Vancouver's High End Real Estate is Red Hot with Multiple Offers

Chinese Investors continue to write way Over Asking in Multiple Offer Scenarios

Chinese Buyers continue to bid up price wars in Vancouver, primarily on high end residential detached homes. In the past 2 days, 47 sales over $1 million were recorded, 16 of which sold for over asking, some as much as $550,000, or 33% over asking price, often $500-$600,000 over tax/assessed values.

The hottest region is Vancouver West but savvy Buyers are coming over to the Northshore quickly, where comparable product is selling for half the price.

If you are in the market for a house in this price range or market, be prepared with a great Realtor who is on top of the market and willing to go the extra mile for ie door knocking or mailouts, and get your financing approved and bring an inspector to first showings as cash offers are now the norm. If you can, you may want to wait until this cools off, or look at a slower market such as West Vancouver or North Vancouver before they heat up.

The Apartment market in Vancouver and The Northshore is very strong with good product selling within a week as the supply is very low. We are not seeing the multiple offers as much, but in a busy market like this is critical to stay on top of daily new listings.

As a Seller, make sure your Realtor is on top of this surge, because if you price on last years comps, you could sell for $500,000 less than todays market is willing to pay.

If you have any questions about Vancouver Real Estate please write or call me and it would be my pleasure to help.

604.562.0532
stu@stubell.com

January 2011 Greater Vancouver Real Estate Stats

Vancouver Real Estate January Stats

Stability and regional ‘hot spots’ characterize January housing market

The Greater Vancouver housing market remained in balanced market conditions in January, although higher levels of buyer demand were seen in some of the region’s largest communities.

The number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) last month outpaced the 10-year average in both categories for January.

“There was a healthy balance between the number of home buyers and sellers in our market in January, but there’s always variation in activity from region to region,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). "We’re seeing strong sellers’ market conditions in areas like Richmond and the west side of Vancouver.”

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price of detached homes increased 22.6 per cent in Richmond and 12.2 per cent in Vancouver West. In comparison, detached home prices across the region increased 2.7 per cent over the same period.

“When you’re looking to buy or sell a home, it’s important to familiarize yourself with the wider trends in the market. It’s equally important to seek out knowledge of your local area so you understand current market conditions in your neighbourhood,” Moldowan said

Looking across the region, the REBGV reports that residential property sales in Greater Vancouver reached 1,819 on the MLS® in January 2011. This represents a 4.2 per cent decline compared to the 1,899 sales recorded in December 2010, a decrease of 5.4 per cent compared to the 1,923 sales in January 2010 and a 138.7 per cent increase from the 762 home sales in January 2009.

From a historical perspective, January’s 1,819 homes sales slightly surpassed the 1,790 home sale average recorded in the region over the last ten years.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,801 in January 2011. This represents a 6.7 per cent decrease compared to January 2010 when 5,147 properties were listed, and a 182 per cent increase compared to December 2010 when 1,699 homes were added to the MLS® in Greater Vancouver.

At 10,438, the total number of residential property listings on the MLS® increased 5.8 per cent in January compared to last month and increased 2.2 per cent from this time last year.

Sales of detached properties on the MLS® in January 2011 reached 793, an increase of 12.5 per cent from the 705 detached sales recorded in January 2010, and a 171.6 per cent increase from the 292 units sold in January 2009. The benchmark price for detached properties increased 2.7 per cent from January 2010 to $810,045.

Sales of apartment properties reached 713 in January 2011, a decline of 20.8 per cent compared to the 891 sales in January 2010, and an increase of 97.5 per cent compared to the 361 sales in January 2009.The benchmark price of an apartment property increased 1.4 per cent from January 2010 to $390,935.

Attached property sales in January 2011 totalled 313, a decline of 4.3 per cent compared to the 327 sales in January 2010, and a 187.2 per cent increase from the 109 attached properties sold in January 2009. The benchmark price of an attached unit increased 2.6 per cent between January 2010 and 2011 to $495,140.


If you have any questions about buying or selling Real Estate in Vancouver contact Stu Bell anytime.

HST REBATE BREAKDOWN in BC

HARMONIZED SALES TAX & HOW IT APPLIES TO RESIDENTIAL REAL ESTATE by Stu Bell

Goods and Services Tax (“G.S.T.”) for a single sales tax rate of 12%.On July 23, 2009, British Columbia announced it implemented Harmonized Sales Tax (“H.S.T.”) for B.C. effective July 1, 2010. The H.S.T. is a combination of the 7% Provincial Sales Tax (“P.S.T.”) with the 5% federal.

For consumers, goods and services (with some exceptions) is subject to the H.S.T. in the same manner as they are currently subject to GST. This applies to real estate as well.

For both used and new homes, there are some extra costs for buyers or sellers but these are for the services required to buy or sell, not on the price of the home.

Buyers of used residential real estate can expect to pay H.S.T. on items such as home inspectors, appraisals and other such services. Lawyer fees will not change as they have been forced to charge P.S.T. for years.

Sellers of used residential real estate can expect to pay H.S.T. on realtor commissions, and any other services they may use.

H.S.T. has different implications for used residential real estate and new residential real estate. There are also different rules for commercial properties, mobile homes and other types of real estate. Below is an explanation ofeach situation.

USED RESIDENTIAL REAL ESTATE

There is no H.S.T. on the price of used residential real estate, much like the current rules regarding G.S.T. There are

no extra closing costs on the purchase or sale of a used residential house, subject to the comments above.

NEW HOUSING

H.S.T. will be payable on the sale of new or substantially renovated homes, where the Contract of Purchase and

Sale was entered into after November 18, 2009 and both ownership and possession of the home is transferred after

June, 2010. H.S.T. will not be payable on sales of newly constructed or substantially renovated homes where

ownership or possession of the home is transferred before July 2010, or where the Contract of Purchase and Sale is

dated prior to November 18, 2009.

New Housing Rebate

The Provincial Government is proposing a New Housing Rebate (“the Rebate”) to ensure that purchasers of homes

priced up to $525,000 would pay no more tax, on average, than under the current P.S.T.

The Rebate is 71.43% of the provincial component of the H.S.T. paid, up to a maximum of $26,250.00.

To illustrate this, let’s assume a purchaser is purchasing a new home for $500,000.00.

The old GST tax would be $25,000, now with the 12% HST and the appropriate HST rebate the total tax is $35,000.


Note that in the above example the purchaser is paying about $10,000 more with the H.S.T.

Note also that the maximum rebate is $26,250.00 and all purchase prices will get the $26,500 HST rebate back. However, the extra tax will increase dramatically for homes over $525,000.00. Consider the following example for a home priced at $900,000.00. Total taxes with HST = $81,750 vs $45,000 before with GST.

2% more than under the current G.S.T.

The government states that while sales of new homes in B.C. are not directly subject to the P.S.T., building materials used in the construction of homes are subject to the 7% P.S.T. The total amount of P.S.T., on average, embedded in the selling price of a new home is estimated to be equal to two percent. As a result, the government claims that purchasers of homes priced up to $525,000 would pay no more tax, on average, than under the current P.S.T. This of course assumes that the price of homes drop 2% due to the elimination of P.S.T. on building supplies.

The new housing rebates would be federally administered in a manner similar to the G.S.T. rebates for new housing.Using the above example, the purchaser of a new home priced at $900,000 will pay an additional $36,750.00 with H.S.T.

Individuals would be able to file an application for the rebate directly with the Canada Revenue Agency. However, in the case of homes sold by the builder, similar to the G.S.T. new housing rebates, the builder would have the option of paying or crediting the new housing rebate to the purchaser at the time of purchase.

More clarification for you on the HST rebate. There is also a federal rebate for GST but it is only available to a maximum of 450k.

• Resale homes are exempt from the 5% GST.
• New homes are subject to the 5% GST. New home buyers can apply for a rebate of the 5% GST applicable to the purchase price to a maximum of $8,750 for homes costing less than $350,000 before GST.
• For new homes priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately.
• New homes priced at $450,000 or higher (before GST) would not receive a rebate.

To calculate the total taxes on a purchase you are considering open this link:


http://www.rodfriesen.com/hst-rebate-calculator.html?fmv=265000&newhome=Yes&firstbuyer=No


If you have any questions about Vancouver Real Estate please feel free to contact me anytime at 604.562.0532 or write stu@stubell.com.

Vancouver 2011 Real Estate Market starts with Mupltiple Offers

Vancouver Real Estate Market starts 2011 with Bidding Wars

By

Kris Cyganiak

– January 25, 2011

While some parts of Canada have seen their real estate markets continue to feel a winter chill as they started 2011, things appear to be heating up in Vancouver, BC.
After ringing in the New Year, January has surprised even many long time industry professionals with a raft of multiple offer scenarios in many parts of the city. You do not have to look hard to find some of these sales.
Vancouver realtor Stu Bell said that on January 19, 2011 there were, “84 New Listings and 46 Sales in Vancouver West, West Vancouver and North Vancouver. Seven homes sold for over asking. One sold for $220,000 over the asking price.”
This means that almost 15% of the homes sold on that day were all above the asking price in those areas.
On January 21, 2011 News 1130 reported, “One house near 20th and Laurel has just sold for over $500,000 the asking price,” on Vancouver’s Westside.

Listing agent Nick Calageros says the response to the listing was a little surprising, especially since the house is a tear-down. “About 200 people came through the open house. I mean there was a lineup down the stairs, down the walkway, onto the sidewalk and around the corner.’
He says the owners got thirty offers the next day and the house sold for $1,611,000.

The original asking price for the 20th and Laurel property in South Cambie was $1,088,000. That sale represented almost a 50% markup from the asking price.
Global TV reported that the following week another home across the street sold for $1,350,000. Again there were multiple offers and again it sold for above asking price. In this case $262,000 or 24% above the asking price.
So what could be driving this?
The Globe and Mail previously reported:

It might be unbelievable to Vancouverites who’ve long been priced out of the high-end market, but to newly wealthy Chinese, Vancouver is still relatively cheap.
“Many wealthy Chinese believe property is the safest way for investment, and the properties in Vancouver are not particularly expensive compared to the price in major cities in China, such as Shanghai or Beijing,” said Mr. Vincent Chen of Visas Consulting Group, one of the largest immigration consulting firms in China.
Chen says more than 3,000 Chinese families migrate to Canada under the business category every year.

The Chinese influence on Vancouver real estate has been a huge factor in the substantial home values increases since the turn of the new millennium. However, in the past 6-8 months the number of Chinese home buyers coming from mainland China and Hong Kong has intensified and boosted some home prices by up to 50% in the past 2 years, with their focus being on Richmond, Vancouver’s Westside, and now West Vancouver.
The average detached home price in Vancouver’s West Side is $1,698,925, up 46% in two years from the January 2009 figure of $1,165,007. There have been many cases of homes in communities such as Point Grey, Kitsilano, Dunbar, and Shaughnessy listing and selling within days for $300,000 or 25% over asking price in some multiple offer scenarios.

Stu Bell named 2010 Top Producer at Prudential Sussex Realty!

I would like to thank my clients for making 2010 an unforgettable one, and for helping me reach my goal of Top Producer in The Prudential Sussex Realty West Vancouver Office, the #1 Office in Canada.

I am looking forward to 2011 and climbing further up the list of Top Producers. I am proud to work in an industry leading office with the best realtors and staff in the business.

Thank You.

New Mortgage Rules Now Official

Tougher Lending in Canada

Effective March 18, 2011, it will become harder to buy a new home or consolidate debt into your mortgage.
That's due to three new changes announced today by Finance Minister Jim Flaherty:

1. A 30-year maximum amortization on insured mortgages over 80% LTV
2. An 85% LTV limit on insured refinances
3. Elimination of government insurance on secured lines of credit (aka., HELOCs)

Flaherty says these regulations are meant to "(encourage) hard-working Canadian families to save by investing in their homes and future."

Here is the full press release:http://www.fin.gc.ca/n11/11-003-eng.asp

How will this affect the market and you?

It should stabilize prices and further prevent an over lending disaster like in the US. It will keep more highly leveraged speculators out of the market. It should keep rates lower because if rates increase and 30 year amortizations are all Buyers are allowed with less than 20% down, affordability for Canadians will become an issue.

Personally I am in favor of tougher lending laws as it protects home owners against a price crash and it protects Buyers from prices soaring beyond reason.

I believe strongly in the appreciation of the Vancouver Real Estate Market and fear Vancouverites will get priced out of the armlet as investors prey on lucrative rent/vacancy rates. I think lower monthly payments can be beneficial to first timers and locals, so I would encourage Buyers to make their move before the new law so they at least have the option of a 35 year amortization. Any Accepted and Firm offer dated before March 18th 2011 will still be eligible for 35 years amortizations.

The Canadian Real Estate Market is already very leverage today, hence the all time high prices, so slightly less leveraged prices should be good for the overall economics of the Real Estate Market.

Write stu@stubell.com with all questions, or call me anytime at 604.562.0532.

2011 BC Assessments Have Been Released

This January 2011, homeowners across the Lower Mainland and BC received their 2011 Property Assessment Notice.


In General, Assessment Values increased and the total assessed value increased 8%. In West Vancouver the increase was 13.03%, slightly ahead of 12.71% in Vancouver, 8.84% in the District of North Vancouver and 8.05% in the City of North Vancouver.


The largest increase in the Lower Mainland was Richmond at 17.04%.

The assessments are based on a market value approach with a valuation date of July 1, 2010. The figures are based on sales in a property owner’s area from January 1, 2010 to October 31, 2010.


The highest increase was in Mackenzie, BC at 21.25% and the largest decline was in Gold River at -8%.


Recreational Property of particular interest was a 2% decline in Whistler and no change in Kelowna.


Homeowners must remember that an increase in assessed value does not necessarily mean an increase in Taxes, you have to check to see if the Tax rate in your municipality has changed or if it is the same as 2010, the BC Assessment Authority has nothing to do with tax rates.


For the first time in British Columbia’s history, the value of all real estate on the annual provincial assessment roll has surpassed $1.0 trillion.


The actual (total) value of the 2011 assessment roll is $1,043,127,129,141 a increase of eight per cent over the 2010 roll total value of $970 billion.


BC Assessment is sending 2,066,261 assessment notices to British Columbia property owners, an increase of 5.5 per cent from last year’s total of 1,957,440. (Note: Several properties have multiple owners who may each receive an assessment notice.)


If you disagree with your property assessment you can dispute and get a re-assessment http://www.cd.gov.bc.ca/parp.


If you have any questions please feel free to contact Stu Bell anytime at 604.562.0532 or write me a stu@stubell.com.

December 2010 Greater Vancouver Real Estate Stats

January 5, 2011
December Stats Real estate market stable at year-end The Greater Vancouver residential housing market entered three distinctive phases in 2010. Continued buoyancy from the post-recession recovery began the year, followed by a summer lull and, throughout the fall, a sustained period of stability. The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2010 reached 30,595, a 14.2 per cent decrease from the 35,669 sales recorded in 2009, but a 24.2 per cent increase from the 24,626 residential sales in 2008. Last year’s number of housing sales was 10.3 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region. The number of residential properties listed for sale on the MLS® in Greater Vancouver increased 9.7 per cent in 2010 to 58,009 compared to the 52,869 properties listed in 2009. Compared to 2008, last year’s total represents a 7.3 per cent decline compared to the 62,561 residential properties listed in 2008. The number of properties added to the MLS® peaked in April and generally declined for the remainder of the year. “The last two years have been a bit of a rollercoaster for the real estate market. However, sales over the past six months have definitely shown a trend toward stability. We think that’s good news for home buyers and sellers,” Jake Moldowan, REBGV president said. “The Greater Vancouver housing market experienced a modest increase in home prices in 2010, and a continual decrease in the number of properties being listed for sale.” Residential property sales in Greater Vancouver totalled 1,899 in December 2010, a decrease of 24.5 per cent from the 2,515 sales recorded in December 2009—an all time record for the month—and a 24.3 per cent decline compared to November 2010 when 2,509 home sales occurred.  More broadly, last month’s residential sales represent a 105.5 per cent increase over the 924 residential sales in December 2008, a 0.1 per cent increase compared to December 2007’s 1,897 sales, and a 12.6 per cent increase compared to the 1,686 sales in December 2006. The residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 2.7 per cent to $577,808 between Decembers 2009 and 2010. However, prices have decreased 2.6 per cent since hitting a peak of $593,419 in April 2010. “Although we saw some pressure on home prices throughout the year, home values in 2010 remained relatively steady in the region compared to the last few years when we witnessed much more fluctuation,” Moldowan said. New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,699 in December 2010. This represents a 21.1 per cent decline compared to the 2,153 units listed in December 2009 and a 43.9 per cent decline compared to November 2010 when 3,030 properties were listed. Sales of detached properties in December 2010 reached 769, a decrease of 14.8 per cent from the 902 detached sales recorded in December 2009, and a 121.1 per cent increase from the 348 units sold in December 2008. The benchmark price for detached properties increased 4.0 per cent from December 2009 to $797,868. Sales of apartment properties reached 811 in December 2010, a decline of 29.7 per cent compared to the 1,154 sales in December 2009, and an increase of 94.5 per cent compared to the 417 sales in December 2008.The benchmark price of an apartment property increased 1.2 per cent from December 2009 to $387,115. Attached property sales in December 2010 totalled 319, a decline of 30.5 per cent compared to the 459 sales in December 2009, and a 100.6 per cent increase from the 159 attached properties sold in December 2008. The benchmark price of an attached unit increased 2.7 per cent between December 2009 and 2010 to $490,869. Download the complete stats package by clicking here. Follow the Board's social media sites on Twitter and Facebook!

Chinese Home Buyers Driving Vancouver Real Estate Market

Chinese Home Buyers in Vancouver, British Columbia

Vancouver BC has seen a decade of Real Estate Price appreciation and new Development. The price of Multi-million dollar estates, state-of-the-art Downtown Luxury Penthouses, and Waterfront Dream Homes have risen dramatically in the past 10 years. Some people call it a Real Estate Bubble, I like to call it Sustainable Demand for arguably the Best City in the World.

The Buzz for Vancouver must be experienced first hand to truly appreciate. In the winter gorgeous snow-capped mountains tower over the Northshore, and in the summer the beaches and the marinas are flooded with activity. A global selection of fine restaurants, excellent shopping, World-Class outdoor activities such as golf, skiing, and boating, and a thriving City Center filled with entertainment keeps Vancouverites alive and active.

The Chinese influence on Real Estate has been a factor in the increase in Vancouver Home Values since the turn of the new millennium, but in the past 6-8 months the number of Chinese Home Buyers coming from Mainland China and Hong Kong has intensified and boosted Home Prices by up to 50% in the past 2 years, with their focus being on Richmond, Vancouver's West Side, and now West Vancouver.

Vancouver West Side is a very prestigious part of Vancouver with excellent schools and safe neighborhoods. It has also been the hottest Real Estate in Vancouver and driven by offshore Chinese Buyers and Investors. Since August 2009, Chinese Real Estate Companies have been arranging tours of Chinese Buyers coming to Vancouver for a few days and often buying multiple properties with cash offers. The average detached Home Price in Vancouver's West Side is $1,698,925, up 46% from January 2009 of $1,165,007. There have been many cases of homes in communities such as Point Grey, Kitsilano, Dunbar, and Shaughnessy listing and selling within days for $300,000 or 25% over asking when a multiple offer scenario arises.

Richmond, BC is also a very popular suburb for Chinese immigrants and investors. Richmond has the finest Chinese Restaurants, Grocery Stores, and amenities, as well as a close proximity to YVR Airport with non-stop flights to China daily. Since January 2009 detached home prices have risen 33% to $920,410. The New Canad Line has made Richmond very accessible to and from Downtown Vancouver by Subway/Sky-train. The negatives are the flat landscape as it is built on deposits from the Fraser River and could be susceptible to flooding, and then the proximity to Vancouver.

West Vancouver is a luxurious, family-orientated community on The Northshore of Vancouver accessible by the Lions Gate Bridge and the Second Narrows Bridge. Home to some of Canada's most spectacular Real Estate. A sliver of paradise nestled between ocean and mountains boasting beaches, spectacular southern views, and first-class schools, parks, and amenities. Home values here took a big hit after the 2007 recession, and have recovered the slowest, presenting an excellent investment opportunity as demand, quality, and prestige remain high. The average detached home in West Vancouver is now $1,420,220, a 21.5% increase from January 2008 but still lower than the September 2007 average of $1,463,554. With the opening of a new T&T Chinese Supermarket at Park Royal in West Vancouver and the realization of how much more Real Estate Home Buyers can get for their Dollar in West Vancouver, Chinese Buyers are beginning to focus on West Vancouver.

While Richmond, Vancouver West, and West Vancouver are all safe Real Estate Investments, in 2011 I think the Detached Home market in West Vancouver is the Best investment. West Vancouver has not seen the steep increase that The Vancouver West Side has and could be due for another hot market as all signs indicate and new Chinese Buyers are exploring the communities of West Vancouver. Canada's stable banking system makes a US type over-lending disaster impossible, our rich natural resources are increasing wealth and interest in British Columbia, Canada's safe and desirable multi-cultural lifestyle, the superb educational system from Elementary to University, and the fresh and mild climate make Vancouver one of the most sought after and highly demanded Global Cities Worldwide. Continually ranked and voted #1 Livable City in the World, and still relatively inexpensive compared to other global cities, the future is bright for Vancouver.