Vancouver Real Estate Market Insight

This new listing of ours, is we believe, the finest Park location the Westside right now. Come to our Open House on Sunday 2-4pm and you’ll see what we mean. Just a few key features:

Click here for the full 823 West 20th – Douglas Park MLS feature sheet

Click here for full photo package

Call Bruce for your private showing cell:778-233-3777

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Apologies for not writing my monthly insight into last month’s release of Vancouver Real Estate Board statistics.I have been very busy in several areas and didn’t have time to write much in June. I will be bringing you a regular diet of insights on the market. Stay with me.

Let’s look at what happened in June. The following are not based on the official Real Estate Board market statistics press release. This hasn’t been released yet but will be released middle of next week. The following market stats are based on average prices not the Board’s House Price Index (HPI). So what you are getting here is a sneak preview.

If you look at the year over year numbers, March 2010 over March 2009 of shows average price appreciations of about 30%. But there’s a fairly sharp decline (considering it is only 3 months) of some 6% May 2010 over March 2010.

This year-Used homes prices were $999,500 in March and $930,000 in June down by -6.6%

This year- Active used condo listings are up by 64% (6,533 versus 3,961); Active used home listings up by 34%

As we stated before, we are in the midst of the next phase of the real estate cycle. Prices and activity are turning sharply lower. New homes and new condos sales are much lower (new condos 35% lower) but prices held. Some pre-HST sales took place. Overall June saw sales of all types of property (new and used) drop by 30%.

Follow me on twitter at www.twitter.com/dreamcityhomes for more frequent market news

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We have just relisted arguably the best One and Den listings in the Granville St/Gallery Row area of Vancouver.  This stunning property is located at  104-1640 West 11th Avenue.

Some of the properties best features are:

• The quality and extent of the renovation. The attention to detail and finishing impresses people. Look at key areas such as kitchen backsplash, deep baseboards and hardwood flooring and ceramic tiling. Everything is ‘flush’ and beautifully fitted.
• An intuitive and functional floorplan. Everything flows nicely from room to room and all the room sizes feel large. It feels larger than it’s 780 sq/ft. The kitchen is open to the living room but there is still good separation between the two rooms. The chef can still chat to guests while she cooks and guests don’t feel like they are sitting too close to the kitchen.
• The sleek, modern kitchen. Kitchen has extensive ’soft close’ cupboard and drawer space and it’s all intelligently placed. This is complemented by the owners adding additional Corian countertop space, for those who love to cook. Beautiful stainless steel applainces too.
• Huge 8X10 Den. Currently used as a dining space but could be converted to large home office or even short stay sleeping area for visitors.
• South Facing Patio impresses visitors with it’s size, private outlook and it’s also BBQ friendly.

Download PDF feature sheet here: 1640_West_11th_Ave

Call me, Bruce,  for more information or a private showing: 778-233-3777

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Suites must be licensed by September 30, 2010

There may be up to 3,000 secondary suites in West Vancouver, according to the District. To help ensure community safety, the District has made all of them legal as of March 1, 2010 and subject to the District Zoning Bylaw. REALTORS® listing and advertising a property in West Vancouver which contain a secondary suite should familiarize themselves with the new guidelines and regulations, located in Zoning Bylaw 2200, Section 31-109.

What is a secondary suite?

West Vancouver defines a secondary suite as a separate residential unit accessory to a single family or two-family dwelling. The suite must have two or more rooms and include at least one living room, one kitchen and one bathroom.

A property with a secondary suite must meet the following requirements:

1. Only one secondary suite is permitted per lot.
2. The secondary suite cannot be detached from the principal building.
3. The secondary suite must occupy a minimum floor area of 215 sq. ft and a maximum of 968 sq. ft. or 40 % of the total floor area of the building excluding garage space, whichever is less.
4. The registered owner(s) of the property must occupy either the principal dwelling unit or the secondary suite.
5. A building containing a secondary suite cannot have lodgers, a personal care facility, a child care use, or a bed and breakfast.
6. A secondary suite must have a separate exterior entrance from the principal dwelling unit.
7. The secondary suite must have an additional off-street parking spot exclusively for the use of the secondary suite and at least two off-street parking spaces for the exclusive use of the principal dwelling unit.
8. The secondary suite parking must be located so that any vehicle parked in any required vehicle parking space on the lot may exit without needing to manoeuvre other vehicles and must be provided in addition to parking spaces required for visitor parking.
9. The secondary suite must not be subdivided from the principal dwelling unit under the Land Title Act or the Strata Property Act.
10. Water and electrical service for the secondary suite must not be separately metered.

By September 30, 2010 property owners must:

1. Apply for a business licence and pay a fee of $250. As ofOctober 1, 2010 this fee increases to $400. (Note: March 1, West Vancouver stopped accepting applications for in-law suites.)
2. Submit a general plan for the site including the existing floor plan of the unit showing the suite and the location of parking spaces.
3. Have the suite inspected.
4. Meet any requirements as a result of the inspection, including a follow-up inspection.
5. Sign an affidavit that the home owner will occupy either the principal dwelling or the secondary suite.

In-law suites

Previously, in-law suites were legal for family members only. New applications for in-law suites are no longer accepted and only existing in-law suites with valid permits can continue as legal, non-conforming uses.

Penalties

If a West Vancouver home owner does not comply, they could be found to be in violation of the Zoning Bylaw and could face fines of up to $300 a day.

Quarterly reports on secondary suites

West Vancouver staff now prepare a Secondary Suites Quarterly Report which includes:

• the number of new suites applied for and approved and their addresses;
• the number of existing suites legalized and approved and their addresses; and
• the number of files from various listing agencies advertising secondary suites for rent or existing in homes for sale in West Vancouver.

West Vancouver REALTORS® should take the time to review quarterly reports to keep up to date. The April 23, 2010 report (listed as Appendix D) is available at:

http://tinyurl.com/2767afp

West Vancouver secondary suites – important documents

An FAQ sheet is available at:  http://tinyurl.com/29bpuz9

A Secondary Suite Business Licence Application is available at: Fees & Charges Bylaw (for cost of business license) is available at : http://tinyurl.com/2ccfp7v

http://westvancouver.ca/government/bylaws.aspx. See Schedule 4 Business Licences, and then Secondary Suites.

Zoning Bylaw No. 2200 is available at: http://westvancouver.ca/government/bylaws.aspx

The Zoning bylaw amendment adopted on December 18, 2009 for Secondary Suites is available at: http://tinyurl.com/25buo3t

For information, contact West Vancouver’s Bylaw & Licensing department at 604.925.7152 or visit http://westvancouver.ca.

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They’re known as coach houses, carriage houses, laneway homes, garden suites or granny flats. And, after years of debate, the City of North Vancouver Council has agreed that home owners can build one in their back yard provided they comply with new regulations.

What is a coach house?

In the City of North Vancouver, a coach house is a small, detached secondary residence located on an alley or lane behind an existing detached home.

New Options

City of North Vancouver home owners have two options if they plan to build a new unit or replace their garage.
“This is great news,” says Dave Watt, a past president of the Real Estate Board and a long time North Shore REALTOR®.

“Coach houses can be an affordable, flexible solution that brings significant community benefits.”
As an example of these benefits, Watt explains that coach houses will help seniors and young families remain on the North Shore in their neighbourhoods.

“A coach house lets a senior stay in their home, and have an adult child or a caregiver live in their coach house. A senior can also move into their coach house and let their children and grandchildren live in their larger home,” says Watt, noting that the home owner also has the option of renting the coach house for added income.

While opponents often cite increased traffic and decreased neighbourhood privacy as significant concerns, most are convinced that coach homes benefit the environment. “They’re smaller, they’re more affordable and they don’t require new infrastructure since they can hook up to existing water mains, sewers and power,” explains Watt.

New regulations

The new regulations govern siting, access, setbacks, parking, habitable space, architectural style, privacy, building products, landscaping and use. Home owners who have built to the maximum allowable density on their property won’t be able to build a coach house.

A coach house can only be rented, it can’t be sold, which doesn’t make sense to Watt.

“I think the City should consider allowing coach houses to be under a strata plan similar to a duplex,” says Watt, who has been talking to North Vancouver City Council members about this option. “It’s a home owner’s property and their investment, and home owners should be able to sell their coach house if that’s what they want to do.”
Currently there are requirements in both the Land Title Act and the Strata Property Act that make such a subdivision difficult when the primary home already exists, says urban land use consultant, Bob Ransford.

“One requirement is that the existing building would have to meet current Building Code requirements,” explains Ransford. “Because the home might have been built some time ago it likely met Building Codes then in place but not the current ones.”

Watt believes allowing home owners to sell their coach houses would bring much-needed diversity to the local housing stock, and new affordability to neighbourhoods. (See diagram)
For information on North Vancouver’s coach house regulations visit: www.nvc.com/coachhouse.

On the left-hand side, go to Accessory Coach Houses and then Coach House. This will take you to a page, Coach House Community Working Group. Scroll down to:

• Staff Report with Coach House Bylaws, dated February 24, 2010 (Contains the Coach House Implementation Bylaws)
• Comparative Summary Level-A and Level-B Accessory Coach Houses
• Level-A Accessory Coach House Development Permit Guidelines
• Level-B Accessory Coach House Development Permit Guidelines

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Hat tip to Gordon price at his excellent blog Price Tags for bringing this great little story about a Hong Kong resident who has created a unique home in just 330sq/ft. Just watch this:

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Vancouver city council released a report that provides the only account of what the city spent on the construction of infrastructure for the 2010 Winter Olympic and Paralympic Games.

The city spent about $524 million in capital costs and another $30.3 million in operational costs related to the games.

City manager Penny Ballem’s report details all the Olympic construction expenditures, over the last seven years, into a comprehensive estimate.

“The capital funding has been dedicated to build new infrastructure and civic facilities or to upgrade our existing capital assets, providing a sustainable legacy for the citizens of Vancouver,” said Ballem in the report 

According to the report, the city spent $73.8 million on competition venues, which included the curling venue at Hillcrest Community Centre, short-track speed skating and figure skating venue at the Pacific Coliseum as well as practice ice rinks at Trout Lake, Killarney and Britannia.

New facilities were built at Hillcrest and Trout Lake, while the other facilities were upgraded. The city spent $120.9 million on non-competition infrastructure, which included the completion of the Canada Line project, redesign and reconstruction of Granville Mall, Granville Bridge strengthening, Expo Deck repairs, Trout Lake road improvements, the construction of the Olympic Street Car Demonstration Line, and the renovation of Queen Elizabeth Theatre, Queen Elizabeth Playhouse and the Orpheum Theatre.

The Athlete’s Village was estimated to cost the city $299.8 million, but the number didn’t include a market loan of up to $969 million to the developer, Millennium Development Corporation, nor any future recoveries and revenues. Despite the effort to tally all the costs in one bill, there is some disagreement about whether some projects were actually Olympic.

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B.C. home sales lifted in April, but experts say the market has begun to show signs of leveling off. According to the British Columbia Real Estate Association (BCREA), the province’s residential home sales climbed 21% to 8,385 units in April compared to the same time last year.

Yet, on a seasonally adjusted basis, residential sales dropped 4% from March, and sales trends have lowered to between 84,000 and 86,000 units over the past three months, which is down from the 108,000 unit pace in the fourth quarter of 2009.

BCREA chief economist Cameron Muir told Business In Vancouver it’s a sign the market has slowed down after a post-recession spike in sales. “You can see the trough and the gigantic rebound and things have settled off about 20% to 25% since the beginning of the year, and that’s really a reflection of pent up demand that’s been expended in the marketplace,” said Muir.

He also said higher prices, interest rates and tighter credit have eroded affordability on the coast. “Markets such as Vancouver and Victoria have seen significant price appreciation over the last half of last year and the first quarter of this year, and as a result we’re back in a market where affordability is the most critical impediment for home ownership,” Muir said.

Residential sales volume in B.C. increased 73% to $13.5 billion in the first four months of 2010 when compared with the same period in 2009. But the real estate market in Vancouver and Victoria is seeing more balanced conditions over the last few months, Muir said, and that means less upward pressure on prices for the remainder of the year. “We’re not expecting to see record levels of home sale this year, and going forward home prices are going to remain relatively flat for the rest of the year.”

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Those of you who know me, know that I have been particularly ’bearish’ at the way the market has been heading since December 2009.

I have warned that a price correction may be building and that some buyers will be, unwittingly, buying at the peak of the market and some sellers are going to miss the opportunity to sell at prices that won’t be seen again for a very long time.

I counsel and have counselled my buyer clients that the current real estate cycle may be approaching a new price peak. I advise my buyers that they will have to hold their property for several years or risk selling at a loss if they cannot hold the property until the beginning of the next ‘up’ cycle.

For my seller clients, providing accurate, objective up to the minute data and research on the latest sales and market trends is key to a happy client experience in the current market. Right now I am counselling sellers to negotiate a fair deal but not to get greedy, and to exit the market gracefully with their substantial profits.

Here’s why:

Overall: Total listing inventory in the Greater Vancouver area has been rising relentlessly since December. See www.twitter/dreamcityhomes. Sales activity is declining. The overall average price (all property types) is down 3% from March’s to April’s $674,410.

• The average used home price is down 2% to $986,900.
• The average used condo price is down 2.5% from March to $417,800 – lower by 2.5%
• Active used condo listings by +38% (from 4,435 to 6144) and used condo NEW listings (listed in April only) are up by a whopping 91% ! (1,557 to 2995!). Used home NEW listings are also way up by 68% (from 1,816 to 3,011).

(Remember we are looking at *average* prices which are different from the Board’s Housing Price Index (HPI) and perhaps even less reliable that their HPI Index. However, it may herald the start of an overall price trend)

What is not widely talked about is that the implementation of more restrictive mortgage rules on April 19th appears to have put a dent in the market that will probably have a negative effect on prices by the end of the Summer. I know many realtors’ phones, mine included, rang a lot less frequently on April 20th.

There are undoubtedly many buyers out there with great pre-approved rates that are looking to buy soon. But sellers must now work hard to attract buyers away from the competition. In my opinion we are just on the verge of  a brand new Buyer’s market.

I may be wrong. But it looks that way right now. You should back-test these ideas with your realtor and see what they suggest for your particular situation.

Call me if you have more questions…

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Here’s the official press release the media receives on the state of last month’s market…

VANCOUVER, BC  May 4, 2010 –The Greater Vancouver housing market experienced increased activity in April thanks to a steady balance of home buyers and sellers entering the marketplace.

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