Category Archives: BC

Lots of new condos coming

They aren’t making any more land, but they are making more condos.  Lots more condos.

Real estate market team MPC Intelligence started tracking new condo projects in Vancouver in 2005.

They just recorded the busiest six months on record for announced new concrete condo projects.

This despite a recent slow down in the presales market.

A new wave of projects is expected in the fall.

Hancock said the pace of pre-sales has slowed in the last two months, but he expects a “large wave” of new launches in the fall.

Hancock attributes the slowdown to developers postponing projects because of market conditions, and some projects being delayed in the approvals process.

He said projects priced right and in the right location — near rapid transit — are doing well, citing strong sales at the Solo District condo project in Burnaby that started pre-sales this past weekend.

Hancock noted that 55 per cent of the concrete condos introduced to the market this year have been sold, with most sales in the first quarter and “the second quarter showing slower uptake.”

He also said it’s “too early to tell” if the slowing resale market is a factor in developers delaying projects.

The presales market can’t be doing too bad when we have big projects like Marine Gateway selling out in 4 hours.  The odd thing is some people are reporting seeing bus ads for this development.

Why spend money advertising something that isn’t for sale anymore? Can anyone confirm these ads?

The good news is they have a plan to deal with the smell.

 

 

How the boom ends: whimper or bang?

So we’ve gotten to the point where it’s pretty unanimously agreed that real estate in Toronto and Vancouver is over-valued and due for a correction.

The question now is what sort of an end to this housing boom we will be looking at.

Will this be an explosive toppling of values, a market that runs head first into a wall, or will it be a simple slow leak for years and years?

..And which would be better?

You can add David Rosenberg to the list of people that say ‘whimper, not bang‘.

His latest comments fall into the ‘not a bubble, a balloon’ camp:

“Prices are starting to deflate by 0.8% YoY, though more like air coming out a balloon slowly than a giant pop,” wrote Rosenberg Tuesday in his morning note.

“It is gradually becoming a buyer’s market with the inventory of unsold homes rising to six month’s supply, which is at the edge of a balanced market.”

Of course most of that drop nationally is being driven by Vancouver where everything is falling fastest.  What remains to be seen is whether the current drop will remain even or accelerate.

Vancouver ain’t what it used to was going to be

Two former city planners who were fired by councils over differences of opinion are in the Vancouver Sun complaining about a lack of planning.

That would be a lack of planning for future city growth.

They are joined in their concern by a third former city planner who retired in 2006.

“I come back to Vancouver and more and more I worry that here we have become incredibly complacent about the future we are going to face,” said Beasley. “To me there is no question. I don’t feel vague about it, I don’t think it is unknowable, we are going to have a big affordability problem in this city. That affordability could in fact be the defining reality and image in this city by 2050. It is already becoming the alternate image of this city that goes along with the beauty and all that.”

He said the region needs a “brand new” metropolitan plan, “a plan that thinks about the issues of the future, a plan that is not shy, a plan that does not have parameters and you can’t talk about this and you can’t talk about that. And until we get that plan, we are not going to solve the problems of the inner city, the affordability, our heritage program, our culture, whether we have enough office space. We just are not going to solve it unless we get a much broader concept of our metropolitan core and we get a plan for it.”

Toderian said in his term as planning director he tried to start a new citywide plan but could not get past “obsolete” local neighbourhood plans that have only made the problem worse.

Can you plan a great city, or can a great city just happen in a pretty place?

Another Realtor says “SELL NOW”

Should we have some sort of index tracking Realtors making public statements that it’s time to sell?

The market is sluggish, sales are low, inventory is growing.

..And the number of agents saying it’s time to SELL NOW is growing as well.

Agent Keith Roy was in the news recently with his blog post about the sale of his personal property and now Sam Wyatt is saying something similar:

Vancouver’s real estate market is getting and is going to get hit from both ends.  So, now that you are thoroughly depressed, here is the bright light:  IF YOU SELL NOW, YOU WILL STILL BE SELLING NEAR THE TOP OF THE MARKET.  If you plan to sell, you will need to price BELOW the most recent comparable sales prices.  If you don’t do this, your listing will stagnate.  I am pleased that this methodology has produced 4 sales in the last 30 days for my clients in a market were most homes are not selling.  In one case we had a multiple offer with a significant over asking result and in another we negotiated a full asking price sale.

I guess the important part is in all caps.

So can anyone find me a Realtor saying that now is a good time to buy in Vancouver?

 

Island markets have that sinking feeling

If you’re curious what a market looks like when it’s been falling for a while check out these stats for different areas on the island.

John Cooper of ReMax provides some good stats packages for various Vancouver island markets.

It looks like a lot of the outlying areas and recreational property in BC isn’t doing as hot as it once was.

In Qualicum Parksville, a single condo sold last month.