IN THIS ISSUE:
• Home prices going up more than expected...so far
• The last six years: facts about sales and pricing
• Sound through flooring — and the impact of glue
• Decor: Dealing with ‘unusual’ shape of room
• Vancouver’s cruise-ship season now in full swing
April exceeds REBGV's January forecast
"What we’re seeing unfold so far this year is consistent with our prediction that near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”
That’s the ongoing monthly message from the Real Estate Board of Greater Vancouver. It has been like that since the REBGV’s January prediction that housing prices would appreciate in 2023, and the statistics for April exceed those predictions.
The accompanying message is that buyers are back with more confidence than anticipated.
According to the MLS Home Price Index, prices in Metro Vancouver rose by five per cent in the first four months of 2023. The REBGV forecast was an increase of one to two per cent by the end of the year.
“The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024,” the REBGV cautioned in its monthly release.
Both listings and sales are running behind historical figures.
Listings
Total number of homes listed for sale (MLS) is 8,790. That’s 4.2 per cent fewer than there were in April 2022 and 10.9 per cent below the 10-year seasonal average. New listings (4,307) represent a 29.7 per cent decrease from the same month last year and 22 per cent below the 10-year average.
Sales
Total sales in April 2022 were 3,222. Last month, they totalled 2,707, a decrease of 15.9 per cent. However, compared to March 2023, sales increased 7.7 per cent, which indicates a more positive trend. Detached home sales decreased by 16.3 per cent compared to April 2022; attached homes by 13.5 per cent and apartments by 3.1 per cent.
Also…
The sales-to-active-listings ratio — typically a dependable analytical tool for assessing current market conditions — was 32.7 per cent in April for the three property types combined. That’s significantly higher than the 20 per cent benchmark which, over a sustained period, usually leads to an increase in home prices. If the ratio drops below 12 per cent, history indicates home prices will decrease.
It’s always interesting to examine the sales-to-active-listings ratio by house category, too. April’s statistics showed the ratio to be:
• 24.4 per cent for detached homes
• 40.1 per cent for attached homes (townhomes)
• 37.4 per cent for apartments
If that trend continues, it’s another indicator that prices are likely to be on the rise.
Statistics for the markets of West Vancouver, North Vancouver, Vancouver West and Vancouver East are graphically displayed below, as always.
Six-year snapshot of home prices, homes sold
On a regular basis, you may hear that the real estate market’s good or the market’s bad, that sales are up or sales are down, that home prices are up or home prices are down. It is, at least, sometimes confusing because it’s usually a variety of sources that makes the headlines…and sometimes the observer is left wondering what to believe.
So, in this story what you’ll find are the facts about sales and home prices, in a historical snapshot that looks back at the last six years, for all of Metro Vancouver. The facts are all from the month of March only, given that March is traditionally the beginning of the most active time of the year — spring. The facts are for all three housing categories — detached homes, attached homes and apartments.
It’s a given that the real estate industry, just like the rest of life, changed dramatically because of the pandemic, both in buyer behaviour and expectations. When COVID-19 arrived, it was just before the spring market of 2020, so its impact was minimal initially. What followed was totally unpredictable.
Few people were interested in listing their properties amid such uncertainty. The number of listings dropped dramatically everywhere, and that shortage created competition that drove home prices up, and the number of sales down. That situation has continued to affect the market, for a variety of reasons — such as buyers waiting to list their homes until they believe there is more stability.
People started to work from home rather than risk being in crowded offices, and for some that meant needing more space, among other things. Also impacting buying and selling were eight consecutive increases in interest rates from the Bank of Canada, in the hope of curbing inflation. The Bank of Canada increases ceased just three months ago.
To say real estate has endured tumultuous times over the past three years is, in hindsight, an understatement. The pandemic impact is still being felt in many ways.
What do the figures show it has done to home prices and the number of homes sold?
In scanning the accompanying charts from 2018 to this year for detached homes,
attached homes and apartments, March prices were highest in 2022, and lowest in 2019, the year before COVID-19. In addition, the number of sales in all three housing categories were highest in March 2021 and lowest in March 2019. These two charts will help you decide what you think this means, despite what you may be hearing or reading in the media.
This is a six-year snapshot, the facts are from the Real Estate Board of Greater Vancouver, and they are here for your interpretation.
Sound proofing floors: the importance of the glue
Who knew about the glue? Who knew that there was a standard for sound in different kinds of glue? Who knew that glue is one of the ways in which sound-proofing can be improved in a new building?
Dylon Nofziger knew, in part thanks to the expertise of his man Omar Khaliq, seen applying glue to flooring in the six-home community Nofziger Construction has been building. Now nearing completion, this unique complex is at the corner of Ross and East 53rd in Vancouver. It has the “best of the best” sound-proof glue between its floors and sub-floors in all six homes…even in places where it wasn’t needed, like under the flooring resting on the concrete foundation.
Glue has an STC rating — that’s Sound Transmission Class. It can be defined as “a score given to a building’s surface (wall, floor, ceiling, window, etc.) based on its ability to reduce 
sound coming through it.”
sound coming through it.”
The higher the rating, the better the sound proofing.
This is an example of the kind of quality that exists with the six homes built on one large rectangular lot that borders on both 53rd Avenue and Ross Street. The finishing touches are being applied now and six units that are as different as you might imagine will be on the market…soon.
Glue is just one component in reducing any noise in the homes that are two storeys. The floors alone have an inch and a half of concrete, a sub-floor, three layers of sound-reducing insulation and a “resilient channel” — space between the upper and lower storeys.
There are more details to come about this unique and exciting project. Watch for them on the Nexus website and in the next issue of News From Nexus.
A building to buy
— and no strata
When buildings are connected, often that means the properties are part of a strata — be they industrial or residential. That means, of course, changes to your property have to go through a process to be approved by the strata council.
There are exceptions. One of them is a light industrial building on 3rd Street West in North Vancouver. Currently for sale, it’s a stand-alone building that isn’t connected to its neighbours, which makes it rare for a buyer who prefers the independence of not being “stratified.”
It also has a great location.
In the heart of the Pemberton-Norgate light industrial area (Pemberton Heights), this property is south of Marine Drive and east of Pemberton Ave., and close to both. The building is suitable for a multitude of purposes, from warehousing to conducting dance classes, which is its current use.
In the rear, the building with its vehicle door is accessible from the lane, and the backyard of the 6,136-square-foot lot is fenced for security.
How rare an opportunity is it? This non-strata building is available for the first time in 26 years!
“There was nothing complicated — my son lives in Victoria — because Dale and Jennifer included him on everything. As soon as they spoke to me, they spoke to Mark. They were very good about following up with Mark. I wasn’t surprised at how helpful they were, but I really enjoyed that they were, with every detail, right to the end!”
— Joan Gouws, West Vancouver
Cruise ships in Vancouver's harbour — from now until October
According to the Port of Vancouver, there will be 340 cruise ships visit the Burrard Inlet terminals this year and this is the first month that the armada is in full swing. Between now and the third week of October, you'll be able to watch the ships come and go from both sides of Burrard Inlet as they enter and leave under the Lions Gate Bridge.
Views like this is part of what makes living on the North Shore and parts of Vancouver so attractive, because there are so many properties overlooking Burrard Inlet. Seeing a massive cruise ship is always eye-catching whether you live in such a home or you're just a visitor on the shoreline.
The identities of all 340 ships, and a link to the details of each, is always at nexusrealtycorp.com, and every issue of News From Nexus from now until October will get you started on what ships are coming in the month ahead.
Here is a preview for May:
1. Identify your largest wall and start by putting your largest piece of furniture there. It’s easier to place smaller pieces around a larger item (generally a couch) than the reverse.
