Posted on
May 21, 2015
by
Emma Van de Wetering
Stagnating wages and soaring real estate could trigger an exodus of millennials from Metro Vancouver, according to a new report sounding the alarm about a potentially looming labour crisis.
Between 2001 and 2014, housing costs in the region increased 63 per cent while average wages for full-time workers grew only 36 per cent, Vancity’s “Help Wanted” report found.
The gap was most pronounced in Vancouver, where home resale values spiked a staggering 211 per cent over that period.
Vancity said if the trend continues, the vast majority of workers won’t be able to afford the average Metro Vancouver mortgage by the year 2025, and that could lead to a mass migration.
“More and more, people are wanting to live in the communities where they work,” Vancity vice-president of community investment Andy Broderick said in a statement.
“If these communities are not affordable, workers will look elsewhere.”
Only three of the 88 jobs deemed high-demand by the B.C. government will pay enough to afford housing in 10 years, according to the report: senior business managers, senior construction managers and engineering managers.
That would leave out everyone from lawyers to specialist doctors to firefighters.
Vancity’s report describes millennials as “very mobile and the most highly educated generation ever,” and warns many won’t hesitate to leave in pursuit of an easier path to home-ownership.
In fact, the trend may have already started: Vancouver lost 1,571 residents in the 20-30 age group in 2013, up from 770 the year before, according to Vancity.
The report recommends businesses aim to offer employees a living wage, and that local and provincial governments work together to push for more affordable housing and rental units.
To read the full “Help Wanted: salaries, affordability and the exodus of labour from Metro Vancouver” report, click here.
Posted on
May 21, 2015
by
Emma Van de Wetering
April was the hottest month for B.C. home sales in a decade, the British Columbia Real Estate Association says.
In a release this morning the BCREA said that total sales last month added up to $6.3 billion. That’s a 45.5-per-cent increase over April 2014.
The average MLS residential price shot up 13 per cent from last April, to $634,744.
"Last month was the strongest April for home sales in a decade,” Cameron Muir, BCREA chief economist, said in the release. “The elevated level of buying activity this spring is now expected to push 2015 home sales to their highest level since 2007.”
The release added that during the first four months of 2015, B.C. residential sales added up to $19 billion, a 37.1-per-cent increase when compared with the same period in 2014
Read more: http://www.vancouversun.com/business/home+sales+April+highest+mark+decade/11055302/story.html#ixzz3ap8NbJtp
Posted on
May 8, 2015
by
Emma Van de Wetering
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The City of Port Moody and the Village of Anmore approved a Memorandum of Understanding to work together and exchange information with respect to the development of Ioco Lands recently purchased by Vancouver-based land developer, Brilliant Circle Group.
“This Agreement demonstrates our commitment to protect the interests of residents on both sides of the Port Moody- Anmore border related to the development of Ioco lands,” says Port Moody Mayor Mike Clay.
When reviewing development applications both municipalities plan to consult on matters related to:
- Regional traffic issues
- Mossom Creek watershed and Fish Hatchery
- Environmental protection
- Infrastructure and amenities
- Neighbourhood and community concerns; and
- Heritage Protection and related issues.
Village of Anmore Mayor John McEwan says, “It’s important to work collaboratively on areas of common concern and public interest on a regional level rather than solely on specific areas of municipal jurisdiction. This Memorandum of Understanding provides us with the foundation to do this effectively.”
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http://www.portmoody.ca/index.aspx?page=43&recordid=1253&returnURL=%2findex.aspx
Posted on
May 5, 2015
by
Emma Van de Wetering
http://www.theprovince.com/business/Australia+tackle+high+housing+prices+with+fines+jail+illegal+foreign+home+purchases/11027476/story.html
Australia will jail foreigners who purchase homes illegally as the government seeks to slow a surge in house prices, Prime Minister Tony Abbott said.
Sentences may stretch to three years and fines to A$637,500 ($607,000) for illicit buyers, with penalties also on third parties knowingly complicit in violations, Prime Minister Tony Abbott said Saturday in Sydney. The steps are needed to give the public confidence that foreign-investment rules on property purchases are being enforced, he said.
The penalties will tighten scrutiny on overseas buyers at a time when record-low interest rates are driving up Sydney property prices five times faster than wages. A company owned by Chinese billionaire Hui Ka Yan's Evergrande Real Estate Group Ltd. -- which illegally bought a A$39 million mansion overlooking Sydney Harbour -- has sold the site to an Australian citizen, Treasurer Joe Hockey's office said Friday.
"What we want to do is ensure that illegal foreign investment is not unnecessarily driving up prices," Abbott said. "If you don't play by the rules there will be a tough penalty regime in place, and those penalties will be enforced."
Overseas buyers are only allowed to purchase newly built homes in Australia and need the permission of the Foreign Investment Review Board. Approved overseas purchases of Australian homes more than doubled to A$34.7 billion in the year ended June, with China overtaking the U.S. as the biggest source of capital, the board said in its annual report Thursday.
Least-Affordable
Sydney ranked third among the least-affordable major metropolitan housing markets worldwide, after Hong Kong and Vancouver, according to a report in January by Demographia.
Melbourne placed sixth in the report, ahead of London in seventh place. New York ranked 15th, tied with the Western Australian capital of Perth and just behind Adelaide.
In Victoria state, foreigners buying houses will pay a new tax equivalent to 3 percent of the purchase price, the Age newspaper reported Saturday. The measures will raise about A$279 million over four years, the newspaper quoted state Treasurer Tim Pallas as saying ahead of his first budget on Tuesday.
Risks to Australia's economy from property speculation and household debt will be one of the main issues studied by an International Monetary Fund team visiting the country next month, the Australian Financial Review quoted the fund's local mission chief as saying today.
They'll also consider whether the issue should be dealt with using monetary policy or government regulation of loan-to- value ratios, bank capital requirements or risk weightings, the paper quoted the IMF's James Daniel as saying.
Price Gains
House prices increased 15 percent in Sydney and 11 percent in Melbourne over the 12 months to April 30, according to data from CoreLogic RP Data. The median dwelling price in Sydney was A$732,500, the data showed.
Under the new law, individual buyers found guilty of breaching foreign investment rules will face penalties of A$127,500 or three years imprisonment. A higher A$637,500 fine will apply to companies.
Third parties who assist investors in breaching the rules will face fines of A$42,500 for individuals and A$212,500 for companies, according to an e-mailed statement from the prime minister's office.
The government plans to introduce legislation on the measures later this year and ensure the changes are enacted on Dec. 1.
'A Fair Go'
"What we want to do is to maximize the opportunities for Australians to buy a home at the best possible price," Abbott said. "We want people to be absolutely confident that local people are getting a fair go."
Abbott declined to comment on a report in the Australian newspaper today saying the government would introduce changes to pension payments so that a reduced rate of pension growth only applied to wealthier Australians. "I'm just not going to engage in pre-budget speculation," he said.
The budget, due May 12, "will be measured, responsible, and fair," he said. "It's a budget that will be good for jobs, growth, and opportunity."
The Daily Telegraph newspaper this week reported that that some members of the government were considering calling an early election the week after the election, even as they trail the opposition Labor party in opinion polls.
"When the public elected us they intended us to govern for three years," Abbott said, when asked about the article. "That's what we intend to do."
Posted on
April 24, 2015
by
Emma Van de Wetering
CTV Vancouver
Published Thursday, April 23, 2015 2:47PM PDT
Last Updated Thursday, April 23, 2015 7:55PM PDT
First-time home buyers in Canada are increasingly turning to their parents for financial help, according to a new survey from the Bank of Montreal.
The BMO 2015 Home Buying Report, released Thursday, suggests a full 42 per cent of first-time buyers are expecting assistance from the “Bank of Mom and Dad.”
That’s up 12 percentage points over last year.
First-time buyers are budgeting an average of $312,700 for their purchase, the survey found, and they anticipate getting an average of $37,500 from family.
“Whether buying a first home or moving onto another home, we’re seeing more and more buyers embark on the journey with help from family,” Martin Nel, BMO vice-president of personal banking products said in a statement.
“It’s important for both buyers and their family to discuss their budget and the expectation for financial help. Creating a detailed savings plan and building an after-purchase budget can help determine what is truly affordable.”
According to the report, 42 per cent of current homeowners looking to upsize also expect help from their parents – much more, in fact, at an average of $94,780.
The help appears to be crucial to many of them, too. Half of upsizers and 40 per cent of first-time buyers told BMO they wouldn’t be able to afford their purchase without their family’s contribution.
This year’s survey also found a sharp increase in the number of first-time buyers willing to engage in a bidding war. Nearly half of those polled said they would, compared to 35 per cent last year.
Only 36 per cent of upsizers said they’d be willing to enter a bidding war in their search for a better home.
The online survey was conducted by Pollara on behalf of BMO, and polled a random sample of 2,007 Canadian adults from Feb. 24 to March 5. A survey of that size has a margin of error of plus or minus 2.2 per cent, 19 times out of 20.
Posted on
April 23, 2015
by
Emma Van de Wetering
More from Garry Marr | @DustyWallet
It’s not only the country’s most expensive market that is on fire in British Columbia, more homes traded hands throughout the province in March than in eight years.
The British Columbia Real Estate Association said Thursday that 9,101 homes were sold through the Multiple Listing Service last month, a 37.6 per cent increase in sales from a year ago. The total dollar volume was $5.8 billion, a 57.1% increase from a year ago while average prices climbed 14.1 per cent during the period to $641,799.
The Vancouver story has been well documented and the provincial statistics bear out the strength of that market. Greater Vancouver, where the average price of a home sold in March reached $891,652, accounted for more than two-thirds of the dollar volume of sales. Two-storey detached homes, in particular, now fetch more than $1.27 million in Vancouver and the North Shore, according to Royal LePage’s latest House Price Survey.
But there are other cities that showed a massive upswing in sales. In the Fraser Valley, sales were 45.4 per cent in March from a year ago. The South Okanagan saw a 30.3% bump in sales while Vancouver Island was up 28.2 per cent during the period.
The chief economist for the B.C. provincial association, Cameron Muir, says “rock bottom” interest rates and “rising consumer confidence” have helped drive sales across the province.
“Many board areas are now exhibiting sellers’ market conditions with home prices advancing well above the rate of inflation,” said Mr. Muir, in a release.
Average sale prices in Vancouver were up 11.2 per cent last month from a year ago but during the period the Fraser Valley saw a 10.4% increase, South Okanagan an 11% jump and Kamloops was up 6.6%.
The provincial average price, for the 11 boards surveyed by the British Columbia group, reached $641,799. The cheapest place in the province was Powell River on the Sunshine Coast of southwestern BC but even there prices climbed 4.6% to an average of $229,393.
twitter.com/dustywallet
Posted on
April 23, 2015
by
Emma Van de Wetering
Port Coquitlam home gets 17 offers, sells for $107,000 over asking
By SARAH PAYNE
April 21, 2015 · Updated 12:48 PM
12Comments
This home on Wellington Street in Port Coquitlam sold on Sunday after receiving 17 offers. It sold for $107,000 over the asking price of $595,000. / MLS PHOTO
Realtor Scott Leaf knew his client's home would be a hot commodity in an already smoking real estate market but what happened at 4086 Wellington St. on Sunday has left him stunned.
The Port Coquitlam home boasts four bedrooms and three bathrooms in just over 2,100 square feet, with an updated kitchen and an expansive backyard. It has been well cared for over the years but, truthfully, isn't particularly exceptional, he said.
"It's a nice B.C. box just like the one I grew up in," said Leaf, of Keller Williams Elite Realty.
Nevertheless, more than 150 prospective buyers toured the home during open houses on Saturday and Sunday — so many that at one point, Leaf had to do crowd control and ask people to check out the backyard before coming inside.
But even before the open houses — just a few days after it was listed on April 14 — Leaf told his clients to brace themselves and be ready for their home to sell.
It sold. Boy, did it sell.
On Sunday evening, 17 buyers lined up outside the home to submit their offers.
By the end of the night, the home, listed for $595,000 (and most recently assessed at $559,000), sold for $702,000.
"I knew it was going to be busy but I had no idea it was going to be that busy," Leaf said. "Even with the [Canucks playoff] hockey game, we had 17 people standing outside."
He knew the house would be a big draw, given its proximity to Irvine elementary, a French immersion school, the large, private backyard and, most importantly, the price.
"There's so little available and so many people looking," he said, noting the bulk of available housing tends to be further up on Burke Mountain, where homes are priced above $800,000, or in the condo market, while detached homes in the $600,000 range are hard to come by.
So keen were the hopeful buyers that most of the offers were subject-free, cash bids.
The homeowners, a couple that is downsizing, are in a state of "stunned disbelief," Leaf said, with "big smiles."
spayne@tricitynews.com
@spayneTC
Posted on
April 22, 2015
by
Emma Van de Wetering
Demand continued to rise across Metro Vancouver's housing market in March.
The Real Estate Board of Greater Vancouver reports that residential property sales in Greater Vancouver reached 4,060 on the MLS® in March 2015. This represents a 53.7 per cent increase compared to the 2,641 sales recorded in March 2014, and a 32.6 per cent increase compared to the 3,061 sales in February 2015.
Last month’s sales were 26.8 per cent above the 10-year sales average for the month.
"We're seeing strong competition amongst home buyers today. This is leading to more multiple offer situations and some upward pressure on home prices,” Darcy McLeod, REBGV president said. “For sellers, this means that it's taking less time, on average, for your home to sell if you have it priced correctly for today's market."
New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,968 in March. This represents a 13 per cent increase compared to the 5,281 new listings reported in March 2014.
Last month’s new listing count was 4.7 per cent higher than the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the REBGV MLS® is 12,376, a 14.5 per cent decline compared to March 2014 and a 4 per cent increase compared to February 2015.
“The number of homes for sale today is below what’s typical for this time of year,” McLeod said. “If you’ve been considering putting your property on the market, these market conditions indicate that now may be a good time to list.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $660,700. This represents a 7.2 per cent increase compared to March 2014.
The sales-to-active-listings ratio in March was 32.8 per cent. This is the highest that this ratio has been in Metro Vancouver since July 2007.
Sales of detached properties in March 2015 reached 1,711, an increase of 53.3 per cent from the 1,116 detached sales recorded in March 2014, and an 83.4 per cent increase from the 933 units sold in March 2013. The benchmark price for a detached property in Metro Vancouver increased 11.2 per cent from March 2014 to $1,052,800.
Sales of apartment properties reached 1,627 in March 2015, an increase of 47.1 per cent compared to the 1,106 sales in March 2014, and an increase of 65.7 per cent compared to the 982 sales in March 2013. The benchmark price of an apartment property increased 3.3 per cent from March 2014 to $390,200.
Attached property sales in March 2015 totalled 722, an increase of 72.3 per cent compared to the 419 sales in March 2014, and a 67.1 per cent increase from the 432 attached properties sold in March 2013. The benchmark price of an attached unit increased 4.9 per cent between March 2014 and 2015 to $484,900.
Source: Craig Munn, Communications Manager, Real Estate Board of Greater Vancouver
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