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.

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

All About Balance in the Vancouver Real Estate Market Housing Prices

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

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Analysts in Greater Vancouver See Prices Soaring

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

Vancouver Condo Crazy

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

The High Price of Homes in Vancouver

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

Pricey Properties in Vancouver Real Estate Market

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

Housing Sales Will Remain Strong in Canada

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

The Latest Vancouver Real Estate Stats - Will Prices Keep Going Up or are we expecting a time of Balanced and Sustainable Growth in the Lower Mainland

Experts Remain Confident in Vancouver Real Estate Housing Market

Credit Union of B.C. remains confident in the B.C. housing real estate market, and the respected group is not alone. CUCBC chief economist Helmut Pastrick anticipates B.C. house prices rising up to 12 per cent in 2008 and moving up again in 2009 by 12 per cent to 14 per cent. Pastrick, however, also cautions that poor affordability is the main constraint on the current new B.C. housing real estate market. Yet, housing starts in January and February were up 47 per cent over the first two months of 2007 in the Vancouver metropolitan real estate area, an indication that others also remain bullish. Meanwhile, Royal LePage survey has found that healthy year-over-year house price gains in Vancouver real estate were recorded during the first three months of 2008. While more modest price increases were observed when compared to previous quarters in the new Vancourer real estate property market, the solid appreciations are largely due to the shared effects of resilient local economies , high migration levels, and relatively low interest rates. This all points to enduring home buyer demand in Vancouver property, according to Royal LePage. While almost all real estate Vancouver markets surveyed experienced price increase in housing, it was the smaller cities, with relatively affordable housing and strong economies based on resources industries that emerged with the most significant gains. Thriving Saskatoon saw appreciation as high as 66 per cent, while areas in Newfoundland posted increases above 20 per cent for the first time since Royal LePage started tracking Canadian house prices.

Of the housing types in Canada surveyed nationally, detached bungalows increased to $336,834 (up 8.3 percent), followed by standard two storey properties, which rose to $400,647 (up 7.1 per cent) and standard condominiums, which increased in price to $240,423 (up 6.9 per cent), year over year. House prices in Vancouver real estate and Victoria property continued to climb during the first quarter of 2008 due to strong local and international home buyer demand. In Vancouver, the upcoming 2010 Olympic Games have added extra fervor to the already strong economy. The city’s high employment levels and relatively low cost of borrowing money conteinues to attract an in flux of new homebuyers to the Vancouver real estate market. While affordability in Vancouver appears to be decreasing, current rising wages and relatively low interest rates enable homebuyers to enter the housing market.

Vancouver Home Foreclosures Rising: Real Estate Expert

According to Sam Cooper, a Staff Reporter for the North Shore Outlook newspaper: Real estate foreclosures on the North Shore and across the Lower Mainland are on the rise and the trend is expected to accelerate in the next few years, according to an expert. Kap Hiroti, a real estate investor in Vancouver who started a business gathering and selling data on B.C. foreclosures in 2006, says foreclosure listings have jumped in the past year. Back in 2006 an average week would see about 10 Lower Mainland foreclosure Vancouver listings, but now it’s clower to 20, Hiroti said. The reasons behind rising foreclosures is unprecendted lack of affordability and borrowers over-extending themselves to purchase homes, Hiroti explained. “We have people drawn to (purchase homes in) North Vancouver and West Vancouver, and find they can’t afford it,” Hiroti said in an interview Monday. So far in 2008 there have been three foreclosures in North Vancouver and three in West Van. There have been six in the Squamish Valley and three in nearby Whistler. “We are expecting to see (Vancouver foreclosure listings) go up in the next couple years,” Hiroti said. “I’m expecting some real movement as we get into 2010 and beyond.”

Hiroti said about 80 per cent of provincial B.C. foreclosures come from the Lower Mainland real estate market, with Vancouver and Surrey accounting for almost 40 per cent. Hiroti said most of the current Vancouver foreclosures listings result from loans taken out int eh past six to twelve months – as financially over-extended home buyers default or walk out of high-raio (little money down) loans with amortization periods up to 40 years. Hiroti said the new long-period loans allowed home buyers into a pricey Vancouver real estate market, but as they discovered they couldn’t keep pace with interest and payments, they hit the finanical wall. While Hiroti is predicting a big rise in Lower Mainland Vancouver foreclosures in the next few years, he doesn’t believe it will approach the tsunami of foreclosure listings hitting the United States now. In the wake of an excessive real estate market of “sub-prime” loans given to borrowers with questionable credit, the American housing market has collapsed as buyers eject out of huge loans and rapidly devaluing homes. At the same time, tightened lending resulting form the crisis has choked off real estate market entry for many prospective buyers.

Hiroti said American lenders were far more agreessive than their Canadian counter parts and thus the Canadian real estate market should be insulated from the debacle taking place in the United States. “Canada has some sub-prime lenders but not to the same extent as the U.S.,” Hiroti said. “Our credit is clamping down here (but) itn’s not a crunch.” Hiroti said he believes “fairly low” interest rates and continued popularity of 35 to 40 year loan products will mean stabilization of prices in Canada’s “softening” real estate market and lead to a stable Vancouver foreclosure property market. “We’re not going to see anything like (the dip) in the U.S. (real estate market or foreclosure listings.” In a series of reports this month, Cameron Muir, chief economist for the British Columbia Real Estate Association, signaled a shift to a more buyer friendly real estate market in Vancouver. “Some weakness on the export side of the economy and eroding affordability will have an impact on housing demand over the next two years,” Muir said. B.C. home sales were down 14 per cent in the first quarter of 2008, while active listings were up 24 per cent, according to Muir. “more balance between demand and supply means less upward pressure on home prices. It also reduces the chance of multiple bids on the same (Vancouver home), giving homebuyers more time to investigate properites thoroughly before purchasing.” Home buyers in Vancouver who want to access the Vancouver foreclosure real estate market can sometimes negotiate deals below market value, depending on the financial situation of the owner, Hiroti said. DealSpeak Inc.

Vancouver Housing Market Cools

According to Jeff Nagel for the Black Press and published in the North Shore Outlook newspaper: The once-hot Lower Mainland housing real estate market has cooled significantly, new stats show. Real estate stats for May in Vancouver show home prices have posted only small gains so far in 2008. Detached house prices are up about 5.5 per cent so far in 2008 in both the Greater Vancouver and Fraser Valley realty areas ito $771,250 and $549,610 respectively. Greater Vancouver townhouses sold for 4.8 per cent more in May ($479,000) while condos were up 3.1 per cent to $390,000. Fraser Valley townhomes and condos are both up less than one per cent for the year so far to $341,000 and $229,700. Both those average selling prices marked a slight drop from April. Both real estate boards reported a sharp drop in sales and many more new housing listings from prospective sellers compared to a year ago – continuing evidence of a softening Vancouver and Fraser Valley real estate market. “Prices are not increasing as rapidly – now down to single digits overall – which is good news from an affordability standpoint,” said Dave Watt, president of the Real Estate Board of Greater Vancouver. Greater Vancouver real estate sales were down 33 per cent in May from a year earlier. Fraser Valley sales in housing real estate were off 26 per cent and active listings surged 33 per cent in May. “We’re experiencing a return to more normal market conditions,” said Kelvin Neufeld, the Fraser Valley Real Estate Board president. CMHC has predicted residential price gains in housing in Vancouver of eight per cent this year and five per cent in 2009. That would end four straight years of double digit growth. Analysts say a US style housing market real estate collapse here is unlikely, thanks to Vancouver’s job and population growth trends and its constrained geography up against mountains, ocean and the U.S. border. The Greater Vancouver real estate stats count Metro Vancouver except Surrey, Langley, and North Delta, which are tallied in the Fraser Valley real estate numbers.

Greater Vancouver Home Sales Inched Higher in January

According to the REW weekly for Greater Vancouver, Housing sales across Greater Vanocuver inched slightly higher in January compared to a year earlier, while listings of homes for sale also increased. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales totalled 1,819 in January 2008, an increase of 0.7 per cent over January 2007, and a 5.5 per cent decline form January 2006. New listings also climbed 14.9 per cent compared to January 2007. In contrast January 2006, new listings from this January rose more dramatically up 34.7 percent. “with new listings outpacing sales increases to start the year, it appears the real estate market is heading toward more balance,” says REBGV president. “the result will be welcome for consumers looking for more time to undertake due diligence before making a buying or selling decision.” Sales of apartment properties in Greater Vancouver in january 2008 rose 11.7 percent to 860. The benchmark price, as calculated by REBGV’s price index, of an apartment property increased 13.8 per cent to $378,336. “It was clearly on the strength of the apartment sales that overall residential sales figures increased in January,” says Naphtali. “there’s clearly been a trend over the past decade toward growth in the high density condo market. More and more consumers are purchasing apartments.” Attached property sales declined 6.7 per cent to 318, compared with January 2007. The benchmark price of an attached unit increased 12.4 per cent to $462,627. January 2008 sales for detached houses decreased 7.8 per cent to 641 from the same period in 2007. The January benchmark price for detached properties in Greater Vancouver’s real estate market rose 15.7 perc ent to $742,490.

BC Construction Leading in Canada

52,000 jobs created in the field, census shows and written by Kristen for Metro Vancouver magazine in March 2008. British Columbia’s booming construction real estate industry helped make the trade one of the fastest growing labout fields in Canada, a study released yesterday found. Nearly 52,000 construction jobs in BC were created between 2001 and 2006, making up one quarter of the province’s job growth according to Statistics Canada’s report on labour mobility. In Alberta, real estate construction sector increased by 39,700 jobs during the same period. The expansion in BC is attritubted in part to the buildup to the 2010 Olympic Games. Mak Kader, who works for Graham construction, moved to Vancouver in September after two fruitless years searching for a real estate construction related job in Toronto. “It’s better wather, better pay and benefits, and better hours,” he said in Vancouver.

Real Estate Market Forces, not Olympic Games, To Drive Vancouver Property Demand

Published in the Real Estate Edge on February 23, 2007 and written by Monte Stewart. Forum looks to future of housing growth in the Greater Vancouver region. The 2010 Vancouver Winter Olympics will not be a big driver of new housing demand, predicts a leading residential real estate market analyst. Traditional market forces – not the Games – will still be dictating demand around 2010, says Jennifer Podmore, managing partner of MPC Intelligence. MPC Intelligence updates companies monthly on residential real estate projects in Vancouver, Victoria, the Interior and Calgary through its website (www.mpcintelligence.ca). Clients include real estate developers, builders, lawyers, architects, and municipalities. Podmore recently spoke at a panel discussion at the Buildex 2007 conference on the future of the Greater Vancouver real estate property market.

She noted that today’s prices will go up only slightly between now and the Olympic Games. “But the big message that we’re giving our clients is that they have to plan in today’s dollars for tomorrow’s market,” she said in an interview. “By the time the Olympics hit, that’s going to be our eighth consecutive year of real estate market growth, if we keep going in that way,” she added. “No market – no matter how healthy and sustainable you are, and how great your economic indicators are – can handle that sort of sustained long-term growth.” Real estate developers in Vancouver recognized long ago that the Olympic Games would not be a huge source of residential demand. And this year, Podmore predicted, the Greater Vancouver residential market won’t see the same rapid escalation in prices that it has in the past couple of years, purely as a result of reduced affordability and because most home buyers are “end users” – people who will actually live in the homes – rather than real estate investors.

MPC is monitoring 2,100 residential projects, which contain more than 71,000 units, that are now in the planning and construction stages. High-rise condos make up the bulk (4,335) of 8,674 new units expected to come on the real estate market in the near future, while low-rise (1,691) and townhomes (767) rank second and third, respectively. In the future, Podmore expects real estate developers to build more woodframe condos, which cost less than concrete structures. The high cost of concrete has repeatedly been cited as a prime cause of construction-cost increases in the past few years. Podmore forecasts that the downtown Vancouver sub-market will have the highest unit cost this year - $825 per square feet, compared with $775 in 2006. Surrey and Langley will have the lowest at $390. Although the Olympic Games won’t affect housing demand, they will have a big impact on the industrial market, according to Russ Bougie, an industrial-property sales specialist with Colliers International. Bougie is expecting a sizable decline in industrial demand following the Games.

Now, however, industrial vacancy is at only 1.4 per cent. In other words, for every one million sq ft of industrial land, only 14,000 sq ft of warehouse space is available for lease in Greater Vancouver. “You don’t know how many calls I get from tenants looking for X amount of square feet with a dock or a loading door, and it doesn’t exist,” said Bougie. As a result, many companies are opting to operate several small locations rather than one large one, and firms are moving their operations further east toward the Fraser Valley. Home Depot opted to acquire property in Port Coquitlam for a 20,000 sq ft warehouse, he said, because it could not find a site closer to West Vancouver and Vancouver stores that the new facility will service. Bougie predicted an average lease rate of $110 - $120 per square feet. “Our real estate market has changed a lot,” said Bougie, referring to higher industrial-property prices. “I’m not complaining.”

The Olympic Games will also have an impact on demand for office space, said Andrea Walburn, research director for Cushman Wakefield LePage. “There are going to be a lot of short-term leases and a lot of companies (opening new offices) related to the Winter Olympics,” said Welburn. But this year, demand for office space, which has been extremely high the past few years, will start to ease. Approximately 12 to 15 floors worth of office space downtown may stabilize rental rates that have reached $40 per square foot recently. “Downtown, we’re about five per cent vacant – which is nothing,” said Welburn.

Burnaby and Surrey are poised to add more supply while New Westminster, which has a 16 per cent vacancy rate and is not an overly attractive sub-market is making slow steady improvements. Meanwhile, strong demand is also expected to continue in the retail sector. But Curtis Redel, a retail specialist with Avison Young, indicated that real estate market will still experience some significant changes. Some planned real estate projects will be postponed as consumer spending slows down and a labour shortage continues beyond 2010. Today, the drivers of retail real estate demand are the strong North American economy, U.S. consumer spending and investment, downtown Vancouver’s population growth, street-front locations, the labour shortage and rising land prices. As a result, of these factors, local tenants have been pushed out by international chains.

Based on the number of people who sought out Podmore for one-on-one questions afterward, most Buildex conference delegates were interested in residential demand. “It was quite interesting,” said Rich Zalaudek, a realtor with Royal LePage. “They all wanted her to forecast what was going on. They all wanted the answers. People are relying on somebody else to get the answers and then go ahead and that, instead of trying to figure it out themselves.” He said the Olympic Games will have more of a long-term effect on residential demand. “We’re going to be on a world stage,” he said. “They’re going to go, ‘Wow, what a fantastic place.’ But I don’t think they’re all going to rush here and buy homes right away.”

The relocation of industrial properties and real estate to the Fraser Valley and elsewhere will help to balance the Greater Vancouver market as jobs and homeowners move with them, he added. “Since the prices of homes are so high, there is relief in the valley,” said Zalaudek. “(The average home price) is slightly less. I think (movement of industrial sites) is good. It’s spreading things out and making the whole Lower Mainland more liveable. It just makes more sense.” James Ko, project manager with Kozy Development Inc., a Vancouver-based multi-family home and commercial builder, said he was glad to hear expert speakers confirm real estate trends that he has already noticed. “The forecast, I think, is good,” said Ko. “They’ve got reasons behind what they’re saying. It’s a growing city. There’s a cycle.”