High sales levels spur rise in home values

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totaled 3,704 in October 2009, an increase of 4.1% from the 3,559 sales recorded in September 2009 and an increase of 171.6% compared to October 2008 when 1,364 sales were recorded. Looking back two years, last month's sales increased 22.3% compared to October 2007 when 3,028 sales were recorded.

Since October 2008, the MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 6.8%.

New MLS listings for residential properties decreased 13.4% from September 2009 but did increase 2.3% compared to October 2008. However, total active listings at 12,084 are down 37% compared to October 2008.

While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008," said Scott Russell, president of the Real Estate Board of Greater Vancouver (REBGV).

"We're coming off several months of unseasonably high sales levels, which has allowed for a gradual increase in home values this year. High confidence and low mortgage rates are continuing to drive the activity we're seeing in the housing market today."

Click on the graph to see it in full size

You can also download the whole October 2009 REBGV statistics.

Will a Tax Credit Extension Help the U.S. Market?

American Real Estate Market
by La Citta Vita

In the United States, the GDP recorded 3.5% growth in the third quarter – for the first time in a year. Similarly, the once-ailing housing market has shown big improvements since last winter. Is our southern neighbour really waking up?

Right now, the U.S. real estate market is working with 7.5 months’ supply of inventory. This sounds like quite a lot, but compared to January’s 12.4 months’ supply, it is a great improvement. Eyes of all real estate experts (but also potential buyers) are now on one thing – the first time home-buyers’ tax credit.

The opportunity to receive an $8,000 tax credit (or even cash back, if the recipient’s income tax doesn’t reach this level) has been a strong stimulant for the US real estate market. But as the expiry deadline for this special offer comes closer, market watchers are becoming nervous. What will happen once the tax credit is no longer available?

Renting out a Fully Furnished Property? It’s Not As Simple As It May Sound

photo by Cassandra Lavalle

Renting out a fully furnished property is a great idea, especially if you own a small apartment or condo. Due to the type of life styles of people who usually rent these types of properties, they usually look for homes ready to be occupied without having to buy anything. Nevertheless, before you will be able to enjoy the extra cash you make by renting a fully furnished property, there are plenty of decisions to be made and lots to think about.

How much will it cost you?

First of all you’ve got to determine how much you will have to pay up front to set it all up. Go through the listings of available fully furnished properties in your area. The properties should be as similar to yours as possible in size, location and furnishing. Once you have a pretty good idea of the rent that is usually charged for a fully furnished property such as yours, list everything that you would have to purchase in order to fall into the category of 'fully furnished'.

Buyer demand remains strong while home listings increase

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totaled 3,559 in September 2009, an increase of 3.4% from the 3,441 sales recorded in August 2009 and an increase of 124.5% compared to September 2008 when 1,585 sales were recorded.

Since the beginning of the year, the MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 13%. Home prices compared to September 2008 levels are up 1.6 per cent.

IMF Improves Canadian Forecast

Afer a 2.5% decline in the year 2009, the Canadian economy should grow by around 2.1% next year. It's another acknowledgment that recovery is on the up.

Bricks and Mortar: A Solid Investment

As an answer to the latest recession in the housing market in Canada, REMAX Canada published a report analyzing the local Canadian housing markets over the last 30 years. The conclusion of the report is simple - bricks and mortar have been one of the safest ways of investing in Canada over the past three decades.

Market momentum carries into August

The number of home sales in Greater Vancouver increased significantly last month compared to August 2008 and moved closer in line with the active summer months experienced between 2003 and 2007.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totaled 3,441 in August 2009 increasing 119.5% from August 2008 and 1.7% from August 2007. Since the beginning of the year, the MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 11.4%.

However, home prices compared to August 2008 levels are down 1.1 per cent. At the same time new MLS listings for residential properties increased 4.9% from August 2008. However, total active listings are down 33% compared to August 2008.

Moving guide #3 - Packing before Moving

Our moving by Justin Nash

Packing your belongings before moving out of your home is an activity which most people dread. To be successful with this operation, you will need plenty of time, boxes, various wrapping material and a system in place. Without a proper plan, the move is sure to become an even worse nightmare than it usually is.

More you can read in our Vancouver moving guide third article Packing before moving.

Generation X to replace baby boomers?

According to the RE/MAX report issued this summer, Generation X is taking over the recreational property markets in Canada this year, replacing the aging baby boomer generation as the main buying force.

What exactly is Generation X? Over the years, social scientists have developed the habit of giving fancy names to the generations of the 20th century. Dating of a particular generation depends on all the different political and cultural aspects of the period that influenced the upbringing of members of that generation. While baby boomers (those born in the period of mid 40’s late 50’s) were the most active buying force until just a few years ago, most of them have entered or are just about to enter retirement. At the same time, the children of baby boomers named as Generation X, now in their 30’s or 40’s, have finally got the financial ability to purchase recreational property at almost any price.

Moving guide #2 - Hidden Costs of Moving

finer move by 'seier+seier'

Moving houses is not an easy nor cheap task. Before anything else it is extremely important to come up with a budget. If you do it properly, it will most likely cost you a lot. If you don't do it properly, it will cost you even more in the end. Today's article will help you to get an idea of what to expect, both when moving on your own and when hiring a professional moving company.

You can read more in our Vancouver moving guide second article Hidden Costs of Moving.

Strong spring market carries into summer months

The Greater Vancouver housing market gained further momentum in July with record sales levels and a continued strengthening of home prices.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totaled 4,114 in July 2009, becoming the highest volume of sales ever recorded within the REBGV for that month, outpacing the 4,023 sales of July 2003, which is the only other year that July sales exceeded the 4000 mark.

Since the beginning of the year, the MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 9.2%. However, home prices compared to July 2008 levels are down 5 per cent.

At the same time new MLS listings for residential properties declined 5.8% from last month and 34% compared to July 2008.

Market conditions drive strong June housing sales

The combination of low interest rates and more affordable pricing helped propel Greater Vancouver home sale numbers to the second all-time highest total for the month of June.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential housing sales in Greater Vancouver increased 75.6% in June 2009 compared to June 2008. The total for June 2009 was 4,259 just short of the record-breaking 4,333 sales that occurred in June 2005.

However, residential benchmark home prices as calculated by the MLSLink Housing Price Index, declined 8.2% in June 2009 as compared to June 2008. At the same time new MLS listings for residential properties increased 13.5% from May to June of this year.

Moving guide #1 - Professionals or do-it yourself?

Picture by THOR

Moving your belongings from one place to another has never been easy. But as with everything, there are always some tips & tricks proven by years of practice that can help you to accomplish this difficult task successfully. So we have prepared a series of articles dealing with all the different aspects of moving, including the cost, the insurance, how to choose among the professionals and other issues.

More you can read in our Vancouver moving guide first article Professionals or Do-It-Yourself?

This part should you help to decide whether to move to a new house with the help of professionals or not.

BoC Interest rate now and then

Real estate market illustration
by woodley

Bank of Canada announced target for the overnight rate unchanged, reaching 0.25% on 21st July, as predicted. Since the interest rate is so important for real estate market, we should look closer at our situation. Every move of interest rate means huge monthly payment change for all actual (if you don’t have fixed rate) or potential borrowers. And since mortgage is the most common way of acquiring a real estate property, any rate changes have impact on the market mood.

Vancouver BC real estate market: 12 months summary

Vancouver BC real estate market grew for almost seven consequent years, one of the longest and fastest growths ever recorded in Canada. Average home prices between years 2001-2007 almost doubled, while inflation in mentioned period was less than 14%. Naturally, such development severely lowered affordability of housing in Vancouver, especially for first time buyers.

When the well-known problems began on the US real estate market, Vancouver real estate seemed immune and continued to grow till the beginning of 2008. However, in that time the pressure of affordability demand began to influence our market and Realtors noticed slowdown, which grew much stronger in next months. Average price first stabilized and later dropped. With the outbreak of global economic crisis in the autumn 2008, Vancouver real estate sales fell to record-low values in January and February 2009 igniting the fear of painful and long real estate crisis, the same one we witnessed in the USA.