Vancouver home assessments rise faster on west side

Business In Vancouver, Business Today, Wednesday, 04 January 2012 09:28 – by Glen Korstrom

Home assessments on Vancouver’s West Side rose more than 10 times that of East Vancouver condominiums, according to information released by BC Assessment January 3.
One constant is that virtually all of Vancouver’s 192,000 property owners should expect their 2012 property assessments to be higher than last year.
“Almost all homes in the city are increasing in value compared to last year’s assessment roll,” BC Assessment area assessor Jason Grant said in a statement.
“Most single-family homeowners in Vancouver will see significant increases, in the 10% to 25% range. Strata condominium owners will also see increases, but typically less than 10%.”
Overall, Vancouver’s assessment roll increased to $254 billion in 2012 from $222 billion last year.
The disparity in price growth between west Side single-family homes and East Vancouver apartments is stark.
For example, the price of a West Side single-family dwelling on a 50-foot lot rose an average of 38% to $1,645,000 in 2012 compared with 2011.
An East Vancouver two-bedroom apartment, in contrast, rose in value an average 3.4% to $386,000 between those two years.

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Just released, new stats from REBGV

Balanced real estate market prevailed through much of 2011

The 2011 Greater Vancouver housing market began with heightened demand in regional hot spots and concluded with greater balance between seller supply and buyer demand.

The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2011 reached 32,390, a 5.9 per cent increase from the 30,595 sales recorded in 2010, and a 9.2 per cent decrease from the 35,669 residential sales in 2009. Last year’s home sale total was 6.3 per cent below the ten-year average for annual Multiple Listing Service® (MLS®) sales in the region.

The number of residential properties listed for sale on the MLS® in Greater Vancouver increased 2.7 per cent in 2011 to 59,549 compared to the 58,009 properties listed in 2010. Looking back further, last year’s total represents a 12.8 per cent increase compared to the 52,869 residential properties listed in 2009. Last year’s listing total was 11.1 per cent above the ten-year average for annual Multiple Listing Service® (MLS®) property listings in the region.

“It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below,” Rosario Setticasi, REBGV president said.

Residential property sales in Greater Vancouver totalled 1,658 in December 2011, a decrease of 12.7 per cent from the 1,899 sales recorded in December 2010 and a 29.7 per cent decline compared to November 2011 when 2,360 home sales occurred.

More broadly, last month’s residential sales represent a 34.1 per cent decrease over the 2,515 residential sales in December 2009, a 79.4 per cent increase compared to December 2008’s 924 sales, and a 12.6 per cent decrease compared to the 1,897 sales in December 2007.

The overall residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 7.6 per cent to $621,674 between Decembers 2010 and 2011. However, prices have decreased 1.5 per cent since hitting a peak of $630,921 in June 2011.

“Our market remained in a balanced state for most of the year, although higher levels of demand for detached properties in the region’s largest communities caused prices in certain areas to rise higher than others,” Setticasi said. “For example, the benchmark price of a single-family detached home experienced double-digit increases in nine areas within the region over the last 12 months.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,629 in December 2011. This represents a 4.1 per cent decline compared to the 1,699 units listed in December 2010 and a 49.4 per cent decline compared to November 2011 when 3,222 properties were listed.

Sales of detached properties in December 2011 reached 630, a decrease of 18.1 per cent from the 769 detached sales recorded in December 2010, and a 30.2 per cent decrease from the 902 units sold in December 2009. The benchmark price for detached properties increased 11.2 per cent from December 2010 to $887,471.

Sales of apartment properties reached 774 in December 2011, a decline of 4.6 per cent compared to the 811 sales in December 2010, and a decrease of 32.9 per cent compared to the 1,154 sales in December 2009.The benchmark price of an apartment property increased 3.7 per cent from December 2010 to $401,396.

Attached property sales in December 2011 totalled 254, a decline of 20.4 per cent compared to the 319 sales in December 2010, and a 44.7 per cent decrease from the 459 attached properties sold in December 2009. The benchmark price of an attached unit increased 4.2 per cent between December 2010 and 2011 to $511,499.

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Wishing you all a Merry Christmas, Season’s Greetings and a Happy New Year in 2012!

Video greetings from the lobby at Downtown Suites. Because the lobby has a bit of an echo, the audio might not be so clear on your computer, but you can read the full text here.

I just want to give a quick recap of what’s been going on in our fair city this last year.  We’ve had a very strong real estate market for a lot of the year, mainly being driven by offshore Chinese buyers coming from mainland China and driving the price of real estate up. It has made a little bit of controversy in the city because affordability of housing is actually deteriorating. The politicians and the media are struggling with ways to try and resolve this.

Well, the easiest way to resolve it is to increase the supply (this seems to be eluding everybody at the moment.) But create more supply and we will have more affordability obviously.

Essentially, we were slower renting this year than we were last year but now, this holiday season is one of the busiest months we’ve had in several years. Lisa, our leasing manager, has been absolutely rushed off her feet and she’s working all through the holiday season trying to get those suites that are available re-rented as soon as possible. Most suites do rent within 30 days and we very rarely have a vacancy.

Rental rates have gone up, we’re thinking probably about 5% overall over the last year. In the summer they were even higher. But, again, with more supply, more condo buildings coming on stream with vacant units that are hitting the market, the prices have softened a little bit. But we’re still seeing about a 4 or 5% increase over prices of last year in general. This is borne out by the legislation of the Provincial Government, who are now legislating that rents can be raised 4.3% for 2012. As you probably know, we can only raise rents to the maximum that’s set by the Government. We’re not perceiving that to be any kind of a problem. 4.3% will be the rate and that seems to be pretty well in line with actual market conditions.

On the sales side, as I said before it has been fairly strong. We’ve got a lot of product on the market, still do have. With condominiums there’s at least 1000 available right now, resales downtown. We’ve still got a lot of new product coming on stream, particularly on the other side of False Creek, the Olympic Village area, there is a huge amount of building going on there. And around the BC Place Stadium there is projected to be 7000 more people going to be living in that zone alone, as well. So all this will help with affordability.

Plus, of course, we’ve got to maintain our market share because we’re now competing with all the other municipalities. Surrey is definitely open for business, much more affordable. It’s a different kind of tenant out there, but nevertheless Surrey is a very vibrant place and a lot of head offices are moving there. So Vancouver has to maintain its share within the region and drive the market, as it has done for so long.

We’re very enthusiastic and very positive about the new year, which I’m sure is going to be another great year. I would like to again wish you all the very best of the season and hope that next year is as prosperious for you all as this one was. And Good Health! Thank you.

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Following are the latest housing statistics from the Greater Vancouver Real Estate Board.

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Recent stats from REBGV (Real Estate Board of Greater Vancouver)

Historically normal activity keeps the Greater Vancouver housing market in a balanced state

The Greater Vancouver housing market saw relatively typical home sale and listing activity in November.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) reached 2,360 in November. This represents a 5.9 per cent decline compared to the 2,509 sales in November 2010 and a 1.9 per cent increase compared to the 2,317 sales recorded in October 2011.

Looking back further, last month’s residential sales total is 5.8 per cent below the ten-year average for sales in November.

“The pace of home listings entering the market eased slightly in November, compared to recent months, while sale levels remained fairly normal for this time of year,” Rosario Setticasi, REBGV president said. “November activity helped put our market firmly in balanced territory.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 3,222 in November. This represents a 26.3 per cent decline compared to the 4,374 new listings reported in October 2011, but a 6.3 per cent increase compared to November 2010 when 3,030 properties were listed for sale on the MLS®.

Looking back further, last month’s new listing total is 2.1 per cent above the ten-year average for November.

The total number of properties currently listed for sale on the Greater Vancouver MLS® sits at 14,090, a decline of 9 per cent compared to October 2011 but an increase of 13 per cent when compared to this time last year.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 7.2 per cent to $622,087 in November 2011 from $580,080 in November 2010.

Since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 1.4 per cent.

Sales of detached properties on the MLS® in November 2011 reached 916, a decrease of 12.8 per cent from the 1,050 detached sales recorded in November 2010, and a 21.3 per cent decrease from the 1,164 units sold in November 2009. The benchmark price for detached properties increased 11.4 per cent from November 2010 to $890,204.

Sales of apartment properties reached 1,000 in November 2011, a 4.9 per cent decrease compared to the 1,052 sales in November 2010, and a decrease of 28.4 per cent compared to the 1,396 sales in November 2009. The benchmark price of an apartment property increased 2.7 per cent from November 2010 to $399,686.

Attached property sales in November 2011 totalled 444, a 9.1 per cent increase compared to the 407 sales in November 2010, and a 15.1 per cent decrease from the 523 attached properties sold in November 2009. The benchmark price of an attached unit increased 4.5 per cent between November 2010 and 2011 to $510,960.

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Some of our recent news bulletins (from Facebook), showing what we’ve been working on and thinking about at Downtown Suites this past week.

Studio suites for rent continue to be popular with singles and couples, being a lower monthly rent than most 1 bdrm suites in downtown Vancouver

“While the European sovereign-debt crisis in the past several months re-ignited tensions in global financial markets and heightened uncertainty about the world economy, the effect on Canada’s housing market so far might not have been all negative,” the report states.
B.C., Vancouver housing affordability edges up: RBC
www.bivinteractive.com
Business in Vancouver: business news, commentary, research and intelligence for Greater Vancouver and British Columbia since 1989

If you need to have an evaluation of your suites’ rental potential we are happy to provide you with a complimentary rental market evaluation that is realistic. Too often owners are too optimistic on what they can achieve for rent prior to closing and then are surprised at the reality of the rental market.

The rental market is softening slightly says our leasing manager, Lisa Taylor. It is not unusual now to have multiple showings for the same suite and pricing has to be right on market.

Rent increase review time again…we regularly check current market pricing to ensure that your suite is performing as it should.

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Nicholas Meyer of Downtown Suites Ltd. goes over the qualities and skills you should look for in a residential property management company.

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Keep up with our active office on Facebook – here are some of this week’s postings:

• Thinking more about how we have to increase density get more people in to the city, increase our tax base AND make housing more affordable. Why can’t we let every developer build 10 extra floors on every building and make them rentals. Rentals are fast becoming unaffordable in the city. Please can we find some politicians with the cojones to do something instead of just yap and do nothing?

• Interesting article by Peter Mitham in Business in Vancouver on replacing our aging rental housing stock:

Replacing Vancouver’s aging rental stock to maintain affordable housing options is going to be financially painful and politically distasteful >Unless neighbourhoods accept higher building densities, there will be no new development and homeowner taxes will continue to climb By Peter M…

• Surrey projected to become the largest city in BC within a decade (currently 12th) … no wonder with new condos still selling under $200k it is an affordable place for people to live. Also, they have greatly expanded their tax base. Maybe our mayoral candidates could look to Surrey for some guidelines in making the city more prosperous!! lol

Surrey tops real estate investment opportunities in B.C.

www.bivinteractive.com

Surrey has been ranked number 1 in the Real Estate Investment Network’s (REIN) latest report on the top cities and towns in B.C. for real estate investment.

• We have been receiving a lot of positive feedback regarding our fast response times, especially in response to tenant concerns such as repairs/maintenance and noise complaints. Whenever an issue arises, we are committed to rectifying it as soon as possible.

• Housing Forecast Points to Market Stability in 2012

http://www.bcrea.bc.ca/docs/economics-forecasts-and-presentations/housingforecast.pdf

www.bcrea.bc.ca

• Signing tenancy agreement for December 1st and agreement extensions for the next year. Many of our tenants wish to stay and extend the fixed terms of their agreements
  

• At Downtown Suites we do not charge extra for renewing existing leases, all part of our service. Many competitors charge 25% of the rent for doing this. Another good reason to choose DTS as your rental manager. Honest, fair and reliable.

• NR6 2012 packages are going out today sometime to our Non-Resident owners for signature. Once received back our controller will sign off and we will submit to CRA for processing in early 2012.

• Scheduling this month’s annual inspections…we do regular inspections to ensure that the properties we manage are in good condition, to maintain both the quality of the owner’s investment and the comfort of the tenant.

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In this video, Nicholas Meyer talks about service, and what you can expect from a full service company as opposed to a discount brokerage.

More and more competition is coming into our marketplace as people try and steal market share away from established professional companies like ourselves. The reality is that to maintain a quality staff, in a quality premise, in the right location, to provide all the goods and services and the experience, the licensing, banking and accounting requirements…. it is very difficult for us to have our prices at any lower place than they are.

For the rate of service that we offer we are extremely competitive and very very reasonable in our rates. We’ve cut them, actually, to the bone.

Just to give you an example of the sort of service that we offer – this week there was a common area leak in one of our suites. I’ve had a property manager visiting that property, including weekends (because it’s currently vacant), to make sure that the work that the plumbers have done is holding, and that there isn’t any further damage. This is an hour to an hour and a half every day that we are putting into this property. When you think about it, what our team rents out for on an hourly basis, we are going to lose money on this particular client for at least six months probably, maybe more. But that’s part of our job and part of what we say we’re going to do.

We’re reliable, we’re honest and we do the right thing all the time. That’s what you’re getting with us: you’re getting a 24/7 insurance policy. You have somebody in Vancouver who’s going to be looking after your property with the same sort of interest that you would look after it yourself. We treat your property as if it was our own.

Beware of the discount people. A lot of their prices are misleading. They say they’re going to charge a minimum number and then there are all these upcharges and hidden charges that they add on to every single thing.

Our fees are very simple. We have a monthly fee. We have a leasing fee. And there is a small extra fee for taking the responsibility of the non-resident tax and dealing with all the accounting issues. And that’s it. We don’t charge for extra leases if the tenant stays on. We don’t charge for repairs. We don’t charge for anything whatsoever. If we can get you wholesale prices on appliances, wholesale prices from trades, we pass those savings on to you. We don’t upcharge on anything. I know some people will call a plumber and add on a $50 service charge. If they go and buy some appliances they’ll try and buy them wholesale and sell them to you at a retail price. And so it goes on.

We don’t do that. We’re very very fair. And, as I say, the accounting, and the costs of having the annual audit and to be complying completely with the rules takes at least half of whatever we take from any client in commission on a monthly basis. The rules are so stringent, if we’re actually following the proper rules that are set out by the Real Estate Act.

As I said, some people are circumnavigating that, not having proper trust accounts, and these are things that you have to be very careful of.

Do you really want to trust your million dollar investment to somebody who’s kind of fly-by-night? It just boggles the mind. We’re not going anywhere. We just paid a million dollars for this office: we’re sitting on Pender Street in downtown Coal Harbour, the best part of the city of Vancouver.

We’ve been in business for over 15 years and I’ve been personally in the business for over 30 years in Vancouver. We’re here to stay, and we’re here to look after your property to the best and highest professional level that we can.

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