Fabulous harbour views, the entertainer's dream kitchen, and a California style plunge pool and Spa make this stylish Caulfield Rancher a modern West Vancouver masterpiece. Please visit StuBell.com for more information!
Monday, May 18, 2009
NEW Listing! 4221 Rockridge Crescent, West Vancouver
Fabulous harbour views, the entertainer's dream kitchen, and a California style plunge pool and Spa make this stylish Caulfield Rancher a modern West Vancouver masterpiece. Please visit StuBell.com for more information!
New Listing! 4105 St Albans Rd, North Vancouver
Stunning Upper Lonsdale Custom 4,800 sq ft home with unobstructed city views, hot tub, games room, theater room, guest suite, grand master bedroom and bath, and exquisitely detailed kitchen. Visit http://www.StuBell.com for detailed information, images, and more on North Vancouver Real Estate!
Low Interest Rates Revive Real Estate Market!
Low interest rates and easing of prices has breathed some life into Metro Vancouver's rental-apartment real estate market, according to the latest report from a major commercial realtor.
Commercial realtor Avison Young counted 17 sales of rental apartment buildings worth just over $59 million in the first quarter of 2009 compared with 26 sales worth just over $92 million in the first quarter of 2008.
However, Avison Young principal Rob Greer noted that those 17 sales in 2009's first quarter were substantially higher than the seven sales worth almost $30 million recorded in the fourth quarter of 2008.
Greer, in an interview, said that between November of last year and the middle of January was a period where "nothing happened" in the market.
"But we are seeing things start to pick up," Greer said. "What's fueling things is very, very low [mortgage] interest rates, and [capitalization] rates that are now between one and 1 1/2-percentage-points up from where they used to be."
Capitalization rates are reaching the 4.75-per-cent to 5.5-per-cent range, Greer said. A year ago, he added, buyers were accepting capitalization rates, a measure of their return on investment, as low as the low four-per-cent range.
Greer said buyers do have to put more of their own equity into purchases after last fall's tightening of credit markets, but the combination of prices that have come 10 to 20 per cent off their peaks, with low interest rates, have begun to draw buyers into the market.
Many, he added, are private investors who "haven't bought [any apartment buildings] in the past three or four years now getting back into the marketplace because they now have a decent spread between borrowing rates and cap rates, which we haven't seen in a long time."
And Greer said still historically low apartment vacancy rates make apartment buildings more attractive as commercial real-estate investments than office or retail buildings during the current recession.
Commercial realtor Avison Young counted 17 sales of rental apartment buildings worth just over $59 million in the first quarter of 2009 compared with 26 sales worth just over $92 million in the first quarter of 2008.
However, Avison Young principal Rob Greer noted that those 17 sales in 2009's first quarter were substantially higher than the seven sales worth almost $30 million recorded in the fourth quarter of 2008.
Greer, in an interview, said that between November of last year and the middle of January was a period where "nothing happened" in the market.
"But we are seeing things start to pick up," Greer said. "What's fueling things is very, very low [mortgage] interest rates, and [capitalization] rates that are now between one and 1 1/2-percentage-points up from where they used to be."
Capitalization rates are reaching the 4.75-per-cent to 5.5-per-cent range, Greer said. A year ago, he added, buyers were accepting capitalization rates, a measure of their return on investment, as low as the low four-per-cent range.
Greer said buyers do have to put more of their own equity into purchases after last fall's tightening of credit markets, but the combination of prices that have come 10 to 20 per cent off their peaks, with low interest rates, have begun to draw buyers into the market.
Many, he added, are private investors who "haven't bought [any apartment buildings] in the past three or four years now getting back into the marketplace because they now have a decent spread between borrowing rates and cap rates, which we haven't seen in a long time."
And Greer said still historically low apartment vacancy rates make apartment buildings more attractive as commercial real-estate investments than office or retail buildings during the current recession.
Home Prices Forcast Improves!
Home prices will drop less than expected, real estate group says
By Derrick Penner, Vancouver SunMay 15, 2009
A recent surge in real estate sales has caused the Canadian Real Estate Association to sharply revise its expectations for price drops in British Columbia.
CREA, in its forecast released Thursday, estimated that B.C.'s average price will drop less than seven per cent over 2009, more than three percentage points off the 10.6-per-cent drop forecast in February.
CREA forecast that B.C.'s average price will drop to $423,300, instead of the $406,300 average it forecast earlier.
For 2010, CREA is now predicting that B.C. prices will start edging up again by almost two per cent compared with a 2010 drop of 0.6 per cent written into the February forecast.
"Monthly resale housing activity improved as the first quarter progressed," Gregory Klump, CREA's chief economist, said in a news release, "entering the second quarter on a rising trend [that is] closing in on levels last seen before [the sales trend] fell sharply late last year."
B.C. sales rose in April from the previous month, the B.C. Real Estate Association said Thursday in a news release, as buyers were drawn back into the market by lower prices and rock-bottom mortgage rates. And the inventory of unsold homes across the province dropped to the lowest level in 12 months, the association said, edging the ratio of sales to active listings close to the zone housing economists consider balanced between buyers and sellers.
"An increase in consumer demand combined with fewer homes for sale has trended the market near balanced conditions," Cameron Muir, chief economist for the B.C. Real Estate Association said in an interview.
Realtors counted 6,918 sales through the Multiple Listing Service in April, down 20 per cent from the same month a year ago. April was the third straight month that sales were higher than the previous month. However, to the end of the first four months, sales were still lower than a year ago with realtors counting 18,089 sales, a 35-per-cent reduction over the first four months of 2008.
The average house price across B.C. was $433,246 over the first four months, down almost nine per cent from a year ago.
By Derrick Penner, Vancouver SunMay 15, 2009
A recent surge in real estate sales has caused the Canadian Real Estate Association to sharply revise its expectations for price drops in British Columbia.
CREA, in its forecast released Thursday, estimated that B.C.'s average price will drop less than seven per cent over 2009, more than three percentage points off the 10.6-per-cent drop forecast in February.
CREA forecast that B.C.'s average price will drop to $423,300, instead of the $406,300 average it forecast earlier.
For 2010, CREA is now predicting that B.C. prices will start edging up again by almost two per cent compared with a 2010 drop of 0.6 per cent written into the February forecast.
"Monthly resale housing activity improved as the first quarter progressed," Gregory Klump, CREA's chief economist, said in a news release, "entering the second quarter on a rising trend [that is] closing in on levels last seen before [the sales trend] fell sharply late last year."
B.C. sales rose in April from the previous month, the B.C. Real Estate Association said Thursday in a news release, as buyers were drawn back into the market by lower prices and rock-bottom mortgage rates. And the inventory of unsold homes across the province dropped to the lowest level in 12 months, the association said, edging the ratio of sales to active listings close to the zone housing economists consider balanced between buyers and sellers.
"An increase in consumer demand combined with fewer homes for sale has trended the market near balanced conditions," Cameron Muir, chief economist for the B.C. Real Estate Association said in an interview.
Realtors counted 6,918 sales through the Multiple Listing Service in April, down 20 per cent from the same month a year ago. April was the third straight month that sales were higher than the previous month. However, to the end of the first four months, sales were still lower than a year ago with realtors counting 18,089 sales, a 35-per-cent reduction over the first four months of 2008.
The average house price across B.C. was $433,246 over the first four months, down almost nine per cent from a year ago.
2008 Rental Market Review
Vancouver’s real estate market got a little tougher for renters in 2008 as prices continued to rise and the vacancy rate dropped even further.
According to the latest Canada Mortgage and Housing Corporation Rental Market Report for Vancouver, the region’s vacancy rate fell from 0.7 to 0.5 per cent this year, while the cost of an average apartment jumped from $898 to $937.
“It’s obvious by the statistics that renters are continuing to get squeezed,” says Renters at Risk co-founder Sharon Isaak. “Rents are going up and availability is still a problem. The pressure is not easing for renters at all.”
The report says the strong pressure for rental housing was caused by an influx in migration to the region, a low unemployment rate and the high cost of home ownership. Along with Victoria (also at 0.5 per cent) Vancouver has one of the lowest vacancy rates in the country, with Kelowna leading the way at 0.3 per cent.
While the province’s Residential Tenancy Act kept landlords from raising rents more than 3.7 per cent to existing renters, rents still managed to rise four per cent in 2008. The report says rents increased higher than the legislated rate because of “major renovations performed on rental properties, and the increasing of monthly rents through unit turnover.”
Tenant advocacy groups have been calling on the provincial government for the past few years to close a loophole in the RTA that allows landlords to evict tenants for renovations and then raise rents to whatever they wish. Vision Vancouver Councillor Tim Stevenson is scheduled to put forward a motion at next Tuesday’s council meeting that would call on the province to change the RTA so tenants can reoccupy renovated suites at the same rent.
However, landlord groups have argued that closing the loophole will mean building owners stop making renovations, which will cause their buildings to become “slums."
Although the CMHC report predicts slower economic growth is expected to “ease” the pressure on the rental market next year, it still forecasts that Vancouver’s vacancy rate will remain below one per cent and that rental rates will rise another three to five per cent.
According to the latest Canada Mortgage and Housing Corporation Rental Market Report for Vancouver, the region’s vacancy rate fell from 0.7 to 0.5 per cent this year, while the cost of an average apartment jumped from $898 to $937.
“It’s obvious by the statistics that renters are continuing to get squeezed,” says Renters at Risk co-founder Sharon Isaak. “Rents are going up and availability is still a problem. The pressure is not easing for renters at all.”
The report says the strong pressure for rental housing was caused by an influx in migration to the region, a low unemployment rate and the high cost of home ownership. Along with Victoria (also at 0.5 per cent) Vancouver has one of the lowest vacancy rates in the country, with Kelowna leading the way at 0.3 per cent.
While the province’s Residential Tenancy Act kept landlords from raising rents more than 3.7 per cent to existing renters, rents still managed to rise four per cent in 2008. The report says rents increased higher than the legislated rate because of “major renovations performed on rental properties, and the increasing of monthly rents through unit turnover.”
Tenant advocacy groups have been calling on the provincial government for the past few years to close a loophole in the RTA that allows landlords to evict tenants for renovations and then raise rents to whatever they wish. Vision Vancouver Councillor Tim Stevenson is scheduled to put forward a motion at next Tuesday’s council meeting that would call on the province to change the RTA so tenants can reoccupy renovated suites at the same rent.
However, landlord groups have argued that closing the loophole will mean building owners stop making renovations, which will cause their buildings to become “slums."
Although the CMHC report predicts slower economic growth is expected to “ease” the pressure on the rental market next year, it still forecasts that Vancouver’s vacancy rate will remain below one per cent and that rental rates will rise another three to five per cent.
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