Tuesday, November 30, 2010
Tsur Somerville on Current Vancouver Market Conditions
My Former Professor Tsur Somerville from UBC Real Estate Program says affordability is improving in BC as interest rates drop, prices flatten, and incomes improve.
Friday, November 26, 2010
The 2010 Vancouver Real Estate Market Recovery
We see a sharp decrease in values in 2008 due to global recession (worst in our trading partner to the south the US) and drop in consumer confidence, and then we see a sharp recovery. The recovery was the result of pent up demand, increased consumer confidence, Buyers rushing to Beat HST, all time low interest rates, and pre-Olympic hype and publicity.
Everyone lately has been asking me what will happen next. With high demand, high prices, and high rent rates, investors and residents are asking will anything give? Since I believe Demand will continue to grow steadily, led by new immigration and foreign direct investment, and our supply is geographically limited, the best person to ask this question to may be your banker or your local politician!
This is because I believe interest rates to be the determinable factor in what happens next in Vancouver Real Estate. If they stay low or rise slowly as most experts predict than I am very confident real estate will continue to be the best tangible investment one could make. Especially as their principle residence as home owners build equity and add value to their property through home improvements.
I bet on low interest rates as record foreclosure rates in the US and devastating recessions in big global markets across Europe and Asia suggests a booming economy is not in our near foreseeable future, and the government won't drastically raise rates until our economy indicates strong recovery.
Vancouver, BC has the worlds best banking system, one of the best education systems, its safe, clean, temperate, we are rich in natural resources, and we are positioned to be a major player in Trade and Travel for decades to come.
If you have any questions regarding Vancouver Real Estate please do not hesitate to call 604.562.0532 or write Stu@StuBell.com.
Tuesday, November 23, 2010
New Listing at Edgewater Estates! A Real Estate Investors Dream!
I am proud to present a 2 bedroom top floor apartment at Edgewater Estates! This suite is totally renovated with designer style, a bright south facing corner unit, tiled entry and kitchen, and rich granite counters and window sills. North Vancouver's best value at 952 sq ft for $258,880! Currently tenanted to great tenants at $1400/month, a superb investment!
Edgewater Estates is a proposed development site with a high potential of a buy out from a big Developer such as Polygon. With a brand new development just completed by Polygon down the street, The Wedgewood, and an adjacent site across Premier St ready for redevelopment, it is simply a matter of time before this sprawling 15 acre site gets acquired for demolition and redevelopment. When this occurs, a determined majority vote must occur, and homeowners are often persuaded by above market buy-out prices because the highest and best use is now a townhouse or multi-unit low rise development with much more value than one hundred 42 year old wood frame apartments. Ideally located near parks and recreation, Capilano University, Transit, Shopping, and easy freeway access on a massive 15 acre property.
Whether you are looking for a bright and peaceful place to raise your kids, relax with pets and friends, or BBQ on your patio; or an intelligent investment property with positive cash flows and a Buy Out scenario in the near future, this solid unit in a great complex is a must see!
Edgewater Estates is a proposed development site with a high potential of a buy out from a big Developer such as Polygon. With a brand new development just completed by Polygon down the street, The Wedgewood, and an adjacent site across Premier St ready for redevelopment, it is simply a matter of time before this sprawling 15 acre site gets acquired for demolition and redevelopment. When this occurs, a determined majority vote must occur, and homeowners are often persuaded by above market buy-out prices because the highest and best use is now a townhouse or multi-unit low rise development with much more value than one hundred 42 year old wood frame apartments. Ideally located near parks and recreation, Capilano University, Transit, Shopping, and easy freeway access on a massive 15 acre property.
Whether you are looking for a bright and peaceful place to raise your kids, relax with pets and friends, or BBQ on your patio; or an intelligent investment property with positive cash flows and a Buy Out scenario in the near future, this solid unit in a great complex is a must see!
HST Calcualtor & HST Exemptions in Vancouver, British Columbia!
If you are thinking of Buying a New Apartment in Vancouver or anywhere in British Columbia you have to know what the HST exemptions are!
Follow this link to calculate the amount of HST you will owe on a New Home Purchase, and if you are a home buyer purchasing property below $425,000, then calculate how much HST you will save when you purchase your first home for use as a primary residence.
http://www.bcrealestatelawyers.com/pricing/hstcalculator.html
Buying a vacation property you will not be eligible for a rebate but unlike GST, investors purchasing to rent are eligible for HST rebates if within the threshold the BC government is allowing.
First time Home Buyers don't forget the savings available to you on Property Purchase Tax and HST when purchasing your first property under $350,000.
If you have any questions regarding HST and Vancouver Real Estate please contact Stu Bell at 604.562.0532 or stu@stubell.com.
Follow this link to calculate the amount of HST you will owe on a New Home Purchase, and if you are a home buyer purchasing property below $425,000, then calculate how much HST you will save when you purchase your first home for use as a primary residence.
http://www.bcrealestatelawyers.com/pricing/hstcalculator.html
Buying a vacation property you will not be eligible for a rebate but unlike GST, investors purchasing to rent are eligible for HST rebates if within the threshold the BC government is allowing.
First time Home Buyers don't forget the savings available to you on Property Purchase Tax and HST when purchasing your first property under $350,000.
If you have any questions regarding HST and Vancouver Real Estate please contact Stu Bell at 604.562.0532 or stu@stubell.com.
Friday, November 12, 2010
1295 Ottawa Ave New Price & New Floorplans Added!
1295 Ottawa Avenue is the perfect family home nestled at the end of Quite and Prestigious Ottawa Avenue in sought after Upper Ambleside, West Vancouver! Featuring 6 bedrooms and 4 bathrooms in a 4500 sq ft Post & Beam home on a sprawling 16,200 sq ft Property! Stunning views can be enjoyed from all principle rooms and a spacious wrap around balcony. Just minutes from Ridgeview Elementary and West Van Secondary in a friendly and safe family orientated community.
I am proud to offer this home for sale for $1,468,000!
An ideal investment opportunity as this home has a self enclosed legal suite for inlaws, nannys, or mortgage helpers. Rent the whole house as is for $4000 or renovate and add substantial value to the solid bones of this rare offering. Build your dream house up to 9000 sq ft amongst multi million dollar mansions.
Please call Stu Bell at 604.562.0532 for your private showing.
Visit www.StuBell.com for pictures, Lot Plan, and Floor Plans.
I am proud to offer this home for sale for $1,468,000!
An ideal investment opportunity as this home has a self enclosed legal suite for inlaws, nannys, or mortgage helpers. Rent the whole house as is for $4000 or renovate and add substantial value to the solid bones of this rare offering. Build your dream house up to 9000 sq ft amongst multi million dollar mansions.
Please call Stu Bell at 604.562.0532 for your private showing.
Visit www.StuBell.com for pictures, Lot Plan, and Floor Plans.
Wednesday, November 3, 2010
Trip to Arizona in Search of Foreclosures and Real Estate Deals
I just returned from a fascinating trip to Phoenix/Scottsdale/Tempe Arizona to dig my teeth into the current distressed real estate market. I lived in Arizona a few years ago, playing professional golf on The Gateway Tour and various other mini-tours. At the time, the buzz words were foreclosure and Obama, and I saw real opportunity to pick up real estate at 50% of its pre-sale value but I didn't have the resources to capitalize.
On this past trip, I was surprised to see prices have dropped further, and the problem was worse, with over 800 foreclosures per day in the Phoenix area. Some people were foreclosing on 1 property while buying another, because they couldn't afford the payments and the home had crashed in value from when they bought it so they were better off just walking away and losing their down payments and equity in the property.
The primary cause of these foreclosures is over-lending, unethical lending/mortgage brokers, and misinformed Buyers who simply did not understand the structure of a lot of these $o down, 1% mortgages. Lenders weren't regulating their practices, mortgage brokers were lending to unqualified Buyers to make a buck, and Buyers were not aware that their 1% mortgages would jump to 7% in 2 years.
In Arizona, land is plentiful and construction costs are less expensive so home prices consists mostly of the pure cost of materials and labor to construct them. With the amount of foreclosures today, Buyers are picking up properties for 50% of the replacement costs.
I met up with a friend from West Vancouver who now lives and works for a Real Estate Investment Company in Scottsdale. We toured a few properties and I was amazed. A 3 bedroom house for $60,000 flipped and SOLD for $150,000. A luxury 800 sq ft condo for $60,000 that rents fro $700. A luxury 3 bedroom townhouse for $150,000 that sold pre-sale 4 years ago for $600,000. A 35 unit apartment complex with an annual rent roll of $225,000 for $560,000!
Needless to say there are amazing deals in the Desert. When the US economy turns, and the financial sector straightens out their lending practices, these houses and apartments with undoubtedly return to original replacement value and above. The trick is that is requires all cash to get the best deals and Buyers have to be willing to take on the risk of dilapidated properties as theft and damage are common place.
I hope to Buy a condo down there this winter, and if anyone reading this is interested please contact me and I can help you get in touch with the right people.
While a 1 bedroom condo in Vancouver is about $400,000 these days, and an average house is over $1,000,000, I still have faith in our financial system, our provinces rich supply of natural resources, and the strong International Demand in our city to sustain current home values.
If you have any questions regarding Vancouver or Arizona Real Estate please do not hesitate to contact me anytime.
On this past trip, I was surprised to see prices have dropped further, and the problem was worse, with over 800 foreclosures per day in the Phoenix area. Some people were foreclosing on 1 property while buying another, because they couldn't afford the payments and the home had crashed in value from when they bought it so they were better off just walking away and losing their down payments and equity in the property.
The primary cause of these foreclosures is over-lending, unethical lending/mortgage brokers, and misinformed Buyers who simply did not understand the structure of a lot of these $o down, 1% mortgages. Lenders weren't regulating their practices, mortgage brokers were lending to unqualified Buyers to make a buck, and Buyers were not aware that their 1% mortgages would jump to 7% in 2 years.
In Arizona, land is plentiful and construction costs are less expensive so home prices consists mostly of the pure cost of materials and labor to construct them. With the amount of foreclosures today, Buyers are picking up properties for 50% of the replacement costs.
I met up with a friend from West Vancouver who now lives and works for a Real Estate Investment Company in Scottsdale. We toured a few properties and I was amazed. A 3 bedroom house for $60,000 flipped and SOLD for $150,000. A luxury 800 sq ft condo for $60,000 that rents fro $700. A luxury 3 bedroom townhouse for $150,000 that sold pre-sale 4 years ago for $600,000. A 35 unit apartment complex with an annual rent roll of $225,000 for $560,000!
Needless to say there are amazing deals in the Desert. When the US economy turns, and the financial sector straightens out their lending practices, these houses and apartments with undoubtedly return to original replacement value and above. The trick is that is requires all cash to get the best deals and Buyers have to be willing to take on the risk of dilapidated properties as theft and damage are common place.
I hope to Buy a condo down there this winter, and if anyone reading this is interested please contact me and I can help you get in touch with the right people.
While a 1 bedroom condo in Vancouver is about $400,000 these days, and an average house is over $1,000,000, I still have faith in our financial system, our provinces rich supply of natural resources, and the strong International Demand in our city to sustain current home values.
If you have any questions regarding Vancouver or Arizona Real Estate please do not hesitate to contact me anytime.
Chinese Buyers Flock to Vancouver, BC
China's immense interest in Vancouver properties was first reported this past summer, now 3 months later, we see that the buyers were serious.
Housing prices in Vancouver's West Side are up 30%+ this past year, and the average home value is now over $1,800,000. A 6000 sq ft Lot with an old 2500 sq ft home, no view, are selling quickly for $1,600,000 and up. West Vancouver, average home value about $1,500,000 and home of some of Canada's finest Real Estate, is starting to see an influx in property sales, primarily driven by Chinese oversees Buyers. Recent sales include $8,000,000 on Hillside and $9,000,0000 in Altamont, neither property even close to the Waterfront. At this point a Buyers dollar goes a lot further on The Northshore, but Buyers are still skeptical about the Lions Gate Bridge access to the city center.
China-based Internet sales company SouFun started to organize trips to Vancouver for real estate-hungry groups of wealthy investors. The first two groups from Shanghai and Beijing, consisting of around twenty potential buyers, have been visiting Vancouver and Toronto since August. Needless to say, their interest have focused on million-dollar listings.
As reported by Canada-based Ming Pao Daily News, these buyers are especially interested in neighborhoods with ocean-views and neighborhoods with high-class educational institutions. Until now, Chinese bargain hunters mostly used conferences and business meetings as an opportunity to look around local listings. This is the first time the home-hunt is the sole purpose of visit.
Chinese Buyers are also very sensitive to traditional Feng Shui which include major deal breakers such as irregular lots, houses built at on a cul-de-sac or at a T-junction, houses built lower than the neighbors, front doors where guest can see right through the house upon entrance, having trees directly outside the front door, and having a straight driveway leading up the house. While most Canadians do not consider these things (in fact they can be positives) it is important to know them as it can greatly effect the value of your home when it comes time to re-sell because millions of Chinese hold these values sacred.
Why are they so attracted to come and live in Vancouver? Believe it or not, it is caused by the price level. Despite being at the top among Canadian markets when it comes to average price, Vancouver properties are cheaper compared to similar ones in Beijing or Shanghai. Canada boasts with high-quality education system, health care, safety and overall quality of life; therefore, it is one of the most favored destinations for rich immigrants, especially from Asia.
Despite accounting for around 80% of showings in some parts of Vancouver, Asian buyers will probably not turn on a shopping spree immediately. Most of them just needs to explore potential future home, only then will proceed with immigration. Still, many of them will become our neighbors in the near future and will fuel the property market, often Buying now and holding until their children can come and study in Vancouver.
Is the future a Chinese owned Real Estate sector with local Vancouverites as tenants? Many experts can see this unfolding but we will have to wait and see if the $1.3 Billion Chinese people continue pouring their money and relocating their families to Canada. Perhaps local government needs to tighten regulations to prevent a housing bubble creating widespread affordability concerns in what is already one of the most expensive cities in the World.
Housing prices in Vancouver's West Side are up 30%+ this past year, and the average home value is now over $1,800,000. A 6000 sq ft Lot with an old 2500 sq ft home, no view, are selling quickly for $1,600,000 and up. West Vancouver, average home value about $1,500,000 and home of some of Canada's finest Real Estate, is starting to see an influx in property sales, primarily driven by Chinese oversees Buyers. Recent sales include $8,000,000 on Hillside and $9,000,0000 in Altamont, neither property even close to the Waterfront. At this point a Buyers dollar goes a lot further on The Northshore, but Buyers are still skeptical about the Lions Gate Bridge access to the city center.
China-based Internet sales company SouFun started to organize trips to Vancouver for real estate-hungry groups of wealthy investors. The first two groups from Shanghai and Beijing, consisting of around twenty potential buyers, have been visiting Vancouver and Toronto since August. Needless to say, their interest have focused on million-dollar listings.
As reported by Canada-based Ming Pao Daily News, these buyers are especially interested in neighborhoods with ocean-views and neighborhoods with high-class educational institutions. Until now, Chinese bargain hunters mostly used conferences and business meetings as an opportunity to look around local listings. This is the first time the home-hunt is the sole purpose of visit.
Chinese Buyers are also very sensitive to traditional Feng Shui which include major deal breakers such as irregular lots, houses built at on a cul-de-sac or at a T-junction, houses built lower than the neighbors, front doors where guest can see right through the house upon entrance, having trees directly outside the front door, and having a straight driveway leading up the house. While most Canadians do not consider these things (in fact they can be positives) it is important to know them as it can greatly effect the value of your home when it comes time to re-sell because millions of Chinese hold these values sacred.
Why are they so attracted to come and live in Vancouver? Believe it or not, it is caused by the price level. Despite being at the top among Canadian markets when it comes to average price, Vancouver properties are cheaper compared to similar ones in Beijing or Shanghai. Canada boasts with high-quality education system, health care, safety and overall quality of life; therefore, it is one of the most favored destinations for rich immigrants, especially from Asia.
Despite accounting for around 80% of showings in some parts of Vancouver, Asian buyers will probably not turn on a shopping spree immediately. Most of them just needs to explore potential future home, only then will proceed with immigration. Still, many of them will become our neighbors in the near future and will fuel the property market, often Buying now and holding until their children can come and study in Vancouver.
Is the future a Chinese owned Real Estate sector with local Vancouverites as tenants? Many experts can see this unfolding but we will have to wait and see if the $1.3 Billion Chinese people continue pouring their money and relocating their families to Canada. Perhaps local government needs to tighten regulations to prevent a housing bubble creating widespread affordability concerns in what is already one of the most expensive cities in the World.
Tuesday, November 2, 2010
October 2010 Greater Vancouver Sales Stats
Home sales remain steady in Greater Vancouver
Greater Vancouver home sales have remained steady over the past four months, indicating stability in the residential housing market. With the MLS® sales to active listing inventory ratio indicating a buyers’ market, properties appropriately priced are selling.
According to the MLSLink® Housing Price Index (HPI), the benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 4.6 per cent to $579,349 in October 2010 from $553,702 in October 2009. Since June, however, residential home prices in Greater Vancouver have remained relatively unchanged, declining 0.2 per cent.
“We’ve seen a lot more consistency and less volatility in recent months when it comes to both number of sales and pricing, although it’s important to remember that conditions often vary between communities and neighbourhoods,” Jake Moldowan, Real Estate Board of Greater Vancouver (REBGV) president said.
Looking at transactions, the number of residential property sales in Greater Vancouver totalled 2,337 in October 2010. This represents a 5.3 per cent increase compared to September 2010 and a 36.9 per cent decline from the 3,704 sales in October 2009.
More broadly, last month’s residential sales represent a 71.3 per cent increase over the 1,364 residential sales in October 2008, a 22.8 per cent decline compared to October 2007’s 3,028 sales, and a 14.1 per cent decline compared to the 2,722 sales in October 2006.
“As we enter the final two months of the year, buyer demand is in closer alignment with supply than we’ve seen for most of 2010,” Moldowan said. “Those buying today recognize that they still have a chance to enter the market with near-record low interest rates, while gradual reductions in inventory have eased downward pressure on prices.”
Total active listings on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 14,075, an 8.6 per cent decline from last month and a 16.4 per cent increase from October 2009. New listings for detached, attached and apartment properties declined 25.7 per cent to 3,698 in October 2010 compared to October 2009 when 4,977 new units were listed.
Sales of detached properties in October 2010 reached 976, a decrease of 34.4 per cent from the 1,487 detached sales recorded in October 2009, and a 98 per cent increase from the 493 units sold in October 2008. The benchmark price for detached properties increased 6.3 per cent from October 2009 to $796,883.
Sales of apartment properties reached 984 in October 2010, a decline of 38.8 per cent compared to the 1,607 sales in October 2009, and an increase of 52.1 per cent compared to the 647 sales in October 2008.The benchmark price of an apartment property increased 2.4 per cent from October 2009 to $390,074.
Attached property sales in October 2010 totalled 377, a decline of 38.2 per cent compared to the 610 sales in October 2009, and a 68.3 per cent increase from the 224 attached properties sold in October 2008. The benchmark price of an attached unit increased 4 per cent between October 2009 and 2010 to $487,530.
Greater Vancouver home sales have remained steady over the past four months, indicating stability in the residential housing market. With the MLS® sales to active listing inventory ratio indicating a buyers’ market, properties appropriately priced are selling.
According to the MLSLink® Housing Price Index (HPI), the benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 4.6 per cent to $579,349 in October 2010 from $553,702 in October 2009. Since June, however, residential home prices in Greater Vancouver have remained relatively unchanged, declining 0.2 per cent.
“We’ve seen a lot more consistency and less volatility in recent months when it comes to both number of sales and pricing, although it’s important to remember that conditions often vary between communities and neighbourhoods,” Jake Moldowan, Real Estate Board of Greater Vancouver (REBGV) president said.
Looking at transactions, the number of residential property sales in Greater Vancouver totalled 2,337 in October 2010. This represents a 5.3 per cent increase compared to September 2010 and a 36.9 per cent decline from the 3,704 sales in October 2009.
More broadly, last month’s residential sales represent a 71.3 per cent increase over the 1,364 residential sales in October 2008, a 22.8 per cent decline compared to October 2007’s 3,028 sales, and a 14.1 per cent decline compared to the 2,722 sales in October 2006.
“As we enter the final two months of the year, buyer demand is in closer alignment with supply than we’ve seen for most of 2010,” Moldowan said. “Those buying today recognize that they still have a chance to enter the market with near-record low interest rates, while gradual reductions in inventory have eased downward pressure on prices.”
Total active listings on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 14,075, an 8.6 per cent decline from last month and a 16.4 per cent increase from October 2009. New listings for detached, attached and apartment properties declined 25.7 per cent to 3,698 in October 2010 compared to October 2009 when 4,977 new units were listed.
Sales of detached properties in October 2010 reached 976, a decrease of 34.4 per cent from the 1,487 detached sales recorded in October 2009, and a 98 per cent increase from the 493 units sold in October 2008. The benchmark price for detached properties increased 6.3 per cent from October 2009 to $796,883.
Sales of apartment properties reached 984 in October 2010, a decline of 38.8 per cent compared to the 1,607 sales in October 2009, and an increase of 52.1 per cent compared to the 647 sales in October 2008.The benchmark price of an apartment property increased 2.4 per cent from October 2009 to $390,074.
Attached property sales in October 2010 totalled 377, a decline of 38.2 per cent compared to the 610 sales in October 2009, and a 68.3 per cent increase from the 224 attached properties sold in October 2008. The benchmark price of an attached unit increased 4 per cent between October 2009 and 2010 to $487,530.
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