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.

Merry Christmas! Buyers get Agressive, Sellers be Patient!

Merry Christmas & Happy Holidays from mine to yours! The Christmas Holidays is an excellent time to spend with family, exchange gifts with loved ones, feast on turkey with all the fixings, and head up to Whistler to shred the slopes, but what about Real Estate?

I have received a few inquiries from clients interested in listing this December, and I have told them all the same thing, wait until the 1st or second week of January 2011. I strongly believe the first week of a listing is a critical period. In the first week all Buyers who have been searching and waiting for a property like yours with come to your open houses and request showings to view the property. If you are listed at the right price and your home is staged and shows well, then often in this first week you will receive a very good offer or ideally, multiple offers and sell for over asking. Therefor, December, when Buyers focus on their Christmas lists and entertaining guests, is not a good time to list as your critical first few weeks are compromised and when January comes around Buyers tend to jump on the New Listings while yours may appear as a dead listing with people skipping or driving by it with the assumption it hasn't sold for a reason.

As for listings that haven't sold, I would say it is personal preference to take off the market for Christmas or not. There is a benefit to canceling and re-lisintg in January as it will appear like a fresh listing and catch more eyes, but you also risk missing out on a motivated Buyer over the Holiday Season. I would cancel on Christmas Eve and re-list on the first Monday of 2011.

The other side of the game is the Buyers. There are a couple of reasons why I believe December to be a great time to write offers. Often Sellers who are listed at this time are motivated for a variety of reasons, and the thought of getting the sale over with before Christmas and New Years is very attractive. Often Sellers may need to close before year end for financial reasons. Another factor is uncertainty of the market in the New Year as December is often slow and Sellers can feel pressured to sell fearing a downturn or a slowstart to 2011. The final reason is the less likelihood for competing offers. A Buyer has a lot of power in a negotiation until another Buyer enters into the picture. Buyers, like Sellers, are busy during the Holidays and often wait until January when their lives ate less hectic and when product will undoubtedly come on the market. If you are a qualified Buyer who sees something you like then December may be the time to get an extra discount in a non-competitive situation. If you don't see the right place, then by all means wait until January and in the meantime meet with your mortgage broker to get pre-approved so you can win you dream home if a multiple offer scenario unfolds.

For all you Vancouver Real Estate inquiries please contact me anytime at 604.562.0532 or write me at stu@stubell.com.

Happy New Year Vancouver! Lets make 2011 unforgettable!

Trip to Seattle for Zags Basketball & to Study Local Real Estate Market

This past weekend I drove down to Seattle, Washington to watch my Cinderella Zags Basketabll team take on the fighting Illini. I spent the first 2 years of my University life in Spokane, playing golf for the Zags. Gonzaga is a Jesuit University with just 5000 students, an excellent academic and sports tradition, and a sister school located in Bologne, Italy. My love for Vancouver and desire to work in Real Estate brought me back to UBC to graduate from the Urban Land Economics program under Tsur Sommerville and the Commerce department. I feel blessed to have experienced 2 totally different and prestigious Universities.

Seattle is an interesting city as it is very similar to Vancouver with major ports and a very livable city center with state-of-the-art sports facilities and architectural pleasing high rises mixed with charming historical districts. I wanted to see how prices compare to Vancouver, especially after going to Arizona and Nevada where there are thousands of foreclosures and prices have plummeted.

In the attached high end, a 6000 sq ft Penthouse at the new TEN12First hotel in downtown Seattle is asking $15,600,000. In Vancouver the 41st floor of the Shaw Tower is for sale for $12,880,000. Not bad for 7500 sq ft of single level living with 8 parking stalls and jaw-dropping panoramic views!

On the attached low end, a 3 bedroom, 2 bath town-home with private garage, 1200 sq ft short sale (foreclosure) is asking $94,000. Comparatively, a 3 bed 2 bath town-home of the same age in Vancouver would go for $550,000.

For $28,800,000 you can own 14000 sq ft of Mercer Island Waterfront on a 70,000 sq ft property. In West Vancouver a 7000 sq ft Waterfront Home on a 30,000 sq ft Lot if asking $19,800,000.

Needless to say the US recession and housing crisis has affected Seattle, but not to the extremes of Arizona or Nevada. I feel there are great investment opportunities in Seattle, but would probably look to invest in California first, where comparable prices get you sea side homes in desirable communities such as San Diego.

I stayed with my good friend BJ who recently purchase a 5 bedroom, 3 bathroom home in Seattle for $550,000. It is a heritage home that was completely renovated and he picked it up as a foreclosure. He now lives with 4 friends, all GU allumni, and his mortgage is comfortably covered by the house mates. This is very smart money management for a young adult, and the same opportunity exists in Vancouver because our rents are so much higher. If you are in your 20's and have the money for a down-payment, consider this option over a condo or apartment. With the income from housemates, you can afford a house with a yard, a mailbox, a garage, and probably a much better capital gain as the appreciation will be more substantial and you will be paying your principle down faster. A comparable house to BJ's in North Vancouver would be about $700-$800,000.

If you have any questions about Vancouver Real Estate or US Real Estate Investment please feel free to contact me by phone at 604.562.0532 or by email at stu@stubell.com.

November 2010 GVRD Real Estate Stats

December 2, 2010
November Stats MLS® stats show more sales, fewer property listings in November Greater Vancouver residential home sales improved in November compared to the previous four months, with the number of sales posted on the Multiple Listing Service® (MLS®) coming in slightly higher than the 10-year average for that month. The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,509 in November 2010. This represents a 7.4 per cent increase compared to October 2010 and an 18.6 per cent decline from the 3,083 sales in November 2009. Looking back further, last month’s residential sales represent a 187.1 per cent increase over the 874 residential sales in November 2008, a 13 per cent decline compared to November 2007’s 2,883 sales, and a 6.4 per cent increase compared to the 2,358 sales in November 2006. “Housing sales numbers were fairly typical for a November and indicate a fairly balanced market. Activity on the buyer side has been stable, with slight increases, over the last few months while the number of homes listed for sale in our region has declined each month since we reached a peak in June,” Jake Moldowan, REBGV president said. Total active residential property listings in Greater Vancouver currently sit at 12,384, a 12.1 per cent decline from last month and a 12 per cent increase from November 2009. New listings for detached, attached and apartment properties declined 17.1 per cent to 3,030 in November 2010 compared to November 2009 when 3,653 new units were listed. “Home values have been relatively stable over the last five months compared to the summer period when we were seeing some downward pressure on prices,” Moldowan said. “It’s the homes priced accurately for today’s market that are receiving a lot of attention and selling right now.” The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 4.1 per cent to $580,080 in November 2010 from $557,384 in November 2009. This price has remained virtually unchanged since June of this year. Sales of detached properties on the MLS® in November 2010 reached 1,050, a decrease of 9.8 per cent from the 1,164 detached sales recorded in November 2009, and a 226.1 per cent increase from the 322 units sold in November 2008. The benchmark price for detached properties increased 5.6 per cent from November 2009 to $799,312. Sales of apartment properties reached 1,052 in November 2010, a decline of 24.6 per cent compared to the 1,396 sales in November 2009, and an increase of 156.6 per cent compared to the 410 sales in November 2008.The benchmark price of an apartment property increased 1.9 per cent from November 2009 to $389,168. Attached property sales in November 2010 totalled 407, a decline of 22.2 per cent compared to the 523 sales in November 2009, and a 186.6 per cent increase from the 142 attached properties sold in November 2008. The benchmark price of an attached unit increased 4.1 per cent between November 2009 and 2010 to $488,733. The Market is stable as a whole, but one particular sub market has been red hot, detached properties in Vancouver's West Side. Driven by Chinese Buyers investing in second homes abroad as the Chinese government  gives incentives to do this and the Canadian government has recently relaxed immigration laws allowing a flood of Chinese Home Buyers into the market. Thus far, they have focused on Richmond (proximity to Airport and rich chinese culture) and Vancouver West Side (Proximity and reputation as Vancouver's wealthy and historic suburb). Prices in the West Side are up 20-30% with the average home vale in the $1.8's. Comparatively, West Vancouver has been seeing slower activity and the average detached home price is in the $1.5's. If you have any questions regarding Vancouver, North Vancouver, or West Vancouver Real Estate please call me at 604.562.0532 or write me at stu@stubell.com.   Download the complete stats package by clicking here.

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.

http://www.vancouversun.com/business/Dream+home+ownership+gets+easier+report+says/3903920/story.html

The 2010 Vancouver Real Estate Market Recovery

2010 Greater Vancouver Real Estate Sales Graph. 

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.

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!

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.

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.

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.

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.

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.