BCREA - economic update. Predicts 2.1% growth of Canadian economy in 2012.

The BCREA statitistics show that the economy expanded in April and May 2012 albeit modestly while the sales numbers of Vancouver condos and Vancouver houses dropped sharply in May. The statistics for July will be an indication/confirmation of the effect of media reports of economic problems in other parts of the world on buyer confidence in real estate.
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BCREA ECONOMICS NOW

Canadian Monthly GDP - July 31, 2012

The Canadian economy expanded 0.1 per cent in May, after increasing 0.3 per cent in April. At the industry level, economic growth was driven by a 0.7 per cent increase in retail trade and a 0.5 per cent bounce in finance and insurance output. Real GDP growth was also given a boost by increased mining and oil and gas extraction. Lagging industries included manufacturing (down 0.5 per cent) and construction (down 0.2 per cent). The output of real estate agents and brokers fell 4.8 per cent at the national level following three consecutive months of increasing activity.

Canadian real GDP is on track to grow 1.5 to 2.0 per cent in the second quarter of the year, close to the 1.8 per cent forecast by the Bank of Canada and in line with BCREA's own forecast. The second half of the year holds a number of risks for the Canadian economy, including further Euro uncertainty and a slowdown in the US economy. We forecast that the Canadian economy will generate modest growth in 2012 of around 2.1 per cent.


For more information, please contact:

Cameron Muir                             Brendon Ogmundson
Chief Economist                          Economist
Direct: 604.742.2780                   Direct: 604.742.2796
Mobile: 778.229.1884                 Mobile: 604.505.6793
cmuir@bcrea.bc.ca                      bogmundson@bcrea.bc.ca

BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).

Copyright British Columbia Real Estate Association. Reprinted with permission.
BCREA makes no guarantees as to the accuracy or completeness of this information.

Have the slower months come to an end?

Buyers have returned! Serious buyers - both local and international - are phoning in and emailing at greater frequency than a few weeks ago. Is this the beginning of the end of the few slower months? Both Vancouver condos and houses have been affected and activity seems to be resuming from the lower price ranges upwards.

"The Ericksen" - Yaletown condos bordering False Creek

Coal Harbour condos bordering the marina at Burrard Inlet

Renewed buyer activity in May 2012

The month of May brought sunshine and buyers are more seriously resuming their search for a new home! Buyer activity has increased in the more affordable price ranges in particular.
The Real Estate Board of Greater Vancouver reports for April 2012 a lower number of sales and more listings than 12 months ago as well as a twelve month increase in the benchmark price of 3.7 per cent. Complete report of the REBGV

The house above is located in West Vancouver and will be listed for sale next week. This partial picture is a little peek a boo pre-view.

Vancouver real estate market statistics for February 2011

The Real Estate Board just released their most recent statistical information which shows that
- listings, sales and demand have increased in the first two months of 2011 and
- that some areas and categories of real estate (notably detached homes in Richmond and Vancouver Westside) have seen considerably more activity than others.

In February 2011

• the number of sales increased by 70.3% compared to January 2011 and by 25.5% compared to February 2010.
• new listings increased by 23.6% compared to February 2010 and the total number of listings increased by 5%
• the 12 month increase of the benchmark price of detached homes was 6%, of condos was 2.2% and of townhomes was 2.3%.

Statistics are not the same for all areas. Contact me if you like to know what properties sold in the last 60 days in your immediate area. Your property may be worth more than you think!

If you like to browse yourself to see current asking prices visit my websites
www.vancouver-condos.net
www.coalharbourcondos.info
www.falsecreeknorthcondos.com
www.christinelouw.com for homes

Bank of Canada held its overnight rate

This morning the Bank of Canada held the overnight (interest) rate at 1 percent. The overnight rate has a substantial influence on mortgage interest rates. The statement released with the decision noted the improved outlook for the Canadian economy but also the escalating geopolitical risk and the challenge to export by the rising Can dollar. The Vancouver market is increasingly active in all price ranges. On 18 March the maximum amortization period for high ratio mortgages (mortgage for more than 80 percent of the purchase price/appraised value) will be reduced from 35 to 30 years. Buyers who remove subjects before 18 March have access to the 35 year amortization period. This change will mainly affect purchases in the lower price ranges and likely not to a significant degree. At the moment this segment of the market is very active with quick sales and multiple offers; remains to be seen if this activity is in anticipation of the 18 March change or just part of the general increase of demand. For mortgage rate information see "Resources" at http://www.vancouver-condos.net and "Statistics" at http://www.coalharbourcondos.info

Vancouver real estate market statistics for January 2011

According to the Real Estate Board of Greater Vancouver in January 2011 compared to January 2010

• the number of sales decreased by 5.4%


• new listings decreased by 6.7%


• the total number of listings increased by 2.2%


• the benchmark price of condos increased by 1.4%, of detached homes by 2.7% and of townhomes by 2.6% However both Richmond and Vancouver West saw a strong seller's market - the price of detached homes in Richmond increased by 22.6% and in Vancouver West by 12.2%.

The stronger market in Richmond and Vancouver West must be due to the obvious increase of Asian buyers in Vancouver who predominantly prefer and buy detached homes in these two areas. For the full statistical report of the GVREB visit http://www.vancouver-condos.net and go to market trends.

Important mortgage rule changes

Finance minister Jim Flaherty has made changes to the rules governing mortgage financing which will be effective from 18 March 2011 onwards: - the maximum amortization period for high ratio mortgages (in excess of 80% of the property value) has been reduced from 35 to 30 years - maximum loan to value (LTV) of refinances has been reduced from 90 to 85% - maximum financing on HELOC (line of credit products) reduced to 80% LTV There is still some time to buy your new property and complete by 17 March to take advantage of the present mortgage rules. www.christinelouw.com

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.

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/

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.

Vancouver real estate prices/values

The Real estate Board of Greater Vancouver reported on 2 December in their monthly publication that the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver is now only 1.9 per cent lower than the most recent high point of May 2008.
And Sellers know it! It is harder to negotiate offers - Sellers are confident that prices will continue to increase and hold out for higher prices in negotiations or take their property off the market now with the intention of re-listing in the near future.
The downturn will cost property owners likely a little more than 1 1/2 years of value growth and has given others the opportunity to buy the real estate they could not afford before May 08.

30 March 09 - Increasing demand

In mid March 66 pre-construction condos were for sale in "The Beasley" at the corner of Smithe and Homer, completion 2012. Today one 1bed condo is available for sale - specific other condos have been advertized as for sale on 31 March so can only be bought tomorrow but Buyers are already lining up now!

Investors are looking to buy again and in general there is increasing Buyer demand. I just sold a lovely view condo at 2104-1500 Howe in False Creek North, asking price $748,000 and this last week negotiated several offers in West Vancouver and Downtown. To see listings of other condos in False Creek North click on http://www.falsecreeknorthcondos.com/

I hope the word also spreads to people outside Vancouver that our real estate market is improving. This is a good time to buy but some out of area Buyers expect unrealistic discounts which results in showings and negotiations that do not have any chance of leading to a sale.

Friday 20 March 09 - Lots of action this week

- Many showings, several offers and several accepted offers. I was in the third multiple offer situation in the last month.

- Investors are looking to buy again indicating a return of confidence in real estate as a good investment. My personal experience with condos in the $1,300/1,400 per month bracket is that rental demand is good.

- Booking showings for this weekend and about 35% of properties were reported to have an accepted offer. This applies to the more affordable price ranges; showings of high end properties are always easier to book.

- Still a lot of negative talk about the real estate market from Buyers. Trying to keep prices down?

-The stock market has been going up the last few days. Real estate demand has increased the last few weeks. Is this the start of a trend?

Have a great weekend! To search MLS for real estate listings go to http://www.christinelouw.com/