Whistler Olympic Village - Molding issues

 

Supportive housing in Vancouver -- coming to a neighborhood near you? (Vancouver Real Estate)

 

Vancouver Olympic Village condo owners file lawsuit for Defects

 

Olympic Village condo owners, some of whom paid more than $1 million for their suites, filed lawsuits this week seeking refunds for what they claim are gross deficiencies in their homes.

High-rise Towers in Kitsilano by The Squamish First Nation (Kitsilano Real Estate)

 

The Squamish First Nation is considering a plan to build two high-rises on native land at the southwest corner of the Burrard St. Bridge in Vancouver.

Chief Gibby Jacob said Wednesday the intent is create economic development and provide much-needed housing for the community.

“Nobody is lining up to house our people,” he said. “We have 2,000 members on a waiting list.”

The “business” proposal will be voted on by band council and 3,700 members later this month.

“Hopefully, if we get approval, work could get going next year. There is still a lot to be done,” he said.

Jacob did not disclose the numbers of units contemplated, heights of buildings or the firms involved.

The land was re-acquired by natives in 2002 after a lengthy court battle which found that it had been illegally taken from them almost a century beforehand.

Natives say the four-hectare parcel, which straddles both sides of the bridge, was part of the tribe’s ancestral home for hundreds of members.

Jacob said permission is not required from Vancouver because the project would be on self-governing native land.

He said residents would pay First Nations taxes — a portion of which would go to Vancouver under an agreement to be negotiated.

Services such as water, sewer and drainage would also have to be worked out with the city.

Vancouver Coun. Geoff Meggs said that band members held “positive” talks with Vancouver officials last fall about building rental towers.

Meggs said he had no reason to think there would be special problems with the development if the natives decide to go ahead.

“We have a fantastic relationship with the Squamish Band,” he said.

But he admitted that there may objections on the basis of local concerns such as the size of buildings, layout and traffic.

Meggs said the natives told him public meetings would be held with “lots of chances to comment.”

“They said they don’t want to be treated any better or any worse than anybody else,” he said.

Cat: Kitsilano Real Estate

High-rise Towers in Chinatown, Vancouver

Vancouver council meeting on Chinatown rezoning packed

VANCOUVER — Vancouver council chambers was standing-room only on Thursday night, as supporters and opponents of a controversial proposal to allow for taller buildings in Chinatown spoke at a public hearing.

At issue is the proposed rezoning of the area bordered by Quebec street to the west, Pender to the north, Gore to the east and Union to the south, to allow for the concentration of several high-rise condo buildings, ranging from seven to 15 storeys.

Wendy Pedersen, an organizer with the Carnegie Community Action Project, said a chief concern is that the rezoning would drive up rent prices and displace the area's low-income residents.

Pedersen said a local area planning process should be completed and more residents consulted before further action is taken.

Ivan Chiu, a concerned citizen whose mother lives in the area, said he is worried about what might happen to low-income housing in the area. He also questioned whether more density would contribute to increased traffic and pollution along the Main Street corridor.

Also at city hall were about 30 supporters clad in red T-shirts emblazoned with the words "Support Chinatown HAHR" (Historic Area Height Review). Many of them believe the rezoning is needed to revitalize the area, which has been in a steady decline for years.

 

 

Shirley Chan, past chair of the Chinatown Historic Area Planning Committee, said it was sad to see so many empty storefronts in Chinatown, where she grew up.

Couns. Raymond Louie and Kerry Jang expressed concerns over creating a "great wall" of block-face buildings. The planning committee responded by saying the buildings would be staggered, with set-back fronts, to preserve the feel of the neighborhood.

Vancouver Mayor Gregor Robertson said 117 people had signed up to speak and that a second meeting will be held April 5 to accommodate all speakers.

According to a draft rezoning proposal, the "development of higher buildings in this area shall balance the opportunity for additional growth and resulting public benefits with preserving the important heritage and cultural character of Chinatown."

A decade-long consultation process with Chinatown residents, businesses, community members and others by the Vancouver Chinatown Revitalization Committee found 38 Chinatown organizations to be in favour, including social services society SUCCESS, the Chinese Benevolent Association and the Dr. Sun Yat-Sen Chinese Classical Garden.

© Copyright (c) The Vancouver Sun

The Canadian Real Estate Association (CREA) - February 2011 Report

According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity in February 2011 ran close to the five-year average for the month, continuing a theme that has characterized the past four months. Seasonally adjusted home sales activity edged down 1.6 per cent in February 2011 compared to the previous month on a national basis. Sales activity eased in almost two-thirds of all local markets from the previous month, offsetting monthly increases in activity among other markets including Vancouver and Calgary.

 

TD, National join big Canadian banks lowering their fixed mortgage rates

  TORONTO - Three more Canadian lenders say they will lower some of their fixed rate mortgages as nervous investors move to bonds, causing a drop in long-term interest rates.

TD Bank (TSX:TD), National Bank (TSX:NA) and Desjardins Group said Wednesday that their fixed five-year closed rates will drop 0.1 of a point to 5.34 per cent, effective Thursday.

The move follows similar announcements from Royal Bank of Canada (TSX:RY) and Bank of Montreal (TSX:BMO) on Tuesday.

Four-year rates will fall 0.15 percentage points to 4.99 per cent across the board.

Seven-year rates will move 0.2 percentage points lower to 6.14 at TD and to 6.4 per cent at Desjardins and the others, but will be unchanged at National, whose 10-year closed rate will fall 25 basis points to 6.4 per cent.

Fixed mortgage rates, which are closely tied to bond markets, tend to fall when traders shift investment activity from riskier equity assets toward bonds, which are considered safer.

Investors have been jittery over fears that a potential nuclear disaster in Japan could severely derail the global economic recovery.

In February, many of Canada's big banks moved to raise their fixed mortgage rates as investors grew more confident about investing in equity markets and the global economy appeared stronger.

By The Canadian Press

Vancouver pulls up national average home price in February to record $365,000

TORONTO - Sizzling sales and pumped up prices in the Vancouver real estate market drove up average home prices last month, but the increases will begin to recede as new mortgage rules further cool demand, according to the Canadian Real Estate Association.

Home sales in Vancouver skyrocketed 24.7 per cent over a year ago, but nationally, Canadians saw a decrease of 6.3 per cent year-over-year, CREA said in its February sales report released Tuesday.

A record number of multimillion-dollar home sales in Vancouver drove the national average home price up 8.8 per cent year-over-year to a record $365,192 in February, it said. But excluding Vancouver —where the average home price is $790,380—the year-over-year national average price actually dropped 3.4 per cent.

CREA said prices are still stronger than those seen in the past six months, but national average price gains will creep backward after new mortgage regulations that tighten borrowing limits take effect Friday.

"You're going to be looking at fewer sales of higher priced homes and that's going to skew the average lower, and for that reason we say average price increases on a year-over-year basis may soften," said CREA's chief economist Gregory Klump.

The rules cut the longest possible amortization period from 35 years to 30 years, and are designed to curb high-risk borrowing, which could force some potential buyers out of the market.

Doug Porter, deputy chief economist at BMO Capital Markets, said activity in the national housing market appears to be simmering down just as the tighter mortgage rules are set to take effect and stressed that Tuesday's figures would have been even softer if it had not been for strength in Vancouver.

He said he wouldn't call the Vancouver activity a bubble, but said the city is seeing a huge wave of buying activity.

"A bubble is in the eye of the beholder to a large extent, but there's no question that what's going on in the Vancouver market is special and it's not being repeated across the country," he said.

"While it's a very powerful force, it likely can't last forever and at some point we will see a pull back."

Klump said wealthy immigrants and Chinese investors who see Canada as a safe haven for their money are snapping up high-priced Vancouver real estate without taking out mortgages.

He said a bubble is caused when the value of homes have reached unsustainable levels relative to incomes and economic principles, but this isn't happening in the case of Vancouver where home buyers are paying cash.

Overall, CREA said national resale housing activity in February ran close to the five-year average for the month.

Seasonally adjusted home sales were down 1.6 per cent nationally over January, as sales eased off in about two-thirds of markets, offsetting increases in activity in Vancouver and Calgary.

About 41,283 homes were sold last month across the country on CREA's Multiple Listing Services, down 2.2 per cent from the 42,230 sold in January.  

The number of new listings was up 1.5 per cent in February, as higher demand and stable prices lured sellers into listing their homes after reluctance amid the softer housing market last summer.

CREA said the housing market remained balanced —leaning towards neither buyer nor seller— in February as sales activity and supply remained stable. It said its national measure of market balance remained little changed from the previous four months.

However, the new mortgage rules may alter the market dynamic.

The rules will make the maximum payback period 30 years — resulting in somewhat higher regular payments than with the 35-year amortization that has been the choice of about 30 per cent of home buyers.  

The rule changes will increase the monthly payment on a $300,000 mortgage at four per cent interest by $105 — but will also reduce total interest paid by $42,288 over the life of a mortgage because it's repaid five years sooner.

"That's going to take some buyers out of the market and its likely to lead to somewhat lower prices that these buyers can offer," Porter said.

"I think it's likely to shave the increase in home prices we see this year. We think prices will actually struggle to post any gain through the rest of the year."

B.C.'s average MLS price up 18 per cent in February: BCREA

METRO VANCOUVER - The average Multiple Listing Service price of a home in British Columbia was up 18 per cent in February compared to the same month last year, according to the B.C. Real Estate Association.

The price surge was largely due to sales in Metro Vancouver, the BCREA said, citing even high price increases in the mostly densely populated region of the province.

In Metro Vancouver the average MLS residential price climbed more than 19 per cent, compared to February 2010.

"The surge in consumer demand in Metro Vancouver continues to propel the provincial statistics higher,” Cameron Muir, BCREA chief economist, said in a news release issued this morning.

“Elevated sales activity in Vancouver’s pricier communities has pushed average home prices higher than market conditions would suggest.”

BCREA REPORT March 2011 - Vancouver Real Estate

© Copyright (c) The Vancouver Sun (Vancouver Real Estate)

Housing starts drop in B.C., but rise in Metro Vancouver: CMHC report

Housing starts drop in B.C., but rise in Metro Vancouver: CMHC report

HST uncertainty blamed for 5.9-per-cent drop, but metropolitan area sees 23-per-cent hike

** See bottom of the page for the full Report

VANCOUVER - Housing starts were down in B.C. in February, with uncertainty over the HST being blamed for part of the problem.

"I'm not surprised the starts are down, but I'm surprised they're down that much," M.J. Whitemarsh, CEO of the Canadian Home Builders' Association of B.C., said in an interview Tuesday after the Canada Mortgage and Housing Corp. released a report showing starts were down 5.9 per cent in February to 24,100 on a seasonally adjusted basis.

"One of the things that's impacting housing starts is uncertainty over the HST," she said of the controversial tax, which will go to referendum this year. "People are holding off either buying new houses or even doing renovations because [the HST] may be gone. It's stifling consumer confidence.

"And if people aren't purchasing, builders aren't building."

According to figures released by CMHC, home construction across Canada edged up more than expected in February, but those gains are unlikely to be matched in the coming months as tighter-mortgage rules and higher-lending rates could begin to dampen building activity.

CMHC said the seasonally adjusted annual rate of housing starts was 181,900 units during the month, led mainly by condominium construction in Ontario and the Prairie provinces.

Although housing starts were down 5.9 per cent in B.C., there were differences around the province, with Metro Vancouver much stronger than other areas.

"For the first two months of the year, Vancouver housing starts are up 23 per cent [compared to January and February 2010]," CMHC's regional economist Carol Frketich said in an interview. "That reflects a stronger resale market in [Metro Vancouver]. Also, Vancouver has had stronger job creation than the rest of the province."

Frketich said urban B.C. starts were also up 5.1 per cent for the first two months of 2011 compared to last year, but fell in February.

"The numbers can fluctuate from month to month," said Frketich, adding that the results reflect CMHC's forecast.

CMHC noted there were 1,414 housing starts in the Vancouver CMA in February, a slight increase from the same month a year ago, with strength in multiple unit housing starts in Richmond, Coquitlam and Surrey accounting for most starts.

Greater Vancouver Home Builders' Association president and chief executive officer Peter Simpson noted in an interview that there were 2,850 housing starts in Metro Vancouver for the first two months of 2011, compared to 2,319 in the same period in 2010.

"We've certainly come a long way from the dark days of 2009," he said. "We're going in the right direction."

The Abbotsford CMA had 25 housing starts in February, down slightly from 37 starts during the same month a year ago.

"Canadian residential construction activity appears to be stabilizing at a level consistent with underlying demographic demand," said BMO Capital Markets economist Robert Kavcic.

"In the quarters ahead, home sales could be challenged by higher mortgage rates and shorter amortizations, which will eventually weigh on starts, but the maturing economic recovery should help," he added.

On Monday, Statistics Canada reported the value of building permits fell unexpectedly in January due to weaker residential and non-residential activity.

The agency said permits were down 5.1 per cent to $5.4 billion during the month.

Below is the full report:

CMHC Housing Market Report for BC - 1st Quarter of 2011

REBGV February 2011 Housing Market Update

Real Estate Board of Greater Vancouver Housing Market Update - Feb 2011

New Mortgage Rules In Canada From March 18, 2011

 

New Mortgage Rules In Canada From March 18, 2011

Mainland Chinese Creating Vancouver Millionaires

 

Richmond Housing Prices

Richmond home prices skyrocket

Median price for a detached home climbs above $1 million

Home prices in Richmond have reached a new high, the Real Estate Board of Greater Vancouver reports.

Over the past year, the price for detached homes in the Vancouver suburb has climbed 20 per cent, or about $215,000, the board said.

The median price for a detached home in the Garden City is now hovering just above the $1-million mark, up from $885,000 just six months ago and $879,000 one year ago.

Patsy Hui, a Richmond real estate agent, said although it is "such a lovely place," it's not the inherent beauty of Richmond that's driving prices: It's the investors.

"All kinds of people, but mostly people originated from mainland China," Hui said. The prices may seem high to us, she added, but present a "real deal from a world point of view."

One home that sold last year for $1.2 million brought $1.73 million this year, Hui said.

Ivan Krpin, who makes custom-built homes in Richmond, says more than 80 per cent of his clients are from mainland China and that most buy older houses and knock them down.

"On the old house there's no HST [harmonized sales tax], so all they would have to pay for is the actual construction of the home," he said.

Krpin said the surge in demand is pushing people who have lived in Richmond for years into neighbouring communities.

"It became very attractive for them to make some extra money on the properties, on the values and move to the Valley, to White Rock and south Surrey," he said.

On the flipside, very few former Richmond residents are getting back into the local market.

"It has become too expensive for ordinary people that live and work in this community," Krpin said.

Real Estate Board of Greater Vancouver Stats Package, February 2011

REBGV reports increased housing demand in February

(For the full report please see the bottom of the post)

Demand for detached homes continues to be strong across Greater Vancouver, with particularly high sales volumes occurring in Richmond and Vancouver Westside.

For the past two months, the number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) in Greater Vancouver outpaced the 10-year average in both categories. From a historical perspective, February’s 3,097 home sales outpace the 2,742 home-sale average recorded in the region over the last ten years.

“We saw an increase in demand across our region last month as more buyers entered the market in advance of the spring season,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). “The intensity of this activity varied between communities. Our statistics tell us that single detached homes in Richmond and the west side of Vancouver remain the most sought after properties in our marketplace.”

Between November 2010 and February 2011, the MLSLink® Housing Price Index (HPI) benchmark price of a detached home in Richmond increased $190,739 to $1,099,679; in Vancouver West, detached home prices increased $222,185 to $1,850,072. In comparison, detached home prices across the region increased $51,762 between November 2010 and February 2011 to $848,645.

“To effectively analyse real estate statistics for the purpose of buying or selling a home, it’s critical to focus on your neighbourhood of choice because, like we see today, conditions and prices can fluctuate significantly within the same city or municipality,” Moldowan said.

Looking across the region, the REBGV reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,097 on the MLS® in February 2011. This represents a 70.3 per cent increase compared to the 1,819 sales recorded in January 2011, an increase of 25.2 per cent compared to the 2,473 sales in February 2010 and a 109.3 per cent increase from the 1,480 home sales in February 2009.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,693 in February 2011. This represents a 23.6 per cent increase compared to February 2010 when 4,606 properties were listed, and an 18.6 per cent increase compared to January 2011 when 4,801 homes were added to the MLS® in Greater Vancouver.

“With a sizeable increase in the number of properties coming onto the market for sale, there’s a good selection out there for buyers to choose from,” Moldowan said.

At, 11,925, the total number of residential property listings on the MLS® increased 14.2 per cent in February compared to last month and increased 5 per cent from this time last year.  

Sales of detached properties on the MLS® in February 2011 reached 1,402, an increase of 42.6 per cent from the 983 detached sales recorded in February 2010, and a 138.9 per cent increase from the 587 units sold in February 2009. The benchmark price for detached properties increased 6 per cent from February 2010 to $848,645.

Sales of apartment properties reached 1,206 in February 2011, a 12.3 per cent increase compared to the 1,074 sales in February 2010, and an increase of 85.5 per cent compared to the 650 sales in February 2009. The benchmark price of an apartment property increased 2.2 per cent from February 2010 to $399,397.

Attached property sales in February 2011 totalled 489, a 17.5 per cent increase compared to the 416 sales in February 2010, and a 101.2 per cent increase from the 243 attached properties sold in February 2009. The benchmark price of an attached unit increased 2.3 per cent between February 2010 and 2011 to $507,118.

REBGV Stats Package, February 2011

Big 6 See Rate Hike in May or July

 

With the Bank of Canada maintaining the status quo yesterday, many are wondering what’s next for mortgage rates.

If you put any stock in the Big Six banks’ predictions, here’s the latest commentary from their professional ball gazers…

CIBC: “We're sticking with our view that an upgraded economic outlook in April's policy report will pave the way for a rate hike in May, assuming the C$ settles down a bit before then.”

BMO: "We judge that the bank is waiting for evidence that U.S. economic performance is strong and steady enough to ensure that Canadian exports will contribute to Canadian economic growth regardless of the level of the loonie. We’ve pencilled in a July resumption of rate hikes.”

National Bank: “There is a compelling case to be made for higher interest rates in Canada since excess supply is closing faster than previously anticipated by the Bank…We remain of the opinion that the next rate hike will occur at the May 31 interest-rate setting meeting.”

RBC: “The Bank is unlikely to stay on the sidelines for long if the data continue to show that the economy is maintaining its upward momentum…We maintain our call for 100 basis points of rate increase in 2011 with the first hike coming in May 2011.”

Scotia bank: “…When it comes to forecasting the resumption of rate hikes by the BoC ... we think that doesn't occur until October of this year.”

TD: "In the wake of today’s statement, markets will pare back bets that a rate hike is in the pipeline in April or May…A next hike in July still appears the fairest bet."

These predictions apply to the overnight rate, which has a direct impact on prime rate. Prime rate, of course, is the basis for variable mortgage rates.

As always, it’s worth remembering that economist rate predictions are subject to change and error. That said, for fun we ran some quick numbers based on the banks' estimates.

For argument's sake, let’s suppose that:

• You want to compare a 5-year variable versus a 5-year fixed rate
• You’re willing to set the variable-rate mortgage payment so that it’s as big as the fixed-rate payment (Normally, variable-rate payments are less than fixed-rate payments.)
• Prime rate starts rising again at the July 17 BoC meeting and rises ¼ point each BoC meeting until the overnight rate climbs 2.25 percentage points
• This puts the overnight rate at 3.25% by year-end 2012 (Note: 3.25% happens to be a rough estimate for the “neutral” BoC policy rate…if not a tad low. A neutral policy rate is a BoC overnight rate that neither stimulates nor restrains economic growth.)
• Rates remain flat for years 3-5 (Rates may fluctuate further but we’ll assume they average out to no change over that three year span.)
• You have a $250,000 mortgage amortized over 30 years.
• 
  If these things hold true, which would perform better?

1. Today’s typical 3.94% 5-year fixed mortgage; or,
2. Today’s typical prime – 0.80% variable-rate mortgage?

Based on the numbers alone, the fixed rate has a $416 interest cost advantage over five years.

Does that mean you should go fixed instead of variable? Not necessarily.

There are several instances where someone might prefer to pay less interest up front, or have a three month interest penalty instead of an IRD penalty. In those and other cases, a variable may be the better fit.

The point here is just that 5-year fixed and variable mortgages are now neck and neck based on the big banks’ future rate assumptions (for what those are worth). Would it pay to roll the dice on a variable rate to save a bit of interest? You and your mortgage advisor should make that call.