Vancouver home prices fall for fifth consecutive month
OTTAWA — Homes prices edged down 0.2 per cent in February from the month before but were still 6.1 per cent higher than a year ago, according to a well-watched housing index.
The month-over-month decline was the third such retreat in the past four months for the Teranet-National Bank National Composite House Price Index, released Wednesday, which measures price changes for repeat sales of single-family homes.
In January, prices rose 0.1 per cent.
Teranet's report showed prices falling from the previous month in six of the 11 metropolitan markets surveyed.
In Canada's two hottest real-estate markets, prices in Vancouver fell 0.3 per cent, the fifth consecutive decline, while prices in Toronto rose by just 0.1 per cent. On a yearly basis, however, Toronto prices were 10 per cent higher.
Nationally, prices were 6.1 per cent higher than a year ago. In January, prices were 6.5 per cent higher.
The data is likely to show up on the radar of Bank of Canada governor Mark Carney, who has repeatedly warned that Canadians are piling on too much debt as they buy homes whose prices keep rising.
At a House of Commons finance committee meeting Tuesday, Carney warned that house prices in relation to income levels are now running 35 per cent above historical norms.
Last week, the Canadian Real Estate Association reported that seasonally adjusted sales in March rose 1.6 per cent from year-earlier levels, although the national average home price declined 0.5 per cent to to $369,677.
"It is a fact that according to CREA (the Canadian Real Estate Association) data for March, five of the 11 markets covered were rather favourable to sellers (Toronto, Hamilton, Winnipeg, Halifax and Quebec City). Overall, the Canadian market is nevertheless balanced," said National Bank senior economist Marc Pinsonneault.
Metropolitan area % change m/m / % change y/y
Calgary / -0.6 % / +1.3 %
Edmonton / -1.0 % / +1.1 %
Halifax / +0.4 % / +2.3 %
Hamilton / -0.8 % / +7.5 %
Montreal / +0.2 % / +4.4 %
Ottawa / -0.4 % / +4.6 %
Quebec / +1.6 % / +5.6 %
Toronto / 0.1 % / +10.0 %
Vancouver / -0.3 % / +6.2 %
Victoria / -1.1 % / -1.7 %
Winnipeg / +0.2 % / +8.2 %
National Composite / -0.2 % / +6.1 %
Source: Teranet-National Bank National Composite House Price Index
Sales activity reported for the Whistler and Pemberton areas for the first three quarters of this year indicates a strong increase in the interest in real estate purchases as compared to the same period in the previous two years. All categories, other than single-family building lots, showed significant increases in unit sales volume as compared to the first three quarters of last year. Sales values continue to consolidate as the lack of buyer urgency and historically high number of properties offered continue to affect price negotiation.
However, as price normally follows volume in our marketplace, the increasing levels of transactions indicate that further market-wide decline in value is unlikely. The current average sales value of a single-family home (after adjusting for outliers) is $1,295,600. For condominium hotels the average sales value is $325,000; for townhomes $649,000 and for quarter-shares $129,730. Single-family lots continue to lack sufficient sales to present a reliable picture of value trends.
Buyers of Whistler properties continue to focus on family orientated properties that they can use immediately, are in good repair, have quality construction, and have low annual ownership costs.
As lifestyle considerations are the primary motivation for the purchase decision, it is just as important to sell the experience of Whistler as it is to sell the features of the home.
The Pemberton market activity continues to be affected by the large amount of employee-orientated housing provided in the last two years in Whistler, although more rural properties and acreages continue to attract interest from both Whistler and Vancouver residents. The average sales volume in the area of a single family home is $473,800; a condominiums is $220,000; and a townhouse is $305,000. Pemberton continues to offer the best prices for a homebuyer in the Sea to Sky corridor.
Whistler Market statistics are heavily influenced by 'outliers' in activity that occur either in the bottom five or top five per cent of represented values. For the purpose of this article, the outliers have been removed from the analysis to give a better description of the general market.
Submitted by Pat Kelly, Broker/President, The Whistler Real Estate Co Ltd.
Greater Vancouver housing market sees typical spring activity in April
VANCOUVER, B.C. – May 3, 2011 – Greater Vancouver saw a typical, solid month of residential home sales on the Multiple Listing Service® (MLS®) in April, in contrast to the near record pace witnessed in the two preceding months.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2 per cent decrease compared to the 3,512 sales in April 2010 and a 21 per cent decline compared to the 4,080 sales in March 2011.
Looking back further, last month’s residential sales represent an 8.8 per cent increase over the 2,963 residential sales in April 2009, relatively unchanged compared to April 2008, and a 4.8 per cent decline compared to the 3,387 sales in April 2007.
“While it continues to be a seller’s market in Greater Vancouver, last month’s activity brought greater balance between supply and demand in the overall marketplace,” Rosario Setticasi, REBGV president said. “The year-over-year decline in April sales can be attributed to a less active condominium market on our MLS®, as there were more detached and townhome sales this April compared to last year.”
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,847 in April 2011. This represents a 23.5 per cent decline compared to April 2010 when 7,648 properties were listed for sale on the MLS®, which was an all-time record for April. Compared to March 2011, last month’s new listings total registered a 14 per cent decline.
At 14,187, the total number of residential property listings on the MLS® increased 8.2 per cent in April compared to last month and declined 10 per cent from this time last year.
“There’s considerable variation in activity within the communities in our region. This is causing home price trends to differ depending on the area,” Setticasi said. “Your local REALTOR® is a valuable resource for obtaining the most accurate, up-todate market evaluation.”
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5 per cent to $622,991 in April 2011 from $593,419 in April 2010.
Sales of detached properties on the MLS® in April 2011 reached 1,402, an increase of 2.3 per cent from the 1,370 detached sales recorded in April 2010, and a 17.8 per cent increase from the 1,190 units sold in April 2009. The benchmark price for detached properties increased 7.4 per cent from April 2010 to $879,039.
Sales of apartment properties reached 1,201 in April 2011, a 21.3 per cent decrease compared to the 1,526 sales in April 2010, and an increase of 1.9 per cent compared to the 1,179 sales in April 2009. The benchmark price of an apartment property increased 2.9 per cent from April 2010 to $409,242.
Attached property sales in April 2011 totalled 622, a 1 per cent increase compared to the 616 sales in April 2010, and a 4.7 per cent increase from the 594 attached properties sold in April 2009. The benchmark price of an attached unit increased 2.4 per cent between April 2010 and 2011 to $514,670.
Troubled development went into receivership in December, records show
West Vancouver's troubled Evelyn development is up for sale.
A Supreme Court order to place the property into receivership was made in December after the developer, Millennium Evelyn Properties Ltd., defaulted on a $72 million mortgage. Now creditors are awaiting its sale to collect their debts. That court decision had been sealed until earlier this week.
The Sentinel Hill development has been appraised at $100 million, but David Bowra, president of the Bowra Group, the newly appointed receiver for the property, said he's not sure how much it will actually sell for.
"I have no idea what it's worth; it's worth what someone will pay for it," said Bowra.
"I mean, it's a big chunk of real estate and it's a lot of money. There are probably a fairly limited number of people who could acquire a piece of property like that. And it's not just acquiring the property, it's developing it as well."
The City of Vancouver, which is owed money from Millennium Development Corp.'s Olympic Village project, is listed as one of the charge holders against Evelyn, but Bowra couldn't confirm whether or not the city will receive any money.
"I don't know if they're actually owed money or if their mortgage has been assigned, but . . . there are a lot of other people who would have to get paid ahead of them," he said.
As for the buyers who have pre-purchased 31 of Evelyn's 109 condominium units, their money is safe in a lawyers' trust, according to Bowra. And while they're free to get it back, most of them appear to want to see the project through, he said.
"The vast majority . . . are still very interested in buying a unit in the development; I think the number I heard was 80 per cent," he said.
"I'd like to think in the next 30 to 60 days, we'll have some definitive news for them, one way or another."
The District of West Vancouver is also eager to see the long-awaited project get rolling.
"I think the receiver, his job will be to deal with the property very quickly, as quickly as possible. So that, I would say, bodes well for moving ahead," said Geri Boyle, manager of community planning for the municipality.
"The community worked hard to come up with an agreement working with a developer and I think they've been disappointed to see it sit as sort of a construction site for so long."
In response to Millennium's claims that municipal approvals took longer to achieve than anticipated and "land lenders lost patience with the long process," Boyle partially agreed.
"It was a complicated process, certainly getting through the zoning probably took longer than they anticipated," she said.
No building permits have been issued to date, but if a new developer were to buy the property they could proceed under the approved master plan.
Millennium Development Corp. is behind both the Evelyn Drive project and the Olympic Village development, which is also in receivership. The latter first ran into problems when its financial backer, Fortress Investment Group, pulled out in 2008 and was replaced by the City of Vancouver. The city has yet to recover its $740-million loan.
Real estate market calm expected to follow hectic 2010 in Metro Vancouver
Home sales forecast to increase modestly across B.C. as prices stabilize
VANCOUVER - If there's one sentence to sum up B.C.'s real estate picture in 2011, it's probably "Let's take a breather."
While Metro Vancouver prices rose fairly sharply over the past year, the same wasn't true in the Interior and other parts of the province where prices were flat and sales stalled.
A combination of low interest rates, relatively stable prices throughout the province and a gradually improving economy helped by the 2010 Winter Olympics brought buyers -- especially first-time buyers -- back into the market after a recessionary slump.
Those conditions are expected to continue in 2011, although interest rates are predicted to gradually rise.
That may keep a lid on housing prices, which are also expected to rise a bit, although less than in 2010.
However, there will be no repeat of 2010's price bump.
"When you look at 2010, we saw fewer sales than 2009 [across B.C.]," Cameron Muir, chief economist for the B.C. Real Estate Association, said in an interview. "Since [July], we've seen a modest increase in consumer demand."
Muir said he expects the province will see that continue into 2011, although the sales numbers aren't expected to post any records or rise above the 10-year average.
"I'd expect housing sales to be around 80,000 to 82,000 units in 2011. We're likely to see a six-to seven-per-cent increase in housing sales this year compared to last year."
Muir said job growth and rising incomes will underpin demand, although higher interest rates in the second half of the year will partly offset the benefits of more economic activity.
"There will be a much more gradual increase in consumer demand and less volatility. There will be more stable market conditions this year."
Robyn Adamache, senior market analyst for Metro Vancouver with Canada Mortgage and Housing Corp., said in an interview that she doesn't see any huge changes this year over 2010.
"We're expecting a slight increase in sales, about five to six per cent, for 2011.
"For 2010, we were around 31,000 sales.
"For 2011, we're expecting 33,000 sales."
However, Adamache said Metro Vancouver should see much less price growth in 2011.
"In 2010, we saw a 14-percent increase in prices.
"We're calling for a three-percent increase in 2011."
Adamache said she expects that mortgage rates will creep up later in 2011, although not dramatically. "So, that will put a bit of a damper on sales."
Tsur Somerville, director of the centre for urban economics and real estate at the University of B.C.'s Sauder School of Business, said he doesn't like forecasting the future, but nevertheless believes that 2011's real estate picture will be largely determined by the speed of the recovery and the Bank of Canada's action on interest rates -- and how that reflects on mortgage rates.
Ron Antalek, a realtor with ReMax Ridge Meadows Realty, said in an interview that he's seeing an uptick in buyers who believe interest rates are heading north.
He believes there will be a modest increase in both pricing and demand this year.
"The vast majority of buyers are convinced that prices won't decline and that interest rates will rise.
"So, they feel their investment is safe.
"Sales are picking up." Mike McDougall recently took possession of a new detached home in Maple Ridge after moving to B.C. from Alberta.
"Hopefully, it was a good time to purchase," McDougall said in an interview.
"From what I hear, it was. I think there's still potential for rates to go up."
McDougall, who moved into his new home on Jan. 12 with his wife and two small children, said he was also comfortable with the price he paid.
A prominent Chinese-Canadian fears his ethnic community is being unfairly tarnished by the protest of Asian condominium owners against a proposed hospice at the University of B.C.
“People are afraid that the entire Chinese community is being painted as uncaring and afraid of a facility that would provide good for the entire community,” said Tung Chan, former CEO of the Vancouver-based immigrant services group Success.
Dozens of Asian residents in an upscale condominium highrise on the UBC campus are protesting a proposal to build a hospice next door, near Thunderbird Stadium.
The ethnic Chinese homeowners have complained that proximity to death brings bad luck in their cultural tradition. They also fear the hospice could lower their property values.
Chan’s comments were echoed on Sunday by several Asian UBC residents interviewed by The Vancouver Sun on the campus.
Most did not want to be named, for fear of causing friction among neighbours, but most agreed the controversy is painting the entire ethnic community in a bad light.
Stanley Hee said the condominium residents opposing the hospice are a relatively small group. “We don’t have this strong feeling about that,” Hee said. “They say there are some cultural differences, but I don’t think so. That’s not a good reason [not to build the hospice]; I don’t agree with that.”
Like Chan, Hee and the other residents said they feel the objections are a classic not-in-my-backyard response, similar to the response to proposed recovery houses or homeless shelters in other neighbourhoods.
Some of those surveyed said they felt there were better — more peaceful and scenic — locations for the hospice, but were not opposed to its being on campus.
Chan said many Chinese-Canadians are worried the hospice protest will convince people that Asian immigrants are unwilling to accept the values of their adopted country.
“They fear that people would then say: ‘If that is what Chinese-Canadians believe, then they don’t fit into this society.’
“And that’s a shame.”
Chan said news reports about the “culture clash” behind the protest has “brought out negative comments towards our entire group.
“Whereas the protest only involves a small group of people and is based on Nimbyism. The Chinese community is much more diverse than that, and many Chinese are very supportive of hospice facilities.”
Chan believes the protest is more about economics than culture. “People take whatever excuse they can dream up and say that they don’t want it to be in their backyard.
“If it’s in someone else’s backyard, then it’s fine.”
Chan rejected the notion that being close to dying people is taboo in Chinese culture.
He said Success facilitates visits by volunteers to hospices. “We teach people how to deal with dying people in a more sensitive way.”
The hospice, proposed by the Order of St. John and the UBC faculty of medicine, would be a 15-bed palliative care facility operated by Vancouver Coastal Health.
The site near Thunderbird Stadium was selected after a four-year process — and is considered the best of 12 possible sites on campus because of the need to link with the UBC faculty of medicine for academic and research purposes.
“The integrated research component and the proximity to the UBC faculty of medicine provide a rare service to improving health services to the most vulnerable,” said Order of St. John spokesman Peter Hebb.
There is no other hospice on Vancouver’s west side that is physically separate from a hospital, he added.
Hebb declined to discuss the protest by condo owners.
Joe Stott, director of campus and community planning at UBC, said a plan to bring the hospice proposal to the UBC board of governors in February has been postponed due to a request from the University Neighbourhood Association, for more consultation.
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