Metro Vancouver homeowners have grown accustomed to healthy increases on their annual B.C. Assessment notices, which are now landing in mailboxes.

What’s new this year is that condo values are also rising in the region, after a few flat years that saw condo construction outpace homebuyer demand.

“Condominiums, that’s apartments and townhouses, up until 2014 had been relatively flat over three years,” said Cameron Muir, chief economist of the B.C. Real Estate Association.

Over 2014, however, Muir said condo sale prices have risen in step with inflation. Condo prices in Vancouver and its nearer suburbs were up about two per cent as of July, when B.C. Assessment sets its values for the next year’s assessment roll.

Single-family home values were up a more substantial 6.5 per cent, Muir said, but some of the condo valuations were a departure from the previous year.

“We’re probably looking, in Vancouver, at sales (increases) of 16 to 17 per cent in 2014,” Muir said, “so, there’s much stronger demand, and we’re also seeing inventory levels steadily decline.”

B.C. Assessment doesn’t produce average assessment values for property types in Lower Mainland markets but does highlight representative examples.

In Vancouver, a typical east-side two-bedroom apartment increased 4.7 per cent to $381,000, from $364,000 a year earlier.

On Vancouver’s west side, values for a typical two-bedroom apartment rose 7.5 per cent (to $616,000), in line with the growth in value of a detached home on a 33-foot lot (up 7.5 per cent to $1.575 million).

In its real estate assessments a year ago, B.C. Assessment had highlighted decreasing condominium values in the range of four to five per cent — the second consecutive year that condo prices declined or offered minimal increases.

“Changes within a plus or minus five per cent range, that’s what we categorize as stable,” said Dharmesh Sisodraker, B.C. Assessment’s deputy assessor for the Vancouver Sea to Sky region, which takes in Vancouver and the North Shore all the way to Whistler.

Assessments, which are used by municipalities to set property taxes, tend to lag the overall market by the time they are released.

In east Vancouver, a typical detached house on a 33-foot lot saw an increase of 11.3 per cent, to $993,000.

In Vancouver Heights, typical detached home prices rose five per cent to $955,000.

“(Condominium) prices are still under pressure versus detached homes, mostly because there is so much (condominium) product on the market,” explained Ray Harris, president of the Real Estate Board of Greater Vancouver, and the increases in condo prices are “sporadic.”

In Metro Vancouver, demand for new condos has been in high-growth areas linked to rapid transit, such as the Marine Gateway development at Cambie and Marine in Vancouver or the Metrotown and Brentwood town centres in Burnaby.

“If a complex is in demand and there are not a lot of units in the market, you can get more of a lift,” Harris said.

Suburbs such as Burnaby, Coquitlam and Port Moody — communities either on SkyTrain, or where SkyTrain is being built — are among those that have seen modest increases in the range of two to three per cent.

However, the gains weren’t shared equally and some spots still showed decreasing assessment values. B.C. Assessment cited an example at Simon Fraser University’s UniverCity development, where the assessed value of a two-bedroom highrise unit declined 2.5 per cent from 2014.

“There are a few pockets where values decreased slightly,” said Zina Weston, a deputy assessor for B.C. Assessment in its North Fraser region, which takes in the eastern suburbs closest to Vancouver.

“If there is a lot of building that comes on in a short period of time in a finite area, there might be some (downward) pressure on pricing,” Weston said.

Harris added that condo owners trying to re-sell are having a tougher time because developers are selling new units at lower prices than they would be if the market were stronger.

Condo values also declined in Fraser Valley suburbs from Langley to Chilliwack, where single-family home prices are in the reach of more buyers.

Dan Scarrow, a vice-president at Macdonald Realty in Vancouver, added that some municipalities are more encouraging to condo developers and “as a result of that, maybe some areas tend to get overbuilt.”

“Then, in some municipalities, say Vancouver, it is more difficult to get a project off the ground, but demand is actually quite high,” Scarrow added.

Markets that rely on recreational property sales — such as Whistler, the Okanagan and Kootenays, where sales collapsed and values declined following the 2008 recession — also took part in some of the rebound in 2015 assessments.

B.C. Assessment cited examples in Kelowna where assessments were up from four to seven per cent. In Whistler, a typical home in the White Gold area increased in value 7.4 per cent, to $1.06 million.

depenner@vancouversun.com

SURREY, BC – Fraser’s Valley’s real estate market returned to normal activity levels in 2014 with sales of single family detached homes leading the way.

Ray Werger, President of the Board, says, “It was a busy year for both buyers and sellers. In 2014, both sales and new listings were stronger in Fraser Valley compared to 2013 – most notably for detached homes and townhomes – with the result that we’ve returned to normal market activity for our region on par with our 10-year average.”

The Board’s Multiple Listing Service® (MLS®) processed 15,840 sales in 2014, compared to 13,663 the previous year, an increase of 16 per cent. It also received 4 per cent more new listings during the same time period – 30,642 in 2014 compared to 29,338 in 2013. Over the year, the number of active listings for buyers to choose from dropped by 23 per cent going from 7,541 properties in December 2013 to 6,380 in December 2014.

According to Werger, sales during the month of December followed the same trend as every month in 2014 with sales surpassing the same month compared to 2013. “It was the third busiest December we’ve experienced in the last decade with sales almost keeping pace with the number of new listings.

“As a result, we’ve seen our inventory deplete, which is normal for this time of year however, our selection hasn’t been this low for almost eight years. We hope to see the usual influx of new listings during the first quarter of 2015 because we’re currently seeing a shortage of affordably priced single family detached homes in certain areas.”

In December, sales increased by 21 per cent, going from 890 in 2013 to 1,075 last month. New listings increased by 13 per cent in December compared to 2013 going from 1,013 to 1,147.

Home prices in December continued along the same trends as seen for most of 2014, with prices of single family detached homes continuing to rise; townhouse prices remaining steady, and apartment prices decreasing slightly. The MLS® Home Price Index (MLS® HPI) benchmark price of a detached home in December was $573,100 an increase of 4.3 per cent compared to December 2013, when it was $549,500.

The MLS® HPI benchmark price of townhouses in December was $293,500 on par with $293,300 in December 2013. The benchmark price of apartments decreased year-over-year by 0.8 per cent, going from $192,600 in December 2013 to $191,100 in December 2014.

courtesy of Fraser Valley Real Estate Board

The Fraser Valley Real Estate Board processed 1,136 sales on its Multiple Listing Service (MLS®) in November, an increase of 15 per cent compared to the 986 sales during the same month last year and 22 per cent lower than the 1,448 sales processed in October.

New listings in the Fraser Valley decreased by 2 per cent in November, going from 1,774 last year to 1,748 last month taking the number of active listings to 8,302, a decrease of 4 per cent compared to the 8,641 active listings in November of 2013.

“This is the time of year when families are settling in for winter and the holidays, so we expect to see a decrease in activity,” explains the Board’s president, REALTOR® Ray Werger. “After a busy fall with volumes reaching 5-year highs, we’re winding down the year with sales on par with the ten-year average, but about 8 per cent fewer new listings therefore home buyers will notice a shortage of inventory in certain price ranges.”

Pricing continues along the same trends as seen for most of 2014, with single family detached prices continuing to rise; townhouse prices remaining steady, and apartment prices decreasing. The MLS® Home Price Index (MLS® HPI) benchmark price of a detached home in November was $575,400 an increase of 4.6 per cent compared to November 2013, when it was $550,300.

The MLS® HPI benchmark price of townhouses increased 2.2 per cent from $292,400 in November 2013 to $298,900 last month. The benchmark price of apartments decreased year-over-year by 3.5 per cent, going from $196,200 in November of last year to $189,400 in November 2014.

“Prices are a function of supply and demand - which your REALTOR® will explain varies considerably from area to area and within the different property types - as well as local amenities, transportation options and future community development, underscoring the importance of expert guidance when you’re looking to list or buy,” says Werger.

“Overall, 2014 is shaping up to be a good year for Fraser Valley real estate,” continues Werger. “We hit a bit of a trough during the summer of last year, but since then sales have recovered and we’re tracking towards a 15 percent increase in year-to-date sales for 2014 compared to 2013 with prices remaining relatively stable.”

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For Immediate Release: February 4, 2013

SURREY, BC – A total of 617 sales were processed through the Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) in January, a decrease of 23 per cent compared to 799 sales during the same month last year. January 2013 ranks as the second slowest for that month in the last thirteen years, second only to January 2009 during the global recession.

Scott Olson, president of the board, says there is a distinction between what REALTORS® saw four years ago compared to today. “People want to buy. We’re already seeing early signs of a typical spring market with more foot traffic at open houses and an increase in calls.

“Buyers have been holding off in hopes that prices will drop more, however it’s become clear that sellers are only willing to go so far. Prices for typical homes in the Fraser Valley have decreased by only two to three per cent in the last six months and in January we’re starting to see a reversal of that – in half of our communities prices have crept back up.”

Olson suspects the market stalemate may be coming to an end. “The number one reason people buy a home is a lifestyle decision – you need a bigger home, a smaller one, closer to work or school – so when the right home comes along you can only wait so long.

“With interest rates as low as they are, our local economy as strong as it is and prices so tenacious I think we’ll see the effects of this pent‐up demand and a return to more balance in the market.”

In the last six months, prices for all three residential property types combined have decreased by 2.5 per cent while year over year they’re on par, showing an increase of 0.7 per cent. Of the three property types, prices of single family detached homes have been the most resilient, increasing 1.5 per cent in the last year going from $532,700 in January 2012 to $540,500 last month.

For townhouses, the benchmark price in January was $293,700, a decrease of 2.0 per cent compared to $299,800 during the same month last year. The benchmark price of apartments in Fraser Valley in January was $200,400, an increase of 1.2 per cent compared to $198,000 in January 2012.

REALTORS® added 2,643 new listings in January, 4 per cent fewer than the same month last year. This decreased the number of properties available in the Fraser Valley to 8,031, a decrease of 3.5 percent compared to January 2012. By historical comparison, January 2013 ranks as the third highest in terms of active listings in the last decade.

To View the full FVREB report, select the following link http://www.fvreb.bc.ca/statistics/Package%20201301.pdf .

For Immediate Release: November 2, 2012

SURREY, BC – The Fraser Valley Real Estate Board (FVREB) processed 1,053 sales on its Multiple Listing Service® (MLS®) in October, a decrease of 8 per cent compared to the 1,139 sales during October last year however a 23 percent increase compared to September.

Scott Olson is the president of the board. “This is a marked improvement over September. Our sales increased at the same time as our inventory dropped improving our supply‐demand conditions.

“Although we remain in a buyer’s market, it moves us in the direction we want to go, which is closer to balance.”

The number of new listings posted on the MLS® in October was on par with the same month last year and a decrease of 1 per cent compared to September with the result that the volume of active listings in Fraser Valley at the end of October remained unchanged compared to 2011 and 3 per cent fewer than in September.

Benchmark prices for residential property types are showing month‐over‐month decreases however, depending on the property type, still show positive gains year‐over‐year.

The benchmark price of a detached home in the Fraser Valley in October was $546,900, an increase of 2.5 per cent compared to October 2011, when it was $533,800; and a 0.5 per cent decrease compared to September when it was $549,500.

The benchmark price of townhouses decreased 2.2 per cent going from $303,900 in October 2011 to $297,100 last month. The benchmark price of apartments increased year‐over‐year by 2.9 per cent, going from $198,100 in October of last year to $203,900 in October 2012.

“Over the last three months we’ve seen the impact of lower sales and higher selection on prices of typical homes in our region. In most communities and for most property types, prices have slowly decreased in small increments month‐over‐month.

“This has had resulted in buyers having more time to make a decision and sellers working diligently with their
REALTOR® to understand the market and set their prices accordingly. What’s happened in October is good news for both. Greater stability is always positive.”

Economists at the British Columbia Real Estate Association have predicted sales in the Fraser Valley will rebound by 6 per cent in 2013 compared to 2012 while prices will remain flat.

Courtesy of the Fraser Valley Real Estate Board

Anticipated hike of two per cent in line with inflation, experts say

After surprising growth in 2011, Greater Vancouver real estate prices will rise just two per cent in 2012, Canada

Mortgage and Housing is forecasting.

In 2011, CHMC predicted price growth of just three per cent, tempered by an expectation of higher interest rates,

but interest rates stayed low and prices ultimately jumped 16 to 17 per cent.

In 2012, the market will stabilize and show modest growth in line with inflation, said Robyn Adamache, senior

market analyst with CMHC in Vancouver.

"I'd say it's a pretty stable market out there. We're not expecting to see a lot of change going forward," Adamache

said Thursday in an interview. "We have seen the market moving to more balanced conditions over the past five

or six months, and that's expected to continue."

She said job growth and migration, including people from within Canada and immigrants, are the factors

driving the housing market, and they should continue.

"So far, for the first 11 months of 2011, we've seen about 30,000 additional jobs created in the Metro Vancouver

area," Adamache said. "We're forecasting that we'll see 35,000 to 40,000 people moving here each year, going

forward."

Not all municipalities saw this kind of growth in housing prices in 2011; the west side of Vancouver and

Richmond led the way with 20-per-cent or higher increases for single family homes, while other municipalities

and multi-family homes saw lower growth.

For the five years leading up to 2010, the compound annual growth rate in Greater Vancouver for all types of

homes was 10 per cent, while the 20-year average was six per cent, Adamache said.

In some areas, such as Maple Ridge, prices of condominiums have not recovered to prerecession prices,

Adamache said.

The average price of a home in Greater Vancouver, including single-family and multi-family homes, for 2011

up to Nov. 30 was $796,000. CMHC is calling for that average to rise to just over $800,000 by the end of 2012.

For November only, the monthly average was down slightly to $736,000, and Adamache said that trend might

continue into the first half of 2012.

"I think we will see prices staying fairly flat until later in 2012," Adamache said.

Across the country, prices were 5.8 per cent higher in 2010, to an average $339,042.

Forty-eight per cent of households in Vancouver own their own homes, while nationally the average is

68 per cent.

In Greater Vancouver, housing starts will see growth of about five per cent in 2012, compared to 12 to 15

percent in 2011, and the number of houses sold will also increase about nine per cent over 2011,

Adamache said.

Meanwhile, CMHC released its 2011 Canadian Housing Observer on Thursday, showing that Canadians owed

more than a trillion dollars on their mortgages as of March, which when added to other household debt is a

"serious issue."

The CMHC reported that housing-related spending of about $330 billion a year in 2010 has risen by

67 per cent since 2001 and now comprises 20.3 per cent of Canada's gross domestic product in 2010 -

which underlines the importance of that debt load, and what might happen to the economy if for any reason

Canadians crack under its burden.

CMHC figures show that mortgages made up about 68 per cent of total household debt in 2010 - up from

63 per cent in 1971 but down from the peak of 75 per cent in 1993. Consumer credit, which makes up the

other 32 percent, has been growing faster than mortgage debt over the past two decades, it says.

A breakdown of these numbers for B.C. was not available; however, the report shows that B.C. has a high

percentage of mortgage-free homeowners at 47 per cent, a number second only to Cape Breton.

"The major risk in the mortgage market is impairment in a household's ability to pay, often due to job loss.

Recession or other adverse economic scenarios, such as rising interest rates, could certainly pose a challenge

for some Canadian households," the report states.

Canadians' debt levels have been growing fairly steadily since the 1960s, the report notes, but adds that

a number of more recent factors have allowed debt to grow to its current record level, including low interest rates,

rising household incomes and financial product innovations, which have allowed Canadians to make lower

payments on higher debt loads.

While about 6.5 per cent of Canadian households are financially vulnerable according to Bank of Canada

guidelines, the CMHC says continued employment growth, increasing net worth of households and a growing

population are all positive factors for housing demand.

tsherlock@vancouversun.com

2011 real estate market showcases regional variation

Below average home sales combined with a regular influx of new listings continue to give buyers
the upper hand in communities south of the Fraser River, including Mission. However, according 
to the president of the Fraser Valley Real Estate Board, Sukh Sidhu, “There is action when 
the property iscompetitively priced.

"It is not a quiet market. Priced‐right properties are selling thanks to the continuation of low 
interestrates.” Sidhu adds, “What’s happening is that there is a large amount of inventory available 
in the Fraser Valley, in particular with condos and townhomes, and that’s what’s holding prices in check.”
The Fraser Valley Real Estate Board processed 1,139 sales in October on its Multiple Listing Service®
(MLS®), an increase of 12 per cent compared to the 1,014 sales during the same month last year and a
decrease of 2 per cent compared to 1,165 sales in September.

In terms of listings, the board posted 2,511 new properties in October, an increase of 18 per cent
compared to October of last year and a decrease of 5 per cent compared to September. The number of
active listings in the Fraser Valley dipped in October, going from 10,096 in September to 10,005.
Sidhu says, “The good news for sellers is that although inventory is high, it’s not near record highs and
sales remain steady. This is why the overall benchmark price for residential properties has remained
unchanged for six months.”

The benchmark price (the price of homes with characteristics typical to that area) of a single family
detached home in the Fraser Valley in October was $530,335, an increase of 4.9 per cent compared to
$505,759 in October 2010 and on par with the price in September.

For townhouses, the benchmark price in October was $325,482, an increase of 2 per cent compared to
the same month last year when it was $319,058 and down 0.6 per cent compared to September. The
benchmark price of apartments in October was $243,725, an increase of 1.3 per cent compared to
October 2010 and on par with the price in September.

The average number of days to sell a Fraser Valley home varies depending on the property type. Sidhu
says the average of 45 days to sell a single family detached home has been constant for three months.
In October, townhomes took on average 55 days to sell and apartments 75 days.

Click to view the full report at http://www.fvreb.bc.ca/statistics/Package%20201110.pdf

SOURCE- FVREB