Derrick Penner
Sun

Realtors recorded 24,626 Multiple-Listing-Service sales during 2008, down substantially from more than 38,000 in all of 2007. Photograph by : Steve Bosch

Lower Mainland real estate markets got off to a roaring start in 2008, but faltered after buyers were caught in the growing economic malaise and took a step back.

In Metro Vancouver, real estate sales fell by 35 per cent in 2008 to 24,626, units compared with 38,000 the previous year, the Real Estate Board of Greater Vancouver reported Monday, putting sales at their lowest level since 2000, according to Canada Mortgage and Housing Corp. records.

The so-called benchmark price for a typical home within Metro Vancouver fell by almost 15 per cent from its peak, hitting $484,211 in December, down from $568,411 in May.

Robyn Adamache, an analyst for Canada Mortgage and Housing, added that Metro Vancouver’s inventory of unsold homes at the end of 2008 stood at a 12-month supply, its highest level since about 1985.

In the Fraser Valley, 2008 sales dropped 30 per cent to 13,194 units compared with 18,862 in 2007.

The so-called benchmark price of a typical detached house in the Fraser Valley fell almost 10 per cent from May to hit $496,391.

Tsur Somerville, director of the centre for urban economics and real estate at the Sauder School of Business at the University of B.C., said the sales figures reflect that “the downturn didn’t get really serious until midway through the year.”

Following a longer-than-average seven-year upswing, prices hit their peak in the first half of the year, Somerville said. Then the market ran into the global credit crisis and economic decline that delivered a wallop to consumer confidence.

“This is not a situation where low interest rates are going to solve the problem,” Somerville said in an interview. “This is a situation where people have to feel better about the economy. We’re waiting for the economy to get better before anything [in real estate markets] really improves”

Adamache said B.C. has done better than other provinces, including Ontario, “so it just comes down to the uncertainty affecting people’s [decision-making].”

However, Somerville said there is a wait-and-see element to just how badly the provincial economy might be stung by a downturn in the commodity sector that took hold near the end of the year.

He said B.C. housing prices did overshoot their equilibrium more than those in other markets such as Ontario.

“What we gain by perhaps not having as hard an economic hit as other areas of Canada we lose because we were more out of line in terms of our underlying housing market [being] more overvalued than places like Toronto,” Somerville said.

Dave Watt, president of the Real Estate Board of Greater Vancouver, said in a news release that “lower prices haven’t been a concern [for buyers] as much as the perception that prices are falling.”

“It’s difficult to identify the bottom of the market,” Watt said. “The reality is that people tend to buy when prices are going up, not when they’re going down.”

Greater Vancouver capped off 2008 with 924 MLS sales in December, which was a 51-per-cent decline from the same month in 2007.

However, those 924 sales represented an increase from 874 transactions recorded in November, the first time in 27 years that December sales beat November.

Kelvin Neufeld, president of the Fraser Valley Real Estate Board, said realtors in the valley also saw December sales surpass November’s, perhaps signaling “buyers recognize the current advantages of price reductions.”

However, Somerville said that while the decline in sales in the region may stabilize over the first part of the year, people shouldn’t expect “anything good to happen” before the start of summer.

“We’re in a place where any [economic] surprises are going to be bad surprises,” Somerville said, “they’re not going to be good surprises.”

© Copyright (c) The Vancouver Sun

Andy Ivens
Province

Detached homes on Prior Street have the ‘for sale’ signs hanging out. Housing prices have dropped 11 per cent recently, but bargains are being ignored. Photograph by : Ric Ernst

It’s a buyers’ market for real estate in the Lower Mainland, but there are fewer buyers.

With global doom and gloom eroding consumer confidence, 2008 saw a decline in the average cost of housing of about 11 per cent — 14.8 per cent from May to December — the Real Estate Board of Greater Vancouver said in its year-end report.

But instead of snapping up the bargains, homeowners are waiting for the market to bottom out.

Sales of detached houses, townhouses and apartments decreased 35.3 per cent in 2008 to 24,626 sales compared to 38,050 sales in 2007, said the report.

The trend spells an end to the record-breaking real-estate market cycle in Greater Vancouver that saw a longer-than-normal rise in prices for seven consecutive years.

Since May 2008, the overall residential benchmark price has declined 14.8 per cent in Greater Vancouver to $484,211 from $568,411.

“For buyers, lower prices haven’t been a concern as much as the perception that prices are falling,” REBGV president Dave Watt said in a press release.

“It’s difficult to identify the bottom of the market.

“The reality is that people tend to buy when prices are going up, not when they’re going down.

“Trends in the latter half of 2008 showed a consistent month-over-month decrease in residential housing prices, a departure from the rising home prices and record-breaking sales that were experienced in Greater Vancouver for much of this decade.

“It’s also important to note that our December statistics show a third consecutive month of a decrease in active property listings in Greater Vancouver.

“That means supply is coming down,” Watt said.

“Last month was also the first time in 27 years that Greater Vancouver homes sales for December were higher than November.”

Those hoping to get into the Lower Mainland housing market have watched with dismay for the past seven years while the average for a single family detached home rose from $357,770 in December 2001 to $730,399 in December 2007.

It’s down to $648,421 in December 2008.

Overall, sales of detached, attached and apartment properties decreased 35.3 per cent in 2008 to 24,626 sales compared to 38,050 sales in 2007, said the report.

The REBGV represents realtors in South Delta, every municipality north of the Fraser River west of Mission and north to Whistler.

The story is much the same for housing prices in the rest of the Valley.

“Sales of all property types for [2008] declined 30 per cent in the Fraser Valley,” according to a report from the Fraser Valley Real Estate Board, which takes in North Delta, Surrey, White Rock, Langley, Abbotsford and Mission.

Residential benchmark prices for a typical Fraser Valley detached home decreased 6.5 per cent from $496,391 in December 2007, compared to $464,189 last month, the FVREB said in a press release.

“That price has decreased 9.7 per cent since May 2008 when it was $513,798,” said the release.

© Copyright (c) The Province

2008 brought improved housing affordability to Greater Vancouver

Other

James Schouw prefers a low profile

KIM PEMBERTON
Sun

James Schouw prefers to get involved in every aspect of his developments. He is shown in the hallway of one of the suites of Grace condominium at Richards and Drake. The project has a fingerprint recognition security system. ‘It’s important for me to be involved throughout the process . . . because it is my own home,’ he says. — PHOTOS BY JOERN ROHDE

The living room of a 16th-floor suite at Grace. The high-density drywall on both sides of the suite virtually eliminates noise carrying over from the neighbours. — PHOTOS BY MARK VAN MANEN/ VANCOUVER SUN

The ensuite pairs an old-fashioned slaw foot tub with a contemporary frameless glass shower

The Grace is the first North American condominium with a fingerprint recognition security system.

The breakfast nook in the kitchen of a sixth-floor suite.

Developer James Schouw says a wide-open 2,000 square-foot studio apartment is his ideal.

Developers and builders of new-home projects typically pull out all the s t o p s to move t h e i r products, with artfully done up sales centres and brochures and print advertising campaigns to get media and buyer attention for their projects.

Not so with 42-year-old developer James Schouw — a Westcoast Homes unknown despite working as a developer for the past seven years in Vancouver’s Yaletown neighbourhood.

Schouw has always sold his apartments by word of mouth.

But with two homes in a 71-residence development, at Richards and Drake, unsold, the doors were finally opened to The Vancouver Sun to see exactly what this young developer has been offering his high-end customers.

Behind the massive wrought iron gates, past the fingerprint recognition security — believed to be the first of its kind in a North American multi-residence building — and into the inner sanctum of Grace the answer is quickly apparent: These are unique homes for the very wealthy which offer voluminous space, light and a high level of craftsmanship.

These are undeniably dream homes and they were conceived by Schouw, who prides himself in being involved in every aspect of the project from the design conception to final construction. So who is Schouw? His first-ever media release describes him as “ an artist, green-minded builder, philanthropist and community visionary.”

Born in Winnipeg to an artist mother and architect father, Schouw grew up appreciating both occupational paths of his parents. His life now reflects both of their influences by creating buildings that are artistic residential landmarks for the city.

“My motivation when I got into multi-family residences was creating exclusive, character-specific custom homes that would have the same feel and amenities as a ( detached) custom home,” says Schouw, who lives in Grace with his girlfriend and three dogs — a golden retriever, a cocker spaniel and a pomeranian.

“It’s important for me to be involved throughout the process and to see what I’m building because it is my own home.”

Before moving into his two bedroom, he lived at the nearby Iliad. With only 11 suites and known locally as the “gargoyle building,’’ Illiad Schouw’s his first multi-family residence for Vancouver.

Plans are already under way for his company to build two more buildings in Yaletown. No doubt they too will stand out in dramatic contrast to the glass towers one typically sees in downtown Vancouver.

The last two suites available at Grace, a 3 0 – storey tower in Yaletown, offer city views and a rare opportunity to own in this unique multi-family residence.

The 71-unit condo has sold entirely by word of mouth, with only two suites remaining in the second and final phase.

They are a sixth-floor suite for $1.849 million and a 16th-floor suite at $2.165 million.

Not yet on the market, the final offering at Grace by the developer, James Schouw and Associates, will be a three-level penthouse. This home will likely be marketed for nearly $15 million upon completion in 2009.

Schouw, who lives in the project himself, says building a oneofa kind residence to the highest standards possible, was the driving force behind Grace.

“I didn’t want to come off that we skimped anywhere,” he says, pointing out a high quality went not only to what is visible in the suites but what isn’t seen as well.

For instance, the Grace was the first high-rise in Vancouver to have an energy efficient geothermal heating and cooling system.

And it is believed to be the first condominium in North America with a fingerprint recognition security system, also known as biometric security.

There’s also high density drywall on both sides of the suites making it virtually impossible to hear the neighbours.

The architecture, designed by Schouw, is not one typically seen in Vancouver which he describes as “robust.”

Adding to the unique exterior detailing are four larger than life female forms, described as the “ four winds” created by artist Derek Rowe.
The entrances, both front and back, are grand with wrought iron gates and winding paths that lead you past landscaped courtyards.

The front entrance has a dramatic 30-foot gate and threestorey arched breezeway. There’s also a series of terraced gardens. The gardens, created in the first phase, were awarded Best Garden in Downtown Vancouver by the Vancouver park board and the Vancouver Garden Club.

The interiors are also different from the norm with a blending of modern and traditional design. For instance in the ensuites an old-fashioned claw foot tub is paired with a contemporary frameless glass shower and subway tiling. There’s also a handbuilt teak wooden vanity evoking old-world charm.

“I like to do a modern interpretation of classical materials,” says Schouw. “Character is really key in what we do. It has to be distinctive.”

Known for being willing to take risks and innovative design, Schouw has taken a new approach to the bathrooms. There is no door between the washroom and the bedroom. Instead, for privacy a partially frosted glass door conceals the toilet.

Schouw explains the idea behind this design was creating a sense of openness in the ensuite.

“I like to push the openness to the next level. We’re already used to open concept rooms ( in the kitchen/ dining/ living area) so why not make that space ( in the bathroom) as spacious as possible.”

Schouw believes this idea will catch on in the future with other condo developers, most of whom have embraced open concept design in the kitchen / living areas.

“In my perfect world I’d live in a wide-open 2,000 sq. ft. studio apartment,” he says.

The Grace has recently been nominated for three Georgie awards, including Innovative Community Design.

“We feel we are breaking new ground ( with the Grace). We faced our challenges and proved we could follow through and provide the level of quality and character initially envisioned.”