David Setton : Answers In Real Estate : Archived blog posts for : 2011

Typical Spring Market in Greater Vancouver

Posted on May 11, 2011 by David Setton

Posted in Vancouver real estate market update report

VANCOUVER, B.C. - May 3, 2011 - Greater Vancouver saw a typical, solid month of residential home sales on the Multiple Listing Service® (MLS®) in April, in contrast to the near record pace witnessed in the two preceding months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2% decrease compared to the 3,512 sales in April 2010 and a 21% decline compared to the 4,080 sales in March 2011.

Looking back further, last month's residential sales represent an 8.8% increase over the 2,963 residential sales in April 2009, relatively unchanged compared to April 2008, and a 4.8% decline compared to the 3,387 sales in April 2007.

"While it continues to be a seller's market in Greater Vancouver, last month's activity brought greater balance between supply and demand in the overall marketplace," Rosario Setticasi, REBGV president said. "The year-over-year decline in April sales can be attributed to a less active condominium market on our MLS®, as there were more detached and townhome sales this April compared to last year."

April Statistics

Posted on May 4, 2011 by David Setton

Posted in Board Statistics

Reprinted from REBGV:

VANCOUVER, B.C. – May 3, 2011 – Greater Vancouver saw a typical, solid month of residential home sales on the Multiple Listing Service® (MLS®) in April, in contrast to the near record pace witnessed in the two preceding months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2 per cent decrease compared to the 3,512 sales in April 2010 and a 21 per cent decline compared to the 4,080 sales in March 2011.

Looking back further, last month’s residential sales represent an 8.8 per cent increase over the 2,963 residential sales in April 2009, relatively unchanged compared to April 2008, and a 4.8 per cent decline compared to the 3,387 sales in April 2007.

“While it continues to be a seller’s market in Greater Vancouver, last month’s activity brought greater balance between supply and demand in the overall marketplace,” Rosario Setticasi, REBGV president said. “The year-over-year decline in April sales can be attributed to a less active condominium market on our MLS®, as there were more detached and townhome sales this April compared to last year.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,847 in April 2011. This represents a 23.5 per cent decline compared to April 2010 when 7,648 properties were listed for sale on the MLS®, which was an all-time record for April. Compared to March 2011, last month’s new listings total registered a 14 per cent decline.

At 14,187, the total number of residential property listings on the MLS® increased 8.2 per cent in April compared to last month and declined 10 per cent from this time last year.

“There’s considerable variation in activity within the communities in our region. This is causing home price trends to differ depending on the area,” Setticasi said. “Your local REALTOR® is a valuable resource for obtaining the most accurate, up-todate market evaluation.”

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5 per cent to $622,991 in April 2011 from $593,419 in April 2010.

Sales of detached properties on the MLS® in April 2011 reached 1,402, an increase of 2.3 per cent from the 1,370 detached sales recorded in April 2010, and a 17.8 per cent increase from the 1,190 units sold in April 2009. The benchmark price for detached properties increased 7.4 per cent from April 2010 to $879,039.

Sales of apartment properties reached 1,201 in April 2011, a 21.3 per cent decrease compared to the 1,526 sales in April 2010, and an increase of 1.9 per cent compared to the 1,179 sales in April 2009. The benchmark price of an apartment property increased 2.9 per cent from April 2010 to $409,242.

Attached property sales in April 2011 totalled 622, a 1 per cent increase compared to the 616 sales in April 2010, and a 4.7 per cent increase from the 594 attached properties sold in April 2009. The benchmark price of an attached unit increased 2.4 per cent between April 2010 and 2011 to $514,670.

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Community Spotlight

Posted on May 4, 2011 by David Setton

Posted in Charity Donation

Recently, the Parent Advisory Committee (PAC) at the Jewish Community Centre (JCC) was tasked with raising $350,000 for development of a naturalized playground to serve ten different daycare and school programs at the JCC. We volunteered our time and then made a strategic financial donation to hire a professional facilitator, Debrah Coll, who took the PAC's efforts to a new level. This turned out to be a turning point - and as a result, a private donor stepped forward to sponsor the entire naturalized play space! Congratulations to the JCC and its sponsor (yet to be announced).

Whether you give your time or your money, you are probably making more of a difference than you think.

Want $1,000 towards your favourite charitable cause? For anyone who buys or sells through me and mentions this, I will gladly donate $1,000 towards the cause of their choice.

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Is now a good time to buy a condo?

Posted on May 4, 2011 by David Setton

Posted in Condos, downtown, market trends

Now is a great time to look at investing in a condominium. While this is something you would expect a Realtor to say, allow me to explain why. Although the Vancouver single family market has boomed over the last year and half, the downtown condominium market has remained relatively stable (see graph below). I believe there is an opportunity here.

Mortgage lenders have tightened the reins, but with a 25% down payment, you can buy a property that will break even (and not trigger income taxes), or generate a small cash flow after paying property taxes, strata fees and monthly mortgage payments. An investment property is also a great tax write-off. Maintenance costs, including strata fees, and mortgage interest can be written off against your income.

Here are some tips for potential investors:

Look for units in buildings that have good curb appeal – it will be easier to rent out and you will have more tenants to select from.
Review rent expectations on Craigslist – this is where renters go, so go there first! It will give you an idea of how much you can rent out a unit for. Then, go in a little bit lower to attract more prospective tenants. The ability to select a good quality tenant is crucial to minimizing your turnover and repair costs.
What to pay for – when you purchase a condo, you pay on a square foot basis. However, when you rent it out, you can charge rent based on the number of bedrooms. For example, a 600 sq. ft one-bedroom condo will cost a lot more than a 500 sq. ft. one-bedroom, but they may rent for the same amount. However, keep in mind that views, amenities, a quiet location and well managed building are things that will retain a good tenant once they are there, so pay attention to these intangibles.

There are literally so many units to choose from that it is easy to get “analysis paralysis.” To avoid this, get your financing ready, establish your budget and work with an experienced Realtor. Then, take the leap. Otherwise, you may look back and realize that your biggest mistake was not doing anything at all.

Please give me a call if you would like more information on ‘the numbers’ or to view some potential investment properties.

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David's thoughts on anything real estate related

Typical Spring Market in Greater Vancouver

April Statistics

Community Spotlight

Is now a good time to buy a condo?