Province

Canadian home prices have started to fall for the first time this decade.

The average selling price of a home in June was down 0.4 per cent from a year earlier to $341,096, the Canadian Real Estate Association reported yesterday. That’s the first year-over-year monthly decline in prices since January 1999.

Meanwhile, sales of existing homes in the first half of this year were down more than 13 per cent from a year earlier, while the number being put on the market hit an all-time high.

© The Vancouver Province 2008

Ryan Fletcher
Other

During the short walk from Cambie Street to Carrall Street along West Hastings there are 24 plots, new developments and derelict buildings for sale or rent. In the centre lies 58 West Hastings, gentrification “ground zero” in Vancouver, where local action groups are pitting themselves against the city council and real estate developers.

In June, Concord Pacific, Vancouver’s largest real estate developer, was given permission to build 160-condominiums on the empty plot, despite the protests of more than 200 residents.

Many fear condos will further marginalize the area’s poor and homeless. Advocates for the development say that it is necessary to make the area accessible for everyone.

Downtown Eastside resident, community activist and researcher for the Carnegie Community Action Project (CCAP), Wendy Pederson, led about 40 interested citizens on a gentrification tour of area. She ended the tour at 58 West Hastings, which she called the “frontline” of gentrification in the area.

“When we found out we hit the roof. At a city hall meeting we handed in letters from 206 residents who disapproved of the project. We stalled them initially but the planning department approved it anyway,” she said.

She went on to explain that CCAP wanted more community involvement in deciding how to develop the Downtown Eastside (DTES), Canada’s poorest post code.

Related: Views on development of Downtown Eastside

“We need to freeze what’s happening so that new developments work for everyone, especially the 75 per cent of low-income residents on the DTES. There has to be more public consultation,” said Pederson.

Condominiums will overwhelm the neighborhood. We want a moratorium on further planning for the area. So far we’ve gotten zippo.”

Balancing market housing with community

Not everyone feels the same way. Michael Geller, Non Partisan Association (NPA) Vancouver City Council candidate, believes that the condos will add to the community.

“For the ultimate health of the community we need a component of market housing,” he said. “Of course there should be non-market housing as well, but we do need renters and homeowners for a healthy community.”

Jim Makin, 69, a retiree who lives on the DTES, also thinks that condo development will be good for the area.

“It might help to clear all the drugs off of the streets. There’s a nice community down here but there’s also a lot of people who are up to no good,” he said.

The CCAP isn’t alone in its concern over the development. In October, a group of activists from the Anti-Poverty Committee also protested at 58 West Hastings. Carrying banners and megaphones, around 50 protestors marched to the site where they joined Food Not Bombs, a local food distribution group, and other members of the public.

Anti-poverty committee member, Anne Hunter, organized the event. A legal advocate for the Downtown Eastside Residents Association (DERA), Hunter said the rally was to protest the gentrification of the neighborhood at the expense of the provision of social housing.

“Concord Pacific are not wanted in the community. All that building luxury condos will do is force poor people out of the area. The new development will bring in a wave of high earners and the shops, services and security that come with them,” she said.

The DTES housing plan adopted by Vancouver City Council promises to provide one new social housing project for every market project. There are currently three new social housing complexes being built in the DTES, however, Hunter said politicians are failing to protect the community and deliver on the plan.

“How can we have a fair policy when Concord Pacific provide funding for the city’s political parties and gifts for its politicians?” she asked.

Hunter was referring to the donations Concord Pacific has made to the NPA, Vision and COPE, totalling more than $125,000 since 2005. According to an investigation by the Vancouver Courier, councillors have also accepted free concert passes, tickets to Canucks games and arts events, dinners and yacht rides from the group over the last year. The information was obtained under the Freedom of Information Act.

Community concerns

Many low-income residents also worry that condo development will push out the poor community. Kevin Schewaga, 49, who lives in an SRO hotel on the DTES, said that the government should be clear with local residents concerning condominium development.

“They should be honest with the people first off. You can see the condos encroaching on the Eastside. You can see its been squeezed out slowly but surely and yet its not really talked about,” he said.

“They talk about initiatives to help the homeless but at the same time they’re slowly squeezing it further east. I think they should be honest about what they intend to do down here which is try to get rid of it.”

David Autiero, a project facilitator for Vancouver City Council, said the city was doing its best to comply with the housing plan and that each planning application in the DTES would be considered according to procedure.

Regarding the building of condominiums at 58 West Hastings, he confirmed that development would go ahead without further public consultation subject to technical details being met.

“Community involvement takes place before the development permit is given. Typically after that there is no more public involvement. At this stage of the process there are no plans for further public consultation,” he said.

Copyright 2010 UBC Graduate School of Journalism

Sun

For a developer to worry about the look, from across town, of a new neighborhood is a bit of a twist. One peaked roof on a mountainside looks pretty much like another, right? Not according to Turtle Mountain‘s developer.

Turtle Mountain, from the Wesbild development company, is serving up soaring views of Vernon and Okanagan Lake. The neighbourhood is literally blocks from the city’s downtown amenities. As a key selling feature, the sights from Turtle Mountain are postcard perfect. Proud lot-owners from Alberta are so taken with the trademark scene of mountains and three lakes they’ve posted video clips of their skyline on YouTube.

When people working in the downtown look up however, Wesbild wants Turtle Mountain to earn the same reaction.

In the third phase, “the homes will be hanging on the cliff and looking right down on the city,” Turtle Mountain development manager Tony Zappone says. “We want to make sure the profile and ridge line of houses is eye appealing” to anyone who takes the time to look up –way up.

The conscientious attitude seems to fit the normal operating practice by Wesbild, whose credits include Westwood Plateau in the Lower Mainland and the Predator Ridge resort community, also in Vernon.

The developer has been a generous contributor to a variety of Vernon charities and in March paid to put its name on the Greater Vernon Multiplex as well. Now called Wesbild Centre, the entertainment venue will carry the developer’s name for the next five years and maybe longer.

Turtle Mountain boasts trails, wildlife corridors and a low-impact development philosophy that includes geothermal heating and air conditioning, dark sky street lighting and single-loaded streets. It will eventually feature 315 single family homes and 225 multi-family residences.

Zappone says Wesbild is carefully determining architectural guidelines on Phase 3 now and selecting compatible builders. The cliff lots of this new mountainside neighbourhood won’t be released until autumn or early 2009, however. In the meantime, the lofty residential neighbour to Vernon‘s downtown continues to sell view lots in its first two phases at a brisk rate.

A grand opening of four show homes was successfully staged on May 31. Completing that many show homes at once and having them open for viewing from noon to 5 p.m. daily is unique for a city the size of Vernon, says Zappone.

The showcase gives prospective buyers at Turtle Mountain a point of reference architecturally, he adds, as homes in the community must be either in the Craftsman style or in the modern Prairie style that was inspired by the designs of Frank Lloyd Wright. The distinct residences were built in by Inspiration Homes, DyCor Homes, Okanagan Trend West and Trico Homes. To date, 57 of the initial 80 lots released in the development’s first two phases have been sold.

”Our key focus at first was infrastructure,” says Zappone. ”It was a challenge to get this built on the mountainside.”

Zappone says Wesbild operates from a holistic point of view when it develops a neighbourhood. “We look at the environment and take the responsibilities of land and water stewardship very seriously,” he says.

The company has been recognized by the Audubon Society and the Urban Development Institute for setting the standard for responsible development in sensitive environments.

At Turtle Mountain, Wesbild set aside almost 10 hectares for parkland and incorporated an environmentally sensitive wetland known as habitat for the Painted Turtle. A

Aspen Grove Environmental Reserve, a unique habitat and travel corridor for wildlife moving through the area, was also maintained by Wesbild in the community.

Rare plant and animal species can be observed there including the red-listed trembling aspen. An extensive storm-water management-system has been incorporated at Turtle Mountain. Storm water runoff and snow-melt from the development are collected and filtered through the grove to provide moisture for vegetation.

”Preserving natural ground water flow ensures runoff does not negatively impact the water quality, vegetative community and habitat features,” claims Zappone.

High vantage points are afforded in nearly every direction at Turtle Mountain making sight of Okanagan Lake, Swan Lake and Kalamalka Lake splendid rewards after a hike.

The Grey Canal Trail is part of the reconstructed walking and hiking trails system in the development. The canal trail, once part of an elaborate network of open ditches, flumes and pipes used to irrigate agricultural land, features level grades the residents can enjoy.

Turtle Mountain‘s sales manager, Doug Watson, says buyers are mostly Albertans or Lower Mainland residents.

”But locals who initially purchased in Kelowna are moving here now. Kelowna is just getting too large for them” as a retirement option, he suspects.

Vernon‘s over-65 population is 50 per cent higher than the provincial average, making price an important factor in housing sales. Prices for the lots in the first two phases at Turtle Mountain range from the low $200s to $399,000.

Watson believes interest in the mountainside community is fueled by its location. “We’re just 10 minutes from downtown Vernon with its amenities like Wesbild Centre for sporting events and entertainment, the hospital and medical care centres, dining and shopping. People like the fact they are on a mountain with a southern exposure yet Vernon is just seconds away.”

Stan Sauerwein is a Kelowna journalist and author of more than a dozen histories and biographies, including Gentleman Train Robber: The Daring Escapades of Bill Miner and Rattenbury: The Life and Tragic End of B.C.’s Greatest Architect.

TURTLE MOUNTAIN

Project location: Vernon

Project size: 315 detached building lots, 225 attached residences

Prices: Phase 1 and 2 building lots, from +$200,000

Telephone: 1-866-944-0227

Web: turtlemountainvernon.com

Developer: Wesbild Holdings Ltd.

© The Vancouver Sun 2008

Sustainable design rules at UBC’S University Town

Barbara Gunn
Sun

The University of B.C. may be home to leading-edge minds, but it’s also quickly becoming the site of something else –leading-edge homes.

Now taking shape on the stunning Point Grey campus is the master-planned University Town, a collection of residential neighbourhoods constructed according to state-of-the-art sustainable design.

“This province, under the mandate of our premier, is becoming one of the most sustainable places on the planet,” notes Eric Andreasen, vice-president of sales and marketing for the Adera development company, which is now introducing University Town‘s newest residential addition, a 98-unit apartment project called Pacific.

“And the university has taken that to a world-class level. We’ve got people checking it out from all over the place.”

Pacific will be located in University Town‘s 100-acre Wesbrook Place neighbourhood, named for the university’s first president, Frank Wesbrook. The project promises high-end residency for those living in the one-and two-bedroom homes, but it will also promise much in terms of environmental stewardship.

Among other things, there will be a solar heat recovery system for hot water, Energy Star windows, appliances and thermostats, motion-activated lights in the bathrooms and conservation-designed plumbing fixtures. (Kitchen “hands-free” faucets, for instance, will be designed to automatically turn on and off, thereby conserving water.)

Pacific residency will also include membership in the Co-operative Auto Network, a car-sharing program that will see one automobile provided for every 100 residences at Wesbrook Place.

Andreasen says there’s no doubt that the “green” features in Pacific — the project is one of six the award-winning developer will ultimately insert into University Town — will be a huge attraction for homebuyers.

“There’s no question about it,” he says. “Obviously, there’s a cost to it, but at the end of the day, there’s tangible benefits … There’s a financial component; they save money in terms of what their energy costs are.

“There’s a social component to it because it makes the world a better place. And there’s a personal component to it because they’re doing something for their own lifestyle and their own responsible attitudes.”

Pacific will be built according to the university-developed REAP program — the Residential Environmental Assessment Program –which the University Town website describes as a “green building strategy that strongly encourages builders to use innovative building systems, local materials, high-efficiency appliances and equipment that minimize energy, water consumption and waste production.”

But while Pacific will incorporate multiple interior green features, the location of the four-storey building — it will be across the street from the community’s “village” and less than a block from Pacific Spirit Regional Park — will further add to the model of sustainability envisioned by University Town.

Residents who work or study at the university will be able to walk or bicycle to the campus. The offerings in the village, which will include a Save-On Foods, a community centre, boutiques, cafes, and a school, among other things, will serve many of their everyday needs, further reducing dependence on the automobile.

“We’re across the street from the village and between the village and the forest, which has always been the idyllic place to live,” says Andreasen of Pacific, the first phase of Adera’s two-building Pacific Spirit project. (The eventual Spirit building will be located kitty-corner to Pacific, across Wesbrook Mall.)

But while Adera can be applauded for creating something with environmentally responsible design, it can also be commended for Pacific’s design — period. The concrete-and-steel structure will be an example of West Coast contemporary architecture and styled to mirror its beautiful natural surroundings.

“It’s really bold, it’s strong, powerful architecture,” says Andreasen. “It’s got lots of glazing, it’s got lots of natural kinds of components on the exterior. There’s a lot of wood . . . again, it brings out the warmth, the tone of the coast.”

The U-shaped building will be built around an open-air breezeway, which will contain reflection ponds that Andreasen says are designed to “recognize the Pacific.”

Interiors will have top-of-the-line finishes: granite slab counters in the kitchens, gas or electric fireplaces, porcelain tile floors in the kitchens and bathrooms, to name just a few of the touches. Multiple optional upgrades are also available and include, among other things, hardwood floors, crown moldings, air conditioning, and hot tubs for those purchasing one of the six top-level units with enormous rooftop “lanais.”

(A grand-opening package of upgrades, including Monogram appliances, a wine fridge and barbecue and valued at up to $15,000, will be included with the purchase price for a limited time.)

The homes, says Andreasen, have attracted a mix of buyers, some with a UBC connection, and some without.

“We definitely have people who are associated with the university who are interested here,” he says. “But we have international interest.

“We have people from Korea that want to get involved with the school system and people that are empty nesters from the west side of town … It’s a very diverse group of people that you’ll find wanting to live here.”

He isn’t surprised by the interest.

“There’s a physical change as you come through this world-class forest,” Andreasen says. “You’re in a world-class university. And all of a sudden, it’s a smart place to be because it’s the epicentre for academics, thought and creativity … But it’s not just academics.

“There’s this casual component. It has a great outdoor opportunity so active people love it because you’ve got bike trails, access to everything. It also has world-class entertainment and culture, like the Chan Centre for Performing Arts and the Museum of Anthropology … So we have all this culture jammed into this great world-class location – and it’s beautiful.”

PACIFIC

Project location: University of B.C.

Project size: 98 apartments, 4-storey building

Residence size: 665 – 1,028 sq. ft., 1 +den, 2 +den

Prices: $449,000 – $829,900

Sales centre: 110 – 5779 Birney Ave., UBC

Hours: Noon – 5 p.m., daily

Telephone: 604-221-8878

Web: adera.com

Developer: Adera

Architect: Rositch Hemphill and Associates

Interior design: Portico Design Group

Occupancy: Spring 2010

© The Vancouver Sun 2008

Predicted increases not ‘heady’, but not bad either

Peter Simpson
Sun

For years, industry-watchers have waited for the buoyant Vancouver-area real estate market to trip over a curb. Since 2001, there has been nothing but good news. As a former editor, I can tell you that good news piled onto good news is a boring storyline for the media to follow month after month.

Recently, real estate skinned a knee, and everyone scrambled over each other to dial 911. But did the market really take a nasty tumble?

The reality reflects a Mark Twain quote: “The report of my death is greatly exaggerated.”

Yes, the resale market is having its challenges, as listings significantly outpace sales, transferring the upper hand from sellers to buyers and taking the panic out of the purchase.

But Cameron Muir, the respected chief economist for the B.C. Real Estate Association, said: “There is no evidence of any kind of substantial decline in prices.”

Also, I believe some of the homes lingering on the market were listed above true value, due to lofty expectations by homeowners and inexperienced agents. Homes that are priced right are selling.

Canada Mortgage and Housing Corporation predicts prices in Metro Vancouver will increase eight per cent this year and five per cent in 2009. Not heady numbers, but not bad either. Our situation here is a far cry from the misery experienced in many U.S. housing markets.

CMHC reported that for the January-through-June period, housing starts in Metro Vancouver were up nine per cent over the same period last year. Single-detached starts dropped, but multi-family starts (townhomes and condos) continued to climb, primarily due to affordability factors. More than 99 per cent of all new detached homes in Metro are priced above $350,000.

If this upward trend continues for the next six months, and starts end up higher than last year’s 20,736, this year will be the best year since 1993 – a 15-year high.

Even if starts slip a thousand or so below last year’s total, the homebuilding industry will still have achieved an average of more than 19,000 starts annually over the past five years. To put that average into perspective, a dismal 8,200 starts were recorded in 2000.

Last year, Metro Vancouver’s housing starts created 58,000 direct and indirect jobs, generating $3.1 billion in wages and $1.6 billion in government revenue from taxes. That’s a lot of positive zeroes.

Since today’s sales will determine tomorrow’s starts, I wanted to find out how the Metro Vancouver new-homes market was faring on the sales side, so I e-mailed builders and marketing agencies, asking them to share with me their recent experiences at presentation centres throughout the region.

Marketing veteran Howard Steiss responded, telling me forward-thinking people don’t buy used iPods, PCs or BlackBerrys, so it makes sense that they gravitate to leading-edge technology, eco-friendly products and sustainable building methods available in today’s new homes.

Business iconoclast Tom Peters – often referred to as the father of the post-modern corporation – appears to be on the same page as Steiss, believing “cool stuff is cooler than stuff that’s not cool.”

Fifth Avenue Real Estate Marketing president Mark Belling, like Steiss, a veteran marketer, told me his company, in mid-June, sold 150 condominiums during one weekend at Surrey‘s East Clayton neighbourhood. “Many people say the economy is not strong enough to absorb that many condominiums, that the old times of fast absorptions in mere hours was over. Not so,” he said.

Portrait Homes principal Rob Grimm, whose Maple Ridge single-family development was judged best in Canada, said that despite six weekends of snow in January and February, which affected visits to his sales office, Portrait entered into 29 sales contracts so far this year, compared to only 16 for the same period in 2007. “Not only that, but savvy purchasers are choosing an unprecedented amount of upgrades, so they can personalize their new homes to suit their tastes and lifestyles,” said Grimm.

Jay Minhas, president of Elegant Development, said sales are brisk at his 54-unit townhome project in East Richmond. “Despite being in the pre-launch stage, more than 25 per cent of the units have sold and we are experiencing strong interest and a significant volume of registrations,” said Minhas.

phase of an attractive – and attractively priced – project in desirable South Surrey recently. In one week, 26 of the 35 available townhomes sold. “Location, value and brand-name recognition are important considerations to home buyers these days, so the opening-day crowds and strong sales result at Kaleden did not take us by surprise,” said Polygon president Neil Chrystal.

Polygon also sold 27 lowrise condos at its Branches project in North Vancouver in under two weeks.

In my view, the big story is Morningstar Homes, which opened its Terella project in North Delta two weeks ago. This project took a painfully long time clearing the approvals process as residents, apprehensive about a new subdivision in their community, expressed their concerns emphatically.

That challenging history is what makes this success story all the more remarkable. More than 2,000 people pre-registered for an opportunity to purchase one of the four-bedroom, two-storey, 2,400-square-foot single-family homes. The first phase of the 178-home project was the release of 26 homes.

Morningstar president Dale Barron was adamant that his company did everything it could to allay the fears of neighbouring homeowners, who sought assurances the new homes would fit in to their established community of predominantly 30-year-old ranchers and basement-entry homes.

“North Delta homeowners were invited to participate in focus groups where they could review the designs and express concerns. Not only were the homes designed to reflect those concerns, they were built to the BuiltGreen Gold standard – a high level of resource- and energy-efficiency,” said Barron.

All trades had to adhere to a good-neighbour policy, which included rules for times of work, parking vehicles in designated locations, keeping noise levels down, and respecting neighbouring property.

Barron wanted the immediate neighbours to be the first to see the showhomes before they were open to the public, so staff hand-delivered 75 invitations to an evening event. More than 150 showed up.

Here’s the thing – the majority of the 20 homes sold in the initial offering of 26 were purchased by North Delta residents, including some of those neighbouring homeowners who initially were concerned about the project. You can’t get a much better testimonial than that.

To get the banker’s view on the current market and determine how pre-construction condo projects were faring, I spoke with Barry Fenton, senior vice-president of the Citizens Bank.

Fenton said his bank has a $1-billion construction portfolio of 50 projects across Canada, and all are performing well. He said he is working with builders to facilitate successful completions of projects.

“Although there were some unforeseen construction delays, all the presales are closing and all construction loans are being repaid by builders as agreed or even before they are due. One Vancouver builder client actually completed his project ahead of schedule and under budget,” said Fenton.

Even municipal building officials are weighing in with positive statistics. John McKenzie, manager of the residential section for the City of Surrey said his department is experiencing an increase in permit applications for single-family homes, a sector that has been somewhat sluggish recently.

“Our January-to-June figures show we have received about 30 per cent more building applications for single-family dwellings this year than over the same period last year. The mid-year total for 2008 was 819 permit applications, compared to 615 for the first six months in 2007,” said McKenzie.

The last word on this subject belongs to Tom Peters, mentioned earlier in this column: “Real estate over stocks every time.”

I will be taking a little vacation from my Westcoast Homes column. Have a wonderful summer.

Peter Simpson is the chief executive officer of the Greater Vancouver Home Builders’ Association. E-mail: [email protected]

© The Vancouver Sun 2008