Derrick Penner
Sun

VANCOUVER — B.C. Lower Mainland real estate markets saw their slowest July in decade, the region’s real estate boards reported Wednesday, with sales down by almost half from July 2009’s red-hot markets and prices slipping from the previous month’s levels.

In Metro Vancouver, excluding Surrey, realtors saw 2,255 sales registered through the Multiple Listing Service, a 45-per-cent decline from July 2009. In the Fraser Valley, July MLS sales were off 47 per cent with 1,001 transactions.

The benchmark price for detached homes, an average for typical homes sold, dipped a negligible 0.2 per cent to $793,193 in the area of Metro Vancouver covered by the Real Estate Board of Greater Vancouver.

Fraser Valley Real Estate Board realtors saw its detached-home benchmark hit $510,470 in July, down 1.5 per cent from June, and the board reported that its benchmarks in all three categories fell from the previous month for the first time since January 2009.

“With the pace of home sales and listings easing off in our market, we’ve begun to see a leveling of home prices from the record highs seen in the spring, creating greater affordability,” Jake Moldowan, president of the Real Estate Board of Greater Vancouver, said in a news release.

The board added that since the spring, home prices have come down 2.8 per cent from record highs reached in April.

Deanna Horn, president of the Fraser Valley Real Estate Board, said that while real estate sales typically slow in the summer, “we didn’t anticipate this level of change.”

Both boards noticed that new listings of homes for sale are also waning.

In Metro Vancouver, new listings were off almost 18 per cent from a year ago. In the Fraser Valley, new listings were down 25 per cent.

Both markets, however, still have higher levels of total inventory. In Metro Vancouver, the inventory of 16,431 homes is 33 per cent higher than July 2009. In the Fraser Valley, the inventory of 10,852 listings is 14 per cent more than in the same month a year ago.

© Copyright (c) The Vancouver Sun

Amendment forbids councils from banning rentals post-construction

Suzanne Morphet
Sun

It’s complicated is more than the name of the movie in which Meryl Streep figures out where her heart lies.

It is also the real-life dilemma that will soon be facing prospective strata-property owners, as they try to decide whether to buy a home in a new building where there may be no rental restrictions or one that was built before Jan. 1, 2010 and already has restrictions in place or could have at any time.

When the government amended the Strata Property Act last year, one of the things it changed was the ability of new strata corporations to pass bylaws that prevent owners from renting their units.

Until this year, a strata corporation could make a rule forbidding owners from renting their units to anyone other than family members.

Even if you bought into a building where rentals had once been allowed, that could change almost overnight by a three-quarter vote of strata owners.

It left some investors hanging and complaining.

When Housing Minister Rich Coleman introduced the amendment in the Legislature last fall, he spoke to that.

“One of the biggest complaints we got, frankly — I heard from people who were Asian investors who bought units in Vancouver on the basis that they thought they could rent them out, that they could have some cash flow towards their investments, which they were going to hold. After they bought them, along came a strata corporation and said: ‘Those rentals are no longer allowed here.'”

Under the new law — which applies only to developments filed after Jan. 1, 2010 — developers can specify in their rental disclosure statement how many units in a building can be rented and for how long. And no strata corporation can change it.

Martha Lewis likes that certainty.

She’s the executive director of the Tenant Resource and Advisory Centre and supports the change because it should provide some badly needed rental housing.

As Lewis bluntly puts it, “owners don’t like tenants. Even owners who used to be tenants don’t like tenants.”

Having more homes available for rent isn’t going to be a panacea for renters, because rents in strata buildings tend to be about 30 per cent higher than in rental-specific buildings.

However, Lorraine Copas at the Social Planning and Research Council of B.C. agrees strata units are still an important source of supply.

So this change should be good for investors and renters.

What about owners who are not investors? And do owners simply not like renters?

White Rock lawyer Adrienne Murray, who specializes in strata law, says ‘there’s lots of good reasons why owners want to restrict tenants and it’s not just because they don’t like tenants.”

Investors often have a different perspective, she points out. They may not be as concerned about having a large contingency reserve fund, they’re not there to participate on strata council, and if they can get the same rent whether the lobby is painted or not, why would they want to spend money upgrading?

But the bottom line? Murray says the change is “not good or bad, it’s just going to change the factors that buyers have to consider and what realtors have to be aware of.”

Heidi Marshall, spokesperson for the Condominium Home Owners Association, which supported the change, echoes that.

She says people looking to buy into a new building will “need to closely review the rental disclosure statement before they purchase to understand if and how a rental bylaw could someday apply.”

© Copyright (c) The Vancouver Sun

Raven Woods to grow by 100 households

Steven Threndyle
Sun

DESTINY AT RAVEN WOODS

Project location: North Vancouver

Project size: 103 residences, five-storey building;
Residence size: 1 -3 bed, 658 sq. ft -1,345 sq. ft.
Prices: $279,000 -$669,000
Sales centre: 590 Raven Woods Drive
Hours: noon -5 p.m., Sat -Thu
Telephone: 604-929-1915
Website: destinyliving.ca
Developer: Takaya Developments
Architect: Bingham Hill
Interior designer: Insight Design Group

READ FULL ARTICLE

© Copyright (c) The Vancouver Sun

Sun

Where those of us who own residential property may have been this year and where we might be for the rest of this year and next year were the subjects of news releases this week.

The brokers’ professional association, the British Columbia Real Estate Association, released two forecasts, for the rest of the year and for next year.

Multiple Listing Service volume will drop seven per cent to 79,500 sales this year and they will increase five per cent to 83,400 in 2011.

“Housing demand has fallen back to earth from its breakneck pace at the end of 2009 and is expected to more closely match overall economic performance over the next 18 months,” the news release comments.

“A larger inventory of homes for sale has created the most favourable conditions for home buyers in more than a year.

“However, the buyers’ market is expected to be short-lived as total active listings peaked in May and are beginning to wane, with more balanced conditions set to emerge in the fall.”

The association expects the value of the average MLS transaction to climb six per cent to $492,800 this year and decline one per cent to $489,500 next year.

The BCREA represents about 18,000 real estate agents in 12 member real estate boards around the province.

The organizers of a national survey of residential real-estate values created from repeat-sale information say that Canadian transaction-values surged 13.6 per cent in May from May, 2009. Vancouver led the increase, at 17.1 per cent.

The survey is called the Teranet-National Bank National Composite House Price Index. It is calculated from transaction-information collected from public land registries in six Canadian metropoli. Only dwellings that have sold at least twice are considered in the calculation.

“Since market conditions have been loosening across Canada — from April to June of this year, the number of existing homes sold declined much faster than the number of new listings –it is too early to conclude that the relatively vigorous prices rises of April and May mark the beginning of a trend,” a news release commentary says.

“The prospect of harmonized sales taxes coming into effect July 1 in Ontario and B.C. may have had the effect of pushing up sales in Vancouver, Toronto and Ottawa in the preceding months.”

© Copyright (c) The Vancouver Sun

View residences on Saanich Inlet are priced to reflect recessionary building expenses

Suzanne Morphet
Sun

Location: Located on the oceanfront in the quaint seaside village of Brentwood Bay, in the heart of Victoria’s wine country on the Saanich Peninsula. Only 10 minutes to the Victoria International Airport and 20 minutes to downtown Victoria.

Project size/scope: 11,000 square feet, comprised of six luxurious private oceanfront condominium residences next to the five-star award-winning resort and spa development, Brentwood Bay Resort. Each unit is approximately 1,900 square feet with two bedrooms plus a den, west-facing oceanfront with direct deepwater moorage access to Brentwood Bay Marina.

Prices: $899,000 -$1,399,000

Monthly strata fees: $350/ month

Contact: Daniel Behune, developer (250-415-1875;
E-mail: [email protected])

Jim LeBlanc, realtor Sotheby’s International Realty Canada (250-812-7212; E-mail: [email protected])

Website: www.oceanvillas.ca
or
www.brentwoodbayresort.com

Developers: Brentwood Bay Resort

Architect: Ron Lea, Folio Architecture, Vancouver

Interiors: Nygaard Design, Victoria

Occupancy: July 15, 2010

Vancouver Island developer Dan Behune seems to be one savvy guy — or maybe he’s just lucky.

Consider, first, that he was able to find for sale a west-facing oceanfront property on the Saanich Peninsula with a pub licence and commercial zoning in place when he went looking to build a new hotel back in 2001. Any one of those elements is desirable; to find all of them is almost impossible.

Consider, next, that while Behune was constructing what would become the award-winning Brentwood Bay Lodge and Spa, the provincial government allowed pub owners to open private liquor stores. Bingo! Another window of opportunity, albeit a short one — about four months — but one Behune gladly seized: to open a store in Brentwood Bay featuring local wines.

Next, picture this: just as his lodge was establishing its reputation as a luxurious retreat, the property next door became available. Since Behune and his two partners already had a marina out front, it was the perfect place to build some condominiums and expand their holdings.

It was 2008 when they got down to business. The construction market was still hot, but a recession was just around the corner. If you’re thinking that Behune’s good fortune might have ended then, think again.

Instead of pushing ahead with the project when construction costs were at their peak, and then suffering the downturn in the market, Behune backed off and sat tight. Then, last September, when construction companies were again hungry for work, he broke ground.

The result? Six waterfront condominiums that will meet LEED green-building standards for homes, achieving gold and perhaps even platinum. Each is priced $400,000 below the original estimate.

Would-be buyers probably don’t care whether Behune is savvy or lucky — or both. All that matters is that instead of paying between $1.4 million and $1.8 million for a two-bedroom-plus-den condo on the Saanich Inlet, you can buy one for between $900,000 and $1.4 million. In other words, what was once the starting price is now the highest.

The OceanVillas are similar in design to the Brentwood Bay Lodge and Spa. The same architect who designed the lodge — Ron Lea of Folio Architecture — also designed the villas. (In 2005, the cedar and glass Brentwood Bay Lodge and Spa won the Best Commercial Building award on Vancouver Island.)

Though similar to the lodge and connected to its marina by a boardwalk, the villas are distinctive with a more contemporary look. Massive Douglas fir posts and beams anchor the three-storey building, which is clad in cedar siding.

Each condo overlooks the Saanich Inlet, with views to the Malahat mountains beyond. You can watch the sun go down from your 200-square-foot deck or — in more inclement summers — from behind the 12-foot sliding glass doors.

A double-sided fireplace will also warm things up outside on cool days, while making the indoors cosy in winter.

Inside, the condos are spacious and light-filled with natural materials and earthy colours. The kitchen and “great room” have flooring of natural quartersawn wide-plank oak. Cabinets are natural white oak, topped with solid quartzite countertops.

Both bedrooms have ensuite bathrooms, but the master ensuites in each unit are “absolutely stunning,” Behune says. They have a deep soaker tub and a double-sized walk-in shower equipped with full-body jets and a floor-to-ceiling window looking out on the ocean.

For interior designer Sandy Nygaard of Nygaard Interior Design, it’s the “wonderful wall of windows that look out to the incredible view” from the main living area that is the highlight of each condo.

Nygaard, who also did the interiors at the Brentwood Bay Lodge and Spa, adds that “the simplicity of the millwork and other interior details, such as the concrete see-through fireplace, do not take away from this.”

To achieve the LEED gold rating, Behune and his team paid attention to details like the windows and doors, choosing Pella solid wood EnergyStar-rated insulated windows and doors with “Low E” argon gas to reduce ultraviolet rays coming inside by up to 70 per cent.

The hardwood floors are locally made from certified sustainable lumber. As well, all interior paints, adhesives and millwork finishes meet LEED standards as they are low-VOC (volatile organic compounds). All the major appliances are top-of-the-line Jenn Air EnergyStar rated, lighting is energy efficient and bathrooms have low-flow faucet fixtures.

The finishing “green” touch is the roof over the parking garage, which is literally green with native plants.

Speaking of parking, each unit has its own one-car garage, as well as an outdoor parking spot. Owners one floor up or down from the main level can access their homes via stairs or elevator.

No doubt a big part of the attraction for prospective owners is the marina and the possibility of tying up a boat not just within walking distance, but within sight.

Behune has recently received approval from the B.C. and municipal governments to expand his foreshore lease, so in addition to slips for hotel guests arriving by boat, there’s room for each condo owner to have a boat.

The boat slip isn’t included in the purchase price, so if buyers don’t own a boat, they don’t pay for the space.

“We’re going to make it flexible, pay as you play, if you want to have a boat here, we’ll let you and set it up for whatever size you want,” Behune says, adding, “There’s room for six 70-foot boats.”

Those who don’t own a boat will be able to join the marina’s “paddle club” for a small fee.

“We have kayaks, canoes, and paddleboards, all kinds of water toys and we’ll give them access to all that,” Behune says.

Owners will also have complimentary access to the fitness club in the lodge and can pay an annual fee to join the spa with its outdoor pool and hot tub.

You might think the monthly condo fees for a place with so many amenities would be high, but they’re a relatively low $350 per month.

“It’s amazing for a million-dollar-plus condo, to have such low condo fees,” concedes Behune, who says this is because there’s very little common area, little landscaping, and the extra amenities like the pool are taken care of by the hotel.

Behune and his partners didn’t do pre-sales, confident the condos would sell once seen. One of the six was purchased by a retired Calgary couple in the first couple of weeks they were on the market.

Suzanne Morphet is a freelance writer and co-author of the Vancouver Island Book of Everything.

© Copyright (c) The Vancouver Sun

Derrick Penner
Sun

Real estate markets have slowed a bit more than the B.C. Real Estate Association’s earlier predictions, prompting a downward revision in the group’s latest market forecast that includes a softening of prices.

Association chief economist Cameron Muir released his third-quarter forecast Friday, calling for Multiple Listing Service recorded sales to dip to 79,500 by the end of the year, a seven-per-cent decline from 2009.

In the association’s second-quarter forecast, Muir had predicted British Columbia’s MLS sales would fall three per cent from the 85,028 recorded in 2009.

“We’ve seen consumer demand has tailed off in the summer months a little more than what was expected, and that accounts for the change in the overall unit-sales numbers,” Muir said in an interview.

Muir said the combination of higher levels of active listings than a year ago combined with slower sales has meant a softening of prices over the summer months.

Most markets in B.C. have hit buyers’ territory, which means house hunters have more power to negotiate deals than sellers do to set prices.

The result is that Muir is forecasting by the end of 2011, although sales should increase, the provincial average price should edge off a new high achieved in 2010.

By the end of 2010, Muir estimates that the average price across all property types will hit $492,880, 5.8-percent higher than at the end of 2009. Most of that increase, however, represents a spike in prices that peaked about May.

In 2011, Muir estimates the provincial average will come back to $489,454, with price declines in the high-priced markets of Metro Vancouver and the Fraser Valley proving to be the biggest influence on that figure.

“The real question is on which side of zero [are prices going to] be,” Muir said.

To put markets into perspective, Muir said that while 2010 sales are expected to come in at just below the 10-year average, 2011 sales likely will hit it.

“My expectation is for a gradual improvement in sales over the next 18 months rather than the roller-coaster of activity we’ve seen over the past two years,” he added.

© Copyright (c) The Vancouver Sun

Emerald: Developer has permission for three, plans to install a garden instead

Province

The Facts

What: 227 apartments and townhouses, 2 towers
WHERE: Richmond
SIZE: from 527 sq. ft.
PRICES: from $293,000
TELEPHONE: 604-244-8338
EMAIL: emerald6888@telus. net
WEB: emeraldrichmond. com

All involved in the Emerald development in Richmond are treating it in a manner becoming a master jeweller preparing a setting for a gemstone.

What’s absent is one source of the comparison. City hall gave the developer permission to build three towers, but the developer is only building two towers and installing a garden where the third tower could have risen.

The Bennett Group’s Liu Shek Yuen is treating the garden as a potential contributor to property appreciation in the years ahead.

“Properties surrounding Central Park in Manhattan and Hyde Park in London are always in demand,” Liu Yuen says.

“We wanted to create our own park within the Emerald.”

What’s present, or will be present, is another source of the comparison.

An Emerald home, inside and outside, will profess an Asian-Pacific look and feel.

“To some extent British Columbia is an Asian transplant as a culture, [firstly] because of the first nations who crossed over from Asia,” says the Emerald architect, Richard Iredale.

“There is that reverence for nature in both cultures. It’s a cultural continuum from Asia to the West Coast.

“It’s a sense of respect and delight in natural materials.”

The high-rises, he hopes, will remind residents and passersby of two trees, getting thinner and thinner the higher they go.

” … they start very strong with these kind of pier elements interspersed with glass, and then as you move up the piers sort of stop and the glass gets wider and [it looks like] the thinning out of the branches until you get to the roof. The roof is like this canopy of foliage floating overtop of the trunks.”

The Emerald is the Liu family’s fifth development in Richmond in a quarter of a century.

“We have been in love with Richmond from our very first project here, in 1984,” Liu Shek Yuen says.

Liu and his wife, Emily, were on a world tour when they discovered Richmond.

© Copyright (c) The Province