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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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Discover Yaletown – The most Happening Place in Vancouver!

At some coffee shop, you will find out from the tables around you, students discussing the sky-high costs of the city’s rent, girlfriends searching for ketchup to go with their cheese and ham croissants, and a trio of briefcase-toting experts comparing caterers for their office party. Yes! This is Yaletown life. You’ve got things to do, places to go, and people to know around Yaletown, Vancouver. It offers a very active lifestyle, beautiful condos, and the people here are really kind. Despite being a big city, it gives a great neighbourhood feel. Placed in between some of the city’s busiest lanes, Yaletown is small but crowded. Among the most patios in all over Vancouver, Yaletown is perfect for people – watching, eating, and travelling around some remarkable boutiques that aren’t found in another place. Here, you will feel like a Vancouver inhabitant. This little corner is one of the best places to live in the world.

Get a Look at a Few of the Great Things Yaletown Life Offers:

What to see and do in Yaletown?

The waterfront parks in Yaletown are a big attraction. The biggest green spaces: David Lam Park and George Wainborn Park get connected through the city’s Seawall, which runs right along the water. From walking and jogging to biking and inline skating along the Seawall, you can enjoy to the core; along with the excellent public art sprinkled along the waterfront. The neighbourhood’s chronological roots are also apparent in the form of Engine 374, pulled the foremost transcontinental traveller train into the city in 1887, on show at the Roundhouse Community Centre.

A post shared by Stacey Wagner (@dezner) on

How to Satiate your Appetite?

The platforms of old redbrick warehouses, which were once built to allow for simple loading of textiles onto trains to be sent back east are now redesigned as luminous, metropolitan patios for the ideal brunch, afternoon drinks, and great dinners. Yaletown is a wonderful place for a festive seafood dinner, a tranquil bistro meal or a comfortable family feast. You can stroll the area to choose from a bunch of dining options to have sumptuous food in Yaletown. You just need some time to discover the area’s cocktail scene and nightlife after that – with elegant lounges, sparkling and vivacious neighbourhood pubs, and clubs with lively dance floor-filling. Now, you must be craving to get the flight to spend the evening in this amazing and sparkling place!

Treat for shopaholics:

Yaletown has worth mentioning local shopping options for shopaholics as well as window shoppers. You will definitely love the stylish boutiques, gracious service, and exclusive items that the typically locally-owned shops offer. From fashionable to designer home-wares, the stores in this vicinity are peculiar, trendy, modish, and a lot of fun. You can explore Yaletown’s chic dog clothing, contemporary bathtubs, and historic chapeaus. No doubt it is the one place for the entire expert and sophisticated shopping, the most professional beauty services, and the on-trend fashions.

Excited Shopping Woman isolated on white

To conclude, let us tell you that Rogers Arena, BC Place, and QE Theatre are only a short walk away from Yaletown. Just get the tickets to experience the best concerts and sporting events there!

 

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Own a Home under $300K in City of Vancouver

Are you tired of renting but cannot afford to buy a place because of the crazy housing market in Vancouver? At the main time, you would also like to live by city center? The truth is that there are always SLIGHTLY REASONABLE homes out there as long as you have an OK job to get a mortgage, as well as updated information about the market.

Here are the reasons why you should probably thinking about OWNING A PLACE.

  • Housing price never go down in the long run, and your salary may not catch up with the increase in housing price.
  • You rents and never own a place. What about you pay the “rents” to the bank and you can actually own a place?
  • No landlord can kick you out.
  • Worse case scenario, sell the home if you really need some cash, and you can never do that when you rent.

 

How about $300k for a home in city of Vancouver ? Does that sound a little bit more reasonable?

You get 10% down payment and the rest you can mortgage.

mortgage
The mortgage rate is approximate based on the current 2-year variable rate. Please check with your bank or mortgage specialist for a more accurate rate. Calculation is completed with the Scotia Bank mortgage calculator.

Looks like you can own home with just a little bit over 1k. I am sure there are many people that pays 1k just for a single room, or for a tiny suite and old neighborhood.  What if I tell you that there are homes under 300k?

Here are the home under $300k that are available for sale in city of Vancouver (YES, it’s Vancouver Vancouver, not Barnaby, Richmond, Surrey…).  – as per December 15, 2016

109 2239 Kingsway, Vancouver, British Columbia V5N 0E5 (Built in 2011)

$253,000.00

property-17560857-largephoto-2 property-17560857-largephoto-4

 

202 930 E 7th Avenue,Vancouver, British Columbia V5T 1P6

$259,000.00

property-17641706-largephoto-1 property-17641706-largephoto-6

1003 3380 Vanness Avenue, Vancouver, British Columbia V5R 6B8

$285,000.00

property-17657701-largephoto-1property-17657701-largephoto-8

114 1149 W 11th Avenue, Vancouver, British Columbia V6H 1K4

$285,000.00

property-17527161-largephoto-6 property-17527161-largephoto-14

 

1003 3438 Vanness Avenue,Vancouver, British Columbia V5R 6E7

$299,000.00

property-17595833-largephoto-3 property-17595833-largephoto-6

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Emerging Trend Not Obvious In Vancouver Real Estate Market Stats

While properties continue to sell in the Vancouver Real Estate Market, the totals from September 2016 was 9.6-percent lower than the sales average for the month over the past ten years. However, that does not reflect the increase in listings nor does it show the new trend in housing demands.

According to the Real Estate Board of Greater Vancouver, new listings in Metro Vancouver for detached, attached and apartment properties dipped marginally over the same period from 4,846 in September 2015 to 4,799 last month. That represents a decrease of one per cent.

Listing Numbers Show Increase

 However, compared to numbers from August 2016 there actually has been a bit of a burst of activity. There were 4,293 properties listed in the month which puts September at an increase of 11.8-per cent. According to REBGV President Dan Morrison there is a good reason for the overall ten year drop in listings and that it is not a negative sign.

He says the demand for housing has shifted away from detached, attached and apartment properties in recent years. Morrison explains that the current trend is built upon a larger demand for condominiums and townhouses. He says the supply and demand conditions are directly related to this trend which does not show in the overall sales numbers.

Historic Listings Numbers Drop But Recent Numbers Rise

His statement is verified by the Metro Vancouver totals of homes currently in the sales market through the MLS system. At the end of September 2016 the figure was 9,354 – down almost 13.5 per cent from a year ago but up 10-percent from August 2016.

The number of sales also speaks loudly about the trend. The sales-to-active listing ratio was 24.1 per cent for September 2016. That’s the lowest it has been since February 2015 which signals a time frame for the existing shift in the housing market conditions.

Sales Figures Could Bring Prices Down

Actual sales of detached properties in September 2016 were 666, down 47.6 per cent from the previous year. Apartment sales experienced the same fate, down 20.3 per cent from last year at the same time with attached property sales falling 32.2 percent from September 2015.

Morrison says the change in the market conditions is providing a huge positive – it is taking away the upward pressure on pricing. Due to the level of uncertainty the REBGV President explains that price points are becoming more difficult to put in place for both buyers and sellers.

Additional Data

Other interesting facts from September 2016 in Metro Vancouver:

 

  • Detached properties spent an average of 37 days on the market and reached a benchmark price of $1,579,400
  • Apartment properties spent an average of 24 days on the market with a benchmark price of $511,800 recorded
  • Townhouse properties attained a benchmark price of $677,000 and were on the market an average of 21 days.

 

 

infographic-sept-2016
Source: rebgv.org Monthly Statistical Reports

These stats verify the emerging trend on apartment and townhouse property sales with both selling faster than detached properties. Analysts say that the longer the sales-to-active listings ratio stays above 20 per cent, the more upward pressure housing prices will experience. Pricing will see downward pressure once the ratio dips below 12 percent

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Bursting Vancouver Real Estate’s Bubble: Are We There Yet?

The latest statistics from the Greater Vancouver Real Estate Board reveal that the benchmark cost of a single detached home in Vancouver is up nearly 40% from just over a year ago. This rapid ascent has drawn the attention of retired master hedge-fund manager, Marc Cohodes. In a recent interview, Cohodes tells Global BC News Morning that he believes members of the real estate industry are using “chinese money to keep the market propped up” as part of a money-laundering scheme that Cohodes says can’t last.

Real Estate Bubble
Source: Huff Post Business Canada

Foreign Investment: Myth or Reality?

According to the Global News article about Cohodes, not everyone agrees that the influx of foreign money is due to criminal activity. However, many do agree that foreign money is a signification contributor to the high-flying real estate prices here in Vancouver. To put this belief to the test, the government of British Columbia launched a study in June to begin tracking real estate investments in the province by foreign nationals.

Initial results from the study show the dollar value of foreign investment in residential real estate between June 10 and June 29, 2016, averaged slightly over 5% province-wide. Foreign transactions represented slightly over 3% of all MLS property transfer transactions during that same time period. This indicates that the average amount per transaction is higher for foreign buyers than Canadian citizens and permanent residents. In Metro Vancouver, the total value of investments from foreign nationals was over $350 million, or 6.5% of the total investments made during the first 19 days of the study. The highest concentrations of foreign investment were found in Richmond with a 14% rate.

Across the province, 258 transactions involved Chinese nationals, which was 76.6% of all foreign national transactions. More data and details are available in the Housing Market Information Release on BC MLS Home Sales issued by the Ministry of Finance. The Ministry report indicates that new housing units are in development throughout the province. However, these developments take time. Meanwhile, the housing market remains tight. In addition, more voices lately have been calling for a tax on foreign real estate transactions. Will these factors finally burst the real estate bubble as Cohodes predicts? And if so, when?

Vancouver Condo and Detached Home Buyers Pushed to New Heights

While we wait to see what the future holds, those who want to own a home in Vancouver today are faced with steep prices and limited selection. From single-family homes to luxurious condos in Yaletown, local buyers are feeling the effects of the pricing bubble.

The Real Estate Board of Greater Vancouver reports that June residential property sales totaled 4,400 transactions. This is slightly down from May; although, higher than same-month sales last year. Looking at historical records demonstrates that houses are still moving despite the higher prices. June 2016 ranked as the highest-selling June on record, at 28.1% above the 10-year sales average. Total listings for the four-month period from March through June have also reached an all-time high.

line-up-of-close-to-60-people-langley-condo-sales-centre
Picture of people waiting in line for days to buy a new condo in Langley back in May, 2016. Source:cbc.ca

Despite an increase in listings, supply has not exceeded demand and prices for both detached and attached residential properties continue to climb. The REBGV announced that benchmark prices for attached units in June 2016 increased by 28.1% from June 2015 prices. However, this rate remains lower than the 38.7% increase in detached properties.

 

Regardless of who is investing in Vancouver’s real estate, those who work in the city still need a place to live. So what is a prospective home buyer to do? As the saying goes, “location, location, location.” Look for properties that are located in sought-after areas that will hold their value, such as a Vancouver downtown condo. In particular, the thriving community and close commute make Yaletown condos a good bet during tumultuous times. If you are in the market for a new home here in Vancouver, contact Condos in Yaletown. We can show you the best real estate the city has to offer and help you choose how to invest your real estate dollars effectively.  

 

 

Real Estate in the Greater Vancouver Overview – June 2016

june-2016-vancouver-real-estate
Source: GVRB

 

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Five things to know about Vancouver’s booming real estate market

VANCOUVER — Five things to know about Vancouver’s real-estate market:

Houses are pricey.

Statistics from the Real Estate Board of Greater Vancouver show the benchmark price for a detached house in Metro Vancouver was $1.2 million, up 22 per cent from the year before. The average price of a condo was up 14 per cent to $435,000.

 

Most expensive real estate in Canada.

The benchmark price of a property in greater Vancouver’s 16 jurisdictions was $752,500 in November, the highest in the country, according to the Canadian Real Estate Association. Prices in the Lower Mainland, which covered six communities, came in second at $661,200 and Greater Toronto was third at $572,200. Moncton, N.B., had the lowest benchmark price on the list at $157,900.

The market is booming.

This year was the Greater Vancouver Real Estate board’s second-highest November on record, with residential sales up 46 per cent above the 10-year average.

Prices are expected to continue climbing.

Dan Morrison, president-elect of the Greater Vancouver Real Estate Board, says the demand for houses remains high and supply is low, so there’s no sign that prices will fall any time soon.

People are getting fed up.

Several rallies were held in 2015 to call attention to the lack of affordable housing in Vancouver. Online, residents used the hashtag .DontHave1Million to express their frustrations with the market.

 

Source: CTV Canada