Another Record Month
In January 2009 we had the worst month Vancouver had ever seen. Just seven short months later and July 2009 was the best July on record. The turnaround we've seen in the last few months is nothing short of miraculous.
Sales are no longer improving on a month-to-month basis, but this is to be expected as we enter the slower summer months. Year-over-year sales are way up (+90.39%) while listings are down (-17.63%) significantly. The laws of supply and demand are now putting pressure on prices.
In March, Westside houses were off over 22% from prices the year before. Since that low, prices have been rising to the point where in July detached westside homes were off only -3.61%. That's an incredible rebound in a very short period of time.
This has happened with prices across the board in Vancouver. Each category of home has rebounded to the point where they are off only about 3% from year-over-year prices. In fact, I have been noticing that the lower end of the market actually appears to be higher priced than a year ago.
Monthly Vancouver MLS Statistics - July 2009
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The official line
"Home sales this summer are seasonally higher than normal, which is due in large part to the price correction that has taken place in the last year and low interest rates," Scott Russell, REBGV president said. "Although wellpriced listings and lower-to mid-range priced properties remain in the highest demand across Greater Vancouver, recent activity from first-time buyers is beginning to boost demand in the "move-up" segment of the market."
"It is currently taking, on average, 48 days for a home to sell in the region. Today's market activity differs by area and property type and it's important to tap into local housing market expertise to understand why some properties are attracting multiple offers, while others are not moving," Russell said.
The numbers
Sales fell this month (-5.82%) for the first time in five months. If we look at the year-over-year comparison sales are way up (+90.39%). There were 1327 sales in July 2009 versus just 697 in July 2008.
New listings fell (+3.88%) on a month-to-month comparison. There were 1612 new listings in July compared to the 1677 in June 2009. Year-over-year there was a significant drop (-17.63%) from 1957 in July 2008 to 1612 this past month. The Sell/List ratio dropped a little to 82.32% (from 84.02%).
Active listings fell for the fifth straight month to 3216. This is down month-to-month (-8.45%) as well as year-over-year (-42.67%). Active Listings hit another annual low this month.
Please Donate
On June 22nd, 2009 I broke the record for the most ascents of the Grouse Grind for charity. The Royal LePage Shelter Foundation is an incredible organization which is there to help women and children suffering from domestic abuse. Of every dollar donated, 100% goes directly to those in need (Royal LePage covers all administrative costs of the charity).
Donate to the Royal LePage Shelter Foundation
More info on Vancouver real estate
Are you a first time home buyer? I have helped many first time buyers purchase their first home. If you are thinking of looking, I can help you take advantage of all the government programs and incentives, educate you on the process, and get you the best possible deal on the home that you want.
Contact Sebastian, Vancouver Realtor or send me a quick email.
Copyright © 2009 Vancouver Realtor Blog by Sebastian Albrecht, Vancouver Realtor with Royal LePage Vancouver "July 2009 Real Estate Board of Greater Vancouver MLS Statistics - Another Month, Another Record"
The provincial government announced on July 31st, 2009 that it was ending the loan program of the Homeowner Protection Office. You'll recall that I first drew attention to the matter at the beginning of the month when the Homeowner Protection Office first indicated that there were funding problems for the interest free loan program.
The loan program was initially set-up by the NDP government in 1998. At the time, many advocates were calling on the government to pay outright for renovations required by the leaky condo mess. The loan program was intended to last 10 years and have a $250 million budget to refurbish condos built prior to 1999 (when the building code was changed to require rainscreening). Instead, it lasted until 2009 and loaned out $670 million.
The loan program had funding issues that resulted from the decline of the BC real estate market in the last year. Funding for the program came from a levy placed on new construction by the provincial government. With the decline in the market there was a fall in new housing starts that dried up the funding source.
When announcing the end of the program, Colin Hansen claimed that there is no longer a need for the loan program. I strongly disagree. As a Vancouver realtor I know of many buildings in this city that were built before 1999 that have yet to be fixed. Where will funding come from for the financially strapped owners of these buildings when the time comes?
In addition, there are also a number of buildings built under the new building code that have building envelope issues. Rainscreening, or concrete construction, are not guarantees of sound construction. The provincial government needs to continue this loan program in order to maintain confidence in the quality of our construction industry and our real estate market.
Interestingly, while the government is going to stop funding the program they will continue to collect the $750 levy on new housing starts (used as the funding source for the program).
Please Donate
On June 22nd, 2009 I broke the record for the most ascents of the Grouse Grind for charity. The Royal LePage Shelter Foundation is an incredible organization which is there to help women and children suffering from domestic abuse. Of every dollar donated, 100% goes directly to those in need (Royal LePage covers all administrative costs of the charity).
Donate to the Royal LePage Shelter Foundation
More Info on Vancouver Real Estate
If you'd like to learn more about the Vancouver real estate market generally you can check out this page.
Are you thinking of buying or selling, or just have questions then you can contact me here or send me a quick email.
Copyright © 2009 Vancouver Real Estate in the Vancouver Realtor Blog by Sebastian Albrecht, Vancouver Realtor with Royal LePage Vancouver "Leaky Condo Loan Program Scrapped"
I recently provided an update on the BC government's proposal to implement a Harmonized Sales Tax and it's impact on the Vancouver real estate market. The HST was a surprise to us all. It's unfortunate that the provincial government chose not to consult those of us directly impacted before announcing the tax.
The Announcement
The announcement of the HST was such a surprise that those affected are scrambling to respond. Both the BCREA and the REBGV are currently trying to figure out exactly how to respond and just what the impacts on the real estate industry are. I expect that we will be hearing more from our industry in the coming weeks on this topic.
If you are purchasing property in BC as of July 1st, 2010 you will have to pay the HST (12%) on new construction (although up to $400,000 will be exempt up to a maximum credit of $20,000). You will also have to pay the HST (12%) on realtor fees, appraisal fees, and home inspection fees. All of these costs were previously exempt from the PST (7%).
The Impact
Perhaps you think that this tax won't affect you if you aren't purchasing new construction. I believe that the implementation of the HST on new construction will affect the resale market as well. I expect that we will see resale prices rise approximately 7% in order to balance out with the costs of new construction once the HST is in place.
We were already paying a hefty provincial tax on purchasing property in British Columbia (the PTT which is 1% on the first $200,000 and 2% on the balance). Adding the PST to this tax (albeit only for new construction) only exacerbates the affordability issue in BC (and particularly in Vancouver).
Affordability is the biggest issue in the Vancouver real estate market. With the market just beginning to take off again, it's nothing less than irresponsible for the Provincial government to impose this tax without at least consulting the industries directly affected.
The Response
The president of the BCREA, John Tillie, recently published this editorial about the HST in the Vancouver Sun.
Please Donate
On June 22nd, 2009 I broke the record for the most ascents of the Grouse Grind for charity. The Royal LePage Shelter Foundation is an incredible organization which is there to help women and children suffering from domestic abuse. Of every dollar donated, 100% goes directly to those in need (Royal LePage covers all administrative costs of the charity).
Donate to the Royal LePage Shelter Foundation
More Info on Vancouver Real Estate
If you'd like to learn more about the Vancouver real estate market generally you can check out this page.
Are you thinking of buying or selling, or just have questions then you can contact me here or send me a quick email.
Copyright © 2009 Vancouver Real Estate in the Vancouver Real Estate Blog by Sebastian Albrecht, Vancouver Realtor with Royal LePage Vancouver "HST Will Result in Higher Vancouver Real Estate Costs"
The following is commentary from the BCREA (BC Real Estate Association) on the impact of the HST (Harmonized Sales Tax) on the BC real estate. It is reproduced here with permission of the BCREA.
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Harmonized Sales Tax
On July 23, 2009, Premier Gordon Campbell and Finance Minister Colin Hansen announced that, effective July 1, 2010, BC will adopt a Harmonized Sales Tax (HST), combining the seven per cent Provincial Sales Tax (PST) with the five per cent federal Goods and Services Tax (GST) for a single sales tax rate of 12 per cent.An additional seven per cent tax will be charged on a variety of real estate related services, including commissions, appraisals and other services that are currently exempt, as well as adding thousands of dollars in additional costs to new home purchases.
Looking to offset the increase in costs, the Government of BC plans to offer a partial rebate of the provincial portion of the HST for new housing to ensure that new homes up to $400,000 will bear no more tax than under the current PST system, while homes above $400,000 will receive a flat rebate of about $20,000.
What does this mean for REALTORS®?
As proposed, the HST will increase the cost of buying or selling a home and becomes essentially an additional tax on home ownership. Under the HST, REALTOR® commissions will be subject to a 12 per cent tax, replacing the five per cent GST now charged.
New home sales over $400,000 will be dramatically impacted, as buyers will now have to pay an additional seven per cent tax (even with the $20,000 flat rebate). This will act as a disincentive to buyers of new homes in the short term.
Next steps
Although no consultation occurred before the announcement, BCREA is working on recommendations to keep the impact of the HST as neutral as possible with respect to housing attainability.
Please Donate
On June 22nd, 2009 I broke the record for the most ascents of the Grouse Grind for charity. The Royal LePage Shelter Foundation is an incredible organization which is there to help women and children suffering from domestic abuse. Of every dollar donated, 100% goes directly to those in need (Royal LePage covers all administrative costs of the charity).
Donate to the Royal LePage Shelter Foundation
More Info on Vancouver Real Estate
If you'd like to learn more about the Vancouver real estate market generally you can check out this page.
Are you thinking of buying or selling, or just have questions then you can contact me here or send me a quick email.
Copyright © 2009 Vancouver Real Estate in the Vancouver Real Estate Blog by Sebastian Albrecht, Vancouver Realtor with Royal LePage Vancouver "Vancouver Real Estate and the HST (Harmonized Sales Tax)"
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