John Grasty, Licensed Representative in Metro Vancouver, Port Moody based.

The sudden discontinuation on July 31, 2009, of the HPO Reconstruction Loan Program by Housing Minister, Rich Coleman and his government was unconscionable. They have now brought consumer protection to an all-time low in BC.

In the Fall of 2007 the Homeowner Protection Office received an independent report from McClanaghan and Associates which clearly pointed out that we were not even half way through the leaky condo disaster in BC.

After 9 long years of under-estimating the full extent of the leaky condo disaster it would finally be acknowledged in the report. Direct costs to B.C. families for the various types of fixes, many inadequate, already exceeded a staggering $2.3 billion, and only 45 per cent of B.C.'s leaky condos had been fixed.

Pierre Gallant, an architect with engineering consulting firm Morrison Hershfield, told the Vancouver Sun, "It is hard to estimate the number of buildings that still need repairing." Gallant's concern is that without the loan program, owners will be more reluctant to address their problems with leaks and buildings will go longer without repairs.

With leaky condo remediation costing more than three times what it cost 10 years ago and no loan program in place, more "partial" or "band-aid" type fixes will inevitably be undertaken. This has serious ramifications to homeowners and home buyers beyond the funding of direct repair costs.

A homebuyer considering a home (1982 to 2002) will want to know that it is "low risk" to buy. This means if moisture should penetrate the building envelope it can escape through the cavity wall (Rainscreen); not "Faceseal" in which water gets trapped resulting in rot.

To verify a building is reasonably safe (there are no absolute guarantees), here are a few tips [...]

John in Port Moody

The Vancouver housing market experienced a dramatic rebound this year. MLS® residential sales increased threefold January to October on a seasonally adjusted basis, and are trending on record levels. A marked increase in affordability during the spring induced many potential buyers into the market and the resulting momentum quickly turned a buyer's market into a seller's market with upward pressure on home prices.

Rising home prices are again eroding affordability and the demand that welled up last winter during the height of the financial crisis is now largely expended. This means the pace of home sales recorded this autumn will likely moderate over the coming months. However, despite some moderation in consumer demand, home sales in Greater Vancouver are expected to remain relatively strong through 2010.

The information contained in this report has been drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does the British Columbia Real Estate Association assume any responsibility or liability.

After posting an estimated 41 per cent increase to 35,500 units this year, home sales are forecast rise an additional 5 per cent to 37,100 units in 2010, well above the ten-year average of 33,000 units.

The annual average MLS® residential sales price in Greater Vancouver is estimated to decline 1 per cent to $586,000 this year. This reflects the cyclical low recorded early in the year and the recent price acceleration. The average annual price is forecast to rise 6 per cent to $620,000 in 2010.

However, much of the increase will have occurred by the end of this year, with greater stability in home prices expected next year.

Housing starts in the Vancouver Census Metropolitan Area are estimated to fall to their lowest in more than four decades this year. A sharp decline in units under construction and inventory levels that peaked at a relatively low level is setting the stage for home builders to ramp up production in 2010. The lag between conception and completion of new housing may create a period of under-supply in the new home market. This condition will help underpin price levels in both the new and resale markets in Greater Vancouver.

A few years ago I became familiar with a 2005 Port Moody report, "Moody Centre Commercial Market Assessment and Revitalization Strategy Gap Analysis".

The objective of this report was to provide an overview of the market position and redevelopment strategy for the retail component of the Moody Centre Commercial District, "...a relatively large and mature commercial district, which could be revitalized".

It confirmed untapped levels of demand that could easily support a huge retail infrastructure, much like what has been envisioned for Moody Centre at the "Western Gateway" ("The area extending along Albert Street/Barnet Highway from St. Johns Street to Short Street is often referred to as the Western Gateway to Port Moody. It is intended that the scale of redevelopment in this area will be reflective of its prominence as an entrance to the City." - Port Moody's DEVELOPMENT PERMIT GUIDELINES section 12.1 Development Permit Area 2 for Moody Centre).

Here are some revealing and disturbing excerpts from the Gap Analysis:

The (Moody Centre) commercial district does not have the scale or types of stores required to serve the retail needs of consumers. The majority of all residents' retail expenditures go outside the trade area to much larger destinations.

It is the food and service businesses that Moody Centre is well positioned to satisfy. There is over $30 million in potential supermarket sales available. This could support two supermarkets, or close to 50,0000 sq.ft. of supermarket space, yet there is not a single supermarket within the study area.

Moody Centre trade area could support a wide range of and scale of stores. The main problem with capturing the retail sales of this market is the presence of competitive stores nearby and the lack of anchor stores on site. One of the most important steps to increase sales would be to increase the local population by allowing more multi-family development.

If Port Moody residents shopped within their own city, the estimated demand shown here for the trade area could be more than tripled.

This last point is particularly poignant for the owners and residents on the west side of Barnet Highway. We have failed to market the untapped demand identified in this report, and almost 5 years later little has changed.

Today the Evergreen Line offers a once in a lifetime opportunity to integrate the existing neighbourhoods in the west end of Port Moody, "under-serviced" as they remain, which are ripe for revitalization and growth.

This Western Gateway area has been affectionately (although unofficially) identified as "Old Port" (in contrast to the built-out, "Newport") by many of those engaged in the ongoing OCP process and is seen as an excellent location from which to serve a large and underserved market.

According to draft OCP documents, "Commercial land use needs for Port Moody will be met through a number of strategies..." including, "...higher density mid-rise and high-rise mixed use development in nodes or clusters within Moody Centre." This clearly offers some hope.

The single most important issue is that the west side of Port Moody has no "Landmark" or anchor tenants. New residential development and retail located near an Evergreen station in this area is a potential answer, which would help integrate the western neighbourhoods and develop a distinct identity for the Western Gateway to Port Moody.

Harmonized Sales Tax Update for New Home Purchases in BC...

Rebate Threshold and Transitional Rules for New Housing

The Province is proposing to increase the threshold for the BC HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than is currently embedded as PST.

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

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

The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010.

In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.

This is good news for the Real Estate Board and proof that our lobbying efforts produce results.

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

"We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province," said the Hon. Colin Hansen, Minister of Finance. "...Don't ask me what I want it for, If you don't want to pay some more, 'Cause I'm the taxman, yeah, I'm the taxman"

Clearly the BC government listened to us in the real estate sector.

In early 2008 multi-family homes in Port Moody became the city's main source of available housing stock. Yes, more than 50% of Port Moody's households are now multi-family.

Extrapolating the fact that we have more couples here in Port Moody, based on single (1) person households in Port Moody of only 19.6% (compared to 28.5% in Metro Vancouver), the supply and demand for one bedroom suites is much lower than that of 2 bedroom.

There are only 5 - 1 bedroom suites for sale at the present time in the Inlet Centre (taking in the area from Klahanie to Newport Village) and only 8 sold in the past three months.

Although we can normally expect many listings to expire by December 31^st, the current supply of 85 active (for sale) 2 bedroom suites substantiates this commentary, as does the demand in the past three months of 57 sold.

In contrast to other cities, and based on the 2006 Census, Port Moody has a significantly younger citizen profile which means amongst other things that retail buying patterns of our citizens will be different.

In the 20 years between 1986 and 2006 the shifting age distribution of 55 plus has grown. While BC as a whole has a 55 plus (age) population of 26.8% and Metro Vancouver is at 24.1%, only 18.1% of Port Moody's population is 55 plus.

Looking at 65 plus, and again BC is high at 14.5%, Metro Vancouver at 12.9% and Port Moody's 65 plus population is at only 7.8%.

This younger demographic are more computer dependent and will communicate and be engaged through the internet and handheld applications such as the Blackberry and iPhone. Being so distinct it will be interesting to see how Port Moody responds.

We are very fortunate to have an unrivalled quality of life in Port Moody that is affordable, modern family-oriented, promotes sustainable and green practices, and caters to a vibrant and active outdoor lifestyle.

We are uniquely situated on the Pacific North-West as Canada's gateway to emerging markets and with a reputation as one of the most liveable regions in the world. This helps to explain the continued net gains from in-migration and why the global spotlight of the 2010 Olympic torch is unlikely to stop the desirability or demand of West Coast living with Port Moody being high on the list.