar Vancouver will discuss which location and type of home best suits your needs to legal considerations, how the new federal tax credits impacts first time Vancouver homebuyers, and the benefits of builder licensiving and mandatory home warranties. The 15th Annual First Time Homebuyers Seminar takes place in the newly renovated Sheraton Vancouver Guildford Hotel (15269 – 104th Avenue) in Surrey on Tuesday, March 24th, 2009. Doors open at 6:00 pm giving you time to browse the displays and chat with industry experts. The seminar runs from 7:00 to 9:00 pm. As always, this exceptional resource is free thanks to generous sponsorship, but pre-registration is required for the Vancouver 15th Annual First Time Homebuyers Seminar. Call GVHBA at 604.588.5036 or get more information online at gvhba.org today.

The 15th Annual FREE Seminar for First Time Home Buyers – Tuesday, March 24th, 2009

Brought to you by the Greater Vancouver Home Builders’ Association, the 15th Annual Free Seminar for Vancouver First Time Home Buyers is happening on March 24th, 2009 from 7-9pm with doors opening right at 6pm. Located at 15269 – 104 Avenue in Surrey, or at the ballroom of the Sheraton Vancouver Guildford Hotel, this is an incredible event for tips and advice for Vancouver first time homebuyers to attend a free seminar with great professionals to speak with. You are ready to purchase your first Vancouver home, but you need a little help to understand what is involved, especially during these days of attractive sales prices. What location is best? What type of home is best suited to your current needs and financial resources? What are the Vancouver mortgage options right now? What are the legal considerations for buying your first Vancouver first time home buyer? How do the new federal tax credits benefit first time Vancouver home buyers? What is the value of builder licensing and mandatory home warranties? To help you make informed decision, the Greater Vancouver Home Builders’ Association, in partnership with its sponsors, is hosting the 15th annual FREE seminar for Vancouver first time home buyers. Plus, you can ask the expert question period, affordable home displays, financial options exhibitors and a wealth of housing information here at the 15th Annual FREE Seminar for First Time Vancouver Home Buyers. More than 40 valuable door prizes and free parking. Pre-registration for the 15th Annual FREE Seminar for First time Vancouver home buyers is required. Call 604.588.5036 from 8:30am to 5pm Monday to Friday. Registrations will also be taken by answering machine at the same number on weekends. The 15th Annual First Time Vancouver Home Buyers Seminar is a free event, however, the Greater Vancouver Home Builders’ Association is asking all attendees to bring a non-perishable food donation to support the Surrey Food Bank. Shopping for a new Vancouver home after the seminar? You are invited to tour the latest new home projects during the Greater Vancouver Home Builders’ Assocaition’s 7th Annual Spring Parade of New Homes, April 18 – 26, 2009. Information about the 7th Annual Spring Parade of New Homes will be available at the seminar or visit www.paradeofhomes.ca today.

More About the Vancouver First Time Homebuyers Seminar March 2009
With real estate, there is much to be aware of during these days of economic uncertainty, but the current Vancouver home buyers’ market presents outstanding opportunities, particularly for first-time homebuyers. Today’s young homebuyers in Vancouver real estate market need help dy-mystifying the home buying process. Is buyins a home now a produent decision? What location is best? What type of Greater Vancouver home is best matched to current needs and financial resources? What are the mortgage options? What are the legal considerations of your Vancouver real estate purchase? How do the new federal tax credits affect first-time Vancouver home buyers? What is involved with purchasing a pre-construction Vancouver condo? What are the benefits of builder licensing and mandatory home warranties? These and other key questions will be answered by a panel of Vancouver housing experts at the 15th Annual Seminar for First Time Vancouver Home Buyers, presented by the Greater Vancouver Home Builders’ Association (GVHBA) on Tuesday, March 24, from 7 to 9 p.m. in the newly renovated Shearton Vancouver Guildford Hotel at 15269 104 Avenue in Surrey, BC. Admission to the popular 15th Annual Seminar for Vancouver First Time Homebuyers is free. Speakers include real estate experts from Canada Mortgage and Housing Corporation, Homeowner Protection Office, Genworth Financial Canada, residential mortgages from TD Bank, Real Estate Board of Greater Vancouver, National Home Warranty, GVHBA and otheres. More than 800 people attended last year’s Annual Vancouver Seminar for First Time Home Buyers and because real estate seems to dominate the news these days, turnout should be even greater this year. Pre-registration for th 15th Annual Seminar for Vancouver First Time Home Buyers is required by calling 604.588.5036 Monday to Friday.

Greater Vancouver and BC Home Prices Expected to Fall 13% in 2009 – Vancouver Real Estate Forecast 2009

Realty Section of MetroNews Vancouver newspaper. The average price of a home in British Columbia is expected to decline 13 per cent this year, according to the B.C. Real Estate Association 2009 forecast released yesterday. “the global financial crisis and worldwide recession will continue to take their toll on the B.C. economy this year,” said Cameron Muir, BCREA chief economist. The average BC home price is forecast to drop to $396,600 as nine per cent fewer residences are expected to sell in 2009 according to the latest 2009 Vancouver real estate forecast. According to Muir regarding the Vancouver real estate forecast 2009, prices and sales are expected to stabilize in 2010. At the same time, 24Hours Vancouver published an article on Look Out for a Home Buyers’ Market. Homebuyers looking for a good deal may hit the jackpot in 2009. Amid the global recession, job security fears and a cooling real estate market, the British Columbia Real Estate Association is predicting average home prices to drop 13 per cent this year according to their 2009 Vancouver real estate forecast. That’s bad news for sellers, but good news for home buyers across the province. “It should be a good year for potential home buyers,” said BCREA chief economist Cameron Muir. “Affordability is as good as it’s been in two years.” Muir said a high supply of available homes and low demand for them will drive down prices and eliminate competion for home buyers. And as real estate developers get desperate to sell off inventory, Muir expects several more Onni like liquidations in 2009. The property developer offerd 25 to 40 per cent off condos earlier this month as it tried to liquidate 375 condo suites across Greater Vancouver real estate market forecast 2009. It could make for a wild year before the market is expected to stabilize again in 2010 according to Matt of 24 Hours.

First Time Homebuyers in Canada Need More Info According to New Survey

As published in 24Hours Vancouver, A recently released survey of first time home buyers in Canada real estate market discovered some surprising results: Three out of four first time homebuyers in Canada property market would benefit from additional education about the buying process. The new report was conducted by Genworth Financial Canada from October 17th to November 2nd, 2008. Respondents qualified if they planned to purchase a new or resale Canada home or other property in the next 24 months and if the property they planned to purchase was to be their first home. Questions included which payment frequency pays down a mortgage fastest (bi-weekly accelerated), how much making just one extra mortgage payment each year will shorten the life of a 30 year amortization (approximately five years), and how much a first time homebuyer in Canada real estate market may withdraw from their RRSP to put toward a down payment (up to $20,000). The majority of Canadians surveyed (86 per cent) of first time homebuyers were aware the reducing the amortization period saves money on interest. However, only 38 epr cent knew monthly payments should not exceed 40 per cent of their gross income, and more than two thirds at 68 per cent incorrectly thought the term of the mortgage is the length of time it takes to pay the amount lent. Opinions were virtually split down the middle when came to variable interest with 54 per cent of respondents indicating they believe historically consumers pay less interest with a variable rate mortgage over the life of the loan and 46 per cent believing this strategy to be false.

Participants in this first time Canada homebuyer survey were also asked to identify their level of understanding of 10 common mortgage terms: Credit rating, mortgage term, variable/fixed interest rates, bi-weekly accelerated payments, mortgage amortization, mortgage default insurance, refinance loan payments, closed/open mortgages, conventional versus high ratio down payments, and debt service ratio. Only 25 per cent correctly answered more than seven out of the 10 questions and less than one per cent correctly answered all 10. Most misunderstood were conventional versus high-ratio down payments and debt service ratio, with only one in 10 respnodents claiming they understood what the terms means. A useful exercise that qualifies the need for more financial education in the school system today. Susan B.

Vancouver Real Estate Home Sales Drop Significantly – 2009 Vancouver property forecast not looking good.

According to Metro Vancouver newspaper: Homes sales dropped dramatically in Greater Vancouver last month, falling 69 per cent compared to last year, the Real Estate Board of Greater Vancouver (REBGV) announced yesterday. Dave Watt, REBGV president, said 874 homes were sold across Gerater Vancouver in November 2008, compared to 2,883 sales during the same period last year. “Residential benchmark prices across all properties declined 12 per cent between May and November of this year,” Watt said in a podcast yesterday. He added that across the Lower Mainland real estate market, it’s taking longer for homes to sell compared to previous months. “In Greater Vancouver, the days on market average for November was 64 days,” Watt said. That’s 20 more days than November 2007.

Vancouver City Skyline Nearly as Bleak as Real Estate Markets

A great article by Derek for InTransit section of MetroVancouver News. The chaos on Wall Street continues to pummel the economy in the new year and is going to be felt locally. In metro Vancouver, a signature of the economic boom years – so called starchitecture – is about to take a major hit. Construction financing is harder to get and uncertainty and confusion are prevalent in the real estate business in greater Vancouver. Which means some inspired Vancouver condo buildings designs are on the verge of going down before ever getting the chance to go up. What a shame. Historically, many folks in the Lower Mainland real estate market have grumbled about the vanilla look of condominium towers. The harshest critics maintain that Vancouver’s skyline is less breathtaking than it is boring. Internationally renowned architect Arthur Erickson once referred to it as “blah.” That reputation changed, to some extent, with several sleek condominium projects slated for the region – including one created by Erickson himself. Dubbed “Vancouver’s Turn,” the Residences at Ritz-Carlton condo tower was designed by the locally based architect. But the downtown Vancouver condo project is not suspended pending “design changes.” The economic meltdown can’t take all the blame. Last year, Vancouver-based Henriquez Partners Architects put forth plans for a sleek 120 metre tower for the North Vancouver real estate market waterfront. But instead of embracing it, a group of area NIMBYs made enough noise to quash the real estate project. When it comes to inspired architecture in metro Vancouver real estate, it seems, if nervous accountants can’t kill a project, neighbourhood activists most certainly will.

Credit Tight and Sentiment Low

This according to Reuters – MetroNews Vancouver report. Lending conditions in Canada worsened considerably in the fourth quarter and overall business sentiment is at its lowest level in at least a decade, two Bank of Canada surveys showed yesterday. The central bank surveyed senior loan officers at 11 major banks and senior management at about 100 businesses during the quarter in two separate studies. “Business sentiment has deteriorated markedly since the autumn survey as the effects of the international financial crisis and the weak global economy intensified and spread to domestic demand,” the banks said. The pessimism had some bankers predicting the Bank of Canada will opt for a half point rate cut in its key lending rate rather than a less aggressive move on January 20th, 2009. Charmaine Buskas, senior economics strategist at TD securities, predicting the bank could trim 50 basis points. The loan officers reported two thirds of companies felt tighter credit conditions, compared with 44 per cent in the third quarter, both in terms of price and in terms and standards. They attributed it to the worsening economic outlook. Business owners were pessimistic as well: Three quarters of those surveyed think inflation will stay below the central bank’s two per cent target in the next two years.

Correction in Toronto Condo Market is Coming, says Chief Economist

According to MetroNews Vancouver, a prominent Toronto housing economist, Will Dunning is warning of a substantial correction in Toronto real estate’s overheated condominium market. The impact will be felt particularly in the condominium market of Toronto real estate, says Dunning. By the end of September, the economist estimates there were a looming 33,919 condos under construction in the Toronto census metropolitan area. “This very large pending inventory is setting the stage for a substantial correctin,” he said in a sobering report looking at the rental and condo market in Toronto rela estate market. Pre-sale Toronto condominium starts are normally in the 10,000 to 12,000 range annually, but a bottleneck in construction from record sales in prior years has a significant number of units still to be completed, according to the analyst. Finicky condo investors are already beginning to sell in central Toronto real estate, up by 75 per cent in November compared to a year earlier, he says.

Canadians 11% of U.S. Foreign Home Buyers

According to REW article this fall, Figures from the U.S. National Association of Realtors indicate that 11 per cent of all foreign buyers of homes in the United States last year were Canadian. In Florida, the U.S. state with the highest foreign home ownership, Canadians made up nine per cent of home buyers in 2007, up from 7.1 per cent in 2005. Tannis Dawson, a senior tax and financial expert with Investors Group, noted that “the Canadian dollar has been on par or nearly at par with the U.S. dollar for some time now and that has many thinking that it has leveled off and probably isn’t going any higher,” she said. Many Canadians also have concluded it is more expensive to try to buy a second home in Canada than in the U.S. real estate market when looking for the same square footage, she says. In the U.S., she says, in 2002, a house cost about CAN $519,000. In 2008, a U.S. house now goes for about C$325,500. Dawson has some tips for people wishing to buy a property in the United States real estate market. “It is best to have the funds to pay for a U.S. property up front especially when the currencies are at or near par” so as to take advantage of the strong Canadian dollar, she says. If people have enough equity on their house in Canada, “they can take out a mortgage on that… or do a line of credit or some personal debt,” she says.

About 53 per cent of Canadian home buyers take out mortgages and 47 per cent pay cash, according to figures compiled by the Investors Group. Dawson says it is more expensive to get a U.S. mortgage. “In the U.S., if you’re a non-resident they require you to put down 30 to 40 per cent of the property value. Plus have to put six months of your mortgage payments, insurance payments and your property taxes in an escrow account… looked after by an escrow agent,” she says. If you take out a Canadian mortgage on a U.S. home or property, you can go to the bank first and see how much you can raise, and then go shopping in the U.s. As well, you don’t have to put down as much. A seminar in investing in U.S. homes and real estate is held this Saturday, September 6 at the Marriott Pinnacle Hotel in downtown Vancouver, from 9am to 3pm. The event is presented by real estate consultant Ozzie Jurock and will feature experts discussing where to buy, what markets to avoid and tips on buying U.S. foreclosures. For more information, call Marc Jurock at 604.683.1111.