That view, expressed recently by Business Council of B.C. executive vice-president Jock Ferguson, reflects the sentiments of many.

However, similar observations have been made in the past. Still, the cost of housing in the Vancouver area has kept climbing. It is impossible to predict when the pricing peak truly will be reached.

Greater Vancouver’s January home price index for a single detached home hit a record $1,010,000, up 8.4 per cent from one year earlier.

The rental market is equally daunting, with a low vacancy rate and hefty rents, especially for condo units.

Behind the problem of unaffordability is, and always has been, the law of supply and demand. There is no indication this force soon will be diminishing.

Greater Vancouver is attracting tens of thousands of newcomers a year, both from other countries and provinces.

For wealthy foreign migrants, the housing situation likely poses no obstacle. But most local buyers and renters, and migrants from other provinces, are not in a position to pay high rents or $1 million-plus to purchase.

Influential architect Michael Geller recently played host to a Simon Fraser University lecture, titled: 12 Affordable Housing Ideas For Vancouver. Unsurprisingly, it was so well attended that many would-be registrants were turned away.

Geller is calling for a two-pronged approach that would:

• have those wishing to live here reducing expectations about the size of housing they require and their need for two-car garages and granite countertops;

• have city planners become more creative and flexible with zoning, and building rules and regulations.

Specifically, Geller wants Vancouver-area planning departments to permit designs that maximize land use and have been tried successfully elsewhere.

Designs would, for example, allow construction of a cluster of small cottage-like homes on a single large residential lot; and designs that would extend construction of a house or apartment buildings right to side-lot property lines, as in dense European urban cores. Municipalities could more liberally permit construction and sale of micro suites of 300 to 400 square feet, laneway and coach houses and allow townhouses and duplexes to accommodate basements, which then could be rented as crucial mortgage helpers.

The city of Vancouver is well aware it has a severe housing affordability problem, having established an arm’s length affordable housing agency in 2014 to find ways of supplying more housing at more reasonable prices.

But the agency has yet to launch a much-needed public discussion about innovative proposals such as Geller’s. The public deserves a chance to digest the prospect of further densification.

Early action clearly is needed in the face of the ever-escalating property prices.

Source: Editorial, The Vancouver Sun

The total number of home sales in Greater Vancouver is expected to hit 33,800 units by the end of 2014, the British Columbia Real Estate Association announced November 18 in its housing forecast.

This is 16.6% higher than the number of units sold in 2013 (28,985).

The association anticipates that unit sales will see a modest increase of 0.6% in 2015, bringing total sales to 34,000 in that year.

The average home price in Greater Vancouver is forecast to be $814,000 in 2014 – up 5.2% compared with $767,765 in 2013. The BCREA anticipates a slight increase of 0.1% in 2015 to $815,000.

Across B.C., home sales will reach 83,940 units by the end of this year. This is more than 15% higher than the number of units sold in 2013. It is also almost 5% higher than the number of 2014 sales forecast by the association in July, which, at 80,100 units, would be the first time since 2009 that sales were expected to exceed 80,000 units.

In 2015, strengthening economic conditions will push sales upward, but this will be offset in part by increasing interest rates, forecasts the BCREA.

“Consumer demand has ratcheted up this year and is expected to remain at a more elevated level through 2015,” said Cameron Muir, BCREA Chief Economist.

“While historically low mortgage rates support demand, the housing market is also being underpinned by a more robust economy and associated job growth, strong net migration and consumer confidence.”

The average home sale price across the province will be 568,800 in 2014, forecasts the association. This is 6% higher than the average of $537,414 in 2013. Prices in 2015 are expected to grow a further 0.8% to an average of $574,300.

The average number of units sold provincially over the past 15 years was 80,400. In 2005, sales hit a record 106,300 units.

Source: Emma Crawford Hampel, Business in Vancouver

There are two main options when buying a home: Either you buy new – a completely new build – or you buy used.

If you’re buying a new home, make sure you check out the builder, their track record and speak to people who have bought their home from the same builder.

Were they happy with their new home? Did they have any problems within the first year? Second year? What types of problems were they? Did they require major fixes, like a leaking basement, a problem with the HVAC or electrical issues? How helpful was the builder when it came to fixing the problem?

Just because a house is new doesn’t mean it won’t have issues. I’ve seen brand new homes, not even five years old, with major fixes that nearly bankrupt the homeowner. A new home shouldn’t have major problems, but too many times it does.

If you’re looking at used homes, be careful with ones that were flipped. These homes are especially a problem because they are deliberately made to look good, but aren’t necessarily built or renovated to be good. They take advantage of homebuyers’ lack of knowledge when it comes to picking out shoddy workmanship.

Looks are deceiving. A home that’s been flipped banks on it.

I don’t like flips because most of them are done with one purpose: To make a profit. In most cases, the homeowners don’t care about quality because they won’t be living there. Their top priority is to sell fast to save on mortgage payments. And once it’s sold, any problems in the home become the responsibility of the new owners.

How do you know if it’s a flip? There are some warning signs, but again, it comes down to doing your homework. Most people think you need to be a pro to pick out the warning signs, but a lot of it is just common sense.

For example, if the homeowner tells you that they just finished renovating the kitchen and bathroom, how much do you want to bet that they had enough money to do both renovations right?

A standard kitchen renovation done properly will cost at least $30,000. A bathroom reno can cost close to $20,000. If the only reason for renovating was to sell, I would be cautious on how the work was done. Good work takes time, and it isn’t cheap. Ask the homeowner details about the reno, such as how long it took to find the right contractor, set up the job, choose materials and for the work to be done. If all it took was a few weeks, I would be cautious.

If a home looks like it’s been renovated, do a search for any permits on work completed. If changes were made to the plumbing, electrical or structure, permits needed to be pulled.

Also look for cheap materials, such as MDF for cabinetry or laminate flooring. Keep an eye out for bad trim and sloppy paint jobs — these are red flags for quick and cheap renos. When the trim is off or doesn’t line up, you can bet that the workmanship isn’t top quality. If they fumbled on the finishes, they probably cut corners on the stuff they know most buyers will not see — the stuff behind walls and below flooring.

If windows were replaced, check to make sure that they are at least Energy Star rated. If the home has bad windows, you will pay for them for years in extra energy costs. And the cost of replacing them will run you at least $10,000. So if they need replacing, as a buyer, you need to know.

One last thing home buyers can look into is getting a home-history report on a property. Some home inspectors even include this service as part of their basic home inspection. A home-history report uses municipal, provincial and federal data to gather the most up-to-date property information. It’s an extra tool that helps protect a home buyer, so you know exactly what you’re walking into.

A home-history report can tell you the home’s previous sales price, sale dates, building permit information, information on structure or any previous insurance claims related to the property. You should know if a home you’re looking at had major water damage, flooding, a fire or damage from a natural disaster. Some home-history reports can even tell you if a house was ever used for illicit purposes, like a grow-op or meth lab.

The more information you have on a property, the better. You will know if the electrical or plumbing needs to be looked at by a professional to make sure it’s safe, or if the structure of the home has been modified or undermined. It puts you in a better position to buy the right home and buy it smart.

Source: Mike Holmes, Postmedia News

Condo shopping can be overwhelming – a pre-shopping checklist can help limit your stress and visits to show homes.

To create such a list, start by visiting presentation centres and model units in person. Although the Internet is a great place to do some basic research, you will learn much more by assessing the quality of materials and construction in person. This will also give you a chance to ask your questions and evaluate the quality of the responses you get. Be consistent with the questions you ask in the showrooms so you can make accurate comparisons.

When visiting, try to speak with the show home’s specialist who assists buyers with their design choices, as they are often present. Take advantage of their expertise regarding upgrades and options. This will be helpful even if you eventually settle on another development.

Before visiting, make a list of those amenities that are important to you and that you are likely to use. Remember, the cost of amenities is embedded in the condo price and the cost of maintaining them in the condo fees.

Some questions to be answered:

• Who is buying units in the condo — singles, couples, students, young families, retirees? This will determine the condo’s culture. Be careful if the units are being sold to investors as rental units; tenants as a group may be less invested in keeping the property up and more frequent turnover will subject the common areas to wear and tear.

• Consider “curb appeal.” Is impressing your visitors with a beautiful facade, entry foyer and other common areas important to you? Not every condo owner cares about the width of the corridors or the decor in the elevators, but many do.

• Is there adequate and convenient visitor parking? A good way to deter friends from coming by is making parking difficult.

• Are the elevators fast and adequate for the size of the building? This is particularly important if you want to be on a higher floor.

• Parking is key. Consider ease of access, adequate space for your car and ease of egress into traffic. Fighting your way into rush-hour street traffic can get old quickly; on the other hand, you may be on a schedule that lets you avoid rush hours.

• It may be wise to purchase a parking space or two even if you don’t have cars — they can become more valuable over time and can always be sold. Parking spaces can be significant inducements when reselling.

• Check out the storage lockers for size, location and internal organization. You don’t want to have to unpack the whole locker just to get at your suitcases in the back.

• Location, location, location. As for all real estate, condo location is paramount. However, there are many factors that determine the value of a given location to a given purchaser. Convenience generally plays a significant role and convenience is a very personal thing. Some of the following points will help clarify this.

• When examining floor plans and fact sheets, make sure you understand the positives and negatives of the layout. If you have trouble visualizing this, educate yourself by quizzing the people representing the various developments about their layouts. You will soon be doing this automatically when you see a floor plan.

Flow is very important, especially if you are used to bigger spaces. Make sure the room sizes meet your requirements. This should include the kitchen, which needs to be more comprehensive if you plan to cook or entertain. Of course, some facilities have beautiful entertaining spaces and catering services. You might prefer this format.

• If cooking is a priority, find out which appliances are included and check them out. If they don’t measure up you may need to upgrade.

• Is a balcony important and will you actually use it? If you plan to garden, make sure you know the rules governing your balcony use. If you have no interest in balcony living, smaller is better than larger as it will save you money and upkeep.

• Are your critical amenities readily accessible? Of course, accessibility will depend on your level of mobility — committed walker, cyclist or driver. Some may require facilities within their condo complex.

• Make sure you know how bright your condo will be and determine how important this is to you. Orientation of principal rooms and window height are the two biggest factors.

• Does the level of security offered meet your expectations? This applies to building access, garage surveillance, and elevator and corridor security.

• Concierge service is both a security and a convenience factor. What will the concierge do for you and during what hours? If you travel a lot, this becomes more important — who accepts the deliveries and brings in the mail?

• What are the rules about pets, both yours and neighbours? How long does it take to get Fido to the grass and what do you do in winter? Or perhaps you don’t want to interact with pets on a regular basis.

• Is the condo on a flight path or adjacent to high tension transmission lines? This may not be important to you personally but may become an important issue on resale.

• Are there lighted recreational facilities nearby that may generate noise in the evening?

• Are there local events such as exhibitions or sports events that may overwhelm traffic circulation intermittently?

Source: Marilyn Wilson, Marilyn Wilson Dream Properties Inc., Ottawa

If you’re a young twentysomething first-time homebuyer looking to get on the property ladder in Metro Vancouver, where should you start looking for a home that you can afford?

I recently came across this article by Michael Ferreira of Urban Analytics which could help to point you in the right direction.

Generation Y has many advantages over others, but when it comes to buying a first home it appears the “good old days” truly did belong to baby boomers.

Today’s twentysomethings are not only having trouble earning meaningful pay cheques to put toward a mortgage, but the Canadian government has made it even tougher by tightening lending rules to keep a leash on the housing market. Combine this with a decade-long rise in house prices across Canada, it’s no surprise Gen Y is feeling down about buying their first home.

While it’s a discouraging time for young people with a dream of owning their first home, it’s not impossible for Gen Y to buy. At Vancouver-based Urban Analytics, we’ve watched the evolving first-time homebuyer market for years and can offer some advice to young people – Metro Vancouver in particular – who are contemplating buying their first home.

Tip #1 – Consider “best buy” locations (not the electronics store)
By “best buy” we mean the five areas in Metro Vancouver with the largest selection of new condos and townhomes. These include: Richmond, Coquitlam, Southeast False Creek, Surrey Central, and neighbourhoods south of the Fraser. In fact, Richmond is now the most competitive new condominium market in the region as developers have become increasingly aggressive in their fight for market share. Six major new condo projects totaling more than 1,000 units have launched in Richmond in the past two months alone. Another five condo projects are potentially launching in the next few months. Now may be the time to invest in Richmond.

Tip #2 – Think like Donald Trump: Negotiate
When it comes to buying a new condo unit from a plan, don’t be afraid to ask for a discount or for an upgrade feature to be included. Your real estate agent can also do this for you – just let them know what you want. Some developers are more willing to negotiate than others, depending on their sales targets or those of their lender, so it never hurts to make a pitch.

More and more developers are offering incentives these days. Some include: Bohème on East Hastings where buyers of units more than $330,000 receive either a new Fiat car or $15,000 in cash; at The Rolston in downtown Vancouver, renters who buy in the building receive $1,000 off their mortgage payments for three years, or $500 off for six years; at the Wall Centre Central Park in Burnaby, buyers receive a 3.2-per-cent credit off purchase price. These incentives result in significant savings.

Tip #3 – Tis’ the Season? Or is it?
Spring typically brings with it a sense of renewal, which seems to get more people thinking of buying a new home, is a traditionally strong home-buying season. That means more competition for properties, and less incentive from sellers to offer discounts. Unless your timing is tight, consider buying during traditionally slower times of the year such as mid-summer when there are fewer buyers, and sellers and developers may be more willing to negotiate.

Tip #4 – Become a Landlord
Buying a house doesn’t have to mean carrying the entire mortgage on your own. A lot of first-time homebuyers purchase properties with two or more bedrooms or units, and rent out the extras to roommates or tenants. Becoming a landlord isn’t for everyone, but if you’re up for a little extra work, and some company, it could make the difference between changing your status from renter to buyer.