My real estate column in the Vancouver Sun featured property sales in Burnaby, Downtown Vancouver and Coquitlam.

Vancouver Sun May 12th, 2012

201 – 9329 University Crescent, Burnaby

Type: Two-bedroom, Two-bathroom apartment
Size: 844 sq. ft.
B.C. Assessment, 2012: $312,000
Listed for: $338,800
Sold for: $333,500
Sold on: April 8
Days on market: 72
Listing agent: Robert Crowe at RE/ MAX Real Estate Services
Buyer’s agent: Robert Crowe and Terri Welch at RE/MAX Real Estate Services

The big sell: There are many benefits for residents living in SFU’s UniverCity community on Burnaby Mountain. Some of these include immediate proximity to lush, woodland trails – perfect for outdoor exercise – as well as the views, and access to the recreation facilities and amenities that SFU offers. This southeast facing condominium in Harmony was built by Polygon in 2005. It is a four-storey complex that consists of 190 units. The interior of this home contains an open-plan kitchen with eating bar and maple-coloured cabinets, a living/dining area with gas fireplace and sliding glass doors that open to the balcony, and a master bedroom with walk-in closet and ensuite bathroom. The unit is on the quieter side of the complex overlooking the courtyard. The building allows pets and – of particular interest to investors – it also allows rentals.

2609 – 939 Expo Boulevard, Vancouver

Type: One-bedroom, One-bathroom apartment
Size: 506 sq. ft.
B.C. Assessment, 2012: $385,000
Listed for: $385,000
Sold for: $384,500
Sold on: April 9
Days on market: 1
Listing agent: Ann Lok at Sutton Group – West Coast Realty
Buyer’s agent: Chris Tioseco at Sutton Group – West Coast Realty

The big sell: Buyer’s agent Chris Tioseco says there were many reasons why his clients were attracted to this one-bedroom, 26th-floor condominium in Concord Pacific’s Max II tower: 180-degree sweeping cityscape views, nine-foot ceilings, a central downtown location, an attractive Porte-cochere circular driveway, and the building’s comprehensive range of amenities, which include an indoor pool, sauna/ steam room, gym, a theatre that seats 20 people, a party room, and 24/7 concierge. This suite is on the quieter side of the building and includes engineered hardwood floors, a gas stove, a large flexible room that could be used either as an office or a walk-in closet, expansive windows to maximize the views, and a balcony for relaxation and barbecues. The unit comes with one parking stall. The building has been fully rainscreened and rentals and pets are allowed.

311 – 1185 Pacific Street, Coquitlam

Type: One-bedroom, One-bathroom apartment
Size: 903 sq. ft.
B.C. Assessment, 2012: $251,000
Listed for: $275,000
Sold for: $270,000
Sold on: April 7
Days on market: 73
Listing agent: Barb Steczko at Century 21 Showcase Plus
Buyer’s agent: Chris Sheppard at Royal LePage Coronation West

The big sell: The Centreville building lives up to its name, since residents have easy walking access to everything that Coquitlam town centre has to offer: T&T, Douglas College, the Aquatic Centre, the library, city hall and the eventual Evergreen Line which, when complete, will connect Coquitlam to the SkyTrain. At more than 900 square feet, this apartment with one bedroom and a den is larger than many two-bedroom Vancouver units. It has an open living area, a fireplace, laminate flooring, and a balcony. The unit has been repainted and contains a kitchen with plenty of cupboard space, tile backsplash, in-suite laundry, crown mouldings, and nine-foot ceilings. The bedroom has a walk-in closet. The building’s amenities include an exercise room, a clubhouse, a hot tub and a guest suite.

Source: Nicola Way, Vancouver Sun

Existing home sales in Canada’s most expensive city dropped in April, according to the Real Estate Board of Greater Vancouver.

The board described home sale and listing activity as maintaining a “consistent pace” leading to balanced market conditions but its April statistic shows total sales across the Multiple Listing Service in April were 2,799, a 12.3% decline from a year ago. It also represented a 2.6% decline from March 2012.

REBGV said April sales were the lowest for the month in the region since 2001 and 16.9% below the 10-year average for the month of 3.369.

“Although April sales were below what’s typical for the month, we continue to see, with a sales-to-active listing ratio of nearly 17%, a balanced relationship between buyer demand and seller supply in our marketplace,” said Eugen Klein, president of the board.

The board’s so-called benchmark price for all residential properties in Greater Vancouver was up 3.7% in April from a year ago to $683,800. Prices are up 2.8% over the last three months. In the Lower Mainland prices were up 3.4% in April from a year ago to $612,000.

“Recent activity has had a stabilizing effect on home prices at the regional level, although pricing can vary depending on area and property type,” said Mr. Klein said.

Supply has been increasing in the Greater Vancouver area with the total new listings in April up to 6,056, a 3.6% jump from just a month earlier. However, new listings are also only up 3.6% from a year earlier. April new listings were 6.7% above the 10-year average for Greater Vancouver in April.

Overall, the board had 16,538 homes listed for sale on the MLS which is up 8.5% compared to March, 2012 and 16% from a year ago.

Source: Garry Marr, Financial Post

When it comes down to it, many British Columbia home buyers just aren’t willing to battle for their dream home, according to a BMO Home Buying Report released today.

The report said Canadian respondents in the Prairies, Ontario and Alberta are more willing to enter into a bidding war than those in B.C., Quebec and Atlantic Canada.

In the survey, 22 per cent of Canadians said they were willing to enter into a bidding war when making an offer on a home.

“Of those prepared to fight, half would pay up to 110 per cent of the asking price, while a quarter would be willing to bid up to 120 per cent,” the report said.

Those surveyed in Manitoba/Saskatchewan ranked first in eagerness to enter into a mortgage bidding war (32 per cent). They were followed by respondents in: Ontario (28 per cent), Alberta (25 per cent), B.C. (23 per cent), Atlantic Canada (13 per cent) and Quebec (10 per cent).

The study also noted that 52 per cent of Canadians surveyed said they’re willing to pay between 100 and 110 per cent of the asking price, with Quebec ranking first at 62 per cent. It was followed by: Alberta and B.C. (53 per cent), Ontario (51 per cent), Manitoba/Saskatchewan (48 per cent) and Atlantic Canada (44 per cent).

Meanwhile, 27 per cent of Canadians said they would pay between 100 to 120 per cent, with the highest in Atlantic Canada (33 per cent), then Ontario and B.C. (30 per cent), Quebec (25 per cent), Manitoba/Saskatchewan (22 per cent) and Alberta (17 per cent).

John Pasalis, broker owner of Realosophy Realty Inc., a Toronto-area real estate brokerage, cautioned that the bidding wars may not be as lucrative as they seem.

“One thing to keep in mind is the houses that are getting pretty crazy bidding wars are underpriced anywhere from five to 10 per cent,” he said. “The list prices aren’t always an indication of what they’re actually worth.”

Pasalis said his company has seen “multiple offers almost non-stop for years now,” including as much as 10 or more buyers bidding on a house.

“You just get these spikes and valleys in the market where things get a little bit more heated and demand starts outstripping supply as things get faster,” he explained.

However, the mortgage wars may backfire on owners if the bank’s appraisal of the home is lower than what a buyer pays for the home, he said.

To avoid this, Pasalis cautioned that homeowners need to know the actual market value of the property they want to buy as opposed to its listing price.

Nationally, the average home sale price is $369,677, the report said. The average home prices across Canada are “rising modestly,” it said, except in Toronto ($504,117) and Vancouver ($761,742).

“Toronto prices have risen 11 per cent over the past year, while Vancouver’s have fallen 3 per cent,” said Doug Porter, deputy chief economist for BMO Capital Markets.

Source: Sheila Dabu Nonato, Postmedia News

Recent conversation around the Kitsilano dinner table turned to – as it almost always seems to do – real estate and the role of foreign buyers in Vancouver.

The older guests decried the runup in prices that makes it almost impossible for their children to buy on the West Side, while the kids (also at the table), looked to their parents as the lender of first resort to help them get into the market.

But what to do about the oft-discussed “foreign buyer” typically tagged as a leading contributor to the pressures that make housing unaffordable? Charge a special tax on offshore buyers, asked one person? Charge a surtax on properties above a certain value, asked another? Or, as this writer chimed in, erhaps we want to introduce the equivalent of a head-tax on foreign investors simply because they’re coming to invest in properties. (Dirty looks all ‘round ensued.)

Or just suck it up?

Land ownership angst Tsur Somerville, associate professor with the UBC Centre for Urban Economics and Real Estate, noted that upward pressure on the price of local properties is a standard problem in desirable places to live – especially places that attract short-term residents, such as vacationers. Just ask the folks in Whistler, the Gulf Islands and other areas. “This is historically our biggest issue in places that are resorts: vacation homes drive up prices,” Somerville said.

The truth is, Canada is a nation of immigrants and each wave of newcomers has raised anxieties and concerns about land ownership. First Nations land claims are one example; restrictions the Islands Trust enforces on land uses in the sensitive Gulf Islands are another. Indeed, the fight for domestic control of land is as fundamental to Canada’s history as the story of settlement. Opposition to absentee landlords drove Prince Edward Island to join Canada in 1873, and provincial law still prevents non-residents from owning “in excess of five acres or having a shore frontage in excess of 165 feet unless he/she first receives permission to do so from the Lieutenant Governor in Council.”

Most of the Prairie provinces, where rights to real property are rooted in homesteading and distrust of bankers, also have restrictions on non-resident ownership of land. Canada isn’t alone in restricting foreign ownership: Iceland, Denmark and Australia, all members of the Organization for Economic Cooperation and Development, limit ownership of real estate to those resident in the country and prohibit renting by foreign owners.

Switzerland, a traditional haven for foreign capital, limits transactions by foreign buyers to a set
amount per year, and cities such as Zurich and Geneva are off-limits.

Poland and Greece have restrictions on land purchases; in Mexico – a popular vacation destination – a local bank holds property in trust for foreign owners. The foreigner has all the privileges and obligations of ownership, but not ownership itself. But globalization, and the international flow of capital that’s followed, has put the issue of foreign ownership on the front burner in many countries. The tide of capital seeking a safe haven following the September 11, 2001, terrorist attacks on New York and Washington, D.C., made countries take a hard look at how much cash they wanted in their jurisdictions and how much ownership they were willing to give away. Concern accelerated only after the real estate boom – and bust – that followed. Iceland has linked control of local assets to national sovereignty.

And even Prime Minister Stephen Harper has begged comparisons by moving to block foreign ownership of strategic assets. Australia recognized the challenges following a loosening of foreign ownership restrictions in late 2008. The following year saw a wave of foreign investment 30% above historical norms. The dramatic shift in a country where first-time homebuyers were already finding some cities unaffordable called for action. A six-month consultation period culminated in changes to Australia’s investment regulations in April 2010. All purchases by temporary residents and foreign non-residents became subject to approval by Australia’s Foreign Investment Review Board; temporary residents are limited to properties for their own use or development sites that would increase the housing stock.

Vacant land must be developed within two years, and foreign owners of residential properties must sell the properties when they leave the country or the government will confiscate and sell them instead. Australia’s introduction of tougher criteria for foreign real estate investment had an immediate effect. Approvals for purchases of residential real estate, typically the primary target of foreign investment applications, dropped from 2,450 to 647 – a 75% decline. Foreign restriction complications.

But could similar measures succeed in Vancouver?

During last fall’s civic election, independent council candidate Sandy Garossino called for restrictions on foreign ownership to address affordability. Affordability was being eroded by the foreign buyers. RBC Economics reported that a standard two-storey home in Vancouver required approximately 95.5% of the average household’s monthly income, while a detached bungalow required 92.5%. (A residence is considered affordable when it requires just 32% of household income.)

Modest declines in recent months have done little to bring home prices within the reach of locals. The bank’s most recent analysis declared, “unaffordability has long been a fact of life in the Vancouver housing market and this will continue to drive local buyers away.” Vancouver is a seller’s market relative to the rest of the country; RBC all but confirms that it’s a nonresident’s buyer’s market.

Garossino – who didn’t respond to a request to comment for this article – suggested that Vancouver address the situation by adopting a model similar to Singapore, where investors are limited to select areas of the city, leaving the rest of town to locals. But other observers are less confident such restrictions would work; they point out that, with no way of determining the extent of foreign investment in the local market, it’s difficult to impose restrictions.

Nicola Way, owner of upscale listings site BestHomesBC.com, said the lack of clear evidence for a foreign buying binge makes it hard to argue for investment restrictions. (See “Seeking paper trails in Asian property buying spree” – BIV issue 1168; March 13-19.)

“Until Canada can produce figures that definitively state the volume of properties bought by non-residents, I can’t see any restrictions placed on foreign ownership,” said Way.

Moreover, housing affordability is more than a function of who is buying properties. Basic land economics are at play, as well as financing regimes. “There are other factors at play when it comes to Canada’s rising house prices, namely consistently low interest rates that have served to underpin housing demand,” she said. “For the City of Vancouver itself, there is also the question of land supply. We are hemmed in by geography, so when supply becomes limited, demand – and therefore prices – increase.”

Somerville goes even further. He noted that without consensus on what a foreign buyer is, it’s tough to target the restrictions. And if the flow of cash can’t be tracked, what gets taxed? “How many people are we actually talking about who are truly non-resident, non-immigrant buyers? How many people are not renting their units out but keeping them vacant?” Somerville asked. “Before we have policies to address a problem, it’d be really good to know how big a problem it actually is.”

Unfortunately, there’s no way of knowing. The statistics being thrown around are nice, but none of them have conclusively answered the question. “We don’t have the mechanisms to be really accurate,” he said. “Realtors telling me that their buyers are from China doesn’t answer it. And certainly where the appraisal chits are sent doesn’t answer it.” While non-resident purchasers could be subject to a different property tax rate, as happens in Florida, Somerville said it would have to be a province-wide measure rather than targeted to a specific city such as Vancouver or a specific part of the city. “You could always do it,” he said, “but if you put in a sub-area then you just spread the issue to other areas.”

And, hinting at his own skepticism, Somerville said developing a different tax structure or other restriction might not even be worth it relative to the scope of the problem. “Fundamentally, I don’t want to restrict the market and develop policies to address a critical problem without knowing what the problem is.”

See the original article here: BIV – Combating uncontrolled offshore ownership.

Source: Peter Mitham, Business in Vancouver

B.C. home prices are headed south this year before rising slightly in 2013, according to a quarterly forecast by the Canadian Real Estate Association.

The forecast average drop of four per cent – the biggest decline in the country and far steeper than the 1.1-per-cent forecast drop nationally – will bring the average price of a residential B.C. property down to $539,100 from $561,300 in 2011.

However, the average price is expected to rise 0.5 per cent to $541,800 in 2013.

Gregory Klump, CREA’s chief economist, said the main reason for B.C.’s forecast price decline is because multi-million-dollar sales activity in West Vancouver, Vancouver’s westside and Richmond in early 2011 caused both the provincial and national average prices to temporarily spike, a phenomenon that’s not expected to repeat itself this year.

“It reflects what happened by way of the average price increase in Vancouver,” he said. “There was a spike in high-end activity [and] it skewed the average price higher temporarily.

“We don’t expect it to happen this year.”

As a result, the report said, while prices will likely hold steady near current levels, the national average price is forecast to dip by 1.1 per cent in 2012 to $359,100. Prices are expected to rise modestly in 2013, with the national average inching upward 0.9 per cent to $362,300 at the national level.

According to the report, home resales are expected to rise by 0.3 per cent this year in Canada, with low interest rates continuing to support the market.

For B.C., home resales are expected to drop by 1.9 per cent, before rising slightly in 2013.

National sales are forecast to reach 458,800 units in 2012, while in B.C. sales are expected to total 75,300.

“Rising demand in Alberta, Saskatchewan and Nova Scotia is expected to offset softer activity in British Columbia, Ontario, and New Brunswick,” CREA said.

In 2013, CREA said, sales are expected to ease back to 457,200 units, with modest gains in all provinces except Ontario “as economic and job growth picks up later this year and builds into 2013.”

“Risks to the Canadian economic outlook remain elevated owing to the European sovereign debt quagmire, but the continuation of low interest rates is the silver lining,” added Klump.

“So long as the European debt crisis is contained and a global economic recession avoided, low interest rates will support Canadian home sales and prices. Recent trends are reassuring, but interest rates remaining low for longer will doubtless keep the Canadian housing market under scrutiny for signs of overheating.”

Source: Brian Morton, Vancouver Sun

A new tax break for first-time buyers of new homes will help stimulate the construction industry and create plenty of new jobs, an industry executive said of Tuesday’s 2012 provincial budget.

“This is welcome,” Greater Vancouver Home Builders’ Association president and chief executive officer Peter Simpson said of a temporary bonus for first-time homebuyers that will be effective until March 31, 2013, and is worth up to $10,000.

“They have a difficult time getting into the market and typically get assistance from the bank of Mom and Dad. So this helps property virgins get on the first rung of home ownership and helps stimulate construction.

“For every home start, there are approximately three full-time jobs each year.”

The bonus, a one-time refundable personal tax credit, is equal to five per cent of the purchase price of the home to a maximum of $10,000.

The bonus will be reduced based on a buyer’s or couple’s net income. For single people, the bonus is reduced by 20 cents for every dollar in net income over $150,000 (it’s reduced to zero at $200,000 net income). For couples, the bonus is reduced by 10 cents for every dollar in family net income over $150,000 (it’s zero at $250,000 family net income).

The bonus, which includes detached houses, duplexes, townhouses, condos, mobile homes, floating homes and cooperative housing units, is based on homes where the HST is now payable.

In a budget briefing, Finance Minister Kevin Falcon said the incentive will help people get into the market.

“We hear from people that talk about the challenge their children or their grandchildren are having getting into their first home,” Falcon said.

“And the biggest hurdle is usually the down payment you’re required to come up with. We believe a $10,000 contribution towards those first-time purchasers of new homes is a great contribution, a great way we can help your children or your grandchildren get into their first home and at the same time receive the dual benefit of supporting the new home construction industry over the next 12 months when it’s forecast across the country to be slowing.”

Urban Development Institute executive-director Maureen Enser agreed, saying the homebuyer bonus was an added bit of good news for the home construction industry on top of the government’s announcement last week raising the HST-rebate threshold to $850,000.

“In the Lower Mainland in particular, where housing is very expensive, both measures together make it easier for people to consider a new home [purchase] for a family,” Enser said.

She added that the maximum $10,000 bonus for first-time buyers with net income under $150,000 should stimulate some potential buyers to move off the sidelines and look for homes, particularly in the Lower Mainland.

“[About] 13 per cent of new housing is priced below $525,000, and 50 per cent is between the $525,000 and $850,000 range,” Enser said, so the measures combined help bring down the cost of new housing at both ends.

However, Simpson was less happy about the budget’s lack of any significant tax relief for the home renovation industry, noting that B.C. homeowners will spend more than $7.6 billion in home renovation, improvement and repair this year.

“We’re still left with the issue of the underground economy, with people delaying their decision to renovate their home by waiting for the HST to disappear [on April 1, 2013],” said Simpson, who added that the home renovation tax credit of up to $1,000 a year for seniors to help them remain in their homes longer will not have a big impact on renovators.

Vancouver-based home renovator Todd Senft agreed with Simpson, saying he’d hoped for new relief but now believes the lack of tax breaks in Tuesday’s budget will force many people to put off renovations and go to the underground economy — where renovators with less credentials undercut legitimate contractors.

“That’s disappointing,” Senft, owner of reVISION Custom Home Renovations Inc., said.

“I’m glad they paid attention to new-home builders, but that doesn’t help us. People will wait a few months and save a few thousand dollars.

“It [the home renovation industry] is steady right now and the year has started moderately. But it will be a tough grind this year. I’m hoping more [homeowners] don’t head to the underground economy to save money. The savings by doing it under the table are massive.”

Source: Brian Morton, Vancouver Sun

The transitional tax rules for new homes in B.C. announced on Friday by Finance Minister Kevin Falcon are significantly more generous than the old ones.

The rule changes are intended to keep the tax burden on most newly-constructed homes at the same level that they were under the old PST regime, that they are under the current HST and that they will be when the PST is reinstated on April Fool’s Day next year. But three provisions make this a sweeter deal for builders and buyers:

. The threshold for a substantial tax rebate has been raised from $525,000 – a ludicrously low amount in the Lower Mainland, which is Canada’s most expensive housing market – to $825,000.

. Buyers of higher-priced homes will also benefit because they’ll pay tax only on the amount over and above the exemption.

. Recreational homes in most of B.C. will be eligible for the tax break for the first time.

The increased exemption goes a long way to address one of the most serious criticisms of the well-structured but badly implemented HST that has caused the governing Liberals so much grief. The exemption was so low and homes are subjected to so many taxes that the HST became yet another driver of sky-high urban house prices.

Would British Columbians’ reaction to the HST have been less visceral and less powerful if measures like these had been adopted from the start?

We’ll never know.

But maybe, just maybe, this more realistic approach indicates the government at least learned a lesson from the voter rage that drove former premier Gordon Campbell from office.

Since houses take a long time to build, the policy recognizes that many will be started under one tax regime and finished and sold under another. Falcon said the objective is to keep the tax burden the same, regardless of the timing.

In the old PST era, there was no provincial tax on the selling price of a new home, but builders paid PST on materials they used. The PST added, on average, two per cent to the total cost of the home.

When the HST was implemented, the seven-per-cent provincial tax applied to the selling price of the house, but the government said it wanted to keep the tax burden at the same level as under the PST. So it implemented a rebate of up to $26,250 (now raised to $42,500) to bring the effective provincial tax rate down to two per cent on the first $525,000.

When the PST resumes next year, the assumption is that the PST will, once again, add about two per cent to the cost of each new home.

Those prices should all work out to be equal.

The problem Falcon had to address was what to do about houses started under one tax regime and finished under another.

Depending on the timing and the policy, it’s easy to come up with scenarios where buyers might be able to duck both taxes, or where they might be dinged with both.

Falcon’s solution is a two-per-cent transitional tax on homes built with tax-free materials and sold with no HST applied. It’s a bit more complex than that, because it has a provision to consider what portion of the materials are bought and what portion of the home is completed under each tax regime.

Complex tax policies always create opportunities for unfairness. But Janice Roper, a specialist on indirect taxes at the Vancouver office of Deloitte, tells me the rules appear to be comprehensive, fair and hard to manipulate.

Peter Simpson, president and CEO of the Greater Vancouver Home Builders’ Association, said they provide the certainty his builders want, and they were announced sooner and with better terms than expected.

So – thus far, at least – Falcon seems to be finding his way through the HST minefield he inherited with his new job.

Source: Don Cayo, The Vancouver Sun

While home sales in Greater Vancouver and the Fraser Valley dipped at the start of 2012, other regions throughout the province faced increased market activity, according to the British Columbia Real Estate Association (BCREA).

The number of houses sold in the Vancouver region through Multiple Listing Service was down 13.4 per cent in January from the same month last year, the industry group said Wednesday.

In addition, the average price of a Vancouver home declined slightly, from $762,562 in January 2011 to $752,380 this year – a difference of 1.3 per cent.

In the Fraser Valley, sales dipped by 3.1 per cent during the same time period. However, prices rose 6.4 per cent from an average of $441,544 last year to $469,635 in 2012.

Meanwhile, B.C.’s northwest and northeast regions, Kamloops and Victoria saw sales gains of more than 10 per cent.

The biggest jump occurred in B.C.’s northwest region, where the average house price increased 14.2 per cent – from $214,357 to $244,872 – in the 12 months from January 2011.

Powell River, with an average price of $209,636, recorded the least expensive homes in the province – a figure down 1.2 per cent ($212,078) over January 2011.

Cameron Muir, chief economist with the BCREA, said consumer demand driven by low mortgage interest rates saw modest improvements in January from a year ago, despite a decline in provincial sales activity.

Across Canada, home sales were down 4.5 per cent in January from the same month one year earlier, while the number of newly listed homes edged down 1.4 per cent.

“This marks the first monthly decline in national activity since August 2011 and the biggest monthly decline since July 2010,” the Canadian Real Estate Association stated.

“The monthly decline reversed a string of monthly increases over the closing months of last year, and returned national activity to where it stood at the end of the third quarter of 2011.

January’s sales declines were led by Greater Toronto and Montreal, as well as a softening in other major centres such as Greater Vancouver, the Fraser Valley, Calgary, Edmonton, Winnipeg and Ottawa.

Still, unadjusted sales last month were up four per cent from January 2011 and were even with the five-and 10-year averages for January sales, it said.

“The national housing market is stabilizing and remains well balanced,” said CREA president Gary Morse.

“That said, forecasts for economic and job growth going forward vary widely for different parts of the country, suggesting a possible continuation of a softening trend in some markets, as well as the potential that demand will pick up based on strong fundamentals in others.”

Source: The Vancouver Sun

My real estate column in last weekend’s Vancouver Sun featured property sales in Port Moody, and property sales in Vancouver.

Vancouver Sun January 7th, 2012

430 Carlsen Place, Port Moody

Type: 3-bedroom, 3-bathroom townhouse
Size: 1,749 sq. ft.
B.C. Assessment, 2011: $370,000
Listed for: $399,800
Sold for: $389,000
Sold on: Nov. 28
Days on market: 7
Listing agent: Terry Osti at RE/MAX Crest Realty Westside
Buyers agent: Nick Parente at Prudential United Realty

The big sell: One of the reasons this three-bedroom townhome in Port Moody’s Eagle Point complex sold in seven days can be attributed to simple math: With a sale price of $389,000, the cost per square foot for the three-level property works out to $222.41 — about half the cost of a similar-sized townhouse in Vancouver. Other attractions are its comprehensive renovations: there’s a gourmet kitchen with dark wood cabinets accented by a glass tile backsplash; a designer colour scheme throughout; new flooring that’s a mix of laminate, tile and carpet; three new bathrooms; and custom-made blinds. As well, there is a private detached garage, and green space to the front and rear of the home. The building has recently benefited from updated windows and a new roof, deck and paintwork, and the communal amenities include an outdoor swimming pool and playgrounds. The property is close to shops, restaurants, Eagle Ridge Hospital, Port Moody’s Civic Centre, the Inlet Theatre and Galleria, and schools and transportation.

6984 Rupert St., Vancouver

Type: 5-bedroom, 2-bathroom detached
Size: 2,250 sq. ft.
B.C. Assessment, 2011: $875,100
Listed for: $974,800
Sold for: $976,000
Sold on: Dec. 5
Days on market: 8
Listing agent: Joanne Taylor at Sutton Group – West Coast Realty
Buyers agent: John Lee at Royal Pacific Realty

The big sell: According to agent Joanne Taylor, there are specific reasons why this 50-year-old rancher achieved multiple offers the day after its first — and only — open house, offers that resulted in a winning bid over the asking price. Vancouver’s Killarney area is of particular interest to property purchasers due to its proximity to Fraserview Golf Course, Champlain Mall, and other community amenities. The fact that it is one of the last areas in the city that is yet to be fully developed also increases its appeal to buyers and investors. This home had been well maintained. It has an updated kitchen, a fully finished basement with a 1,125-square-foot suite, original hardwood flooring protected under the carpet, a two-year-old roof, two gas fireplaces, and a fully fenced 143-foot-deep back yard with room for a fish pond, patio, storage shed and two-car garage.

4 — 3160 West 4th Ave., Vancouver

Type: 2-bedroom, 1-bathroom townhouse
Size: 832 sq. ft.
B.C. Assessment, 2011: $516,000
Listed for: $514,800
Sold for: $500,000
Sold on: Dec. 4
Days on market: 29
Listing agent: Colette Gerber at RE/MAX Select Properties
Buyers agent: Ruthie Shugarman at Dexter Associates Realty

The big sell: This townhouse in the Avanti complex on Vancouver’s West Fourth Avenue is accessed via an inner courtyard, and according to agent Colette Gerber, that acts as a buffer against the traffic noise and creates a much quieter interior. Since it was built in 2000, the seller has upgraded the unit and installed some mirror arrangements that give the illusion of a much larger space. The home has a gas fireplace, engineered hardwood flooring, and has been painted in designer hues. The rear patio — with its south-facing exposure — ensures that maximum light enters the home. Both bedrooms are upstairs; the front one has been transformed into an office/guest room through the addition of a Murphy bed and a built-in desk and shelving. There is a large in-suite storage area, underground parking, and the building is pet- and rental-friendly.

For the full story, please click on Real estate sales in Vancouver and Port Moody.

Compiled by Nicola Way of BestHomesBC.com and AssignmentsCanada.ca.

Realtors – send your recent sales to nicola@besthomesbc.com
© Copyright (c) The Vancouver Sun

The 2012 property assessments for British Columbians being mailed this week confirm what we already knew: House prices in Vancouver, West Vancouver, North Vancouver, Burnaby and Richmond are high and still climbing. However, declines in assessed values in the Sea to Sky region, including Whistler, may have caught some by surprise.

Most single-family homes in Vancouver have increased in value by 10-to-25 per cent, according to area assessor Jason Grant, with a typical home on a 33-foot lot on the west side assessed at $1.6 million, up from $1.2 million last year.

On the east side, the example provided by BC Assessment shows an increase to just over $1 million from $816,000 a year ago.

Apartment values are up more modestly, but a two-bedroom apartment on the west side is quoted at $666,000, up 3.7 per cent from last year’s $642,000.

Assessments are established by analyzing recent sales as well as age, size, condition, location and other characteristics of a property. But the assessed value may – in fact, often does – vary from the market value when it’s time to buy or sell.

The main function of the assessment is not to set a benchmark for a market price but rather to calculate property taxes. The assessed value is multiplied by the mill rate set by city council, which in Vancouver in 2010 was $2.14 per $1,000 of assessed value. The property tax on a $1-million home then would have been $2,140 although the total on the tax invoice would be much higher because the city also collects funds for other agencies, including the regional district, school taxes for the B.C. government, TransLink, the Municipal Finance Authority and BC Assessment itself. There is also a shift in the tax burden from business to residents that adds another two per cent or so.

For the city, the important number is the total assessment roll, which increased to $254 billion in the 2012 assessment from $222 billion a year earlier. From this base, the city finance department determines what rate would be required to generate the same level of revenue as the year before and then calculates the rate needed to produce enough additional revenue to finance its operations for the coming year.

The vast majority of taxpayers, close to 99 per cent, do not dispute the assessment on their property. Some may even take delight in the rising value of their homes.

But for all their care, provincial assessors can easily miss improvements that would command a higher listing price, so would-be sellers should get an independent appraisal.

While it is entertaining to cruise the BC Assessment website and compare the value of your home to others, every property is unique and every buyer has his or her own criteria for investing in real estate.

Both buyers and sellers should use caution in their use of the information provided by BC Assessment.

Homeowners planning to neither buy nor sell and who have no objection to the values ascribed to their proper-ties need not concern themselves with BC Assessment’s latest revelations. An assessment notice is not a report card. It’s simply an estimate of what real estate may be worth.

If you have a roof over your head, heat, hot water and enough room to raise your brood, it doesn’t much matter if the provincial assessor says its value is up or down five, 10 or 20 per cent.

It’s your home. Enjoy it.

Source: Vancouver Sun