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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.

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Luxury Home Sales In Vancouver Plummet

All around the world, people seek a luxurious and dream residence. Vancouver luxury homes are the perfect combination of beauty, style, elegance & more. The city offers amazing quality of life and all the modern amenities.

The previous years in Vancouver saw high demand for luxury homes. But the scenario has changed this year. Let’s understand exactly why and how this has happened:

Introduction of Foreign Buyer Tax & Its Impact

When compared to July 2016, Vancouver house sales over $1 million have plunged in the first half of 2017,

The city has witnessed a slowdown in luxury home sales. This is due to the 15 per cent foreign-buyer tax introduced in August 2016, in a struggle to cool the previously red hot market. Only after living through historic highs the previous year, sales activity in the $1 million-plus market stabilised in the first half of this year.

In the $4 million-plus market, overall luxury sales experienced a 52 % year-over-year slump to 211 units.

What’s more? The BC Government’s latest data suggests foreign buyers have been decreasing for months.

4056 West 33rd Avenue, Vancouver, British Columbia V6N 2J1
4056 West 33rd Avenue, Vancouver. Asking: $6,988,000.00

Chinese Cities Drive Up Luxury Home Prices

Limiting capital outflows has been China’s zealous effort.

In the first three months of 2017, luxury house prices in prominent global cities escalated by 4.3% compared to the same period last year, and this upsurge can largely be credited to China’s cities.

Chinese officials limited foreign currency transactions to a paltry $9,000 as of July 1.

The new controls are aimed at ceasing “ants moving house,” says Anne Stevenson-Yang, of J. Capital Research Ltd., one of the leading experts on the Chinese economy. The term is used in China for getting many people to make small money transfers to eventually transfer plenty to purchase property.

The Charleson Sales from $3,600,000
The Charleson Sales from $3,600,00. Source: buzzbuzzhome.com

Though folks discover ways around the rules, Anne says. Mostly, the rich already have their wealth overseas, thus they are not impacted by new controls. Irrespective, foreign exchange reserves have upturned every month since January.

In the present, the slowdown is already surfacing in Vancouver’s luxury home market. Single family home sales above $3 Million have jumped 27% year over year while inventory has hiked 24%.

It will be interesting to see how long China withstands the latest tightening. If China stays determined on limiting outflows, Vancouver housing market won’t be the only one to experience the impact. According to a report, there will be an 84% decline in offshore property buying in 2017.

The people of Vancouver may finally be able to heave a sigh of relief.

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Steady Drop in Vancouver House Sales; July Experienced Price Rise

Sales Slow In the Country’s Costliest Real Estate Market

Vancouver area house sales saw a steady drop in July. On the other hand, the short supply of properties on the market has led to price rise almost a year after the B.C. government put a foreign buyers’ tax to curb the once-hot market.

On August 14, 2017, British Columbia Real Estate Association published data that reveals the sink in the number of houses sold across Metro Vancouver in the last month compared with July 2016, and the growth in the prices.

In July 2017, in total, 3,012 houses were sold across Vancouver – an 8.8% depression compared to 3,301 homes sold a year ago. However, the region witnessed price rise, with the average outreaching $1,029,786. This inclines that year-over-year, there is a 2.2% spike in the home prices.

July Statistics – Image Source: rebgv.org

The Prices Do The Talking!

Last month, prices augmented across all regions of British Columbia. Vancouver, the most populous city of British Columbia, made highlights with 18% price hike over the year, hitting an average of $452,353. The average home price upturned 11% to $644,510 in Victoria. The South Okanagan region and Kamloops were up by 9.5% to $415,720 and 8.1% to $367,303 respectively.

More Balanced Market Conditions Expected Before 2017 Ends

BCREA chief economist Cameron Muir stated, “Strong economic growth, an expanding population base and a lack of supply continue to drive B.C. home sales and prices this summer.” Though, he added that the decline in sales and consistent rising inventory has been easing the harsh market conditions experienced lately.

“Home sales have edged back 4% since May, with active listings beginning to bounce back from a 20-year low”, Cameron Muir stated. “If these trends continue, it may signal that more balanced market conditions could emerge before the end of the year.”

All over British Columbia, the number of homes sold diminished 6.3% year-over-year, with 9,275 homes sold in the month in total.

Repeat House Sales Ascent Last Month

The Teranet- National Bank Composite House Price Index indicates a 7.8% increase in repeat house sales and 8.56% year-over-year across Metro Vancouver last month. This indicates price modifications for repeat single-family houses’ sales.

The year-over-year progress was beneath the national average upsurge of 14.17%. The upturn country-wide was driven by growth in Toronto, however, according to Teranet, Vancouver’s growth is slowing as non-condo properties’ prices are tumbling.

Demand For Housing, Property Listing & Home Prices In Vancouver

According to the real estate board’s president, Jill Oudil, the demand for housing in Vancouver now differs by property type and location, with some parts of the real estate market still witnessing bidding wars.

There is only 0.3 per cent increase in the number of properties newly listed for sale from last year. If we talk about the sales-to-active listings ratio, the figure is 32.2 %.

According to sources, when the ratio is above 20% for many months, house prices often experience skyward pressure.

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Top 5 Real Estate Investments in Canada

 

For many years, Vancouver has been rated as one of the best places to live in the world. It has one of the most expensive neighbourhoods and is a hot stop for real estate investment.

Being open to so many alluring options, it becomes difficult for an investor to shortlist his/her potential deals and come to a sound decision. If you too are confused about which property to buy in Canada, check out this list of top 5 real estate investments to make a sound decision.

 

Guelph, ON

Guelph tops the list as the city with the most attractive real estate in Canada. Undoubtedly, there are a number of buyers ready to grab onto the best buys offered by this location. Homes in Guelph go for about $441,000. This is more than over four times the average household income. The location is on stable footing with a low unemployment rate. Guelph is home to advanced manufacturing companies, green tech firms, and supports several high paying government jobs.

 

Victoria, BC

This location has immense potential at the moment. The absence of foreign buyer tax along with low Canadian dollar rates add to the pros for Victoria as a location or property investments. With 26,000 people working in technology, it is an emerging high-tech hub. Victoria has the ocean along with great climate and scenery. People have the opportunity to buy great condos for under $250k. The rental vacancy rates and rental prices are just about the same as Vancouver, making it an excellent bet.

Brampton, ON

It may come as a surprise to many, but Brampton is one of the best places to invest in the real estate market. This conclusion can easily be drawn by people who have been closely analysing the market in the last few years. Brampton has the ranking in the top 10 vacancy rates and offers strong employment and population growth. Coca-Cola, Air Canada and Canon Canada are a few of the many blue chip employers that relocated here. 23-km Hurontario LRT line will also undergo improvements in its infrastructure.

 

North & West Vancouver, BC

North & West Vancouver have become favourites when it comes to growing real estate locations. The areas have lots of special amenities, great schools and amazing views. Port Moody’s continued investment in development and the completion of the SkyTrain stop have converted this area into a high-value neighbourhood. It offers a balance between lifestyle, travel distance and house size. New Westminster is another real estate hotspot. Factors such as growing employment and population have led to an increased demand in the area.

Barrie, ON

DCIM100MEDIA

Barrie has a beautiful waterfront location on Lake Simcoe. It has been on the radar for investors for years. A designated Urban Growth Centre, Barrie has benefitted from job growth, transportation improvements and economic diversification. It is about 90 km away from Toronto. It offers all of the ideal amenities for future resale. What’s more? Good schools, beautiful parks and safe neighbourhoods make Barrie one of the best choices for residents and investors.

As an investor, you must be patient and calm while looking for potential real estate investment buys. There are major housing issues in Vancouver at present, but the rates of the properties may rise sharply. This is because Yaletown condominium property is one of the most desirable properties in all of Canada. Factor in every aspect to make a profitable purchase.