Each month, our newsletter is made available to everyone who is interested in what’s happening in our world of real estate. It’s timed to coincide with the release of the Real Estate Board of Greater Vancouver’s latest listings and sales statistics, the highlights of which are always reported here. But we also offer a look at other real estate-related items — from tips about buying and/or selling to which cruise ship you can see from properties that offer views of Vancouver’s waterways. If there’s something else you think might be of interest to newsletter readers, please let us know.
Happy clients offer a testimonial
Happy clients offer a testimonialLike most businesses, we often ask our customers if they would give us feedback on the work we did for them, and most times they’re happy to do so. Rarely do customers ask if we would like an endorsement! That’s what happened with Mike and Carolyn Weiler of Vancouver after they read other testimonials in the monthly Nexus newsletter.
Here is what the Weilers have to say:
“Jennifer and Dale were introduced to us in 2015 when we first began seriously thinking of selling our home on Vancouver’s West Side. They supported us with the highest quality information and advice from then until 2017, when we sold our home [at the top of the market] and bought our condominium, which is absolutely perfect. We were reluctant to buy the condo but Dale and Jenn helped us see what it could become by showing us things that we simply couldn’t see ourselves — and they were right. The condominium is a perfect home for us.
"Throughout this lengthy process, Dale and Jenn demonstrated great patience to go with their professionalism, integrity and honesty. That ensured success. Our stress level was minimal, because of our confidence in their work. We will be forever grateful for their help in making this transition.”
Here is what the Weilers have to say:
“Jennifer and Dale were introduced to us in 2015 when we first began seriously thinking of selling our home on Vancouver’s West Side. They supported us with the highest quality information and advice from then until 2017, when we sold our home [at the top of the market] and bought our condominium, which is absolutely perfect. We were reluctant to buy the condo but Dale and Jenn helped us see what it could become by showing us things that we simply couldn’t see ourselves — and they were right. The condominium is a perfect home for us.
"Throughout this lengthy process, Dale and Jenn demonstrated great patience to go with their professionalism, integrity and honesty. That ensured success. Our stress level was minimal, because of our confidence in their work. We will be forever grateful for their help in making this transition.”
Real estate board figures — optimism at last?
In this month’s REBGV release, for example, you can find a hint in what’s happened in the category known as “benchmark price." That’s the estimated sale price of a typical property in a market, so it’s an indicator. Nothing more, nothing less.
When the real estate market is dropping, the most difficult question to answer is: When has it hit bottom?
Nobody knows for certain, until everything starts to rise again. Until it becomes conclusive, all anybody can do is look for signs. Sometimes, that can be found in the monthly statistics from the Real Estate Board of Greater Vancouver.In this month’s REBGV release, for example, you can find a hint in what’s happened in the category known as “benchmark price." That’s the estimated sale price of a typical property in a market, so it’s an indicator. Nothing more, nothing less.
In April, the benchmark price for all of Metro Vancouver was $1,000,008, according to the REBGV. That’s down 8.5 per cent over the previous April, but virtually unchanged (0.3 per cent) from the previous month (March 2019).
In each of the three home categories — detached homes, attached homes, apartments — the story was the same. The benchmark price was down from April 2018, but the same when comparing March 2019 and April 2019. For detached homes, the benchmark price was down by 0.8 per cent. For attached homes and apartments, REBGV simply called March to April “unchanged.”
Does that mean prices are about to rise? Not necessarily, but it implies that the overall price of homes in Metro Vancouver may be plateauing, and that’s at least a reason to be cautiously optimistic, and optimism has been long overdue.
“There are more homes for sale in our market today than we’ve seen since October 2014,” the REBGV said in a news release. “This trend is more about reduced demand than increased supply. The number of new listings coming on the market each month is consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”
More listings and stable prices could be the recipe for recovery.
NEXUS NOTE: We've noticed that the bargain hunters are beginning to buy quality properties that are sensibly priced at the bottom of the market, because they don’t want to miss out on those properties. It has been our experience that this philosophy then starts to be applied to properties at higher prices, when they’re properly priced. This is also a reason for a little optimism, for sellers and anyone else looking for a better market.
In each of the three home categories — detached homes, attached homes, apartments — the story was the same. The benchmark price was down from April 2018, but the same when comparing March 2019 and April 2019. For detached homes, the benchmark price was down by 0.8 per cent. For attached homes and apartments, REBGV simply called March to April “unchanged.”
Does that mean prices are about to rise? Not necessarily, but it implies that the overall price of homes in Metro Vancouver may be plateauing, and that’s at least a reason to be cautiously optimistic, and optimism has been long overdue.
“There are more homes for sale in our market today than we’ve seen since October 2014,” the REBGV said in a news release. “This trend is more about reduced demand than increased supply. The number of new listings coming on the market each month is consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”
More listings and stable prices could be the recipe for recovery.
NEXUS NOTE: We've noticed that the bargain hunters are beginning to buy quality properties that are sensibly priced at the bottom of the market, because they don’t want to miss out on those properties. It has been our experience that this philosophy then starts to be applied to properties at higher prices, when they’re properly priced. This is also a reason for a little optimism, for sellers and anyone else looking for a better market.
Grading schools for families moving to new homes
School’s out next month, which means young families that plan to re-locate are now looking for their next home and for their kids’ next school.
Proximity is one important issue. Quality is another.
The Fraser Institute has a website designed to help.
It provides detailed performance reports, for both elementary or secondary schools. All you have to do is enter the name of the school in your about-to-be-new area or scan the list of almost 1,000 British Columbia schools.
Each one is rated academically, on a scale of 1 to 10. You can drill down and scroll through a school’s social media feed, which yields a wealth of great information, including photos and newsletters.
Proximity is one important issue. Quality is another.
The Fraser Institute has a website designed to help.
It provides detailed performance reports, for both elementary or secondary schools. All you have to do is enter the name of the school in your about-to-be-new area or scan the list of almost 1,000 British Columbia schools.
Each one is rated academically, on a scale of 1 to 10. You can drill down and scroll through a school’s social media feed, which yields a wealth of great information, including photos and newsletters.
The web page (and the link): compareSchoolRankings.org
This month’s complete list is on the Nexus Realty website, complete with arrival and departure times. And if your view of the water will come later from a property you’re buying (or visiting), make sure to check back because the list of ships is regularly updated.
Busy time in Burrard Inlet for viewing cruise ships
To say the cruise season starts in earnest this month is an understatement. If you’re looking down on Burrard Inlet from an ocean-view property, you’ll have a chance to choose from — and identify — 49 cruise ships that will be sailing in or out of Vancouver’s harbour.
In fact, there are only five days in May when there won’t be a cruise ship arriving or leaving.This month’s complete list is on the Nexus Realty website, complete with arrival and departure times. And if your view of the water will come later from a property you’re buying (or visiting), make sure to check back because the list of ships is regularly updated.
And don’t forget to click on the cruise ship you’re watching to find out more about it.
“All Canadian home buyers when applying for a mortgage must qualify at either the Bank of Canada’s five-year benchmark or the rate on their contract plus 200 basis points. This applies even when making a down payment of 20 per cent or more.”
Many Canadians expect the government to continue modifying that policy before the federal election in October, given the widespread criticism that goes beyond the real estate industry.
For example:
• CIBC is joining realtors and home-builder groups in urging the government to revisit its B-20 rules, which a top CIBC economist says are too rigid. Benjamin Tal says the federal government’s First-Time Home Buyer Incentive (announced last month) isn’t enough because it will only affect 3 per cent of borrowers. He believes the stress test accounted for at least half of the $25 billion decline in new mortgages in 2018.
• The British Columbia Real Estate Association says the erosion of affordability caused by the stress test “has created near recession-level housing demand despite the province boasting the lowest unemployment rates in a decade.” Listings throughout increased 36.2 per cent to 34,295 units from a year earlier and the ratio of sales to active residential listings declined from 29.4 per cent to 16.6 per cent, according to BCREA.
• RBC Economics sees a continuation of the weakened demand resulting from a cocktail of negatives for home buyers including the mortgage stress test, interest rates, economic uncertainty and affordability.
This is clearly a real estate story that won’t go away until there’s a change…in the market, or in the federal government policy.
Pressure continues on federal government stress test
More respected organizations and individuals are offering opinions about the Federal Government’s implementation of a “stress test” for would-be home buyers.
To refresh your memory, here’s a quick definition of the stress test (B-20) implemented 16 months ago:“All Canadian home buyers when applying for a mortgage must qualify at either the Bank of Canada’s five-year benchmark or the rate on their contract plus 200 basis points. This applies even when making a down payment of 20 per cent or more.”
Many Canadians expect the government to continue modifying that policy before the federal election in October, given the widespread criticism that goes beyond the real estate industry.
For example:
• CIBC is joining realtors and home-builder groups in urging the government to revisit its B-20 rules, which a top CIBC economist says are too rigid. Benjamin Tal says the federal government’s First-Time Home Buyer Incentive (announced last month) isn’t enough because it will only affect 3 per cent of borrowers. He believes the stress test accounted for at least half of the $25 billion decline in new mortgages in 2018.
• The British Columbia Real Estate Association says the erosion of affordability caused by the stress test “has created near recession-level housing demand despite the province boasting the lowest unemployment rates in a decade.” Listings throughout increased 36.2 per cent to 34,295 units from a year earlier and the ratio of sales to active residential listings declined from 29.4 per cent to 16.6 per cent, according to BCREA.
• RBC Economics sees a continuation of the weakened demand resulting from a cocktail of negatives for home buyers including the mortgage stress test, interest rates, economic uncertainty and affordability.
This is clearly a real estate story that won’t go away until there’s a change…in the market, or in the federal government policy.
Real Estate Monthly Statistics
The following statistics for West Vancouver, North Vancouver, Vancouver West and Vancouver East
compare April 2019 to April 2018 (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.
