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.

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.

Another Project Comes to A Close – Alture MidCity

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I am incredibly proud of the completion of this building designed by award winning architects Duel Architecture. The construction of MidCity progressed smoothly and according to schedule – with many design and engineering upgrades included along the way for the benefit of our future homeowners.

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Our most notable delay was waiting for the registering with land titles in order to include the lake association’s many requirements – however we still managed our goal which was to get homeowners into their homes on time.

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A new addition to our service lineup is the printed Homeowner Guide and Online Homeowner Portal which Alture has provided to every owner. We hope that you find this resource useful as it contains detailed information from the paint colour in your bathroom down to who installed the kitchen faucet.

I appreciate all the support everyone has given to us this past year, and hope all our homeowners enjoy peace of mind knowing that you are living in an incredibly sound and well-built building that will last for years to come.

 

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.

Just Sold! 103 – 3075 Primrose

We have just sold this gem nestled in a resort-like complex. Welcome to Lakeside Terrace! If you missed this great opportunity, email us on the form below to get in contact today.262049031-3

The perfect balance of elegance and charm greet you as you enter the foyer, and continues into the large kitchen & open concept dining/living room. The tastefully decorated master suite has two closets/ 4 piece ensuite with separate shower.

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A huge private deck is your oasis perfect for entertaining. With water features/lagoon, and manicured gardens you are surrounded by beauty. Workout in the gym, dip in the pool or relax in the hot tub/sauna. A short stroll to mall/T&T, all levels of great schools, the West Coast Express, Lafarge Lake, Aquatic Center, and soon the Skytrain.

 

Just Sold! 601 – 111 East 13th

I have just sold this Beautiful Bright unit in a Gorgeous building! Welcome to The Prescott! If you missed this great opportunity, email us on the form below to get in contact today.

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Close to everything, from restaurants and shopping to transit and parks, location can’t be beat! Oversized One Bedroom Unit with High End Finishings and Modern Open Concept living. End Unit, so only has 1 shared wall. Complete with a wonderfully open view of City, Water and Mountains. Come live in the centre of North Van with a View!

 

Top 5 House Hunting Trips

Just Listed! 601-111 East 13th Street

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We have just listed this Beautiful Bright unit in a Gorgeous building! Welcome to The Prescott!
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Close to everything, from restaurants and shopping to transit and parks, location can’t be beat!
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Oversized One Bedroom Unit with High End Finishings and Modern Open Concept living. End Unit, so only has 1 shared wall. Complete with a wonderfully open view of City, Water and Mountains. Come live in the centre of North Van with a View! OPEN HOUSE: Saturday October 10th, 2015 2 – 4 pm.

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Just Sold! 7437 Moffat Rd #117

I have just sold this clean, cozy and move-in ready 2 bdrm, 2 bath unit in Colony Bay North. 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!

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Great location within the building, this unit features an updated kitchen with newer appliances, newer cabinets, counter tops, and undermount lighting. Pantry/ Laundry features lots of storage and newer frontload washing machine and dryer. Italian tile throughout entrance, kitchen, hall and both bathrooms. Hunter Douglas blinds, window screens and phantom roll screen on door leading to one of the 2 lovely balconies on the quiet side of the building. Huge storage locker with private entrance. Cozy gas fireplace, new light fixtures throughout. Master features a generous walk-in closet. Building has a brand new roof and has been re-piped.

We’re out of the Hole now! – Alture Midcity

Alture MidCity – Visit the Project Summary page – View Alture MidCity on Pinterest

To see the full project details and follow development updates as they happen, please visit the project summary page.