Glen Korstrom
Other

The City of Vancouver’s task force on affordable housing released its first recommendations March 12.

Suggestions include:

• expediting housing development applications that provide affordable rental premises;
• developing a strategy to implement inclusionary zoning of rental housing in the Cambie corridor;
• exploring the viability of using city-owned land to leverage affordable rental housing as well as non-profit and co-op housing; and
• advocating to the provincial government to streamline approvals for fee-simple row housing.

The task force is focusing its efforts on low- to middle-income households, ranging from an individual income of $21,500 to a combined household income of $86,500. This income range is to cover groups such as low-income singles, couples struggling to buy their first home and seniors seeking to downsize without leaving their neighbourhoods.

“The task force’s quick start recommendations will bring clarity and momentum to the city’s overall affordability strategy,” said Mayor Gregor Robertson.

Experts say it’s impossible to say for certain when, or if at all, a bubble is going to pop. However, they agree that there are clear warning signs when things in the market aren’t quite right.

Gail Johnson
Other

How many times have you seen headlines shouting that the real-estate bubble is about to burst?

In fact, experts say it’s impossible to say for certain when, or if at all, a bubble is going to pop. However, they agree that there are clear warning signs when things in the market aren’t quite right.

Darrell Cook of Edmonton’s Realty Executives Progressive recalls the real-estate bubble in the Alberta capital in 2006 and ’07.

“Supply was very low, and the demand for housing and investment property was great,” Cook says. “Our market saw multiple offers on many properties with a great number of homes selling above list price for a sustained period of time. At one point, some property values were increasing by $25,000 to $50,000 per month or more.”

Low interest rates coupled with rapidly increasing prices can create a storm of panic-buying with investors hoping to cash in, he explains.

“Buying a second or third property can be a great opportunity, but it can also be risky business, especially in a rapidly escalating market,” Cook says. “As a result of the bubble bursting in 2007, today many properties are still valued lower than they were at the height of the market.”

Craig Alexander, senior vice president and chief economist of the TD Bank Group, says that bubbles like the one that burst in Edmonton are always obvious—in retrospect.

“We can make educated guesses as to whether the price of real estate makes sense based on economic fundamentals,” the Toronto-based Alexander says. “But in truth we can’t actually predict with accuracy that something is a bubble until after it’s corrected.”

There are several measures that can be used to assess whether real estate is overvalued. One is the market’s price behaviour in isolation.

“Traditionally a bubble is formed when you have rapidly rising and accelerating price growth until such time when something suddenly changes behaviour, then it crashes.”
From this perspective, the good news is that in Canada, there aren’t the typical warning signs of a bubble nationwide. 

Housing prices cooled down in late 2008 early 2009 and have picked up again, Alexander notes, but they’re not escalating at the kind of breathtaking rate that would characterize an impending burst.
Another way to test for a bubble is to assess how the real-estate market is doing relative to underlying economic fundamentals in each market.

“You look at what’s happening with employment, what’s happening related to income and to capacity of households to borrow; you’re really looking at affordability,” Alexander says. “In other words, what is the behaviour of the prices of homes relative to average family income?”
Demographics also come into play.

“Over the long haul, the main driver of real-estate prices is household formation: the number of people you need to provide shelter for. If you have very strong population growth you can generally support stronger real-estate gains. If you have slowing population growth, you would expect some moderation in demand for real estate.”

Then there are geographical factors. Land scarcity—such as in Vancouver and Toronto, for example—drives up the value of real estate.

Put all those fundamentals together for an overall Canadian picture, and Alexander boils things down to this: “Our assessment is that on a national average basis, real estate is probably overvalued by 10 to 15 percent,” he says.

“It’s not a U.S.-style overvaluation. It’s not as dramatic as some market pundits are talking about. But if you actually unwound 10 to 15 percent overvaluation in a period of one year it would be a housing-market correction three times bigger than what we had during the early-90s correction.

“Again, it’s not US-style overvaluation, but at same time you shouldn’t be complacent about the risks.”
And there are certain Canadian cities that are closer to trouble than others.

“When you look at the fundamentals…the Vancouver market is definitely flashing a bright red light,” Alexander says. “Think of it as a graph: you can plot home prices in Vancouver versus personal income, and the slide looks like a hockey stick; it’s shooting up toward the moon. When you look at it, you think ‘That can’t last.’

“I can’t tell you whether something’s a bubble until after it bursts, but I can tell you when something makes no sense, and Vancouver home prices on the basis of domestic affordability make no sense.

“The other market we are concerned about is Toronto condos,” he adds. “There are so many condos under development there’s a fundamental question of the ability of the market to absorb them all as they come onto market.”

Based on economic figures, Alexander says two Canadian cities are flashing a yellow light: Quebec City and Montreal. 

“These two cities are sending off a warning signal. The price growth that has happened in those two markets seems excessive relative to employment, income, and borrowing capacity.”

Alexander points out that sufficient data is lacking when it comes to Canadian real estate in general: little information exists regarding how much property is being purchased by foreigners or how much is being bought strictly for speculative reasons. 

“This basically means you don’t have enough data to make definitive assessments, and this is one reason why you have debates,” Alexander says. “What I’m really saying there is overvaluation.

“The data that we have does not support the argument that there’s a big national bubble, but you could actually argue there are bubble-like qualities in certain markets. And Vancouver is definitely the market that is setting off most warning signals.”

Experts say it’s impossible to say for certain when, or if at all, a bubble is going to pop. However, they agree that there are clear warning signs when things in the market aren’t quite right.

Gail Johnson
Other

How many times have you seen headlines shouting that the real-estate bubble is about to burst?

In fact, experts say it’s impossible to say for certain when, or if at all, a bubble is going to pop. However, they agree that there are clear warning signs when things in the market aren’t quite right.

Darrell Cook of Edmonton’s Realty Executives Progressive recalls the real-estate bubble in the Alberta capital in 2006 and ’07.

“Supply was very low, and the demand for housing and investment property was great,” Cook says. “Our market saw multiple offers on many properties with a great number of homes selling above list price for a sustained period of time. At one point, some property values were increasing by $25,000 to $50,000 per month or more.”

Low interest rates coupled with rapidly increasing prices can create a storm of panic-buying with investors hoping to cash in, he explains.

“Buying a second or third property can be a great opportunity, but it can also be risky business, especially in a rapidly escalating market,” Cook says. “As a result of the bubble bursting in 2007, today many properties are still valued lower than they were at the height of the market.”

Craig Alexander, senior vice president and chief economist of the TD Bank Group, says that bubbles like the one that burst in Edmonton are always obvious—in retrospect.

“We can make educated guesses as to whether the price of real estate makes sense based on economic fundamentals,” the Toronto-based Alexander says. “But in truth we can’t actually predict with accuracy that something is a bubble until after it’s corrected.”

There are several measures that can be used to assess whether real estate is overvalued. One is the market’s price behaviour in isolation.

“Traditionally a bubble is formed when you have rapidly rising and accelerating price growth until such time when something suddenly changes behaviour, then it crashes.”
From this perspective, the good news is that in Canada, there aren’t the typical warning signs of a bubble nationwide. 

 Housing prices cooled down in late 2008 early 2009 and have picked up again, Alexander notes, but they’re not escalating at the kind of breathtaking rate that would characterize an impending burst.
Another way to test for a bubble is to assess how the real-estate market is doing relative to underlying economic fundamentals in each market.

“You look at what’s happening with employment, what’s happening related to income and to capacity of households to borrow; you’re really looking at affordability,” Alexander says. “In other words, what is the behaviour of the prices of homes relative to average family income?”
Demographics also come into play.

“Over the long haul, the main driver of real-estate prices is household formation: the number of people you need to provide shelter for. If you have very strong population growth you can generally support stronger real-estate gains. If you have slowing population growth, you would expect some moderation in demand for real estate.”

Then there are geographical factors. Land scarcity—such as in Vancouver and Toronto, for example—drives up the value of real estate.

Put all those fundamentals together for an overall Canadian picture, and Alexander boils things down to this: “Our assessment is that on a national average basis, real estate is probably overvalued by 10 to 15 percent,” he says.

“It’s not a U.S.-style overvaluation. It’s not as dramatic as some market pundits are talking about. But if you actually unwound 10 to 15 percent overvaluation in a period of one year it would be a housing-market correction three times bigger than what we had during the early-90s correction.

“Again, it’s not US-style overvaluation, but at same time you shouldn’t be complacent about the risks.”
And there are certain Canadian cities that are closer to trouble than others.

“When you look at the fundamentals…the Vancouver market is definitely flashing a bright red light,” Alexander says. “Think of it as a graph: you can plot home prices in Vancouver versus personal income, and the slide looks like a hockey stick; it’s shooting up toward the moon. When you look at it, you think ‘That can’t last.’

“I can’t tell you whether something’s a bubble until after it bursts, but I can tell you when something makes no sense, and Vancouver home prices on the basis of domestic affordability make no sense.

“The other market we are concerned about is Toronto condos,” he adds. “There are so many condos under development there’s a fundamental question of the ability of the market to absorb them all as they come onto market.”

Based on economic figures, Alexander says two Canadian cities are flashing a yellow light: Quebec City and Montreal. 

“These two cities are sending off a warning signal. The price growth that has happened in those two markets seems excessive relative to employment, income, and borrowing capacity.”

Alexander points out that sufficient data is lacking when it comes to Canadian real estate in general: little information exists regarding how much property is being purchased by foreigners or how much is being bought strictly for speculative reasons. 

“This basically means you don’t have enough data to make definitive assessments, and this is one reason why you have debates,” Alexander says. “What I’m really saying there is overvaluation.

“The data that we have does not support the argument that there’s a big national bubble, but you could actually argue there are bubblelike qualities in certain markets. And Vancouver is definitely the market that is setting off most warning signals.”

Protesters gather at Southwest Marine Drive siteCut

Stanley Tromp
Van. Courier

Protesters from the Musqueam Indian Band stopped construction workers from starting excavation of land they say is home to their ancient burial ground.

Workers and property owner Gary Hackett were turned away when they showed up at 1338 Southwest Marine Dr. at 7:30 a.m. Monday. The land between the Metro Theatre and The Motel nightclub is being developed for a large condominium project.

While high winds blew out the power to stores and traffic lights in south Vancouver, about 40 protesters held up signs and beat drums, while many drivers honked their horns in support. Musqueam spokesperson Aaron Wilson said the protest was necessary after talks with the developer broke down. Protesters vowed to stay until the development plan by Magnum Projects for “HQ concrete homes” is stopped.

To help find a solution to the dispute, the B.C. government has scheduled meetings this week with the band, the city and the developer.

“Our chief has been working directly with Mayor Gregor Robertson and city manager Penny Ballem,” Musqueam band manager Ken McGregor told the Courier. “They have been very sympathetic, but getting agreement with three levels of government is complex and doesn’t move as quickly as some developers might like. Everybody is in a bit of a legal box.”

In 2006, Hackett received a heritage permit to start the B.C. government’s archaeological impact assessment on the property to prepare for development of six lots. In December 2008 the province sent the draft management plan to the Musqueam Band for comment but did not receive any response from the Musqueam until the current permit application was referred to it, said Brennan Clarke, spokesperson for the B.C. Ministry

of Forests, Lands and Natural Resource Operations.

Then in December 2011, the province issued two permits to Lan-Pro Holdings (the developer) and Stantec (the archaeology consultant) to allow for development of the lots. “The Archaeology Branch is satisfied that the proposed site management plan balances the condition of the site (heavily disturbed) with the interests of the private land owner,” Clarke wrote in a ministry email to media.

The Musqueam dispute the province’s claim. “Work was stopped in the area near where the intact remains were discovered,” Clarke added in the email. “The remains have not been removed. The site where the remains were found will not be disturbed until an archaeologist has completed intensive testing the vicinity to determine if there are additional remains in the area.”

McGregor said the city told the band that once the provincial archeology permit is issued, the city doesn’t have the legal right to stand in the way of development. “Everybody seems to want to do the right thing but they say no one has the legal authority to do anything.”

Unlike the land under the Fraser Arms Hotel, the Musqueam band does not officially own the land at 1338 Southwest Marine Dr., but still claims title to it. McGregor added that the protest is not being organized from the band office, although it endorses its members’ efforts. “Most people wouldn’t want their gravesites desecrated outside their churches. This site is older than the Egyptian pyramids,” he said.

The developers and city staff could not be reached for comment by deadline.

© Copyright (c) Vancouver Courier

Other

The BC Land Title and Survey Authority (LTSA) has updated their electronic services accessed via BC OnLine. These updates include a new electronic filing notice, the improved ability to conduct a search on a package of electronic land title applications, and more convenient electronic access to Defect Notices.

Plan Registration Advisory

Land surveyors who prepare electronic plans will now receive an electronic notice when their plans are registered at the Land Title Office whether they submitted the plan or not. This notice, known as the Plan Registration Authority, is delivered to the BC On Line account user that requested the plan number regardless of who submits the plan package. The submitter of the package will continue to receive a separate notice of registration.

Updates to the Electronic Filing System

Defect Notices are now accessible on the ‘view package’ page in addition to the ‘view all notifications’ page. Customers should continue to look for Registration Notices on the ‘view all notifications’ page.

Title Search on a Package allows customers to conveniently conduct a pre-search and post-search on titles identified by parcel identifiers (PIDs) in a package of documents. The new “Search Now” functionality may be used for a pre-search or to conduct a post-search any time after the package has been submitted and received.

Customers can also amend both hard copy and electronic strata plans electronically now.

For more information on these services, visit www.help.ltsa.ca.

© Real Estate Board of Greater Vancouver.

Other

Modifications will be made to limited dual agency, effective June 1, to adopt designated agency. This is being done to reflect the current practice followed by brokerages, licensees and the public today.

The coming changes only impact transactions where brokerages and licensees act for more than one party to the transaction, i.e. where two licensees in the same brokerage are acting as the agents for a buyer and a seller in the same transaction.

“These modifications are really a matter of updating our forms to align with what’s being practiced today and, most importantly, with what our clients expect, which is to be afforded full agency duties of loyalty, confidentiality and disclosure,” Rosario Setticasi, Board president said.

All applicable standard forms will be updated on June 1 to reflect these changes.

When two REALTORS® in the same office (or another corporate office of the same company) are representing opposite sides of a transaction, both REALTORS® will act as sole agents and will not be in a limited dual agency relationship.

So what do these changes mean to you?

For REALTORS®

In designated agency, REALTORS® must not disclose any confidential information concerning the client to any other member of the brokerage or other person unless authorized by the client or required by law.

There will be no change to limited dual agency requirements when a single licensee represents parties on both side of a transaction.

The REALTORS® who are appointed the designated agents for individual buyers or sellers will treat them as sole clients and provide them with full agency duties of loyalty, confidentiality and disclosure.

The designated agents for their buyers or sellers will treat them as individual clients and provide them with full agency duties of loyalty, confidentiality and disclosure.

REALTORS® should always use the revised standard forms which will be available on WEBForms® on June 1.

For Brokers

In designated agency, the service agreement is still with the brokerage. The agency and fiduciary relationship is between the consumer and the individual REALTOR® who has been appointed as the designated agent (not the brokerage).

To comply with designated agency requirements as a broker, you are obligated to establish policies and procedures for information barriers and use the revised standard forms which will be available on WEBForms® on June 1.

The brokerage must ensure each designated agent within the brokerage keeps their clients’ information confidential from other REALTORS® licensed with the brokerage.

Ensure the brokerage (as opposed to the REALTORS® acting as designated agents) treats the interests of both the buyers and sellers represented by the brokerage in an even-handed, objective and impartial manner.
Brokerages will still have all the same supervisory obligations under designated agency such as collecting deposits and being responsible under provincial legislation.

To help you better understand these changes, the Board will hold 29 free member sessions between now and June 1. The Board’s legal counsel, Brian Taylor, will host these sessions. Members who attend will also be given three PDP credits. (Scroll down to see schedule of sessions)

The Board will also host a series of information sessions for Brokers. Details of these sessions will be communicated to Brokers soon via the Board’s Broker Updates.

For additional information, including detailed FAQs and videos from Brian Taylor, go to the following website created by the BC Real Estate Association: http://web.bcrea.bc.ca/da/index.htm.

If you have further questions or comments please contact Noreen Davis, Manager of Members Services, at [email protected].

© Real Estate Board of Greater Vancouver.

All the ELEMENTS of a perfect new home

Other

Download Document

Other

Download Document