Different!

Location, Location, Location

Anyone who has ever thought about Vancouver real estate knows that location counts. The location will determine a very different outcome when you decide to sell and you may well ask how different can it be?

Below are two examples of such a difference in results in what many consider a slow market. The word ‘prime’ comes to mind but let the numbers speak loud and clear in telling you that the location of your Vancouver property will predetermine just how ‘slow’ a market it is.

Differences

Kitsilano

Kitsilano Sales

Marpole

Marpole Sales

Thoughts

With sales of plus 44% and minus 82% – when buying into a Vancouver neighbourhood be certain you understand the difference!

In this city we suffer from those who choose to make noise. I can’t figure out whether they didn’t get enough milk with their Corn Flakes or they are simply having a bad hair day.

In the last post a couple of comments flew in about how the Vancouver Real Estate Board stats seem to be something less or more than what they are.

Personally, I find conspiracy theories raise their head because someone doesn’t understand or have the knowledge of how things come to be. Then they pull out the crusader’s sword demanding raw data so that you can make their own stats. That action I believe, will do nothing more than dilute source statistics thereby adding confusion to something that already seems confusing. It’s an action I equate to locking five economists in a room and demand that they reach consensus.

The Comments

“Honestly, it seems to me that the REBGV is playing with stats.” – Anon

“It is really weird. The sales and average price that cannot be distorted by REBGV all show negative signs for the market. Only the benchmark price that no body knows how it is calculated by REBGV shows a highest price ever.
“Frankly, REBGV is not willing to see a price decrease.” – Pop Smith

The Magic of Stats

Wonder no more! The attached unedited document describes the following:

• The MLS®Home Price Index.
• What is the MLS®Home Price Index?
• What are Benchmark Properties and Benchmark Prices?
• What’s the difference between a Benchmark Price and Index Price?
• How is the MLS®HPI calculated?
• What property types and geographic areas are measured by the HPI?

MLS®HPI Guide

Final Word

In providing this information it is done with the wish that for those who choose to can read, understand and by doing so will be sufficiently enlightened to say “oh that’s how it’s done” and be satisfied.

Sampler of What’s Ahead

The Real Final Word

Life is too short so to be clear, I’m not prepared to spend time in endless discourse on this blog about how benchmark manifestations should be customized to personal preferences. I trust that as evidenced in the report minds greater than mine have figured it out and it works correctly.

My lasting response to those who wish to engage these issues further is to rely on Porky Pig’s proclamation.

Copyright Image Courtesy Warner Bros.

Someone once said that April Showers will bring May’s flowers. That must have been a long time ago and was before global warming, low interest rates and stratospheric Vancouver home prices.

Someone also said that ‘Stats Don’t Lie’ and according to the Real Estate Board of Greater Vancouver our market has maintained a consistent pace with balanced conditions. With that feel good statement let’s cast aside negative thoughts as we ready ourselves for May’s bloom. In the interim lets have a look to see what a consistent balanced condition looks like in numbers.

April Highlights

Sales:

• property sales in Greater Vancouver reached 2,799 on the Multiple Listing Service® (MLS®) in April 2012. This represents a 13.2 per cent decline compared to the 3,225 sales recorded in April 2011 and a decline of 2.6 per cent compared to the 2,874 sales in March 2012.
• April sales were the lowest total for the month in the region since 2001 and 16.9 per cent below the 10-year April sales average of 3,369.

PPS – Positive President Spin

“Although April sales were below what’s typical for the month, we continue to see, with a sales-to-active listing ratio of nearly 17 per cent, a balanced relationship between buyer demand and seller supply in our marketplace,” – Eugen Klein, REBGV President.

Listings

• New Listings – all segments totalled 6,056 in April 2012 – up 3.6 per cent from March 2012
• New Listings Last month up 6.7 per cent above the 10-year average April
• Total Active Listings – 16,538, up 8.5 per cent compared to last month
• up 16 per cent from this time last year

MLS® HPI benchmark

• Vancouver Price = $683,800 – up 3.7 per cent compared to April 2011
• Up 2.8 per cent over the last three months.
• *Lower Mainland benchmark price = $612,000 – up 3.4 per cent compared to April 2011

Detached Sales

• Down – Total = 1,126, a decline of 19.7 per cent
• Benchmark price up 6.3 per cent from April 2011 to $1,064,800

Apartment Sales

• Down – Total = 1,190 a decline of 0.9 per cent
• Benchmark price up 1.1 per cent from April 2011 to $375,900.

Townhome

• Down – Total = 483, a decline of 22.3 per cent
• Benchmark price up 1.7 per cent between April 2011 and 2012 to $487,300

Information Courtesy The Real Estate Board of Greater Vancouver
Full Report Here

Nobody really wants to leave the warmth and enticement of a hot date with a real estate market on the rise.

Much like Dean Martin’s singing about every possible reason why his hot date should not leave so to must many Vancouver home sellers.

Average Price 1977 – 2012

Detached

Vancouver home prices have in some pockets of the city some homes continued their headlong rush skyward but they are few and have not provided reason sufficient to block the door from a chilling market.

Following March’s drop to $1,155,521 from February’s all time high of $1,235,244 Hopes that the hot date might change her mind in April were dashed as the drop continued to $1,106,683.

Attached

Nobody really wants to be out in the cold yet, like detached homes, the attached segment also saw the average price drop in April to $580,733.

Apartment

Vancouver Apartments average price provided a small glimmer as average prices rose from March’s $444,993 to April’s $445,458.

Vancouver Real Estate Average Prices:

Vancouver Real Estate Inventory – Active Listings

Vancouver Real Estate – Units Sold

*Percent = YOY

There many good Vancouver people who wave the flag proclaiming that Vancouver is the very best place on this world to live. Some are sufficiently bold to proclaim that this place we call Vancouver is ‘super natural’!

Armed with tabulated daily total listings for the Real Estate Board of Greater Vancouver, the Fraser Valley Board and the Chilliwack Real Estate Board since October of 2010, some might also say that the meteoric climb in home listings in 2012 has crossed over into the realm of the super natural.

Hitting the Big Time

On October 1 of 2010 the Total Listing count was 24,457. It seemed then, to be an extraordinary number of listings. A month later on November 1, 2010, 1,934 units of those Total listing dropped off this earth as the total began to slide down to 22,523. A month later that downward slide accelerated as it dropped another 2,180 units.

On October 1st of 2011, it seemed we had hit the big time when Total listings set a not-seen-before record of 25,235 units. Then at approximately the same time as in the year before, things started to change but more slowly. A month later on November 1, 2011 listings had dropped by less than half when compared to the same period in 2010. With only 909 units off the books the total number of listings faltered but remained high. As winter settled in with its long dark days, the total listings began to recede in December to finally reach its lowest point in that cycle on January 04, 2012 when only 15,444 listings were registered on the board’s systems. In just 4 months to this April we have hit the big time as the Total number of listings reached yet another new high of 25,424 units.

Different Then and Now

Going back to January 04, 2011 the total recorded was lower at 13,966 – some 1,478 less than January 04 of 2012. Like last year, total listings started their rush as they climbed higher each month. The pattern was the same now as then except for this difference. In 2012 the level of Total Listing has accelerated so much so that it has eclipsed 2011′s high a full 6 months ahead of anticipated schedule.

Eclipsed Implications

With a smirk, you might think someone had switched the months of the year on your 2012 calendar. The reality is that this hasn’t happened but to use the misquoted phrase from the Apollo 13 space flight commander – “Houston we have a problem.”

There is no reason to suspect that the headlong rush of listings coming to market will begin to slow in the short term. After all, your calendar tells you it is the wrong season for it to stop! Puzzling is that if this rush continues at this pace can anyone really know when the Total Listing count will reach their ultimate high in 2012?

Opposing Thoughts

The Total Listing rush gives reason for concern.

By inference, Sellers, all 25,424 of them spread across the lower mainland, are hoping to sell their homes. As such, with this great number of listings the competition to secure a buyer is fierce.

With new mortgage rules in place and perhaps even more to come, remaining are a rather select group of buyers who meet the requirements of having saved a down payment, a steady job, and the ability to qualify for mortgage finance. Add to this, that in the majority, these now exclusive buyers are more selective about the home they will consider buying. Critical decision makers, this new group of buyers demand value for money in things such as quality construction, renovation, proximity to schools, parks, community centers, transport and child care.

Shrinking

The selection of Vancouver and valley homes are as diverse as are the owners. It could be said that there is in this mix a home that will suit every buyer were it given that there were enough buyers ready willing and able to purchase every Vancouver home. Based on the new and the potential for more regulation in financing requirements and the lack of rising income levels, it seems obvious that the buyer pool is shrinking at a time when there are more listings than ever at prices higher than before.

It seems obvious that opposing forces are at work as the number of homes for sale increase while the number of potential buyers decrease. These opposing forces have the potential to generate an outcome that may be considered as super natural as a meteor hitting earth.

Looking Ahead

If the graph is a portent of the future in the months ahead we might expect a massive and more rapid drop in listings exceeding those adjustments seen in a late winter market. In addition, if that calendar is real, it might be sooner than later.

By way of casual observance it is suggested that prevailing human nature will dictate that many of these sellers would rather not sell and forgo perceived gains by removing their home from the market place. Alternatively, total listing levels may sustain but see price reductions by sellers who due to imposed or selected circumstance, can’t wait any longer. Ultimately, something has to give!

Regardless of what some sellers wishes are current income levels and mortgage rules are tightening the noose. In time a change must occur and market watchers salivate as they stand in shared excitement with the thought of seeing super natural Vancouver real estate forces collide.

The third in a series of seven community real estate snapshots, is about Richmond.

I usually have something to say about this or that. For a change up it seemed fair to make this post about you. It’s your turn to a say something other than ‘bloodbath’, the ‘world is ending’ or some other typical bear/bull statement that adds nothing to understanding. If you are nice, I’ll post the comment. If you are cranky forget it!

Bottom line – Friday’s are for fun. Most people read comments so let’s have some. Be brilliant and make the most of Your Turn!

This snapshot of Richmond covers two periods that extend from February 25 to April 24, 2012.

Total Listings

Total listings dropped from 1,191 in the Feb/Mar to 1,185 in Mar/Apr.

Homes Sold

Sales took a hit as they dropped from Feb/Mar’s 101 to Mar/Apr’s 72.

Expired, Days on Market

• Expired listings totaled 63 in Feb/Mar and 86 in Mar/Apr.
• Days to sell increased from Feb/Mar’s 45 to 50 in Mar/Apr.

Richmond Detached Homes Average and Median Prices

• Feb/Mar’s Average Ask price was $1,230,082. Mar/Apr was $1,093,497.
• The Median Ask price in Feb/Mar $988,000. It changed in Mar/Apr to $993,000.
• Feb/Mar’s Average Sold price was $1,162,398. Mar/Apr’s was $1,046,359.
• The Median Sold price in Feb/Mar $943,000. Mar/Apr was $949,250.

It’s Your Turn!

In this the second snapshot of real estate activity in seven Vancouver communities, you might think Burnaby’s real estate market looks like….

This snapshot encompasses all of the Burnaby neighbourhoods for two 30 day periods beginning February 25 and ending April 24, 2012.

Total Listings

The total number of listings dropped just enough so you would notice as Feb/Mar tallied 566 while Mar/Apr signaled a small drop to 553 units.

Homes Sold

It will be interesting to see what the month end stats show us but Burnaby’s indicators suggest a slow down as sales declined from Feb/Mar’s 91 units down to 64 in the Mar/Apr period.

Expired, Days on Market

• Something to watch is the number of listing mandates that expire. Expired mandates tell you that some sellers have set price goals out of line with the market or they have a crappy house that nobody wants at any price, or dare it be said, the Realtor® doesn’t know how to establish a market value. At it’s worst it could be all three.

  Speculative reasons put aside, Burnaby saw 12 mandates expire in Feb/Mar then saw that number more than double to 26 in Mar/Apr.

• Good well priced homes in any market sell fast and as we can see Burnaby had some of these as the average number of days it took to sell a house dropped from Feb/Mar’s 24 to Mar/Apr’s 17.

Burnaby Sold Homes Average and Median Prices

• Feb/Mar’s Average Ask price of a sold property was $992,000. This price wobbled in Mar/Apr as it dropped to $987,243.
• The Median Ask price for sold Burnaby detached home in Feb/Mar was $898,000. The Median saw a small up tick as it reached $899,000 in Mar/Apr.
• Feb/Mar’s Average Sold price was $992,000. The Average held on as it registered $980,201 in Mar/Apr.
• The Median Sold price for a sold home in Burnaby during the Feb/Mar period rang in at $888,000. Those good Feng Shui numbers worked their magic in Mar/Apr as it registered a Median sold price of $919,000.

Smacks

Burnaby’s real estate seems to be an example of what I’m hearing on the street from various Vancouver Realtors®.

There isn’t a clear direction that smacks you in the face saying it’s this or it’s that! The lack of sales in almost any other circumstance would dictate substantial price adjustments. However, the words substantial and adjustment together have yet to appear in this snapshot of Burnaby’s real estate market rendering this us dazed and confused.

Vancouver home Buyers and Sellers often ask ‘what happens to the deposit when I buy or sell my home?”

Brian Taylor of Bull Housser LLP fame, comes to our rescue with the answer.

Read Your Agreement

Section 12 of the standard Contract of Purchase and Sale provides that unless the balance of the purchase price is paid on the completion date “the Seller may, at the Seller’s option, terminate this Contract, and, in such event, the amount paid by the Buyer will be absolutely forfeited to the Seller…on account of damages without prejudice to the Seller’s other remedies.”

Old Justice

Following a line of authority first established by the BC Court of Appeal in 1997, Section 12 was generally interpreted as requiring the deposit to be forfeited to the seller where the buyer failed to complete, irrespective of whether or not the seller had suffered any actual damages.

New Justice

However, in 2009 another BC Court of Appeal decision, which did not consider the earlier decision, cast doubt on that interpretation. In the more recent case, the court held that the proper construction of Section 12 was that if the sale doesn’t complete, the deposit is not automatically forfeited to the seller; rather the seller is entitled to claim the monies paid as a deposit on account of damages. If the damages are less than the amount of the deposit, the seller is not entitled to the excess but it is returned to the buyer.

Unsure Justice

The apparently conflicting views in these two BC Court of Appeal cases were considered in a recent BC Supreme Court decision where a seller, who had not suffered any actual damages, sought to retain the deposit as a result of the buyer’s failure to complete. The court considered the two BC Court of Appeal cases and was able to reconcile the apparently conflicting decisions.

In the 1997 decision, the Contract of Purchase and Sale contained language providing that, in the case of the buyer’s failure to complete the deposit would be non-refundable and absolutely forfeited to the seller. The more recent 2009 decision considered the current language of Section 12 which merely states that the deposit is absolutely forfeited.

Adjusted Justice

The court concluded that the two decisions were not irreconcilable. It found that in the earlier case, the contract contained the language “non-refundable” and that language, together with the phrase “absolutely forfeited”, was enough to show that the deposit was payable to the seller in full without proof of damages. Whereas in the latter case, the mere presence of only the phrase “absolutely forfeited” was not sufficient.

Following the reasoning in this most recent BC Supreme Court decision, the operative portion of Section 12 of the standard Contract of Purchase and Sale has now been amended to read:

“…the amount paid by the Buyer will be non-refundable and absolutely forfeited to the Seller.”

No More Doubt

The addition of this language should resolve any possible ambiguity and once again provides that where a buyer fails to complete, the deposit will be forfeited to the seller without proof of damages.

Courtesy British Columbia Real Estate Association
“Copyright British Columbia Real Estate Association. Reprinted with permission.”

I like watching hockey. The fast, furious and constantly changing game starts with a puck dropping. Our home town team the Canucks, had high hopes for a first round come back but after mere minutes of overtime play it was not to be.

Some who watch the Vancouver’s real estate market might suggest that it too is fast, furious and constantly changing. In this the first of a seven community series, we will have a look at Coquitlam and like the Canucks, hold hope high that it will survive an overtime period.

This Coquitlam community snapshot covers the period from February 25 to April 24, 2012.

Packed House

Fans pack an arena when a series final is played. Total listings in Coquitlam packed this local market in Feb/Mar for a total of 574 units. In the last 30 day period a few listings didn’t make it to the game as Mar/Apr’s turnout was 506.

Bouncing Pucks

Made from vulcanized rubber, hockey pucks are frozen before a game to help stop them from bouncing on the ice. It seems that Coquitlam’s sales pucks didn’t make it to the freezer as sales bounced from 137 in Feb/Mar down to 60 in Mar/Apr.

Expired and Days on Market

• Feb/Mar saw 11 listing mandates expire. In Mar/Apr that number crossed the blue line at 20.
• The average number of days it took to score a home sale in Coquitlam increased from Feb/Mar’s 28 to Mar/Apr’s 30.

Average and Median Price Scores

• It’s uncertain whether Coquitlam home sellers will turn in their seasons tickets as they watch Average Asking prices for sold properties drop from Feb/Mar’s $785,662 to Mar/Apr’s $762,789.
• Median Ask prices for sold properties in Feb/Mar crossed the center line at $777,800 only to be slammed into the boards as Mar/Apr recorded $739,000.
• Average Sold prices in Feb/Mar’s $774,915 came out from behind the net but were cross checked as Mar/Apr recorded the hit at $749,417.
• A slap shot sent Feb/Mar’s Median Sold price of $766,355, clear of the net and above the glass to record $734,950 in Mar/Apr.

Thoughts

60 sales may indicate the outcome of Coquitlam real estate’s overtime period.

Image Credit: Flicker Geoffery Kehrig

In this current Vancouver home market it is a difficult task to find that perfect home where price, size and location coalesce – 567 East 13th has it all.

Price

Asking $728,888 this is a bargain when compared to many Vancouver detached homes.

Big is Better

Design is everything when it comes to maximizing space. Within 1,250 square feet you will find everything you were hoping for.

Upstairs

You will sleep in comfort in either of the three generous sized bedrooms. Complimenting the bedrooms are two full bathrooms complete with tub and shower – the master bedroom has its own full bath.

Click Floor Plan for Full View

Main Floor

Enter this home through doors with beveled glass highlights. Marvel at the deep beauty of cherry hardwood floors that create an oasis in the living and dining rooms. Relax beside the radiant gas fireplace. Entertain your dinner guests and never feel removed from the conversation with this home’s open concept and huge flow thru window between the living and dining room.

Harwood, Tile and Granite

Tastefully finished for your enjoyment, you’ll relish the warmth and beauty of cherry finished hardwood floors in the main rooms with functional yet beautiful Italian tile in your kitchen work space where the glass tile back splash compliments the granite counter tops.

Warm and Cozy

There is nothing like a fireplace to help you settle into a peaceful and relaxing evening a home. A flick of a switch and your days worries fade with the radiant warmth from flickering flames.

Your Private Space

Barbecue in privacy on your sunny south, south west concrete patio encapsuled by the freshly stained cedar fence that provides the ultimate in privacy. Alternatively lounge on your own patch of grass, grow your favorite flowers or grow your own vegetable garden. This yard has it all.

Central Location

Steps to Main

This emerging neighbourhood is just a short walk from south Main street where new exciting restaurants, coffee bars and shops are but a few blocks away.

Hub

You’ll be hard pressed to find a location as close to everything Vancouver offers. This superb central location places you at the hub of the city where your commutes are measured in minutes, not hours. Whether your travels are cross town or down town using bicycle commuter routes, Trans Link roadways – easy access to all are at your door.

Your Own Park

Across from Robson Park – named for the Honourable John Robson, Premier of British Columbia at the time of Vancouver’s incorporation is where according to a Yelp review you will find a place that is “Not too big, not too small, this park is juuuuuust right. Frequented by children and hipsters alike, this park is super inclusive. You may even be recruited from the street beside the park to come play kickball on a Monday night. Just say yes. You know you want to. Robson Park makes you act like a kid again, and that is okay.”

Got Kids?

Just a half block west is the Mount Pleasant Family Centre. Here you will find “a drop-in centre for parents and children in the community that promotes and organizes workshops and other activities designed to develop skills for family living.”

Need Exercise?

No worries! The new Mount Pleasant Community Center is a 5 block stroll.

Does Your Car Need a House?

Included is a fully self contained single car garage.

More Information