Economic Drivers of Real Estate in Vancouver – DELOITTE

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Real estate market overview and current challenges

October, 2016
Stepping into 2017

Come join me as we learn from Jennifer Podmore-Russell of Deloitte, and her take on where is Vancouver’s real estate marketing heading as we step into 2017. This presentation brought to us courtesy of Wealthminds!

Click here for the full presentation.

I’ve also highlighted below some notable changes in our market which may affect you! Give us a call at (604) 629-7515 or fill out the form below if you’d like to learn more.

Changes in the market – BC’s Foreign Buyer Property Transfer Tax

On July 25, 2016, the BC government introduced legislative changes directed at BC’s residential housing market. The key changes include the introduction of an additional 15% property transfer tax (PTT), effective August 2, 2016, on transfers of residential properties within the Greater Vancouver Regional District (GVRD) to foreign entities or taxable trustees

Government Responses – Preventative Measures for a “Healthy, Competitive and Stable Housing Market”

Legislation release on October 3, 2016 included a “Mortgage rate stress test” for all insured borrowers and closing loopholes for the Principal Residence Exemption.

Beaten to the Shadow Punch

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Stop… in the name housing affordability and supply!!

I seem to have a lot of Christy Clark showing up in my blog feed these days. Today’s announcement, is that the province aims to implement rules that require the Seller’s consent for any assignment plus any profits made from assignments returned to the home-owner.  The announcement comes one day after NDP Leader John Horgan introduced two bills in the legislature in response to so-called shadow flipping and empty homes.

So what do you think? Is this likely to succeed? Will it in fact have any affect on the real issue which is housing affordability and supply?

Province to address “shadow flipping” abuse in real estate transactions

Premier Christy Clark has announced British Columbia is taking further action on realtor conduct, conflict of interest and housing affordability.

In the coming weeks, government will put new rules in place to prevent the potentially predatory practice of real estate contract assignment ─ so-called “shadow flipping.”

Government looks forward to the Real Estate Council’s independent advisory group recommendations on licensee conduct and potential conflict of interest, such as dual agency representation where one licensee acts for both the seller and buyer in a transaction.

Finance Minister Michael de Jong and Deputy Premier Rich Coleman will meet with Vancouver Mayor Gregor Robertson to discuss collaborative steps governments can take to further improve affordability in Vancouver.

Read the Premier’s full Press Release here

Want to learn more?:

Metro Vancouver home buyers set a record pace in February

Last month was the highest selling February on record for the Metro Vancouver housing market.

Residential property sales in the region totalled 4,172 in February 2016, an increase of 36.3 per cent from the 3,061 sales recorded in February 2015 and an increase of 65.6 per cent compared to January 2016 when 2,519 home sales occurred.

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Last month’s sales were 56.3 per cent above the 10-year sales average for the month and ranks as the highest February sales total on record.

“We’re in a competitive, fast-moving market cycle that favours home sellers,” Darcy McLeod, REBGV president said. “Sustained home buyer competition is keeping upward pressure on home prices across the region.”

New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,812 in February 2016. This represents an increase of 7.1 per cent compared to the 5,425 units listed in February 2015 and a 30.8 per cent increase compared to January 2016 when 4,442 properties were listed.

“We’re beginning to see home listings increase as we head toward the spring market, however, additional supply is still needed to meet today’s demand,” McLeod said.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 7,299, a 38.7 per cent decline compared to February 2015 (11,898) and a 10 per cent increase compared to January 2016 (6,635).

The sales-to-active listings ratio for February 2016 is 57.2 per cent. This is indicative of a seller’s market.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark, while home prices often experience upward pressure when it reaches the 20 to 22 per cent range in a particular community for a sustained period of time.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $795,500. This represents a 22.2 per cent increase compared to February 2015.

Sales of detached properties in February 2016 reached 1,778, an increase of 37.2 per cent from the 1,296 detached sales recorded in February 2015. The benchmark price for detached properties increased 27 per cent from February 2015 to $1,305,600.

Sales of apartment properties reached 1,790 in February 2016, an increase of 43.9 per cent compared to the 1,244 sales in February 2015.The benchmark price of an apartment property increased 17.7 per cent from February 2015 to $454,600.

Attached property sales in February 2016 totalled 604, an increase of 15.9 per cent compared to the 521 sales in February 2015. The benchmark price of an attached unit increased 17 per cent from February 2015 to $569,600.

Poems of Reflection – Book Launch with 100 Success – March 2nd

The anticipation is building! We’ve come such a long way & it’s amazing to see how not just the volunteers, but the 100 Success community itself has come together to pitch in for Brian. #AllHandsOnDeck #BuildingACommunity

Brian’s book launch is just around the corner, please come and join us March 2nd at 6pm, 431 Princess Ave.

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Just a bit of background, some of you may know I’ve been working with 100 Success, a group of individuals who want to lend their support to the Downtown Eastside community by providing mentorship and encouragement for individuals who have completed recovery (Climbers) to connect their business ideas and social projects to advisers (Sherpas) and to potential clients.

Come join us this coming Wednesday for a glimpse into what we’ve been doing!

 

 

 

BC’s New PTT (Property Transfer Tax)

The new rules on BC’s Property Transfer Tax have been released with the potential to save up to $13,000 for some, and rate increases for others. The goal of the province’s 2016 budget to help put home ownership within the reach of more people, but you can weigh in – does BC’s New PTT achieve its stated goals?

Highlights

  • Exemption for buyers of new homes that priced at up to $750,000;
  • PTT increase to 3% from 2% for properties valued at more than $2 million;
  • Requirement that property buyers self-report their nationality when they register their property.

Let’s go back and recognize the PTT as a major source of BC’s revenue, Vancouver accounting for nearly one-quarter of the government’s $1.15-billion windfall from B.C.’s property transfer tax in the past fiscal year.

The property transfer tax was introduced in 1987 as a “luxury tax,” however thresholds have not changed since then, meaning it has turned into a revenue generator for the province.

New social-housing project opens in Vancouver

Rich Coleman, minister of natural gas development and housing, tours the Budzey Building, a newly completed structure providing 147 apartments for women or women with kids who are homeless or at risk of homelessness, in Vancouver on Thursday. Photograph by: NICK PROCAYLO , PNG

Rich Coleman, minister of natural gas development and housing, tours the Budzey Building, a newly completed structure providing 147 apartments for women or women with kids who are homeless or at risk of homelessness, in Vancouver on Thursday.
Photograph by: NICK PROCAYLO , PNG

Minister Rich Coleman tours the Budzey Building, near Oppenheimer Park

Reblogged from STEPHANIE IP | POSTMEDIA NEWS

VANCOUVER — Women and children first is the key to the province’s latest social-housing project, the success of which will hopefully draw more federal support for other projects in B.C.

On Thursday, minister Rich Coleman toured the Budzey Building, near Oppenheimer Park in Vancouver’s Downtown Eastside. The building provides long-term permanent housing for women (including transgender and cisgender) and women-led families.

The Budzey was opened in July 2015 and was gradually tenanted throughout the fall. Only just recently did the building finally reach capacity.

According to Amelia Ridgeway, an associate director at RainCity Housing, the organization partnered with B.C. Housing to interview prospective tenants, ensuring that the residents being moved into the Budzey are from the surrounding community. As well, there was a focus on women who had been longtimetenants at nearby SROs (single-room occupancy) facilities.

Read 354 more words here

Tourists are back Buying Vancouver Waterfront Condos

Tourists Return To Buying Vancouver Coal Harbour Condos

The dropping Canadian dollar, along with Vancouver’s natural beauty, is bringing impromptu foreign buyers back to the Coal Harbour area, says one realtor.

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“It happened a long time ago and now it seems to be happening again,” Shaun Kimmins with Sotheby’s International Realty told The Huffington Post B.C. in an interview. He said his office fielded dozens of daily inquiries from tourists this summer.

Reblogged from The Huffington Post Canada | Andree Lau

“People walk in and with no previous intention of setting out to buy property, end up just falling in love with the area on a sunny day, walking into our office and end up writing offers.”

While Chinese visitors buying property remains consistent, it’s the American clients that have returned, he said.

Kimmins has sold several waterfront condos ranging between $2 million and $4 million this year to U.S.-based clients who use them as vacation properties.

When the towers in Coal Harbour were going up around 2001, the low dollar attracted many Americans. But as it swung up to $1.05, many cashed in.

“They have to be objects of desire but they also have to represent a safe or secure investment,” said Kimmins. “Now that we’ve seen a reversal in the depression of the [Canadian] dollar versus the U.S. dollar, we’re sensing that there’s more money coming back and buying back in.”

One of Kimmins’ clients from Mexico, who already owns in the area, bought a $5.5 million waterfront property this summer.

Meanwhile, Canadians who left Vancouver to work in Hong Kong after obtaining citizenship appear to be moving back to Vancouver, realtor Winfield Yan told the Georgia Straight.

The cost of living in Hong Kong is high, with rich mainland Chinese pushing locals there out of the real estate market, he said.

Read the original article here

Just Sold! 1695 West 10th Ave #107

I have just sold this lovely 2 bedroom co-op in fantastic South Granville – Sherwood Manor, very well run co-op in a great character building!

Living Room

Living Room

If you missed this great opportunity – email me below to find out about other similar homes in your neighbourhood that are coming up for sale!

Affordable living on pretty, quiet, tree lined street. Walk to shops, restaurant, transit, Granville Island and seawall. Extra spacious with original solid oak inlaid hardwood floors waiting to be revealed restored. Lots of insuite storage with add’l storage locker, bike & trunk room.

Other Info:  1 cat welcome with council approval, no rentals and 16+ age restriction. Co-op housing is not a leasehold, nor is there any work-share requirement.

Just Listed! 1695 West 10th Ave #107

I have just listed this large 2 bedroom in fantastic South Granville – Sherwood Manor, very well run co-op in a great character building!

View – 107-1695 W 10th Ave Flyer
Photo Tour
– Map & Walkscore (98 – Walker’s Paradise!)

Affordable living on pretty, quiet, tree lined street. Walk to shops, restaurant, transit, Granville Island and seawall. Extra spacious with original solid oak inlaid hardwood floors waiting to be revealed restored. Lots of insuite storage with add’l storage locker, bike & trunk room.

Other Info:  1 cat welcome with council approval, no rentals and 16+ age restriction. Co-op housing is not a leasehold, nor is there any work-share requirement. Email me to discuss!

VIFF features on Chinatown and Japantown raise questions about Vancouver’s urban changes

TWO SELECTIONS AT this year’s Vancouver International Film Festival cast their gaze upon historical neighbourhoods in Vancouver: Chinatown and Japantown. Together, they raise interesting questions for discussion about not only the past, present, and future of these areas, but also about what is becoming of our entire city as urban change and development overtake us.

Although Chinatown and Japantown were distinct from one another, they shared many parallels.

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Both areas neighboured one another on the edges of the Downtown Eastside, and both were formed by ethnic groups as a result of numerous historical social factors, including language barriers and racial discrimination.

Julia Kwan‘s documentary Everything Will Be takes an intimate and sensitive look at how current changes in Chinatown are affecting citizens who live and work in the area. Meanwhile, The Vancouver Asahi, which tells the story of a legendary local baseball team of Japanese Canadians, recreates life in Japantown during the 1930s.

Reblogged from The Georgia Straight | Craig Takeuchi

Chinatown, past and present

UBC planning professor Andy Yan was one of the people Kwan chatted with while conducting research for her film. Like Kwan, Yan has ties to the neighbourhood—his family owned businesses there. His great-grandfather owned Most Modern Cleaners while his father owned the Kwong Chow Restaurant. His grandmother also raised him in the area.

For his master’s thesis, Yan took an in-depth look into Chinatown and issues about revitalizing degenerating neighbourhoods.

What’s interesting to note is that prior to Chinatown, the area was an Italian and southern European enclave. As Kwan’s documentary reveals, one Italian family-run business in that area remains, Tosi & Company (current proprietor Angelo Tosi is featured as an interviewee in the film).

This shift in ethnic dominance in various areas is one that has repeatedly occurred throughout the city’s history. Both local, national, and international economics and politics have determined not only waves of immigration from different countries but also what types of class and professionals the city has attracted. As but one example, Robson Street used to be known as Robsonstrasse, due to the growth of German immigration in the area.

Yan explained by phone that Chinatown began as a bachelor’s society, but grew as women arrived and families began to grow, particularly after the Second World War.

“The completion of the [Canadian Pacific] railway in 1886 certainly helped increase the population of Chinese Canadians to concentrate and move to cities like Vancouver and Victoria and begin in neighbourhoods like Chinatown, but also the kind of ongoing relationships to Chinese settlements throughout the province was in part connected and coordinated out of the neighbourhood.”

Both Chinatown and Japantown were also hit by the Anti-Asian Riots of 1907. The Asiatic Exclusion League, formed by local labourers concerned about their jobs being taken away by cheaper Asian labour, became upset by Asian immigration. In reaction, they marched through downtown Vancouver and continued into Chinatown and Japantown (also known as Little Tokyo) where they smashed businesses and looted stores.

The attacks did not deter the communities, however. While Japantown blossomed up until 1941, Chinatown particularly boomed in the 1960s and ’70s.

Read 1287 more words here…