Harvey Spector

For immediate release BC Home Sales Dip After Strong December Vancouver, BC – February 15, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 5,306 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in January, an increase of 18.3 per cent from the same period last year. The average MLS® residential price in BC was $721,477, up 16.2 per cent from the previous year. Total sales dollar volume was $3.83 billion, a 37.4 per cent increase from January 2017. “BC home sales dipped 10 per cent from December to January, on a seasonally adjusted basis," said Cameron Muir, BCREA Chief Economist. "New mortgage rules requiring conventional borrowers to qualify at a higher interest rate likely contributed to the decline in home sales last month. The impact was magnified by a strong December as many households advanced their purchase decisions ahead of the policy's implementation." Despite the decline in January transactions, the seasonally adjusted annual rate of home sales was 101,800 units. Compared to January 2017, market conditions tightened in all BC board areas except Victoria, where the sales-to-active listings ratio declined from 46.3 per cent to 40.5 per cent. Despite this decline, Victoria remains in strong sellers' market territory. Total active listings in the province were down 8.6 per cent to 20,901 units, compared to the same period last year. BCREA is the professional association for more than 20,000 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.

Six degrees of separation. Maybe we are both related to Trump...

He could also be a Kennedy as well. His mom had an affair with Ted Kennedy...

I always wondered why Justin Trudeau had such a soft spot for Castro. It's all starting to make sense now...

Forza Juve!!!!! Gonzalo HIGUAIN!!!!

The Impact of the BC Home Partnership Program on Metro Vancouver Home Prices Summary Findings: Our analysis indicates that the Home Partnership Program (HPP) contributed to an annualized increase of 0.55 per cent to the market price of an apartment and an increase of 0.57 per cent to the market price of a townhouse in Metro Vancouver over the first three-quarters of 2017. The HPP either paid or approved a total 1,395 transactions as of September 2017. This represented 1.7 per cent of total BC home sales and 0.9 per cent of the dollar volume. Approximately one-third of the HPP paid or approved transactions occurred in Metro Vancouver, comprising 1.2 per cent of total home sales. Nearly all the HPP paid or approved transactions (96%) in Metro Vancouver were for apartments or townhouses. Analysis: In December 2016, the BC government announced the creation of the Home Partnership Program (HPP) to provide down-payment assistance for prospective BC homebuyers. The assistance was in the form of a second loan that is interest and payment-free for the first 5 years, with interest accruing and principle/interest payments beginning in the 6th year. Using program data provided by BC Housing, we analyzed the impact of HPP on home prices over its first nine months. As of September 2017, the HPP either paid or approved 1,395 transactions representing 1.7 per cent of total BC home sales and 0.9 per cent of dollar volume. Those purchases were widely dispersed around the province with BC’s four largest cities accounting for close to half of purchases facilitated through the program. Approximately one-third of total HPP transactions by count and 40 per cent by dollar volume were in the Metro Vancouver area, accounting for 1.2 per cent of total home sales. The next highest participating region was Victoria, which accounted for just 6 per cent of the total HPP transactions. In Metro Vancouver, the typical successful HPP applicant was as expected. Most were relatively young first-time homebuyers, purchasing homes within their financial means. The median buyer in the first nine months of the program was 33 years of age with an income of about $82,800. The median home price of HPP funded purchases was $415,000, with a down payment of 10 per cent, half of which was provided through the HPP. Approximately 30% of those buyers in Metro Vancouver had less than the 5 per cent down payment required before accessing the HPP funds. Of the total number of HPP funded purchases in Metro Vancouver, about 96 per cent were in the apartment or townhouse segment of the market, which is the focus of our impact analysis. Our analysis indicates that the HPP was helpful to many homebuyers, but not popular enough to cause a significant impact on market conditions, given the program timing coincided with already constrained supply conditions. As an analytical framework, we incorporated a measure of market conditions known as the sales-to-active listing ratio (SALR). This ratio captures the relative balance between supply and demand in a housing market. Using this simple but powerful framework, the relationship between home sales and the supply of homes on the market is directly linked to changes in the market price of homes. A very high SALR typically means that supply is falling short of demand and that home buyers are bidding up home prices. A very low SALR typically brings declining home prices as excess supply causes home sellers to bid down their asking price to attract a relatively scarce number of home buyers. To account for the impact of the HPP, we control for what the sales-to-active listings ratio would likely have been without the HPP. In effect, home sales (demand) would be lower while the number of homes for sale (supply) would be higher, resulting in a lower SALR and, therefore, slower growth in prices. For example, from January to September 2017, the six month trend in the Metro Vancouver apartment SALR was 65.4 per cent. At this level, the SALR model would predict annual apartment price growth of approximately 18.6 per cent. Adjusting for the impact of the HPP by pulling out those transactions and adding back the supply, the SALR would fall to 62.3 per cent, a level that correlates with an annual home price growth of approximately 18.06 per cent. This suggests that the annualized impact of the HPP on Metro Vancouver apartment prices was about 0.55 per cent over the period. Similarly, in the townhouse segment, we estimate that without transactions through the HPP, growth in home prices would have been reduced by 0.57 per cent on an annual basis. This analysis incorporates the most liberal assumption that all successful HPP applicants would not have purchased a home without the added assistance of the program. Even under this discipline, we find the program was not a significant driver of price appreciation in the Metro Vancouver housing market. Cameron Muir, Chief Economist, cmuir@bcrea.bc.ca; 604.742.2780 Brendon Ogmundson, Economist, bogmundson@bcrea.bc.ca; 604.742.2796 Additional economics information is available on BCREA’s website at: www.bcrea.bc.ca. To sign up for BCREA news releases by email visit: www.bcrea.bc.ca/news-and-publications/publications/ manage subscriptions.

Ah I see. Townhouses in the Fraser Valley are getting more popular with the young folk. It's a way for them to get into the market in a larger home that is not a condo for far less than what it would cost to buy a detached home. No, if you are a first time buyer you can put down as little as 5% downpayment. Actually even if you are not a first time home buyer you can still put down 5%. You would need to insure your mortgage through CMHC which would charge you a fee of 4.5%, which is added on to the mortgage principal. CMHC doesn't insure anything over $1 million, so effectively if you are buying in the Vancouver area the 5% would only cover condos and townhouses. Also, the 5% down is only for the first $500k purchase price. After $500k the minimum is 10% down up to $1 million.

First time buyers are mostly NOT putting down 20%. They simply don't have the downpayment. Most are putting down between 5-15% and getting CMHC insurance for their mortgage, which costs them an additional 2-4.5% CMHC fee on top. Low $400,000's, where are you living John? Are you on the Island or in the interior?

BCREA ECONOMICS NOW Canadian Employment - February 9, 2018 A slow start to the year as Canadian employment fell by 88,000 jobs in January. On the bright side, the losses were entirely due to declining part-time work while full-time jobs actually grew by 49,000 and total hours worked were up 2.8 per cent. The national unemployment rate ticked up 0.1 points to 5.9 per cent. In BC, employment was down by 5,100 jobs although full-time employment was up by 4,100 while part-time work declined. Despite those losses, the level of employment was still 2.5 per cent higher than January last year. The provincial unemployment edged up by 0.2 points in January to 4.8 per cent. The British Columbia Real Estate Association (BCREA) is the professional association for more than 20,000 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. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

BCREA ECONOMICS NOW Canadian Housing Starts - February 8, 2018 Canadian housing starts began the year essentially flat on a monthly basis at 216,210 units at a seasonally adjusted annual rate (SAAR). The six-month trend in Canadian housing starts remained elevated at 224,865 units SAAR. BC saw total housing starts fall 16 per cent to 41,648 units SAAR in December on a monthly basis. However, total starts in BC were up 59 per cent year-over-year. Single detached starts were up 1 per cent on a monthly basis but increased 78 per cent compared to January 2017 while multiple starts were down 21 per cent month-over-month and were 54 per cent higher year-over-year. Looking at census metropolitan areas (CMA) in BC: Total starts in the Vancouver CMA were higher across all home types, nearly doubling the pace of construction in January 2017. There were a total of 2,599 housing starts across the region compared to just 1,334 the same time last year. In the Victoria CMA, housing starts slowed from the record setting pace of previous months, falling 52 per cent on a monthly basis. However, new home construction remains robust at a more than 3,000 unit annual rate in seasonally adjusted terms. The Kelowna CMA saw an increase from 51 units last January to 87 total starts in January 2018. Much of the increase was the result of new rental unit projects. Housing starts in the Abbotsford-Mission CMA rose 42 per cent on a monthly basis in January with balanced growth across multiple and single detached starts. However, total housing starts were well behind the pace set in January of 2017. The British Columbia Real Estate Association (BCREA) is the professional association for more than 20,000 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. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

Home buyer demand depends on property type:

Foreign buyers in Metro Vancouver in 2017 February 07, 2018 - Government Relations Are the headlines correct? Did foreign buyers drive the market in Metro Vancouver in 2017? Here’s the latest data from the BC Ministry of Finance.

BCREA ECONOMICS NOW Canadian Building Permits - February 7, 2018 The total value of Canadian building permits increased 5 per cent on a monthly basis in December. The increase was primarily the result of higher construction intentions in the residential sector. For all of 2017, the value of building permits across Canada rose 10.4 per cent. The total value of permits issued in BC broke a string of consecutive down months, rising 27 per cent on a monthly basis and 55.5 per cent year-over-year to 1.5 billion. Residential permits accounted for all of the increase, rising 51 per cent on a monthly basis and 60 per cent over December last year. Non-residential permits declined 17.5 per cent on a monthly basis but were 42 per cent higher year-over-year. Building permits were up 22.9 per cent for all of 2017, the largest increase of all the provinces. Construction intentions in December were higher in only three of BC's four census metropolitan areas (CMA): Permits in the Abbotsford-Mission CMA rose 167.1 per cent on a monthly basis to just under $80 million. Year-over-year, permit values were more than triple the value from December 2016. In the Victoria CMA, total construction intentions increased 69.2 per cent to $81.5 million and were up 13.7 per cent year-over-year. In the Kelowna CMA, permits were down 31.6 per cent monthly basis to $52 million, a 16.1 per cent decline from December 2016. The Vancouver CMA recorded permit activity valued at $976.3 million, an increase of 39 per cent over November and up 71 per cent over the last year. For the year as a whole, Vancouver permits rose 14.2 per cent to $9.4 billion with all components except single detached dwellings posting increasing permit values. The British Columbia Real Estate Association (BCREA) is the professional association for more than 20,000 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. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

Congrats @Chip Kelly One of the greatest Super Bowl games ever. Back and forth all game. Tom Brady is still a legend but Nick Foles played a heck of a game as well. Congrats to all Eagles fans for winning your first Super Bowl!!

Will Tom Brady become an absolute legend today? We will find out shortly... #GoPats

February 2, 2018 Home buyer demand depends on property type Attached and apartment homes are in demand across Metro Vancouver while detached home buyers are facing less competition today. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,818 in January 2018, a 19.4 per cent increase from the 1,523 sales recorded in January 2017, and a 9.8 per cent decrease compared to December 2017 when 2,016 homes sold. Last month’s sales were 7.1 per cent above the 10-year January sales average. By property type, detached sales were down 24.8 per cent from the 10-year January average, attached sales increased 14.3 per cent and apartment sales were up 31.6 per cent over the same period. “Demand remains elevated and listings scarce in the attached and apartment markets across Metro Vancouver,” Jill Oudil, REBGV president said. “Buyers in the detached market are facing less competition and have much more selection to choose. For detached home sellers to be successful, it’s important to set prices that reflect today’s market trends.” There were 3,796 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in January 2018. This represents an 8.3 per cent decrease compared to the 4,140 homes listed in January 2017 and a 100.7 per cent increase compared to December 2017 when 1,891 homes were listed. The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 6,947, a four per cent decrease compared to January 2017 (7,238) and a 0.2 per cent decrease compared to December 2017 (6,958). For all property types, the sales-to-active listings ratio for January 2018 is 26.2 per cent. By property type, the ratio is 11.6 per cent for detached homes, 32.8 per cent for townhomes, and 57.2 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. The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $1,056,500. This represents a 16.6 per cent increase over January 2017 and a 0.6 per cent increase compared to December 2017. Detached home sales in January 2018 reached 487, a 9.7 per cent increase from the 444 detached sales recorded in January 2017. The benchmark price for detached properties is $1,601,500. This represents an 8.3 per cent increase from January 2017 and a 0.3 per cent decrease compared to December 2017. Apartment home sales reached 1,012 in January 2018, a 22.7 per cent increase compared to the 825 sales in January 2017. The benchmark price of an apartment property is $665,400. This represents a 27.4 per cent increase from January 2017 and a 1.5 per cent increase compared to December 2017. Attached home sales in January 2018 totalled 319, a 25.6 per cent increase compared to the 254 sales in January 2017. The benchmark price of an attached unit is $803,700. This represents a 17.5 per cent increase from January 2017 and unchanged compared to December 2017.

Yes that is correct. The new Superindendent of Real Estate is abolishing "Limited Dual Agency", which means that a Realtor cannot represent both a buyer and a seller in the same transaction. This was actually eliminated in the 1990's, but the "Limited" part allowed a Realtor to represent both sides as long as both parties were aware of the situation and proper documentation was signed. It was on a deal by deal basis, so each time you did a deal new documentation had to be signed. Officially it is being abolished March 15, but most Realtors have stopped the practice. However, the new rules still allow a Realtor to "double end" a deal. That means a buyer can waive their right to representation altogether and allow the seller's agent to draw up the paperwork to complete the transaction. So if you don't have your own Realtor or you prefer to do your own negotiations, then the listing agent can still work with you if you are a buyer by drawing up the paperwork and getting you the proper documents you need to remove subjects. The listing agent cannot however give you any advice whatsoever in terms of price, terms of the contract or anything else. Paperwork would be drawn up and you would become a "customer" to the deal, not a "client". At the end of the day it makes the most sense to go this route as it is impossible to give proper advice to both parties at the same time, as people have already mentioned, as it is a "conflict of interest". It's kinda like a lawyer representing both sides in court. It will affect however people in the smaller remote areas where there are not alot of Realtors around to help with the transaction. They may bring in rules to "waive" some of the new rules to Realtors who work in remote areas of BC. Yes if you know the selling agent of a property and want to buy that property it will become an issue for you. You can waive your right to representation as I mentioned and become a customer to that Realtor that you already have a relationship with, which doesn't make alot of sense since you already have done business with them, but that is the new rule so you won't have much choice moving forward. A few "bad apples" from the last few years ruined it for everybody unfortunately. I do agree with the new rules, however in certain situations, like the one you mentioned, it does make things awkward and complicated if you already have a relationship with the listing agent. But that is the way it will be moving forward.

BCREA ECONOMICS NOW Canadian Monthly GDP (November) - January 31, 2018 The Canadian economy posted 0.4 per cent growth on a monthly basis in November, with 17 of 20 industrial sectors reporting increased output. The manufacturing sector posted its strongest growth in three years and the real estate industry grew for a fourth consecutive month, led by a surge in the output of real estate agents and brokers. Given today's release, growth in the Canadian economy is tracking at 2.5 per cent for the fourth quarter, an uptick from 1.7 per cent growth in the third quarter. Today's data, along with firming inflation in recent months, further supports the case for gradual tightening by the Bank of Canada in 2018. The British Columbia Real Estate Association (BCREA) is the professional association for more than 20,000 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. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

Tips for Sellers: What’s Involved in Selling a Strata Property If you’re listing your strata property and haven’t sold one before, there are some things you should know, agent Caitlin Radzanowski tells Jo Boxwell of Team Powerhouse Realty What Are You Actually Selling? One of the major differences between selling a house and a strata property boils down to what exactly you are selling, Caitlin says. “When you sell a house, you are selling the home and the land it is on. With a strata property, you could be selling a unit with or without land depending on the development type. Typically, a strata property sale will also include areas that are under shared ownership by all unit owners in that complex.” It is important to understand exactly what type of strata property you are selling when you start this process. That isn’t quite as simple as establishing whether your property is a condo, duplex, townhouse, fractional vacation property or strata subdivision. Some residential properties are part of mixed-use strata developments that feature commercial spaces such as restaurants and retail outlets, for example, and these developments can have their own set of legal implications. “You should also be aware of whether your property is freehold or leasehold because this may affect the fair market value of your property,” Caitlin adds. “You can expect a leasehold strata lot to have a lower market value than a similar freehold strata lot.” These additional considerations will become part of a buyer’s decision-making process and they also come into play when the sale documents are drawn up. Strata-Specific Paperwork Along with the standard title and property disclosure statements that house sellers will be familiar with, strata property owners are typically required to provide significantly more information prior to the completion of a sale. This shouldn’t deter sellers, but it is especially important to hire an experienced and qualified REALTOR® who can help make this process as smooth as possible. Caitlin gives some examples of the additional documents that strata property owners in British Columbia are expected to provide: “The strata plan, a current Form B Information Certificate with the strata corporation’s rules and current budget, monthly and AGM meeting minutes for the past two years, current bylaws and financial statements of the strata corporation, the strata’s insurance coverage, a depreciation report and information on any special levies.” Your agent will be able to provide you with a more detailed list of required documents and will be able to walk you through the process of obtaining these documents. The Strata Corporation Some strata corporations may have specific rules that apply to unit sales – for instance, around the placement of “For Sale” signs on the premises – but typically they won’t want to impinge on your ability to sell your property and therefore are unlikely to have any rules that your agent can’t work around. That being said, a strata corporation can still have an impact on how quickly your property sells, and for how much. If the strata corporation managing your complex is financially responsible and seems to be effective in dealing with issues as they occur, prospective buyers are likely to feel more confident and it may help you sell your property more quickly. On the other hand, Caitlin warns that strata corporations facing serious challenges can have the opposite effect on prospective buyers. “A dysfunctional strata corporation or one in financial difficulty could discourage potential buyers. It may also have an impact on price, depending on the severity of the issues involved.” In addition, you can expect strata fees and rules to play a part in shaping buyers’ perspectives of your unit, for instance, if the fees seem disproportionate compared with similar properties in the same area. Strata rules that may influence prospective buyers’ interest in the property include the availability of parking spaces, and if rentals are allowed or prohibited. Caitlin adds that rules regarding pets tend to be among the most contentious for buyers. “A lot of people consider their pets to be members of the family and a ‘no pets’ or ‘pets allowed with restrictions’ bylaw can definitely be a deal breaker in some cases.” When to Sell Before you list your property, find a REALTOR® with experience selling properties in your local area and ask them about current market conditions. Caitlin says it isn’t necessary to hold off on listing a property just because of the season as different times of year have their advantages. “Summer may be nice to show off any gardens or well-kept outdoor common areas, but the winter months often attract more serious buyers.” One of the great things about selling a strata property is the wide range of potential buyers who are looking for those types of homes. As Caitlin points out, “Strata properties are an excellent option for anyone wanting to live a maintenance-free lifestyle. Busy young professionals, snowbirds and the elderly are all potential strata property buyers.” There is a lot to feel confident about when it is time to sell your strata home.

Thanks for your comments, I really appreciate. January numbers will be strong. I just listed a condo in South Burnaby on Thursday and sold it yesterday for full price. I went a bit high on the price as well because my client wasn't in a rush to sell and so I wanted to price in the Spring market. He ended up getting full price anyways within days. Nuts really. I probably should have priced it higher but they were very happy with what they got and you just never know what's gonna happen in the next few months. I'll post January numbers next week...

Mount Pleasant is very expensive now. Almost like the West Side. Port Moody is booming. Onni is doing a final project at Suter Brook Village and they are selling upwards of $1,000 per foot. Also, Port Moody is rezoning and redeveloping alot of their land that used to be industrial and commercial in order to build condos. West Coquitlam is very expensive as well. Stuff around North Road is also at $1,000 per foot. I don't really do Youtube stuff or even blogs. I've been around long enough that I get most of my business from referrals from my clients and I also have connections with lenders from several banks and credit unions. I know the younger Realtors do alot of social media, but I've never really been into that for my business. I have alot of older clients who don't even watch Youtube!! I started this thread just to help out CDCers and to give out info on this crazy Vancouver real estate market. I do it for fun. Not really looking for business from anyone. Hopefully you've learned alot from my posts. Real Estate is my passion. I love my job!!!

Hey your welcome. As far as I know it is not a requirement for the mortgage. But if you are going the CMHC route and you are buying an older condo, I would definitely recommend doing an inspection. Also, make sure they have a depreciation report and/or engineer's report available. I wouldn't buy it unless a depreciation report is available. If it's a wood frame building be even more careful as there can be even more issues with water ingress and piping issues. Stay away from highrises built in the 1990's. Most are not built of quality unless it was a BOSA building. Most have had building envelope issues and water ingress problems. Good luck in your condo search!!

BCREA ECONOMICS NOW Canadian Inflation - January 26, 2018 Canadian inflation, as measured by the Consumer Price Index (CPI), slowed slightly in December to 1.9 per cent year-over-year, down from 2.1 per in November. Excluding the price of gasoline, inflation was just 1.5 per cent. The Bank of Canada's three measures of trend inflation continue to trend close to 2 per cent. In BC, provincial consumer price inflation was 2.0 per cent in the 12 months to December. While it did cool in December, inflation in Canada is now pushing up against the Bank of Canada's 2 per cent target after remaining fairly muted for much of the last year. Today's release shows a general firming of inflation around 2 per cent which, if sustained, will mean further rate increases from the Bank this year. The British Columbia Real Estate Association (BCREA) is the professional association for more than 20,000 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. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.