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.

North Shore Real Estate Trends and Housing Value Predictions - Metro Vancouver Real Estate Prices Should Moderate through to 2009

House Sales Slow Across North Shore Real Estate

High supply makes for home buyers’ market according to Deneka of the North Shore News. After years of favourable conditions for home sellers, the North Shore real estate market appears to be giving buyers the upper hand, according to a new report issued by the Real Estate Board of Greater Vancouver. Multiple Listing Service figures released by the board last week show that sales for both North Vancouver and West Vancouver real estate housing in June were down from the same time last year, while listings were up. The percentage of sales-to-listings for detached homes in North Vancouver last month was 28 per cent, while in June 2007 that figure stood at 93 per cent. In West Vancouver housing market, the percentage was 29 per cent last month and 64 per cent for the same time last year. For several months now there have been signs of moderation in the British Columbia home market as demand has eased off from the highs of last year, explained Cameron Muir, chief economist with the B.C. Real Estate Association. The North and West Vancouver housing real estate market has been rebalancing itself from the high demand state, and now there is actually higher supply than demand, meaning the property market is now favourable towards homebuyers.

“More balance between demand and supply means less upward pressure on home prices. It also reduces the chance of multiple bids on the same house in North or West Vancouver property, giving homebuyers more time to investigate properties thoroughly before purchasing,” said Muir in a recent press release. “This is probably a long-anticipated, realignment of the market,” he added in an interview. The B.C. Real Estate Association forecasts that residential sales for the Greater Vancouver area will fall by eight per cent his year, from 38,978 unit sales last year to 25,900 for 2008. They anticipate that in 2009 sales will again drop by three per cent for the area to 34,800 sales. Yet despite the fact that salese are dropping, home prices are not, explained David Watt, president of the Greater Vancouver Real Estate Board. According to the Board’s recent report, overall prices in the Greater Vancouver area were up 7.3 per cent in June compared to the same time last year, bringing the average residential property selling price to $564,982 last month.

In North Vancouver real estate housing market, since June 2007, the benchmark price of a detached home increased by 4.7 pe cent to $893,639, the average attached home price increased by 8.1 per cent to $608,225 and the average condo price rose by 4.4 per cent to $386,212. In West Vancouver housing real estate market, over the past year, detached home prices have risen by 0.9 per cent to an average of $1,428,139 while the average attached home price increased by 4.9 per cent to $719,783 and the average condo selling price was up by 6.9 per cent to $711,268. BCREA expects the rpcie increase will continue, but at a slower pace than the double digit increases seen over the past several years. According to their spring 2008 housing forecast, the association predicts that overall MLS selling prices for the Greater Vancouver area will rise by nine per cent this year to an average of $621,000 and will increase by an additional five per cent next year to $651,000. Lower year-over-year increases are a result of the rebalancing of the real estate market, said Muir. With more homes on the market in North and West Vancouver housing market, sellers need to be more educated and need to price their homes at reasonable prices so that their houses will sell. Homes that have been on the market for some time and that have been listed in anticipation of continued rising prices may have to re-evaluate their pricing, he said. “Although housing prices, on a year-over-year comparison, continue to show single-digit percentage increases, we are beginning to see more price reductions in properties listed on the market today,” Watt said in the press release. However, lower listing prices do not mean that home prices are decreasing, he explained in the interview. “It’s not even that prices have gone down, it’s just that they aren’t marked up,” he said.

Here are some updated North Vancouver MIRA resales condos in Lower Lonsdale re-sale real estate market at Mira on the Park townhomes.

With the North Vancouver housing market and West Vancouver real estate taking a downturn south of the border, many Canadians have grown wary that Canada will suffer the same fate as the United States, but comparing the two industries is a far stretch, said Gregory Klump, chief economist with the Canadian Real Estate Association. The U.S. housing market experienced extremely rapid price increases and poor lending practises which has now resulted in price corrections, he said. In Canada, on the other hand, price increases of the magnitude seen down south did not happen and Canadian lending always remained conservative, so a real estate market crash in Canada is not likely, he said. “We don’t see a crash on the horizon, we see it returning to normal levels,” he said. Some areas in Canada, however, have seen falling sales prices, according to a summer 2008 report issued by BMO Capital Markets. In Calgary, prices are down 2.4 per cent since last year and in Edmonton, prices have dropped by 4.8 per cent. Prices are also expected to drop in Saskatchewan, said Michael Gregory, senior economist with BMO Capital Markets. British Columbia, on the other hand, did not see the major price mark-ups seen in Alberta and Saskatchewan, and so B.C. remains in good shape, he said. “the rate of price increases will slow, but it (B.C.) still has a pretty strong economy,” he said, adding that he predicts, “a soft landing, rather than a collapse.” A report issued by Landcor Data Corporation at the end of last month shows that some areas in British Columbia are faring better than others.

In 2001, sales values in the province totaled $19 billion; last year they totaled $62 billion and at the end of this year, the rate is expected to be over $61 billion, explained Rudy Nielsen, president of Landcor Data Corporation. “Things are cooling but things aren’t bad,” he said. “Overall, I look at B.C. as very positive,” he added, explaining that the province has great natural resources, good tourism and a high quality of life. Even in places where prices may decrease, he says homeowners just need to wait it out because prices will again increase. He said he expects the cooling period to only last two or three quarters before turning around next year sometime. As for the North Shore real estate market specifically, Watt said he believes it is secure and, if anything, real estate in North and West Vancouver will become more desirable as gas prices rise and people look at living in areas that are closer to the city core.

House Prices Start To Sag – North Vancouver Realtors Predict “Soft Landing”

An article written by Jeff for Black Press of the North Shore Outlook Newspaper. Real estate prices have begun to slip in some parts of the Lower Mainland. The cooling trend comes as realtors report high numbers of prospective sellers. “Real estate is cyclical and the numbers show that we’ve entered a buyer’s cycle,” said Kelvin Neufeld, president of the Fraser Valley Real Estate Board. Prices are still up by at least single digits year-over-year, but the stats indicate most cities saw prices peak sometime int eh second half of 2007 or early in 2008 and some areas have since been trending lower. In the Fraser Valley, the typical single family house fell by 0.3 per cent in price in the past 3 months, while apartments were up 0.4 per cent and townhouses rose 1.6 per cent. The Greater Vancouver Real Estate Board reported its benchmark house price fell about $6,000 in June to $765,000, but that’s still up seven per cent from a year ago. Condo and townhouse prices are also down marginally in the past month. Detached houses in White Rock, Port Coquitlam and Burnaby fell more than $20,000 in price since April, the stats show. The biggest drop so far has been in West Vancouver, where detached houses fell more than 10 per cent in price in the last two months, from just under $1.6 million to $1.43 million. West Van house prices there are now up only 0.9 per cent year-over-year. “We’re experiencing a soft landing coming off the strongest and longest real estate cycle in our history,” Neufeld said. Sales are down sharply from a year ago across the region. New listings, meanwhile, are up and the number of unsold homes is rising. Realtors say sellers are in some cases having to moderate their expectations of how much they will get for their properties. We are beginning to see more price reductions in properties listed on the market today,” said Greater Vancouver Real Estate Board president David Watt.

Metro Vancouver Housing Market Moderates in 2008 and 2009, says the current release by Canada Mortgage & Housing Corporation.

Strong economic and demographic fundamentals, steady job growth and population growth, along with continuing low mortgage rates – will support demand for new and resale Vancouver housing. However, softening consumer sentiment and high mortgage carrying costs will temper the effects of these positive factors, dampening home buyer demand in Metro Vancouver.

New Vancouver Home Construction and MLS Sales Will Dip Slightly, but say high from a historical perspective for the remainder of the year and through 2009. Vancouver home prices will rise, but at a slower pace than in the past few years, as an increasing supply of both new and existing homes for sale give Vancouver home buyers more choice and more time to make their purchasing decision.

MLS Sales in Metro Vancouver Real Estate Will Come Down off the Near-Record High Reached in 2007, but stay well above the ten year average of 31,000. Strong Vancouver home buyer demand, fuelled by job growth, and a steady flow of people moving to the region will keep sales brisk. However, waning consumer confidence and high mortgage carrying costs will constrain Vancouver home sales. MLS sales will dip eight per cent to 36,000 units in 2008, and a further three per cent in 2009 as mortgage rates start to creep up. The main factors tempering Vancouver home buyer demand will be high home prices and softening consumer sentiment. With the average resale home price in Metro Vancouver at more than $600,000 and still rising, some potential homebuyers will opt to delay their purchase. Some low equity and first time home buyers could find it difficult to negotiate a mortgage with achievable monthly carrying costs, in spit of low mortgage rates. At present active listings sold is around 25%, which is the amount that divides a Vancouver sellers market to a balanced market.

The Supply of Vancouver Resale Homes on the real estate market will grow as homeowners look to capitalize on the home equity build up resulting from four straight years of double digit home price increases. The decision to sell may take an added urgency in light of the Vancouver housing marketing downturn int eh US. In the first quarter of 2008, the average number of active MLS listings for sale in Metro Vancouver increased nine per cent p=compared to the same period last year; with the supply condominiums for sale increasing more than other home types. At the end of the first quarter there was a five month supply of Vancouver homes on the real estate market, up from four months. Over the last 10 years, the highest supply was in 1995 when it was at 12 months.

Home Building Will Be Robust: new home construction in the Vancouver real estate area will be near historic highs this year and next, but will dip slightly compared to last year’s swift pace. Some moderation in new Vancouver home building will be due to an easing in demand for new pre-construction homes as homebuyers are able to meet their housing needs int eh better supplied resale market. Secondly, tightening credit conditions for Vancouver real estate developers may make it more difficult to secure financing for new multi-family projects. Home starts will decline 8% this year, and a further 3% next. Two thirds of homes built last year were condo projects.

Condominiums And Rental Outlook Positive – Vancouver Resale Condo Market – existing Vancouver condo sales will moderate slightly, but stay high for the remainder of 2008 and through 2009. Demand for condominiums will be sustained by the strong fundamentals mentioned above and will also be bolstered by continuing low mortgage rates and the lower price of condo homes, compared to detached. The average MLS price of a condo in Metro Vancouver is now more than $400,000 below the average price of a house.

Expect the Supply of Condo Listings To Trend Up over the next 18 months as demand moderates. In the first quarter of 2008, the average number of active MLS condo listings in Vancouver for sale increased 16% compared to the same period last year. By end of first quarter, the supply of condos on the Vancouver real estate market increased to a 4 month supply, up from 3 months a year earlier. This signals demand and supply moving towards equilibrium.

New and Existing Condo Prices in Vancouver Will Continue to Rise, but at a slower pace in the past few years. Price growth will slow into the single digit range this year with 8% appreciation this year and 5% next.

New Vancouver Condo Construction absorptions of new condos have been closely tracking completions for the past year, with virtually all (98%) units absorbed upon completion. An estimated one half of units underway are pre-sold and the supply of completed, unsold new Vancouver units is growing slowly but remains at less than one third of the 10 year average level. Unsold supply is located mainly in Maple Ridge/Pitt Meadows and Surrey. Vancouver has very few unsold units.

High starts and longer completion times have pushed the number of condos under construction to record highs, with over 20,000 units underway at he end of March 2008. At the current absorption rate of 600 condos per month, there is a 33 month supply of units coming on stream over the next 2-3 years. When Vancouver pre-sales condos is taken into account the number of months supply is halved to 16 months. The supply of unsold new condo Vancouver units will edge up as condo demand moderates from the buying frenzy of the past few years and as more resale condo listings become available through the remainder of 2008 and in 2009.

Speculative and Investor Activity speculation in Vancouver’s condo markets has been trending down over the past year and will continue to edge down as the pace of price growth slows this year and next. In 2007 almost one quarter of condo units in the Metro Vancouver were owned by real estate investors, a marginal dip from 5 years ago. Investor presence is higher in the downtown core, where 45% of condos are investor owned. The more expensive areas of downtown (Coal Harbour and False Creek North) have a slightly lower proportion of Vancouver investor units compared with less expensive areas.

Vancouver Economy will support housing demand solid local economic conditions in Metro Vancouver will support demand for housing this year and next. Economic growth of 3% or better is forecast for the region through 2009 with residential and non residential construction, as well as wholesale and retail trade growth. Vancouver home building will stay at high levels with non-residential construction, including Olympic related projects and non related projects, such as the Vancouver Convention Centre, ongoing work on the Vancouver International Airport and building renovations at UBC, will keep Vancouver’s builders busy.

Consumer spending, the largest component of domestic demand, will be spurred on by a growing population job and income growth. The unemployment rate is at 20 year low of 4% with 36,000 jobs added in the Metro Vancouver region last year. Strong job growth will continue and will support demand for homeownership and rental housing.

Vancouver’s healthy job market and growing international reputation as a clean, liveable city will draw people to the region from other provinces and from abroad. Greater Vancouver will gain more than 30,000 people through migration in each of the coming years. International migrants will account for most of this Vancouver growth, but the Vancouver region will continue to attract people from other provinces who are looking for jobs. This will sustain housing demand.

On the downside, one of the main factors limiting homebuyer Vancouver demand will be softening consumer sentiment. Consumer confidence is based on the US economic and housing slowdown, the sub-prime crises in the US and the economic slowdown in central Canada as well, the high Canadian dollar and low lumber prices in BC. While Metro Vancouver economy is diverse and somewhat insulated from these economic developments, downside risks to the economic outlook remain.

Mortgage rates will remain relatively flat.