Tina Mak

February 2010

Click here to read the full statistics for January

Home sales activity strong through Olympic period

The Greater Vancouver housing market continued to experience strong demand from homebuyers and an increase in total property listings in a month where the eyes of the world were focused on the region.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,473 in February 2010, an increase of 67.1 per cent compared to February 2009 when 1,480 sales were recorded and a 28.6 per cent increase compared to the 1,923 sales recorded in January 2010.

More broadly, last month’s sales totals marked a 7.6 per cent decline compared to the 2,676 sales recorded in February 2008 and were 13.5 per cent behind February 2007 when 2,859 residential sales were recorded on the Multiple Listing Service (MLS®) in Greater Vancouver.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 19.7 per cent to $581,911 from $486,054 in February 2009. This price is 2.4 per cent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

“We don’t know at this point what long-term impact the Olympics will have on our housing market, but we do know that activity in our market remained steady through all of the excitement and distraction of the last few weeks,” Scott Russell, REBGV president said.

“In February, for example, 110 sales were recorded on the MLS® in downtown Vancouver. That’s higher than 2009 and slightly lower than the mid-2000s, which is consistent with data from the overall market. It’s too soon to say whether that’s an Olympic effect,” Russell said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,606 in February 2010. This represents a 17.6 per cent increase compared to February 2009 when 3,916 new units were listed, and a 10.5 per cent decrease compared to January 2010 when 5,147 properties were listed on the MLS® in Greater Vancouver.

At 11,346, the total number of property listings on the MLS® increased 11 per cent in February compared to last month and declined 21 per cent from this time last year.

“Two months into 2010, we see the total number of homes listed for sale on the rise and demand in the market strong, but less frenzied than we saw in the latter part of 2009,” Russell said.

Sales of detached properties increased 67.5 per cent in February 2010 to 983 from the 587 detached sales recorded during the same period in 2009. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties increased 22.5 per cent from February 2009 to $800,796.

Sales of apartment properties in February 2010 increased 65.2 per cent to 1,074 compared to 650 sales in February 2009. The benchmark price of an apartment property increased 17.3 per cent from February 2009 to $390,899.

Attached property sales in February 2010 are up 71.2 per cent to 416, compared with the 243 sales in February 2009. The benchmark price of an attached unit increased 16.2 per cent between Februarys 2009 and 2010 to $495,496.

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January 2010

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

 

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Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

 

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

Information provided by

Tina Mak (Click here to contact agent)

Coldwell Banker Westburn Realty

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The strong house price gains recorded over the last few years continue to weigh on affordability conditions across the Vancouver market. Two-storey homes are the affordability outliers compared to other major markets with the average selling price now nearing a whopping $650,000 - this sits 35% above the average price for comparable Toronto home. The sharp erosion in conditions is expected to start filtering through the resale market this year allowing the pace of activity to calm down. The new home market is being driven by the multiples segment that soared in February by 45%. Despite the surge in February starts, some moderation in activity is expected for 2008. This projected slowing is consistent with the sharp deterioration in housing affordability in recent quarters and the fact that most of the strength so far this year has been in the volatile multiples component. As well, a generalized slowing in economic activity, with attendant downward impact on employment and income, will also weigh on housing going forward.  

 

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Unless you work in the Chiiliwack area, most buyer unlikey will consider buyng in Chilliwack however, from the investment point of view, it might not be a bad place to consider.  Chilliwack is a fast-growing area, has great infrastructure, a new recreation centre, a regional hospital, near full employment, low rental vacancy rates and a new RCMP training campus.  Average price of a detached house in Chilliwack was $362,000 in October, compared to $517,000 in the rest of Fraser Valley, and more than $730,000 in Greater Vancouver.  Townhomes are popular for an average price of $262,315, up a startling 22% from a year ago.  There's new project coming out for sale next year at $183 per s/f offering 3 BR, 1,418 sf from $259,900.  Lots of local resident is waiting for it to start selling.

If u don't want to go to Chilliwack, u might want to check out Abbotsford.  A 80 new condos building launched in early November sold out in 2 hours at prices from the low $200,000 range.  Abbotsford expected to be one of the hottest construction zones in the province in 2008.  It expected to see a 17% increase in multi-family starts next year.  The re-sale detached house averaged at $400,000 & according to CMHC, it will rise  approx.10% in 2008.

The new CMHC rental property product has opened the doors to wealth creation via real estate.  For the 1st time, buyer can attain 100% insured mortgage financing on a rental property.  If you were on the fence before, this might just put yuou over.  For investors who already own rental properties, there is the additional benefit of refinancingyour rental purchase up to 95%. Newcomers to Canada, self-employed borrowers and also corporate borrowers are all eligible.  Be aware buyer's good credit will be a determining factor in this program.  So, pls speak to your banker or mortgage broker for further clarification.

Instead of investing where your friend tell you to invest, you might want to do some research yourself whether what suitable for your friend would be right for you.  If you want to learn more about investing in BC, you can book an appt with Tina Mak at 604-412-5860 or email tina-mak@coldwellbanker.ca to discuss your investment plan. 

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