Archive for September, 2008

Real Estate Auction in the Sunshine Coast “Sakinaw Ridge” nets Developer David Milne less than he hoped

Friday, September 5th, 2008

Property auction nets less than hoped

Derrick Penner
Sun

Developer Dave Milne admits it was a gamble to auction off five building lots in his Sakinaw Ridge project on the Sunshine Coast.

And the prices those lots fetched were 20 per cent below list prices when they were put on the block Wednesday night by Ritchie Bros. Auctioneers.

Milne, however, said he is relatively happy with the outcome given slow sales in the area around Pender Harbour, where his project is located.

“We did [the auction] not just to sell properties, but as a market-awareness strategy,” Milne said of the sale. “And I think it worked really well.”

About 180 bidders participated in the sale between the live site at Richmond’s River Rock Casino, Ritchie Bros. office at Nisku, near Edmonton, and online.

Milne added that Ritchie Bros.’ marketing drew 20 to 30 of those bidders out to the Sakinaw Ridge site near Pender Harbour to view the properties.

Of the five lots, one 2.2-hectare lot sold for $145,000, a one-hectare ocean view lot sold for $230,000, another 1.42-hectare view lot sold for $230,000 and two oceanfront lots (one 0.66 hectares the other 0.67 hectares) sold for $470,000 each.

Three buyers got in on the action, with one grabbing both of the view lots, and the buyer who picked up the 2.2 hectare parcel also buying a waterfront lot.

“We didn’t get the prices that I’d prefer to get,” Milne said, “but people got a good buy, [and] that’s what auctions are all about.”

Sakinaw Ridge’s 28-lot first phase has been on the market for two years. Milne’s firm, BGD Holdings Ltd., sold 10 lots prior to the auction, but he said they hadn’t sold a single property since March.

The whole Sunshine Coast market has been slow, he added, with many other similar projects in the area around Pender Harbour competing for attention.

New Westminster-based recreational realtor Landquest Realty Corp. is marketing the remaining 13 lots, which are priced between $250,000 and $999,000.

© The Vancouver Sun 2008

 

Home buyers ‘sitting on their hands’ in buyers’ market

Friday, September 5th, 2008

Data firm finds lower sales, slower price gains, but ‘no panic’

Derrick Penner
Sun

It’s a buyer’s market in real estate around British Columbia, according to a new Landcor Data Corp. report, although company president Rudy Nielsen reckons buyers are just sitting on their hands for the time being.

Landcor tracked lower sales and slower price gains in most markets around the province to the end of June. The median prices of some home types dipped into negative territory from the first to the second quarter, Landcor found.

“I’m not an economist,” Nielsen said, “but it seems everybody is sitting right now on their money, sitting back to see what’s going to happen [with the market].”

Looking at the numbers, Nielsen said “the main thing we found in this report is there’s no panic [in the market].”

Landcor counted 64,268 property sales recorded by B.C.’s land-title registry office to the end of June, which was down just over 15 per cent from sales in the first half of 2007.

That counts more than the Multiple Listing Service sales figures, which are reported by real estate boards and tend to get wider circulation.

Landcor’s report, however, shows that sales in the second quarter — 36,612 — showed a steeper decline of 19.5-per-cent decline.

The median price tracked by Landcor across B.C. was $417,780 in the second quarter of 2008, compared with $414,794 in the first quarter, and $380,018 in the second quarter of 2007.

“To me, that’s a positive,” Nielsen said of the median sales figure, which indicates people haven’t lost a lot of equity in their properties.

There are areas, however, where those median prices — which reflect the point at which half of prices are above and half below — slipped between the first quarter and second quarter.

In the Fraser Valley, while median townhouse prices remained even from the first quarter to second quarter, and detached home prices advanced $5,000 between quarters, condominium prices slipped almost four per cent.

The median Fraser Valley condo price, $235,000 in the first quarter, declined to $226,000 in the second.

In Greater Vancouver, condominium apartment prices also slipped, but almost imperceptibly, from $336,500 in the first quarter to $336,000 in the second quarter.

In the Okanagan, Landcor found it was median townhouse prices that fell, by almost three per cent to $320,450 from the first to the second quarter.

“There is a lot of inventory on the market [in the region],” Nielsen said. “Buyers can pick and choose what they want.”

Nielsen added that the picture is the same on Vancouver Island, where the median condominium price slipped by 3.5 per cent to $275,000.

The Landcor report also showed that fewer out-of-province buyers were active in the B.C. market in the first half of the year.

Albertans, the biggest group of non-resident buyers, bought 1,320 B.C. properties in the first half of 2008, down 21 per cent from the first half of 2007.

Americans, although a much smaller buying group, showed a steeper decline. Americans bought 127 properties over the first half of 2008, a 40-per-cent drop.

U SAID

Vancouversun.com readers had a lively debate about the housing price story in Thursday’s Vancouver Sun. Here’s a sample:

Wait one more year and it will be more affordable to purchase a house in Greater Vancouver.

Not surprised one bit about the drop in sales.The majority of people out there are either single or divorced. They earn roughly an average salary of $60,000. Based on those numbers, the closest that they can come to purchasing a home is somewhere near the $350,000 mark unless they purchase together. So how is someone suppose to afford a home that is over $375,000 if the bank will only approve them for anything less than $350,000 based on a salary of $60,000 a year? If you want to see some real sales, start marking the houses down and stop gouging people. Better yet, stop whining that you can’t sell your house because you can’t find a buyer.

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The buyers are not from Canada. It’s still a bargain to buy in a safe, stable country like Canada. Until Canada stops allowing foreign investors to buy freehold it will be the same. New Zealand and Mexico have a “lease” of sorts to be able to own. The government needs to start taxing offshore investors.

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Property has had a fall and hopefully it will not continue to the same degree in the U.S. I am a property owner in Vancouver and do not wish to see the fall, but I wish people would stop with the “I told you so.”

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I told you so! I’ve been calling this downfall on forums and blogs since 2005 and wasn’t in a position to buy earlier than that, when it made more sense. Please don’t give us this hindsight is 20/20 garbage. The current value of your home is a vapour number based on distortions and misallocations in the economy and now it will drop down to reality.

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I guarantee prices will be at least 50-per-cent higher in 10 years. All the naysayers do is look at week-to-week or month-to-month statistics. All the people that do make money off real estate do not care about this stuff. I bought several units in downtown Vancouver two years ago, and they have gone up 50 per cent. Who cares if they go down 10 per cent?

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Wow, look at all the bitter people. It isn’t too hard to pick out the people who aren’t smart enough to invest in real estate or are just bitter at the people who ARE able to invest.

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The downward cycle is just beginning. The perfect storm is forming for a crash. Slowing economy, stubborn inflation, record inventory and slowing sales. Why would anyone buy now?

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Sell everything if you can! I’ve sold both my rental properties and am in the process of selling my main residence on acreage. If these prices fall drastically as expected, my mortgage would end up being greater then the value of my properties and I would go bankrupt. Now I’m going to try to buy back these assets cheaper.

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This is just the beginning of the down times. In two years, the prices will drop a minimum of 50 per cent or more, the economy is in really bad times, and it is 1930 all over again.

© The Vancouver Sun 2008

Be a Professional and Say No Once in a While

Thursday, September 4th, 2008

Jim Crawford
Other

Editor’s Note: Real estate columnist Jim Crawford (ABR) is a Sales Associate with RE/MAX Greater Atlanta in Roswell, Ga. He has been with the RE/MAX network since 1993 and is a 30-year real estate veteran who regularly writes for Realty Times.

Many brokers are of the false assumption that listings are where the money is made. The saying goes, “Those that list, rule the market!”

After all, listings build a company’s reputation and provide the calling card to success.

Listing signs make the phone ring, generate leads and build the company’s market share through solid name recognition. You must ask yourself if that’s still true when we’re in a market where listings are on the market for months and years instead of days?

We must step back and ask: Are all listings productive in a positive sense, or are they a drain on your resources?

Times have changed. Where agents once boasted their production was from their sphere of influence, they now have to acknowledge unsold listings can work against you. Unhappy campers may cause more ill will by spreading the word that you and your company are ineffective. If that happens, that doesn’t bode well for future business.

Impatient sellers can soon become a liability if they start calling everyday, irate that they’re not happy campers. If they start bad mouthing your services to the neighbors, your career is over.

Please keep in mind that a “For Sale” sign on an unsold home for over a year isn’t a positive marketing image. Some may view those real estate signs with sarcastic humor.

Luckily for all of us, there’s a way to avoid this. Successful agents have known the solution for a long time: List homes selectively. That’s right! Your way or the highway! Instead of listing everything at any price, be a professional and say “no” once in a while.

This may entail going on 10 listing appointments, but only taking two listings that will sell. The reason for this is simple: This market is not a market for tire-kickers that just want to see if they can hit a price point.

That means you only list homes owned by determined and motivated sellers. The next part of the equation is to list only updated, clean homes that are in good condition. The homes you list need to have great curb appeal and be priced competitively to market.

I call these homes market-ready listings. Only when all the work is complete do they go on the market. My real estate career dictates there are no exceptions to this rule.

The last component of this strategy is research. Luck isn’t a plan for success in real estate. Before you list, know what will sell, and your odds of selling. Ask yourself if you want to take the listing. There’s no point to list $10 million homes if only one has sold in the last two years.

Know your local real estate market inside and out. There’s a reason why some agents are big producers and others are wannabees. Big producers understand the laws of supply and demand, and they strategize. In simple terms, we must fully comprehend what’s hot, and what’s not. We must have a litany of questions answered before we say, “Sure, I can list your home.”

Some questions to ask:

  • What price ranges are most active? Why?
  • What products are in demand – single-family homes, condos, town homes, etc.?
  • How many months or years are listings staying on the market?
  • Are sales increasing or decreasing?
  • Are homes appraising?
  • Are prices stable or falling?
  • Are sellers contributing to buyers’ closing costs? If so, how much?
  • What’s the average original list price to sales price ratios?
  • What are the sellers realistically going to net from the sale?
  • What time frame will it take to sell a home?

If you know your market, you’ll be in a great position to work with serious and motivated sellers who’ll immediately sense that you’re different from other agents. They’ll work with you after you’ve briefed them on your market assessment.

Substantiate your presentation with facts. You still have to be realistic with the sellers – and yourself. It may take a while, but you’ll attain your goal. These sellers will become your best advocate for future business and referrals. Otherwise, you’re just wasting your time, reputation and resources.

Home & Apartment Security – How Safe are you?

Thursday, September 4th, 2008

How secure is your apartment?

Sun

Installing a peephole in your entrance door is a good security measure.

Putting a note on your door saying you are away is an open invitation to a burglar.

Most apartment and condominium buildings are secure and safe. However, you should be aware of, and periodically review, the security and safety of your apartment and apartment building.

In rental buildings, the building owner and management are responsible for security. In condominiums, suite security is typically an owner concern and the condominium corporation is responsible for common areas – including exterior doors and windows and corridor doors to individual apartments. Your best defense is to know about and use the security and safety features in your building and surrounding spaces. Be alert and prevent dangerous situations before they occur.

This About Your Apartment article from CMHC highlights the types of security and safety features you may have in your building and how to use them effectively. It deals with personal security; discouraging theft and trespassing; preventing falls from windows and balconies and combustion safety.

Whether you own or rent your apartment, you can make it more safe and secure for you and your family. If, after reading this About Your Apartment, you realize that your apartment or building has security or safety issues, discuss them with your building management or condominium corporation. Remember, an ounce of prevention is worth a pound of cure.

Various methods are used to keep apartments and apartment buildings secure from trespassing, theft and vandalism. Security devices, such as deadbolt locks on doors, window locks, controlled-access entrances and well-lit common spaces all contribute to a secure building. Familiarize yourself with your building and apartment’s security measures. The following sections discuss typical apartment building security features.

APARTMENT-CORRIDOR DOORS

Your apartment door should have a good deadbolt lock. One feature to look for is lock throw – the length the locking bolt protrudes from the door into the surrounding doorframe when placed in the full lock position. Test this by locking the door while it is open – a good deadbolt lock protrudes 35 mm (1 1_2 in.) or more when fully extended. A strong deadbolt lock also has a jimmy-proof strike plate (the part of the lock assembly mounted in the door frame to receive the bolt). The strike plate should be secured to the door framing by screws at least 50-75 mm (2-3 in.) long. This ensures the strike plate is fastened to the structure of the wall and not just the doorframe.

Locks only work if you use them. Remember to lock your apartment even when you step out for a moment to check the mail. In fact, it is a good safety habit to keep the door locked at all times – even while you are in the apartment. Chain-type locks, which are easy to break, offer very little resistance to forced entry.

Install a door viewer (peephole) in your entrance door, if you do not already have one. If you have children, consider installing a peephole at their level.

BALCONY DOORS

Intrusion is not just a ground floor or corridor door threat. Always lock balcony doors when you are away from home. Equip balcony doors with the same type of deadbolt locks recommended for corridor doors. There is special hardware to secure sliding balcony doors but a simple, effective, inexpensive solution is a sturdy piece of wood in the door’s track to prevent the sliding door from opening. Make sure the sliding part of the door can’t be lifted from its track.

Items on the balcony are also vulnerable to theft. If thieves see valuables on a balcony – such as bicycles – they will climb a ladder to steal them. Conceal and secure items you cannot store inside. Lock bicycles.

WINDOWS

Make sure all windows close fully, that the locking hardware is in good condition and that it is easy to lock the window when you shut it. Ensure that a thief cannot lift a horizontal window out of its track. Even on upper floors, a thief can get into your apartment through an open window overlooking a balcony.

STORAGE ROOM

If you have a separate locker or storage room, store items out of reach and up off the floor. Cover them. Often, locker walls are chain-link fencing or wood slats. This means anyone can see what is in your locker and that your belongings are exposed to spills or floods. Also, ensure that door hinges and screws of the locking system are covered when the access door is locked. This will prevent a thief from getting into the locker by unscrewing the hasp or hinges.

BUILDING ENTRY SYSTEM

The front door entry system of most apartment buildings allows a resident to remotely let guests into the building. These systems are only effective if the front door locking system functions and intruders cannot take advantage of an open door to enter the building.

When you activate the front door entry system, make sure you know who is asking to come in and remind them to close the door behind them. If you have young children or children visit often, ensure they know how to correctly operate the remote entry system. Would-be intruders will sometimes buzz different apartments until someone lets them in. Always be sure that you know the person before you let them into the apartment building. If you are unsure, notify the building management of the entry request so they can handle it.

ELEVATOR SECURITY

– Look and see who is in the elevator before entering. If you feel uncomfortable, do not enter the elevator, wait for the next one.

– Stand beside the control panel in the elevator and know how to use the emergency alarm button.

– If a suspicious person enters the elevator, leave before the door closes.

PARKING GARAGE SECURITY

– If possible, use the parking garage during periods of high use when others are around.

– Watch for suspicious persons as you enter the parking garage. Drive back out if you are concerned.

– Park near exit doors or the elevator foyer, if possible.

– Park in well-lit areas.

– Walk in the centre of the garage.

– Ask building management to install security cameras and alarm stations if the garage has a history of theft or security problems.

BUILDING SECURITY

Tell your building management if you have problems with closing or locking windows and doors. Report burned-out and broken lights in common areas, such as corridors, stairwells, garbage rooms, laundry areas, parking garages and outdoor areas. If your building is equipped with security cameras or alarm stations, make sure you know where they are and how to use them in emergencies. Report any suspicious or unfamiliar people loitering inside or outside the building to the building management.

NEIGHBOURHOOD SECURITY

The safety of your neighbourhood has an effect on your building’s security. To find out if your building and neighbourhood are safe, contact your local police department at its non-emergency number. Many police departments have web sites with information about criminal incidents. Police departments will review your building’s security. Get involved with a neighbourhood watch-type program or start one yourself – it is good protection and helps builds a sense of community. Sometimes, if conditions warrant, it may be necessary to hire a security company.

SECURITY RESPONSIBILITY

The landlord or the condominium corporation (often through a property manager) is usually responsible for building security. Typically this involves:

– ensuring that security systems meet or exceed security requirements for apartment buildings, such as deadbolt locks on doors, good lighting and window locks;

ensuring that security systems provide reasonable protection for all residents – in their apartments and in common areas, such as parking garages and elevators;

– conducting regular inspections to spot and fix security problems, such as broken locks or burned-out exterior lights, and asking residents to submit security concerns or suggestions as part of continuing maintenance;

PERSONAL SECURITY

Personal security is largely a matter of continuing awareness of your surroundings, and reducing risks. As you approach your building, if something does not ‘feel’ right, do not enter; go to another entrance or exit or get help from the building management or the police. If possible, schedule your arrivals and departures with other residents. Park your car in well-lit areas as close as possible to building entrances.

Do not leave messages on your phone saying you are away or on vacation. Tell a trustworthy neighbour when you plan to be away and ask the neighbour to pick up mail and flyers. Cancel newspaper subscriptions and consider using lights (energy efficient compact fluorescents are best as they consume the least electricity) and a radio on timers to make it look, and sound, as if someone is at home. Do not put a note on your door saying you are away. Cover the window in your mailbox (if there is one) to avoid drawing attention to an accumulation of mail.

Police, insurance companies and private security professionals can advise you or your landlord on ways to make your apartment building more secure.

YOU CAN DO YOUR PART TO KEEP THE APARTMENT BUILDING SECURE:

– Report any security concerns or problems to the building manager or landlord.

– Do not disable security features. Safety latches on windows keep intruders out – and children in.

– Do not prop exit doors open. These doors are designed to stay closed for security and fire safety.

– Do not hold the door for a stranger to enter. Be wary of strangers who linger around the front door and dash to hold the door open after it has been unlocked.

– Do not give your apartment keys or pass cards to strangers or tell strangers the access codes to the building.

– Tell building management and security personnel when you are planning to have work done on your apartment. Do not let anyone in to work in your apartment unless you, the landlord or the building manager has previously arranged for the work. Be wary of “security personnel” who knock unannounced.

– If you live near the ground and you like to open your windows, make sure the windows do not open wide enough to let someone through. Use a window safety device (see “Preventing Falls from Windows and Balconies.”) You can also restrict a window opening with a removable nail or by placing a shortened broomstick in the track. Modifying the window itself, however, may void its warranty.

– If you or a family member has a disability, ensure that security features, such as locks on windows and doors, peepholes and security cameras, accommodate your needs.

HOW SAFE IS YOUR APARTMENT?

Safe and secure living is more than just locks and security features. Fire, falls and everyday household items and activities can affect your safety. Be aware and prepared and you can significantly reduce the safety risks in both your apartment and your building.

PREVENTING FALL FROM WINDOWS AND BALCONIES

Falls are one of the leading causes of injury and death among children. Children are often tempted to climb up to apartment windows and balcony guardrails to get a better view. In such instances, a fall can happen in a matter of seconds. Never leave children unattended on a balcony or near an open window.

Many municipalities require apartment windows to have mechanical safety devices to prevent them from opening more than 10 cm (4 in.). These safety devices protect children. If you remove or disable them, you can endanger the life of a child who lives with you or visits your apartment. Make sure that your windows have mechanical safety devices and that they work properly.

PREVENTING FALLS CHECKLIST

– Ensure all windows more than 2 m (6 ft.) above the ground have safety devices.

– Make sure everyone in your apartment (including children) knows that window screens cannot prevent a fall.

– Keep cribs, beds, chairs and any furniture a child can climb away from all windows.

– Lock doors to balconies with a childproof lock.

– Keep chairs and anything else a child can climb away from balcony railings.

– Do not store items children can move and climb on balconies.

– Always supervise a child on a balcony. Never leave a child unattended on a balcony – even for a moment.

PREVENTING FALLS ELSEWHERE:

Windows and balconies are not the only fall hazards in an apartment building. Poorly lit stairwells, slippery or uneven entry steps, slippery lobby floors, clutter on apartment floors and wet bathroom floors are also falling hazards, especially for older people. To prevent falls in your apartment:

– Keep your floors free of clutter and clean up spills immediately.

– Don’t use throw rugs or scatter rugs on hard surfaces. If you have them, use a slip-resistant underlay. Use night-lights in hallways, particularly between the bedroom and bathroom.

– In the bathroom, use non-slip mats in and beside the tub and, if needed, install grab bars and use a bath stool or bench.

– Use a proper stepstool or short ladder to reach upper cabinets, change light bulbs and so on. The stepstool should have a handle and rubber-tipped feet to prevent slipping.

– Store heavy items on lower shelves and often-used items within easy arm’s reach to reduce the need to use a stepstool.

IN THE COMMON AREAS OF YOUR APARTMENT BUILDING, BE AWARE OF:

floor coverings that become slippery when wet, such as marble floors in lobbies;

poorly lit stairwells and entrances. Stairs and entranceways should be well lit from above with a light switch at the top and bottom of the steps or an automatic switch;

– If you notice hazards or unsafe conditions in or around your building, tell your building manager or landlord.

COMBUSTION SAFETY

Some apartments have natural-gas furnaces, hot water tanks and fireplaces. These appliances burn fuel to produce heat. The burning produces dangerous gases that must be vented outdoors – usually through a chimney or a sidewall vent that looks like a plastic pipe or metal duct. If the combustion gases are not vented properly, it creates a serious health hazard in your apartment.

TO PREVENT PROBLEMS FROM FUEL-FIRED APPLIANCES IN YOUR UNIT:

– ensure the appliances and venting systems are serviced annually;

never place items on or around fuel-fired appliances if the items could disrupt air flow to or around the appliance;

never block outdoor air ducts that provide combustion air to the appliances;

– operate the exhaust hood over a gas-fired stove range when you cook;

never fully or partially obstruct chimneys or vents on the outside walls of your apartment;

– report any problems with your appliances to the building management (if you rent) or to a contractor (if you own the condominium and the equipment);

© The Vancouver Sun 2008

 

Virus protection crucial to prevent intrusions

Thursday, September 4th, 2008

Steve Makris
Sun

Laptops are an easy target, both from thieves operating nearby and others on the Internet. Portable cable locks can protect you from computer theft, and software tracking devices can be purchased that broadcast their presence on the Internet the first time a stolen computer goes online.

Any computer you buy today should include virus protection and, for younger users, parental controls. Windows Vista and Mac OS X Leopard include parental controls for limiting the time, specific Internet access and activities on computers. It’s also smart to place the family home computer in a public area where parents can oversee a child’s digital activity.

Virus protection is a must. Bruce Cowper, Microsoft Canada Chief Security Advisor, warns that today’s massive social networking activity — there are 700,000 Facebook users in Calgary and more than two million in Toronto — brings certain risks.

where phishing [luring unsuspected users to a fake Internet site] is becoming more common on social networking sites than traditional e-mail,” he said. “There is an implied trust when you log in your social networking site that everything will be fine. That’s not the case anymore.”

Cowper said antivirus, phishing and spam software from McAfee, Symantec or Microsoft’s subscription-based Windows Live OneCare, constantly monitor and compare background online activity for possible malicious intrusions.

“Even the most careful and seasoned computer users can’t do without proper antivirus software,” said Cowper.

© The Vancouver Sun 2008

 

Buyers see hope as home prices decline

Thursday, September 4th, 2008

August saw property markets continue dramatic turn

Derrick Penner
Sun

Heidi Samuda realizes she needs to stay realistic about selling her west-side townhouse in a declining market. Photograph by : Ian Lindsay, Vancouver Sun

The turn of the Lower Mainland real estate market’s cycle has been more dramatic than expected, with real estate boards reporting another drop in sales and slide in prices at the end of August.

In Greater Vancouver, August Multiple Listing Service sales were down almost 54 per cent to 1,568 units, compared with 3,348 units in the same month a year ago.

So-called benchmark prices across Greater Vancouver in August, while still up from 2007, continued their slide from May.

The typical Metro Vancouver detached home sold for $737,985 in August, down 4.3 per cent from May. The typical apartment, at $374,366, was down 3.9 per cent. The typical townhouse, at $463,433, was down 3.2 per cent.

Sales in the Fraser Valley market dropped 48 per cent in August to 910 units, compared with 1,763 units in the same month a year ago.

The average detached home price, the Fraser Valley board said, has fluctuated on a downward trend since about March to hit $541,795, down 1.5 per cent since then.

Urban economist Tsur Somerville said there are a lot of signs that suggest Vancouver markets are out of equilibrium and the boom market would reach an end, but many observers, including himself, have been surprised at how quickly sales have contracted.

“This summer, sales went off a cliff,” added Somerville, who is director of the centre for urban economics and real estate at the Sauder School of Business at the University of B.C.

Somerville added that prices reflect more than just the balance of supply and demand, in which buyers currently have the advantage: They also reflect the expectations of buyers.

“Clearly buyers are certainly changing their expectations around the price at which they’re willing to buy,” Somerville said.

In some markets that shift has been bigger than in others. Port Moody’s benchmark price for a detached home, at $725,020, was down almost 11 per cent from August a year ago. In Pitt Meadows, the August benchmark of $461,096 was 8.1 per cent below August 2007.

Growth in the inventory of unsold properties that spiked through the spring and summer stalled in August.

The Real Estate Board of Greater Vancouver reported 4,331 new listings in August, 1.7 per cent below the number of homes put on the market in August 2007. Total inventory of 17,950 is down 6.2 per cent from July.

The inventory decline, Somerville added, is to be expected since “at some point when people aren’t selling [their homes], they stop trying to sell them.”

Listings in the Fraser Valley also dipped in August to 11,770 units, compared with the record 12,299 units in July.

Robyn Adamache, a market analyst with Canada Mortgage and Housing Corp., added that the levelling in inventory might be a positive sign that the market is levelling off.

Adamache said that job growth and population growth through migration, which support the housing market, are still in positive territory, so “the magnitude of the changes are a little bit more than was expected.”

David Watt, president of the Real Estate Board of Greater Vancouver, said he believes the market simply reached a ceiling.

“I think it was not a willingness to pay more,” Watt said. “We hit a level where buyers simply could not. They weren’t able to borrow more money or whatever. That’s a real, true market taking care of itself.”

Watt added that the number of sales reflects levels similar to those seen in Metro Vancouver through the late 1990s.

So far, the shift in Vancouver‘s markets has not worried Heidi Samuda, a west-side interior designer, who listed her Arbutus Village townhouse for $829,000 three weeks ago.

“I’ve had some pretty good responses,” Samuda said, though she understands sellers have to be realistic about the prices they are asking.

Samuda added that she has bought and sold several times, and has managed to get the price she has wanted, even in markets turning down.

“It was just a matter of wait and see and the right buyer will walk through the door,” she said. “I think one has to hold firm to that, obviously within reason.”

If the discussions she and her realtor have been having with potential buyers don’t pan out, “then we’ll have to adjust,” she conceded.

Samuda’s agent, Lorne Goldman with Macdonald Realtors Lorne Goldman Ltd., said houses are selling, but the market has become “extremely competitive.”

“It’s no different than markets we’ve seen in the past in Vancouver,” he added. “It’s a market where 50 per cent of the people are extremely happy: Buyers.”

© The Vancouver Sun 2008

 

A culinary foreign policy

Thursday, September 4th, 2008

The best lunch I’ve had . . . go ahead, just ask Peter Lorre!

Mark Laba
Province

At Robbie Kane’s Café Medina, they do what they do with aplomb and exquisite flavour.

CAFE MEDINA

Where: 556 Beatty St., Vancouver

Payment/reservations: Major credit cards, 604-879-3114

Drinks: Coffee and tea.

Hours: Tues.-Fri., 8 a.m.-5 p.m. (lunch served until 3 p.m.); Sat.-Sun., 9 a.m.-4 p.m. (brunch served until 3 p.m.); closed Mon.

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Europe is famed for its cafes, especially those of the Parisian persuasion. You know those places where, once they’ve glommed onto the fact that you’re a tourist (easy to do when you’re wearing a fanny pack the size of France), they charge you thirty bucks for a coffee that comes in a doll house-size cup and pop open a Pillsbury Croissant tube in the back (or, as its known in France, Le Dough Boy Amis avec Sodium Benzoate). That is after you’ve tracked down a waiter, which could take days, sometimes weeks. You could spend your entire European vacation sitting in a café waiting for service. If you want your bill, that takes another month.

Now many places in Vancouver have attempted to emulate the European café traditions, minus the attitude, without giving up the quirky personality traits and atmosphere that just doesn’t grow on North American trees no matter how many you cut down to furnish the place. But along comes this eatery, care of the same folks who brought you Chambar. Like Chambar, it mixes the best of European tradition with inflections of North African and Middle Eastern sensibilities. Walking in I could imagine bumping into Peter Lorre and Sidney Greenstreet mulling it over in a corner plotting to get their hands on the Maltese Falcon.

Aged brick and wood rise to lofty heights, steel bistro-style chairs and a long nifty banquette seat bordered along the top with antiquated gold-flecked mirror for grounding, some spiffy and eclectic artwork hanging that evokes both times gone by and modern living and a clock over the coffee bar that looks old enough to have been checked by Napoleon before he set off for Waterloo.

The menu is not big and it’s only a breakfast and lunch shindig, along with their great Belgian waffles, but what they do they do with aplomb and exquisite flavour. In fact, it’s the best lunch I’ve had since I came out of my Hostess Ho Ho coma and wolfed down three-day-old cold Chinese food.

I tried the Les Boulettes ($13), spicy Moroccan meatballs lolling in a kind of ragout of roasted veggies and tomatoes with a dollop of yogurt in the centre, and a hummus-and-cucumber salad riding sidecar. It arrived with all the pomp and circumstance a Moroccan meatball deserves — that is beneath the funnel-shaped top of a tagine dish. The flavours were transporting with all the rich textures and aromas of an Arabic marketplace — like taking the taste buds on a magic carpet ride.

Peaches zeroed in on the Fricasse ($15), consisting of two fried eggs atop braised short ribs with roasted potatoes, caramelized onions, arugula and smoked apple-wood cheddar. I, of course, took liberal stabs at her food, too. It’s all seemingly simple on the surface but you can’t judge a short rib by its egg cover. Together with the globs of melted cheddar, tubers for texture and onions cooked to sweetness, this dish was phenomenal.

Food as haunting as the Muezzin’s call, this place begs for a return visit to try the flat bread-wrapped merguez sausage with baba ganoush, haloumi cheese, grilled eggplant and tabbouleh or the curry roasted chicken with orzo rice, cherry tomatoes and veggies. All in all a great mix of European charm with North African and Middle Eastern exoticness, without the alarm of being a stranger in a strange land.

© The Vancouver Province 2008

 

Damper on home sales as economy cools off

Thursday, September 4th, 2008

Prices crash in sharper August slowdown

Paul Luke
Province

A cooling economy combined with the summer doldrums to hammer real-estate activity across the Lower Mainland last month.

Residential property sales in Greater Vancouver plummeted 53.7 per cent to 1,568 in August from 3,384 the same month a year earlier, the Real Estate Board of Greater Vancouver said yesterday.

And the Fraser Valley Real Estate Board reported a 48-per-cent drop in sales last month to 910 from 1,763 in the same month in 2007.

In Greater Vancouver, detached homes plunged 58.5 per cent to 535 in August from 1,288 in the same month in 2007, the Greater Vancouver board said.

Year-over-year condo sales swooned 50.8 per cent to 740, while townhouse sales dropped 50.5 per cent to 293.

August is typically the slowest month of the year in real estate but this year’s slowdown was much more dramatic.

Greater Vancouver board president Dave Watt said properties, on average, stayed on the market longer last month than the board has seen in recent years.

“As the market heads into the traditionally more active fall season, we have begun to see property listings recede and prices moderate,” Watt said.

The benchmark price for a detached home in Greater Vancouver has fallen 4.3 per cent since May to $737,985 but is up 1.6 per cent from August 2007.

The benchmark price for a condo in Greater Vancouver fell 3.9 per cent to $374,366 from May to August.

Active listings in the Fraser Valley soared 51 per cent to 11,770 in August from the same month last year. But that number was four per cent lower than the record 12,299 listings notched in July.

The average price of detached homes in the Fraser Valley has posted a six-month decline of 1.5 per cent but, at $541,795, is up 2.8 per cent from a year earlier, the board said.

The average price of Fraser Valley townhomes climbed 0.3 per cent to $321,955 in August from the same month last year.

Fraser Valley board president Kelvin Neufeld said the typical summer-market slumber and consumer caution have resulted in the best buying conditions in the valley in more than a decade.

“Selection is at record levels,” Neufeld said. “Interest rates remain competitive while prices have moderated.”

B.C.’s economic growth will slow to less than two per cent this year and next, according to a revised forecast released last week by Central 1 Credit Union.

That performance will be the economy’s weakest since 2001, Central 1 said.

“Residential-housing activity is declining this year and will drop more noticeably in 2009 and again to a much lesser extent in 2010,” Central 1 said.

“For this cycle, the high points for housing sales and prices have been reached and the downturn in new construction will last to 2010.

“After that, housing starts will begin a modest upturn.”

© The Vancouver Province 2008

 

Google goes browsing with shiny, new Chrome

Wednesday, September 3rd, 2008

New interface will go head-on with Microsoft

Decline in home sales hits economic growth

Wednesday, September 3rd, 2008

Derrick Penner
Sun

Slowing British Columbia real estate sales are shaving a slice off a sizable chunk of the provincial economy.

The B.C. Real Estate Association released a report on Tuesday estimating that the 102,000 homes sold through the Multiple Listing Service in 2007 accounted for almost $2 billion in value for the provincial economy, and supported some 28,000 jobs.

Each sale transaction, the report estimated, triggered $27,751 in spending from real-estate commissions, renovations, legal fees, moving costs and taxes.

However, with 2008 real estate sales 24 per cent below 2007 levels, logic suggests the drop in activity is denting that economic impact.

Cameron Muir, the B.C. Real Estate Association’s chief economist, said it is difficult to extrapolate how much of a dent the decreased activity is creating.

“Common sense would dictate that there is an impact to the economy,” Muir said in an interview, “[that] this money isn’t being spent because [there are] fewer home sales.”

The B.C. Real Estate Association for 2007 estimated that every 100 MLS home sales generated $2 million for the economy and supported 28 full-time jobs.

Muir added that it is difficult to say categorically that every 100 fewer sales in 2008 will pull the equivalent amount out of the economy. He said the estimate cannot account for consumer decisions to spend money they would have poured into a real-estate purchase in other ways.

However, the waning of sales in B.C.’s real estate sector was a big factor in Central 1 Credit Union’s (formerly Credit Union Central B.C.) decision to downgrade its forecast for provincial growth.

“More or less, those [economic] multipliers work both forward and backwards,” Central 1 economist David Hobden said in an interview, referring to the B.C. Real Estate Association estimates.

A drop in real estate sales means fewer commissions paid to realtors, and commissions generated the biggest spin-off — $13,049 per transaction on average — from the $27,751 that a typical transaction generates.

“If sales are off substantially this year or next, then commission income is way down, there is less employment in the sales aspect,” Hobden added, which will trickle down into less consumer spending and investment activity.

Fewer sales would also be translated in less finance and insurance activity, lower expenditures on home furnishings that usually accompany sales, and less tax revenue collected both from the lower level of property transfers and income taxes paid by participants in all these areas, Hobden said.

Hobden added that upturns and downturns in housing markets have an even bigger impact on economic growth.

“When [the housing market] is booming, it’s really going great guns,” Hobden said, and when it slows, it tends to drop off by significant amounts.

Combine that with the fact that housing is a relatively large piece of the economy, “makes [its] contribution to growth amplified.”

Central 1 Credit union, in its latest forecast, reduced its expectation for economic growth in B.C. to 1.5 per cent this year and 1.8 next year, compared with 3.1 per cent in 2007.

The figures for spending on real-estate transactions came from the Statistics Canada’s survey on household expenses, which Muir said BCREA updated to reflect 2007 levels.

Muir then commissioned B.C. Statistics to run that figure through its B.C. input-output model to calculate a total impact on the B.C. economy.

© The Vancouver Sun 2008