Aggregate home prices at $1,208,674

Ephraim Vecina
Canadian Real Estate Wealth

Two-storey homes remain Vancouver’s most expensive residential asset class, with an aggregate price of over $1.5 million.

The latest edition of the Royal LePage House Price Survey reported that even with a 3.3% annual decline during the second quarter of the year, the asset class still commands a value of $1,509,711.

This far outstripped other strong performers in Vancouver. Bungalows declined by 7.6% to end up at $1,315,612. Condos dropped by 2.8% annually to reach $668,389.

The aggregate price of all residential property types was at $1,208,674 during Q2 2019. Considering these values and the fact that Vancouver is seeing elevated inventory, it is not surprising that many would-be buyers are adopting a wait-and-see strategy instead.

“A wider variety of available homes to choose from is giving home buyers extra time to plan and make decisions,” Royal LePage Sterling Realty general manager Randy Ryalls explained.

“A better understanding of the reality of the real estate market in the region is helping both home buyers and sellers to manage expectations and make better-informed transactions.”

Sustained decline is highly likely. Royal LePage predicted that by the end of this year, Greater Vancouver will experience a 5.5% annual drop in aggregate prices.

“Affordability in the British Columbia housing market remained on provincial and federal government agendas during the second quarter of the year. A combination of recent economic announcements including the foreign buyers tax, the speculation and vacancy tax, and the mortgage stress test contributed to elevated inventory levels and a wait-and-see approach from potential buyers,” Royal LePage noted.

“As new building construction remained on hold during the second quarter of 2019, summer home buyers will have the opportunity to choose from affordable listings before the traditional fall price uptick.”

Copyright © 2019 Key Media Pty Ltd

Lone Wolf Technologies and Real Estate Webmasters (REW) recently partnered

REM

Lone Wolf Technologies and Real Estate Webmasters (REW) recently partnered to integrate the REW platform and Lone Wolf’s transaction management solutions, TransactionDesk and zipForm Plus.

Brokers and agents using Lone Wolf’s website solutions can now upgrade to REW’s more advanced web solution, the companies say.

“We chose to partner with Real Estate Webmasters for a number of reasons – the quality of their product, the growth of their success, and the reputation of their company primary among them,” says Jack Blaha, CEO of Lone Wolf Technologies. “But we also chose this partnership because it furthers our mission to simplify the entire real estate transaction process. We want to build an unrivaled technology ecosystem for real estate professionals, one that integrates the solutions they use every day and simplifies their workflow from lead to contract to revenue. This partnership is the first of many that will support us in this mission.”

REW offers website, iOS and Android apps, lead generation, search engine optimization and CRM services. As part of the partnership, Lone Wolf will discontinue its current website offering and users will be offered an opportunity to transition to the REW solution.

“We are extremely excited to be able to bring the best-in-class of real estate websites and CRM from Real Estate Webmasters and combine it with the amazing transaction capabilities of Lone Wolf’s products,” says Morgan Carey, CEO of REW. “When you combine where a real estate lead comes from with how much an agent or broker makes from the close of that sale, it is truly chocolate and peanut butter.”

Joe Kazzoun, GM of transaction management at Lone Wolf says, “This is the next step in real estate technology. Real estate has so many different components and this has caused its technology to develop in siloes – until now. We’re bringing all of the industry’s disconnected tools together to make real estate simpler for everyone involved – from the second a lead looks at a listing ’til the day the agents’ commissions are paid out. We’re more than happy to partner with technology leaders to make that happen.”

© 2019 REM Real Estate Magazine

Stylish Southgate takes a convenient and walkable Kelowna location

Claudia Kwan
The Vancouver Sun

Southgate

Project Address: 2627 Gore St., Kelowna

Developer: Teano Holdings

Architect: Matt Johnson, Architecturally Distinct Solutions

Interior design: Tamara Jones, Forme Interior Design

Project size: 19 homes

Unit sizes: 467 —1,522 sq. ft.

Price: from $299,900

Sales centre: 2640 Pandosy St., Kelowna

Website: liveatsouthgate.com

For starters, Bakonyi says the location in Pandosy Village is tremendously convenient for his project, dubbed Southgate. Anyone having to commute downtown, — to Okanagan College’s Kelowna campus or to work at Kelowna General Hospital — would be able to do so in about five minutes. Kelowna Secondary School is about the same distance, with other schools even closer. Knox Mountain Park, UBC Okanagan and the Kelowna airport are easily accessible.

“Pandosy leads you to where all of the wineries are, the golf courses – like a village by the (Okanagan) lake,” he says. “It’s a cute Kitsilano-like neighbourhood with the lake running parallel to you, beach access, tennis – it’s one of the hottest areas for someone who wants to live, work and walk around to go to restaurants.”

Bakonyi is president of Teano Holdings, and the team for his Southgate project includes Matt Johnson of Architecturally Distinct Solutions, Tamara Jones of Forme Interior Design and well-known local builder Worman Homes.

“Shane Worman from Worman Homes has been a visionary in Kelowna; his homes have a beautiful brick look and style that’s pretty distinctive,” Bakonyi says. “I wanted to be part of the continuity of the community and making it a better place to be.”

Renderings of Southgate show a gleaming white building façade delineated with a striking black roofline, as well as dark-framed glass doorways and windows. Balcony railings are limned in more black, in a modern take on the classic palette of black and white. The outdoor spaces are sizable, as befitting a building where residents will want to take advantage of indoor-outdoor living, especially during the summer months. On the fourth floor, the penthouses are stepped back under the roofline to offer shaded, expansive private decks.

The white theme continues inside, with white cabinetry in the bathrooms and kitchens. The black is softened to grey, Carrera marble-style veining in the white quartz countertops and backsplashes. A darker palette is also available for those who prefer it, as is an upgrade from vinyl plank flooring to wood and carpet in bedroom areas. White roller shades are standard throughout, as are stainless steel kitchen appliances.

The open-concept kitchen, complete with a central island, was designed with entertaining in mind. Throughout the course of the day, it could be variously used to grab breakfast, prepare meals or serve up canapés at an evening gathering. The idea was to have the home feel wide open and spacious.

Bakonyi, who has family in the Kelowna area and has spent a lot of time in the region, has noticed an influx of young people moving to the city, particularly within the technology sector. Many, after selling a home in the Lower Mainland, are finding they can easily buy in Kelowna’s more affordable market and still have some cash left over. He expects Southgate’s purchasers to be almost entirely owner-occupiers, although long-term rentals are allowed and vacancy rates are low in Kelowna.

The design team tried to think of all of the little things that would make the homes enjoyable. They included as many oversized windows as possible, in order to let the maximum amount of natural light in, and to allow residents to drink in the views of Okanagan Lake or bustling streetscape. They considered easy transitions between different living areas, to allow for traffic flow from kitchen to living areas to outside. Exterior natural gas hookups are included for barbecues on the balconies and decks, which range in size from approximately 300 to 500 square feet.

The building may be wood frame, but additional soundproofing measures have been incorporated into walls and floors to try and minimize sound transfer between homes. Almost all homes have parking stalls. Secure storage lockers have been sized such that there is room for recreational toys to be stored. The easy proximity to parks and recreational areas means bikes, boats, skis and snowboards, and other assorted gear could be in frequent rotation.

Bakonyi says the overall idea is that residents will fully embrace the neighbourhood and everything it has to offer.

“It’s a residential project, but it’s almost recreational at the same time,” he points out. “It’s like resort-style living in a bustling, vibrant area – the best of all possible worlds.”

© 2019 Postmedia Network Inc.

Co-working corporation will move into super-green, 32-storey downtown office building upon completion in 2023

Frank O’Brien
Western Investor

Co-working giant WeWork has snapped up 10 floors of BentallGreenOak’s under-construction, super-green office tower in downtown Vancouver, according to a July 12 report by BNN Bloomberg.

The 32-storey office tower at 1090 West Pender Street is the first Vancouver flagship building from the merger of developers Bentall Kennedy and New York investment firm GreenOak Real Estate. The tower is scheduled for completion by February 2023 and WeWork is the first company to announce it has signed up to lease space in the building, although owners BentallGreenOak will also take space in the new tower.

WeWork already has a close relationship with Bentall Kennedy, as the co-working company currently leases six floors in the Bentall Two tower at 555 Burrard Street in downtown Vancouver, just around the corner from BentallGreenOak’s new office site.

The “B6” building is aiming for a LEED (Leadership in Energy and Environmental Design) Gold standard in construction, and will feature a green roof and the latest WELL v2 registration. WELL, from the International WELL Building Institute, is a global movement to transform buildings by combining occupant health and comfort with sustainable design.

The B6 tower dovetails with the City of Vancouver’sGreenest City Action Plan. A main goal of this policy is to move buildings toward low or near-zero carbon emissions by 2030, a key part of the city’s recently announced “six big moves to reduce carbon pollution” strategy.

“Designed for efficiency, B6 is wrapped with sustainable features like triple-glazed windows and efficient mechanical systems for a more healthy and energy-efficient experience for our tenants,” said Tony Astles, managing partner and head of Canadian real estate services for BentallGreenOak.

Copyright © Western Investor

Where the housing hotspots have been this spring

Joannah Connolly
Western Investor

In B.C.’s currently lukewarm residential real estate sector, it’s easy to read the headlines and imagine it’s becoming a buyer’s market. But that’s not true of all areas – or all property types.

This infographic by our sister website REW.ca reveals that there are many Vancouver Island hotspots that remain firmly in a seller’s market.

The study of real estate activity from February to May 2019 looks at the sales-to-active-listings ratio (SAR) in each individual neighbourhood, for all property types combined. A figure over 20 per cent indicates a seller’s market, while 12 to 20 per cent is a balanced market, and below 12 is a buyer’s market.

REW found that 34 Island neighbourhoods are still seller’s markets. The three hottest areas were in South Jingle Pot in Nanaimo, Campbell River Central and Victoria’s Jubilee neighbourhood, all at 32 per cent SAR.

The study also broke out SAR by individual property type to find the strongest neighbourhood markets for detached house and condo sales, relative to supply. In the single-family market, Nanaimo’s Old City was by far the hottest spot with an SAR of 67 per cent. Condos are most in demand in Victoria West, with a 33 per cent SAR.

Check out the infographics and see if your neighbourhood is on the list, below.

Copyright © Western Investor

Metro Vancouver city council nixed rental building

Ephraim Vecina
Mortgage Broker News

The Metro Vancouver city council has nixed developer Mahdi Heidari’s plans for an 84-unit rental building in White Rock, marking the latest in a string of rejected projects that would have otherwise offered some help in easing the region’s dangerously low vacancy rates.

The Heidari project – which would have replaced an antiquated three-storey, 24-unit rental building – was projected to boost the site’s density by 15%, from a floor-area ratio of 2.8 to 3.23.

Among the reasons for denial were concerns over the project’s impact on the locale’s infrastructure, especially storm-water and sewer plans.

“We’re disappointed, to be honest,” Heidari told the Vancouver Sun. “We are hoping council would accept this so we can move forward quickly. With the rejection, we have to go back and redesign this and these things take a long time to prepare and put the details together.”

While Vancouver has approved a majority of 2019 proposals so far, other notable refusals include a proposal for a 21-unit rental town house on Granville Street, which will be situated right beside a hospice.

Urban Development Institute former chair Jon Stovell explained that council is likely influenced by factors such as interest rates, tenancy regulations, and hostile responses from residents pushing back against any new development.

“Even rental projects are seen as something people don’t necessarily want in their communities,” Stovell said.

Improved inventory helped pull down the average housing price across Greater Vancouver during Q2 2019, according to the latest edition of the Royal LePage House Price Survey.

“A wider variety of available homes to choose from is giving home buyers extra time to plan and make decisions,” Royal LePage Sterling Realty general manager Randy Ryalls said.

“A better understanding of the reality of the real estate market in the region is helping both home buyers and sellers to manage expectations and make better-informed transactions.”

The aggregate housing price in the market dropped by 4.1% year-over-year during the quarter, down to $1,208,674.

Two-storey homes remained among the highest priced assets, even with a 3.3% decline to $1,509,711. Bungalows fell by 7.6%, but still at a red-hot $1,315,612. Condos inched back by 2.8% annually to reach $668,389.

Copyright © 2019 Key Media

BC speculation tax to pay for infrastructure services

Steve Randall
REP

The Speculation and Vacant Homes tax (SVT) introduced by the British Columbia government will bring in $115 million to help support affordable homes in the province.

The government says that more than 99.8% of British Columbians are exempt from the tax and that around 80% of those paying the tax were foreign homeowners, satellite families, and Canadians living outside the province.

“The speculation and vacancy tax was designed to make sure foreign owners, satellite families and people who use local services without paying income tax in B.C. contribute to the quality of life we all enjoy in this province,” said Carole James, Minister of Finance. “We are tackling our province’s housing crisis and this tax is a key part of our 30-point-plan to root out speculation and bring moderation to the housing market.”

The government’s stats show that as of July 4, 2019 the taxpayers includeds:

• 4,585 foreign owners
• 3,241 satellite families
• 1,555 Canadians living outside of B.C.
• 2,410 B.C. residents
• 238 others (such as properties held through corporations and trusts, often with multiple owners)

The data also shows that homes owned by those paying the tax were, on average, 46% more expensive than homes that are exempt.

The payment date for the SVT was July 2, 2019. Any owners who live in a taxable area and have still not completed a declaration will be contacted by the Ministry of Finance outlining how they can complete an online declaration and claim an exemption.

Carole James will meet with mayors from the municipalities where the tax applies to share data and analysis from the SVT.

Copyright © 2019 Key Media Pty Ltd

New house prices in Canada slipped 0.1% in May

Steve Randall
REP

New house prices in Canada slipped 0.1% in May, following three months unchanged.

Data from Statistics Canada shows that the largest declines were in Saskatoon (-0.5%) and Victoria (-0.4%) amid worsening market conditions with unemployment rising in both CMAs.

There were also declines of 0.3% for new house prices in Edmonton, Kelowna, Toronto, and Vancouver.

Prices in Charlottetown saw the largest increase in the month, up 1% from April.

Over 12 months, new house prices nationally were unchanged in May.

The report acknowledges the larger down payment now required by potential buyers of new homes due to the combination of factors including higher home prices, rising mortgage rates, and the stress test for new mortgages.

The largest annual decline in new home prices was in Regina (-2.7%) followed by Saskatoon and Victoria which both slipped 1.4%.

There were also decreases for Toronto (-0.6%) and Vancouver (-0.9%) while Ottawa posted the largest increase (4.7%) followed by London (3%) and Montreal (2.7%).

Copyright © 2019 Key Media Pty Ltd

Bank of Canada interest rate unchanged

Steve Randall
Canadian Real Estate Wealth

The Bank of Canada decided to hold interest rates steady at its meeting Wednesday, citing the pressure of global trade tensions and some temporary factors boosting the Canadian economy.

The decision to hold at 1.75% was expected by most economists, who were perhaps keener to assess the tone set by Governor Stephen Poloz.

The BoC now expects global GDP to grow by 3% in 2019 and to strengthen to around 3.75% in 2020 and 2021, with the US slowing to a pace near its potential. Escalation of trade conflicts remains the biggest downside risk to the global and Canadian outlooks.

The Canadian economy appears to have done better than expected in the second quarter partly due to the reversal of weather-related slowdowns in the first quarter and a surge in oil production. Although these are temporary boosts, the BoC expects the economy to return to growth around its potential as expected this year.

Housing market contributing to growth

At the national level, the housing market is stabilizing the bank said, although it noted that there are still significant adjustments underway in some regions.

“We’re seeing signs that the housing market is improving in the Greater Toronto Area, while prices and activity are still adjusting to more sustainable levels in the Greater Vancouver Area, and Alberta’s market continues to adjust to lower oil prices,” said deputy governor Carolyn Wilkins.

She added that “At the same time, interest rates on five-year fixed-rate mortgages have fallen recently to around where they were five years ago, which is relevant for people buying a new house or renewing their mortgage. It also reinforces our view that residential investment is once again contributing to growth.”

Copyright © 2019 Key Media Pty Ltd