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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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Housing Sales In Vancouver Going Sour

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

A Comparative Analysis

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

Housing Price Benchmark Reaching Astonishing New Heights

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

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

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

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

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Vancouver’s Housing-Affordability Enigma

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

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

Condos Outpacing Detached Homes

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

Renters Suffering The Biggest Blow

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

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

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

 

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Vancouver Gas Price – April 13, 2018

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

Top Ten Lowest Gas Prices in Vancouver

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

Top Ten Lowest Gas Prices in B.C.

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

Historical Gas Price Charts

pricechart

National Price Trends

NATIONAL GAS PRICE AVERAGES
Current CANADA
Average

130

Regular Gasoline

Trend
Current Trend
HIGHEST
PROVINCE

141.8

British Columbia

LOWEST
PROVINCE

114.7

Saskatchewan

Fueled By GasBuddy.com

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

 

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Cost of Living Vancouver V.S. International Cities

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

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

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

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

Please include attribution to Condos in Yaletown with this graphic.

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Vancouver Real Estate March 2018 Update

Main Highlights

 

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

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Did You Hit the Jackpot on Vancouver Real Estate?

Were you part of this “WAVE”?

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

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

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

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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.