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Vancouver Housing Market Just Had Its Cruelest April In the past Decade

Living in a comfortable place happens to be the dream of everyone. However, many people have not been able to live up to this dream, as the cost of such comfortable places is expensive- higher than they can afford. Many people are currently not happy with their dwelling place, but only little can be done to change what has already been made.

The C.D. Howe Institute in Vancouver, reveals a research made into housing in Canada, it was stated that in about nine (9) years, ranging from 2007 to 2016, around $600,000 has been added to the cost of an average home. This huge addition has been greeted by people with much dissatisfaction. In the Metro Vancouver new homes, the reasons for the continuous decrease is, due to the higher prices, rising rates, tax increase and also the inclusion of mortgage conditions.

Anyone who needs a luxurious home, should understand that Vancouver has a whole lot of packages to offer. The style of the homes would conventionally fit everyone’s taste. One can own his or her own property with the basic amenities in place to enable one live a comfortable life. However, such comfortable places could come with an expensive price. Early in 2016, house sales in Metro Vancouver dropped by a large percent.

A Housing Developer Addresses The Affordablitiy Issue Of Vancouver Properties

A particular website stated how Metro Vancouver has evolved drastically for close to 40 years. A housing developer which goes by the name Michael Geller, talks about some relevant and important real estate issues which is still must talked about even till now. Geller asserted that the thought of many people as regards the issue of affordability in Vancouver which seems to be a catastrophe, is not something which is just happening for the first time. Factors such as the effect of the investment from foreign bodies, a very low rental vacancy rate amongst others, which have plagued real estate experts in the past, are currently still being looked into. So, in order to fully grasp and solve the issues which are caused by these factors, it would be necessary to look into the past, and work with the results gotten then, comparing them side by side with the current issues. Once this is done, progress would undoubtedly be made, and the affordability of housing would surely be improved.

Comparing Sales Of 2017 And 2018

Taking a look at the spring sales in the luxury real estate market in Vancouver, the spring sales took a downturn, however the prices continued to rise. Reports further showed that in the first quarter of 2018, the sales activity in the region decreased, the luxury detached home sales lessened by 38.2 % as when compared to 2017, also the sales of luxury condominiums decreased by 26.5%.

It would surprise people to note that despite the lessening of sales, price gains were still gotten, this left people in bewilderment as to how that managed to occur. The president and CEO of Royal LePage, Phil Soper, revealed some reasons which people might hardly look into. He mentioned that the prices had not dropped, but remained high due to the fact that much was carried over from the previous year-2017, and there are strong indications that it would drop during this current year.

However, due to the recent happenings as regards the springing up of new policies which relate to tax, and which also affects buyers- both foreign and domestic ones, who purchase properties such as homes in Vancouver, the price appreciation was predicted to reduce or lessen in 2018, this price appreciation applies to the luxury market. Also, the volumes of sales would expectedly be lower than usual.

Buying Or Renting A Place In Vancouver, What’s Your Pick?

Now, for those who are contemplating between the cost of buying or renting in Vancouver, they should understand that there is really no difference, the returns gotten from the investment would not really be much when comparing both sides. A summary of the analysis which was conducted by a group called the Quantitative Rhetoric which provides monthly reports about the cost of buying or renting a place in Vancouver, stated explicitly that all what mattered, is the ratio of how much one intends to rent or buy, as the final calculated amount on both sides has little or no difference when compared.

 

 

 

 

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Housing Sales In Vancouver Going Sour

Higher prices, rising rates, new tax announcements, and latest mortgage requirements are all playing important factors towards the plummeting of housing sales in the Metro Vancouver area. As housing sales dipped to the lowest level in the recent years, Metro Vancouver’s new homes have soared in the initial quarter of the year, with stats in Vancouver alone being more than twice as high as the same period in 2017. There were 6,542 home sales on the Multiple Listing Service (MLS) in Metro Vancouver during the initial quarter of 2018, which is a decrease of 13.1 percent from the same period last year. This represents the region’s lowest first-quarter sales total since 2013, reported by the Real Estate Board of Greater Vancouver (REBGV).

A Comparative Analysis

The overall housing sales in the first quarter of the year were the lowest in the past 5 years. In fact, even the local listings of detached, attached and apartment properties dropped by almost 7 percent in March as compared to previous year. But total housing stats across the region increased to 6,864 units in the first three months of 2018, up by 30 percent from the last year. Massive increments were also noticed in the Northern Vancouver area, where about 1,422 new homes were initiated, comparable to only 107 in the same period the preceding year. Even though there have been almost 43,000 new homes under construction across the Metro Vancouver area, the current inventory remains incredibly low.

Housing Price Benchmark Reaching Astonishing New Heights

Sales have started to outstrip supply for condos and townhouses. The benchmark price for a condo was close to $700,000 in March. This is a leap of 26% compared to the preceding year. Standard townhouse prices across Metro Vancouver reached $835,300 last month, which is a 2 % hike over February and an overall 18% rise from March 2017.

Renters are paying the real price when it comes to living in these highly expensive areas. According to the Canada Mortgage and Housing Corporation, average rent has nationally gone up previous year by 2.7 percent to $947 per month. Meanwhile, rental property is becoming tougher and tougher to avail. The CMHC says that the overall vacancy rate for cities across the country was three percent in 2017, down from 3.7 percent in 2016. In its annual report on housing rentals, the corporation said the demand for a purpose-built apartment is outpacing the growth in supply, while the rates of condos rented out are also declining.

This uncontrollable price outburst has taken the market by surprise. This is becoming a serious concern for both businesses and residents looking to recruit new candidates. It is becoming immensely cumbersome to buy quality real estate in Vancouver. The government of British Columbia is looking to follow new measures intended to mitigate the highly inflammable housing costs.

Increasing construction can meet the rising demand for rental studios and multi-family homes. Beyond that, it wouldn’t hurt for people to look for suitable accommodations adjacent to or on the outskirts of the Metro Vancouver area!

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Vancouver’s Housing-Affordability Enigma

It is easy to comprehend why people are moving up in the housing continuum and freeing up the real nature of rental homes. But the main question is – is it economically viable to shift the paradigm over to detached homes and condos? Let’s figure it out!

For a long time now, Vancouver’s real estate market showcases a high degree of vulnerability. Certain reports continue to signal strong evidence of staunch overvaluation as housing prices are still going north of expectations. Surveys noted that homeowners in Greater Vancouver and the Greater Toronto Area remain probably the most highly indebted in Canada, due to the speed in which their real estate market has expanded. Other measures designed to either cool down the housing market include Bank of Canada, raising key interest rates, Ontario’s Fair Housing Plan and a new mortgage stress test by Ottawa for insured mortgages. Unguaranteed mortgages remain slightly more expensive.

Condos Outpacing Detached Homes

We have found moderate evidence of price acceleration when it comes to the overall market, but it has been pointed out that low price acceleration among detached homes was causing an extremely high price growth influx among condos and townhomes. Instead of buying detached homes, families are now settling for the option of apartments and condos. The irony is that condos aren’t exactly on the cheaper side!

Renters Suffering The Biggest Blow

Renters are struggling to find homes because prices are skyrocketing and at the same time availability is rapidly declining. Vancouver’s housing market continues to overheat, as demand for multi-family units remains elevated, largely due to their relative easy affordability as compared to single-detached homes. As a result, inventories of both new and resale multi-family units are at or near all time lows. People believe that the Canadian government at one point in time was able to construct enough rental buildings annually, but after the arrival of private sector, it hasn’t been able to fulfil the rising requirements of the growing population. In turn, there has been a shortage of quality apartments and condos in Vancouver, and this has led to an enormous rise in housing rent.

So is it viable for the common people to start renting condos and apartments at over $1500 a month? No! In fact, it would be very troubling for average middle income families to invest that much money in rent alone. It was reported that last year, Canadians nearly spent more than 30% of their incomes on shelter costs, which is way beyond the line of affordability. All in all, it is becoming very difficult for families to survive, not to mention, save money with these rising costs.

The need of the hour is direct intervention from the government to help reduce proliferating housing costs.

 

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Vancouver Gas Price – April 13, 2018

It seems like Vancouverites are more concerned about gas price in the past 2 days than Vancouver/Yaletown real estate!  might as well talk about gas price!

Top Ten Lowest Gas Prices in Vancouver

Price Station Address City Time
141.9 Costco 20499 64 Ave Langley Apr 13, 8:42 AM
141.9 Super Save 20966 56 Ave Langley Apr 13, 7:59 AM
141.9 Safeway 20871 Fraser Hwy Langley Apr 13, 7:51 AM
141.9 Super Save 19415 Langley Bypass Surrey Apr 12, 6:36 PM
142.9 Costco 2370 Ottawa St Port Coquitlam Apr 13, 8:37 AM
143.9 Super Save 2390 200 St Langley Apr 13, 6:17 AM
143.9 Super Save 4061 200 St Langley Apr 13, 6:15 AM
143.9 Esso 19712 Fraser Hwy Langley Apr 13, 1:56 AM
143.9 Esso 6036 Glover Rd Langley Apr 12, 8:25 PM
143.9 Super Save 20502 Lougheed Hwy Maple Ridge Apr 12, 6:43 PM

Top Ten Lowest Gas Prices in B.C.

Price Station Address City Time
117.9 Costco 2555 Range Rd Prince George Apr 13, 8:41 AM
119.4 Petro-Canada 1746 20th Ave Prince George Apr 13, 8:43 AM
119.4 Petro-Canada 2420 5th Ave Prince George Apr 13, 5:36 AM
119.4 Petro-Canada 3688 Austin Rd W Prince George Apr 13, 5:17 AM
119.9 Husky 1148B Pacific St Prince George Apr 13, 8:49 AM
119.9 Shell 4869 Continental Way Prince George Apr 13, 8:49 AM
119.9 Super Save 4832 Continental Way Prince George Apr 13, 8:49 AM
119.9 Esso 1085 Great St Prince George Apr 13, 8:49 AM
119.9 Esso 1977 Queensway St Prince George Apr 13, 8:43 AM
119.9 Superstore 2155 Ferry Ave Prince George Apr 13, 8:41 AM

Historical Gas Price Charts

pricechart

National Price Trends

NATIONAL GAS PRICE AVERAGES
Current CANADA
Average

130

Regular Gasoline

Trend
Current Trend
HIGHEST
PROVINCE

141.8

British Columbia

LOWEST
PROVINCE

114.7

Saskatchewan

Fueled By GasBuddy.com

Source: GasBuddy. Retrieved from cbc.ca/bc/gasprice

 

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Cost of Living Vancouver V.S. International Cities

“Vancouver is expensive to live” has been ring our ears for a while. We have the most expensive gas in North America (gas prices spike to $1.50CAD/Litre) , as well as high cost on housings..etc. On the other hand, we also believe that Vancouver is “very international” as we have

  • hosted at least one Olympic event (2010 Winter Olympics)
  • ranked top 3 most livable cities according to the Economist Intelligence Unit’s (EIU)
  • lots of new immigrants & speaks over 200 languages

The’s  a cost for being a “popular” city so it is expensive to live in! However, how “expensive” is Vancouver compare to other popular ones?   Let’s have a look at cost of living compared with other well-known cities around the world. Looks like we are not too bad!

Cost of Living in Vancouver V.S. other major cities such as Tokyo, New York, Shanghai and more (data April 2018 from Numbo.com)

Please include attribution to Condos in Yaletown with this graphic.

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Vancouver Real Estate March 2018 Update

Main Highlights

 

Vancouver Real Estate News - March 2018 Update
Vancouver Real Estate News – March 2018 Update

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Did You Hit the Jackpot on Vancouver Real Estate?

Were you part of this “WAVE”?

There isn’t an easy-to-read chart out there so we have decided to come out with an overview of how greater Vancouver & Fraser Valley Real Estate has grown in the past 10 years. Information is compiled from Real Estate Board of Greater Vancouver and Fraser Valley Real Estate Board

Looks like everyone is a WINNER if you have purchased at least a piece of property in the past 10 years.

greater Vancouver and Fraser Valley Real Estate
Greater Vancouver and Fraser Valley Real Estate – home pricing 10 years comparison

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The Yaletown Housing Deal 2018

The real estate in Yaletown, Vancouver BC, is perhaps going to be the probable central causes for a resurging housing bubble that hit the US a decade ago. Adjunct economic housing instability has engrossed a fury of housing spectators, disenfranchised students, and residents towards a political decry.

Most spirited candidates once believed that half a million dollars could get them a beautiful offshore mansion. The reality is however different. 500,000 $ is only equivalent to a small residential condo. This is exactly why most people believe that the housing market is out of control.


Now, certain spectators believe that the city’s housing market was being covertly restructured to supply millionaires in the third world countries with a medium to vent out their black currencies through investment. Others believe that extreme housing prices are due to a lack of political management of funds and resources, forcing the housing sector to collapse because of changes in the global dynamics. Now everyone has their own peculiar hunch, so here are certain trends that have really taken British Columbia aback.

  1.    Real Estate Tyranny

The law of capitalism says that the rich get richer and the poor get poorer. This could exactly be the case here. Most multi-million dollar tycoons are investing from their pool of wealth into real estate to create secondary sources of income through investment. Exorbitant lumps of wealth need to be utilised and real estate, well, it’s the best way to block your money!

  1.    Property Hegemony

International agencies reckon that shell companies own most high-end properties in posh areas. Within Vancouver’s city limits, around 99 percent of the single detached houses are now assessed at $1 million. More than 20,000 Vancouver homes get vacant every year. Vancouver’s rental vacancy rate is hovering just below one percent! This means that property sale and purchase have taken a leap forward, and people other than the middle class are reaping vital benefits from this!

 

Image source: Straight.com

  1.    Foreign Ownership and Immigration

Foreign nationals are taking advantage of having access to quality real estate. There are a plethora of opportunities for Non-Canadians to buy, invest, and extract profits from real estate. Most immigrants are finding it rather tough to attain affordable accommodation, yet there a rich group of ‘so-called’ sophisticated immigrants that spur up the real estate prices with their barrels of wealth.

Overview of population growth Canada. Image source: vancouversun.com

The trends of real estate in Yaletown, Vancouver aren’t on the people friendly side. Perhaps, proper governmental action and holistic mortgage policies could help control the snowballing effect of prices. Developing punitive housing taxes and other measures to prevent illegal money from entering into the Canadian economy is the right step forward.

 

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7 things to Look Forward to in Canada’s Estate, Home and Real Properties

Canada has a vast land area covering up to almost 10m million square kilometres, considered as the second largest country in the world. Canadian government invites and encourages migrant workers and residents from other countries to fill up jobs and occupy uncovered areas in the country. This is in response to the rising economic status of the country.

Canada’s Federal Economic immigration platform has been recruiting a number of migrant skilled workers to accommodate demand for workers on Canada’s local job vacancy and manpower needs either as temporary workers or permanent residents. The country is also trying to attract foreign investors as an additional government funds and government profit opportunities.

Check out reasons why you need to invest and purchase real estate as soon as possible. There are a lot of positive and optimistic expectations this year, 2018.

There are 7 things that Canadian residents should count on in investing in land, property, house and real estate this year.

 #1 Growing Population

As the Canadian government allow express entry for foreign skilled workers to augment job vacancies for different industries, the number of population in the country proportionately grows as well. Demand for housing is growing rapidly.

 

 

 

 

 

 

 

Image source: Statistic Canada
Population
Table summary
This table displays the results of Population 2006, 2011, 2016 and 2006 to 2016, calculated using number and % change units of measure (appearing as column headers).
2006 2011 2016 2006 to 2016
number % change
Canada 31,612,897 33,476,688 35,151,728 11.2
Newfoundland and Labrador 505,469 514,536 519,716 2.8
Prince Edward Island 135,851 140,204 142,907 5.2
Nova Scotia 913,462 921,727 923,598 1.1
New Brunswick 729,997 751,171 747,101 2.3
Quebec 7,546,131 7,903,001 8,164,361 8.2
Ontario 12,160,282 12,851,821 13,448,494 10.6
Manitoba 1,148,401 1,208,268 1,278,365 11.3
Saskatchewan 968,157 1,033,381 1,098,352 13.4
Alberta 3,290,350 3,645,257 4,067,175 23.6
British Columbia 4,113,487 4,400,057 4,648,055 13.0
Yukon 30,372 33,897 35,874 18.1
Northwest Territories 41,464 41,462 41,786 0.8
Nunavut 29,474 31,906 35,944 22.0

#2 Value of Housing, Land and Property Estate May Drastically Increase in the Coming Years

Every year the land and real estate appraisal increases by months or by years. It is inevitable market pricing for all commodity and realty. Purchase and invest in property and housing estate as earliest as possible this year to skip paying an increased value on real estates. Even after retirement, your house and land’s price increases. It never stops increasing day by day.

Image source: Greater Vancouver Real Estate Board

#3 Interests Rates Are Expected to Increase

Due to demand for housing and land development in the past years (and is expected to continue this year), real estate loan interests are expected to increase. In line with the increase on the value of land, property and housing prices, as well.

Canadian banks are expected to increase their rate target up to 1.25% interest rate (and will possible surge more) from the start of this year, 2018. So, it is wise to invest as early as possible.

#4 Diversity of Permanent Residence in Canada

Since the new Federal Immigration project has been implementing, competition with owning a land or a house per family has been a race. Cities like Toronto, Montréal, Vancouver, and Ottawa have been now occupied pretty much by a lot of working migrants and their families. The diversity of residents and the surge in population limits the chances of getting the best area around town or cities, because   you get to compete with the purchasing of the real estate of your choice.

Purchase a piece of land or a house now, or let just have what area remains. It has now been a race to who will get the best location and best house to purchase.

#5 Expectation on Real Estate Long Term Trend Increase

Definitely, a real estate and properties price increases, every year. With the promising business opportunities and job vacancies in whole Canada including those from other far flung regions, expectations in competitive economy, country’s increased GDP rate and job vacancies can ploy buying and sales capacity; thus inducing increase in prices and higher interest rates, depending on location and economic progress of the area.

#6 House, Land and Property Ownership can be used as Leverage

Bank loans, purchasing another property, authentication of documents, and legal certification often requires land and housing ownership. Investing in real estate can open great deal of opportunities for you and your family. It is an asset you can use to gain another asset, property or gain connections, and work / business chances.

#7 Real Estates is a Good Legacy

The house and lot you purchased now can surely gain profit in the coming years, despite of the property tax, renovation and maintenance costs; Can be passed on to your children, or your children’s children. Do not wait till the whole Canada is crowded and there are no left space for you to purchase.