Housing prices slumped in the second half of 2011, but real estate markets in the Lower Mainland ended up for the year overall.

Of course, Vancouver’s real estate market played a significant role.

The gain was bigger in the western half of the region, with the Real Estate Board of Greater Vancouver reporting detached house prices typically rose 11.2 per cent for the year to $887,000.

Of interest is that the hottest gain was a 34 per cent jump in Port Moody home prices, where the Evergreen Line is now assured to pass through after funding for the SkyTrain extension was secured in recent months.

House prices on the west side of Vancouver also gained 20 per cent, while the east side, West Vancouver, North Vancouver, Burnaby and South Delta all saw benchmark house prices gain 13 to 16 per cent.

Attached homes and condos gained more modestly, up roughly four per cent on average.

The Fraser Valley Real Estate Board (FVREB), which covers Surrey, White Rock and North Delta, reported benchmark house prices gained 3.3 per cent in 2011 to $523,000.

Townhouses and condos dipped, however, declining 2.1 per cent (to $315,000) and 1.2 per cent (to $237,000) respectively.

“One trend from 2011 that is clear was the preference for single family homes,” FVREB president Sukh Sidhu said. “For the most part in our region, both sales and prices of townhomes and condos either stayed on par with 2010 or decreased.”

The hottest area was White Rock and South Surrey, where sales were strong and prices of benchmark detached houses climbed 10.8 per cent to $818,000.

The most expensive cities in which to buy property across the Lower Mainland remained the west side of Vancouver with benchmark detached houses nearing the $2 million level, West Vancouver houses at nearly $1.7 million and Richmond, at $1.07 million.

Benchmark houses can still be found for under $600,000 in areas like Maple Ridge, Pitt Meadows, North Delta, Surrey, Port Coquitlam and Langley in Metro Vancouver. In the Fraser Valley, equivalent prices are $424,000 in Abbotsford and $344,000 in Mission.

The Greater Vancouver statistics show the average residential property bought five years ago has gained almost 30 per cent since then.

Detached houses performed slightly better (up 38 per cent) than condos or townhouses (both up just over 20 per cent) over the five years.

Median prices of detached houses in the Fraser Valley are up 26 per cent over five years.

Source: Jeff Nagel, Surrey North Delta Leader

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.

© Copyright (c) The Vancouver Sun

The price of homes in Canada will continue rising this year, but Toronto and Vancouver’s housing markets will grow much more slowly, predicts the country’s largest real estate broker.

Low mortgage rates will continue underpinning housing demand despite the weakening economy, said Royal LePage Real Estate Services in its annual housing outlook Thursday.

LePage president and CEO Phil Soper said that predictions from housing experts and economists for a drop in prices for 2012 are wrong as mortgage rates remain near record lows.

“Interest rates are the primary driver behind activity levels in the marketplace,” Soper said. “People buy homes on the payments that they will be making, not on the sticker price of a particular home.”

Most experts believe interest rates will remain stable for this year and well into next as the economy expands sluggishly, but eventually rates should rise with stronger growth.

Royal LePage, which franchises real estate agencies across the country, predicted the national average price for resale homes will rise 2.8 per cent by the end of the year.

The forecast follows a gain of 4.2 per cent in the national average price for a standard two-storey home to $375,427 in the just completed fourth quarter of 2011.

In Vancouver, a standard two-storey home had an average price of $1.1 million in the fourth quarter, up 10.9 per cent from a year earlier, while Toronto saw a home in the same category gain 4.2 per cent to $629,000.

But for 2012, Royal LePage expects prices in Vancouver to gain about 2.3 per cent, while Toronto is expected to see growth of 2.6 per cent.

Regina is expected to lead the country with gains of five per cent for the year, reflecting the sharp growth in Saskatchewan, a province rich in potash, oil, uranium and other resources.

Soper noted that affordability in Vancouver is “on a knife’s edge” as people spend upwards of 70 per cent of their post-tax income on their mortgage, property taxes and utilities.

The economic slowdown in China may also affect the market in Vancouver, which has a large Chinese-Canadian population with economic and business ties to China.

“If the investment from China slows, it will change the high-end and certain neighbourhoods,” Soper said, noting that the west side of Vancouver, West Vancouver and Richmond have all seen in influx of wealthy Chinese buyers.

The International Monetary Fund has said that Canadian homes on average are 10 per cent overpriced and warned it may be a factor that puts the country’s economic recovery at risk.

The Bank of Canada has also repeatedly cautioned prospective buyers to guard against being lured by low mortgage costs because interest rates and therefore monthly payments, will eventually increase as the economy gets stronger.

However Soper suggested that moves made by Ottawa to tighten mortgage lending rules have helped limit the risks.

“The government has made small but significant regulatory changes that have restricted access to the more risky mortgage products post the recession,” he said.

The Royal LePage forecast came as the Statistics Canada reported the price of new homes rose again in November, led by gains in Toronto and Montreal.

The government agency’s new housing price index rose 0.3 per cent in November, after a 0.2 per cent increase in October. On an annual basis, the index was 2.5 per cent higher in November compared with November 2010.

The largest year-over-year price increases reported by Statistics Canada were in Toronto and Oshawa, Ont., where they were up 6.2 per cent.

In the fourth quarter, the average price for detached bungalows rose 7.2 per cent from a year earlier to $532,137; prices for standard two-storey homes rose 4.2 per cent to $629,188 and standard condos rose 3.4 per cent to $347,659.

In Victoria and Saint John, N.B., house prices were flat or slightly down in the fourth quarter year over year.

In Saint John, detached bungalows fell 2.2 per cent year-over-year to $179,946, while standard two-storey properties slipped 0.3 per cent to $298,076. Condos were the exception, with average prices climbing 16.1 per cent year-over-year to $159,370, although LePage said those increases weren’t typical.

In Victoria, standard two-storey homes were unchanged, with prices remaining at $480,000 while detached bungalows slipped 0.8 per cent to $486,000 and condos dropping 1.1 per cent to $282,000.

Source: Craig Wong, The Canadian Press

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

Toronto “is starting to stand out as the hottest real estate market right now,” following the release of December sales figures, BMO Nesbitt Burns economist Robert Kavcic says.

However, that may be somewhat of a booby prize, as the Canadian market, following a 13-year boom, is cooling overall – and Toronto is expected to follow suit, he added.

The Toronto Real Estate Board said Thursday that Greater Toronto real estate agents reported 4,718 sales in December, up 10.1 per cent from the same period in 2010. The average selling price was $451,436, up 4 per cent year over year.

That capped off the second-best year on record under the board’s current boundaries, dating to 1994. “Low borrowing costs kept buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” board president Richard Silver said in a release. The board said buyers were held back by a shortage of listings, while tight market conditions kept upward pressure on selling prices.

It’s a different story for Vancouver’s real estate market, where the number of residential sales in December tumbled by 12.7 per cent over the same period a year earlier, according to figures released this week by the Real Estate Board of Greater Vancouver. Sales for 2011 were 5.9 per cent above 2010 levels but 9.2 per cent below 2009. The overall residential benchmark price, as measured by the MLSLink Housing Price Index, has also dropped by 1.5 per cent since June.

Earlier this week, TD senior economist Jacques Marcil predicted both B.C. and Ontario could face challenging housing markets over the next two years.

Mr. Kavcic said the ratio of sales to new listings in Toronto and throughout Ontario “is pretty much in line with historical norms,” but noted that the number of starts for new multiple-unit dwellings (largely condos) in Ontario over the past 12 months had outpaced single family homes by a factor of 1.5 to 1, up from a ratio of close to 1 to 1 over the past decade and “pretty well the largest discrepancy we’ve seen in a long time.”

As a result, “to the extent where there is downward pressure on prices, the condo market is more at risk” in Toronto, he said.

Merrill Lynch warned last month that housing prices could correct by as much as 10 per cent in the next two years in Canada because of weakness in the economy, expressing particular concern about Toronto’s condo market. The Bank of Canada also warned the Toronto market looks overbuilt and could see prices drop.

Source: Sean Silcoff, Globe and Mail

It’s BC home assessment time again!

The easiest way to see what value your home has been assessed at for 2012 is to click on this link, http://evaluebc.bcassessment.ca, and enter your address.

In a nutshell, North Vancouver home prices went up. Lions Bay and Squamish prices down. Vancouver, West Vancouver went way up. Whistler went way down.

When Metro Vancouver and regional property owners receive their 2012 assessment notices in the mail over the next few days, they’ll see a wide variation in values by region, city and neighbourhood.

The Sea to Sky region, for example, will see assessments generally down, with Squamish homeowners’ property values dropping up to 10 per cent in some areas and rising five per cent in others, according to BC Assessment. The valuation date was July 1, 2011.

In Whistler and Pemberton, some property owners will see decreases in values up to 15 per cent.

In comparison, North Vancouver home assessments have risen five to 15 per cent, while West Vancouver property owners will see significant increases in the 15-to-30-per-cent range.

Vancouver’s 192,000 property owners can also expect big hikes.

“Almost all homes in [the city of Vancouver] are increasing in value compared to last year’s assessment roll,” said area assessor Jason Grant in a statement. “Most single family homeowners in Vancouver will see significant increases, in the 10 per cent to 25 per cent range. Strata condominium owners will also see increases, but typically less than 10 per cent.”

Property owners in Richmond and Burnaby will also see sharp increases in assessments.

Paul Borgo, deputy assessor with the Vancouver Sea to Sky region, said in an interview that while it’s not unusual to see wide variations in value by region, city or even neighbourhood, “the city of Vancouver has been quite robust in 2011. However, the west side outperformed the east side in single family terms. And West Vancouver also has a very strong market.”

Rosario Setticasi, president of the Real Estate Board of Greater Vancouver, agreed, citing Vancouver’s west side, West Vancouver and Richmond as markets that performed better than others. “They’re favoured areas for people to live in [and] there was some influence from foreign investment.”

Setticasi also noted the assessments reflect values on July 1. “We had a surge in the beginning of [2011], it peaked in the summer, and came down a bit in the second half of the year, which won’t be reflected in the assessment.”

Robyn Adamache, senior market analyst for Metro Vancouver, Canada Mortgage and Housing Corp., said she is not surprised at the variation in assessment values given the fundamentals of the region’s real estate market in 2011. “There were wide variations in growth in home prices in different municipalities, so I would expect more variation than usual.”

Overall, Vancouver’s assessment roll increased from $222 billion last year to $254 billion this year, while West Vancouver’s assessment roll increased from $26.4 billion last year to more than $30.2 billion this year.

But Squamish’s assessment roll declined from $3.92 billion last year to $3.81 billion.

An example of local market trends, according to BC Assessment, is a single family home in Squamish’s Garibaldi Highlands neighbourhood which will see its assessment drop from $531,000 to $497,000, while another home in Whistler’s Alpine Meadows neighbourhood will see its assessed value drop from $964,000 to $918,000.

However, a home on a 50-foot lot on Vancouver’s west side will see its value rise from $1.19 million to $1.645 million, while another east Vancouver detached home on a 33-foot lot will rise from $816,000 to $1.03 million.

In West Vancouver’s tony British Properties, an example of the trend to higher prices is a home that will rise from $1.53 million to $2.2 million.

In the Fraser Valley, property owners will see little change in values this year.

“Most homes in the Fraser Valley have remained stable in value compared to last year’s assessment roll,” said deputy assessor John Green.

On a percentage basis, the total change for all residential property types was up 7.9 per cent in Surrey, 16.4 per cent in Vancouver, 16.5 per cent in Richmond, 5.2 per cent in New Westminster, 12.2 per cent in Burnaby, 6.9 per cent in Coquitlam, 5.1 per cent in North Vancouver city, 7.6 per cent in North Vancouver district, 15.9 per cent in West Vancouver, but down 1.9 per cent in Squamish, five per cent in Lions Bay, 6.2 per cent in Whistler and 3.2 per cent in Sechelt.

Pat Kelly, owner of Whistler Real Estate Company, said the resort municipality saw a drop in sales both before and after the 2010 Olympics, although the market has picked up since summer.

“There was a volatile world economic situation [and] people were looking for value for their money, things they need as against things they want.”

He said that while activity picked up in late 2011, prices haven’t reflected that because most activity is in the under-$1 million market.

He also noted that there has been a “noticeable” drop in buyers from the U.S.

Kelly, whose company is also involved in the Squamish market, said Squamish prices have flatlined, partly because there’s no major employer in the town.

“Squamish hasn’t had the same appeal as other suburban markets, and I don’t know why. It’s very good value for an area within 40 minutes of downtown Vancouver.”

Assessments were generally stable or down in other parts of the province, including Penticton and Kelowna, which saw a drop of 2.7 per cent in the total value of all residential properties.

The total number of B.C. properties on the 2012 roll is 1,917,394, a 0.75-per-cent increase from 2011.

The total value of real estate on the 2012 roll is $1.1 trillion, a 6.42-per-cent increase from 2011.

Source: Brian Morton, Vancouver Sun

Canada’s resale housing market tightened slightly in November, as sales rose in more than 50 per cent of markets while the number of listings declined, the Conference Board of Canada said Tuesday.

Sales rose in 16 of the 28 markets the board tracks for its metro resale index, with seven of those markets posing a gain of more than five per cent over October’s number. Year-over-year sales rose in 15 areas, down from October, when 20 of the urban areas posted sales growth over 2010.

“The supply of new listings fell in 23 of 28 markets in November, but still exceeded year-earlier levels in 20 jurisdictions,” the board said. “An easing in supply of listings, combined with slightly weaker sales gains, lifted the sales-to-listings ratio in November in 23 markets. This left four areas as ‘sellers’ markets, while 21 remain ‘balanced’.”

The drop in listings resulted in higher prices in 17 areas month-over-month, while the year-over-year price was higher in 19 — with 16 markets recording growth of four per cent or more.

The Conference Board predicts all but three of the 28 markets it tracks for the index will see some increase in housing prices in the short term — the Ontario cities of Oshawa, London and Windsor being the exceptions.

Saskatoon and several Quebec markets — Gatineau, Montreal, Quebec, Sherbrooke, Trois-Rivieres and Saguenay — are expected to see the biggest increases in housing prices in the near term, the board said, predicting a seven per cent year-over-year gain.

A five per cent gain appears to be in the cards for Victoria, Vancouver, B.C.’s Fraser Valley, Calgary, Edmonton, Regina, Winnipeg, Halifax and Newfoundland, the board said. It expects housing prices to rise three per cent in Saint John, as well as the Ontario centres of Thunder Bay, Sudbury, Toronto, Hamilton, St. Catharines, Kitchener, Kingston and Ottawa.

Source: Financial Post

Metro Vancouver home sales in November were down compared to a year ago, but up slightly from October, according to a report released by the Real Estate Board of Greater Vancouver Friday.

“The pace of home listings entering the market eased slightly in November, compared to recent months, while sale levels remained fairly normal for this time of year,” REBGV president Rosario Setticasi said in a statement. “November activity helped put our market firmly in balanced territory.”

According to the report, sales totalled 2,360 in November, a 5.9-per-cent decline compared to the 2,509 sales in November 2010 and a 1.9-per-cent increase compared to the 2,317 sales in October 2011.

Last month’s total is also 5.8 per cent below the 10-year average for November sales.

The total number of properties currently listed for sale currently sits at 14,090, a drop of nine per cent compared to October 2011 but an increase of 13 per cent when compared to this time last year.

As well, the benchmark price for all residential properties increased 7.2 per cent to $622,087 in November from $580,080 in November 2010.

Since reaching a peak in June of $630,921, the price has declined 1.4 per cent.

Meanwhile, November sales in the Fraser Valley are up slightly compared to the same month last year and didn’t experience the usual month-over-month seasonal decline.

The Fraser Valley Real Estate Board reported that it processed 1,120 sales in November, an increase of three per cent compared to the 1,084 sales during the same month last year and a decrease of two per cent compared to 1,139 sales in October.

In the last decade, sales decreased on average nine per cent from October to November.

In November, the benchmark price of a detached home in the Fraser Valley was $532,086, an increase of 5.4 per cent compared to $504,848 in November 2010 and an increase of 0.3 per cent compared to October.

Source: Brian Morton, Vancouver Sun

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.