May 2008 real estate newsletter

Vancouver for Homes Monthly Newsletter

Welcome to our newsletter on Vancouver’s real estate market. We are here to help you buy or sell real estate in the Greater Vancouver area and through our partners in many areas of B.C.

May 2008

REAL ESTATE MYTHS AND REALITIES

There was an interesting article in the Vancouver Sun in the last few weeks. It looked at a number of beliefs about the real estate market and determined which were myths and which realities. See how you do in this quiz.

Albertans are buying up B.C.’s recreational property
My home's assessment tells me what the property is worth.
Real estate prices in Greater Vancouver can’t keep going up - they’re too high already.
Spring is a good time to buy or sell a residential property.
A bathroom or kitchen renovation is the best way to add lasting resale value to
your home.
Swimming pools are a negative when it comes time to resell.
More than half of all Lower Mainland houses will soon be worth more than $1 million.
A house with a south-facing backyard is likelier to appreciate more than the equivalent house facing the other way.
New condominiums are commonly flipped for a profit before they have even been occupied.
You can save money by buying a “fixer-upper” and renovating.
Buying a home outside the city and commuting to work is a good way to save money.
A home that has been “staged” using professional design principles to make it more appealing to buyers sells quicker and for more.
Buying an additional property to rent out is a solid investment.
The Bank owns my house.
You’ve just sold your house and made a ton of money on it.

The answers:

Albertans are buying up B.C.’s recreational property
True. Of the people buying secondary properties in BC, 67% were from Alberta, 18% from the rest of Canada and 6% from outside North America.
My home’s assessment tells me what the property is worth.
Myth. Homes are assessed once a year, but the market has been very active in recent years and the market value has often outpaced the assessed value - but not always.
Real estate prices in Greater Vancouver can’t keep going up - they’re too high already.
Myth. This is one belief that we keep hearing. It seems to be a myth because over time prices have continued to rise, even though there have been times when prices have dropped (e.g. early 1980’s). Metro Vancouver continues to grow in population, with land supply limited by mountains and ocean, we can expect land prices to increase.
Spring is a good time to buy or sell a residential property.
True - more buyers are around in spring, but buyers may fare better in the fall or winter when there is less competition.
A bathroom or kitchen renovation is the best way to add lasting resale value to
your home.
True. Kitchens are number 1 and bathrooms number 2.
Swimming pools are a negative when it comes time to resell.
Myth (mostly). In areas where pools are less common, a pool can set your property above the competition.
More than half of all Lower Mainland houses will soon be worth more than $1 million.
Myth. It may happen at some point.
A house with a south-facing backyard is likelier to appreciate more than the equivalent house facing the other way.
In general this is True. But there are exceptions due to other factors, like being on the waterfront or having views.
New condominiums are commonly flipped for a profit before they have even been occupied.
Myth. This has been true at various points (e.g. 1981) but, for now, the statistics do not suggest that flipping is common.
You can save money by buying a “fixer-upper” and renovating.
True. “Sweat equity” does pay off, especially if you are the handyman. Hiring a contractor eats into your profit and may not pay so well.
Buying a home outside the city and commuting to work is a good way to save money.
True. Housing costs generally fall the further out of the city you go (with the exception of the north shore). Transport costs need to be factored in, as well as the time it takes.
A home that has been “staged” using professional design principles to make it more appealing to buyers sells quicker and for more.
True. As realtors we see this all the time. A staged home helps buyers imagine living in it.
Buying an additional property to rent out is a solid investment.
True. Choose wisely and yes it can be a good investment.
The Bank owns my house.
Myth. But it is likely the bank’s mortgage is registered on title - but the home is yours.
You’ve just sold your house and made a ton of money on it.
True. In the last year the average sale price in the City of Vancouver was 13% higher, or a “profit” of nearly $108,000. Of course the profit is only good if you are leaving the area or down-sizing.

How did you do on the quiz?

If anyone wants a copy of the full article, download it here.

REAL ESTATE MARKET

MARKET STILL BRISK BUT LISTINGS UP

An influx of new listings entered the Greater Vancouver housing market in April 2008, while residential sales reduced slightly compared to the same period a year ago.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in
Greater Vancouver totalled 3,218 in April 2008, a decline of five per cent from the 3,387 sales
recorded in April 2007, and a 3.8 per cent drop from the 3,345 sales in April 2006.

New listings for detached, attached and apartment properties increased 25.6 per cent to 7,010 in
April 2008 compared to April 2007, when 5,580 new units were listed.

“Residential sales continue to be strong, but there is a lot more choice on the market today. This
is good news for a market that has been defined by record-breaking activity for most of this
decade,” said REBGV president, Dave Watt.

“Despite this seeming re-balance between sales and listings, it took, on average, six fewer days
to sell a home in Greater Vancouver compared to the previous year, with a days on market
average of 33 in April this year,” said Watt.

Sales of detached properties declined 7.8 per cent to 1,293 from the 1,403 detached sales
recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink
Housing Price Index®, for detached properties rose 11 per cent from April 2007 to $771,321.

Sales of apartment properties in April 2008 declined 2.4 per cent to 1,317, compared to 1,350
sales in April 2007. The benchmark price of an apartment property increased 9.6 per cent from
April 2007 to $389,070.

Attached property sales in April 2008 are down 4.1 per cent to 608, compared with the 634 sales in April 2007. The benchmark price of an attached unit increased 10.5 per cent between April 2007 and 2008 to $477,900.

METRO VANCOUVER BENCHMARK

The Vancouver Real Estate Board publishes a benchmark that tracks the price of a benchmark property across the region. There are three categories:

Detached
These are houses, sometimes called single family homes
Attached
This refers to townhouses and half duplexes.
Apartments
This means apartments within high or low rise buildings.

I have set out the benchmark prices across the region, with the annual percentage price rises in brackets and 5 year percentage rise in square brackets.

DETACHED BENCHMARK PRICES

Detached Greater Vancouver $771,321 (11%), [3yr: 48.7%]
Burnaby $770,188 (11.3%), [3yr: 50.9%]
Coquitlam $665,125 (8.8%), [3yr: 48%]
South Delta $684,140 (13.2%), [3yr: 45.7%]
Maple Ridge $462,276 (7.9%), [3yr: 37.3%]
New Westminster $589,014 (11.7%), [3yr: 43.1%]
North Vancouver $913,457 (11.7%), [3yr: 45.1%]
Pitt Meadows $480,838 (4%), [3yr: 30.2%]
Port Coquitlam $549,753 (13.8%), [3yr: 43.4%]
Port Moody $813,877 (10.4%), [3yr: 51.2%]
Richmond $769,867 (11.4%), [3yr: 54.4%]
Squamish $591,919 (25.6%), [3yr: 44.2%]
Sunshine Coast $428,710 (5.9%), [3yr: 34.9%]
Vancouver East $691,988 (10.2%), [3yr: 51.8%]
Vancouver West $1446,724 (13%), [3yr: 61.7%]
West Vancouver $1591,055 (12.2%), [3yr: 43.7%]

ATTACHED BENCHMARK PRICES

Greater Vancouver $477,900 (10.5%), [3yr: 46.7%]
Burnaby $460,487 (10.1%), [3yr: 45.8%]
Coquitlam $427,412 (9.2%), [3yr: 41.8%]
South Delta $467,973 (19.6%), [3yr: 50%]
Maple Ridge & Pitt Meadows $320,420 (7.7%), [3yr: 41.2%]
North Vancouver $602,957 (7.8%), [3yr: 44.8%]
Port Coquitlam $404,316 (9.7%), [3yr: 44.4%]
Port Moody $415,389 (11.7%), [3yr: 49.9%]
Richmond $467,423 (11.4%), [3yr: 49.2%]
Vancouver East $530,952 (14.5%), [3yr: 54.7%]
Vancouver West $729,962 (10.7%), [3yr: 47.8%]

APARTMENT BENCHMARK PRICES

Greater Vancouver $389,070 (9.6%), [3yr: 53.1%]
Burnaby $348,523 (10.9%), [3yr: 53.1%]
Coquitlam $300,286 (8.9%), [3yr: 55.3%]
South Delta $364,169 (16.3%), [3yr: 55.6%]
Maple Ridge & Pitt Meadows $264,596 (5.9%), [3yr: 63.3%]
New Westminster $300,358 (6.9%), [3yr: 54%]
North Vancouver $391,673 (5.8%), [3yr: 47.8%]
Port Coquitlam $260,563 (8.9%), [3yr: 60.1%]
Port Moody $312,294 (6%), [3yr: 55.6%]
Richmond $322,710 (10.9%), [3yr: 56.2%]
Vancouver East $331,630 (12.6%), [3yr: 65.4%]
Vancouver West $494,011 (9.8%), [3yr: 49.5%]
West Vancouver $673,399 (2.4%), [3yr: 37.5%]

TIME TO BUY OR SELL

If you are looking to buy or sell property then we can help you. We work for you either as a buyer’s agent, to help you find your next property, or as a listing agent. If we cannot help you personally we have excellent partners in most areas within B.C. We and our partners are licensed realtors with the experience and knowledge to help you make your next move a success. Call us to find out how we can help you now.

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