Soaring sales of Canadian luxury homes in first quarter of 2010

The RE/MAX Upper End 2010 report notes a serious upswing in sales of luxury homes in Canada. The report highlights sales and trends in 13 major Canadian centres and 5 sub-markets. It ascribes the double and triple digit - depending on area - 12 month increase in sales to improved economic performance, increased personal wealth, immigration and foreign investment and forecasts a continuation of this trend.
High end homes start at $2 mil in Greater Vancouver, at $1.5 mil in Greater Toronto and Montreal Island and at lower prices in other areas down to $400K in St. John's.

Vancouver prices and number of sales keep increasing

The Real Estate Board of Greater Vancouver reports that in March 10 compared to March 09
- the benchmark price of a residential properties is 20.3% higher and 2.8% above the previous high point of May 2008.
- the number of listings is 7.6% lower but 19% higher than in February 2010 (my comment: this was very much influenced by the Olympics)
- the number of sales was 38.5% higher but only 4.7% higher than in March 08 and 12.4% lower than in March 07.

HST and new homes

HST is set to be implemented on 1 July 2010 and would increase the price of new homes by 7% minus a maximum of $26,250. It would also increase the tax on many other items by the same percentage: second hand cars, all services, restaurant meals, hairdressers, gym memberships, etc. This evening the anti HST campaign of Bill vander Zalm was officially launched in Kitsilano, the riding of Premier Gordon Campbell who introduced the HST.

The market for some entry level houses is hot

The market for entry level Eastside houses is hot. Listing Realtors will often advertise a one hour opportunity to view the house shortly after listing and frequently prospective Buyers and their Realtors will line up before the advertised time followed by a mass walk through. Houses in the $550K to $700K price range - if realistically priced - will often sell within a few days around asking price.
Two issues to investigate before lining up: height of ceiling in lower level and size of usable lot (lot minus right of way, covenant or other restriction).

Increased interest rates for fixed rate mortgages

TD, RBC and Laurentian bank have increased their rates for fixed rate mortgages by up to .8% and the other financial institutions will without a doubt follow. The increase of the bond yield is quoted as justification. The entry level market will be effected by this increase, higher priced homes will most likely continue to sell without change.
Variable rate mortgage rates are unchanged.

Stunning brand-new view home in West Vancouver

Just sold the most wonderful home in Chippendale Road, West Vancouver to the most wonderful Buyers. The view is unbelievable, the floor plan fantastic and the finishes and workmanship exceptional. The Seller and builder did an outstanding job and were a pleasure to work with. Compliments to all involved.
The recovery has definitely reached the higher price ranges - properties in all price ranges are selling well. If you are looking to buy a brand-new home, now is the time before the introduction of the new tax HST on 1 July 2010. The Seller of the beautiful home in Chippendale Road has another brand-new home for sale and I know of several other great homes in the area that are not listed on MLS. Contact me if you like further information - tel 604 926 3936 or christinelouw@shaw.ca, http://www.christinelouw.com/

Strong sales during and after Olympics

During the Olympics the CAD 22.3 mil penthouse of Three Harbour Green in Coal Harbour sold and so did many other properties. The Vancouver real Estate Board reports that in February '10 compared to February '09
- the number of sales increased by 67.1%
- new listings increased by 17.6%
- total listings declined by 21%
- the benchmark price for all residential properties in the Greater Vancouver area increased 19.7%

Vancouver's fabulous big party - the Olympics - ended with a bang.

******************************************************************Congratulations to John Furlong, other members of VANOC, volunteers and all who organized this wonderful event. It was so fantastic, so much fun for all! The organization it took to stage the Olympics was huge and must sometimes have been daunting but you did it and you did it so well. No doubt the Paralympics will be equilly well organized.

The Olympics created a positive happy atmosphere in Vancouver and made people so much more friendly, co-operative and tolerant. And the last day with Canada's hockey gold medal, a stunning closing ceremony and fireworks made a great end.

Time will tell how many of our Olympic visitors came to like Vancouver so much that they want to return and buy a home.

West Vancouver "user fee" (read: tax) on home fire alarm systems

In 2009 West Vancouver introduced a new tax levied on monitored home fire alarm systems.

Instead of the municipality rewarding home owners for paying an alarm company in an effort to prevent or reduce fire damage and as a result the use of services of the fire department - as insurance companies do - the West Vancouver municipality sees alarm systems as an opportunity to get more money out of the residents. The municipality calls this tax a "user fee" - the only problem is that the "user" does not use anything.
Homeowners also get fined for false alarms. Even if one agrees that this tax is a user fee, how can there be a user fee and a fine for the same service?

If the fire department has to attend to a fire in a home without a fire alarm system, the homeowner does not get charged a user fee even if the fire could have been wholly or partly prevented with an alarm system. So there is no tax/user fee for preventable use of the fire department but there is a tax/user fee for trying to prevent or minimize their use.

What is next? A tax on hardwood floors, showers? Kitchens would be a good source of revenue because every home is sure to have one. Let's think how that can be interpreted as a user fee.

Stunning well priced condo in Two Harbour Green, recent sold condo in Fairmont Pacific Rim

SOLD

2509-1011 W Cordova, Coal Harbour (Fairmont Pacific Rim Estates) sold on 14 Febr 2010 not far below the asking price of CAD 5,488,000. This condo faces North West, is 2,669 sq ft with 2 bedrooms, 3 bathrooms, a den and 2 parking.

ACTIVE listing
I have a great listing at 1139 W Cordova, Coal Harbour (Two Harbour Green): NW facing as well, slightly higher floor, 3,363 sq ft with 3 bedrooms, 4 bathrooms, 3 parking and CAD 400,000 spent on upgrades. Asking price of this impressive condo is CAD 6.6mil. See the listing details of the condo at 1139 W Cordova.
Other condos for sale at the Fairmont Pacific Rim Estates
Please contact me at 604 926 3936 or at christinelouw@shaw.ca for further information or to make an appointment to view these or any other condos.

The unpredictability of the real estate market

Many Vancouver Realtors are on holiday in the expectation that sales will be slow during the Olympics. Others stayed in the hope that Olympic visitors will on the spur of the moment decide to buy a holiday home in the beautiful place they just got to know. Both expectations turned out to be incorrect.
Sales are fast and it is very easy to show properties in the downtown core as long as you do not get too close to BC Place. Translink has calculated that there is 30% less traffic on the city roads but it feels like more - driving is such a pleasure now.
So far I have not heard of any impulsive real estate purchase by an Olympic visitor but maybe that is still to come. Or maybe this will only happen in the months to come.
This is such a wonderful time: happy people everywhere, an excited holiday atmosphere with lots of free entertainment and galloping sales.

The Erickson in False Creek North, Vancouver

False Creek North's star building "The Ericksen" has finally completed on the last waterfront site in the area and the first owners are moving in. When designing this building Arthur Erickson was in the phase when he designed "twisting" buildings - like the Ritz Carlton on W Georgia and the buidlings he designed for the Olympic Village. This makes "The Erickson" very attractive looking and a welcome variation from the surrounding straight up and down steel and glass towers.
The lobby is luxurious and welcoming and the reception staff is excellent.
Some properties at "The Erickson" are for sale. Contact me for information or to arrange a showing.

The Olympic cauldron next to the Three Harbour Green site in Coal Harbour

The Olympic cauldron at the Convention Centre in Coal Harbour is huge and impressive. See how small the people below the cauldron are!

The cauldron is a gathering place for happy people enjoying the atmosphere of the Olympics. When reflecting on what is involved in the organization one can only admire what has been accomplished by VANOC and all others involved. Congratulations on a job so well done!

The construction workers at the Three Harbour Green site next door to the cauldron continue to work seemingly oblivious of the crowds passing by. Three Harbour Green will be re-launched on Thursday 18 February. Prices start at CAD 1.98 mil while the price of the 8,010 sq ft penthouse is "somewhat more". Great floor plans and finishes. This is the last Coal Harbour water front site!

New price - great condo in The Ritz *********** 1211 Melville Street, Coal Harbour Vancouver. Now only CAD 489,000

NOW SOLD - 20 Febr 10

602-1211 Melville Street, Coal Harbour - large 680 sq ft condo with 1 bedroom, 1 bathroom and den. 9 ft ceilings, air conditioning, open balcony, parking, large storage. Only lived in for 6 months, completed 2008.
This is a fantastic condo and has several features that are unusual for a one bedroom plus den condo in this price range: high 9 ft ceilings, air conditioning and located on the SE corner of the building (corner positions are usually reserved for 2 and 3 bedroom condos). The condo has quality finishes and comes with parking and a huge storage locker. Add to this the great amenities in the building - concierge, gym, pool, sauna, steam room, social room, pool table room and large outside area - and the fantastic location in prestigious Coal Harbour - close to Robson Street, seawall, Urban Fare, other shops and restaurants - and you have a winning combination. Contact Christine Louw at 604 926 3936 to make an appointment to view this wonderful condo.

Assessment of lot value by BC Assessment Authority and appeals

Attended a session of the Appeal Board against property assessments by the BC Assessment Authority.

Was surprised to note that when assessing the value of a lot the determining factor for the BC Assessment Authority is the maximum square footage of the improvements that can be built on the lot whereas very little value is ascribed to the size of the usable part of the lot. This distinction is important in case of lots on steep hills or with a creek running through the lot where the larger lot size allows for a larger home but with little usable yard. How can the BC Assessment Authority deny that the market value of a lot is affected when the majority of the lot is not usable because mountaineering equipment is required to reach the other side of the lot?

Another surprise is that the Appeal Board is not authorized to compare past assessments to the latest assessment - so if the assessment of many of the neighbours' lots went down by $200K compared to the previous assessment and the assessment of the subject lot did not,this is not a reason for adjusting the subject lot's assessment. Expect a follow-up in April/May.

The taxes you pay when buying a new home in Vancouver

A few days ago Harvey Enchin analyzed in an article in the Vancouver Sun the taxes paid by a Vancouver new home Buyer. He concluded that when buying a new detached home for $564,933 the total amount of taxes paid for the house from the purchase of the lot to and including completion by the Buyer is $76,724 - this includes property transfer tax and HST and the rebate of $26,250 for the Buyer of a primary residence.

13.58% of the amount the new home Buyer pays for his/her home is tax! Since the maximum HST rebate is $26,250 the tax percentage increases as the purchase price of the house increases.

January 2010 - Huge increase in new housing starts

According to the CMHC (Canada Mortgage and Housing Corporation) 917 new housing units broke ground in January 2010 in the Vancouver Census Metropolitan area which is 50% more than in January 2009. Surrey led with 295 new housing starts, followed by Vancouver with 234 starts. Of the 400 condos started in the Vancouver CMA, 85 are rental designated.

The CMHC spokesperson added that the strong new home construction in January 10 is a continuation of the trend in the latter part of 2009 and is expected to continue in the near future.

Coal Harbour condos, Vancouver condos

Are you visiting Vancouver for the Olympics and have you decided to join the many other international part-time residents who have a holiday home here already? Then consider the following great homes and phone (604 926 3936) or email (christinelouw@shaw.ca) me for a showing.
*** in Coal Harbour:
- The Ritz; 602-1211 Melville Street - 1 bedroom plus den, 680 sq ft. High ceilings, air conditioning, corner unit. CAD 495,000.
- Orca Place; 2605-1166 Melville Street - 1,014 sq ft 2 bed, 2 bath condo with high ceilings and air conditioning. CAD 639,000
- West Pender Place; 405-1477 W Pender Street - assignment, completion early 2011. 816 sq ft One bedroom and den with high ceilings and airconditioning. Live/work zoning, luxurious finishes. CAD 645,000.
- Two Harbour Green; 1139 W Cordova - 3,600sq ft high floor condo with 3 bedrooms, 4 bathrooms and the most fantastic NW view. The ultimate in luxury. CAD 6.6 mil.
*** and in Downtown Vancouver
- The Hudson; 626-610 Granville Street - 962 sq ft loft near Pacific Centre Shopping Mall and skytrain. So conveniently located! CAD 499,000.

Enjoy your stay in Vancouver and thank you for visiting us!

Vancouver real estate values have recovered!

Time flies. The Olympics are about to start and our real estate market is likely to benefit from this huge exposure of Vancouver to the world.

In the last twelve months the benchmark price of residential properties in Greater Vancouver has increased by 17.2% to a level 0.8% higher than the previous high point of May 2008. Who would have expected this quick recovery one year ago!

"The Mark" was launched in Yaletown and so was "Pacific Spirit" at UBC and sales were fast.

Impressive "Fairmont Pacific Rim Estates" at 1011 W Cordova in Coal Harbour will complete soon - some of the luxurious condos are still available.