MARK YOUR CALENDARS! The BC Home & Garden Show takes place this year from February 20th-24th.

The BC Home + Garden Show is the most trusted resource for every home improvement project, inside and out. Enjoy five days of insight and inspiration for making every house a home, featuring HGTV stars like Bryan Baeumler of Leave It To Bryan, Paul Lafrance from Decked Out and Vancouver’s own Philip DuMoulin & Sarah Daniels of Urban Suburban, 425 retailers and a full line-up of new features, all under one roof.

OPENING NIGHT is Wednesday, February 20th, 4pm – 9pm where the show kicks off with a night of perks, refreshments and entertainment tailored to every designing woman. Start at the Home Cooking Stage and catch the SHAW Cooking with Fire Chili Cook-off featuring the kitchen talents of firefighters from across the Lower Mainland, then stick around for a ladies-only beer tasting seminar presented by Just Here for the Beer. Add lots of female-friendly social media giveaways, free swag bags for the first 100 show-goers and plenty of surprises!

Don’t miss Family-friendly on Thursday, Spring Fashion Show on Saturday, Around the World in Eight Gardens, artwork, Portobello West, and so much more!

For further information, please see BC Home & Garden Show.

Canadian housing starts plunged in January as both single and multiple starts fell, particularly in Ontario, Canada Mortgage and Housing Corp said on Friday in a report that showed the housing market was even weaker than expected.

The agency says there were 9,904 actual starts last month, compared with 13,038 in January 2012.

The seasonally adjusted annualized rate of housing starts was 160,577 units in January, down from 197,118 in December. The December figure was revised down from the 197,976 units reported previously.

The CMHC said it was preferable to focus on the six-month moving average of housing starts, which were trending at 203,208 units in January.

Canadian housing starts plunged in January as both single and multiple starts fell, particularly in Ontario, Canada Mortgage and Housing Corp said on Friday in a report that showed the housing market was even weaker than expected.

The agency says there were 9,904 actual starts last month, compared with 13,038 in January 2012.

The seasonally adjusted annualized rate of housing starts was 160,577 units in January, down from 197,118 in December. The December figure was revised down from the 197,976 units reported previously.

The CMHC said it was preferable to focus on the six-month moving average of housing starts, which were trending at 203,208 units in January.

Source: Reuters, Canadian Press

Homebuyers in the Lower Mainland remained on the sidelines in January, with markedly lower sales in both Metro Vancouver and the Fraser Valley.

The Real Estate Board of Greater Vancouver saw 1,351 sales cleared through the Multiple Listing Service in January, down 14 per cent from the same month a year ago. And January’s sales were down 18 per cent from the previous month.

In the Fraser Valley, the sales decline was even steeper – 23-per-cent lower, to 617.

“January’s numbers are not a surprise,” according to Cameron Muir, chief economist for the B.C. Real Estate Association.

Muir said stricter mortgage rules introduced for first-time buyers last summer bit into sales earlier, but now the bigger factor in declining sales is consumer sentiment that home prices will continue to decline.

Prices in both regions have edged lower from peak levels seen last spring. In Greater Vancouver, the benchmark price for a typical home across the region declined six per cent to $588,100, from $625,100 last May. That price is now 2.8-per-cent lower than the same month a year ago.

In the Fraser Valley, the benchmark price of $420,900 across all property types for typical homes sold was down 2.5 per cent over the last six months.

In his most recent forecast, released last week, Muir estimated lower prices will make housing more affordable for more buyers, and help turn around the decline in sales by the next quarter.

He added that the fundamentals of employment growth, population growth and stronger economic activity that B.C. is experiencing should support a higher level of housing sales than the Lower Mainland saw in January.

“Some buyers may be sitting on the sideline waiting for a deflationary spiral to develop,” Muir said.

“When that doesn’t develop, when they realize they’re not going to see significant declines in pricing, they’ll get on with their lives and move on with purchasing decisions.”

The January numbers do hint at a slowing in the trend of declining sales, according to Tsur Somerville, director of the centre for urban economics and real estate in the Sauder School of Business at the University of B.C.

He noted that in December, Metro Vancouver’s decline in sales was deeper at 31 per cent, so January’s numbers “suggest that there is a possibility the decline in sales should well flatten out.”

And there are some signs home sellers are also beginning to head to the sidelines.

In the Greater Vancouver board, while its inventory of 13,246 homes is 5.6-per-cent bigger than the same month a year ago, new listings slowed 11 per cent to 5,128 in January compared with the same month a year ago. In the Fraser Valley, new listings in January dropped four per cent to 2,643 compared with the same month a year ago, and the overall inventory of 8,031 homes is down 3.5 per cent from last January.

“When a home seller isn’t receiving the kind of offers they want, there comes a point when they decide to either lower the price or remove the home from the market,” Eugen Klein, president of the Real Estate Board of Greater Vancouver said in a statement. “Right now, it seems many home sellers are opting for the latter.”

Source: Derrick Penner, Vancouver Sun

Below is the January report from the Real Estate Board of Greater Vancouver (REBGV).

Home buyer demand remains below historical averages in the Greater Vancouver housing market. This has led some home sellers to remove their homes from the market in recent months.

Residential property sales in Greater Vancouver reached 1,351 on the Multiple Listing Service® (MLS®) in January 2013. This represents a 14.3 per cent decrease compared to the 1,577 sales recorded in January 2012, and an 18.3 per cent increase compared to the 1,142 sales in December 2012.

Last month’s sales were the second lowest January total in the region since 2001 and 18.7 per cent below the 10-year sales average for the month.

“Home sale activity has been below historical averages in Greater Vancouver for about seven months. This has caused a gradual decline in home prices of about 6 per cent since reaching a peak last spring,” Klein said.

Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.9 per cent to $588,100. This represents a 2.8 per cent decline compared to this time last year.

“It appears many home sellers are opting to remove their homes from the market rather than settle for a price they don’t want,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,128 in January. This represents a 10.9 per cent decline compared to the 5,756 new listings reported in January 2012. Last month’s new listing count was 18.9 per cent higher than the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,246, a 5.6 per cent increase compared to January 2012 and a 4.5 per cent decline compared to December 2012. This is the fourth consecutive month that overall home listings have declined in the region.

“When a home seller isn’t receiving the kind of offers they want, there comes a point when they decide to either lower the price or remove the home from the market. Right now, it seems many home sellers are opting for the latter,” Klein said.

With the sales-to-active-listings ratio at 10.2 per cent, the region remains in buyers’ market territory. Since June, this ratio has ranged between 8 and 11 per cent.

Sales of detached properties in January 2013 reached 542, a decrease of 17.8 per cent from the 659 detached sales recorded in January 2012, and a 31.7 per cent decrease from the 793 units sold in January 2011. The benchmark price for detached properties decreased 3.1 per cent from January 2012 to $901,000. Since reaching a peak in May 2012, the benchmark price of a detached property has declined 6.9 per cent.

Sales of apartment properties reached 576 in January 2013, a decline of 12.3 per cent compared to the 657 sales in January 2012, and a decrease of 19.2 per cent compared to the 713 sales in January 2011. The benchmark price of an apartment property decreased 2.9 per cent from January 2012 to $358,400. Since reaching a peak in May 2012, the benchmark price of an apartment property has declined 5.6 per cent.

Attached property sales in January 2013 totalled 233, a decline of 10.7 per cent compared to the 261 sales in January 2012, and a 25.6 per cent decrease from the 313 attached properties sold in January 2011. The benchmark price of an attached unit decreased 1.7 per cent between January 2012 and 2013 to $449,900. Since reaching a peak in April 2012, the benchmark price of an attached property has declined 7.7 per cent.

It’s something that most homeowners think about – is it better to sell your home first before buying the next, or should you buy first so that you know you have something to move into, and then sell your existing home. Here’s an article that I saw in today’s Financial Post, written by Garry Marr.

It’s the first choice you have to make when you decide to move and one that just might define the state of the housing market.

Do you start the process by selling or buying? Buy something and the clock starts ticking on selling your current home because you likely need that money to close the house you just purchased. In markets where sales are plummeting that could be a scary proposition.

So you sell first. But what do you do if you can’t find something you like in the neighbourhood you want. Remember, your kids need to go to that local school and be in the district. Are you prepared to rent for a while?

People in the industry say the tradition historically has been to sell your home and then start shopping for the new one. But in this housing market, with multiple offers the norm and time on the market dropping in many cities, the process reversed and people starting buying, knowing their home would sell with ease.

Could the tide be turning in another sign of a slowdown for housing?

There are drawbacks to both selling first or buying first but the decision is very much based on your view of the market.

One option is to demand a closing date on your purchase a little further out, increasing your odds of selling. Renting is an option, but that market can be tight too.

Real estate agent David Batori says he’s telling his clients to sell first because he believes more listings will come to market in the spring. But he points out that, for a young family, selling first comes with the risk of not finding something in the right neighborhood.

“If you are too picky, you’re in trouble,” said Mr. Batori, who adds if you can carry two properties you should buy the home that is perfect for you with that long closing date.

You are going to need a lot of capital to pull that off because bridge financing at the banks is difficult to obtain without a buyer commitment for your existing home. The banks will provide bridge financing about two percentage points above prime if the closing date for the sale of your home comes after your purchase date, but you have to have a committed buyer.

Ultimately, if you buy first you can reduce the price of the home you are selling to move it.

Forget about trying to walk away from your purchase though, you’ve made a commitment to buy and left a deposit. “You can’t just walk away, you’ll be sued, you are in breach of contract,” says Mr. Batori, adding he has only seen someone try to walk away because of a death.

You can try to buy a home with a condition that says the purchase is subject to the sale of your existing home but you are going up against people with no conditions.

“Sellers will laugh at you,” says Mr. Batori, adding before anybody agrees to that type of offer they’ll have an escape clause in case a firm bid comes in. That clause might give you a right of first refusal but you’ll have to come back with a clean offer with no conditions.

Farhaneh Haque, director of mortgage advice and real estate-secured lending at Toronto-Dominion Bank, cautions against buying without having a firm seller for your existing home.

“You can have the equity for two properties but you also need to have the income to carry both properties,” said Ms. Haque, adding the bank probably won’t extend credit to you for two homes without a high enough income. “It would put you in a situation that is uncomfortable and maybe not even affordable. Do you want to sell a property because you are desperate?”

Doug Porter, chief economist at BMO Capital Markets, said any shift in the trend to buy or sell first will depend on the city because some cities are still sellers’ markets.

“In a sellers’ market you can [buy first],” said Mr. Porter. “In most major cities, we are shifting. Personally, I would sell first.”

Ultimately, it comes down to your view of the market. You want to buy first, you have to be pretty confident you can sell. Are you?

Home sales are forecast to increase this year and next, with average prices dropping slightly in 2013 and crawling higher in 2014, the British Columbia Real Estate Association said Wednesday.

The association’s latest forecast calls for a 5.6-per-cent increase in the number of sales in 2013 and a further 6.1-per-cent increase in 2014, after the number of sales fell 11.8 per cent in 2012. In Metro Vancouver, the number of sales in Vancouver fell nearly 23 per cent in 2012, but the BCREA expects they will pick up over the next two years.

“I think 2013 is going to be a transition year into 2014 and 2015 when we are finally going to see the global economy start to post more regular performance,” said Cameron Muir, BCREA chief economist.

The economic fundamentals in B.C., such as low interest rates and growth in both employment and immigration, predict a much higher level of sales than are now occurring, Muir said.

“Tighter credit conditions introduced last year have had some impact, but a much larger impact is consumer psychology, where we’ve seen many consumers deciding to take a wait-and-see attitude in 2012. I think many of them will enter into the market in 2013.”

The forecast calls for 75,830 units to be sold in 2014 in B.C., while the five-year average is 74,600 and the 10-year average is 86,800 units, BCREA said.

“Sales, particularly in the fourth quarter of 2012 have certainly moderated, and Vancouver sales are likely going to be low again in January,” Muir said. “This forecast represents stronger activity happening in the second half of 2013.”

The average residential price is forecast to drop one per cent in the province to $510,000 in 2013, and edge up 0.6 per cent in 2014 to $513,500, BCREA said. In Vancouver, the forecast calls for average prices to drop 3.3 per cent in 2013 and a further 0.6 per cent in 2014.

“I don’t expect to see prices going anywhere fast, any time soon,” Muir said. “I expect to see prices remain quite flat over the next few years, and they would even likely decline in real terms if you put inflation into the picture.”

Most forecasts are inaccurate because conditions change over time, said Tsur Somerville, director of the centre for urban economics and real estate, Sauder School of Business at the University of B.C. “In general, BCREA is going to tend to be more optimistic than perhaps one of the banks might be.”

Somerville expects Metro Vancouver’s real estate market to remain slow for a while.

“Prices are more likely to decline over the next year than they are to to go up. I would be surprised if the declines are anything other than very moderate,” Somerville said.

Muir said average wages have been growing about two per cent each year, so condominiums and townhouses are becoming relatively more affordable.

“The benchmark price of condos and townhomes has been quite flat for the past three years, and if you discount that for inflation or wage growth, in a very real sense, real prices for apartments and townhouses are down about six per cent over (the) last three years.”

Muir expects an increase in immigration and solid employment will keep the market stable.

“We’re seeing part-time jobs being rolled over into full-time jobs, which points to a more solid underpinning for the economy and the housing market,” Muir said, adding that as the U.S. and the global economies recover, Canada will benefit.

Housing starts in the province will fall 3.5 per cent to 26,500 units in 2013, and go up 1.5 per cent to 26,900 units in 2014, the forecast said. The transition from the harmonized sales tax to the provincial sales tax may add a short-term boost to new homes sales this spring, the forecast said.

Source: Tracy Sherlock, Vancouver Sun

There is no real estate bubble in Vancouver and 2013 is a good time to buy — as long as interest rates remain low, immigration targets are met and Europe’s economy doesn’t melt down, a panel of real estate developers told more than 1,100 real estate professionals, business leaders and B.C. politicians on Thursday.

Colin Bosa, CEO of Bosa Properties, Tony Astles, executive vice-president of Bentall Kennedy, and Eric Carlson, president and CEO of Anthem Properties provided the Urban Development Institute’s annual market forecast while Diana McMeekin, president of Artemis Marketing, moderated.

Bosa said that as long as people continue to move to British Columbia, the real estate market will remain stable. He compared conditions in 2009 to those today and found that demand is similar, although immigration numbers were down in 2012 and two federal immigration programs — the investor program and the skilled worker program — are under review and could be subject to change.

In terms of supply, he said, more units were built in 2012 than 2009, but not many more than the 15-year average.

“The good news for all the salespeople in the room is, you’re going to sell lots of real estate this year, but the bad news is you’re going to have to work at it,” Bosa said, adding that projects near transit service will continue to sell well.

Southeast False Creek and Coquitlam Centre are two areas with a lot of unsold inventory, Bosa said. He said realtors in those areas might have to “sharpen their pencils” and that prices might decline.

However, he said Metro Vancouver condominium developers showed in 2009 that developers can “turn off the tap” quickly when the market slows.

Bosa said he believes people — and their money — from China will continue to flow into B.C. because they want to invest outside China and they want their children to grow up in North America.

“They like it in British Columbia because it’s safe and they’re accepted here,” Bosa said. “There is a good quality of life with universal health care and good schools.”

Two things that could stop the flow of people from China in to British Columbia would be a recession or a change to Canadian immigration policy, Bosa said.

“If you buy good real estate at fair prices, you can’t go wrong,” Bosa said. “It’s not that hard.”

Carlson said B.C. and Canada were protected between 2009 and 2011 while the rest of the world was reeling from the economic crisis. Canada did not really need the extremely low interest rates as much as the rest of the world, and the low rates coupled with immigration, stimulated the housing market.

“We felt a bit smug if we were provincial in our outlook. That ended in 2012. … We started to feel the malaise for the first time,” Carlson said.

But he forecast that 2013 would be a stronger year because of B.C.’s ties to China and the U.S., which are both seeing economic recovery.

“I think this is the year that the fear factor goes away,” Carlson said, adding that he believes immigration will pick up this year and recovery in the housing market in the U.S. will mean many new jobs are created.

“U.S. unemployment will go down to 6.5 per cent this year, while U.S. gross domestic product will be trending towards three per cent by the end of the year,” Carlson said, adding that he thinks 2013 is a good time to buy real estate.

“I don’t think there is a bubble at all,” Carlson said.

Astles predicted the office building market will remain stable in 2013. He warned that a lack of supply means no rent relief until 2016.

He said Burnaby and New Westminster might have some oversupply, but Vancouver’s downtown is healthy. He said multi-family rentals were a low-risk investment, particularly because of limited supply.

He said there are some challenges when it comes to labour, with employees leaving for higher pay in Edmonton and points North, and with many experienced workers retiring.

Source: Tracy Sherlock, Vancouver Sun

A Re/Max survey says 70 per cent of home sales in the next 24 months will be to repeat buyers with some previous experience as owners.

The real-estate marketing organization says second-time or multi-time purchasers will be more fiscally conservative and don’t plan to over-extend themselves.

And it says slightly more than 80 per cent of potential buyers surveyed believed that housing values in their area will rise or remain the same.

Re/Max says 42 per cent of those surveyed said they expected to spend between $250,000 and $500,000.

The findings are in line with other research that found first-time buyers had been discouraged by stricter mortgage rules since last summer and affordability issues.

But the survey found first-time buyers aren’t sitting totally on the sidelines and will make up a third of the market.

The survey also says almost one in five buyers will be single.

“Purchasing patterns have evolved, with a more conservative, fiscally responsible purchaser moving to the forefront,” Gurinder Sandhu, executive vice-president and regional director of Re/Max Ontario-Atlantic Canada.

Re/Max says second-time and multi-time buyers became a more important part of the market in the latter half of 2012.

“While affordability took a hit in 2012, homeowners with considerable equity remain confident and well-positioned. They will be the driving force fuelling the bulk of home sales in the months ahead,” Sandhu said in a news release.

While some buyers intend to downsize or make lateral moves, many of those trading up have amassed considered equity, he said.

Not surprisingly, of those putting down 30 per cent or more, 45 per cent were aged 55 and over, the survey said.

Sandhu noted that first-time buyers are experiencing a period of adjustment.

The survey indicted that singles would be the most cautious buyers with 47 per cent of purchasers intending to spend under $250,000.

Of the buyers planning to spend $500,000 to $1 million, almost half resided in Ontario, while the remaining 50 per cent were almost evenly divided between British Columbia and Alberta.

“Regardless of income, gender, age, or location, most Canadian respondents shared considerable confidence in Canada’s housing market,” Sandhu said.

“This stands as perhaps the greatest indicator that home buying intentions will remain healthy and stable. Combine this with an economic engine that is expected to gain momentum, and the outlook is most certainly positive.”

The national survey, hosted on the Angus Reid Forum in December, was conducted among 1,109 prospective purchasers who intend to buy within the next 24 months.

Re/Max is a leading real estate organization with more than 19,000 sales associates throughout its 750 independently-owned and operated offices in Canada

Source: LuAnn LaSalle, The Canadian Press

There are early signs of a “gradual correction” in the housing market following a period where consumer finances became “stretched,” Bank of Canada senior deputy Governor Tiff Macklem said in a speech last Thursday.

Canadian existing home sales fell in December, led by a drop in Vancouver, capping an annual decline in transactions, a national realtor group said.

Vancouver sales declined 5.3 per cent to 1,792 units in December from November, while across Canada, resales declined 0.5 per cent during the month to 35,386 units, the Canadian Real Estate Association said in a statement on Tuesday.

While the number of transactions dropped 17.4 per cent across Canada from a year earlier, the average home price rose 1.6 per cent to $352,787.

“Successive rounds of tightening mortgage regulations have kept the housing market in check during what has become an extended low interest rate environment,” Gregory Klump, the CREA’s chief economist, wrote in a separate report.

The average resale price in 2012 rose 0.3 per cent $363,740, and the total number of houses sold through the realtor group fell 1.1 per cent to 453,372, according to the group.

Tuesday’s report excluded figures for Quebec, which will be delayed until Jan. 22 at the request of the provincial real estate body, the group said in the report.

The CREA notes the correction in Canada’s housing market gathered momentum in December as the number of new listings slipped, prices moderated and the number of homes sold fell 17.4 per cent from a year earlier, the biggest drop-off in six months.

On a year-over-year basis, the CREA said Tuesday that 20,538 homes were sold across the country through its MLS system last month, down from 24,850 in December 2011, and 0.5 per cent lower than in November.

The increase in prices also continued to slow, tipping in at only 1.6 per cent from a year ago to $352,800 – about the level of overall inflation.

“The housing market is clearly in correction mode,” said Derek Holt, vice-president of economics at Scotia Capital.

“But this is certainly nothing even close to the U.S. and European experience and I don’t think we’re headed in that direction, but it’s still sizable.”

Analysts note sales are down by double digit margins since Finance Minister Jim Flaherty tightened mortgage rules in July to cool the market, adding that it a needed correction to avoid a bigger problem in future.

Klump said he believes the new rules, on top of three previous rounds of tightening, have had an impact.

Since July, the market has experienced contractions in sales, construction, building permits and property listings.

The only anomaly is prices, which have continued to rise, although at a more measured pace.

Source: The Province

Give up the commute for this spacious 4-bedroom property (approx. 1/2 acre) in peaceful residential Rockland in Victoria.

Enjoy the picturesque distant ocean and Olympic views from both floors of this charming home. The original home was built in 1954 and has enjoyed a few additions during its lifetime.

The living and dining rooms stretch across the sunny south side overlooking the gardens, tiered decks and vista. The office right off the gourmet kitchen is perfect for homework. Lots of room to breath in the 18 x 16 master suite with 5-piece ensuite. There a lovely quiet sitting room to hang out in as well.

The nanny, mom or older child will certainly enjoy the independent upper 1-bedroom accommodation.

Traditional, roomy and snug – the perfect place to come home to.

$1,325,000
MLS # 318035

For further information, please see Rockland home for sale.