The Vancouver housing market experienced a dramatic rebound this year. MLS® residential sales increased threefold January to October on a seasonally adjusted basis, and are trending on record levels. A marked increase in affordability during the spring induced many potential buyers into the market and the resulting momentum quickly turned a buyer's market into a seller's market with upward pressure on home prices.
Rising home prices are again eroding affordability and the demand that welled up last winter during the height of the financial crisis is now largely expended. This means the pace of home sales recorded this autumn will likely moderate over the coming months. However, despite some moderation in consumer demand, home sales in Greater Vancouver are expected to remain relatively strong through 2010.
The information contained in this report has been drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does the British Columbia Real Estate Association assume any responsibility or liability.
After posting an estimated 41 per cent increase to 35,500 units this year, home sales are forecast rise an additional 5 per cent to 37,100 units in 2010, well above the ten-year average of 33,000 units.
The annual average MLS® residential sales price in Greater Vancouver is estimated to decline 1 per cent to $586,000 this year. This reflects the cyclical low recorded early in the year and the recent price acceleration. The average annual price is forecast to rise 6 per cent to $620,000 in 2010.
However, much of the increase will have occurred by the end of this year, with greater stability in home prices expected next year.
Housing starts in the Vancouver Census Metropolitan Area are estimated to fall to their lowest in more than four decades this year. A sharp decline in units under construction and inventory levels that peaked at a relatively low level is setting the stage for home builders to ramp up production in 2010. The lag between conception and completion of new housing may create a period of under-supply in the new home market. This condition will help underpin price levels in both the new and resale markets in Greater Vancouver.
A few years ago I became familiar with a 2005 Port Moody report, "Moody Centre Commercial Market Assessment and Revitalization Strategy Gap Analysis".
The objective of this report was to provide an overview of the market position and redevelopment strategy for the retail component of the Moody Centre Commercial District, "...a relatively large and mature commercial district, which could be revitalized".
It confirmed untapped levels of demand that could easily support a huge retail infrastructure, much like what has been envisioned for Moody Centre at the "Western Gateway" ("The area extending along Albert Street/Barnet Highway from St. Johns Street to Short Street is often referred to as the Western Gateway to Port Moody. It is intended that the scale of redevelopment in this area will be reflective of its prominence as an entrance to the City." - Port Moody's DEVELOPMENT PERMIT GUIDELINES section 12.1 Development Permit Area 2 for Moody Centre).
Here are some revealing and disturbing excerpts from the Gap Analysis:
The (Moody Centre) commercial district does not have the scale or types of stores required to serve the retail needs of consumers. The majority of all residents' retail expenditures go outside the trade area to much larger destinations.
It is the food and service businesses that Moody Centre is well positioned to satisfy. There is over $30 million in potential supermarket sales available. This could support two supermarkets, or close to 50,0000 sq.ft. of supermarket space, yet there is not a single supermarket within the study area.
Moody Centre trade area could support a wide range of and scale of stores. The main problem with capturing the retail sales of this market is the presence of competitive stores nearby and the lack of anchor stores on site. One of the most important steps to increase sales would be to increase the local population by allowing more multi-family development.
If Port Moody residents shopped within their own city, the estimated demand shown here for the trade area could be more than tripled.
This last point is particularly poignant for the owners and residents on the west side of Barnet Highway. We have failed to market the untapped demand identified in this report, and almost 5 years later little has changed.
Today the Evergreen Line offers a once in a lifetime opportunity to integrate the existing neighbourhoods in the west end of Port Moody, "under-serviced" as they remain, which are ripe for revitalization and growth.
This Western Gateway area has been affectionately (although unofficially) identified as "Old Port" (in contrast to the built-out, "Newport") by many of those engaged in the ongoing OCP process and is seen as an excellent location from which to serve a large and underserved market.
According to draft OCP documents, "Commercial land use needs for Port Moody will be met through a number of strategies..." including, "...higher density mid-rise and high-rise mixed use development in nodes or clusters within Moody Centre." This clearly offers some hope.
The single most important issue is that the west side of Port Moody has no "Landmark" or anchor tenants. New residential development and retail located near an Evergreen station in this area is a potential answer, which would help integrate the western neighbourhoods and develop a distinct identity for the Western Gateway to Port Moody.
The Province is proposing to increase the threshold for the BC HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than is currently embedded as PST.
The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.
This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.
The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010.
In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.
This is good news for the Real Estate Board and proof that our lobbying efforts produce results.
In October, 2009, the Board asked the government to raise the threshold for the HST on new homes as well as the new housing rebate.
"We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province," said the Hon. Colin Hansen, Minister of Finance. "...Don't ask me what I want it for, If you don't want to pay some more, 'Cause I'm the taxman, yeah, I'm the taxman"
Clearly the BC government listened to us in the real estate sector.
In early 2008 multi-family homes in Port Moody became the city's main source of available housing stock. Yes, more than 50% of Port Moody's households are now multi-family.
Extrapolating the fact that we have more couples here in Port Moody, based on single (1) person households in Port Moody of only 19.6% (compared to 28.5% in Metro Vancouver), the supply and demand for one bedroom suites is much lower than that of 2 bedroom.
In contrast to other cities, and based on the 2006 Census, Port Moody has a significantly younger citizen profile which means amongst other things that retail buying patterns of our citizens will be different.
In the 20 years between 1986 and 2006 the shifting age distribution of 55 plus has grown. While BC as a whole has a 55 plus (age) population of 26.8% and Metro Vancouver is at 24.1%, only 18.1% of Port Moody's population is 55 plus.
Looking at 65 plus, and again BC is high at 14.5%, Metro Vancouver at 12.9% and Port Moody's 65 plus population is at only 7.8%.
This younger demographic are more computer dependent and will communicate and be engaged through the internet and handheld applications such as the Blackberry and iPhone. Being so distinct it will be interesting to see how Port Moody responds.
We are very fortunate to have an unrivalled quality of life in Port Moody that is affordable, modern family-oriented, promotes sustainable and green practices, and caters to a vibrant and active outdoor lifestyle.
We are uniquely situated on the Pacific North-West as Canada's gateway to emerging markets and with a reputation as one of the most liveable regions in the world. This helps to explain the continued net gains from in-migration and why the global spotlight of the 2010 Olympic torch is unlikely to stop the desirability or demand of West Coast living with Port Moody being high on the list.
November 12, 2009 Port Moody has given a preliminary green light to an 11-storey residential development that would add more than 150 units up the Chineside slope on Henry Street.
On Tuesday, council granted first two readings on zoning and official community plan amendments for the multi-family development in Moody Centre. Currently a vacant piece of land, the development would be located west of Moody middle school and east of the Terravista building.
An OCP amendment is needed to allow for the 11-storey height but, according to city staff, the building would consist of "ascending green terraces" up the Chineside slope, creating an actual elevation of six storeys. Allowances are also needed to vary parking requirements for the site because the proposal, which calls for three levels of underground parking, would still be short about 17 parking spots.
And while some members of council are supporting the proposal, neighbours have expressed concerns about traffic and the loss of green space.
"I walk through the trails that pass through the proposed site daily, embracing the beauty of the forest that surrounds the area," wrote Jagoda Kozikowska, a Terravista resident, noting bears, migratory birds and other wildlife use the area frequently.
Ronnie Miranda, who lives in the 2900-block of St. Johns Street, said Henry Street can barely accommodate the existing traffic volume, especially on school days, and traffic on St. Johns is "extremely congested," particularly during rush hours. Miranda also questioned the logic of creating a new, medium-density development when units in nearby developments remain vacant.
But at least one Moody Centre resident is welcoming the proposal.
John Grasty, chair of the Port Moody Western Station Committee, wrote in a letter that he's "delighted" with the proposal because it would help create a compact, walkable community.
"Although the 300-plus residents this development will add are just outside the 400-metre radius of the Evergreen Line station, it is critical for this proposal to move forward," he wrote, saying it would demonstrate PoMo's commitment to a third Evergreen station on the city's west side.
Staff say the building would achieve a "high quality development" for that part of Moody Centre.
The developer is proposing to concentrate building on the lower portion of the site to reduce the environmental impact and has agreed to dedicate 1.2 acres at the property's higher elevation for park land.
The building would meet a LEED silver standard and include bike lockers, a car share program, rooftop community garden and composting facilities.
Coun. Bob Elliott reiterated his stance against approving any new development given council's "zero to minimal growth" policy to be included in the new OCP.
"I'm supporting it because I think it's a good plan," countered Coun. Mike Clay, noting the city needs more consistency in handling its development applications.
In addition to Clay, Councillors Meghan Lahti, the acting mayor, and Gerry Nuttall voted in favour of the first two readings; Mayor Joe Trasolini and councillors Diana Dilworth and Karen Rockwell were absent.
A public hearing on the development is scheduled for Dec. 8 at 7 p.m. at Port Moody city hall.
By the numbers, Port Moody needs a third station for the Evergreen Line.
So says a grassroots group in Moody Centre, which is pushing government officials at various levels for a western stop on the proposed rapid-transit line for the Tri-Cities.
The Port Moody Western Station Committee argues that one in four Port Moody residents could be short-changed if a station isn't located on the city's west side. The committee is an informal group made up of Moody Centre businesses, residents and organizations.
Aside from the stations planned for St. Johns and William streets and at Ioco Road, only one other stop is being considered by government officials for the city: west Port Moody.
Another additional stop near Lincoln Avenue is also a possibility, but has no firm commitment.
"Two additional station locations will be considered, working in consultation with local communities, based on their ability to shape land use and promote increased density and ridership," a project backgrounder states.
But the group says, by its calculations, omitting the Barnet Highway portal would mean the Evergreen Line would bypass more than 8,300 residents, or one in four in the community.
John Grasty, chair of the Port Moody Western Station Committee, said group members extrapolated numbers from Canada Post and census figures to determine populations in the area. The hope is that the figures will persuade Port Moody council to drum up momentum for a west side station.
"We're trying to make a compelling case, which we feel we've made extraordinarily, for the west side of Port Moody," Grasty said.
Once committee members began crunching numbers, he added, they realized that only 7.9 per cent of Port Moody's population is over the age of 65 -- well below Vancouver's average of 12 per cent and the provincial average of 14 per cent.
"We have a very young demographic. We do not have a very big senior demographic compared to Metro Vancouver or the rest of the province," he said. "There's lots of younger people who want to take their bikes on the SkyTrain or walk down the hill."
Committee spokesperson Robert Simons said there are more than 600 signatures on a petition the committee has circulated to press TransLink and government officials for a western station.
"There's a strong community sentiment, for a number of reasons, to have a third station in Port Moody," he said, noting such a station could spawn commercial redevelopment opportunities and leverage the area's heritage.
"It will be that catalyst that will do things for Port Moody not only immediately, but for the next 30 and 40 years to come."
Simons said the committee went to city council Tuesday to encourage local leaders in early lobbying efforts for the third station.
"You've got to be proactive in your activities," he said, adding that waiting "may not serve the purpose.
"We have to continue to push the case, because it will not happen without the community input and support."
Port Moody acting mayor Meghan Lahti said, however, that council's support for a third station is on the record and that won't change.
"We support a third station in the city. Where and how that station is put together is still a question mark."
The city will begin joint planning with TransLink, Lahti said, adding that meetings could be held as early as sometime during the next few months. That's when discussions around a third station could come up.
"There will be a time for us as a city to get involved and make our position better known to those planning bodies," she said, adding that the municipality is still waiting for concrete news on funding from TransLink. "We'll see what happens. At some point someone will have to come up with some money before a shovel hits the ground. We're still waiting for that."
Lahti stressed that, despite current funding challenges, it may be possible to add stations in the future. "The funding for this entire line is still questionable. If they proceed with the funding for the line, we will be pushing for a third station," she said. "They're proceeding as though they have the money already, so maybe they know something we don't know."
Lahti cited the example of the Millennium Line, which added stations like Lake City Way after the original line was launched.
"It was always planned for, but they phased it in," she said. "If they said we could only have two, at this point we would be pushing for some type of phase-in for a third.
"But obviously the optimum situation is they would just put the third in right away."
A Port Moody condominium apartment for sale which I was showing to a woman was advertised as a two (2) bedroom. I discovered upon showing that it was in fact a one (1) bedroom and den.
Well it turns out that the developer originally sold these properties as two bedroom units to unsuspecting Buyers (hopefully none of which were represented by a licensed representative here in the REBGV).
A ‘den of thieves' is not where robbers steal, but a "safe house" to which they return after having robbed somewhere else. So where is this "safe house" that allows developers to rip-off the general public?
It's in the Real Estate Development Marketing Act. The administrator of REDMA regulations is the Financial Institutions Commission (FICOM) and it seems to be so far removed from overseeing the regulations that the developers will continue to create a den of misery for future homebuyers.
Another common example of a developer rip-off is the overstating of inhabitable space when selling to the public; again, nothing is done.
When setting appointments of homes for sale for clients to view we're at the mercy of our professional colleagues and must rely heavily on the information provided on the listing to be accurate and complete. Relying on the developer information is like relying on the weather or a weather forecast.
Misrepresenting properties in such a way is unacceptable; our time had been wasted and she (my client) wasn't at all happy; neither was I.
This gives the false appearance of being 'good value' for a two bedroom which will attract buyers and their representatives.
Providing inaccurate data can have serious consequences. For instance, when a Comparative Market Analysis is prepared using two bedroom information, it skews the values being used for other REALTORS and their clients.
Perhaps the definition of a den needs to be clarified, and rules established for what counts as a closet and window.
The following definition for the word "den" from Merriam-Webster Online seems to provide a simple understanding: A comfortable usually secluded room.
Btw, none of the definitions I found for the word "den" presented it in a context for use or substitution as a bedroom.
In May 2007 I reported this to the board and was told: "...our technical area has advised that they will submit your request as an enhancement request to the service provider. Because MLXchange is so widely used, enhancement requests such as this can take a fair bit of time to be adopted; however, we will stress the importance of this enhancement for our market.
It is concerning to hear of REALTORS wrongly classifying properties and we will take measures to note this in our MLX courses. Thank you for bringing this forward."
I had the opportunity to review the plans and conceptual drawings for this proposed development by Harmonix Ventures at Henry Street and Buller Street and fully support the project moving forward.
Perspective looking into entry court along Henry
This is in "Area 3" of Moody Centre as it was identified at the Design Charrette in 2007, and as a participant in that particular group I am delighted to see how the proposal is in keeping with the vision.
Neighbourhood Plan Area policies for Moody Centre include encouraging non-vehicular movement of people in the neighbourhood by creating improved pedestrian connections. This development is true to transit-oriented development principles, creating a more compact, walkable community and reducing reliance on vehicles, and fits the definition of a Complete Community.
The incorporation of Green building technologies and sustainability features also add visual interest and identity to the streetscape, and are exactly what Port Moody citizens have asked Mayor and Council to provide.
Although the 300 plus residents this development will add are just outside the 400 metre radius of the Evergreen Line station, it is critical for this proposal to move forward without any delays to further demonstrate Port Moody's commitment to Evergreen Line stations being located where they are best supported by land uses and densities.
I have written asking Mayor and Council to fully support this project on its own merit without any delays, and as an example of what Port Moody wants to see in the future. Please add your support as well.
A mortgage is a loan used to buy a property. As with all loans, how much interest you pay depends on several factors. This link will introduce you to What is a mortgage?
For advice on mortgages, the video, "A guide for mortgage virgins" offers invaluable tips. Watch and listen to Doug Melville, Canada's Ombudsman for Banking Services and Investments tell you what you need to know before you sign on the dotted line.
If you're looking for a reputable Mortgage Broker in the Metro Vancouver area let me help you. BTW, I do not accept referral fees for referring clients to a Mortgage Broker.
...skilled writing about an unimportant subject, or is that unskilled writing about an important subject?
Well I don't know so as things unfold please judge for yourself...
...don't forget to leave a comment, and thanks for visiting.
John Grasty is a REALTOR® serving the Tri-Cities (Coquitlam - Port Coquitlam - Port Moody) real estate market.
Please check out John's website: http://www.RealEstateEvolved.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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