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June News Release
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FOR SALE   

1655 Nelson  

#103 1655 Nelson Street

Vancouver

 

Rarely available 2bed +den in the heart of the West End for under $500k!  Stylish renovations that include high-end designer paint, crown moldings and new light fixtures.  This home boasts a newer kitchen with new eating bar. Bring your family...move in with roommate or hold as an investment property.  This rental and pet friendly building offers unlimited possibilities.  Do not miss this rare opportunity! $474,000

 

 

SOLD!  

1200 W Georgia 

#3301 1200 W Georgia St

Vancouver

 

English Bay & Coal Harbour VIEW! Well designed one bedroom/den unit. Hardwood floors, granite kitchen counter. Building offers 24 hours concierge, high speed internet, fitness centre & more. Walk to Robson Street & Stanley Park. Wonderful tenant for the past 2 years would love to stay. Excellent live-in/investment property in prime downtown area.

 

Greetings!   

What does a majority Conservative government mean for the housing sector?

 

Most financial analysts agree that the business-friendly Conservatives will continue to prioritize the health of the overall economy, a message that will be well-received by the investment community. This, combined with the first majority government that Canada has seen in over half a decade, provides a platform of stability that financial markets crave. These two factors will amplify Canada's already strong economic reputation and will give us the best chance of having a strong, stable economic base in the near- and mid-term.

 

"The more stable government is good news for foreign investors, particularly as balancing the budget remains high on the agenda," says Jennifer Lee, senior economist with BMO Capital Markets. "With its majority hold, the Conservatives will likely blunt the impact of the new official opposition, the NDP. And with the Bloc Quebecois losing official party status, separatist issues will retreat to the back."

 

Policy-wise, the Conservatives did not outline any new housing-related initiatives during the election. However, in their last term, they moved to increase the insurance requirements of the Canada Housing and Mortgage Corporation (CMHC) in order to cool off the run-up in real estate prices in certain jurisdictions. These new rules effectively tighten lending requirements, which is seen by many as a necessity during this low-rate environment to deter boom-and-bust real estate cycles.

 

The rapid appreciation in prices over the past year, especially in some areas of the Lower Mainland, is getting the attention of government officials. It is believed that these prices have been driven up by Chinese investment, as these neighborhoods represent the areas where investor class Chinese immigrants tend to settle. That said, the Conservatives worked very hard to court the new Canadian vote in the previous election and their platform seems to indicate that they will increase the number of economic immigrants - at the expense of other immigration categories - rather than reduce them.

 

So while it is unlikely that this government will do anything other than encourage economic immigration, there is a growing concern that locals are being priced out of the market. Whether government policy is put in place to rectify this is something to watch, although, given that it really only affects Vancouver, it seems unlikely.

 

Overall, it seems as though this new Conservative majority government is positive for the housing market. That said, government policy and leadership only plays a small role in the economy. When things go well, they tend to get too much credit. And when things go poorly, they receive a disproportionate amount of the blame.

June Graph
 

Greater Vancouver housing market holds steady and favours sellers in May 

 

Home sales remained at typical springtime levels on the Multiple Listing Service® (MLS®) in Greater Vancouver in May.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,377 in May 2011, a 7 per cent increase compared to the 3,156 sales in May 2010 and a 4.7 per cent increase compared to the 3,225 sales in April 2011.

 

Looking back further, last month's residential sales are 8.1 per cent below the ten-year average for sales in May. The three highest selling Mays ever recorded occurred in 2005, 2006 and 2007 when sales exceeded the 4,000 mark each year.

 

"With a sales to active listings ratio of 23 per cent, conditions continue to favour sellers in the Greater Vancouver housing market, but activity has eased away from the near record-setting pace we saw in March," Rosario Setticasi, REBGV president said.

 

New listings for detached, attached and apartment properties in Greater Vancouver totaled 5,931 in May 2011. This represents a 15.4 per cent decrease compared to May 2010 when 7,014 properties were listed for sale on the MLS®, which was the second highest total for May on record. Last month's new listings increased 1.4 per cent compared to April 2011.

 

At 14,656, the total number of residential property listings on the MLS® increased 2 per cent in May compared to last month and declined 16 per cent from this time last year.

 

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months increased 6.2 per cent to $627,568 in May 2011 from $590,662 in May 2010.

 

"We're seeing more activity at the high end of our market this year than we did one year ago. This is causing today's average prices in the region to be less reflective of the total activity occurring in the marketplace," Setticasi said.

 

"The Housing Price Index benchmark prices are more accurate, reliable indicators of housing prices compared to averages."

 

Of all residential properties sold on the MLS® in Greater Vancouver in 2011 to date 21 per cent sold for $1-million or higher and 20 per cent sold for $350,000 or lower. While 77 per cent of the properties that sold for over $1-million were located in West Vancouver, the Westside of Vancouver or Richmond, the properties that sold for $350,000 or lower were located throughout the entire Board area.

 

Sales of detached properties on the MLS® in May 2011 reached 1,570, an increase of 25 per cent from the 1,256 detached sales recorded in May 2010, and a 12 per cent increase from the 1,402 units sold in May 2009. The benchmark price for detached properties increased 10 per cent from May 2010 to $890,833.

 

Sales of apartment properties reached 1,228 in May 2011, a 9.3 per cent decrease compared to the 1,354 sales in May 2010, and a decrease of 15.8 per cent compared to the 1,458 sales in May 2009. The benchmark price of an apartment property increased 2.2 per cent from May 2010 to $407,419.

 

Attached property sales in May 2011 totaled 579, a 6 per cent increase compared to the 546 sales in May 2010, and a 12.8 per cent decrease from the 664 attached properties sold in May 2009. The benchmark price of an attached unit increased 3.5 per cent between May 2010 and 2011 to $517,787.

 

 

 
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