Welcome to our Newsletter
Each month, we compile statistics, articles, thoughts and even events that we think will be of interest and relevance to readers of the Nexus newsletter. Having said that, we’re always open to suggestions for what you would like to see addressed in this space. One thing to remember about the statistics is they can be a little misleading, especially when the real estate market is down, because the percentages may be based on a small sample size. In December, for example, sales of attached homes in West Vancouver are up 500% from 2017 to 2018. That’s because there was only one attached home sold in December 2017…and there were five last month. Similarly, North Van listings were down 70% from the same month last year, because there were just six listings in December 2018. So “statistics” are published to show real estate trends. As always, we welcome your feedback.— Jennifer and Dale
Character Homes — exceptional opportunities
Warren Buffett, who was an American business magnate before he became the philanthropist he is today at age 88, has been known to say something about catching the wind when it’s blowing the other way. If he were talking about today’s real estate market, that would mean looking for something that many don’t see.
There are always exceptional opportunities in tough times. You just have to find them. We think these special opportunities can be defined by Character Homes, because they give people in the City of Vancouver market a chance to find affordable housing that is good value with a chance to be profitable. Affordable, value, profitable…three words that rarely seem compatible in a city where it’s hard to imagine buying a home for under seven figures.
Character Homes are not to be confused with Heritage Homes, because there are incentives related to Character Homes when you keep them; incentives that don’t apply to Heritage Homes. With Character Homes, the opportunity is enhanced by the current real estate market, and it’s an opportunity that is complex but exciting and entirely do-able.
We know it’s true because we’ve done the research and we’re anxious to share it with buyers who until now have felt shut out of real estate within close proximity to the heart of the city. We feature one Character Home on the website all the time, and we list Character Homes currently on MLS® in the City of Vancouver. If you’re interested in finding out more about Character Homes, call us.
These days, buyers are enjoying market conditions. Having Character Homes in play just makes the good news better, and the concept more appealing.
One of Warren Buffett’s quotes covered both ends of a market: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
To see more details about Character Homes, visit that section on the Nexus website, and to find out the details of how Character Homes can work to your advantage, contact either Jennifer or Dale at (604) 922-3353 or at their email addresses: jenniferclark@nexusrealtycorp.com and daleclark@nexusrealtycorp.com.
Character Homes are not to be confused with Heritage Homes, because there are incentives related to Character Homes when you keep them; incentives that don’t apply to Heritage Homes. With Character Homes, the opportunity is enhanced by the current real estate market, and it’s an opportunity that is complex but exciting and entirely do-able.
We know it’s true because we’ve done the research and we’re anxious to share it with buyers who until now have felt shut out of real estate within close proximity to the heart of the city. We feature one Character Home on the website all the time, and we list Character Homes currently on MLS® in the City of Vancouver. If you’re interested in finding out more about Character Homes, call us.
These days, buyers are enjoying market conditions. Having Character Homes in play just makes the good news better, and the concept more appealing.
One of Warren Buffett’s quotes covered both ends of a market: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
To see more details about Character Homes, visit that section on the Nexus website, and to find out the details of how Character Homes can work to your advantage, contact either Jennifer or Dale at (604) 922-3353 or at their email addresses: jenniferclark@nexusrealtycorp.com and daleclark@nexusrealtycorp.com.
Number of Metro Vancouver homes sold now at Y2K levels
This first month of 2019 brings comparisons to previous years of real estate activity. According to the Real Estate Board of Greater Vancouver, home sales in 2018 were the lowest since the year 2000.
Driven by high home prices, rising interest rates and new mortgage requirements and taxes, residential sales on MLS ® in Metro Vancouver totalled 24,619 last year. That’s a drop of 31.6% from 2017 and 38.4% from 2016, and 25% below average of the last decade.
Continuing this evolution to a buyer’s market in 2019 will be influenced by the number of homes on the market, including a record building activity that has many projects due for completion. The REBGV expects this will provide “additional housing options for home buyers” later in the year for homes of all types. Homes listed for sale have been between 53,000 and 57,000 for the last three years.
The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is now $1,032,400, a 2.7% decrease from a year ago. For townhomes, the benchmark price has increased by 1.3% and by 0.6% for apartments in the last 12 months, while for detached homes, it has decreased by 7.8%.
Monthly comparisons for November and December 2018 are as follows:
Residential home sales (1,072 sold) decreased by 33.3%
Listings decreased by 16.5%
Detached home sales (348 sold) decreased by 1.4%, apartments (535 sold) by 0.6% and townhomes (189 sold) by 1.1%
The sales-to-active listings ratio for last month is 10.4%. By property type, the ratio is 7.1% for detached homes, 12% for townhomes, and 14.2% for apartments. Analysts generally say that downward pressure on home prices occurs when the ratio dips below the 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
1. Kitchen
Buyers often focus on the kitchen, especially first-time home owners. To modernize yours, you don’t have to rip it down to the studs; a smaller investment can have enormous impact. For perhaps $5,000, you could add new appliances (stainless steel always conveys “updated”), a new countertop and flooring, and give your kitchen a fresh, coordinated look. A fresh coat of paint and updating hardware adds a nice finishing touch.
2. Living space
Increasing living space boosts home value, especially an open floor plan.
Finishing the basement is the most common way to add usable square footage. Adding or creating flex rooms serve a variety of purposes, from a guest bedroom to a games room to an exercise room to a study room for kids. For sleepovers, they can still be perfect for family members, nannies or to provide rental income.
3. Energy conservation
Energy-efficient windows usually lower your home’s energy bills by 7-to-15%, a selling point with buyers. Replacing every window could cost from $8,000 to $24,000, so you may not recoup the entire investment if you sell quickly. Emphasizing your “green” credentials includes LED lighting.
4. Paint
Painting makes your home look fresh, while defending time-worn surfaces, but don’t break the bank repainting every square inch. Focus on high-traffic areas, including the kitchen and bathrooms. Neutral colours like off-whites, beiges and grays remain the interior colours that appeal to homebuyers.
5. Outdoors
Adding a deck or patio expands living space and a freestanding grill creates a defined space for outdoor living. But remember the rule of low upkeep: prior generations often had a pool, but younger purchasers recognize pool maintenance costs. Lush landscapes add to water costs, and replacing grass with native ground cover lowers costs. Trim overgrown shrubs and make minor repairs to the facade.
Continuing this evolution to a buyer’s market in 2019 will be influenced by the number of homes on the market, including a record building activity that has many projects due for completion. The REBGV expects this will provide “additional housing options for home buyers” later in the year for homes of all types. Homes listed for sale have been between 53,000 and 57,000 for the last three years.
The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is now $1,032,400, a 2.7% decrease from a year ago. For townhomes, the benchmark price has increased by 1.3% and by 0.6% for apartments in the last 12 months, while for detached homes, it has decreased by 7.8%.
Monthly comparisons for November and December 2018 are as follows:
Residential home sales (1,072 sold) decreased by 33.3%
Listings decreased by 16.5%
Detached home sales (348 sold) decreased by 1.4%, apartments (535 sold) by 0.6% and townhomes (189 sold) by 1.1%
The sales-to-active listings ratio for last month is 10.4%. By property type, the ratio is 7.1% for detached homes, 12% for townhomes, and 14.2% for apartments. Analysts generally say that downward pressure on home prices occurs when the ratio dips below the 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
Five tips that could help sell your house
Here are some projects that could make your home more saleable because they make a home appear well-cared-for, and potentially add to its value.1. Kitchen
Buyers often focus on the kitchen, especially first-time home owners. To modernize yours, you don’t have to rip it down to the studs; a smaller investment can have enormous impact. For perhaps $5,000, you could add new appliances (stainless steel always conveys “updated”), a new countertop and flooring, and give your kitchen a fresh, coordinated look. A fresh coat of paint and updating hardware adds a nice finishing touch.
2. Living space
Increasing living space boosts home value, especially an open floor plan.
Finishing the basement is the most common way to add usable square footage. Adding or creating flex rooms serve a variety of purposes, from a guest bedroom to a games room to an exercise room to a study room for kids. For sleepovers, they can still be perfect for family members, nannies or to provide rental income.
3. Energy conservation
Energy-efficient windows usually lower your home’s energy bills by 7-to-15%, a selling point with buyers. Replacing every window could cost from $8,000 to $24,000, so you may not recoup the entire investment if you sell quickly. Emphasizing your “green” credentials includes LED lighting.
4. Paint
Painting makes your home look fresh, while defending time-worn surfaces, but don’t break the bank repainting every square inch. Focus on high-traffic areas, including the kitchen and bathrooms. Neutral colours like off-whites, beiges and grays remain the interior colours that appeal to homebuyers.
5. Outdoors
Adding a deck or patio expands living space and a freestanding grill creates a defined space for outdoor living. But remember the rule of low upkeep: prior generations often had a pool, but younger purchasers recognize pool maintenance costs. Lush landscapes add to water costs, and replacing grass with native ground cover lowers costs. Trim overgrown shrubs and make minor repairs to the facade.
Stats are calculated comparing December 2018 to December 2017 (note: sales refers to number of sales, not to sale prices).
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