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MARKET REPORT:

The latest Real Estate Board of Greater Vancouver statistics confirm that we are in a transitional market, with sales down 30% from this time last year and 29% below the 10-year average. With fewer buyers active in today’s market, we’re seeing less upward pressure on home prices across the region. This is most pronounced in the detached home market, but demand in the townhome and condo markets is also relenting from the more frenetic pace experienced over the last few years.

On the Westside, detached home prices are down between 10-15% from the high water mark of July 2017, with a sales-to-active ratio of just 6.6%, firmly in buyer’s market territory. Houses priced over $3.5M are most affected by the shifting tides, with buyers in the driver’s seat. Condos and townhomes have been less affected so far, with average prices still up between 5-10% from where they were a year ago, although month-over-month we’re starting to see some slippage – reinforcing the transitional nature of the market. Sales-to-active ratios for strata housing is trending towards balanced market territory, with condos at 24% and townhomes at 19%. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

On the Eastside we’re seeing a similar pattern, although lower prices have mitigated the impact, so far. Year-over-year, detached homes on the Eastside are down about 2%, with the current sales-to-active ratio at 8%. Average condo and townhome prices are up 8.4% and 4.4% respectively, although we have seen recent month-to-month declines in all housing types here too. Sales-to-active ratios for Eastside condos are currently at 35%, and at 22% for Eastside townhomes.

Both buyers and sellers seem to be in a wait and see mode, with sellers largely unwilling to relinquish paper gains and buyers reluctant to overpay in anticipation of a further softening in the market. We’ve seen this pattern before, most recently after the BC Liberals announced the introduction of the Foreign Buyer’s Tax in July 2016. Six months passed before sales started to pick up, and prices followed suit shortly thereafter. This time feels different. The combination of new legislation introduced by the NDP government in February, the tightening of mortgage qualification rules by the federal government in January, and rising interest rates have all put the brakes on the market. Possibly the greatest impact has been to chase the speculators from the market, leaving those who actually need housing to be the primary purchasers. In spite of some uncertainty as to what happens next, this can only be a good thing in the longer term.

As always, there are opportunities in any market.

For sellers, it is important to be priced competitively, and to have a professional high quality marketing plan to ensure that your property is a prospective buyer’s first choice. Having some flexibility in final terms and dates can be the key to a successful sale.  Remember, all real estate is local – the value of your property is specific to your neighbourhood, block and improvements, and to the number of other similar properties competing for buyers’ attention. Call me for an up to date market evaluation and to find out how our proven marketing system can get you top dollar, quicker.

For buyers, having the very latest sales information to determine comparative value, and the ability to receive listings as soon as they are posted on the MLS system is key to getting the quality home you want. Pre-qualification for financing and the ability to fast track due diligence will make your offer more attractive. I’ll work with you to make sure you see the latest listings for properties that match your needs and budget.  Once you decide on a place, I’ll guide you through the process and work with you to craft an offer that gives you the opportunity to secure it on your terms.

Give me a call to get started; I’d be pleased to help!

You can access the latest Westside stats here:
http://members.rebgv.org/realtorlink/rebgv/statscentrereports/Vancouver-West.pdf
You can access the latest Eastside stats here:
http://members.rebgv.org/realtorlink/rebgv/statscentrereports/Vancouver-East.pdf
For any other neighbourhood, just drop me a line and I’ll email you the latest stats.

BUILDING COSTS & AFFORDABLE HOUSING

This article appeared in the Globe & Mail a couple of weeks ago and I thought it made some very good points about both some new policy initiatives and the cost of building new housing in Vancouver, separate from the actual cost of acquiring the land. If you have a few minutes, I think you’ll find it interesting. You can access it via this link:

https://www.theglobeandmail.com/real-estate/vancouver/article-developers-say-vancouvers-housing-density-plan-wont-address-the/

NEW DISCLOSURE RULES FOR REALTORS

As you may have heard, since June 15th the rules have changed for representation and disclosure in BC. All REALTORS are now required to present both clients and members of the public with a new Disclosure of Representation in Trading Services form, prior to providing anything other than general information about the market or a listing. This means that before you share any information regarding your own personal situation, I must provide you with the new form, signed and dated by me. I can provide the form in person, or by email. I’ll be posting a copy of the new form on my website FYI – and will make sure you get a signed copy before we discuss your own circumstances and specific real estate goals.

Also effective June 15th, Limited Dual Agency – where one REALTOR represents both a buyer and a seller in a transaction is prohibited. This means that if you have an interest in purchasing a property I have listed, I cannot provide you with any agency representation. I can either refer you to another REALTOR, you can find one on your own, or you must agree to be an unrepresented party in the transaction. There is also a new mandatory disclosure form to explain this, if the situation arises I must provide it to you without delay.

This dual agency ban also affects circumstances where a REALTOR has two different clients who both wish to make offers on the same property, as well as situations where a previous client, even if represented by another REALTOR, wishes to make an offer on a listing. You can count on me to make sure your best interests are always protected and to promptly inform you in the rare event that either of these circumstances occurs.

As always, if you have a question about the new regulations or anything else regarding our local market, just give me a call.

A turning point?

604.731.0566   jgoodwill@sutton.com   jhomes.ca


A turning point in our market?

The provincial coalition NDP/Green government released their first budget last week and as expected, it contained a variety of measures to cool the housing market. Most notably:

Speculation tax

  • The province will implement a new speculation tax on residential properties, targeting foreign and domestic homeowners who don’t pay income tax in BC. This includes those who leave homes vacant.
  • The tax will apply to the Metro Vancouver, Fraser Valley, Capital, and Nanaimo Regional districts and in the municipalities of Kelowna and West Kelowna.
  • In 2018, the tax rate will be $5 per $1,000 of assessed value. In 2019, the tax rate will rise to $20 per $1,000 of assessed value.
  • The province will administer the tax and will collect data to enforce it including, social insurance numbers, household information, and world-wide income information.

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A tale of two markets

604.731.0566   jgoodwill@sutton.com   jhomes.ca


A tale of two markets

As we head into the fall, it is a good to review the trends that have developed in our real estate market over the past 6 months.

Throughout Vancouver we have seen two distinct markets emerge during the past spring and summer. The attached market (condos, townhouse, and half duplexes) has seen significant year over year price increases, less listings, and more sales.  The condo market is very much a sellers market right now, with limited supply and a high sales-to-listing ratio. At the same time, the detached market has become a more balanced market with more listings, less sales and prices holding steady. Buyers are currently in the drivers seat when shopping for a detached home – with a large selection to choose from in most neighbourhoods and at most price points.

After a tepid fall and early winter where buyers waited on the sidelines to see what the fallout from the Foreign Buyers Property Tax surcharge would be, the market came back to life in March. Today’s condo prices are up by about 20% on the Eastside and 13% on the Westside from where they were a year ago, with all of that gain occurring in the last 6 months. Much of the demand has been in the $400,000 to $900,000 range, but there is also significant demand for larger and more luxurious units, particularly those with views, significant outdoor space, or in desirable neighbourhoods.  The condo market has been fuelled by first time buyers, young families up-sizing, and boomers down-sizing. Factor in increasingly unaffordable detached homes – anything liveable will start at close to $3M on the Westside and close to $2M on the Eastside – and it’s easy to see why the attached market is so hot.

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Spring Market Update

604.731.0566   jgoodwill@sutton.com   jhomes.ca


Spring Market Update:

Spring came early this year with record breaking sales coupled with a low number of new listings, leading to another surge in prices across all categories and neighbourhoods. The new development is the recent strong activity in condos & townhouses – what we have seen for the past several years in detached houses is now happening in attached housing as well. This was inevitable – as prices climbed in houses it was only a matter if time before we saw increased sales activity and corresponding price increases in townhouses and condos.

Some of this is first-time buyers deciding it’s now or never, but plenty of the activity is fuelled by downsizers who have sold the detached family home and are making the move into a strata. And condo sellers who have been priced out of the detached market and are trading up for something bigger & better. There is particular pressure on larger luxury condos in popular neighbourhoods – Coal Harbour, Downtown, Yaletown, False Creek, Kitsilano and Mount Pleasant neighbourhoods have all seen year-over-year price increases of 20-30%. While there are some new developments in the pipeline, demand is now exceeding supply, leading to multiple offers and selling prices often over the asking price.

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Year End Report and 2017 Outlook

604.731.0566   jgoodwill@sutton.com   jhomes.ca


Year End Report and 2017 Outlook

To say that 2016 was an eventful year for our Greater Vancouver real estate market would be an understatement. The first half of the year saw double-digit price increases for all housing types, fueled by higher local and foreign demand coupled with an ongoing low supply of listings. By mid-spring, the big story was the jump in attached strata prices. After years of lagging behind the detached market, the condo market caught fire as first-time and move-up buyers competed with downsizers and investors for a limited supply of quality listings. By early spring, prices for condos in Vancouver were up 30% year over year, while detached homes were up approx. 35%.

This was in spite of changes to the BC Property Transfer Tax (PTT) in the February budget that created a third tier – with a 1% surcharge on the balance of a property’s purchase price above $2 million. And regardless of warnings issued by both the Bank of Canada and the Federal Finance Minister that the Vancouver market was overheated.

In early summer, just as sales were slowing and the market finally seemed to be leveling off, the provincial government announced a surprise 15% surcharge on the PTT for non-residents, effective just two weeks later on August 2nd. The market changed overnight – with sales dropping off in August and continuing to languish throughout the fall amid uncertainty about future value and appropriate pricing.

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2016 Fall Update

604.731.0566   jgoodwill@sutton.com   jhomes.ca


Fall Market Update:

The fall has brought new dynamics into play in the Vancouver real estate market. The effects of the 15% surcharge on the Property Purchase Tax for foreign buyers, which became effective in August, has lead to two distinct markets.

Detached homes are now definitely into buyer’s market territory, with listings exceeding demand and some softening of prices, particularly on the Westside. Sales in the last 2 months are suggesting that many properties have fallen 5-10% from their spring 2016 highs. Sales of detached homes are down considerably, while inventory is steady or climbing in some neighbourhoods.

Strata properties, whether condos, townhomes or duplexes, still remain primarily a seller’s market, with good activity across most segments. This is especially true of larger units, and those that offer a view or significant outdoor space. The best units are still attracting multiple offers, although at a less frenzied pace than we saw earlier in the year.

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Some thoughts re assignments and flipping in our market

604.731.0566   jgoodwill@sutton.com   jhomes.ca


Some thoughts re assignments and flipping in our market

There’s been a lot of talk and some concern about the assignment of contracts in general and the practice of “shadow flipping” in our current market. Here’s my take on it.

A listing agent’s undivided loyalty and fiduciary duty is to his client, the seller. He/she must always act in their best interest, disclose all relevant information (including any commissions earned), and to keep all confidences..
Likewise a buyer’s agent undivided loyalty must be to his client, the buyer, with the same obligations of disclosure and keeping of confidences.
Any interest that the agent may have as a buyer (or seller) in any sale of a property must be disclosed to all parties, in writing, before the presentation or solicitation of an offer.

Problems arise when a sole agent is representing both buyer & seller – in this case the duties of loyalty and keeping of confidences are problematic as it’s impossible to be loyal to 2 parties at the same time. In this case the agent is obligated to act impartially, to treat each party fairly

Give us a call today to get started!

Sutton Group West Coast Realty (Kerrisdale)
#200-5511 West Boulevard
Vancouver, BC V6M 3W6

November 2015 – Newsletter

604.731.0566   jgoodwill@sutton.com   jhomes.ca


Fall Market Update:

The latest real estate board statistics confirm what we’ve been seeing in the market place – we are once again in the midst of a strong seller’s market – with year-over-year average price increases of 20% for detached homes on the Westside, and 23% for detached homes on the Eastside.  Condominiums and townhomes have also seen substantial gains over the past year, with a 14% average price increase on the Westside and almost 12% on the Eastside.

Sales are up slightly over last month, but inventory is down substantially, reducing the average time on the market to just 30 days, much less for the most desirable properties. This is great news if you’re selling, but a real challenge for buyers. Never has it been more important for buyer’s to prequalify for financing, have their deposit funds available, and perform their due diligence in a timely manner. Multiple offers are currently commonplace for many properties – it is essential to have a skilled buyer’s agent in your corner to provide you with the latest comps and help you secure your dream home.

Sellers need the latest market intelligence and a skilled Realtor team to manage the sales process, in our dynamic marketplace hundreds of thousands of dollars can be left on the table without a proper marketing plan and sharp negotiating skills.

For the latest Vancouver Market Statistics click the following links: 
WESTSIDE REPORT
EASTSIDE REPORT

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