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“Huge wave “on Sale and Prices of Vancouver real estate, Down to more Level in History

Vancouver is an area desirable to live. Attractive with a clean and safe environment and mild climate due to the surrounding of mountains, and also full of outdoor recreation, it has raised the demand of housing which continues to grow tremendously within Canada and also overseas. A new study shows that there is a historical demand level as termed by The Real Estate Board of Great Vancouver since there is a drop in sales and prices for Metro Vancouver homes.

A report indicates that over 1,600 residential homes were sold in Vancouver in November. Home prices have dipped 4% to 7% in the past six months depending on the type of property. The conditions will be watched by the board in the first quarter of the year 2019 in order to see whether the buyer demand will pick ahead of the active spring market.

Real estate typically revolves around the world and new supplies are getting into the market. Due to the high level of immigration, population growth in Canada has accelerated in the last few years which is now growing fast. Canada’s future on affordable housing still remains bright. Policy makers in Real estate markets will have approved important key parts aimed at protecting tenants.

City Council of Vancouver has put across measures that are aimed at preventing many renters from becoming victims of eviction by the landlords so as to renovate or even sell properties. Also, another approval made by City Council of Vancouver is coming up with a method to keep a record of all apartments being built and sold in Vancouver and provide the affected tenants with relevant and useful information towards their tenancy rights. It is also voted for the measure to regulate the buyouts of tenants.

This is a big victory and a huge change for Vancouver city since things are getting different. The councilors asked for an amendment of the Vancouver Charter so as the city would tackle issues of tenancy without any conflicts with the British Columbia Residential Tenancy Act.

“Huge Wave” on Arrival of New Homes, House Prices to Drop

Anyone deserves a better and a safe place to call home. There is an extensible complex that has lately been built in Vancouver, consisting of about 100 homes. It has its main aim at supporting the local indigenous people. The City announced the opening of a 98-unit building made up of apartments with measurements of 320 square feet, Heather street located on the north of west 37th Avenue. Twelve of the units are wheelchair accessible and can be great homes for the physically challenged people.

The complex is one of the eight extensible complex opened within the past few years across the British Columbia and is also part of the province’ commitment to building over 600 homes within Vancouver. The support of having standard homes in Vancouver is in light with the 2018 report based on the count of a rising number of homeless indigenous people in British Columbia that is said to be alarming. The great commitment and support into new homes connect to good health and necessary life skills needed. It will really build a strong foundation.

Canadian Economy Depending More on Housing

Most of the real estate industry in Canada has declared that housing markets in Canada have achieved after a slowdown earlier last year. A report says, last year’s housing market dragged on Canada’s growth on the economy but it was a good run. Focusing on future days, housing investment is very important to the economy of Canada. 7.5 % of Canada’s economy is accounted from residential investment. Also, the share of people who are employed in real estate and home construction is nearing a record high.

As a result, any kind of slowdown experienced will be magnified in terms of the impacts on the economy of Canada. It takes an approximate on one and a half years for the interest rates hikes to be felt in the housing market. Rate hikes from the Bank of Canada since last summer are yet to have an impact. From the market observers, the main reasons for the slowdown are “stress test” which is a new mortgage and the interest rates. For overall stability of the country’s economy, they reduced the amount of mortgage that Canadians can borrow.

According to The Canadian Real Estate Association (CREA) on housing prices prediction this year, it is famously difficult but despite it being difficult, home sales are rebounding. With home prices roughly keeping up with inflation of 2.1 %. Prices will likely tend to climb a bit slower in British Columbia.

“Vancouver” the second- least competitive Housing market in Canada

Homebuyers in Vancouver. Start taking your time when buying a home. The most fiercely competitive housing markets in the country famed for its bidding wars is now the second-least competitive housing markets. According to the new analysis made, the home slumps in the city makes it among the less competitive housing markets in the whole country. By the calculation of sale-to-new-listing ratio, from last year’s data received by the Canadian Real Estate Association, it is measured on how housing markets in Canada are competitive. Greater Vancouver was at 43 %, which was the second lowest only to 35 % of Newfoundland and Labrador. Buyers who are looking forward to ascending the property ladder, they will encounter fewer competitive hurdles like bidding wars.

Most of the young families in Vancouver’s housing market remain confident with their property values. Despite the last year’s recent slowdown, they will do better than any other real estate investments. A total of 79 % of Vancouver respondents to an urban residents survey reported that the financial gains on their homes will be on par with their financial investments over the next couple of years.

The expectation is typically based on how the Vancouver real estate has appreciated.  According to a report, during the September benchmark, on the east side and west side of Vancouver, there is an average of typical homes that have been sold. Today, in Vancouver, it is definitely the buyer’s market which is really a piece of good news.

 

 

 

 

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2019 Sponsor parents, grandparents and members of your family to immigrate to Canada

Information is retrieved from Government of Canada.

1. About the process

Permanent residency in Canada can be gained if you submit the interest to sponsor form and later invited to submit a complete application. By doing so, you can sponsor your parents and grandparents to be permanent residents of Canada.

A MUST things to do include:

  • supporting them financially.
  • Ensure they don’t require any social assistance from the government.

2. Eligibility

Requirements to sponsor your parents and grandparents are:

  • Be physically living in Canada.
  • Age-18 years and above.
  • MUST be a Canadian citizen.
  • Living in Canada permanently.
  • Those registered as Indians in Canada MUST be under the Indian Act.
  • Have enough money to cater for the persons you want to sponsor.
  • Provide documents on sources of your income.

Those Living outside Quebec

  • To be a sponsor, one must promise an undertaking.
  1. This commits you to support of the family members financially for 20 years, right from when they become permanent residents.
  2. Repaying of government social assistance that your sponsored members get during the whole period.
  • Sponsorship Agreement

You and your sponsored family members need to come to an agreement on responsibilities in time of undertaking.

  1. You will provide the basic needs for your sponsored members of your family.
  2. Sponsored persons will make every effort to support themselves.
  • During application, you will have to complete and sign the above-mentioned agreements.

Those Living in Quebec

  • You MUST meet the sponsorship requirements of Quebec on immigration. Which is after approval as a sponsor is done.
  • Assessment of your income is done by Quebec ministry in charge of immigration.
  • You MUST sign an undertaking agreement with Quebec province.

“Not Eligible” for sponsoring Family member

Restriction from sponsoring members of your family can be If:

  • You are below- 18 years.
  • You are NOT a Canadian citizen.
  • You are NOT a person registered in Canada as an Indian under the Canadian Indian Act.
  • A Resident living temporarily in Canada. (Visiting, studying or working in Canada on a permit or visa.)
  • Your application for permanent residence is still ongoing.
  • Your proof of income indicates that you don’t have enough money for financial support of persons you want to sponsor.

Other Reasons may include, if:

You are in penitentiary, jail or prison.

You didn’t follow the agreement signed, to offer financial support to sponsor another person in the past.

You are declared bankrupt.

You are convicted of any criminal offence against a relative (inside or outside) Canada.

You receive Removal order and can’t legally in Canada.

You are NOT able to pay back family support payments (child support or alimony) ordered by the court, an immigration loan, a performance bond.

3. Persons you can sponsor

Different members of your family can legally be sponsored by you. They include; Parents, relative related either by blood or adoption or grandparents. You can include your brothers or sisters as dependent children during the application if they happen to qualify. Since income is a requirement, if you meet them, you may be able to sponsor a couple or more than one person. For a case of separation or divorce, you can sponsor conjugal or common-law partner, your parents’ and grandparents’ spouse.

Eligibility of persons being sponsored.

To qualify for the sponsorship, your family members MUST provide:

  • All the requirements needed. Which include forms and documents with their applications.
  • Any added information that may be required. Which include policy certificates, medical exams and biometrics.

Examples of different persons who you can sponsor

  • Sponsoring your biological parents as a couple

In the application, one is designated as the principal applicant and the as a dependent. If you have siblings, you can include them as dependent children only if they qualify.

  • Sponsoring your mother, stepfather and grandparents

You are supposed to submit two separate sponsorship application as per couple.

You designate your mother as the principal applicant and your stepfather as the dependent.

The other couple you can either designate your grandfather or grandmother as the principal applicant and the other as the dependent.

  • Sponsoring your father, stepmother and their child

In the application, your father is the principal applicant since he is related to you by blood and your stepmother be listed as a dependent. Their child can be added as a dependent only if he or she qualifies.

Persons you can’t sponsor

You in-laws (Parents and grandparents).However, you can act as a co-signer on their application.

Persons NOT allowed to Canada.

Submission of the interest to sponsor form

Be ready to submit the 2019 interest to sponsor form

The first requirement is to fill out the interest to sponsor form. Available at noon EST, 28th JAN 2019. Priority will be based on first-in.

4. Filling out the Form

  • A person who want to sponsor fills out the form
  • Use your computer if you already have the information
  • In case of a mistake during the filling on your interest to sponsor form, find out how to correct and update the information.
  • If you are not eligible to become a sponsor, please DO NOT submit the interest to sponsor form.
  • DO NOT submit the interest to sponsor form more than one time.

Gather information needed before the interest sponsor form opens. These are the new requirements for 2019.

You as the person sponsoring, provide the following information with the interest to sponsor form:

  • Give your last name, Surname and First name as they appear on proof status in Canada document.
  • Date of birth.
  • Country you are born in.
  • Requirement of an email address.
  • Number members of the family in your family unit.
  • The total number of persons you want to sponsor together with their dependents.
  • Provide the names of the members you want to sponsor and also their dependents.
  • Thee parents’ or the grandparents’ birth dates. But for the dependents, it is not necessary.
  • Submit Canada document number and where it can be found as proof of status and make sure all the documents match.
  • Type your signature.

Make sure you understand the income requirements before completing the interest to sponsor form since you will be asked if you meet the income requirements to sponsor.

Preparing your proof of status document in Canada

You will be asked to upload a copy of the electronic proof of status in Canada. Expired documents are accepted too. So you don’t need to renew your document in order to complete and submit sponsorship form.

The requirement of proof of status document include:

  • Both sides of a permanent resident card.
  • Both sides of Canadian Citizenship card or certificate.
  • Canadian certificates of birth. Persons born in Quebec, only birth certificate from Directeur de l’État civil is accepted.
  • A Canadian passport showing the photo, name, place and date of birth and passport number.
  • An Indian status certificate that is secured.

Successful Submission of your Interest to sponsor form 2019

You will be notified by use of a confirmation page that contains a confirmation number. Remember this number and keep it safe for record purpose.

A confirmation email will be sent too.

Invitations will be sent after the forms have been reviewed in order to remove duplicates.

You should find out if you are invited if you successfully submitted the interest to sponsor form this year.

Closed Application Process for the Year 2018

Potential sponsors were invited on 31st July 2018 to submit a complete application. Selected confirmation numbers were posted but were later removed on 5TH OCTOBER 2018 after the deadline for submission elapsed.

5. Find out more on the year 2019 invitation for application

In 2019, we will accept 27,000 submissions on a first come, first serve basis. The interest to sponsor form will be opened for a very limited period of time.

Invitations

Depending on the complete number of applications received, it may vary on if the second round of invitations will be done. In 2019, we will invite enough sponsor in order to receive 20,000 applications that are completely filled out.

For every round of invitations:

  • Share your invitation status on this page.
  • Announce on our website and our social media platforms.
  • Email the chosen potential sponsors.

If you get invited to submit a complete application, a complete application must be received within 60days and the exact deadline will be specified as per your invitation.

If you don’t get invited to apply, there is always another round of invitation depending on how many complete applications have been received at each round.

6. How to fill out the application

You have been invited to apply to sponsor your members of your family.

Applications include:

  1. Application to become a sponsor
  2. Family members’ application for permanent residence

You should send both applications together at the same time

Deadline is indicated in your invitation to apply and must be received within 60 days from the date of your invitation.

The Six easy steps on how to apply to sponsor your parents and grandparents

1)            Interest to sponsor form submission

2)            Invitation to submit a complete application

3)            Getting the application package

4)            Payment of your application fees

5)            Submission of your application

6)            Sending of additional information during application processing.

Application Processing

Your application is reviewed and returned to you if:

  • You were not invited earlier to submit a complete application.
  • Your invitation was not received within the deadline specified.
  • The application form is not complete.
  • Payment fees are missing.

7 Upon successful submission of application

  • You will be sent an application number and an acknowledgement receipt.
  • You will be assessed on eligibility as a sponsor.
  • Persons being sponsored will be assessed on eligibility for permanent residence.

 

When you are refused as a sponsor, you either choose to withdraw your application and get the all the other fees back but you will not get the $75 CAN sponsorship back or you continue processing the application for permanent residence for your family members and you want any fees paid back.

Persons living in Quebec

The person being sponsored by you must complete and sign Demande de sélection Permanente – Catégorie du regroupement familial, an application for permanent selection form and return it.

You must also enclose the form together with undertaking application to the Quebec government.

Approval on the application of your parents’ and grandparents’ permanent residence

Upon finishing the application process, your parents and grandparents, and also their dependents immigrating to Canada, will send:

  • Their passports, or photocopies of their passports
  • 2 photos
  • Receipt for the right of permanent residence fee.

Once finish processing their application, they will receive:

  • Document confirmation concerning them being approved to be Canadian permanent residents.
  • A permanent resident visa, in their passport.

Expiry dates on the permanent resident visa and Confirmation of Permanent Residence (COPR).

Persons being sponsored will have to show their COPR and their permanent resident visa to border services officer or immigration officer in Canada before the expiry of their document

If their permanent residence application is declined, you are informed as to:

  • Why it was declined and ways on how to appeal the decision made.

Tracking and updating your application:

  • Check your application status.
  • Updating your address and other necessary information.
  • Add or change representatives in order to acquire more about your family member’s information.
  • Withdraw your application.
  • Pay the right of permanent residence fee or a refund

Checking your application status

Sponsors

  • The online platform on the website.
  • Request to get access to your parents and grandparents information

Persons being sponsored

  • Creating an online account
  • Use the online platform, which is updated on daily basis.

When you are past the processing time

When the normal processing time is over, the best way is by contacting through the web form.

Withdrawal of your sponsorship application

You can withdraw your sponsorship application at any given time. This is before the person you are sponsoring fully becomes a permanent resident of Canada.

Refund can be available if no application processing has been done.

TO request for withdrawal of your sponsorship application, use the web form

You should include the following for your request:

  • Your date of birth
  • Your full name
  • The country where you were born
  • Number of application
  • The relative’s client identity number

 The right of permanent residence fee.

The fee must be paid before the person you are sponsoring has become a permanent resident. If it was not paid, the person you are sponsoring is supposed to pay the fee online.

Refund on the right of permanent residence fee can only be done if:

  1. You are withdrawing your sponsorship.
  2. Your parent or grandparent was refused.

8. Preparing for arrival

On arrival of your sponsored member of the family, the border service officer must:

  • Confirm documents (permanent résidence)
  • A valid passport or a travel document.
  • Quebec selection certificate, for those going to live in Quebec.
  • Any other relevant document issued and informed to carry.

Members of the Family are already in Canada

The family members will have to meet with the immigration officer in order to receive their permanent residence.

At the Border:

  • Checking of permanent resident visa and confirming its expiry date
  • Confirming the information the family members game in their application.
  • Members must give in details about any funds they are bringing into Canada.
  • They may include Cash, stock, money orders, travel cheques, bonds.
  • Have more knowledge on the documents your parents and grandparents require and also the interview process during the crossing of the border.
  • When fully satisfied about meeting the requirements of entering Canada, the officer will allow the parents and grandparents to enter into Canada as permanent residents.
  • Mail their permanent resident card to the address for the confirmation of permanent residence.
  • Ensure they have the correct Canadian address.

 

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2019 Vancouver Real Estate Outlook

In a word, the outlook for the Greater Vancouver real estate market in the next year is ‘good’ according to industry sources. The British Columbia Real Estate Association (BCREA) points to continued economic growth as contributing to a boost of sales in 2019. The Real Estate Board of Greater Vancouver (REBGV) cites historic trading patterns that will see average prices of detached homes dropping 21-percent in 2019.

MLS Sales Down From 2017

Cameron Muir, Chief Economist for the BCREA, says that Multiple Listing Service sales are projected to record a dip of 23-percent compared to 2017. However, he is confident that the strong economy “combined with favourable demographics” will have a positive impact on home sales in 2019. So much so, that Muir expects the sales figures to exceed the 10-year average in the next 12-months.

Vancouver real estate sales down
Vancouver real estate 10 year-average. We can see that 2018 sale is down since 2018
year-over-year stats for attached homes in Greater Vancouver
year-over-year stats for detached homes in Greater Vancouver

Greater Vancouver Price Cycles

By tracking detached house sales and average prices over forty years in Greater Vancouver, trends have been revealed. For example, the last long-term cycle started in October 1987 and extended into 1996. It was during this cycle when the average house price grew 190-percent to a peak in February 1995 of $286,000. It was at that point when the average price started to drop and fell a total of 19-percent in December 1996.

It took six years, until November 2002, for the average house price to reach that peak following a period of recovery. REBGV analyst Dane Eitel verifies the 40-year charting and states that over the course of those four decades there has been a “consistent pattern of short-term cycles that have always led to higher prices after a breakout.” The most recent price peak was an average of $1.8-million in May 2017 and Eitel says that price won’t be matched until late 2023.

Predictable Patterns Mean Future Sales

Technical charting is a common practice in the equity market and is a useful tool for investors who buy and trade. The same method of charting in the real estate market reveals cycles. These cycles provide the data necessary to predict certain buying and selling trends. However, there are also outside influences that can be tracked and tend to show similar patterns.

Politics Has An Impact

Eitel explains that the current conditions in the Greater Vancouver real estate market bear a striking resemblance to the conditions that existed in the 1990s. He cites November 1993 when there was a Liberal Prime Minister and BC had a NDP Premier. The average detached house price at the time was $347,300. The two parties were in power until June 2001 and the Greater Vancouver detached house average sale price increased 6%.

Based on this data, Eitel predicts the market will drop from the higher end of the price scale and see sales in the lower half of that range during 2019. He also feels this trend will last for several years. Regardless, he adds that you can buy anytime in the Greater Vancouver region and still experience value growth in your property within ten years.

The CMHC Also Expects Market Growth

A forecast from the Canada Mortgage and Housing Association shares the same belief of sales increases in the Greater Vancouver real estate market as the BCREA and REBGV. Their forecast points to a sales trough in MLS properties with a level of recovery during 2019 and into 2020. The CMHC also states that average prices will eventually decline “as demand and supply find a new balance.”

As for the housing demand in the Lower Mainland, the CMHC estimates that the demand has suffered due to slower population and employment growth in the region. However, with overall economic conditions considered favourable, they still have a positive outlook for the market in 2019 and beyond. These conditions nod to continued growth making the region strong on many fronts.

Higher Sales With Prices Dropping

The CHMC forecast essentially echoes the other sources noted above. They predict higher sales figures in the coming months with sale prices expected to drop as time passes. The main factor contributing to the CMHC forecast is housing policy changes from all government levels. This has resulted in “an evolution of short-to-medium-term home price expectations.” This shows a relative decline compared to the prices from a year and two years ago.

In Conclusion

If trends are any indication, and in the real estate market they are valuable tools used to predict future activity, there is no better time to invest in the Greater Vancouver housing market. Average sale prices are dropping so selling your home now would be beneficial to you with prices expected to drop further in the coming months. If you are seeking your first home in the region, sale prices are dropping and will remain lower than recent average highs for many months to come. In other words, the real estate market in Greater Vancouver is going to be a hot spot in the province before too long.

 

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Renting Vancover Condos : What is the Return on Investment (ROI)?

Forget gold, “invest in Vancouver real estate” is the message from the world’s biggest asset manager, Laurence D. Fink. Despite the craziness of Vancouver real estate, what is the actual ROI  these days base on rental income?  We all agree that the housing price is not going to be uplifting as fast as was it was  3 years ago. Many people are not in rush to sale or to buy a property. Instead, people a holding them and renting the units out.

1 & 2 bedroom condo has always been a popular option to purchase and rent due to high demands. Let’s look at the overall ROI in the major cities in Greater Vancouver.

Thanks to the latest information from rentboard.ca and zolo.ca. Below is the calculation:

 

Vancouver condo purchase rate of return ROI - rental
Vancouver condo purchase rate of return ROI – rental

 

Condos in Yaletown still remains competitive on rental ROI.

 

 

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The Captivating Side of Vancouver’s Real Estate Market and Current Trends

Vancouver is the highest populated city in Canada. It’s classified as the top-five global cities with a good and affordable quality of life. It was ranked top 10 in the world’s most well-living towns and. This article reports the latest real estate statistics in Vancouver. It also provides an extensive analysis of all the real estate news and trends.

Vancouver’s real estate news economic trend has been forecast to grow to 2.5% in 2018. This shows an upward direction from recent years. From recent surveys in Canada, there’s a high investor demand and redevelopment opportunities expected to take place. However, most investors and regional developers expect an increase in interest rates, and it impacts on the policy changes. This will lead them to be more reserved or conservative in 2018. Due to this, the industrial veterans plan on preparing for a turnaround by:

  • Being more choosy and not in a rush in making their portfolios
  • Efficiency in operations
  • Holding off acquisitions by maintaining the present state of affairs
  1. National Market Stats

Vancouver shows a favorable real estate market. Looking at the recent months, home buyers have been less active thus leading to a significant drop in the prices of all housing types. This is the best time for buyers to purchase houses since there are more choices to choose from. Also, the competition is less as compared to the market in the recent years.

  1. E-commerce Growth

There has been an evident an noticeable expansion in the country’s logistics and distribution sector due to the drastic industrial growth in Vancouver. This follows an initiation for creation for more industrial space. The increase in automated warehouses and centers of distribution has led to increased demand for facilities that are highly wired.  In conclusion to this, the future demands development of more industrial space to meet requirements of the e-commerce driven continent.

  1. The Retail Sector

The rapid growth in online shopping and consumers has greatly and continuously impacted Vancouver’s retail sector. This has created another perspective/picture for retail property across the country. The most critical success factors for retail property owners and investors will be based on flexibility and creativity. Retail centers must upgrade their shops to be areas that can not only provide shopping needs but also:

  • Have a variety of other services
  • Building public spaces
  • Having cultural programs
  • Having events etc.
  1. The Condominium Sector

In future, the condominium sector is said to perform and with high demand in most markets steadily. In the downtown of Vancouver, the condo units are attractive to young professionals. However, the retiring employees prefer living close to the urban centers enjoying their more carefree condo. In conclusion, the condo sector is evolving in alignment with the demand and new needs.

  1. The Single-family Residential

In 2018 the country’s economy has been forecasted to grow to only 2%. This growth is expected to force most Vancouver residents to buy new homes. Compared to the year 2000, the number of built homes has also increased by more than half, since 2-3 dwellings are constructed currently by multi-family.

  1. Rental Properties

Most built rental properties are seen to be performing well in Montreal, Quebec City, and Halifax. However, it is noted that, in Vancouver, more rental properties are being built, but emerging taxes and regulations are a significant challenge for them Quebec residents mostly look for desirable places, and they prefer moving to centrally located houses near their workplace. Halifax also records a large number of condo stock ordered online, but a significant cost advantage is noted in rental offers.

Do you know

AirBnB is implementing new government tax starting October 2018? This is what some AirBnB owners in BC have received in the past few days.

 

CURRENT TRENDS AND DEVELOPMENTS

  1. Government Policies

Government policies will have an impact on the affordability of houses. They will not only solve the problems at hand, but they will create merging problems. As most Vancouver residents think of their housing expectations, other cities are making great milestones in densification projects.

Some of its regions demand that the government needs to address House affordability as a serious issue. Others are of the opinion that the approved projects take too long and are also too expensive. In the short term, the supply of houses could increase significantly when municipalities fasten the process and reduce fees as well.

According to a monthly report done in August 2018, the demand for homes decreased significantly by 36.6%, as compared to August 2017. Also, a 6.8% decline is observed in August, as compared to July.

  1. Emerging Technologies

Technology always has a high impact on our daily lives and day to day activities. Technology and data has helped real estate companies in Vancouver;

  • Make better and well-thought decisions
  • Understand their customer needs
  • Identify new and profitable opportunities
You may review annual comparsion (Aug 2017 vs Aug 2018) here

Data and technology are being used by real estate companies in Vancouver to make better decisions. Companies should be willing to invest in modern IT equipment and data infrastructure to help them run effectively. Also, companies should, therefore, make sure that they hire the right people with the professional skills to interpret the data and ask the right questions.

  1. Affordability of Detached Homes in Vancouver
metro vancouver housing gap
metro vancouver housing gap

Most Vancouver residents earn an average income. This being the case, recent reports by real estate portal Zoocasa, shows that purchasing a detached house across Vancouver is highly unaffordable. However, this could be affordable for someone who has an extra source of income.

Zoocasa checked a report from August’s detached home’s prices, and the least income necessary to buy such property based on a 20% deposit. The expected income was then compared to the actual average income per household in each area. This was all in efforts to get the local house-cost to the income gap.

Below is an info-graphic chart showing the ranks of various Vancouver regions stating the income required to purchase a detached house, from the least to the most affordable:

From the info-graphic income gaps reports above, Vancouver West was seen to have the highest price of detached homes with a figure of $2,832,600. It’s then closely followed by West Vancouver with a higher income gap, and then Richmond falling in the third place with a lower income.

West Minister who takes 13th place out of 21 areas, also showed a report showing a gap of $92,810 between the average incomes to the income required to buy a normal house. Also, cities like Maple Ridge are seen to strain still to obtain an average income that should be more than $34K less, required to buy a normal house.

Conclusion

It’s important to note that although Vancouver Real Estate is expected to lead all Canadian cities with 2.5% in GDP, every real estate market has its problems and opportunities.

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5 Reasons Why Vancouver Real Estate Prices Are So Crazy

The city of Vancouver belongs to the Greater Vancouver Regional District. This dynamic city has the qualities of a port city and the charm of the Canadian mountains. It is impossible to talk only about the city of Vancouver, not to mention the surrounding districts such as West Vancouver, Richmond or Surrey to mention but a few.  Living in Vancouver means living in one of the most cosmopolitan and highest-quality cities in the world. All this raised it to the highest standards in real estate development worldwide and therefore housing prices are stratospheric. The reasons that real estate prices are so crazy:

1. Quality of Life:

This beautiful and dynamic city is located on the Canadian Pacific coast and belongs to the province of British Columbia. Its 631,486 inhabitants make up 1/5 of the total population of Greater Vancouver. What were once clearly differentiated districts are now confused in their boundaries. For the people of Vancouver, moving to Surrey or West Vancouver makes no substantial difference.  Whether you travel by metro, bus or car, you will always feel safe and have easy access to various services. It doesn’t matter where you are in the city or Greater Vancouver. In Vancouver, you will discover the versatility of modern living combined with the rural and wild essence of its surroundings.

 

2. Multicultural Microcosms

The people of Vancouver are the corollary of Western Canada’s most striking cultural syncretism. You will enjoy an exceptional cultural experience just by traveling from West Vancouver to Richmond. And even in the city center itself. Multiculturalism transformed Vancouver into a multilingual city beyond French or English. Cantonese, Mandarin, Spanish, Hindi or Tagalog may be the dominant languages in some places. So much so that you won’t be surprised to find posters that advertise “English is spoken here” as something exceptional.

Vancouver’s cultural syncretism does not overshadow the classic gleam of buildings that express the finest style of Canadian cultures such as The Orpheum, Queen Elizabeth Theatre, Vancouver Playhouse and the extraordinary hanging bridge of Capilano. These coexist with unique spaces like Chinatown.

 

3. High-Class Immigration

For the middle and upper classes of the Far East, Vancouver has all the qualities of a western city, with none of its faults. This unique appeal has increased the demand for housing for thousands of Chinese immigrants, who find Vancouver an exceptional city. Air connections allow you to travel in as little as 11 hours between Vancouver and Beijing. As a result, while house prices around the world have plummeted since 2008, it did not stop rising in Vancouver until 2017.

4. Attractive for Investors

Cultural versatility has made Vancouver a magnet for foreign investors. These investors discovered in Vancouver all the advantages of a modern western city, with the exceptional adaptability that results from the convergence of multiple cultures in one place.  In addition to the Port of Vancouver, there are powerful industrial and commercial conglomerates, which offer investors comparative advantages over other locations.

Along with the investors comes the fresh money, which increases the value of the properties. This trend remained stable until 2017, when real estate prices began to decline. This is a consequence of the market contraction of up to 14.6% lower than the sales of the previous year. However, in the real estate market, the decrease in prices stimulates investors. It is quite likely that the price crazy in Vancouver will continue.

5. Variety of Offers

There are substantial differences between real estate prices depending on the location, whether it is within the city of Vancouver or the Greater Vancouver. West Vancouver has the most expensive homes that can range from $3,900,000 for a three-bedroom home to over $20,000,000,000. There are also other less expensive locations such as homes located on Fraser Av. which can range in price from $400,000 to 1,200,000. There is a wide range of offers, which sometimes stuns potential buyers.

Vancouver the Best Place to Live:

The 2016 Foreign Buyers Tax regulations imposed a 15% tax rate, and later on has increased to 20% in February 2018.  This legislation affected the real estate market, significantly decreasing sales compared to the last ten years.  However, even after the effects of the Foreign Buyers Tax, investors timidly continue to buy. No further explanation is needed. You already know the reasons: Vancouver the Best Place to Live.

 

 

 

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Vancouver Real Estate: Buy Now or Wait for Stability?

Vancouver, one of the largest Canadian states, is known for having the most unaffordable real estate conditions in Canada, and is currently being rated as the most unaffordable in the entire North American market! Fluctuations in Vancouver’s real estate market put it under continuous evaluation and analysis in attempts to provide the residents with educated suggestions on their investments in residential properties. The July/August 2018 residential properties market in Vancouver has been particularly remarkable with abnormal sales rates and price variations.

Summer 2018 Sales Rate in Vancouver

While the summer season is generally known to be a dormant period for the real estate market, this year’s summer sales in Vancouver are significantly lower than previous year’s rates. In fact, the reported values of 2,070 sold properties in July 2018 is the lowest that the market has seen since July 2000. The estimated overall property sales rate in July 2018 has been reported to be 14.6% less than the previous month (June 2018) and around 30.1% less than that of July 2017.

These reduced rates evolve from the decreased demand for the three main types of residential spaces available in Vancouver: the detached homes, townhomes and apartments. The decrease in demand can be resorted to more strict lending requirements and higher mortgage rates and has been particularly observed since the introduction of the Foreign Buyer Tax in 2016. This tax required owners of properties valued between $3M and $4M to pay 0.2% surtax, which is raised to 0.4% for properties valued above $4M.

Vancouver real estate August 2018
Vancouver real estate August 2018 :  Month-over-month changes

 

 

How much of the Available Properties was Actually sold?

As a result of the low demand, the percentage of residential spaces that were actually sold when compared to the total available houses (also known as Sales-to-Active-Listing Ratio or the Absorption rate) is only 17.1%, such that only 27.3% of the available apartments, 9.9% of the available detached homes and 20.2% of the available townhouses were actually sold over the course of the month. These percentages are the lowest that have been observed in Vancouver’s real estate market over the past 30 years, and detached houses are found to be the most impacted by the low demand.

The market has begun to absorb and adjust to the new realities. We expect an uptick in sales vaolumes and prices during the 2nd half of 2018

Did Prices really Change this Summer?

The benchmark price for apartments in July 2018 is 0.5% less than that in June 2018, whereas the percentage is 0.6% for detached homes and 0.4% for attached homes/townhomes. These percentages are however still higher than Summer 2017, but reflect a deceleration in the growth rate. This is the alarming part! A slow growth rate will ultimately lead to ‘negative growth’ which is basically a reduction in prices. This is anyway expected due to the decreased demand, but is influenced by several other factors that impact the market’s supply-demand curves such as the applied surtax and the high mortgage rates. As a result, the majority of buyers are now adopting a “wait and see” approach where they observe the market status for few more months before taking any actions. Hence, houses and apartments are taking longer to be sold and may even require price adjustments.

 

Have a look at the latest stats by SnapStats

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Metro Vancouver Home Sale Supply Reaches Three-Year High

The supply of homes for sale in Metro Vancouver is rising but residential home sales in the region fell by 37.7 per cent in June. According to a report recently released by the Real Estate Board of Greater Vancouver (REBGV), home sales were 28.7 per cent below the 10-year June sales average thanks to stubbornly high prices even as more houses were added to the market.

“Prices are slow to adjust,” said Tom Davidoff, real estate economist with the University of British Columbia’s Sauder School of Business. “The price momentum has certainly slowed and there is reason to think you will see a further softening of the market going forward. Before prices fall, you tend to see sales activity fall first.”

On the higher-end part of the market, prices are also dropping. In West Vancouver, the benchmark price for detached properties slipped to $3,392,500 in June, down 6.5-per-cent since 2017.

Prices could also continue to fall thanks to an annual 0.2-per-cent property surtax that is being imposed in British Columbia on homes valued above $3-million and up to and including $4-million. For homes valued above $4-million, a 0.4-per-cent annual rate applies. This means the owner of a property assessed at $4-million will pay $2,000 in extra taxes next year, while the owner of a $6-million home will have to pay around $10,000.

Bad News for Taxpayers Could Be Good News for Home Buyers

As the demand for homes declines, a buyers’ market could emerge in Metro Vancouver. After all, price growth has also slowed since June in the sale of townhomes and apartments.

According to the REBGV, the sales-to-active listings ratio for all property types in June 2018 was 20.3 per cent. By property type, the ratio is 11.7 per cent for detached homes, 24.9 per cent for townhomes, and 33.4 per cent for condominiums.

Generally, analysts say home prices can start to fall when the ratio dips below the 12 per cent mark for a sustained period. Conversely, home prices often rise when the ratio surpasses 20 per cent over several months.

Brendon Ogmundson, deputy chief economist with the British Columbia Real Estate Association says lower demand is bringing most markets around the province back into more balanced conditions after years of inflated prices. But, it’s a change that is not happening quickly.

Climbing Inventory May Lower Vancouver Home Prices… Slowly

In June, 11,947 homes of all types were listed for sale on the Multiple Listing Service (MLS), up 40.3 per cent from June last year. Also, the composite benchmark price for all residential properties in Metro Vancouver in June was $1,093,600. This represents a 9.5 per cent increase over June 2017 and is virtually unchanged from May 2018.

Benchmark prices in Greater Vancouver for detached houses were up 0.7 per cent over the past year to $1,598,200. Sales of detached homes in June 2018 reached 766, a 42 per cent decrease from the 1,320 detached sales recorded in June 2017.

Apartment sales reached 1,240 in June 2018, a 34.9 per cent decrease compared to the 1,905 sales in June 2017. The benchmark price for an apartment is $704,200. This represents a 17.2 per cent increase from June 2017 and a 0.4 per cent increase compared to May 2018.

Attached home sales in June 2018 totaled 419, a 37.3 per cent decrease compared to the 668 sales in June 2017. The benchmark price of an attached home is $859,800. This represents a 15.3 per cent increase from June 2017 and is virtually unchanged from May 2018.

“Buyers are less active today,” Phil Moore, REBGV president said. “This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years. Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity.”

A fourth increase in one year from the Bank of Canada on its interest rate is also making buyers a little apprehensive with the rate now at 1.5 per cent. Still, government intervention and an overall decline in home sales mayl be enough to help make the Metro Vancouver housing market more affordable? Only time will tell.

 

 

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2018 Real Estate Pricing 10-Year Overview

Vancouver obscure a Major Market Correction

For years the Real estate industry has been among the most lucrative sector in the world. The sector has made some people who decided to invest in the sector super rich. Over the years the sector has grown tremendously. It is not surprising to see foreign investors pouring millions of dollars in the same industry. In the past real estate in Vancouver, was dominated by the local investors. However, recent stats have shown that the trend is slowly changing with non-resident slowly taking a piece of the real estate pie. These recent findings can be attributed to the hues and cries caused by activists and academics who believed that recent increase in Vancouver properties prices was due to non-resident purchases.

Greater Vancouver Real Estate pricing May 2018
Greater Vancouver Real Estate pricing base on May 2018 Stats from Greater Vancouver Real Estate Board

 

In 2017 research was conducted by Statistics Canada to determine the claims from activist and the academics. In December 2017, the agency released its first poll of data. According to the data provided by Statistics Canada, 7.1 % of the property owned in Vancouver are owned by individuals who do not resident in Canada (nonresidents).

Areas like Sun Peak, Whistler and Strathcona Electoral Area B (15.4 percent), have the highest rate of non-resident ownership. Leading the way is Sun Peak at 17 % non-resident ownership followed by Whistler is at 16% non-resident ownership then Strathcona at 15%. According to a statement by Andy Yang the director of the City Program at Simon Fraser University

“Out of that 16 percent (for Whistler), it’s about 1,900 units that are non-resident occupied,” He adds, “What it really gives to you is the type of marketplace that is a global one … It touches upon the ongoing challenges of housing in Whistler and Sun Peaks as workers in those cities can’t compete with this non-resident marketplace.”

Other areas which have a relatively high number of non-residents include; West Vancouver and Richmond which are 7.1% and 6.5% owned by non-residents respectively. Let’s not forget about popular tourist destination like Tofino, Fernie, and Revelstoke which are 7.5%, 6.6% and 5.2% owned by non-residents respectively.

Data from Statistics Canada also shows that 6% of the homes owned in Vancouver by residents are owned by corporations. For non-resident property, there is a general declined of properties owned by foreign corporations. Instead, most foreign investors set up Canadian Corporation then transfer the property to the Corporation saving millions of dollars in terms of tax

Studies from Canadian Housing Statistics Program (CHSP) show that more than 60% of nonresidents properties are condominium apartments. It is also important to note that these condominium apartments 50% of them are located in City of Vancouver, while 14% in Richmond

How does foreign ownership affect Vancouver Real Estate Industry?

Findings from Statistics Canada, shows that there is a big difference when it comes to the prices of houses owned by non-resident and residents. In Metro Vancouver, the average price of a single-detached home owned by non-resident is worth 2,275,900 while the average price for a single detached home for a resident is worth $1,568,100, which is 45 % lower as compared to homes owned by non –resident.

The same difference is still evident in some other municipalities across Vancouver. For instance, in the City of Vancouver, homes owned by the non-resident are valued at 26% higher than homes owned by residents. For single detached homes owned by non-resident on average are valued at $3,638,500 while for residents their single detached homes on average are valued at $2,882,60

From Global News

Not only are the values of the non-resident higher but also the sizes of their homes. From the same finding by Statistics Canada shows that non-resident own close to 4,800 sq. feet while for resident there single detached homes are close to 3600 sq. feet which are 32 % smaller than non-resident

The same price differential gap also exists in condominium apartments.  In Metro Vancouver there exist a huge differential gap between the resident owned condominium apartment which values at $ 530,800 while non-resident apartments are valued at $692,000 which is 30% higher than those of resident

Elsewhere in the City of Vancouver, non-resident condominium apartment are worth 26% more than resident condominium apartment. On average resident-owned unit is worth   $741,000, while for a non-resident-owned unit is worth $930,600, approximately 26 percent more.

It is important to note that even though the value of a non-resident real estate is higher than that of a resident. There is a significant increase in growth of the real estate industry. Findings from the Canadian Real Estate Association Home Price Index show that from January 2005 to November 2017, there has been an increase of 173.7% in the value of properties across Vancouver

However they are gaps in the study says Andy Yan, director of SFU’s City Program.  He emphasizes that the study did not take into account cover presales, which can be subjected to flipping. Flipping a unit before the completion of a unit allows non-residents to take advantage of Canada tax system and avoid foreign buyers’ tax. This existing gap has made presales especially in Vancouver to double

CONCLUSION

It is expected that the prices of real estate properties in Vancouver will continue to grow as foreign ownership continues to grow. Steve Zaretsky, Vancouver realtor explains why the real estate industry is expected to grow in the coming years

“There’s a strong belief that prices will go up and they’ll continue to go up because foreign ownership is predominant,” he said. “So as long as that narrative continues to play out, it allows locals to speculate on higher prices.”

So if you are an investor who is looking where to invest his money. Vancouver real estate is the ideal place for both local and foreign investors. With the industry expected to grow by more than 20 %, Vancouver real estate sounds like a sound investment decision.

 

 

 

 

 

 

 

 

 

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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.