IN THIS ISSUE:
• September stats — breaking all-time records
• Vancouver delays densification pilot
• Home appraisals — when and how
• Pros and cons of selling part of your home
The monthly stats from Real Estate Board of Greater Vancouver are in and…wow! This is a September to remember!
There were 3,643 homes sold in Metro Vancouver last month, an all-time record for September. It was a 56.2 per cent increase from September 2019, a 19.6 per cent increase from August 2020, and 44.8 per cent above the 10-year September sales average!
Why?
The market had been pointing in this direction. There are explanations, some readily available by talking to either Jennifer or Dale, some that may emerge over the coming months as the coronavirus runs its course. These realtors will have their fingers on that pulse, to analyze the changing dynamics of this market.
The reality is that September was better than August, and August was better than July. Both were better than the respective months from a year ago, which is to say long before COVID-19.
The result is that the REBGV’s headline for its current news release is “Home sales and new listing activity reached record levels in Metro Vancouver.”
For the “experts” who made less-than-optimistic projections about real estate after COVID-19 arrived, this is a — to put it mildly — surprising result. For realtors like the ones at Nexus, who saw the pent-up demand coming and adopted more of a wait-and-see attitude, it’s yet another reason why the market in this era has to be monitored so closely.
The REBGV in part explained the statistics in its monthly release:
“We’ve seen robust home sales and listing activity across Metro Vancouver throughout the summer months. This increased activity can be attributed, in part, to lower interest rates and changing housing needs during the COVID-19 pandemic.”
While sales were rocketing, listings were not. There was a 2.6 per cent decrease in number of listings compared to September 2019 and a 2.3 per cent increase compared to August 2020. It’s logical that part of the reason for that is the brisk pace of sales due to the (pent-up) demand of buyers.
At the same time, new listings have increased. In the three categories combined — detached, attached and apartment properties — the Multiple Listing Service (MLS®) reported an increase of 31.6 per cent compared to September 2019 and a 10.1 per cent increase compared to August 2020.
The sales-to-active listings ratio, which over time impacts home prices, was 27.8 per cent overall, and 28.3 per cent for detached homes, 36.1 per cent for townhomes, and 24.8 per cent for apartments. Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
As always, the months ahead have that answer, too.
That the current, clever explanation for the growing number of people no longer going to the office
every day is: “I do not work at home — I live at work.”
They kicked the plan down the road.
By a vote of 7-2, councillors referred Making HOME to city staff for further consideration, and that report is not due back until after May 2021.
Vancouver Mayor Kennedy Stewart endorsed the pilot project to bring more affordability to his city by having 100 homeowners participate in a concept that would have allowed up to six dwellings on a lot that could support them, so that owning a home isn’t so far out of reach for so many residents.
This bears some resemblance to what News From Nexus readers already know — that large lots with single-family dwellings can be converted to multiple-dwelling lots designed to make living in the city more affordable. For months now, Nexus Realty has explored how Character Homes and their lots can be utilized to include more types of family living.
So what’s “multiple-dwelling?”
In the view of Mayor Stewart, it’s six, the maximum number of homes that Making Home would have allowed on one city lot, with caveats and conditions.
The vote was efficiently covered by Business In Vancouver writers Glen Korstrom (before the council meeting) and Mike Howell (after). In addition to explaining why the plan was kicked down the road, BIV also traces the history of densification in Vancouver, of the current proponents and opponents of Making HOME, and of the goals and possible results of the latest move to densify the city.
You can find their works by clicking on the links above, or by going to Business In Vancouver.
Delay in step for Vancouver densification
On the second last night of September, the latest step in the densification of Vancouver went to a vote at City Council. The councillors were voting on a plan called Making HOME — Making Housing Options for Middle-income Earners — a pilot project to allow multiple dwellings on single-family lots in the City of Vancouver.They kicked the plan down the road.
By a vote of 7-2, councillors referred Making HOME to city staff for further consideration, and that report is not due back until after May 2021.
Vancouver Mayor Kennedy Stewart endorsed the pilot project to bring more affordability to his city by having 100 homeowners participate in a concept that would have allowed up to six dwellings on a lot that could support them, so that owning a home isn’t so far out of reach for so many residents.
This bears some resemblance to what News From Nexus readers already know — that large lots with single-family dwellings can be converted to multiple-dwelling lots designed to make living in the city more affordable. For months now, Nexus Realty has explored how Character Homes and their lots can be utilized to include more types of family living.
So what’s “multiple-dwelling?”
In the view of Mayor Stewart, it’s six, the maximum number of homes that Making Home would have allowed on one city lot, with caveats and conditions.
The vote was efficiently covered by Business In Vancouver writers Glen Korstrom (before the council meeting) and Mike Howell (after). In addition to explaining why the plan was kicked down the road, BIV also traces the history of densification in Vancouver, of the current proponents and opponents of Making HOME, and of the goals and possible results of the latest move to densify the city.
You can find their works by clicking on the links above, or by going to Business In Vancouver.
The time and person to appraise your home
Having your house appraised to check out its value is often the first step in putting it on the market. It’s the first step of preparation and, while it can be capably handled by a professional appraiser, it’s important to remember it’s part of being a realtor.
Realtors bring more than an appraisal to the table.
Here is how Nexus Realty realtors approach appraisals:
“We love to be involved in the appraisal process,” says Dale Clark. “Our philosophy is to develop strategic options for clients, both personally and professionally. If ‘this’ is the best now, is there a better idea? We try to find what’s best for them and then how do they get there? We really help clients make a decision based on their needs, their objectives and their strategy, to get the best value at the lowest risk.”
Realtors like Dale and Jennifer will also point out what improvements (if any) are advisable to maximize the value of your home before listing it. They know what current buyers are looking for, and they know the current state of the real estate market, which is critical in deciding when to list. To find out all of that, and more, only takes a phone call (604-922-3363) for expert help in finding out.
But even if you’re not ready, it never hurts to think about selling, and it never hurts to have an appraisal in your back pocket when the time arrives.
Pam and Pete Sack, West Vancouver:
“Your patience, professionalism and insights into the Vancouver real estate market was more than we would have ever expected. You always had our best interest at heart and your ongoing support was truly appreciated."
What they’re saying about real estate…
“It’s hard to tell whether this pent-up demand has been satisfied, or whether this trend will continue in the fall and winter. Either way, we’ll keep you updated on the latest numbers and insights.” — realtor.ca
“…29% of first-time homebuyers [are] searching outside of the [cities] and turning to the suburbs or more rural areas…with working from home becoming more prevalent, a quarter of prospective buyers are moving their searches away from a condo or townhome, to a detached home with more space.” — new Housing Survey from BMO Bank of Montreal, in Toronto Storeys real estate news
“The housing market will no longer be able to escape the poor condition of the labour market as vacancy and delinquency rates rise in 2021.” — Abhilasha Singh of Moody’s Analytics
“The housing market will no longer be able to escape the poor condition of the labour market as vacancy and delinquency rates rise in 2021.” — Abhilasha Singh of Moody’s Analytics
Selling equity in your home: the right thing to do?
A single, middle-aged Dad of two university-aged sons lives in the home where his boys were raised. As retirement looms, he finds that he’s house-poor. This could be anywhere, of course. It happens to be in Small City, Canada.The man has an idea. He wants to find somebody to share in the cost, equity and comfort of his home so he can continue to live in it. He’s willing to sell an interest, perhaps even a majority share, of the home he doesn’t want to sell.
Seems like a good idea?
He thinks it is, and maybe for him it is. But anyone in a similar situation has at least a couple of other options.
• Rent out enough of the house to make day-to-day living more affordable. Either way, selling a share or having a renter, he’s going to have somebody else living in his house and this way their rent will likely pay the cost of keeping it, while he retains the equity and maintains his at-home comfort.
• Take out a reverse mortgage. He keeps 100 per cent control of his property. He pays no interest or taxes on receiving proceeds from selling equity. And the house will be paid off when he sells it or passes away.
Suppose, however, he’s anxious to make a large, lump-sum payment to his retirement fund, and the only way he can see that happening without leaving “home” is to sell equity in his house…or sell the house.
That becomes a partnership.
If he’s sharing the home, its expenses, its decisions, its equity and its comfort with a partner or partners, there could be surprises. Anybody who has had a business partner may have a story or two to tell about “surprises.”
In this man’s case, he’d want to be sure that his partner had the same motives and the same modus operandi, or he could wind up having to sell the house (the possibilities here are myriad) when he doesn’t want to sell. He might wind up yielding control of his plan, and his destiny. That doesn’t mean if you’re thinking about adopting his strategy that it’s doomed to fail. It just means you have to be aware of the potential, good and bad, and to consider all the options.
Real Estate Monthly Statistics
The following statistics for West Vancouver, North Vancouver, Vancouver West and Vancouver East
compare September 2020 to September 2019 (note: sales refers to number of sales, not to sale prices).
Benchmark Price: Estimated sale price of a benchmark property. Benchmarks represent a typical property within each market.
To see more information on local stats, please click here.
• 17-4957 Marine Drive, West Vancouver
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Virtual events to enjoy in October
Looking for things to do online in the remaining weeks of summer? Below is our October list of virtual events — contributions from readers are welcome.
West Vancouver United Church
Sunday service 10 a.m.
wvuc.bc.ca/worship/
Tourism Vancouver
Virtually Vancouver, and more
www.tourismvancouver.com
Vancouver Aquarium Live Cams
Otters, Penguins, Jelly Fish
https://www.vanaqua.org/live-cams
BC Winery Virtual Tours
http://www.bcwine.ca/virtual-winery-tours
Vancouver Art Gallery
Art Connects — a series of online gatherings that encourage dialogue and connection in the era of physical distancing.
http://www.vanartgallery.bc.ca/exhibitions/art-connects
Every Tuesday and Friday, the Gallery will stream live and interactive conversations into your homes, featuring guests from local and international arts communities. Everyone is invited to join via Zoom.
Play: Kids Yoga Day
Kids and parents: ready to move and have fun together!
www.eventbrite.ca/e/play-kids-yoga-day-powered-by-mymomentum-uphoria-yoga-tickets-102448062914
Connect with Family and Friends
To connect with family and friends you can use Facebook, Messenger, FaceTime, Google Duo or Hangouts, Zoom, Instagram Video Chat, Snapchat Video and Chat, Skype, WhatsApp…the list is long. Check with family or friends and decide which is the best way to connect.
Tired of Cooking?
Many restaurants are offering take-out. Breaking Bread Now provides a list of restaurants in different areas with take-out meals breakingbreadnow.com/.
On Facebook there is a group called Support Local Business which supports local restaurants and businesses and gives them and others the opportunity to spread the word. Maybe your area has a similar Facebook group: www.facebook.com/groups.
Need some culture or learning in your life?
Go to a virtual museum — you’ll find a lot of them through Google: https://artsandculture.google.com
And for Canadian museums: http://www.virtualmuseum.ca/virtual-exhibits/type/virtual-exhibits/
Go to a virtual opera: https://www.metopera.org/
You can even take a virtual tour of The Louvre in Paris: www.louvre.fr/en/visites-en-ligne#tabs
Visit the Science Centre: www.scienceworld.ca/
Nature web cams can be fun to watch: explore.org/livecams
Search for lots of free learning programs for kids and adults online.
Visit your Library for virtual programming
westvanlibrary.ca/
www.nvcl.ca/
nvdpl.ca/
www.vpl.ca/digitallibrary
Need some exercise?
Go for a walk and get some fresh air if you’re healthy and following physical distancing.
Here is a link to some free exercise programs posted on CBC: www.cbc.ca/life/wellness/
Many exercise, yoga or meditation videos are available on YouTube.
West Vancouver United Church
Sunday service 10 a.m.
wvuc.bc.ca/worship/
Tourism Vancouver
Virtually Vancouver, and more
www.tourismvancouver.com
Vancouver Aquarium Live Cams
Otters, Penguins, Jelly Fish
https://www.vanaqua.org/live-cams
BC Winery Virtual Tours
http://www.bcwine.ca/virtual-winery-tours
Vancouver Art Gallery
Art Connects — a series of online gatherings that encourage dialogue and connection in the era of physical distancing.
http://www.vanartgallery.bc.ca/exhibitions/art-connects
Every Tuesday and Friday, the Gallery will stream live and interactive conversations into your homes, featuring guests from local and international arts communities. Everyone is invited to join via Zoom.
Play: Kids Yoga Day
Kids and parents: ready to move and have fun together!
www.eventbrite.ca/e/play-kids-yoga-day-powered-by-mymomentum-uphoria-yoga-tickets-102448062914
Connect with Family and Friends
To connect with family and friends you can use Facebook, Messenger, FaceTime, Google Duo or Hangouts, Zoom, Instagram Video Chat, Snapchat Video and Chat, Skype, WhatsApp…the list is long. Check with family or friends and decide which is the best way to connect.
Tired of Cooking?
Many restaurants are offering take-out. Breaking Bread Now provides a list of restaurants in different areas with take-out meals breakingbreadnow.com/.
On Facebook there is a group called Support Local Business which supports local restaurants and businesses and gives them and others the opportunity to spread the word. Maybe your area has a similar Facebook group: www.facebook.com/groups.
Need some culture or learning in your life?
Go to a virtual museum — you’ll find a lot of them through Google: https://artsandculture.google.com
And for Canadian museums: http://www.virtualmuseum.ca/virtual-exhibits/type/virtual-exhibits/
Go to a virtual opera: https://www.metopera.org/
You can even take a virtual tour of The Louvre in Paris: www.louvre.fr/en/visites-en-ligne#tabs
Visit the Science Centre: www.scienceworld.ca/
Nature web cams can be fun to watch: explore.org/livecams
Search for lots of free learning programs for kids and adults online.
Visit your Library for virtual programming
westvanlibrary.ca/
www.nvcl.ca/
nvdpl.ca/
www.vpl.ca/digitallibrary
Need some exercise?
Go for a walk and get some fresh air if you’re healthy and following physical distancing.
Here is a link to some free exercise programs posted on CBC: www.cbc.ca/life/wellness/
Many exercise, yoga or meditation videos are available on YouTube.
