Over the last couple of years many of my clients that are having children and starting a family have been leaving the city of Vancouver and moving to other parts of the lower mainland. The reason for this is because Vancouver has a serious housing supply issue in general, but more specifically a problem with what I referred to as ground oriented housing. What is ground oriented housing? It is exactly what the name implies. It is a home with it’s main entrance located at grade or a few steps away from from grade. An example of this type of housing would be row townhomes similar to those found in Europe.
I believe that, now more than ever, there is a need for this style of housing. Our single family neighbourhoods have become very expensive and they are simply out of reach of many working families. This form of housing can be made more affordable through densification and by making the homes ultra efficient.
The next question is where do we build this style of housing? I have identified a few locations in the city. The official community plan or OCP for this street calls for row townhomes in many areas. I have a floor plan for a 1,300 square foot 3 bedroom townhome that could be built up and down these areas. This would keep the housing more affordable and allow more people to enjoy this very desirable neighborhood.
If you live on an arterial road and like the idea of building housing within the reach of working families, please feel free to give me a call. I would be happy to walk you through the floor plans and discuss what you could sell your property for.
You can contact me anytime at 604-808-9796 and as always thank you so much for listening today.
What’s hot in the Kitsilano Single Family for May 2017 - The Van Westside Single Family market has transitioning from buyers to balanced. market. - Kitsilano has been doing exceptionally well and is now favouring sellers. - 12 Homes sold in Kits last mo. - least expensive home sold for $1.89M. which would have bought a 107 yr old home on Cypress & 5th Ave - most expensive sold for $3.6M for another 100 yr old home on 1st Ave & Dunbar. - only 44 homes were available and on the market in Kits in Feb so to have 12 sales puts us in a seller’s market at a 27% sr - Sold values in Kits are at $2.9M lower than the median price for a home in the Westside - now at $3.2M. If you like to take a look at these sales, I have a new package you can download at the link below map locating them and photos and details for each property. specialize
Download your own Stats Package Here: http://davidsetton.com/snapstats.html
What’s hot What’s Not – Vancouver Westside – Single Family for May 2017 - Westside single fam market remains in a balanced market. Right where it should be. - Median Prices came down 5% in April to $3.2M - 111 homes sold in April - Inventory still low only 561 single family homes available
What’s Hot (21% or more for a SR) - which areas are strongest - Quilchena and Dunbar - Dunbar 18 / 68 sold 26% sales Ratio 21% or more - Quilchena 7 / 23 sold 30% sales ratio - price point strongest & fav sellers - $2.25M - 2.5M 12 / 12 100% sr - $3M - $3.5M 20 / 57 35% sr
What’s not hot (14% or less for a SR) - Southlands 2 / 25 - 8% sr - Shaughnessy 2 / 62 sold - 3% sr - which price category - anything over $4.5M - buyers market - 210 homes priced over $5M - only 16 sold. 8% sr. anything under 14% is a buyers market
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Housing affordability is a hot topic in Vancouver and I wanted to take a few minutes to talk about it and throw out 3 ideas that could be implemented to solve this issue. I am a real estate agent in Vancouver and I know first hand how challenging it is becoming for families to live in this beautiful city. Let’s dive right into this. Here are the three steps that I would suggest:
1) Prefab housing. What is this this? Do you remember playing with erector sets when you were a kid? This method of building housing has been around for years and is being implemented in other parts of the world like Europe, China and Israel. It essentially allows construction to be fast, efficient and systematized by manufacturing construction components off-site and assembling those components using a crane and minimal labour. Steel frame and hollow core concrete slabs can cut the time and cost to build a building dramatically.
2) Fast track building permits. How long do you think it takes to gain approval for a highrise development in Vancouver? If a rezoning is part of the process, which it usually is, it can take 6 or 7 years from the time a developer envisions a project to the time buyers actually take possession and move in. This entire process needs to be streamlined and the city has to cut the red tape and fast track the public consultation process.
3) Reducing the cost of building permits, development cost charges and community cost charges. Did you know that when a land assembly happens in Vancouver, the homeowners selling their homes at high values do not participate or give back to the community for the extra value the city has created through the rezoning? It is up to the developer to pay the higher land cost and pay the city the community cost charge. This cost is in turn passed on to the end user or purchaser of the condominiums that are ultimately built. If we want affordability, all of these charges need to be dramatically reduced.
As a final note, I wanted to mention the alternative to finding affordability is to find a way to generate more individual or family income. Average family incomes are $60k to $70k in Vancouver. Obviously, with the cost of housing where it is in Vancouver, average income families can no longer own a home. We have to look for additional means of income and understand how money works. If you want to see how financially literate you (take the quiz) are or if you are looking for a new carrier my wife, Alison, is growing a financial company that is looking for ethical, hardworking individuals and you can reach out to her through the link below this video.
download 9 home sales here: http://davidsetton.com/what-is-selling-in-kitsilano.html - The Van Westside Single Family market has transitioning from buyers to balanced market - Kitsilano has been doing exceptionally well and is now favouring sellers. - 9 Homes sold in Kits last mo. - least expensive home sold for $2.1M. which would have bought you a small, older home on 7th ave - most expensive sold for $4.3M for a 4,500sf beaut restored character home on 14th Ave. - only 40 homes were available and on the market in Kits in Feb so to have 9 sales puts us just into a seller’s market at a 23% sr - Sold values in Kits are higher at $2.9M lower than the median price for a home in the Westside - now at $3.5M. If you like to take a look at these sales, I have a new package you can download at the link below map locating them and photos and details for each property. specialize phone number 604-808-9796
Get your Statistics here: http://davidsetton.com/snapstats.html What’s hot What’s Not – Vancouver Westside – Single Family for April 2017 - Westside single family market has moved from a buyer’s market in January to a balanced in March - Median Prices jumped up 22% in 2 months to $3.5M - 95 homes sold in March - doesn't sound like a lot, but only 532 homes were available What’s Hot (21% or more for a Sales Ratio (SR)) - In Jan, not one neighbourhood was favouring sellers. In March, 9 neighbourhoods favouring sellers - which areas are strongest - Arbutus and Dunbar - Dunbar 23 / 62 sold 37% sales Ratio 21% or more - Arbutus 6 / 20 sold 30% sales ratio - price point strongest & favouring sellers - $2.00M - 2.25M 4 / 8 50% sr What’s not hot (14% or less for a SR) - South Granville 5 / 70 - 7% sr - Shaughnessy 3 / 61 sold - 5% sr - which price category - anything over $4M - buyers market - 202 homes priced over $5M - only 16 sold. 8% sr. anything under 14% is a buyers market
Get Statistics Specific to Your Neighbourhood: http://davidsetton.com/snapstats.html
The Vancouver Westside Single Family Market has changed. We have a 15% tax on foreign buyers. We have a vacancy tax to homes that are not occupied. We have very few sales and little inventory. We have high city assessed values because assessments were do in July last year and they are no longer relevant. This gives sellers high expectations on the price of their homes. We have changing rules around mortgages and lenders are stress testing mortgages by looking more closely at income. It is no longer enough to have a large down payment.
Sellers are holding on to a past construct where buyers will come no matter what they price their homes at. This has worked in the past because market values eventually caught up with the sellers prices. Some realtors are doing a poor job educating their clients on market values and think it is enough to just take a listing at any price and put up a sign on the property to sell a home.
Here is my take on how Sellers could deal with this changed market and the 3 things that I would suggest:
Now more than ever, it is important to price your home as accurately as possible right from the start. Remember, because market values is not longer rising, sellers should try to get under the market and price at or a little bit lower than the last comparable sale. If a seller wants to try a higher price, they should be willing to adjust price within 2 to 3 weeks of the listing hitting the market if an offer is not received.
Be willing to look at offers that are subject to the sale of another home. The Vancouver Westside Single Family Market has essentially stalled. Seller’s are hesitant to list their homes on the market, because they can’t find something suitable to buy due to the lack of inventory. Buyers are hesitant to buy because their is little choice and they don’t know where the values are because there are very few sales. A subject to sale offer solves these issues by giving a buyer certainty that they will have time to sell before buying. That being said before accepting a subject to sale offer, make sure that the buyer has their home priced accurately.
Take a deposit upfront. In the past when a subject offer is made the deposit would be due on subject removal. If a seller wants to know if a buyer is serious about buying their home, take $10,000 - $15,000 as a deposit as soon as the offer is accepted. Although this money would typically be refundable if subject conditions are not removed, it makes the buyer go through the process more seriously and as a seller you are much more likely to the subject conditions removed. If anything psychologically it makes the buyer more committed to moving forward with the purchase.
If you are interested in learning more about the Westside Single Family Market or other markets in Metro Vancouver, I have a great stats package for both condos and single family homes for all areas including Richmond, East Vancouver, North Vancouver, West Vancouver. You can download this package of information by clicking on the link in the description.
Download Special Information Update: http://davidsetton.com/15-foreign-tax.html Special Report - Vancouver Detached Single Family Homes Westside - Impact from Foreign 15% Tax - take a few minutes to how new 15% tax introduced Aug 2nd has impacted single family market in Vancouver Westside - look at 3 variables see how changed since tax introduced and since this time last year. 1) inventory, 2) # sales 3) Sale Price 1) Inventory: here is the challenge for buyers in the Westside - inventory hasn’t really changed since Aug or this time last year. +/- 1%. This is why we will see prices haven’t moved much. 2) # Sales: Sales are actually up since Aug when the tax was intro. by 24% but when you look at Oct 2015 comp to now sales are dn 52% 3) Sale Price: down 9% comp to Aug this year, but we are still up 10% compared to Oct 2015. Lots of stats! One last thing - strong seller’s market in Oct 2015 now market favouring buyers. Information package Westside, North Vancouver, Richmond, Burnaby, Surrey, Coquitlam
Get your information package here: http://davidsetton.com/snapstats.html
What’s hot What’s Not – Vancouver Westside – Single Family for Nov 2016 - The market in the Westside is favouring buyers - Prices actually went up in October from $2.99m in Sept to $3.2m in October. The number of homes sold is less than ½ of the solds compared to October - Only 78 homes sold last month. Down 66% from April (peak sales) of this year - tricky - supply is low at 570 homes on market. What’s Hot (21% or more for a SR) - Mackenzie Heights - 9 / 17 sold here - 53% sales ratio - University area also strong - 6/ 12 sold - 50% sales ratio - which price categories favouring sellers - $2.25M - $2.5M - 12 / 26 sold 46% sales ratio - $3m - $3.5M - 11 / 48 - 23% sales ratio What’s not hot (14% or less for a sales ratio) - South Granville 5 / 76 - 7% sales ratio - Shaughnessy 6 / 67 sold - 9% sales ratio - which price category
Download 10 Sales Here: http://davidsetton.com/what-is-selling-in-kitsilano.html What’s hot in the Kitsilano Single Family for November 2016 The Van Westside Single Family market is now favouring buyers but the Kitsilano market is balance. - 10 Homes sold in Kits for between $1.395M for a 1925 built home on a 42 x 54 lot up to $3.28M for a 2015 built home on a 33 x 122 lot on 16th Ave - 49 homes were available and on the market in Kitsilano in October so to have 10 sales puts us in a balanced market at a 20% SR (21% or more is a seller's market) - Sold values in Kitsilano are lower at $2.3M than the median price for a home in the Westside - now at a $3.2M If you like to take a look at these sales, I have a new package you can download at the link below map locating them and photos and details for each property.
Download your own stats package here: http://davidsetton.com/snapstats.html What’s hot What’s Not – Vancouver Westside – Single Family for Sept 2016 - The market in the Westside is now favouring buyers. - Although prices are steady at an all time high of $3.5m, the number of homes sold is way down. - Only 63 homes sold last month. Down 70% from April (peak sales) of this year - tricky is supply is low at 574 homes on market. - Stalemate now between buyers and sellers, What’s Hot (21% or more for a sales ratio or S.R.) - Point Grey most active - 7 / 37 sold here - 19% s.r. - which price categories favouring sellers - $2M - $2.25M - 5 / 15 sold 33% s.r. - $2.5m - $2.75M - 8 / 19 - 42% s.r. What’s not hot (14% or less for a SR) - Marpole 2 / 48 - 4% sr - Arbutus 2 / 28 sold - 7% sr - which price category - $4.5m plus price category 16 / 302 sold 5% sr
I’m sure that you have heard the news. The BC gov is now charging foreign buyers an additional 15% property Transfer tax.
How does this impact the Vancouver Market? Will we see prices fall as a result?
The answer to both of these questions is yes but it will take 3 to 5 months for it to play out. The first thing that will happen is prices fall. I believe we will see this happen in the high end market, mostly in the single family market in areas like West Vancouver, the Vancouver Westside and East Vancouver. This would have happened regardless of the 15% tax because demand was decreasing and supply was increasing in these markets before the tax was even introduced.
The East Vancouver Single Family market we have seen inventory (i.e. number of listed homes in a given month) increase every month for the last 6 months. In the Vancouver Westside single family market the number of homes sold in a given month is down 20% from 3 months ago. Both these scenarios will also put downward pressure on prices. The silver lining for individuals looking to sell a single family home in these neighbourhoods is that land cannot be created out of thin air and generally there is still an undersupply of housing in the single family market.
Bob Rennie related this 15% tax to when the GST was first introduced. It took 6 months for people to get used to paying GST and then it was accepted and the market returned. The same thing will happen with the new tax on foreign buyers. People will adapt and accept it.
We have all heard the saying that where there is uncertainty, there is opportunity. For you buyers out there, now is the time to get off of the fence. You will no longer be competing with other buyers and have more time to make a decision on your purchase. For you sellers it is time to sharpen your pencils and make sure that you are priced accurately, maybe consider pricing a little bit lower than the last sale to get under the market and catch it while it dips. Or if you don’t have to sell wait it out for a few months for things to settle down.
Download Statistics for Your Area: http://david-setton.myrealpagewebsite.com/_media/Documents/SnapStats/MVR%202016%20June.pdf
Download Statistics for Your Area: http://david-setton.myrealpagewebsite.com/_media/Documents/SnapStats/MVR%202016%20June.pdf What’s hot What’s Not – Vancouver Westside – Single Family for May 2016 - Continues to favour sellers. Median prices are at a record of almost $3.7m. - Supply still very low at 557 homes on market. - market is changing only 152 homes sold last month down 30% - eventually downward pressure on prices What’s Hot (21% or more for a SR) - Kerrisdale and MacKenzie Hights most active - 14 / 30 sold in Kerrisdale - 47% s.r. - MacKenzie Hights - 9 / 17 sold - 53% s.r. - which price categories favouring sellers - $2.5M - $2.75M - 12 / 15 sold 80% s.r. - $3m - $3.5M - 26 / 51 - 51% s.r. few months ago this price band much stronger at 80% s.r. What’s not hot (14% or less for a SR) - Quilchena, Mount Pleasant, Shaughness - balanced market in these areas. 14 - 16% s.r. - which price category - expensive homes price resistance - ex only 33 / 236 in the $5M+ cat
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