Archive for November, 2013

The real costs of home ownership

Friday, November 15th, 2013

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Twitter, don’t tweet listings, keep them under 100 characters, don’t spam tweets and responding to tweets

Friday, November 15th, 2013

The power of Twitter: Building business 140 characters at a time

Patty McNease
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Metro Vancouver New Home Market Forecast

Friday, November 15th, 2013

Susan M Boyce
Other

Low interest rates, steady immigration levels, and an undiminished desire for home ownership are predicted to remain three of the top drivers in 2014’s residential building industry according to experts at two recent real estate forecast events in Vancouver. And that means positive news for home buyers and developers.

Interest rates

Speaking recently to a sellout crowd of builders and developers at the Urban Development Institute, Michael Ferreira, managing principal of Urban Analytics made several “bold predictions” for 2014. A continued low interest rate was at the top of the list.

“There’s been a lot of talk about how our current low mortgage rates can’t be the norm. But despite a rise of 50 to 70 basis points over the last few months, my expectation is that low interest rates will prevail through 2014 and possibly well into 2015.”

Many others agree. Carol Frketich, CMHC BC Regional Economist, is one. At the recent CMHC Housing Outlook Conference she also pointed out that five years ago the posted one-year rate was more than double what it is today. That number becomes even more significant in light of the fact that prices of newly built homes in the suburbs — particularly townhouses — have dropped in some areas. Low interest rates and lower prices mean added appeal for younger buyers.

Neil Chrystal, president and CEO of Polygon Homes was this year’s CMHC keynote speaker. He added that earlier this year, discounted mortgages dipped as low as 2.7% — a rate he described as “unbelievable.”

Chrystal also drew spontaneous applause when he suggested the time is right to re-introduce the defunct 30-year amortization because fears of an overheated market creating a housing bubble are unfounded.

He also believes that in Canada, unlike the United States, the desire to own a home will never go out of style. But while he sees current prices as fair and representing excellent value, he also cautioned that many first-time buyers will need to reset their expectations.

“More often than not,” he said, “the first-time buyer is a young couple paying very high rents to live in an area they can’t afford to buy in. The bulk of their income goes to lifestyle, leaving very little extra cash for a down payment. But for the same money, the same couple who’s renting in Yaletown could actually afford to buy in Richmond, and they’d still be only 20 minutes away from their friends and favourite restaurants via the Canada Line.”

Ferreira did caution that BC is losing young people, who are going to other provinces to find jobs and lower-priced homes. Those are the first-time or move-up buyers who would normally buy in the Fraser Valley, and he said this was a trend to watch carefully.

Population

All speakers believe immigration, especially from Asian Pacific countries, will remain strong far into the foreseeable future, with most of those immigrants settling in Metro Vancouver. Why? “Because Vancouver is consistently ranked one of top cities in world, it’s a beautiful city, and it’s a safe city with excellent social infrastructure, health care and education,” Chrystal said.

Michael Ferreira noted that Metro Vancouver is now home to one of the largest Chinese populations outside China. He said it’s no surprise considering  approximately 130 direct overseas flights every week and a culturally friendly environment where newcomers can find the food, entertainment, and media they want.

He stressed that it’s a common misconception to think the many investor class immigrants are all high-net-worth individuals. “A lot are middle income: people like ship captains, bus drivers, technicians. And not all of them are buying homes in West Vancouver — they’re buying in places like North Delta, Coquitlam, and Burnaby as well.”

Supply and demand

Ferreira and Chrystal both anticipate that supply will remain somewhat constrained in 2014. Ferreira cautioned there may be more protests over rezoning in established neighbourhoods like Marpole. He suggested that it would be harder to get approval for developments because no one wants to anger residents before the upcoming municipal elections. The coming year, he said, could be “another grinder” for developers, but a good time for buyers.

Like many, he predicts Metro Vancouver’s infatuation with urban master-planned communities will continue. He singled out the redevelopment of the Oakridge and Brentwood malls as two to watch. He’s also keeping a close eye on Trump Tower, which he predicted will be half sold by the end of year, even at $1,500 per square foot.

Other good news for consumers: as more projects continue coming to market, consumers will have greater choice, less pressure to “hurry up and buy” and increasing opportunity to take advantage of enticing incentives offered by developers who are looking to stand out in the marketplace.

And if one of Ferreira’s final predictions comes true, home buyers who purchase now will not only be making a smart financial decision, they’ll be able to proudly fly the flag from their new home when the Vancouver Canucks win this season’s Stanley Cup.

© 2013 Real Estate Weekly

BCREA Strongest October in Four Years

Friday, November 15th, 2013

Other

Vancouver, BC – November 15, 2013. The British Columbia Real Estate Association (BCREA) reports that a total of 6,673 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during October, up 26.5 per cent from October 2012. Total sales dollar volume was 34.5 per cent higher than a year ago at $3.6 billion. The average MLS® residential price in the province was $540,432, up 6.3 per cent from October 2012.

 “The fall housing market is shaping up to be the
most active in four years,” said Cameron Muir, BCREA Chief Economist. “Persistently low mortgage interest rates and an element of pent-up demand have driven home sales higher in the province’s large Lower Mainland and Vancouver Island markets.”

“While the rebound in consumer demand has been significant, home sales are trending near the long-term average and any continued acceleration will depend on stronger economic and employment growth,” added Muir.

Year-to-date, BC residential sales dollar volume was up 8.2 per cent to $33.6 billion, compared to the same period last year. Residential unit sales were up 5.1 per cent to 63,020 units, while the average MLS® residential price was up 2.9 per cent at $533,321.

Metro Vancouver New Home Market Forecast

Friday, November 15th, 2013

Other

Low interest rates, steady immigration levels, and an undiminished desire for home ownership are predicted to remain three of the top drivers in 2014’s residential building industry according to experts at two recent real estate forecast events in Vancouver. And that means positive news for home buyers and developers.

Interest rates

Speaking recently to a sell-out crowd of builders and developers at the Urban Development Institute, Michael Ferreira, managing principal of Urban Analytics made several “bold predictions” for 2014. A continued low interest rate was at the top of the list.

“There’s been a lot of talk about how our current low mortgage rates can’t be the norm. But despite a rise of 50 to 70 basis points over the last few months, my expectation is that low interest rates will prevail through 2014 and possibly well into 2015.”

Many others agree. Carol Frketich, CMHC BC Regional Economist, is one. At the recent CMHC Housing Outlook Conference she also pointed out that five years ago the posted one-year rate was more than double what it is today. That number becomes even more significant in light of the fact that prices of newly built homes in the suburbs — particularly townhouses — have dropped in some areas. Low interest rates and lower prices mean added appeal for younger buyers.

Neil Chrystal, president and CEO of Polygon Homes was this year’s CMHC keynote speaker. He added that earlier this year, discounted mortgages dipped as low as 2.7% – a rate he described as “unbelievable.”

Chrystal also drew spontaneous applause when he suggested the time is right to re-introduce the defunct 30-year amortization because fears of an overheated market creating a housing bubble are unfounded.

He also believes that in Canada, unlike the United States, the desire to own a home will never go out of style. But while he sees current prices as fair and representing excellent value, he also cautioned that many first-time buyers will need to reset their expectations.

“More often than not,” he said, “the first-time buyer is a young couple paying very high rents to live in an area they can’t afford to buy in. The bulk of their income goes to lifestyle, leaving very little extra cash for a down payment. But for the same money, the same couple who’s renting in Yaletown could actually afford to buy in Richmond, and they’d still be only 20 minutes away from their friends and favourite restaurants via the Canada Line.”

Ferreira did caution that BC is losing young people, who are going to other provinces to find jobs and lower-priced homes. Those are the first-time or move-up buyers who would normally buy in the Fraser Valley, and he said this was a trend to watch carefully.

Population

All speakers believe immigration, especially from Asian Pacific countries, will remain strong far into the foreseeable future, with most of those immigrants settling in Metro Vancouver. Why? “Because Vancouver is consistently ranked one of top cities in world, it’s a beautiful city, and it’s a safe city with excellent social infrastructure, health care and education,” Chrystal said.

Michael Ferreira noted that Metro Vancouver is now home to one of the largest Chinese populations outside China. He said it’s no surprise considering  approximately 130 direct overseas flights every week and a culturally friendly environment where newcomers can find the food, entertainment, and media they want.

He stressed that it’s a common misconception to think the many investor class immigrants are all high-net-worth individuals. “A lot are middle income: people like ship captains, bus drivers, technicians. And not all of them are buying homes in West Vancouver — they’re buying in places like North Delta, Coquitlam, and Burnaby as well.”

Supply and demand

Ferreira and Chrystal both anticipate that supply will remain somewhat constrained in 2014. Ferreira cautioned there may be more protests over rezoning in established neighbourhoods like Marpole. He suggested that it would be harder to get approval for developments because no one wants to anger residents before the upcoming municipal elections. The coming year, he said, could be “another grinder” for developers, but a good time for buyers.

Like many, he predicts Metro Vancouver’s infatuation with urban master-planned communities will continue. He singled out the redevelopment of the Oakridge and Brentwood malls as two to watch. He’s also keeping a close eye on Trump Tower, which he predicted will be half sold by the end of year, even at $1,500 per square foot.

Other good news for consumers: as more projects continue coming to market, consumers will have greater choice, less pressure to “hurry up and buy” and increasing opportunity to take advantage of enticing incentives offered by developers who are looking to stand out in the marketplace.

And if one of Ferreira’s final predictions comes true, home buyers who purchase now will not only be making a smart financial decision, they’ll be able to proudly fly the flag from their new home when the Vancouver Canucks win this season’s Stanley Cup.

© 2013 Real Estate Weekly

Beach and Howe St BIG Project Vancouver 1400 Howe St Approved

Friday, November 15th, 2013

Other

Vancouver City Council has unanimously approved a proposal to build a 497-foot tower designed by world renowned Danish architectural firm Bjarke Ingels Group (BIG) at the north end of the Granville Street Bridge

The speakers at last night’s public hearing, including many local residents, were generally in favour of the project. It likely influenced City Council’s rezoning decision, which came down to a resounding 11-0 “yes” vote giving local developer Westbank Corporation the final stamp of approval it needed to construct the 52-storey tower – the fifth tallest in the city.

The decision also comes after the City of Vancouver’s Urban Design Panel ratification in February of the design and built form of the structure. The mixed-used tower at the intersection of Beach Avenue and Howe Streets (1400 Howe Street) ventures far away from the ‘cookie cutter’ condo buildings that dominate the city and could be the much-needed game changer that will encourage other developers and architects to think more creatively.

The building starts off with a triangle base and arrives at the top as a rectangular shape to set it back from vehicle traffic running on the Granville Street Bridge. It also carries a unique facade that mimics a bee hive’s honeycomb.

This new addition will settle prominently as a starchitect landmark in the downtown Vancouver skyline and will provide the city core and the north end of the bridge with a proper ‘welcoming gateway.’

Aside from its main tower, the $400-million, 650,000 square foot project (floor to square ratio: 5.08) will also include a 10-storey podium with retail and residential plus two 6-storey triangular shaped buildings for offices and retail at a site across the street at the intersection of Granville and Pacific Streets.

407 market residential units will be built into the main tower while the 10-storey podium will carry 95 market rental units. In total, it will bring 80,000 square feet of new retail to the area, including grocery, liquor and drug stores, and will be built with 609 vehicle parking stalls and 723 bicycle parking spaces.

The project also consists of a major public realm component that will greatly change the vibrancy of the area. It will feature public plazas and street animation beneath the bridge that will give the city a new covered event space with a capacity of holding 2,800 people as well as an outdoor gallery installation on the underside of the bridge.

The buildings will be topped off by green roofs and the entire project will strive for LEED Gold certification. The complex’s design also gives consideration to the City’s plan to eventually remove the bridge loop ramps located across the street from the project site.

Survey focuses on two generations of buyers

Monday, November 11th, 2013

Jean Sorensen
Other

The millennials (known also as the children of baby boomers born between 1972-1992) and the post Second World War baby boomers (born 1946-1965) are making the greatest impact on the real estate industry today.

“Both the boomers and the millennials want move-in ready homes,” says Century 21 Real Estate Canada president Don Lawby. His company, in conjunction with Rona, recently conducted a national home buyers preference survey that looked at the generations’ purchasing preferences and regional differences.

“Time is very important to people…they want to spend time doing what they want to do and not the things have to do,” says Lawby. The survey also showed that 37 per cent of millennials planned to move within two years.

“The message that it sends sellers is that if you are thinking of selling or putting your home on the market and something needs to be done, do it before you put it on the market,” Lawby says, adding it may be something as basic as painting a room. Digital images of the home showing its curb appeal are becoming more important, says Lawby.  Sellers should be aware of how the home looks when presented digitally.

Lawby says the company made the decision to conduct the survey to see “if it really was about location, location, location.”  While the old maxim still applies, it is impacted by lifestyle choices to a greater degree than in the past, he says.

There is a general shift away from long commutes and greater focus on family time and career choices by the millennials. The survey showed a short commute was important to 46 per cent of millennials and only 25 per cent of baby boomers, the demographic group that caused bedroom communities to expand around larger cities a generation ago.

Baby boomers are looking to enjoy leisure time such as pursuing travel or hobbies in their move-in ready homes as they downsize. The survey found that 28 per cent of boomers wanted funds left over when buying a house, compared to 18 per cent of millennials.

Many greying boomers (8.2 million according to Statistics Canada) no longer want to maintain a single-family house or empty nest.

“Baby-boomers don’t need to work,” says Lawby. “They are going into condos because they have the ability to close the door and walk away. They are cashing out to some degree in big cities and moving to the smaller communities.”

That cash-out of traditional single-family homes is needed in cities to supply the base for entry-level condominium homes. “If you don’t have an entry point in the market, there is no first-time buyer. You are seeing in cities that they are wiping out whole blocks of single-family detached housing to build townhouses or row-houses as developers are optimizing the value of the land,” says Lawby.

The millennial generation has a realm of other concerns. Many of the children of boomers (StatsCan figures estimate 9.1 million of them) either can’t afford single-family housing or don’t want to spend time cutting the lawn and renovating as their parents did.

They are looking for ways to maximize personal time and limit time spent on traveling to work, services or recreational facilities, Lawby says. There’s also a concern that interest rates, which have remained low for a prolonged period, will rise, infringing upon their ability to renovate a home.

The millennial generation is becoming clustered around work, often in cities, and fuelling the high-rise trend experienced as densification occurs.

The big drivers in how individuals in more rural or remote areas are situating themselves are driven by climate change and geography, says Lawby. Individuals in these communities also want to be near social activities or centres. “They want access to curling or skating indoors (in areas where winters are longer).”

The survey highlighted some regional differences in buyer preferences. In Atlantic Canada “they are looking for a good home in a good area many of the communities are smaller, so they are looking for good access to services and amenities,” Lawby says.

In Ontario, homes with character features are the hot ticket. “There is some prestige in finding a character home in a nice area with trees and it feels like the kind of place that you would like to raise a family,” says Lawby.

Quebec buyers place a high value on their social life and want to be involved in activities. “They want money left over after buying a home…and they want to be close to where they are working. They like the city, but don’t live in high-rises but in older properties.”

In the Prairies, says Lawby, there is a focus on wanting to be close to centres that can provide social or recreational activities. That is indicative of the harsh and long winters and home buyers want to be able to escape into a social atmosphere, rather than be isolated.

Alberta buyers, though, want to be situated in an area that generates a sense of community and that is family oriented. They are more interested in single-family homes than condos. They are entertainers and want a property that allows them to entertain inside and outside.

In B.C., Lawby says it’s about lifestyle. Buyers want to be close to recreational facilities, services and entertainment.

Economy Not Rosy: Rates Going Nowhere Fast

Friday, November 8th, 2013

Other

The Bank of Canada finally gave up telling us that they are going to raise the rate soon. This last Bank of Canada announcement left out the tightening bias. Considering they downgraded the growth forecast for Canada and the US, it is hard to believe that they would increase the rate as it would slow economic growth even more. Currently, most believe the Bank of Canada’s overnight rate will not change till the second half of 2015. What great news for people who took variable rates.

Also with the Canada Bond yield dropping in the last 2 months, there is no pressure to increase fixed mortgage rates either. In fact, it might drop.

Victoria-Fraserview: Neighbourhood at a Glance

Friday, November 8th, 2013

Jennifer Thuncher
Van. Courier

Victoria-Fraserview stretches up from the Fraser River to East 41st Avenue and is bordered by Knight Street to the west and the Fraserview Golf Course on Vivian Drive to the east. The region takes the Fraserview part of its name from the golf course and the first part of its name from the city of Victoria – and so indirectly from the former queen.

An “average” Victoria-Fraserview resident is 43 years old, speaks English as a second language — more than likely speaks Mandarin, Cantonese or Punjabi as a first language – is in a committed relationship and has one child.

For the 30,000 residents who call Victoria-Fraserview home, there is an eclectic mix of stores and mom-and-pop restaurants along Victoria Drive to choose from.

Historically, the Musqueam First Nations were the first to settle at the southern end of what is now Victoria Drive, in a village on the banks of the Fraser River. Their village was the start for a number of trails that led to settlements further east.

The first European settlers arrived in the 1860s to a vast forested area divided by trails. In 1891, Victoria-Fraserview became part of the municipality of South Vancouver.

In the early 20th century, the population continued to grow with farmers taking advantage of the arable land along the river and in 1929, the community became part of the City of Vancouver.

Early landowners lent their names to Vivian Drive, named after William Thomas Vivian, and Knight Street, named for Robert Knight.

After the Second World War, hundreds of houses were built in the area to accommodate returning soldiers. During the 1950s, Victoria-Fraserview was known as “Diaper Town” due to its large population of young families.

In the 1980s, the area’s industry began to be replaced by residential development. That trend continues today along the shores of the Fraser with the building of new townhomes and apartments.

© Copyright 2013

Condo Mall offers one-stop shopping

Friday, November 8th, 2013

Connie Adair
Other

Running all over town to find something, or one-stop shopping? It’s kind of a no-brainer. Now the one-stop shopping concept has come to pre-construction condominiums at The Condo Mall in Toronto.

The brain-child of Adam Sax, director of business development for Royal LePage West Realty Group, The Condo Mall currently houses seven developers (including Tridel, RioCan, Bazis, Monarch and Great Gulf Homes) offering 10 projects.

Having multiple developments under one roof saves buyers time because they don’t have to visit several sites, he says.

Half of the newly renovated space is dedicated to developers, who bring in their own design team to create their individual spaces. The other half is occupied by the Royal LePage West Realty Group in-house sales team, which handles sales for all of the developments.

Sax was 13-years-old when he and a business partner started SaxCom Solutions, an Internet information and communication technology company. He sold the company when he was 19 and worked in sales development for international properties for a half dozen years. It was during that time that he opened a condo showroom showcasing six international developers in one space.

He was approached by Royal LePage West Realty Group and encouraged by Hunter Milborne of Hunter Milborne Real Estate to develop the one-stop concept for local developers. It took about a year to develop the concept. Then “we threw the idea” out to developers, and some, like Tridel, wanted to participate immediately, he says. Some developers were hesitant to share space with their direct competition, but they soon learned the benefits the concept offers, Sax says. “Consumers appreciate the ease of shopping and it has been reflected in more buyers and a bigger audience” for everyone.

The Condo Mall opened six months ago and has been “growing extremely quickly,” he says. Sax and partners Peter Riccio and Rick Aurora are already talking about taking the one-stop condo shopping concept to other Canadian cities, including Oakville and Vancouver. They have also talked about taking Manhattan. “The concept will work in any metropolitan area,” he says.

The Condo Mall is a new concept and Sax hopes other Realtors take note. It’s a great concept for those who want careers in condos and pre-construction, he says. “We provide leads of buyers and sellers in the condo realm, which no other broker does.”

Realtors who are interested in joining the team can visit the condomall.com or drop into the site at 306 Eglinton Ave. W. at Avenue Road. The Condo Mall is open seven days a week for walk-in traffic or by appointment. Hours are Monday to Friday, 9 am to 6 pm and Saturday and Sunday 9 am until 4 pm.

The Condo Mall also co-operates with all agents and is able to offer top-level access whether the development is part of the space or not, Sax says.