Long-term leases for luxury homes

Neil Sharma
Canadian Real Estate Wealth

Long-term residential leases aren’t popular in North America like they are in other parts of the world, but a Vancouver-based company endeavours to change that.

With Eventide, Deecorp Properties is offering a three-unit luxury boutique condominium on the sunniest part of the downtown peninsula. The kicker: Chosen residents will be living there on a 30-year lease.

“There are quite a few advantages,” said Stanley Dee, Deecorp’s president and CEO.  “There’s no transfer tax if ever someone wants to move, but there’s also less cash outlay, meaning we’re in a situation where we can rent on an annual basis or it can be prepaid for 30 years. They pay slightly under half of the value, which is essentially the freehold value on a 30-year prepaid lease.”

The British Columbia government recently introduced a few regulatory measures to curb rapid price escalation in Vancouver, Canada’s third-largest, yet most expensive, city. But where there’s no purchase, there’s no tax, says Dee.

“It helps avoid the vacancy tax and the foreign buyer tax,” he said, “because there’s no purchase; just a lease. In Canada, if you’re 30 years or less there’s no transfer tax, which starts at 2% and goes up to 5%, so that would be $500,000 on a $10 million home.”

Dee stresses that the 30-year lease wasn’t conjured in a bid to circumvent existing tax schemes; rather, it works within the rules and, in essence, functions as a substantial security deposit that’s returned at the tenancy’s conclusion.

Another major advantage is that there’s no risk of losing home equity if the market plummets, however unlikely that may be.

“The tenant doesn’t care about appreciation, and that’s the whole idea,” said Dee. “They’re not buying for appreciation nor are they taking the same gamble homeowners do that the market won’t go down. What we’re offering gives them certainty, and that is arguably the biggest advantage.”

Ron Antalek, a REMAX sales agent, says long-term leases can generally be an excellent way to save money.

“It’s for sure viable,” he said. “The attraction is the monthly cost. If it’s below or at market rents, it’s great, and you can live there for, say, 10 years and then sell the rest of the lease.”

At Eventide, long-term leasing is a way to enjoy luxury living without the accordingly astronomical cost of freehold ownership.

In total, the building, slated for July completion, will be four storeys tall—including two levels for the penthouse—and sit by the beach. Deecorp Properties will also be the property manager, further elevating the Eventide’s value proposition, says Dee, because residents won’t be bothered by common issues with condo corporations.

“Normally the problem when you buy a condo is you’re part of a strata and the council makes poor decisions, often not properly maintaining the building,” he said, adding that, where long-term leases are concerned, well-maintained buildings are in everyone’s interest.

“You hear the horror stories.”

Copyright © 2019 Key Media Pty Ltd

Home prices in Vancouver 12 percent below the peak last June

Josh Sherman
Livabl

The housing recession that is sweeping across the Vancouver area will leave home prices 12 percent below the peak achieved last June, an economist predicts.

If the forecast from Bryan Yu, Central 1 Credit Union’s top economist, proves correct, that would mean a loss of more than $100,000 from the all-time high.

In June 2018, the benchmark price of a Lower Mainland home reached an unprecedented $1.034 million. Yu anticipates that when all is said and done the price will bottom out around the $900,000 mark for the area including Greater Vancouver and the Fraser Valley.

“The decline pushes values to the lowest levels since early 2017, although there is downside risk,” Yu writes in a recent report that spells out how dire the situation in Canada’s most expensive real estate market has become.

According to Yu’s analysis, home sales across Metro Vancouver and the Abbotsford–Mission area totalled 3,158 this April, down 25.5 percent from the same month last year. April activity hasn’t been so weak since the year 2000.

“While a slight improvement from the near 30 per cent drop in March, the sales flow continued to deteriorate. Our seasonally-adjusted estimates point to a two per cent monthly sales decline from March, marking a seventh consecutive decline and slowest pace since the 2008/09 financial crisis,” Yu writes.

The market’s tailspin is the result of policy decisions, Yu says, echoing the view of major local industry groups the Real Estate Board of Greater Vancouver as well as the British Columbia Real Estate Association.

“The current slump is likely to persist. Despite a solid growth in the local economy and population, federal stress tests and provincial policy measures will continue to hamper sales,” Yu says.

Federal policymakers imposed a “stress test” on uninsured mortgage borrowers last January, raising the bar to homeownership.

Under the new rules, borrowers who put forward a downpayment of at least 20 percent — the minimum for an uninsured mortgage — have to qualify at a mortgage rate that is 2 percentage points higher than what their federally regulated lender is offering.

Stress testing had already been introduced for the insured mortgage segment back in 2016.

While that policy has had an impact nationally, there are a number of policies that are unique to British Columbia.

A foreign-homebuyer tax for Metro Vancouver was increased to 20 percent last year, up from the 15-percent rate that was established in August 2016.

The BC government has also slapped speculation and vacancy tax on major urban markets, while the City of Vancouver has its own levy on empty homes.

“For sellers staying in the market, current conditions warrant further price cuts,” Yu writes.

© 2019 BuzzBuzzHome Corp

Referrals and conflict of interest

Jeff Stern
REM

There is a wide array of professional services home buyers and sellers use during the buying and selling processes. Lenders and lawyers are the ones people are most familiar with. There are also home inspectors, insurance brokers and home stagers, to name a few.

Historically, real estate brokerages have been the central link in this chain, but only one link. Lawyers, inspectors and other professional services have had to be sought by the clients themselves.

Some people want to change that.

There is interest in providing an all-inclusive real estate brokerage fee. Essentially, the brokerage hired to represent you in your sale or purchase would also pay for your legal fees and inspection fees in this bundle of services. Virtual tours, home staging, inspection and legal fees… get it all for a single listing fee. No “hidden extras”. What a great deal!

All-in-one, bundled services sounds convenient, I know. And, to a degree, it is. I’ll be first in line to say advocating for clients and helping ease them through the big convoluted process is a good idea.

Here’s the problem. I smell opportunity for conflict of interest.

We all question the motives of anyone who recommends anyone else, don’t we? If a blogger recommends a particular webcam or device on Amazon, we wonder if it’s an affiliate link meant to give them a commission. Nothing wrong with making a cut, but let’s not pretend that’s not a motivating factor.

If a friend recommends their Uncle Bob as a plumber, we have to wonder if the recommendation is based more on their family loyalty and kind-hearted desire to support someone they know, or if the recommendation is based on the qualified professional capabilities of their Uncle Bob.

Here’s an example of just such a questionable service offering in the banking industry.

Banks sell life insurance, which I strongly recommend to my clients to NOT purchase (through the bank). Know why? It costs more and you get less.

It tends to be higher priced than private insurance bought through an arms-length insurance agent (you know, so banks can boost their profits) and is offered right there as an up-sell when you’re “already” getting something done. It’s so easy and convenient, but it pales in comparison to that of an independent insurance policy.

The bank is in it to make money, not to safeguard your future. The result can be insurance that only covers whatever is outstanding on the mortgage at the time and in the event of death or injury. You pay, pay, pay premiums for years (premiums that only increase with each passing term, by the way) and your actual pay-out coverage goes down, down, down, as your mortgage balance goes down.

The bank gets theirs, and you, well, whatever. That’s not their problem. It’s your problem.

And it’s exactly that kind of commonly found self-interest that frightens me about real estate brokerages adding this sort of in-house professional bundle of services.

As consumers, we should always approach recommendations with a healthy dose of skepticism, factoring in the motives of those who are “trying to help us”.

As service providers, we should make every effort to make sure our motives are clean and pure when helping our clients. This applies to so many things, but for the purpose of this article, let’s apply it to our recommendations.

Clients need professional help. In more ways than one. They’re going to ask you for recommendations.

Who will you recommend and why? Will you refer based on who pays you a fee? Will you refer based on who you networked with in a business group or at the latest Christmas party? Or will you base it on who has credentials and an excellent reputation?

I don’t know if we can ever be completely altruistic, but we can sure try. It’s exactly all this self-motivated, conflict of interest stuff that has me being extra cautious about recommending people. It’s why I carefully screen those professionals who I do recommend, teach people how to screen their own professionals (when hiring lawyers, home inspectors and lenders, for example) and it’s also why I make sure to provide at least three names of professionals if I provide any at all.

None, by the way, pay me a referral, or reciprocate in any way. Heck, they may not even know that I recommend them at all! Because monetary and social reciprocity is not the reason I recommend them to my clients. I refer my clients to them because I believe they will do the very best job for my clients, and it’s my clients’ interests I’m looking out for.

If you take away any one thing from all of this, I hope it’s this: If you’re sitting across the desk from any professional who’s recommending any other professional, I think this blanket-statement advice will serve you well: Get multiple recommendations, then vet, vet, vet.

© 2019 REM Real Estate Magazine

Fraser Valley sales up from March

Steve Randall
REP

The Fraser Valley continues to be a slower-than-usual housing market but there are some positives.

Sales in April were down 19% year-over-year to 1,383, although that was an increase of 13.3% from March according to MLS data from the Fraser Valley Real Estate Board.

While it was the second-slowest April in 10 years, consumers’ demand for housing is strong despite weakened purchase power compared to before the mortgage stress test.

Darin Germyn, President of the Board, says that certain housing types are performing better than others.

“Detached homes under one million dollars and attached homes – ranging from $400,000 to $700,000 – continue to attract buyers in the Fraser Valley. Townhome sales in Abbotsford increased by almost 60% compared to March and were on par with last year’s April sales,” he said.

Active listings increased 38.9% year-over-year and 12.3% month-over-month to 7,870 by the end of April and there were 3,391 new listings during the month, an 18.1% increase compared to March but down 1.1% compared to April of last year.

“A slower, stable market has had a positive impact on affordability in our region. Prices of typical residential homes in the Fraser Valley have decreased between 5 and 6 per cent in the last year. In the last three months, benchmark prices have either plateaued or have experienced a small recovery,” added Germyn.

Fraser Valley home prices

HPI® Benchmark Price Activity:

• Single Family Detached: At $964,600, the Benchmark price for a single family detached home in the Fraser Valley increased 0.2% compared to March 2019 and decreased 4.8% compared to April 2018.
• Townhomes: At $521,800 the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley increased 0.9% compared to March 2019 and decreased 5.1% compared to April 2018.
• Apartments: At $420,700, the Benchmark price for apartments/condos in the Fraser Valley increased 0.6% compared to March 2019 and decreased 6% compared to April 2018.

Copyright © 2019 Key Media Pty Ltd

Squamish Nation to undertake new development in Vancouver

Ephraim Vecina
Mortgage Broker News

Squamish Nation has announced its plans to begin the development of one of Canada’s largest Indigenous urban developments, slated to arise beside Vancouver’s Burrard Street Bridge.

While still in its formative stages, the project will aim to build a complex offering approximately 3,000 housing units, according to Squamish Nation councillor Khelsilem.

Khelsilem estimated that at present, approximately 1,100 of the roughly 4,000 Squamish members are on housing wait-lists.

“For a lot of other First Nations across the country, natural resources is the one option they have for growing their economies. Whereas for us, the land has been completely impacted [by the city’s growth] and so real estate is really the one thing we can get involved in that will make sense to generate revenue,” he stated in an interview with CBC News.

“[The First Nation is] seeing the significant profits that everyone else is making. We’re right in the middle and we’re not doing anything, so I think there’s reasonable impatience that we should be getting involved,” the leader added.

Currently, Squamish Nation is discussing various proposals with a developer, with the most favoured being a primarily rental housing development, while also offering affordable homes for the nation’s members.

Vancouver mayor Kennedy Stewart welcomed the plan as a natural continuation of the close alliance that the city and the First Nation have built against the controversial expansion of the Trans Mountain Pipeline.

“The thing about reconciliation is you don’t really know what it looks like until you’re in the middle of it. So I think this will set some parameters as to what us, Vancouver, being a city of reconciliation, looks like. I’m very keen to make sure this has the best chance of success,” the mayor noted.

“The city is in the middle of a housing crisis, especially when it comes to rentals,” Stewart added, praising the project’s initial goal of 3,000 residential units.

Copyright © 2019 Key Media

Canadian city sees 183% surge in foreign buyer investment

Neil Sharma
Mortgage Broker News

Foreign Investment in Montreal’s property market surged a whopping 183% in 2018 over the previous year—the likely the result of foreign buyer taxes in Toronto and Vancouver.

“It’s not a coincidence that after the foreign investor taxes in Toronto and Vancouver, interest moved to the Montreal market,” said Altus Group’s Senior Director of Innovation and Growth Strategies Vincent Shirley. “Foreign investors originally looked at the Vancouver and Toronto markets but they also recognized Montreal as a discounted market. There are more factors involved than just that: The fundamentals in Montreal are really strong right now and the job market is very good too.”

According to Altus Group’s Montreal Flash Report 2019, year-over-year investment property sales volume in the city increased 18% last year, hitting $6.5 billion, thanks in large part to renewed interest in Montreal Island properties located downtown and on either side of Mount Royal. Sales volume on the Island of Montreal reached $785 million.

The report also noted that almost half of total new condominium sales last year were concentrated in downtown Montreal, while the rest of Montreal Island received about one-third.

“There is a lot of job creation on Montreal Island and demographics are very strong,” said Shirley. “We had a lot of structural issues for about 40 years with a very high unemployment rate, but we’ve seen it go down the last two or three years. There’s a lot of compression with the unemployment rate and now we’re at 6% or so, but it’s forecasted to go down to 5.5% next year because job creation is very strong, as are prospects for future employment.”

In fact, Montreal is becoming a leading hub for artificial intelligence and its pharmaceutical sector is also robust. Shirley noted that Montreal’s universities serve as pipelines for those industries in particular.

Even more prominent is Montreal’s port, which is, bar none, Canada’s busiest.

“Montreal’s port accepts over 75% of commodities that come through all Canadian ports,” said Shirley. “A lot of venture capital is invested in Montreal’s technology and AI industries and our pharmaceutical sector is very strong.”

Despite Montreal’s good fortunes after decades of political upheaval surrounding language and Quebec’s place within Canada, there is reason for slight consternation. The Montreal municipal government intends to implement the so-called “20-20-20 rule,” says Shirley.

“It’s going to be 20% social housing, 20% affordable housing, and 20% family housing,” he said. “The real estate industry understands affordability and inclusionary zoning is important, but we just want to make sure the push for it doesn’t disturb the economics of Montreal and development doesn’t go into the suburbs.”

Copyright © 2019 Key Media

B-20 pulled down national sales

Ephraim Vecina
Canadian Real Estate Wealth

Initially meant as a strong policy intervention against red-hot home price growth in Canada’s most in-demand markets, B-20 was responsible for around 40,000 fewer transactions across the country (on a year-over-year basis) during Q4 2018, according to Toronto-Dominion economists.

In a client note last week, the bank said that the impact of the stress testing has been far more enduring and extensive than anticipated – echoing recent sentiments by Ontario Real Estate Association CEO Tim Hudak.

Hudak stated that B-20 has had a market impact “beyond what many thought was the worst case,” with resale activity declining by 11% annually in 2018, the first year of the policy’s implementation.

“Not only are many people unable to become home owners at all; others can’t upgrade as their families grow, which in turn means they aren’t selling their starter homes to people trying to buy for the first time,” Hudak wrote in a piece for Financial Post.

TD Bank economists Rishi Sondhi, Ksenia Bushmeneva, and Derek Burleton argued that immediately rescinding B-20 would noticeably increase Canadian home prices by around 6%, which will be on top of the bank’s 4% growth forecast, by the end of next year.

Considering the situation, the federal government should certainly begin looking at a more relaxed approach from here on.

“Right now it’s a one-size-fits all type of policy, and borrowers differ in their ability to service their mortgage, and they’re different in terms of their risks,” Bushmeneva said in an interview with Bloomberg.

Copyright © 2019 Key Media Pty Ltd

Polygon?s Cedar Walk at Lelem launches new Musqueam community at UBC

Barbara Gunn
The Vancouver Sun

Lelem means “home” in the language of the Musqueam, but as Doug Avis explains it, it can convey so much more.

Davis is vice-president, real estate, for the Musqueam Capital Corporation, the economic development arm of the Musqueam Indian Band, which is now developing the first phase of its 22-acre Lelem community adjacent to Pacific Spirit Park at UBC.

“The whole idea of what Lelem means — home — is of Musqueam welcoming the rest of the world to this site, to enjoy it and also to experience a bit of Musqueam culture,” he says.

To experience that culture, Avis says, is to appreciate the strong bonds of the Musqueam people.

“I can’t think of a community that’s closer than the Musqueam are,” he says. “They even call their friends cousins. So we want, in a subtle way, to encourage more social interaction than you would normally see in a development.”

Lelem, which will comprise some 1,250 homes when complete in some 10 years, will provide opportunities for residents to interact courtesy of a new 15,000-square-foot community centre, daycare and adventure playground.

Also on site, and being developed as part of the community’s first phase, will be a mixed-use village area with a plaza, grocery store, restaurants, shops, subsidized units and rental units.

But residents of Lelem — and of the nearby west-side neighbourhood — may also find occasions to strike up conversation when strolling the extensive trail system or enjoying the beauty of what Avis calls “the real jewel” of Lelem: a three-acre park of towering cedars and Douglas fir.

It’s steps from this park — so far unnamed — where the first residential component of Lelem will rise: an 18-storey concrete highrise from Polygon called Cedar Walk at Lelem. More than half of its 140 condos and townhomes have been sold.

As one of what Avis calls the Musqueam’s “preferred developers,” Polygon has erected a one-bedroom display home on the site with floor-to-ceiling windows that take in the stunning views of the enormous trees.

“That’s really the huge thing about Cedar Walk,” says Goldie Alam, Polygon’s senior vice-president of marketing. “You’re basically living in a park, but surrounded by new amenities, close to the west side, and close to UBC.”

It’s that proximity to the university — a short stroll away — that has resulted in most of the units being purchased by those with a UBC connection, Alam notes.

“Either they’ve gone there in the past and they just love the area, or they’ve got kids who are going there.”

Avis notes that Lelem is taking shape on traditional Musqueam territory included in the 2008 reconciliation, settlement and benefits agreement with the province, and takes very seriously the notion that they’re “stewards of the land.”

To that end, any trees that have come down have been — and will be — harvested and reused, in the construction of the community centre, for instance, or in benches dotting the site.

The Cedar Walk homes, which will be in proximity to such UBC amenities as the Chan Centre for the Performing Arts, the UBC Aquatic Centre and the Museum of Anthropology, will have exteriors that reflect their natural setting, both in colours and materials.

Inside, occupants will find engineered wood flooring in the main living areas and wool carpeting in the bedrooms. They will also have the choice of two colour schemes: Earth and Sky.

Kitchens will be fitted with natural wood or high-gloss white cabinets, engineered stone countertops and full-height marble tile backsplashes.

Ensuites, meantime, will have imported marble tile floors, rain shower heads, vanities with accent lighting and square undermount basins.

Homes will also have stacking washers and dryers and roller shades on all windows.

For Eric Xie, who will be graduating this month with a degree in geological engineering from UBC, a Polygon home at the university represents familiar territory.

Since 2014, when he and his family moved to Vancouver from Regina, there have been five apartment purchases — all from Polygon.

© 2019 Postmedia Network Inc.

REBGV stats show sales slump

Steve Randall
other

Home sales in the Metro Vancouver market continue their downward trend according to the latest stats.

The Real Estate Board of Greater Vancouver says that there were 1,829 sales in April, up 5.9% from March but 29.1% below the April 2018 figure and 43.1% below the 10-year average.

“Government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20 per cent, which is causing people at the entry-level side of the market to struggle to secure financing,” Ashley Smith, REBGV president said. “Supressing housing activity through government policy not only reduces home sales, it harms the job market, economic growth and creates pent-up demand.”

Inventory remains elevated with 14,357 homes available to buy on the MLS, a 46.2% increase compared to April 2018 (9,822) and a 12.4% cent increase compared to March 2019 (12,774).

New listings in April totaled 5,742, down 1.3% year-over-year but up 16% from March 2019.

“There are more homes for sale in our market today than we’ve seen since October 2014. This trend is more about reduced demand than increased supply,” Smith said. “The number of new listings coming on the market each month are consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”

Sales, prices by property type

• Detached home sales totalled 586 in April 2019, a 27.4% decrease from the 807 detached sales in April 2018. The benchmark price for a detached home is $1,425,200. This represents an 11.1% decrease from April 2018, a 0.8% decrease compared to March 2019.
• Apartment home sales totalled 885 in April 2019, a 32.3% decrease compared to the 1,308 sales in April 2018. The benchmark price of an apartment is $656,900 in the region. This represents a 6.9% decrease from April 2018 and is unchanged from March 2019.
• Attached home sales totalled 358 in April 2019, a 22.8% decrease compared to the 464 sales in April 2018. The benchmark price of an attached home is $783,300. This represents a 7.5% decrease from April 2018 and is unchanged from March 2019.

Copyright © 1996-2019 Key Media Pty Ltd

REW has historical data on sales and listings throughout the Lower Mainland

REW

REW has historical data on sales and listings throughout the Lower Mainland. We used this data to not only see what’s selling, but to also find trends relevant to home buyers or sellers.

Our focus was on which pockets of Greater Vancouver have strong sales.  We looked at data during the most active selling months (Sept – Oct 2018 and Feb – Mar 2019) and analyzed areas with the highest sales-to-active listings ratio, a handy benchmark that compares the buyer demand against the supply and shows us the rate at which properties are selling. If an area has a sales-to-active listings ratio greater than 20%, it typically indicates a seller’s market.

Highest sales pockets in Port Coquitlam, Langley, and North Vancouver

So, what’s selling in today’s market? The bulk of high sales are centered around a few key corridors across Greater Vancouver. The Tri-Cities had zones of high sales-to-active listings ratios (SAR) along the corridor of Port Moody Centre and Central Port Coquitlam, as did New Westminster’s Uptown and Glenbrooke North.
Most impressive, however, were the results from Surrey and Langley. The corridor of Cloverdale, Clayton, and Willowbrook across both cities was high in both sales ratios and volume, with Langley’s Willowbrook-Willoughby neighbourhood boasting the highest number of sales amongst zones with high SAR. In general, Langley also offered the best value, with properties sold at an attractively low price per square foot of $359 for detached houses and $387 for townhouses, the lowest averages in the region.

While the City of Vancouver might not offer the biggest bang for your buck in the region, the neighbourhoods of Kitsilano, Fairview, and Mount Pleasant still had pockets of high SAR. Most eyes seem trained on Mount Pleasant, which had the lion’s share of sales in the city, and multiple zones with an SAR higher than 25%.
But people looking for more affordable waterfront are focusing on North Vancouver. The city’s three neighbourhoods of Lower Lonsdale, Lynn Valley and Lynnmour were very active, with all three having areas with an SAR of at least 27%, and Lower Lonsdale having the highest sales.

Condominiums and townhouses are the names of the game

If the ‘where’ of today’s market sales is a bit scattered and hazy, the ‘what’ is crystal clear: two-bedroom condos and townhouses. Those high sale zones in North Vancouver and Langley were composed almost entirely of townhouse sales, as were most in Surrey and Langley. In fact, all across Greater Vancouver, the zones of high SAR were made up of mainly condo and townhouse sales.

“Those are the markets that are absolutely the hottest right now, the two-bedroom townhouse,” says realtor Rob Zwick of Stilhavn Real Estate Services.  

The REW data backs up Zwick’s claim, as all of the high-sales zones around Greater Vancouver averaged around two bedrooms and two bathrooms for condominiums and townhouses sold. Vancouver itself hovered closer to an average of one bed and one bath for its condos, and although there were a few three-bedroom options, they were few and far between.

What if you’re in the market for a house?

While there weren’t many detached house sales in the areas with high sales activity, one glaring exception was Langley’s Walnut Grove neighbourhood. Alongside nearby Willowbrook-Willoughby, it had high sales activity zones focused almost entirely on single-family homes, and it boasted the highest SAR of all Greater Vancouver zones at 43%.

The housing market in general, however, still lags behind. The Real Estate Board of Greater Vancouver pegged the SAR in March for detached homes in Greater Vancouver at only 9.4%, with a benchmark price ten percent lower than March of last year.

Fortunately, Zwick believes that the low price reports and low sales ratios across the Greater Vancouver region don’t mean the market is going to get worse. Instead, they’re reflective of a market flooded with poor listings and buyers that are reacting to the negativity around the market.

“There’s a lot of stats telling the public that this market isn’t doing very well,” says Zwick. “It doesn’t give them the confidence to go through with purchases.”

“SAR is not a full indicator of what’s actually going on. If you have a lot of inferior product on the market and buyers not willing to buy, you’re not going have a very good ratio. I find that the quality of listings on the market is poorer than it’s been in a very long time.”

Optimism for buyers and developers on the horizon

That lack of buyer confidence seems to be on the way out. Zwick’s sales this year through March were 50% lower than the year previous, until he had six accepted offers over the span of one weekend.

“That’s a huge indicator for me, that’s where I have some very cautious optimism on the market. I wouldn’t have said that in the Fall or in January or February.”

And buyers aren’t the only ones in the market that are starting to gain in confidence. Mayur Arora, realtor and owner of Oneflatfee.ca, is sensing an increase in condo and townhouse development.

“I’m noticing there is a bit of confidence in the developers,” says Arora. “They were nervous six months ago, but now there’s a bit of renewed interest in them being able to invest.”

Arora thinks that our days of seeing dramatic drops in prices and mortgage availability are limited. Vancouver remains a place where many desire to live, and the B.C. economy is still largely dependent on the real estate market.

“What I’ve forecast going forward is that the market will stabilize where it is right now. I don’t see the prices going down any further.”

With a real estate market prime for stabilization and prices evening out, buyer confidence should be the only thing trending upwards.

© 2019 REW. A Division of Glacier Media