But province had most ground to make up after a dramatic sales decline in 2008

BRIAN MORTON
Sun

B. C. led Canada in new monthly records for residential sales in October, according to a report released Monday by the Canadian Real Estate Association.

“Of all the provincial monthly gains, B.C.’s was the highest,” CREA chief economist Gregory Klump said in an interview. “B.C. had the most dramatic decline in sales activity last year [and] it’s also had the most dramatic rebound in recent months. They fell the furthest so they have the biggest ground to make up. And that’s what’s happening. It’s rebounded to a new all-time monthly record for sales activity.”

Klump said a lot of buyers who had moved to the sidelines are returning to the market due to price discounts and lower mortgage rates.

“The pent-up demand in B.C. has been bigger,” he added.

The CREA report was released as a separate survey by the Canadian Association of Accredited Mortgage Professionals (CAAMP) and indicated that British Columbians are the most optimistic in Canada that home prices will increase in the coming year.

“People in B.C. are thinking that the overall economy is improving,” Jim Murphy, president and CEO of CAAMP, said in an interview about their Annual State of the Residential Mortgage Market report. “Perhaps they’re also feeling more positive because of the Olympics.

“And B.C. has always had the highest housing prices and the highest average mortgages. B.C. is the most optimistic that housing prices are most likely to increase.”

According to the CREA report, B.C. residential sales in October totalled 8,624, a 115-per-cent increase over 4,018 sales in October 2008. The average price in B.C. also rose from $420,259 in October 2008 to $493,328 in October 2009.

The national report noted that home sales hit a record high in October, leading CREA to boost its outlook for 2009 and 2010.

Nationally, resale home activity was up 41.5 per cent in the month, reaching a total of 42,288 units.

“Low interest rates and upbeat consumer confidence continue to release the pent-up demand that built late last year and earlier this year,” said CREA president Dale Ripplinger.

“The release of that pent-up demand has boosted national sales activity to new heights and is drawing down inventories.”

Further, said Millan Mulraine, economics strategist at TD Securities, “we expect the recent strong gains in the housing market to remain largely intact, though we suspect that the backto-back double-digit advance in sales seen earlier this year may not be repeated.”

As a result of the sector’s strong performance, CREA increased its forecast for sales in 2009 by 6.6 per cent to 460,200 units.

For 2010, the national industry group said sales would rise seven per cent to 492,300 units.

The average home price nationally also reached new highs in October, climbing to $341,079, up 20.7 per cent from a year ago.

A separate measure, which limits its focus to Canada ’s major markets, showed the average price rising 22.1 per cent to $373,095.

At the same time, the sharp rise in housing demand has eaten into inventories. With 194,994 homes listed for sale in Canada at the end of October, the number of listings is 20.8 per cent below the peak reached in October of last year.

It is the sixth month in a row in which inventories have fallen from year-ago levels, bringing supply to 4.1 months on a seasonally adjusted basis, the lowest level in more than two years.

Klump said new listings are expected to rise in coming months.

According to the CAAMP report, Canadians are increasingly confident that the value of their homes is rising and optimistic about their local housing markets. It also said that the Canadian mortgage market is rebounding and will surpass the $1 trillion mark in 2010.

In B.C., 47 per cent of people surveyed feel their house prices will increase in the next year, compared to 43 per cent in Alberta and 42 per cent in Ontario, the other top provinces. The national average was 40 per cent, more than double the 18 per cent who felt that way when surveyed in the spring of 2009.

The CAAMP survey also found that B.C. residents are the second most optimistic that now is a good time to buy a home, as well as the second most likely to buy a home in the next 12 months.

Nationally, the CAAMP survey found that Canadians are very satisfied with their current mortgage, with 77 per cent either completely satisfied or satisfied.

The top reason cited is the mortgage rate, which averaged 4.55 per cent over the past year, a decline from 5.41 per cent the previous year.

Oct. sales up 170% from 2008, most in country

Province

Greater Vancouver posted the nation’s highest increase in resale-home activity last month, the Canadian Real Estate Association says.

Home sales in the area in October surged 170.8 per cent from a year earlier, comfortably ahead of Victoria’s 135-per-cent jump and Toronto’s 64.2-per-cent rise, the association said.

The Vancouver area’s average house price reached $638,948 in October, up 14.8 per cent from the same month last year.

Victoria, which has the nation’s second-highest average price at $481,500, saw year-over-year prices rise 2.6 per cent.

Toronto home prices posted the highest increase in Canada last month, rising 20 per cent to $423,507 from last year.

Nationally, home sales hit a new record high in October, leading the association to boost its outlook for 2009 and 2010.

Resale home activity was up 41.5 per cent in the month, reaching a total of 42,288 units. On a seasonally adjusted basis, homes sold on the Multiple Listing Service totalled 45,818 units in October.

“Low interest rates and upbeat consumer confidence continue to release the pent-up demand that built late last year and earlier this year,” association president Dale Ripplinger said.”The release of that pent-up demand has boosted national sales activity to new heights and is drawing down inventories.”

Further, said Millan Mulraine, economics strategist at TD Securities, “we expect the recent strong gains in the housing market to remain largely intact, though we suspect that the back-to-back double-digit advance in sales seen earlier this year may not be repeated.”

As a result of the sector’s strong performance, the association boosted its forecast for sales in 2009 by 6.6 per cent to 460,200 units. For 2010, the national industry group said sales would rise seven per cent to 492,300 units.

© Copyright (c) The Province

Larry Pynn
Sun

The Metro Vancouver board voted Friday to ask the provincial government to pass legislation giving the Agricultural Land Commission the power to regulate the size of “monster” homes on farmland.

Harold Steves, Metro’s agriculture committee chairman, explained that a proliferation of “country estates,” especially on small farm properties in the region, is reducing the agricultural capability of the land.

Steves, a farmer and veteran Richmond councillor, said some new farm homes can be 10,000 square feet and up, include space for multiple generations of family members, and vast parking lots used for commercial trucks.

He said the regulation of such homes is best handled by the land commission rather than leaving each municipality to wrestle with the problem independently. The Metro board did not specify the maximum house size.

“We need one plan for the entire region,” Steves stressed.

In other agricultural matters, the board recommended that the income threshold required to achieve farm status be established “at levels consistent with a viable and sustainable agricultural operation” and that the calculation of annual farm income should include sales from value-added processing and agri-tourism operations rather than simply the wholesale value of farm goods.

Steves noted some farmers may charge admission for special attractions, or grind their beef into grilled hamburgers for sale to the public — revenue not currently considered farm income.

Currently in B.C., the threshold for a farm-property tax assessment varies based on size, but is $2,500 for farms of almost one hectare to four hectares — the sort of properties being targeted for country estates.

A report by the Farm Assessment Review Panel in July recommended B.C. establish a single income threshold at a minimum of $3,500 annual gross farm income.

B.C. Agriculture Minister Steve Thompson could not be reached Friday.

© Copyright (c) The Vancouver Sun

Jane Seyd
Sun

A home inspector who failed to find major structural problems with a $1-million house in North Vancouver has been ordered by a judge to pay $193,000 to a couple who relied on his report before deciding to buy their Montroyal-area home.

Manuel Salgado and Nora Calcaneo hired Imre Toth, an architect and home inspector, before completing the purchase of the house at 4884 Skyline Dr. in September 2006.

Before they went through with the deal, they asked Toth to look at the house and tell them if there were any red flags that should cause them to back out of the purchase.

Toth inspected the home and identified some structural problems. But according to testimony in B.C. Supreme Court, the inspector missed many other problems and estimated the cost of fixing the deficiencies at about $20,000 — far below the actual cost.

After they bought the house, the couple hired an engineer, who found many more problems than those pointed out by the home inspector. The real figure for fixing those serious structural problems was tagged at about $213,000.

In an unusual judgment against the home inspector, Justice Grant Burnyeat described Toth’s report and estimates for repair as “woefully inadequate.”

In particular, the judge found Toth failed to find that many key support beams for the house were rotten, because he hadn’t looked at them. Toth was negligent when he didn’t tell the couple they should have hired a structural engineer to examine the beams, wrote the judge.

His ballpark estimate of a $4,000 repair job “lulled the plaintiffs into assuming the rot was of no particular importance and that it could be inexpensively corrected,” wrote Burnyeat in the judgment.

“I find that the use of the word ‘fix up’ [in the report] lulled the plaintiffs into assuming that minor or cosmetic changes could be made,” he said.

In testimony during the trial, Toth suggested it was possible the rot had set in between the time he did the home inspection in September 2006 and when the engineer took photos three months later. But the judge rejected that.

He added Toth also misled the couple when he didn’t clearly point out other serious problems with stabilization of the house. Toth should have told the couple to hire a geotechnical engineer, the judge said. His estimate of a $16,000 repair bill for required work also fell far short of the $75,000 cost now estimated to do the job.

In court, the home inspector pointed out that Salgado signed a contract limiting Toth’s liability to the cost of the home inspection — $450.

But the judge said it was clear the couple were relying on his advice when deciding whether to buy the home.

“An inspector invites reliance by the very nature of the advice that is given,” wrote the judge. “Plainly, if prospective home purchasers did not believe that they could secure meaningful and reliable advice about the home they were considering purchasing, there would be no reason for them to retain an inspector to inspect that home.”

After they bought the property and the problems became apparent, the couple appealed their assessment to the 2008 assessment review panel. While the land value rose from $756,000 to $887,000 between 2007 and 2008, the value of the house itself was written down from $260,000 to $10,000.

© Copyright (c) The Vancouver Sun

Alex Veiga, AP Real Estate Writer
USA Today

SAN DIEGO — Home prices are expected to grow modestly next year and sales will keep rising as the housing market continues to recover from the worst downturn since the Great Depression, the National Association of Realtors said Friday.

Home resales are projected to total 5.7 million next year, up from an estimated 5 million this year. Prices will climb about 4% after a projected decline of 13% this year, according to Lawrence Yun, chief economist for the trade association.

“Going into 2010, I anticipate that prices will also begin stabilizing or begin to modestly improve,” Yun told the audience at the association’s annual conference and expo in San Diego.

That should help ease buyers’ anxiety. “I don’t think the fear factor will be at play in 2010,” Yun said.

The housing market’s rebound has been aided by an aggressive federal intervention to lower mortgage rates and bring more buyers into the market. Home resales rose in September to the highest level in more than two years, something Yun said shows buyers are eager to get back into the market.

A federal tax credit of up to $8,000 for first-time homebuyers has helped stoke sales this year. The incentive was set to expire at the end of this month, but the NAR and other housing groups successfully lobbied to get the credit extended.

Now buyers can claim the credit if they sign a contract by April 30 and close the deal by the end of June. Lawmakers also expanded the program to include a $6,500 credit for existing homeowners who have lived in their current residence for at least five years.

First-time buyers accounted for a record 47% of home sales this year, up from 41% last year, the trade group said.

That surge helped drive traffic for real estate agents like Jan McGill of Omaha, and the extension makes her more optimistic about business next year.

“I’ve got to be positive,” McGill said.

Yun estimated around 2 million people took advantage of the tax credit this year and projects it will continue to lift the market.

However, some housing analysts said the NAR’s forecast was overly optimistic, as it was during the housing bubble. Economists like Patrick Newport argue the tax credit has already enticed many buyers who otherwise would have waited until next year.

“It induced first-time homebuyers who were going to buy a home in 2010 to buy in 2009 because they thought it wasn’t going to be extended,” said Newport, an economist at IHS Global Insight.

Newport is projecting home prices will fall between 3% and 5% next year and sales of existing homes will be flat, at best.

“I don’t think that second tax credit is going to create a lot of new homebuyers,” he said.

But Yun supports his case by pointing to data from 2000, prior to the housing boom, when 11 million renters had the income necessary to buy a median-priced home. This year, he said, there are 16 million renters in that position.

“This clearly shows that there’s potential pent-up demand that could be tapped,” he said.

His forecast calls for sales of newly built homes to surge by about 38% from 2009 levels. That translates to about 549,000 homes, still well below historical trends.

Yun also sees the average interest rate on a 30-year, fixed mortgage creeping up to 5.8% by the end of 2010 from about 5% today.

Foreclosures, meanwhile, should peak in the first half of the year, he said.

Copyright 2009 The Associated Press. All rights reserved.

Cheryl Chan
Province

THE FACTS

What: Spruce, 49 units.
Where: 1096 West Broadway, Vancouver.
Builder/Developer: Intracorp.
Sizes: One-bedroom and den from 555 to 653 square feet, and two-bedroom and den from 804 to 853 sq. ft.
Prices: Starts in the mid-$300,000 range.
Open: Presentation centre at 1595 West Broadway opens Nov. 14. Hours daily noon to 5 p.m. except Friday.

When it comes to home buying, it’s what women want that clinches the sale.

And when women go shopping for a home, often top on the list is storage, storage, storage.

So when Intracorp took over a new condo development in Fairview Slopes earlier this year, marketing director Carla Bury and Susan Rutledge, vice-president of sales, were aghast at the lack of upper cabinets in the kitchen and shallow, drawerless vanity in the bathrooms.

“As women, Sue and I both said ‘That’s crazy, where are you going to put your things?'” said Bury. “Why not put in more cabinets or a bigger vanity with storage? So that’s what we did.”

The result: an intimate 11-storey, 49-unit glass-and-concrete jewelbox of a building to be built on Broadway and Spruce aimed at predominantly female professionals in their mid-30s to 40s.

The kitchen — now with plenty of storage — has a built-in shelf for display, unique round mosaics for the backsplash, and sleek Blomberg fridges hidden behind wood veneers that melt seamlessly into the functional space.

All suites have nine-foot ceilings and patios or balconies, while four penthouse suites have spiral staircases leading to a rooftop patio.

Even the gym is geared toward women, with fewer free weights favoured by men and more elliptical machines, treadmills and core-strengthening equipment.

Located between tony south Granville and the burgeoning Cambie Rise neighbourhood, Spruce is well-situated near shops, restaurants, art galleries, big-box retail stores and the False Creek waterfront.

It’s also in an established residential neighbourhood with quiet tree-lined streets where new developments are few and far between, said Bury.

Potential buyers can choose from five different plans ranging from a 555-square-foot one-bedroom with den to an 853-sq.-ft. two-bedroom and den. Prices start in the mid-$300,000.

As an incentive, early buyers get upgraded hardwood flooring — unusually wide planks of engineered oak — thrown in for free.

Spruce’s owner had initially launched the project last October, when B.C.’s real-estate market had screeched to a standstill as

the effects of the U.S. banking

crisis reverberated around the world.

“It was the worst time possible,” said Rutledge.

“The brakes were on.”

When Intracorp, the developer responsible for the completed Camera in South Granville and the sold-out Jacobsen in southeast False Creek, came on board, it tweaked the features and floor plans.

The spruced-up Spruce is now scheduled for a Nov. 14 grand opening. Construction starts in March 2010, with a completion date target of 2011.

Bury said there are several factors that are encouraging buyers to get back into the recovering market.

“With interest rates as low as they are, there’s a lot of people out there who feel it’s a good time to purchase a home,” she said.

“Prices have come down, interest rates are low, and if they can buy now before the HST comes into play, then it makes a lot of sense.”

The pending harmonized sales tax, which comes into effect July 2010, could boost new home prices by about seven per cent.

© Copyright (c) The Province

 

Commute to the office a simple stroll for residents of south Surrey project

Steven Threndyle
Sun

HEADWATERS CLUB

Project location: south Surrey
Project size: 62 apartments, phase 1
Residence size: 650 sq. ft. — 1,200 sq. ft.
Prices: From $259,000
Developer: Treegroup
Architect: Gomberoff Bell Lyon
Interiors: False Creek Designs
Sales centre: 2215 –160th Street
Hours: noon – 8 p.m., Mon — Sat; 10 a.m. – 6 p.m., Sun
Telephone: 604-535-1451
E-mail: [email protected]
Web: headwatersclub.ca
Occupancy: February 2011

– – –

Headwaters Club is an urban-residency proposition offered in decidedly suburban Surrey, living where you work and working where you live.

There are many options when it comes to selecting your own home: 16 different configurations of one, two, and three-bedroom units — all with additional dens, if desired — are for sale. At Headwaters Club, every suite comes with a dedicated office-den room and additional “flex space” that can house a makeup/bathroom vanity, or be used as a computer nook, a sewing area, a craft or art niche, or simply, as extra closet space.

continues on next paAGE I-11

However, it’s the opportunity residents will have to blend a home life with a working life that truly distinguishes the project.

Mention a “live-work home” at a dinner party, and chances are it will conjure images of some young hipster toiling away in an open-space loft somewhere close to downtown Vancouver — in Yaletown, perhaps, or Coal Harbour. Some young graphic designer-type plugged into his espresso machine and MacBook, living a neo-bohemian lifestyle in a historic reno purchased for $600 per square foot.

But South Surrey’s Headwaters, a 62-home project from developer Treegroup that’s located on more than six acres of land, represents an exciting new concept of live-work space that’s a stone’s throw from lush regional parks and some of the best golf courses in the Lower Mainland. It’s also just a short drive from White Rock’s famous beachfront promenade.

“Headwaters Club residents have the unique opportunity to work from home with all the features and services of being in an office setting,” says Patti Caldwell of Placemaker Marketing, which is marketing the project.

“It has all the benefits of being at an office, without the commute.”

In other words: work, play, and shelter, together in one package.

The neighbourhood will provide space for consultants and micro-business owners to meet, and even entertain, business clients.

The key is a two-storey, 6,200-square-foot building — the “Headwaters Club.” Staffed by a concierge, it is designed to serve, not only as a common area for socializing, but also as a business services facility.

The concept, says Caldwell, is not to isolate the free agent consultant or contractor in a spare bedroom, but to encourage networking and idea-sharing with other members of the Headwaters neighbourhood.

The club’s level-entry ground floor will feature a gourmet demonstration kitchen where residents can take cooking classes, store business supplies, and book business rooms with an on-site concierge. The flexible-space lounge will be perfect for small group activities like book club meetings.

The top floor will be given over to office space that even includes a coffee room. Need a private meeting room with a whiteboard to brainstorm some ideas with a client? Headwaters Club will have it.

Steps away from the club will be a 900-square-foot on-site fitness centre with a wide range of machines and weights. “Residents will have access to a personal trainer to help them meet their fitness goals,” says Caldwell.

Taking the live-work concept to the next level, Headwaters will even offer a limited number of live-work units built to commercial business-code standards. These ground-floor units range from 818 to 1,100 square feet and have separate entrances and exits for clients and guests. The units will also have bathrooms accessible for people with disabilities.

Treehouse is also proud to offer many standard features made from high-quality naturally sustainable materials. Low VOC paint, bamboo island countertops, 100-per-cent wool carpeting, dual flush low-flow toilets and Whirlpool Energy Star-rated appliances come with every unit. Airy nine-foot ceilings — 12 feet on the top floor — create a homey and welcoming environment.

Looking for upgrades? Engineered wood floors, electric fireplaces, KitchenAid appliances and roll-out pantry hardware are also available.

Right now, prospective purchasers can take advantage of two great promotions, including a 3.6-per-cent mortgage for three years, starting from the completion date. In the meantime, deposits are being held in a special trust account that is bearing seven-per-cent interest — well above current bank or term deposit rates. Purchasers who act now will also not pay the extra portion of the HST if it comes into effect next year. Need more incentives? Purchase a two-bedroom unit and you’ll get the KitchenAid upgrade free of charge.

Many early phase 1 buyers are downsizing baby boomers in their 50s who are either self-employed or see themselves as running their own business in the near future. Sales have been brisk so far, with six homes sold in the first two days of presales.

Dianne and Dale Sharpe are two Delta retirees downsizing from their traditional family home to a unit at Headwaters Club. Their primary reason for purchasing, says Dale, was that “it’s a level suite — there are no stairs to climb and we believe that’s very important as we all get older.”

The Sharpes looked at several other developments in the area and were impressed with the fact that Headwaters is close to both green space and shopping: they are looking forward to being part of one of south Surrey’s most vibrant neighbourhoods.

© Copyright (c) The Vancouver Sun