Foreign ownership in American real estate sits at about eight per cent – but that percentage is worth $82 billion US, says the National Association of Realtors.

Homes in many parts of the United States are now worth what they were nearly 10 years ago in 2002, says a report from the association – and it’s this decline that is attracting foreigners, mostly Canadian homebuyers, to snap up a seasonal home at dirt-cheap prices.

From a seller standpoint, the market is “pretty bleak,” says Tom Burk, an associate broker with Sotheby’s Realty International who has a long career of selling real estate on both sides of the 49th parallel. “Given all the bad economic news in Europe and the near political paralysis in the U.S., markets there are struggling to show any kind of consumer confidence.”

In cities where investor interest is high “like Phoenix, Palm Springs or Las Vegas, there is optimism – but in most cities, it’s pretty bleak,” says Burk.

A survey by U.S.-based Credit Sesame of where foreigners are buying, what they are purchasing and how much they are paying shows that the largest group comes from Canada, with Asians and Europeans second and third.

Arizona is the fourth most popular destination for these buyers, trailing Florida, Texas and California.

The largest percentage are buying detached single-family homes for use as a primary residence – and they are paying less than $100,000 each.

Recent reports have claimed that Canadians are the top-ranked outof-state buyers of homes in Arizona, which is still under siege by the flagging economy.

The average Arizona home now sells for about half of what it would have five years ago, says the Federal Housing Finance Agency in the U.S.

The price dropped another 4.6 per cent from the first to second quarter of this year – driving the decline to nearly 15 per cent compared to the same period last year.

The housing market likely won’t turn around until the fundamentals improve, said Marshall Vest, an economist at the Eller College of Management at the University of Arizona in an interview with the Arizona Republic.

But that won’t start until the excess of available homes is absorbed, he said.

“We have enough vacant houses in Arizona to accommodate an entire decade worth of population growth – and that’s if the population were growing,” said Vest.

The recession has changed the way people look at real estate, says Burk.

“It has affected people’s ideas about timing, but it has not affected the basic belief that buying a home and raising a family in that home is fundamental to American values, in many cases,” he says.

Burk’s views are shared by Frank Anton, CEO of the national research firm of Hanley Wood in the U.S.

“We thought people would be soured after watching home values fall, but instead we found the typical American still places high value on home ownership,” says Anton. “We found this holds across all demographic groups and across the country, even in hard-hit places like Arizona and Nevada.”

Credit Suisse Group surveys real estate professionals in several cities in the United States on a monthly basis.

The global financial services company uses 50 as the benchmark for each of nine questions. Above 50 indicates a positive trend, while below 50 means a negative one.

For Phoenix, the report says home prices held steady for October (50 points versus 40 in September), listings remained high (76 points), and buyer traffic inched up to 40 points.

Down the road in Tucson, buyer traffic jumped to 43 points from 27, while prices totalled 43 points (an improvement from 27).

“The economy is poor and unemployment is too high. Nobody wants to buy in this type of environment,” says one realtor.

Las Vegas is also being hit hard by the continuing economic chaos.

“Traffic remains steady on interest from deal-seeking buyers,” says the Credit Suisse report.

But prices remained under pressure with an index of 44, down from a previous 48, while listings were high at an index of 59.

“Low prices and interest rates continue to spur inquiries and activity,” says a Vegas realtor in the survey. “Cash buyers are really driving sales.”

In San Diego, buyer traffic remained very weak with an index of 15, while house prices sat at 25.

“The constant negative news is affecting buyers’ confidence and there is a lot of uncertainty about a potential double-dip (a return of inflation),” says a realtor.

Meanwhile, traffic levels in the San Antonio, Texas, market left a lot to be desired – falling to an index of 14 – while the price index sat at 36.

“Many sellers would like to take advantage of the low interest rates, but we need the buyers to feel confident to keep the ball rolling,” says one real estate professional.

In Miami, Fla., things were looking up, with traffic improving to an index of 39 while priced edged up to 48.

“Cash buyers, both domestic and foreign, are controlling the market,” says a realtor in the Miami area.

Meanwhile, Portland, Ore., which sees buyers from B.C., has seen a strong jump in traffic – almost doubling to an index rating of 25, while prices held steady at 19 points.

Traffic is on the increase, says Debbie Tebbs, broker/ owner of Cascade Sotheby’s International Realty.

“They are doing so because they believe we are at the bottom,” she says.

“There has been a price correction of up to 60 per cent in some areas.”

Source: Marty Hope, Calgary Herald

The Canadian housing market is at risk of a price correction and remains the chief domestic vulnerability to the country’s economy in the new year, according to two new reports.

They warn of an overvaluation of Canadian housing by 10% to 15%, aggravated by rising levels of household debt.
Entering a year laden with potential global economic shocks, Canadian authorities need to beware of housing risk as the chief domestic risk, the International Monetary Fund warned.

“Adverse macroeconomic shocks, such as a faltering global environment and declining commodity prices, could result in significant job losses, tighter lending standards, and declines in house prices, triggering a protracted period of weak private consumption as households reduce their debt,” the IMF said in its annual report on the Canadian economy.

Should the European sovereign debt crisis destabilize the global economy, triggering in Canada a 15% decline in house prices, combined with a severe downturn in construction activity “could result in a GDP decline of some 2.5% over a period of two years relative to the baseline,” the report said.

TD Economics also warns of a possible housing correction bringing prices more in line with fundamentals next year and into 2013.

Deciding the fate of the housing market will be the opposing forces of rock-bottom interest rates and economic weakness, TD economist Sonya Gulati said in a report.

“Looking ahead, we anticipate a tug-of-war action to take hold in the Canadian real estate market. At one end of the rope is the magnetism of low interest rates; at the other are subdued prospects for economic, income and employment growth.

“Ultimately, we expect the economic side of the equation to win out over the near-term,” she said.

That would mean a soft first half of the year largely as a result of external economic tensions. Even if those headwinds subside in the latter half of 2012, rising interest rates will restore the pressure on housing prices.

On average, and with great regional variation, Canadian housing prices could fall by 1.9% next year and 3.6% in 2013, Ms. Gulati said. Home sales could suffer comparable declines, while average starts should fall to 170,000 to 180,000 annually over the next two years.

“Collectively, these adjustments will gradually erase the over-valuation in the marketplace,” Ms. Gulati said.

The pace of adjustment could become decidedly less gradual if Europe fails to contain financial contagion. And if households continue to take on debt, the eventual deleveraging effect could be more pronounced.

With income growth lagging borrowing, household debt has risen to a record 150% of disposable income, a burden the Bank of Canada said represents the greatest domestic threat to economic stability.

While low interest rates continue to encourage borrowing growth, the IMF lent its support to the central bank’s accommodative rate policy.

“Should the recovery be accompanied by further sustained increases in mortgage debt as a share of disposable income spurred by low interest rates, a tightening of macroprudential policies by the government may be needed,” it said.

Source: Tim Shufelt, Financial Post

Vancouver Sun December 10th, 2011

4096 Napier St., Burnaby

Type: 5-bedroom, 5-bathroom detached
Size: 3,400 sq. ft.
B.C. Assessment, 2011: $715,000
Listed for: $999,900
Sold for: $990,000
Sold on: Oct. 26
Days on market: 9
Listing agent: John Conte at Sutton Centre Realty
Buyers agent: Cathy Chin at RE/MAX Central

The big sell: There is a strong European influence to this home in Burnaby’s Willingdon Heights neighbourhood: It was originally a custom construction by a German builder in 1978 before undergoing renovation by an Italian contractor some years later. Each of the three floors has eight-foot ceilings, and there are draught-preventing double-paned vinyl windows throughout the property, as well as distinctive tile flooring. The home’s features include a steam shower off the master bedroom, a sunken family room with a floor-to-ceiling Squamish stone fireplace, stainless steel appliances and undermount sinks. As well, there’s a 24-by-23-foot southern-exposed concrete deck with sweeping city views, a solar-powered remote-controlled gate that opens to a paved parking area and double-car garage, and pressure-treated cedar gambrel siding. The property sits on a 37-by-122-foot lot and according to agent John Conte, the 3,400-square-foot house is larger than what would be permitted with current bylaws.

1115 Cloverley St., North Vancouver

Type: 4-bedroom, 2-bathroom detached
Size: 2,421 sq. ft.
B.C. Assessment, 2011: $647,000
Listed for: $699,000
Sold for: $732,000
Sold on: Nov. 14
Days on market: 7
Listing agent: Helen Grant at RE/MAX Crest Realty
Buyers agent: Sarina Lui at Angell Hasman & Assoc. Realty

The big sell: Listing agent Helen Grant reports that she had 70 people through her first – and only — open house, with offers presented the following evening. The result? An unconditional offer of $33,000 over the asking price. Two of the major attractions of this rancher must be the views that encompass Vancouver’s harbour and Ironworkers Memorial Bridge, and the location in the family-friendly Calverhall area, which enjoys trails and proximity to Brooksbank elementary, Sutherland secondary, and the Park and Tilford Shopping Centre. The 1955 home has hardwood floors, two wood-burning fireplaces, and a new fenced front yard and paved driveway. The convenience factor includes a sundeck off the kitchen, three good-sized bedrooms on the main floor and a one-bedroom guest suite or mortgage-helper on the lower level. As well, there’s a 26-by-12-foot family/recreation room, a den, a 19-by-5-foot laundry room, ample storage, and a 7,000-square-foot lot.

3240 143A St., Surrey

Type: 6-bedroom, 5-bathroom detached
Size: 5,100 sq. ft.
B.C. Assessment, 2011: $1.244 million
Listed for: $1.499 million
Sold for: $1.46 million
Sold on: Oct. 30
Days on market: 89
Listing agent: Mike Grahame at Home life Benchmark Realty
Buyers agent: John Grauer at Macdonald Realty Westmar

The big sell: Property experts always say location is key, and the builders of this 2004 home in South Surrey’s Elgin Estates must have had that in mind as they took advantage of a cul-de-sac location, a sunny south exposure, and a private fenced back yard adjacent to a greenbelt. This custom-built three-level home has a soaring entryway, and an open design that allows for plenty of natural light. There is wide-plank flooring throughout the main and upper floors, extensive use of crown moulding and window casings, and a spacious kitchen with granite countertops and bespoke cabinetry. The master bedroom is 20 by 14 feet with a spa-like ensuite, and views of the landscaped garden. The second bedroom also has an ensuite and all four upstairs bedrooms have walk-in closets. The property has a full basement that contains two further bedrooms, a rec room and a wet bar.

© Copyright (c) The Vancouver Sun

Multi-family housing starts were up in Greater Vancouver in November over last year, while single family starts were down, Canada Mortgage and Housing Corp. reported Thursday.

“We have seen a reduction in single-family housing starts so far this year, and sort of a resurgence in the multi-family sector,” said Robyn Adamache, CMHC’s senior market analyst. “We’re starting to see some of the larger condo projects starting again, but we’re nowhere near the levels we were in our peak year, 2007.”

Nationally, housing starts declined to 16,615 from 17,637, with B.C. one of only two regions showing an overall increase from 1,609 to 2,241. Urban Quebec also showed a small increase.

Adamache said immigration drives demand in British Columbia and job growth in Vancouver has kept demand for new homes up.

“I think part of what’s going on is we do have a fairly balanced resale housing marking out there, so there is fairly steady demand,” Adamache said. “Part of what’s driving this is ongoing population growth, or people moving here from other countries. In Vancouver, we get 35,000 or 40,000 people moving here every year.”

There were 1,686 housing starts in November in the Vancouver CMA, up from 918 in November 2010. Single-family starts were at 281 for November, down 10 per cent from 2010. Multi-family starts, which include semi-detached, townhouses and apartments, were at 1,405 for November, up a whopping 130 per cent from November 2010.

The year-to-date figures show an overall increase in the Lower Mainland of 23 per cent for 2011 so far over 2010; broken down, there was a 21-per-cent decrease in single-family starts, and a 44-per-cent increase in multi-family starts. This year-to-date shows a total of 13,295 multi-family housing starts, compared to 16,525 in 2007 when housing starts peaked.

The drop in single-family starts could be related to the referendum defeat of the harmonized sales tax, which applies to new homes and which the provincial government said will be phased out by March 2013. Multi-family developments would not be affected in the same way because of the time it takes to build them and because many condos and townhouses would be below the $525,000 threshold for HST.

Richmond and North Vancouver were hot spots for growth, each showing an 89-per-cent increase in housing starts for year-to-date over last year. North Vancouver had 920 housing starts this year so far compared to 486 at this point last year, while Richmond had 2,355 starts compared to 1,248 at the same point last year. The vast majority of those units were multi-family developments.

“Richmond is a big recipient of people moving here from other countries, so that could be driving the demand,” Adamache said.

Because there was a significant slowdown in housing starts in 2009, and because it takes at least two years to complete a multi-family development, there will not be a lot of completed condos flooding the market in the near future, Adamache said.

Source: Tracy Sherlock, Vancouver Sun

The more financially unprepared you are for retirement, the more likely it is that there’s a reverse mortgage in your future.

Sadly, we seem to be poised for big growth in reverse mortgages.

“Seniors today are living longer, they’re spending more and they’ve saved less,” said Greg Bandler, senior vice-resident of sales and marketing at HomEquity Bank, the country’s sole provider of reverse mortgages (under the name Canadian Home Income Plan). “They also have so much of their net worth tied up in their home, a very illiquid asset. We’re all about helping them unlock that asset and provide some liquidity so they can have some cash flow and do the kind of things they want to do.”

The plight of the senior who didn’t save enough for retirement – get ready to hear more about it as people 65 and older become a bigger and bigger segment of the population. Where can cash-poor seniors find some money? Reverse mortgages are an easy option (I’ll look at some other possibilities in an upcoming column).

Here’s how a reverse mortgage works in three steps:

1. Borrow up to 50 per cent of the appraised value of your home.

2. Spend the money as you see fit.

3. Repay the principal, and interest that has been accumulating, whenever you sell your home.

It’s rare to hear financial advisers unreservedly criticize a product, but this does happen with reverse mortgages. “The reverse mortgage, to me, has always been the lender of last resort,” said Clay Gillespie, an adviser with Rogers Financial Group in Vancouver, who mainly has seniors as clients. “There are very few cases where I believe it makes sense to take out a reverse mortgage.”

The points against reverse mortgages include hefty set-up fees and higher than usual mortgage rates. But the biggest issue is the way interest compounds. You know how you get paid interest on interest when you invest in a term deposit? With a reverse mortgage, many people will end up paying interest on interest. That’s because unpaid interest on your loan gets added to the principal and generates a bigger interest bill moving forward.

If you keep a reverse mortgage going for many years, a worst-case result would be that you’re left with little or nothing after repaying the accumulated interest and principal and covering the costs associated with selling your home.

HomEquity Bank’s Mr. Bandler said reverse mortgage holders have on average retained 50 per cent of the value of their homes when they eventually sold. He also said that a rising real estate market can offset the effects of a reverse mortgage by boosting the value of the remaining equity in your home.

A sales presentation used by HomEquity Bank includes a slide showing that home prices rose at a national average annual rate of 5.91 per cent for the 15 years to Sept. 30. But the chances of prices rising at that rate in the years ahead are slim. More likely, prices will coast or fall in the near term.

Combine falling home prices and a reverse mortgage and you could see your home equity dissolving in a way that doesn’t leave much when you sell in the future. Don’t worry – you will never owe HomEquity Bank more than the fair market value of your home. If you sell for less than you owe, HomEquity Bank eats the difference.

HomEquity doesn’t leave this to chance, though. The younger you are when you apply for a reverse mortgage, the less equity you can take out. If you sign up at the minimum age of 55, Mr. Bandler said you would be capped at 20 to 25 per cent of the equity in your home. “We’re very conservative lenders,” he said. “That conservative approach is baked into our model.”

HomEquity Bank became a full-fledged bank in 2009, enabling it to offer lower interest rates on reverse mortgages. This helps explains why the volume of new reverse mortgages was up 87 per cent last year over 2009. “The CHIP Home Income Plan is being transformed from a niche product to a mainstream solution that will increasingly be included in Canadian seniors’ financial plans,” the parent company’s 2010 annual report says.

In a world where people are living longer, spending more and saving less, the reverse mortgage is probably a necessity. The less you prepare for retirement, the more likely you are to need one.

Some facts and figures on the Canadian Home Income Plan reverse mortgage:

Setting one up

Set-up costs: As much as $2,500 or so to cover appraisal, legal fees and administration/closing costs.

Interest rates: 4.75 per cent for a variable rate; 5.95 per cent for a five-year fixed term.

Options for receiving money: Take the money in a lump sum, gradually or a combination.

Interest payment options: Pay all, part or none of the interest that accrues ever year.

Profile of users

Average age of applicants: 72

Average amount of home equity borrowed: 36%

Average length of time people stay in their homes after taking out a reverse mortgage: 12

Average amount of home equity left after a home is sold and the reverse mortgage paid off: 50%

Source: Rob Carrick, Globe and Mail

The Canadian housing market continues to defy those who have long predicted its collapse.

If anything, the market seemed to pick up steam in October as sales across the country ended up the best they have been since January.

Sales of existing homes rose 1.2% in October from the previous month, building on September’s 2.5% gain, the Canadian Real Estate Association (CREA) said.

The upward push caused CREA to revise its sales predictions slightly for 2011. It now says sales will rise 1.4% from a year ago, instead of 0.9%.

“The continuing strength of home sales activity in the face of ongoing financial volatility speaks volumes about the con-fidence of Canadians in our housing market,” said Gary Morse, president of CREA.

Even going into 2012, CREA doesn’t see much change in the market since interest rates are near record lows. CREA calls for a relatively minor 0.5% reduction in sales in 2012.

The industry has seen annual sales holding steady at about 450,000 for each of the past three years.

Prices have also shown a steady upward trajectory and are now forecast to attain an average of $362,700 in 2011, which would be a 7% increase from the year before.

Next year, prices are expected to remain flat – something most people in the real estate industry see as an accomplishment under the present economic environment.

“Home sales actvity over the past couple of months suggests buyers are confident that the Canadian economy will remain relatively unscathed by global economic risks, since every home purchase is a homebuyer’s vote of confi-dence in the future,” Gregory Klump, CREA’s chief economist, said Tuesday.

He said there is a strong feeling fiscal policy will be coordinated to give housing any support it should need in the event of an economic pullback.

So far, the industry seems to be getting the support it needs from low interest rates, which have kept buyers in the market. Variable rate mortgages tied to prime are still available as low as 2.7%, while a fiveyear fixed-rate closed mortgage is now being discounted to 3.19%.

CREA said a total of 397,561 homes have traded hands this year, a 1.8% rise from the first 10 months of 2010, but in line with the 10-year average.

Toronto continued to carry the national market in October: Sales were up 14.3% from a year ago. The actvity in Canada’s largest city helped boost overall sales activity, which rose 8.5% from a year earlier.

Prices across Canada continued to moderate. The 5.5% year-over-year increase was the smallest since January and the average price of a home sold in October was $362,899.

The consensus among economists is that the housing industry may not have much more to give in price or sales increases but nor is it set for a massive decline.

“The fact that prices are overvalued today does not necessarily mean they will crash tomorrow,” said Benjamin Tal, deputy economist with CIBC World Markets.

He said a “violent market meltdown” would need a catalyst, such as the subprime crisis, or a sharp increase in interest rates, such as those of 1991.

“We do believe the housing market in Canada will stagnate in the coming year or two,” said Mr. Tal.

A report from TD Economics indicates housing is a key component of the Canadian economy. It noted the construction industry accounts for 10% of gross domestic product.

Source: Garry Marr, Financial Post

Residential sales picked up outside Metro Vancouver in October, according to a B.C. Real Estate Association report released yesterday.

“B.C. home sales rose three per cent in October compared to September on a seasonally adjusted basis,” BCREA chief economist Cameron Muir said in a statement.

“While consumer demand in Vancouver edged lower last month on a year-over-year basis, strong increases were recorded in the Fraser Valley, Kamloops, Kootenay, the North and on Vancouver Island.”

Muir said that total active residential listings in B.C. declined by 3,360 units in October from September, although active listings were up 6.9 per cent from October 2010.

“Market conditions remained slightly in favour of home buyers last month.”

Residential unit sales in the province rose 6.5 per cent to 5,865 units in October compared to the same month last year, while the average price was up 2.6 per cent to $535,695 last month compared to October 2010.

Year-to-date, B.C. residential sales dollar volume increased 16.8 per cent to $38 billion, compared to the same period last year, the BCREA said.

Residential unit sales increased 3.5 per cent to 66,922 units over the same period.

According to the report, the average Metro Vancouver price rose 8.5 per cent from October 2010 to October 2011 to $767,000.

Prices in the Okanagan dropped 14.3 per cent to $367,000 in that period, and fell 6.1 per cent in Victoria to $476,000.

Total sales dropped one per cent in Metro Vancouver in October compared to October 2010 to 2,359.

Sales rose two per cent in the Okanagan to 403 and were up 3.1 per cent in Victoria to 461.

Source: Brian Morton, Vancouver Sun

With sales of existing homes in Canada rising in October to the highest level since January, the Canadian Real Estate Association boosted its forecast for resale activity for 2011.

The industry group today released data on October sales activity as well as a revised forecast for the year.

National sales of existing homes increased 1.2% from the previous month, building on a gain of 2.5% in September. Price gains however cooled to 5.5%, the smallest gains since January.

A total of 397,561 resale units have traded hands so far this year, CREA said, up 1.8% from levels in the first 10 months of 2010.

Here’s what you need to know about the booming Canadian housing market:

Ontario leads the way

Third-quarter sales activity in the province was stronger than forecast, while the rest of the country came in broadly in line with expectations, the CREA said.

It was the strength of activity in Ontario that prompted the CREA to boost its annual forecast for 2011 to 1.4%, up from 0.9%.

The industry group now predicts national sales of 453,300 for the year, compared with 446,915 in 2010.

198,000 of 2011′s residential sales are expected to come from Ontario, with Quebec and British Columbia expected to have sales of 77,000 and 76,600, respectively.

Home prices are still up but showing signs of cooling down

CREA kept its national average home price forecast for the year little changed at $362,700. That’s an annual increase of 7.0% compared with $339,049 in 2010.

Prices are expected to remain flat next year, with the CREA forecasting $362,700 again for 2012.

The industry group pointed to moderating prices in Vancouver in the third quarter compared with the first half of the year, with sales of multi-million dollar properties in that city returning to “more normal levels.”

CREA said the national average price in October rose 5.5% from a year earlier to just under $362,899, the smallest increase since January.

The balance of supply and demand is tight but the market remains on solid footing

October’s monthly rise in sales resulted in a slightly tighter balance of supply and demand, but the national housing market remains “firmly rooted in balanced territory,” the CREA said.

The national sales-to-new listings ratio, a measure of market balance, stood at 53.4% in October, up from 52.8% in September.

Low interest rates continue to bolster the market

CREA also revised its forecast for 2012 upward slightly, predicting a smaller easing than previously expected of 0.5% to 451,200 units.

The uptick is largely due to expectations that Canada’s interest rates will stay low until well into 2012, CREA said.

But domestic and global economic headwinds could put pressure on the sector

“A number of factors will keep Canada’s housing market in check as interest rates remain low,” said Gregory Klump, CREA’s chief economist.

He pointed to tightened mortgage regulations, high household debt and slower economic and job growth as possible headwinds.

However, Mr. Klump noted that persistent news of global economic uncertainty has put only minor dents in consumer confidence to date.

“How confidence evolves depends on how global turmoil plays out over the coming months,” he said.

Source: Christine Dobby, Financial Post

Vancouver Sun November 12th, 2011

403 – 2475 York Ave., Vancouver

Type: 2-bedroom, 2-bathroom apartment
Size: 1,087 sq. ft.
B.C. Assessment, 2011: $768,000
Listed for: $799,900
Sold for: $950,000
Sold on: Sept. 20
Days on market: 13
Listing agent: Spice Lucks at RE/MAX Real Estate Services
Buyers agent: Jane Donnelly at Macdonald Realty Kerrisdale

The big sell: The latest report from the Greater Vancouver Real Estate Board depicts a more balanced housing market compared to October 2010: the number of properties listed has increased, but sales have declined. However, the benchmark price for the past 12 months has risen by 7.5 per cent on the back of sales such as this Kitsilano condo, which fetched $150,000 over the asking price. The reasons behind this particular price hike? A picture-perfect Kitsilano vantage point with an exposure that showcases ocean, city and mountain views from a top-floor, corner unit that has two private patios, including one that is 700 square feet. The interior has generously proportioned rooms — making it ideal for “up-sizers” or “downsizers” — as well as hardwood floors, a natural gas fireplace and in-suite laundry. The home comes with two parking spots, a storage locker and a prime location close to West Fourth Avenue and the beach.

732 Sydney Ave., Coquitlam

Type: 5-bedroom, 4-bathroom, detached
Size: 3,796 sq. ft.
B.C. Assessment, 2011: $726,000
Listed for: $1.438 million
Sold for: $1.435 million
Sold on: Sept. 15
Days on market: 32
Listing agent: Marla Murati at Sutton Group — West Coast Realty
Buyers agent: Hedy Ting at RE/MAX City Realty

The big sell: This house in the Coquitlam neighbourhood of the Vancouver Golf Course was built in 1960 on a 10,000-square-foot lot. However, a complete redesign of the property was undertaken this year: the home was taken back to the studs and foundation, rebuilt and extended. This capitalized on the solid bones of the structure, but enabled modern high-end finishing to be carried out to current building codes. In this case, that saw a new roof, insulation, drywall, plumbing, heating, electrical and air conditioning installed. The interior has clean lines and contemporary touches with hardwood flooring throughout, sliding glass doors that open to a covered patio, and a kitchen with a grand island, solid wood cabinets, CaesarStone countertops and commercial grade stainless steel Thermador appliances. The bathrooms has floor-to-ceiling Italian marble and glass tiles. The garden is well-manicured, and there is an attached double garage.

9233 Ferndale Rd., Richmond

Type: 3-bedroom, 2-bathroom apartment

Size: 1,046 sq. ft.

B.C. Assessment, 2011: $445,000

Listed for: $450,000

Sold for: $450,000

Sold on: Sept. 15

Days on market: 1

Listing agent: Harris First at Macdonald Realty Westmar

Buyers agent: Eric Kong at Royal Pacific Realty Corp.

The big sell: According to listing agent Harris First, this three-bedroom condo in Richmond’s Red 2 development sold within hours, with the buyer making an offer sight unseen. To ensure the best price for their home, the sellers had been diligent in preparing the property: The carpets had been shampooed, the bathroom vents and some of the kitchen appliances had been replaced. The interior had also been repainted and the sellers had vacated the property, thereby presenting a home in move-in condition with immediate possession. This penthouse unit has North Shore Mountain views, a south-facing master bedroom, cathedral ceilings in the living room and two parking stalls. Adding to the appeal is the fact that Red 2 allows rentals. Kwantlen Polytechnic University, shopping malls, restaurants and transit are within walking distance.

© Copyright (c) The Vancouver Sun

Should we be dampening the foreign demand for residential real estate in Vancouver? That’s a question that everyone in the city is asking – except people running for office.

“We need to make housing more affordable” is a sentence that will be spoken by every candidate. They will talk about increasing supply, expediting approvals, streamlining burdensome regulations, increasing density around transit hubs and other vital measures. These all matter.

But what if there’s an insatiable demand for Vancouver real-estate investment from outside our country? What if new supply is mostly scooped up by cash-flush buyers who have no intention of living here, or working here? The new places sit empty, or maybe they’re available for temporary rentals.

As a homeowner who loves the increasing value of my home, I appreciate how this offshore demand enriches so many of us – including, notably, the real-estate businesses that write the biggest cheques for municipal election campaigns.

But at some point we have to ask out loud: Is the harm from virtually unlimited offshore investment in real estate greater than its benefits? What is the price we pay for Vancouver being the thirdmost-unaffordable housing market in the world, where home ownership is out of reach for our next generation, skilled immigrants, teachers, nurses, police officers and health-care workers who are so vital for a livable city?

Vancouver’s chief planner, Brent Toderian, says suck it up and learn to enjoy renting.

But our cultural traditions – not to mention our financial security and historical wealth generation – are still built around home ownership. People want to own their own homes. If they can’t afford to own here, they move away. And that costs us.

It breaks up families and it hurts the local economy.

In 2007, the Vancouver Economic Development Commission asked business and community leaders to name the biggest barriers to job creation in Vancouver.

At the top of the list were high commercial and industrial land prices, and unaffordable housing that makes the city unattractive to workers and managers alike.

That’s job destruction, not job creation.

People say we can’t restrict foreign investors in real estate because that would scare off other foreign investment. Do offshore real-estate investors follow up with commercial investments? Are the majority of foreign buyers only here for a “secure” investment or do they intend on making a commitment to this community? We should know the answers, but we don’t.

Lots of other jurisdictions have restrictions on who can own real estate – Alberta, Manitoba, Saskatchewan, Prince Edward Island, Switzerland, Austria, Japan, Indonesia, Laos, Thailand, China and Australia among them.

We wouldn’t think of allowing unlimited foreign access to our schools and universities, because we’ve determined that local students should take priority.

This is a conversation that has to come out into the open.

It’s the biggest issue in our city today and no one is addressing it.

Source: Peter Ladner, former city councillor and author of The Urban Food Revolution: Changing the Way We Feed Cities, published by www.newsociety.com.