The New Westminster housing market is heating up fast in February! Home sales in January went up over 50% since January 2008, with apartment sales taking the lead. The listings/sales ratio for December 09 in New Westminster was 112% which means supply and demand are now leveling off making the market better for both sellers and buyers.

If you have any questions regarding buying or selling real estate, or would like a free home evaluation of your property, call James today!

604.315.3300 or james@jamesgarbutt.com

Diverse selection and favourable interest rates continue to drive demand in the Greater Vancouver housing market.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 1,923 in January 2010, an increase of 152.4 per cent compared to January 2009 when 762 sales were recorded and a 23.5 per cent decline compared to the 2,515 sales recorded in December 2009.

In terms of historical perspective, January ranked as an average month for number of residential housing sales over the past decade, with higher sales in January 2002, 2003, 2004, and 2006.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 17.2 per cent to $573,241 from $489,007 in January 2009. This price is 0.8 per cent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.
“Although home prices in the region have largely returned to their previous peaks, we still see a significant number of first-time and move-up buyers in the market, thanks to low interest rates and the diverse range of properties available today,” Jake Moldowan, REBGV president-elect said.

“There is also closer alignment between supply and demand in today’s housing market. At 18 per cent, the sales-to-active listings ratio in January is approximately 10 per cent lower than we’ve seen in our market over the last six months,” Moldowan said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,147 in January 2010. This represents a 39.1 per cent increase compared to January 2009 when 3,700 new units were listed, and a 139.1 per cent increase compared to December 2009 when 2,153 properties were listed on the Multiple Listing Service® (MLS®) in Greater Vancouver.

At 10,218, the total number of property listings on the MLS® increased 14 per cent in January compared to last month and declined 26 per cent from this time last year.

“Looking ahead, it’s difficult to know exactly what the Olympic effect will be on our market in February, although I think it’s fair to say it should be a quieter period for home buyers and sellers and so, in fact, may be a good time for motivated buyers to search for properties,” Moldowan said.

In January, sales of detached properties increased 141.4 per cent to 705 from the 292 detached sales recorded during the same period in 2009. The benchmark price, as calculated by the MLSLink® Housing Price Index, for detached properties increased 19.5 per cent from January 2009 to $788,499.

Sales of apartment properties in January 2010 increased 146.8 per cent to 891 compared to 361 sales in January 2009. The benchmark price of an apartment property increased 15.2 per cent from January 2009 to $385,487.
Attached property sales in January 2010 are up 200 per cent to 327, compared with the 109 sales in January 2009. The benchmark price of an attached unit increased 13.4 per cent between January 2009 and 2010 to $482,478.

Click here to download the updated stats package.

GREATER VANCOUVER REAL ESTATE STATS - JAN 5, 2010

New Home Information

The BC Government has announced that it will increase the threshold for the new housing rebate from $400,000 to $525,000 for its proposed 12 per cent Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010.

The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.

This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.

In October, 2009, the Board asked the government to raise the threshold for the HST on new homes as well as the new housing rebate.

A similar rebate will also support the construction or substantial renovation of affordable rental housing.

The government has released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, which provides details on new housing rebates including transitional rules for real property. This includes:

Transitional rules: the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010;

Grandparenting: sales of new homes under written agreements of purchase and sale including presales entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.

For a copy of the new Transitional Rules, visit: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html

After beginning the year at near record low sales levels, buyers’ confidence in the Greater Vancouver housing market quickly returned, allowing for significant and sustained increases in the number of residential property sales for much of 2009.
The Real Estate Board of Greater Vancouver (REBGV) reports that total unit sales of detached, attached and apartment properties in 2009 reached 35,669, a 44.8 per cent increase from the 24,626 unit sales recorded in 2008, but a 6.3 per cent decline from the 38,050 residential sales in 2007.
The number of homes listed for sale on the Multiple Listing Service® (MLS®) in Greater Vancouver declined 15.5 per cent in 2009 to 52,869 compared to the 62,561 properties listed in 2008.
“Low interest rates, an economy emerging from recession and continuing to improve, and consumer confidence led to the resurgence experienced in the Greater Vancouver housing market in 2009,” Scott Russell, REBGV president said. “Home sales neared or passed monthly records in Greater Vancouver throughout the latter half of 2009. In fact, last month’s home sales rank as the third highest selling December in the 90-year history of our organization.”
Residential property sales in Greater Vancouver totalled 2,515 in December 2009, an increase of 172.2 per cent from the 924 sales recorded in December 2008, and an 18.4 per cent decline compared to November 2009 when 3,083 home sales occurred.
The residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 16.2 per cent to $562,463 between Decembers 2008 and 2009.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 2,153 in December 2009. This represents a 38.9 per cent increase compared to the 1,550 new units listed in December 2008 and a 41.1 per cent decline compared to November 2009 when 3,653 properties were listed.
“The number of homes listed for sale on our MLS® has been in decline in Greater Vancouver for eight of the last nine months, which results in upward pressure on home prices and less selection for buyers to choose from,” Russell said.
Total active listings in Greater Vancouver currently sit at 8,939, a decrease of 41 per cent from December 2008, and a decrease of 19 per cent from November 2009 (see graph on page two for more detail).
Sales of detached properties in December 2009 increased 159.2 per cent to 902, compared to 348 sales in December 2008. The benchmark price for detached properties increased 18.3 per cent to $766,816 compared to December 2008.
Sales of apartment properties in December 2009 increased 176.7 per cent to 1,154, compared to 417 sales in December 2008. The benchmark price of an apartment property increased 14.8 per cent since December 2008 to $382,573.
Attached property sales in December 2009 increased 188.7 per cent to 459, compared with the 159 sales in December 2008. The benchmark price of an attached unit increased 12.9 per cent between Decembers 2008 and 2009 to $478,093.

Home prices in Vancouver are almost back to where they were before the financial crisis hit. Prices in September rose 1.5% from August, according to this week’s Teranet-National Bank House Price Index.

It was “the smallest increase since the April bottom, but still substantial,” notes report author Marc Pinsonneault, senior economist, economic and strategy team, National Bank Financial Group, in a release. “If October shows the same rise, Vancouver prices will be back to their peak of August 2008.”

Year-over-year, the index for Vancouver home prices was down 1% in September.

The National Composite index, which brings together resale numbers from six major cities, was up 1.3% in September from the month before. The report’s author notes this was in keeping with more homes being sold and fewer coming on to the market thus far in 2009. (The index utilizes a repeat sales methodology, studying homes that have sold at least twice, measuring the increase or decrease of the property value in the period between the sales in a linear fashion.)

For the first time in three months, prices were down in Montreal, which showed a month-on-month drop of 0.2%. The other cities that make up the National Composite Index showed increases in September: 2.1% in Toronto, 1.1% in Calgary, 0.9% in Ottawa and 0.6% in Halifax.

However, nationally, prices in September still showed a decline from a year earlier. The National Index fell 1.8% year-over-year in September.

“It was the 10th consecutive 12-month decline, but the 12-month decline has been diminishing steadily since it peaked at 6.9% in May,” Mr. Pinsonneault notes. “September was the fifth straight month in which the index reading for Canada as a whole was up from the month before.”

Alongside the year-over-year decline in Vancouver, a 5.4% fall in Calgary and a 5.1% drop in Toronto home prices indices helped to weigh down the national figure. However, the three other cities that make up the index all saw year-over-year rises: Ottawa (3.4%), Montreal (2.9%) and Halifax (1.7%).

There were also improvements visible in house prices south of the border. The seasonally adjusted numbers for the S&P Case-Shiller house price index, which also measures resales, rose for the fourth straight month, up 0.3% in September for the 20-city composite index and up 0.4% from August for the 10-city index.

“Based on two popular measures, Case-Shiller and FHFA, house prices have stopped falling in recent months, as stronger demand has normalized the months’ supply of unsold homes,” notes Sal Guatieri, senior economist, BMO Capital Markets. “This may be cold comfort to the one in four borrowers who are underwater on their mortgage, and the over seven million in arrears or in foreclosure, but at least it will help stem the bleeding.”

The 20-city index is still down 9.4% on a year ago and the 10-city index is off 8.5%.

Homes sales, both new and existing, show signs of life.

Existing home sales in the U.S. leapt 10.1% to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, according to the National Association of Realtors. This is a 23.5% increase on October last year and the highest level of activity for two and a half years.

“The big upside surprise in October existing home sales goes a long way to countering recent disappointing figures on mortgage applications and housing starts,” Mr. Guatieri says.

Rounding off the more positive numbers this week, U.S. new home sales rose 6.2% in October from a month earlier to reach 430,000 units, the highest level in a year and 5.1% up on October last year. (New home sales are more indicative of strengthening economic activity than are resales.)

“On the surface, one would have assumed that the surge in sales activity was induced by the rush of first-time home buyers trying to get ahead of the originally scheduled end of the first-time homebuyers’ tax credit at the end of October,” notes Millan Mulraine, economics strategist at TD Securities. “However, given the lopsided regional dimension to the increase in home sales, we are not entirely convinced that this was the only story.

“Interestingly, sales were only higher in the South, where activity surged a whopping 23.2% month over month; sales in the Midwest were sharply lower (-20%), while sales activity in the West and Northeast dropped 5.1% month over month.”

Potential condo purchasers should have their eyes wide open and fully understand what they are getting into before signing a purchase agreement. It’s all about doing homework regarding condo fees, reserve funds and lender requirements — as well as seeking affordability.

If you’ve never owned a condo before, take some time to educate yourself or find a professional to help you through the wads of paperwork that come with buying that apartment or townhouse.

Condominium fees are taken into consideration by mortgage lenders in determining if a borrower qualifies for a mortgage, he says.

For example, a $200 monthly condo fee can “affect your purchasing power by more than $18,000″ based on a five-year fixed rate of 4.39 per cent with a 25-year amortization.

“So, if you’re looking for a higher-priced condo with high fees because you felt that was all you could afford, you should talk to a real estate expert to ensure you understand what you can qualify for if it is condominium versus single-detached home.”

It’s also key that you understand just what the condo fee covers — something that varies from property to property.

It’s likely the higher the fee, the likelihood it will cover more than just cutting grass and shovelling snow. In some cases, the building might have a pool or fitness facilities and that will mean more fees.

“While the pool or fitness room is nice to have, seriously consider if they will be features you will use,” “Otherwise, you might be better looking at a property with fewer amenities but more affordability,”

Then there is the reserve fund. If a condominium corporation doesn’t have one, think seriously about looking elsewhere. If there is a fund, know its status.

Condo fees are partly used to establish a reserve fund for the building, with the purpose of saving cash for long-term replacement of major components as they wear out, such as the roof or mechanical systems. Prospective buyers should understand the maintenance program that has been established for the building and determine if the reserve fund is sufficient to handle it.

If it isn’t adequate, there will either be an increase in fees somewhere down the road and/ or a special assessment.

If you have any real estate buying or selling questions, please contact James Garbutt, 604-315-3300 or james@jamesgarbutt.com

VANCOUVER, B.C. – November 2, 2009 – Strong demand has led to a steady rise in Greater Vancouver home
prices compared to last year.
Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential proper-
ties in Greater Vancouver increased 6.8 per cent to $553,702 from $518,668 in October 2008.
“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott
Russell, Real Estate Board of Greater Vancouver (REBGV) president said. “We’re coming off several months of
unseasonably high sales levels, which has allowed for a gradual increase in home values this year,”
The REBGV reports that residential property sales in Greater Vancouver totalled 3,704 in October 2009, an
increase of 4.1 per cent from the 3,559 sales recorded in September 2009, and an increase of 171.6 per cent com-
pared to October 2008 when 1,364 sales were recorded. Looking back two years, last month’s sales increased 22.3
per cent compared to October 2007 when 3,028 sales were recorded.
“High confidence and low mortgage rates are continuing to drive the activity we’re seeing in the housing market
today,” Russell said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,977 in October
2009. This represents a 2.3 per cent increase compared to October 2008 when 4,867 new units were listed, and
a 13.4 per cent decline compared to September 2009 when 5,764 properties were listed on the Multiple Listing
Service® (MLS®) in Greater Vancouver.
At 12,084, the total number of property listings on the MLS® decreased 4.1 per cent in October compared to
last month and declined 37 per cent from this time last year.
Sales of detached properties increased 201.6 per cent to 1,487 from the 493 detached sales recorded during the
same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached
properties increased 7.7 per cent from October 2008 to $749,808.
Sales of apartment properties in October 2009 increased 148.4 per cent to 1,607, compared to 647sales in Octo-
ber 2008. The benchmark price of an apartment property increased 6.3 per cent from October 2008 to $380,975.
Attached property sales in October 2009 are up 172.3 per cent to 610, compared with the 224 sales in Octo-
ber 2008. The benchmark price of an attached unit increased 4.6 per cent between Octobers 2008 and 2009 to
$468,798.

The market for existing homes made healthy gains in the first two weeks of October — then again, this is compared to the angst-ridden days of last October.
A total of 3,631 homes were sold in the first two weeks of October — up 34%, compared with the same period last year.

Realtors reported 3,631 sales of existing homes in the first two weeks of this month. This represents a 34% jump, compared with the same period last year. Buyers were obliged to dig deeper into their pockets, as the average sales price rose to $414,479, a 17% increase for the first two weeks of October 2008.

“While demand for existing homes has remained strong, it is important to recognize the context of current statistics, We are now making comparisons to the fall of 2008 when we experienced a marked decline in sales and average price.”

Taking the total sales for 2009 thus far, numbers are up to 69,964, a more modest 6% increase on the same period last year. The average price for year-to-date sales in 2009 is $389,687, a 2% rise on last year’s number.

The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 68 per cent to 8,576 units in September compared to the same month last year. The average MLS® residential sales price in the province climbed 15 per cent to $474,169 from $412,149 in September “Upward momentum in consumer demand continued unabated in September,” said Cameron Muir, BCREA Chief Economist. “Low mortgage interest rates and renewed confidence in real estate assets has propelled BC home sales to a level not seen in two years.” September posted the highest number of BC MLS® residential sales for that month since September 2005, and the third highest ever recorded for the month of September. “While Victoria and the Lower mainland are exhibiting strong sellers’ market conditions with rising prices, housing markets in the rest of the province are experiencing a more gradual recovery,” added Muir. Year-to-date, MLS® residential sales dollar volume increased 6 per cent to $29 billion over the same period last year. A total of 63,521 units were sold in the first nine months of 2009, up 6 per cent from 2008, while the average MLS® price declined 1 per cent to $457,389. The housing market is heating up fast! If you’re looking to buy or sell real estate in Burnaby, New Westminster, Vancouver or anywhere in the lower mainland, now is the time to do it. Apartment, townhouse & detached house prices are on the move. Call me or email me today, I’ll send you a market snapshot of your area, where you can see homes for sale, sold homes, pricing differences and other data to give you a better idea of the market in your area.