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The British Columbia Real Estate Association (BCREA) reports that a total of 103,763 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in 2017, a decline of 7.5 per cent from a record 112,211 unit sales in 2016. The average MLS® residential price in BC was $709,579 in 2017, up 2.7 per cent from the previous year. Total sales dollar volume was $73.63 billion, down 5.1 per cent from 2016.



“Robust housing demand in 2017 was underpinned by a strong economy, employment growth and rising wages,” said Cameron Muir, BCREA Chief Economist. “Above trend migration, both international and interprovincial, also bolstered housing demand, while broader demographic fundamentals added fuel to condominium sales in urban centres and to all home types in retirement-oriented communities.”


The BC housing market ended the year with a strong December. Home sales increased 4 per cent from November, on a seasonally adjusted basis. However, the year-end results were likely pushed higher by some homebuyers advancing their purchases to avoid tougher mortgage qualification rules in the new year.

In December, a total of 5,738 residential unit sales were recorded by the MLS® across the province, an increase of 21.5 per cent from the same period last year. Total sales dollar volume was $4.2 billion, up 36.3 per cent from December 2016. The average MLS® residential price in the province was $734,108, up 12.1 per cent from the same month last year.

 

BCREA is the professional association for about 22,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.
To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.
For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.

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The old Safeway on Austin Avenue is down to make way for a new and expanded grocery store. The property owner, Beedie Living, plans to build two new highrises after the store opens in the summer of 2019.

beedi

In the centre of Austin Heights, one of Coquitlam’s oldest neighbourhoods, excavators are at work tearing up the ground on the old Safeway site to make way for a massive redevelopment.

 

The 91,500-sq. ft. property at 1029-1033 Austin Ave. is owned by Beedie Living, the company that built the first highrise in the district after city council approved the Austin Heights Neighbourhood Plan in 2011, aimed at adding 5,000 more residents over the next 20 years.

 

But over the past seven years, there has been little interest by developers to renew the area.

 

Now, with real estate prices sky high and last year’s lift of the height moratorium on the strip — allowing developers to build up to 25 storeys — there’s been an uptick in activity.

 

Today’s condo market has meant strong demand and little supply, with the rise of land value now outstripping the building’s worth, said local realtor Wayne Tullis of MacDonald Realty.

 

And Beedie Living’s plans for the old Safeway site are expected to spur growth even faster.

sign

 

While Sobeys, the supermarket chain that owns Safeway, is currently rebuilding its grocery store (due to open in the summer of 2019), Beedie is proposing to flank it with two towers, adding retail units at street level and 23 storeys of residential above for a total of 346 new homes.

 

Next Thursday (Jan. 18), Beedie’s concept will be put to the public at an open house from 5 to 7 p.m. at the Royal Canadian Legion (1025 Ridgeway Ave.) as part of its consultation.


Andrew Merrill, Coquitlam’s community planning manager, said the mega-development comes with a cost: Beedie will have to shell out $9.5 million in development cost charges (DCCs) for new infrastructure, community amenity fees and a density bonus. And it will be responsible for streetscape frontage upgrades along Austin and Ridgeway avenues, and Nelson Street.

 

The area rejuvenation is music to the ears of Lisa Landry, executive director of the Austin Heights Business Improvement Association, which last month saw its five-year budget and mandate renewed by city council (the 69 area property owners will vote on the plans this month).

 

As the district is the last big commercial core before the Port Mann bridge, Landry said, entrepreneurs are flocking to Austin Heights and opening new shops: Artisan Gifts and Flowers, and Coffee + Vanilla — among others — moved in last year and, next month, chartered accountant Sharon Perry Inc. is set to relocate her office into the Meegan Business Centre.

 

coffee

 

Besides the new tenants, more redevelopment is coming, Merrill said, citing a rezoning bid for a five-storey building (with 75 purpose-built rental units and a new church) at the Como Lake United Church property at King Albert Avenue and Marmont Street (council gave second and third bylaw readings on Nov. 27); and a pre-application for a 13-storey mixed-used building with about 79 residential units plus ground-floor commercial, at 1044-1046 Austin Ave.


Meanwhile, city hall is getting a lot of queries about the old post office on Ridgeway, he said.

 

Landry said the BIA — which represents 280 businesses in an area bounded by Gatensbury and Blue Mountain, and Ridgeway and Austin, some of which have been in the neighbourhood for more than four decades — plans to showcase the revitalization in a series of marketing efforts.

 

“It’s an exciting time to be part of Austin Heights and there’s a lot of pride,” she said. “We have seen a large turnover with the real estate boom and we want to tell businesses coming into the area that we have a very loyal customer base, and we are invested and committed.”

 

Provided by: Janis Cleugh / Tri-City News  

 

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Wynwood Green’s mid-century inspired homes offer luxury in a sought-after location

 

Once a small bedroom community on the outskirts of Metro Vancouver, Coquitlam has grown into one of the largest and most vibrant cities in British Columbia.  Known for its parks, central location and excellent transit options, it’s no wonder people from across the Lower Mainland - first time home buyers, young families, downsizers and those who love the outdoors – move to Coquitlam for its combination of urban sophistication and idyllic green spaces.


Now they have another reason. Award-winning Anthem presents Wynwood Green, a luxury high-rise community nestled between The Vancouver Golf Club and Brookmere Park in West Coquiltlam.  Featuring mid-century modern architecture by IBI Architects, the two elegant juxtaposed concrete towers include 379 one, two and three bedroom homes.


Wynwood Green’s first phase, a 23-storey tower, includes homes from 538 square feet ranging upto 1,299 square feet.  Each home features over-height ceilings, wide-plank flooring, Bosch integrated appliances and large, expansive windows overlooking extraordinary views.  Aspiring chefs will love the gourmet kitchens with quartz waterfall countertops, integrated pulls, full height porcelain backsplash, pull out pantry and open display cabinetry.


“We’re excited about the location of Wynwood Green. It’s not often we as developers get an opportunity to design a community adjacent to amenities like The Vancouver Golf Club, with direct access to the emerging North Road corridor with shops, services, restaurants, the SkyTrain, and the No. 1 Highway,” says Elva Kim, Vice President of Sales and Marketing at Anthem. “Each of the homes include large balconies to take advantage of the expansive views of the golf course, Burnaby and North Shore mountains, and the Vancouver skyline. The homes are designed to be timeless … classic with clean, modern lines.”

 

 

Wynwood Green residents will also enjoy exclusive access to the Wynwood Green Pavilion. The amenity building boasts an entertainment lounge, full kitchen, and a fitness centre with yoga studio and meditation centre.  Outside, a landscaped courtyard with seating and an indoor-outdoor fireplace and a grilling station will be perfect for those al fresco dinners on balmy nights.

 

When family or friends visit, Wynwood Green will include fully furnished guest.


Wynwood Green offers a peaceful, parklike setting in a thriving urban city. Kilometres of walking and biking trails are nearby in several provincial, regional and municipal parks like Pinecone-Burke Provincial Park, Colony Farm Regional Park, Mundy Park and many more.  Coquitlam has many sport and cultural amenities like the Place des Arts and the Poirier Sport and Leisure Complex.   Only a few minutes away, Lougheed Mall offers endless convenient amenities.


With the Evergreen Line five minutes from Wynwood Green, getting in and out of Coquitlam is easy - 40 minutes from downtown Vancouver and to the US border.


Founded 27 years ago, Anthem is a team of 350 people driven by creativity, passion and direct communication.   Anthem and Anthem United have invested in, developed or managed – alone or in partnership – more than 200 residential, commercial and retail projects with an aggregate value of more than $5 billion. “Our growing residential portfolio includes more than 11,000 homes that are complete, in design or currently under construction, from master planned mixed- use residential and multi- family, to townhome and single- family communities,” says Kim.


Whether you are a first-time buyer, moving up, or downsizing, you will be duly impressed by the attention to detail that Wynwood Green has to offer.  It is a rare opportunity to find a new home in a location this unique, built by a developer with a proven reputation for building quality homes with a passion for designing smart, thriving communities.


The presentation centre and display suite located at 1020 Austin Avenue, Coquitlam will open soon. To register or for more information on advanced priority access, email info@wynwoodgreen.ca or visit http://wynwoodgreen.ca/.

 

Provided by: REW - Real Estate Weekly

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The trend in housing starts was 226,777 units in December 2017, compared to 226,178 units in November 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.


“Despite the variation in activity across the country, the national trend in housing starts held steady at its highest level since 2008,” said Bob Dugan, CMHC’s chief economist. “Apartment starts in urban centres were up 6.2% in 2017 compared to 2016.”

Monthly highlights

Victoria

Metro Victoria finished 2017 with historically high housing starts. Multi-family structures accounted for the majority of housing starts, with elevated rental market starts pushing the total starts to its highest level since 1976. December of 2017 reflected this trend, with a 70% increase in multi-family starts compared to the previous year. Metro Victoria’s housing market showed strong price growth and overheating throughout the year, giving builders and developers strong incentive to break ground on new projects.

Vancouver

Total housing starts in the Vancouver CMA increased in December 2017 compared to the previous month after posting one of the highest levels of monthly multi-family starts for the year. In particular, apartment condominium starts were elevated in Vancouver, Richmond and Coquitlam as low inventories on the resale market continue to encourage new development. Although total starts in 2017 were lower than 2016 due to constraints in construction labour and equipment, new home construction remained strong from a historical point-of-view due to continued demand for housing.

Calgary

The trend in total housing starts declined in December 2017 as the pace of single-detached and multiple construction decreased compared to the previous month. Despite the decline in the trend, total actual housing starts for 2017 were up 25% year-over-year. The housing market in Calgary has been recovering from the economic slowdown. Consumer confidence and labour market conditions have improved while the population continued to increase. This has helped support demand for new housing.

Winnipeg

In the Winnipeg CMA, the moderating trend in total starts observed over the last half of 2017 ended in December with both single-family and multi-family experiencing gains compared to the previous month. On a year-over-year basis, total actual housing starts more than doubled this December compared to December 2016 with the multi-family sector leading this increase, particularly new apartment projects. Single-detached starts also saw strong year-over-year growth. December rounds out the strongest year of new housing activity in Winnipeg since the late 1980s as recorded by CMHC. A background of stable employment, wage growth and last year’s record in-migration has supported the market. In addition, the introduction of an impact fee in Winnipeg contributed to an acceleration in housing starts in the city during the first half of 2017.

Belleville

Belleville builders started 104 homes in December, the highest number of starts in any given month since February 2009. Half of the total starts were rental apartments. These new rental units will contribute needed supply to the market, as the apartment vacancy rate in Belleville has been trending lower since 2013, falling to 2.2% in 2017. The total number of housing starts in 2017 was the highest since 1990, driven up by the rise in single-detached and apartment starts.

Greater Sudbury

There were 10 new homes started in the Greater Sudbury Census Metropolitan Area in December bringing the total number of new home starts in 2017 to 195; the lowest number of annual starts since 2001. The underwhelming year in starts was attributable to poor employment prospects faced by younger groups aged 15 to 44 and the resultant net out-migration from these groups. Competition from a balanced resale market was a further limitation to new home construction in 2017.

Ottawa

Total starts in the Ottawa CMA were at their highest level since 2009 for the month of December, driven mainly by purpose-built rental apartment starts. For the year, apartment starts were evenly split between purpose-built rentals and condominiums, and came in at more than double last years’ number. Just shy of 7,500 units, Ottawa total starts were at their highest level since 2002. Strong economic and demographic fundamentals boosted the demand in 2017, encouraging builders to increase construction activity.

Toronto

Overall, the pace of new home construction in the Toronto Census Metropolitan Area (CMA) remained virtually unchanged in 2017. Close to 39,000 homes broke ground this year, down 0.7% from 2016. Strong demand for new homes continued to be supported by improved employment conditions and strong migration. However, affordability challenges, tighter mortgage rules, increasing price gap with resale market alternatives, and a better-supplied resale market weighed on single-detached starts, which were down by 14% compared to 2016. Given escalating house prices, more homebuyers continued to shift their demand towards relatively more affordable housing options such as townhouses, and more affordable areas such as Brampton. Condominium apartment starts were down by 5% compared to 2016, nevertheless they continued to dominate new home construction thanks to strong demand from price-sensitive homebuyers and investors.

Québec CMA

Residential construction in the Québec area was strong in 2017. In all, 6,640 housing starts were recorded, for a gain of 39% over 2016. This hike was attributable to the start of several large apartment projects throughout the year. In particular, conventional rental housing construction maintained a historically high pace, with over 2,500 units started. As well, the seniors’ housing segment stood out with a record level of 1,334 new units. The strong labour market and the needs and preferences of older households seem to have stimulated demand for apartments in the area, but caution should be exercised as the rapidly rising supply could outpace this demand.

Montréal

The Montréal CMA ended the year with 24,756 housing starts — a high level compared to recent years. Of this number, some 19,400 were for apartments (rental and condominium), a level not seen since the end of the 1980s. This jump can be explained by several factors: the decrease in inventories of new and existing condominiums for sale on the market, urban densification, and the drop in the vacancy rate on the Montréal rental market.

Halifax

December housing starts trended higher in Halifax in both the single-detached and multiples markets. After slowing for three consecutive years, single-detached starts began to pick up pace in 2016 and continued on that upward trend throughout 2017, recording growth of 30% by year-end. Despite this uptick in single-detached construction, demand for rental accommodations supported by a declining vacancy rate continues to dominate the residential construction market in Halifax with over 2,000 multiples units breaking ground in 2017, up 16% compared to 2016.

Prince Edward Island (PEI)

Prince Edward Island’s strong construction season has extended well into December. Strong immigration over the past few years has fueled housing demand in the province of PEI, primarily in the Charlottetown area. This has helped to push single-detached starts up to their highest level since 2008. In all, starts were up 70% year-over-year in 2017.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of Canada’s housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.

The standalone monthly SAAR of housing starts for all areas in Canada was 216,980 units in December, down from 251,675 units in November. The SAAR of urban starts decreased by 15.1% in December to 198,132 units. Multiple urban starts decreased by 22% to 135,176 units in December. Single-detached urban starts increased by 4.7% to 62,956 units.

Rural starts were estimated at a seasonally adjusted annual rate of 18,848 units.

 

Preliminary Housing Starts data are also available in English and French through our website and through CMHC’s Housing Market Information Portal. Our analysts are also available to provide further insight into their respective markets.


As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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There’s never a dull day in real estate. Last year started off with a big nervous question: Will the Canadian housing market crash? In 2018, the new year started off with more of a sigh. Analysts across North America came out with various pronouncements of deceleration in activity and pricing, but the overwhelming consensus was that the nation’s real estate landscape would flatten out, even in the hot Toronto and Vancouver markets.


It wasn’t too bold of a prediction. Activity was way down in the summer months of 2017, even as the number of listings was finally growing. This prompted only incremental increases in pricing and a nation-wide expectation of a soft-landing for Canada’s property markets. 

 

This flattening out of the market was happening well before the latest splash of cold water hit the fast-accelerating housing markets. That splash came in the form of amendments to mortgage regulations. Now lenders must qualify new borrowers —and those renewing or renegotiating with a new lender to qualify for a mortgage— using new guidelines. Borrowers are qualified now based on the posted rates, which are typically 200 basis points higher than discounted mortgage rates. These new regulations were announced in October and were officially implemented on January 1, 2018. 

 

What does all this mean for real estate markets in 2018? It means a possible return to the norm —a reemergence of a more boring, stable Canadian real estate market.

 

© Used with permission of / © Rogers Media Inc. 2018.

 

Source for above graphic: RBC Economics Monthly Housing Market Update, December 14, 2017


Canada’s real estate is actually balanced

According to Robert Hogue, senior economist with RBC Economics, there is “limited downside risks to prices in the near term in Canada” as the majority of housing markets, including Toronto, are “in balance.”

Based on the sales-to-new listings ratio—where 50% is a balanced market—the overall Canadian market appears to be balanced, according to RBC Economics December Monthly Housing Market report. Toronto and Calgary are also in balanced territory while Montreal and Vancouver are still leaning towards a seller’s market.

 
Another way to determine if Canada’s housing markets are levelling off is to examine months of inventory. The number of months of inventory represents how long it would take to liquidate current inventories at the current rate of sales activity. In November 2017, there were 4.8 months of inventory in Canada, down slightly from 4.9 months in October 2017 and the four months of inventory that was recorded in the summer months in 2017. Given that the long-term average is 5.2 months, analysts are predicting that most Canadian market segments are cooling off and returning to a more balanced market where supply meets demand.

Some markets still sizzle

Despite the incremental rise in interest rates in 2017 and the recent mortgage regulation changes—both factors that are expected to cool activity across Canada—some markets are still quite hot.


The Greater Golden Horseshoe area, which includes Toronto, had only 2.4 months of inventory at the end of December 2017. While this is much better than the all-time lows experienced in February and March 2017—when inventory dropped to just 0.8 months—it’s still below the region’s long-term average of 3.1 months.


A surge in deadline activity in Toronto accounted for most of the increase in the last few months of 2017, explains Hogue in his December economic report. “More stringent mortgage lending rules coming into effect in January no doubt prompted many buyers to advance their purchasing decisions.”


But this last-minute year-end activity in 2017 is not likely to continue into 2018. Hogue’s outlook for the New Year suggests that further moderation of home sales activity across Canada will cool any price increases in the upcoming year. “Near-term volatility will be followed by a generalized softening in 2018.”


The least optimistic outlook regarding Canada’s real estate markets in 2018 comes from the most unexpected place: The Canadian Real Estate Association. CREA, is the trade association that represents more than 100,000 real estate brokers, agents and salespeople across Canada. In December, CREA cut its home sales forecast for 2018. The association’s analysts cite the impact of tighter mortgage rules, the chill from the Toronto and Vancouver foreign buyers’ tax, as well as on-going affordability issues in the country’s biggest markets.


CREA predicts that activity (that is, the number of actual home sales) will fall 5.3% in 2018. This continued decrease in buying activity, combined with the 4% decline in activity in 2017, prompted CREA to anticipate a 1.4% drop in national average housing prices in 2018. The expected national average housing price for 2017 was $503,400.


If CREA’s prediction turns out to be true, 2018 will be the first year the national housing price will have fallen in Canada since the start of the global recession in 2008.


But the impact of a slowing market will not be felt uniformly across the country. According to CREA estimates sales activity will decline across Canada (by 5.3%), as a well as in B.C. (by 3.7%), in Alberta (by 2.8%), in Saskatchewan and Manitoba (3.8% and 3.9%, respectively) and in New Brunswick and Nova Scotia (by 0.5% and 2.8%, respectively). The two hardest hit provinces will be Ontario, with an almost 10% decline in activity (9.6%) and Prince Edward Island, with a 7.4% decrease in sales activity.


The only provinces predicted to have increased sales activity in 2018—albeit at anaemic rates—are Quebec (0.9%) and Newfoundland (1.3%).

What do these predictions mean for average home prices? Volatility. While Newfoundland is expected to have increased sales activity in 2018, its annual price change is expected to drop by 1.9% in 2018. Other provinces with price drop forecasts include Alberta (0.3%) and Ontario (2.2%). The prices in the remaining provinces will either flat-line—like in B.C. and Saskatchewan where 0% price appreciation is expected in 2018—or move up incrementally, like in Manitoba with a 1% average price increase, PEI (0.9%), Nova Scotia (2%) and New Brunswick (1.8%). Only Quebec average prices are expected to beat the national anaemic rates, with a 4.2% increase in average sales prices.


 What does this mean for buyers?

There are two strong headwinds when it comes to buying activity in 2018: Tighter mortgage lending rules and the threat of higher interest rates.


Because of tighter mortgage lending rules, buyers simply can’t afford to buy the same house as they would have in 2017. This could mean shaving anywhere from 5% to 25% off your maximum house-price budget—although consensus shows it will mean an 18% reduction in your maximum purchase price for one in six borrowers, who put down less than 20%.


One unintended consequence of this forced fiscal responsibility is that more buyers will end up competing for cheaper properties—possibly driving up the prices of condos and townhomes, properties previously considered more affordable.


This push for more affordable housing opportunities could be exasperated as potential buyers try to get into the market before mortgage rates rise. It’s expected that the Bank of Canada will continue with incremental increases to its overnight rate in 2018. While no one anticipates discounted mortgage rates to shoot up to 6%, the posted rates will hit this mark relatively quickly. The increase in mortgage rates will further erode a buyer’s possible house-buying budget, prompting more buyers to pull the trigger before being potentially locked out.


Based on all these factors, we shouldn’t be surprised by an active spring market, particularly in the condo and townhouse market segments.


As a buyer, you’d be wise to secure a mortgage pre-approval before shopping for a home. Don’t just do a quick, online calculation — talk to a mortgage broker. For those buyers struggling to get a loan, consider going through non-prime mortgage lenders. These alternative lenders specialize in buyers turned down by banks, as they allow for more non-traditional income and permit higher debt ratios (up to 50% total debt service ratio, versus the 42% guideline used by the banks). Another option is to increase the length of amortization on the mortgage, which lowers the debt service ratio used to qualify for the loan.


Just don’t expect to get all this help without paying for it. In the past, non-prime lenders have charged higher mortgage rates (to reflect the higher risk of the borrower). Going forward these non-prime lenders may opt to cut the rate but make up the lost revenue by tacking on a fee. The result: Higher risk buyers will end up paying more with fees for amortization periods longer than 25 years, as well as fees for holding less than 20% equity in the house and fees to get access to rates low enough to allow them to qualify for the mortgage.


What does this mean for sellers?

For sellers across Canada, it’s time to reset expectations. Gone are the days when you could expect to sell your home in a week or less (for more money than your neighbour, who only sold a month ago). Buyers are struggling to afford what’s out there and the result is a rise in inventory and a drop in sales activity.


In the last few years, a potential buyer ended up having to compete against other interests, such as investors, speculators and foreign buyers. Those in the market to make money have been pulling out—waiting for more certainty. That means fewer buyers in the market and fewer sales. The drop in sales activity will prompt price corrections and eventually, the market should stabilize in balanced territory. The investors and speculators may come back, at this point, but until then sellers need to readjust their expectations. The upside is that even a 10% to 15% drop in prices won’t reset a home’s value to pre-2016 price levels.


To stay competitive, consider scrutinizing current sales data for your street and neighbourhood. Walk through all open houses in your community, to get an idea of what homes look like before they sold (you can still get this sold data from your real estate agent). Finally, discuss with your real estate agent competitive pricing strategies.


What does this mean for current homeowners?

If you already own a home it’s time to do a little jig just don’t spend too long celebrating because it’s not all smooth sailing for current homeowners in 2018.


The biggest hurdle will be mortgage renewal. According to Bank of Canada analysis, half of all current mortgages will “reset” in 2018. What does this mean? It means 47% of mortgage holders will need to renew their mortgages; by 2021 another 31% of mortgages will need to renew and another 22% of that.


This surge of renewals will mean that these homeowners will have to make some tough decisions: Renew with your current lender and skip the mortgage stress test or shop around for a better rate and be subjected to the mortgage stress test.


For those homeowners who were proactive about paying off their mortgage debt and building up the equity in their home, this decision will be easy. You will qualify for a great rate whether you stay with your current lender or shop around.


But homeowners who refinanced and added more debt to their mortgage loans, or those that weren’t proactive about building up the equity in their home, may feel the pinch. Those that choose to stay with their current lender may find the rates are not as competitive, but may not have options elsewhere, as they’ll be subject to the new mortgage stress test.


Homeowners looking to obtain a Home Equity Line of Credit (HELOC) may be surprised at how much smaller this revolving loan will be in 2018. In 2017, anyone applying for a HELOC was stress-tested using the posted 4.89%. As of January 1, 2018, this rate increased to 5.7% (and will continue to increase as rate rise).


It’s worse if you’re a homeowner looking to refinance. Those looking to consolidate their debt through a refinance in 2018, may be surprised by the less than attractive mortgage rates offered to them, or the inability to qualify for the loan amount needed. Typically, those that need to refinance have debt ratios that are above average and this will be very problematic when trying to qualify under the new mortgage rules.


What does this mean for investors?

If you’re still in the market to buy a rental property, hats off to you. Many real estate investors were scared away in 2017, partly because of the crazy spring market and partly because of market uncertainty due to regulatory changes. But with markets rebalancing and prices starting to level off of slowly come down, many investors may get back into the market.


While single-family detached homes are still golden gooses, it’s hard for small landlords and large institutional investors to earn a profit on this building type. The purchase price is often too high to make rental numbers work, unless you can secure more than one rental in the home and this comes with its own costs and headaches.


For those investors choosing to skip the single-family home and look at condos and townhomes, keep in mind that competition may increase in these segments quite substantially in 2018. More first-time buyers may be pushed into this pricing segment and this would mean even more competition for these units.


Old rules of thumb remain, however. Try to find units that are well capitalized (lower purchase price, higher rental yield) and, where possible, look for neighbourhoods that support renters, such as urban centres, university and hospital communities as well as commercial complexes that offer newly built retail and office space.


Any investor thinking of buying in 2018, should first start with a financial plan and a budget. Then talk to your accountant and mortgage broker to make sure the numbers work. If all this checks out and you’re lucky enough to find a property, then 2018 may be the year for you to become a landlord (and the real work begins).


Provided by: Romana King with MSN Money

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Huge semi-private, West facing, outdoor patio with direct access to your suite; perfect for gardeners & pet owners alike. This 2bed/2bath/954sqft home shows very well.  Functional open concept layout with excellent room separation, you don’t want to miss this one! Features: freshly painted, cork flooring, SS apps w/gas stove, gas F/P & direct patio access. Huge master with ensuite, soaker & walk-in closet & a large 2nd bed complete this home. Located in The Harmony, a rental & pet friendly complex. Close to: transit, shopping, indoor/outdoor recreation & a host of perks available only to UniverCity residences. Do not miss your chance to enjoy living in this great lifestyle neighborhood! Act Now. OPEN HOUSE Sat. Jan. 13 from 2 to 4.

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VANCOUVER - An upward trend in housing prices isn't expected to significantly change in British Columbia despite an anticipated slowdown in sales this year, economists say.

 

The B.C. Real Estate Association's chief economist said Wednesday that new housing stock, slightly higher interest rates and tighter mortgage regulations will result in about a 10 per cent decline in sales compared with 2017.

 

But demand continues to outpace supply in most markets from Vancouver Island to the Okanagan, which spurs rising prices, Cameron Muir said.

 

"We would need a combination of a pretty substantial decline in demand as well as significant increases in overall residential supply in order to get to the point in which prices would decline," Muir said.

 

Nationally, the Canadian Real Estate Association has said tighter mortgage regulations imposed on Monday, including a stress test for uninsured mortgages, would result in fewer sales and reduced prices by about 1.4 per cent to an average selling price of $503,100 this year.

 

Bryan Yu, economist with Central 1 Credit Union, said the changes may slow the pace of first-time buyers entering the market or lead to adjustments in what people choose to buy.

 

While this may slow sales, particularly in the first quarter of this year, he said B.C.'s growing economy and jobs will maintain a strong demand.

 

"I think the overall economic drivers are still there to support rising prices through 2018," Yu said.

 

The Real Estate Board of Greater Vancouver said Wednesday the benchmark price for all residential properties was $1,050,300, in 2017, a 15.9 per cent jump from December 2016.

a sign in front of a building© Provided by thecanadianpress.com


Sales of detached homes, townhomes and apartments reached 35,993 last year, the third highest total in a decade.

The board considers the sales total more "historically normal," marking a 9.9 per cent decrease from 2016 and down 15 per cent from the sizzling pace of 2015.

 

A key aspect of last year's housing market was a decline in the number of available listings, a trend the board has said can put upward pressure on prices.

 

Board president Jill Oudill said 54,655 properties were listed for sale in 2017, a dip of 5.1 per cent from the year earlier.

 

She also said market activity across the Vancouver region differed considerably in 2017 based on property type.

"Competition was intense in the condominium and townhome markets, with multiple offer situations becoming commonplace," Oudill said in a news release.

 

The benchmark price of condominiums leaped 25.9 per cent in the Vancouver area last year, while townhomes increased 18.5 per cent and the price for detached homes climbed 7.9 per cent.

 

Prices have also soared in the neighbouring Fraser Valley with the benchmark price of condominiums jumping 40.5 per cent last year to $388,600.

 

The Fraser Valley Real Estate Association said the benchmark for single detached homes reaching $976,400, an increase of 14.2 per cent from 2016. The price of townhomes increased by 23 per cent.

 

Yu said rising prices means people will increasingly be left out of the housing market.

 

"We're going to see an increase in renters in proportion to the population," he said. "I think that's going to be the natural evolution of this market over time."

 

University of B.C. business professor Thomas Davidoff said governments could improve affordability by encouraging the development of more units in single-family home neighbourhoods and reforming taxes.

 

"We have high income and sales taxes and low property taxes and that says we encourage people not really to make a living and sell stuff here, but buy property. That's the worst recipe ever for affordability," he said.

 

Other factors, including political instability, interest rates or natural disasters, could drive down prices, Davidoff said. More likely, a major driver of prices will be what people are willing to pay.

 

"I do think in the long run, Vancouver will continue to be a very difficult place to buy or to rent unless you're really rich," he said. 

 

Provided by: Linda Givetash with the Canadian Press

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After reaching record levels in 2015 and 2016, Metro Vancouver* home sales returned to more historically normal levels in 2017. Home listings, on the other hand, came in several thousand units below typical activity.


The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attachedand apartment properties reached 35,993 on the Multiple Listing Service® (MLS®) in 2017, a 9.9 per cent decrease from the 39,943 sales recorded in 2016, and a 15 per cent decrease over the 42,326 residential sales in 2015.

 

Last year’s sales total was, however, 9.7 per cent above the 10-year sales average.“It was a steady year for home sales across the region, led by condominium and townhome activity, and a quieter year for home listings,” Jill Oudil, REBGV president said. “Metro Vancouver home sales were the third highest we’ve seen in the past ten years while the home listings total was the second lowest on record for the same period.”


Home listings in Metro Vancouver reached 54,655 in 2017. This is a 5.1 per cent decrease compared to the 57,596 homes listed in 2016 and a 4.5 per cent decrease compared to the 57,249 homes listed in 2015.


Last year’s listings total was 4.4 per cent below the 10-year listings average.


“Market activity differed considerably this year based on property type,” Oudil said “Competition was intense in the condominium and townhome markets, with multiple offer situations becoming commonplace. The detached home market operated in a more balanced state, giving home buyers more selection to choose from and more time to make decisions.”


The MLS® HPI composite benchmark price for all residential properties in Metro Vancouver ends the year at $1,050,300. This is up 15.9 per cent compared to December 2016.


The benchmark price of condominiums increased 25.9 per cent in the region last year. Townhomes increased 18.5 per cent and detached homes increased 7.9 per cent.


“Strong economic growth, low interest rates, declining unemployment, increasing wages and a growing population all helped boost home buyer demand in our region last year,” Oudil said.

 

December summary
Sales of detached, attached, and apartment properties totalled 2,016 in the region in December 2017, a 17.6 per cent increase from the 1,714 sales recorded in December 2016 and a 27.9 per cent decrease compared to November 2017 when 2,795 homes sold.


Last month’s sales were 7.5 per cent above the 10-year sales average for the month.


“As we move into 2018, REALTORS® are working with their clients to help them understand how changing interest rates and the federal government’s new mortgage qualifications could affect their purchasing power,” Oudil said. “Only time will tell what impact these rules will have on the market.


“Home buyers today should get pre-approved before making an offer to ensure that your home buying goals align with your financial situation,” Oudil said.


There were 1,891 residential homes newly listed for sale in December 2017. This represents a 44.1 per cent increase compared to the 1,312 homes listed in December 2016 and a 54 per cent decrease compared to November 2017 when 4,109 properties were listed.


The total number of homes currently listed for sale on the MLS® in Metro Vancouver is 6,958, a 9.7 per cent increase compared to December 2016 (6,345) and a 20.5 per cent decrease compared to November 2017 (8,747).


The sales-to-active listings ratio for December 2017 is 29 per cent. By property type, the ratio is 14.4 per cent for detached homes, 38.8 per cent for townhomes, and 59.6 per cent for condominiums.


Generally, analysts  say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.


Sales of detached properties in December 2017 reached 617, a 14 per cent increase from the 541 detached sales recorded in December 2016. The benchmark price for a detached home in the region is $1,605,800. This represents a 7.9 per cent increase compared to December 2016.


Sales of apartment homes reached 1,028 in December 2017, a 12.3 per cent increase compared to the 915 sales in December 2016.The benchmark price of an apartment in the region is $655,400. This represents a 25.9 per cent increase compared to December 2016.


Attached (or townhome) property sales in December 2017 totalled 371, a 43.8 per cent increase compared to the 258 sales in December 2016. The benchmark price of an attached home in the region is $803,700. This represents an 18.5 per cent increase compared to December 2016.

*Editor’s Note: Areas covered by the Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast,Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta.


The Real Estate Board of Greater Vancouver is an association representing more than 14,000 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. Formore information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit
www.rebgv.org.

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