Ready to sell your home? Follow this Spring Cleaning Checklist from www.ilovehomes.ca and get your home fit for sale!
Ready to sell your home? Follow this Spring Cleaning Checklist from www.ilovehomes.ca and get your home fit for sale!
Tired of the crows getting your lawn!! This Lawn Care Calendar will help!
Thinking of Selling? Please call Jessica Prasad 778-241-8946 or email email@example.com
Completely private setting on a 1 acre lot!
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Come to my Open House and get a free ticket to the Vancouver Home + Design show on Oct 27 - 30!
By Dan Healing, The Canadian Press Posted: Sep 27, 2016 4:42 PM PT Last Updated: Sep 27, 2016 4:42 PM PT
When it comes to overpriced real estate, Vancouver's "bubble risk" is unmatched on the planet, according to a report by
Swiss bank UBS.
The rise in Vancouver's average housing prices compared with the growth in average wages, rents and other economic factors make it the most likely to experience a sudden downward correction compared with 17 other large cities around the globe, according to the UBS Global Real Estate Bubble Index released this week.
The report also warned that investors are less likely to see growth in property value in high "bubble risk" cities.
Jon Woloshin, strategist at UBS Wealth Management Americas, said the report doesn't mean Vancouver is likely to experience a home price correction like the U.S. housing crisis that contributed to the 2008-09 recession. Rather, it's meant as a cautionary signal for potential real estate investors.
"Based on the different criteria that were factored into all these major markets, as we sit here today, Vancouver on a
risk-reward basis scored the lowest, which is why it's at the top," he explained.
He added that the province's move to control the city's overheated housing market by imposing a 15 per cent tax on foreign buyers of homes in Metro Vancouver as of Aug. 2 could reduce its bubble risk rating.
The UBS report was based on Vancouver data up to last spring, before the foreign buyers' tax was implemented.
"If the government cracks down and really goes after it, yeah, I think it will have an impact," Woloshin said in a telephone interview from New York. "If a lot of smart lawyers get involved, maybe it becomes less of an issue."
Last week, the British Columbia government credited its new tax in reporting that housing deals in Vancouver involving foreign buyersdropped to 60 between Aug. 2 and Aug. 31 after hitting 1,974 between June 10 and Aug. 1.
In early September, the Real Estate Board of Greater Vancouver saidhome sales fell 26 per cent in August compared with the same month last year. It reported that the composite benchmark price for all residential properties jumped 31 per cent to $933,100.
In its report, the bank places Vancouver ahead of London thanks to prices that it says have risen by 25 per cent since the end of 2014. Last year, in its first such report, UBS rated Vancouver fourth behind London, Hong Kong and Sydney, in that order.
The 2016 UBS report says Vancouver's housing has been overpriced since 2007 but has gone into "overdrive" in the past two years due to strong demand among foreign investors and low interest rates.
It adds bubble risk is also high in Stockholm, Sydney, Munich and Hong Kong, while homes in Singapore, Boston, New York and Milan are fairly valued. Chicago's housing is undervalued.
Presales of brand new condos in Vancouver have never been stronger, even as recent figures show a slump in real estate sales in the wake of B.C.’s new 15 per cent tax on foreign buyers.
Almost all of the presale units in projects under construction downtown are spoken for and sales so far this year have broken records, according to developers. Industry watchers say it’s too soon to tell when or how a slowdown in the resale market will catch up with presales.
At the end of the second quarter there were just 42 presale units for sale in downtown Vancouver, none of which were listed for less than $1 million, according to Fifth Avenue Real Estate Marketing’s second quarter report.
However, such figures are rarely represented in statistics describing the Vancouver real estate market.
Metro Vancouver real estate sales are usually measured by the sale of new and old detached homes plus resales of older condos, apartments and townhouses as listed in the realty industry’s multi-listing service (MLS). But, according to developers and the Canada Mortgage and Housing Corp., MLS doesn’t capture the sales of new condos, usually sold as presales before construction is complete or post-construction by the developer through its own on-site sales centre.
And those sales broke records in the first half of this year, according to Fifth Avenue, which analyzed every project under presale.
“This is all the stuff that hasn’t been owned before,” said Fifth Avenue developer Scott Brown. “Years ago, 50 or 60 per cent of the units would be sold at the opening of presales and the developer would sell the rest of the units over the months and after completion.
“Now, more and more people are buying prior to completion. The demand for multi-family units is growing and the supply can’t keep up.”
Almost 13,000 units were presold across Metro Vancouver in the first half of this year alone, surpassing the total for each of the years between 2010 and 2014, Brown said.
From West Vancouver to Aldergrove, the number of presales for the first six months of the year in various multifamily buildings under construction or planning was 53 per cent higher than the same period in 2015.
Brown said presales are on track for more than 18,000 units this year and could even hit 20,000 for the first time. He said if there’s a downturn in the market for presales in coming years, it will likely be due to a lack of project launches than the effect of the foreigner tax.
In its report, Fifth Avenue listed several projects across Metro Vancouver, noting three sold out in downtown
Vancouver in the second quarter, including Addition, at Hornby and Helmcken, The Jervis at Jervis and Davie, and Concord Pacific’s The ARC Sky Collection.
An “overwhelming number of these sales are not recorded in MLS data” and don’t make it into MLS sales activity figures, said Fifth Avenue.
Robyn Adamache, a senior analyst at CMHC, said the federal housing agency does not record presales, and only records purchases as sales once the building is complete and ready to move into.
She said in July there were only 296 recently completed units for sale across Metro Vancouver, compared with the five-year average of 1,617 available units, confirming Fifth Avenue data. “There’s a very strong demand” for just-built condos, she said.
At the end of July, 99 per cent of completed condo units had been sold — compared with a 76-per-cent average over the previous five years — while 89 per cent of brand new townhouses had been sold, compared with the five-year average of 67 per cent, Adamache said.
At the same time, according to Fifth Avenue Real Estate Marketing’s second quarter report, there were no brand new units available in completed buildings in downtown Vancouver — from the West End to Chinatown — except for the penthouse at the Private Residences at the Hotel Georgia, coming in at $18 million.
The sales activity is driving up the per-square-foot price at the high end for downtown Vancouver properties to an “unheard-of” $1,700 per square foot, according to Urban Development Institute president Anne McMullin. That translates to $1.2 million for a 700-square-foot suite.
McMullin said the new 24-storey Cardero high rise in Coal Harbour, at Cardero and Georgia streets, sold out in two weeks in July at that price per square foot, well above the average of $1,500-$1,600.
She said MLS shows the market has “softened” since May, before news of the foreigner tax, but added that presales aren’t included in those numbers because they don’t fit the criteria of a sale.
“We tried to put the numbers together but because they’re presales and they haven’t closed, it’s apples and oranges,” she said.
The UDI is waiting to see post-tax sales figures to see what effect, if any, the tax will have.
“The softening had started already so it will be hard to say if (a further drop) is because of the tax,” McMullin said.
Brown said the quick presales and low remaining inventory shows considerable demand for new multi-family homes is still present.
He estimated that only one per cent of buyers of presales are foreign investors, and said he’s optimistic the
“hangover” from the shock of the foreigner tax will start to lighten by the middle of this month.
Executive home with an unusual floorplan and lush garden!
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A total of $740 million in public transit improvements will be made in Metro Vancouver over the next three years, and pre-construction work for the highly sought-after projects to extend SkyTrain’s Millennium Line under West Broadway in Vancouver and build 27 kilometres of street-level light rail transit (LRT) in Surrey will begin within the next 18 months.
Prime Minister Justin Trudeau and Premier Christy Clark were at SkyTrain’s Operations and Maintenance Centre in Burnaby this morning to announce that both senior governments are providing $616 million in combined funding, with the federal government reaffirming its $370 million commitment announced during the first budget earlier this year. The provincial government is offering $246 million, which was announced in late-May, and another $125 million from TransLink will fill in the gap for the first phase of transit improvements.
This follows the 50% federal, 33% provincial, and 17% TransLink and municipal level formula of funding transit in the region.
Trudeau noted that the federal government will not dictate how projects are to be built and which projects are to receive funding, unlike his predecessor who required funding requests to undergo a federal-level business case analysis. However, projects like Surrey LRT could still be required to undergo a business case study by the provincial government in exchange for provincial funding, on top of a dual comparison business case by TransLink for both light rail and SkyTrain technologies.
“I want to emphasis with this federal investment, provinces and municipalities will be able to invest in projects that make the most sense for their communities,” said Trudeau during the press conference. “We know that they know what needs to be done better than anyone else. We respect that expertise.”
Approximately one-third of the funding for the first phase will go towards the procurement of new and additional rolling stock for the transit fleet. This includes: $112 million for 28 new Mark III cars (seven four-car trains) for the Expo, Millennium, and Evergreen lines to increase capacity by 12%; $88 million for 22 new cars (eleven two-car trains) for the Canada Line to increase capacity by 55% and reduce crowding; $21 million for five new West Coast Express cars; and a third SeaBus ferry vessel to increase service frequency from every 15 minutes to 10 minutes during peak hours.
About $112 million will be used to perform upgrades on the Expo and Canada lines to ensure the stations can handle the increase in passenger circulation, within platform area and station concourse, from the train fleet expansion.
For the region’s two major rapid transit extension projects, $43 million has been set aside for planning, design, and procurement activities of the underground SkyTrain extension on Broadway and Surrey LRT. Another $114 million is allocated for pre-construction for both projects, including road improvements preparing for LRT construction, improving SkyTrain’s power systems, and expanding the storage capacity at Edmonds Operations and Maintenance Centre.
The budget also provides $196 million for the maintenance of existing infrastructure, including $92 million for upgrading bus maintenance facilities and SkyTrain’s communications, guideway intrusion, and security monitoring systems.
The federal government says it intends to fulfill its campaign promise of providing $20 billion over the next 10 years for transit funding across Canada. It has already committed $3.4 billion for shovel-ready projects over the next three years, and the remaining for new major projects will come from future federal budgets.
“Remember, this is just phase one,” said Trudeau. “We are now working with provinces and municipalities to develop the second phase of transit investments to fund major new transit projects that Canadian communities need.”
Over the coming decade, Metro Vancouver could receive as much as $3.75 billion from the federal government, covering half of the Mayors’ Council $7.5 billion plan. But this is dependent on the provincial government confirming its 33% share, approximately $2.48 billion, and TransLink and municipal governments finding new revenues to ensure they can fulfill their 17% share.
In late-May, the Mayors’ Council proposed a hike on property taxes and transit fares, the implementation of regional road tolls, sale of surplus TransLink property, development fees, and the diversion of the region’s gas taxes to help raise the needed revenue. However, these new revenues for TransLink are also subject to provincial government approval, although not necessarily another transit plebiscite.
“We don’t expect to have another referendum on this,” said Vancouver Mayor Gregor Robertson. “The federal funding is much more significant than what it was a few years ago, and it has meant that it means we have much less dollars to confirm in the region. We need to confirm those with the province though, which is an important step to ensure the entire 10-year plan committed.
“The Mayors don’t want this [transit expansion] to be piecemeal. We need the province to commit with the federal government as well.”
Home Owner Grant - Don't Forget to Apply!!!
It’s that time of year again when property taxes are coming due. Did you know that the average homeowner saves about $600.00 with the home owners grant?
On the bottom of your property taxes you will notice a section called “Home Owner Grant Application”. Make sure you take the time to fill that out!
Below is a list of frequently asked questions regarding property taxes.
When are my property taxes due?
Are my property taxes included in my mortgage payment?
TOTALLY RENOVATED HOUSE
in excellent neighborhood and cul de sac street.
Huge sunny deck great for BBQ, fenced in back yard w/ beautiful fruit trees (apple, plum & cherry), loads of curb appeal.
Amazing gourmet kitchen, shaker cabinets, large prepping island, handmade backsplash tiling from Turkey & stainless steel appliances.
Modern paint, large windows with lots of natural light throughout.
New hardwood flooring throughout, the main floor has been newly updated with beautiful hardwood in hallway, living room & dining room.
New base boards, crown moulding, casing on doors and designer paint colors.
Full self contained suite w/laundry for mortgage helper!
5 yr old roof, newer furnace in 2004 & water heater in 2005!
Nothing to do but move in!!!
Open House Saturday & Sunday 2-4pm
Congratulations to the new happy owners of #5 - 11176 Gilker Hill Rd. in Maple Ridge!