RE/MAX Select Properties : Latest Blog Posts

Gazing into that Crystal Ball

Fri, 20 Aug 2010 00:23:39 GMT

CMHC Housing Outlook Session: Forecast for Vancouver Housing Market

August 18, 2010

Presenter: Robin Adamache Senior Market Analyst for Vancouver Region

August 18,2010, Vancouver - Senior Market Analyst, Robin Adamache began her session by talking about the overall economy in BC. Real GDP up 2.7% in BC although what happens in the USA affects us directly in GDP, so predictions must be done with an eye on how conditions are in the States.

Lower mainland is looking forward to 29 Billion in major projects in the next year…including the New Surrey Hospital and the Evergreen Line. Job growth is at 2% vs. a decline last yr of half a percent. Good solid full time jobs are being created, Ms Adamache quipped that these were not “McJobs”.

Migration growth continues at the same pace as last year’s 58 thousand new migrants into Vancouver area. There will be approx 18 thousand new households in need of housing each year over the next few years if not longer.

The CMHC expects that there will be a gradual increase in interest rates next year. Robin made a point of reminding everyone that interest rates have been at a historic low for a sustained period of time. Any increases will be gradual, but they are expected.

Canada remains about 20 times lower than the US in mortgage defaults. In short, Vancouver has a stable economic environment. There are lots of people moving here and buying here. The question was asked, “Who is buying?” 6% of existing Vancouverites plan to buy. One third of buyers will be first time home buyers, while sixty percent are move-up buyers, and 25% are downsizing.

Despite all of this seeming good news, the reason it is not a crazy hot market is partly due to the changes in lending policies, and the rise in interest rates. The market is in the “balanced” range of 40 to 60% of the sales to listings ratio. Prices will rise next year at about the rate of inflation. There is an ample supply of listings in the West Side. Peak prices were reached earlier this year, but have dropped slightly since. The activity in house sales has shifted to the higher price ranges. 57% of the activity on the MLS has been in the 1.25 to 2.25 million dollar range. Downtown condo prices have dropped by around 3%. Coal harbour average condo price per sq ft is 852; False Creek = 805; West End = 605.

Price growth in 2010 will close out in the average range of 9 -11% due to the price growth and activity earlier in the year. Speculative activity is not an issue and is down according to statistics. Research shows that the speculators left the market in 2006 and have not been a factor since. While average mortgage carrying costs remain higher than average rents, the vacancy rate is at 1.7% in Vancouver.

Summary

Economic conditions in the Vancouver CMA will be favourable for the housing market this year and next

Major projects worth approximately 28 Billion are proposed for the Lower Mainland area

As the economy gets traction, some of these proposed projects and some of the 4 Billion worth of project currently on hold will move forward

Vancouver’s job market is also expected to pick up as the economy improves over the next eighteen months

Population growth will add to housing demand, an estimated 40,000 people are expected to move to the Vancouver region each year, adding about 18,000new households in need of housing

It will be important to keep an eye on higher mortgage rates which may dampen homeownership demand, especially for those who are more sensitive to the impact of higher rates.

Growth without a Bubble

Wed, 14 Jul 2010 19:39:15 GMT

While none of us can truly predict the future, except that octopus in Germany that predicted the World Cup winners consistantly, there are certain indicators that we can look to in making forecasts for the real estate market.

Vancouver is in the unique position in Canada of having a limited supply of land available for development, while at the same time having an ever growing demand from international, and interprovincial immigration.

Post-Olympics Vancouver has seen an embarassment of riches in the tourism industry. June and July are showing that the high end hotels in Greater Vancouver are at phenominal occupancy rates. These types of high end hotels provide the city with high end tourists, many of which are willing and able to own secondary homes internationally. The exposure to all that the Vancouver life-style has to offer is a great advertising vehicle to this market. This same prospective buying group is also being enticed into the city via the new convention centre, which is bringing in industry groups from around the world for professional gatherings.

Household growth in Vancouver is predicted to be 32 thousand per year while housing starts lag behind at an estimated 14 - 16 thousand per year. This scarcity of demand will continue to drive the Vancouver market. There has been a market adjustment recently, but this only slows down the upward price pressure and doesn't remove it. Vancouver is not in a bubble. The price growth will still be a healthy 8 to 9 % year to year increase.

The cost of construction in Vancouver is higher than in other Canadian markets. This is due partly to the demands of the terrain in the Greater Vancouver area. Issues related to earthquake proofing the buildings, soil density, bedrock, and elevation all play a part in making construction in Vancouver a costly venture. Added to the mix is the hard cost of land in Vancouver. Between the physical limitations, there are also economic restrictions and political restrictions that limit the supply of usable land for development.

The city of Surrey is poised to become the largest city in the Greater Vancouver area within the decade. Richmond, and the Tri-Cities are also growing quickly as mass transportation in and out of Vancouver improves.

The biggest challenge, and one of the most important moving forward, is the supply of affordable rental units in Greater Vancouver. The influence of foreign investors is very important in the development of a sustainable rental property supply. It is estimated that 32% of Vancouver residents are renters, and that number will increase as the need to replace the Baby Boomer workers builds over the next decade.

What all of this means to the real estate market is that the Vancouver area has all of the fundamentals to continue to grow over the foreseeable future. Certainly there will be bumps in the trajectory, but the lack of supply, coupled with the growing demand will continue to push prices and development.

Real Trends Stats: US vs Canadian Real Estate Agents

Tue, 22 Jun 2010 16:07:53 GMT

For 23 years, REAL Trends has ranked the largest residential real estate brokerages in the United States in an annual survey published each May. Upon its release, the REAL Trends 500 provides not only a clear snapshot of who is the biggest, but some interesting nuggets on the industry that can be drawn from the data collected. This year, for the first time, a similar survey was published for the Canadian market. By comparing the REAL Trends Canadian 200 to the two hundred largest firms on the US list, we thought the following findings were pretty interesting:

Although the average Canadian office in our sample had fewer sales professionals (40 per office vs. 51 in the United States), it generated far more transaction sides per year (592 vs. 367) and nearly twice the sales volume ($179 million vs. $97 million.)
That meant that sales professionals in our Canadian sample were over twice as productive as their U.S. counterparts (14.9 annual transactions vs. 7.2 in the US).
Over half of the firms in the Canadian survey would have cracked the top 500 of the U.S. list. Not too shabby considering Canada is one-ninth the population of the United States.

Peer Perspective

Wed, 02 Jun 2010 18:49:18 GMT

The power of consumer confidence is often addressed in economic forecasts by the various charter banks and government agencies. For many the impact is not appreciated or realized...but make no mistake it is a powerful mass dynamic.

In their book, SWITCH, the Heath Brothers talk about the impact of "peer perspective" rather than "peer pressure". It seems that people will respond to any given dynamic based on what others around them are doing. In research it has been observed that an individual in a room with smoke coming through the vents will respond differently than one sitting with others in a room with smoke coming through the vents. The individual will immediately leave to look for assistance, while those sitting together will wait and see what the others do. That same response is often seen in an audience watching a film, or play. People will laugh or applaud based in part on what they see their peers doing.

Recently I succumbed to the power of peer perspective when a young paperboy came to my door. I didn't have any intention of signing up for paper delivery until he casually mentioned that "all of your neighbours are chosing the pre-payment plan via cheque". Before I realized what I was doing, I had my cheque book out.

Consumer confidence has the same power as peer perspective but on a larger scale. Mass media has used their influence in steering consumers. This was displayed recently in Canada when, despite the fact that we were not directly part of the American mortgage meltdown, the housing market dropped for a number of months. It was only after restoring the confidence of the consumer that the market came back in any signicant way.

The Bank of Canada recently signalled an upward move in the prime lending rate...and the Bank of Montreal responded by lowering their 5 yr mortgage rate. Both acting in different directions in an attempt to address the consumer in Canada. Like it or not, we work as a group...and part of our actions and responses are due to peer perspective. People see, people do...

Vancouver Top City for Quality of Life in Canada

Wed, 26 May 2010 15:26:10 GMT

Vancouver rated fourth best city in the world for quality of life

AGENCE FRANCE-PRESSEMAY 26, 2010 7:03 AM

VIENNA - Vienna is the best city in the world to live while war-torn Baghdad is the worst, a survey said Wednesday, putting Europe at the top of the rankings with Asia and Africa trailing.

The Austrian capital "retains the top spot as the city with the world's best quality of living," British consultancy firm Mercer said in its 2010 Quality of Living Survey.

Swiss cities Zurich and Geneva followed in second and third places respectively, while Vancouver and Auckland in New Zealand were joint fourth.

For its annual survey, Mercer assessed the quality of living in 221 cities worldwide, measuring them against New York with an index score of 100 points as the base city.

Vienna, which also took the number one spot last year, scored a total 108.6 points, while Baghdad scored the lowest with just 14.7 points.

European cities continued to dominate the top 25 cities in the survey, Mercer said, while Canadian cities also had a strong showing.

Among cities in Britain, London ranked number 39, Birmingham 55 and Glasgow 57.

In the United States, the highest ranking entry was Honolulu in 31st place, followed by San Francisco in 32nd.

Singapore was the top-scoring Asian city in 28th place, followed by Tokyo in 40th.

Baghdad ranked 221st, remaining at the bottom of the list. It was followed by Bangui in the Central African Republic, N'Djamena in Chad, Khartoum in Sudan and Tbilisi in Georgia.

Mercer also awarded cities eco rankings based on water availability and drinkability, waste removal, quality of sewage systems, air pollution and traffic congestion.

Calgary in Canada came top of this list, followed by Honolulu in second place and Ottawa and Helsinki in joint third place.

Port-au-Prince in Haiti ranked at the bottom of this table, Mercer said.

The Power of the Third Party Endorsement

Wed, 12 May 2010 18:29:52 GMT

I have come to the conclusion that people just like the words, Twitter, and Tweet. Even those who have no idea about the social media revolution taking place know about Twitter. The name recognition aside, this cute little bird is actually leading the pack in the power of third party endorsements as the new way to navigate through choices and options.

Let's face it, if you want to hire a plumber you can look through the yellow pages and pick out the one that has the best ad, or you can google to find the best website. The third option is to ask your social media network group about their experiences in finding a good plumber. Which has the most power? For most people the endorsment from a third party will carry the greatest weight in making a choice like finding a good plumber, or finding a great real estate agent in a given neighbourhood.

Some pundants are annoucing the death of the search engine and the corporate website in their enthusiasm to embrace the power of social media like facebook and twitter. While it is a bit like those who predicted the death of radio when TV came in, there is no disputing that the internet landscape has forever changed with the growing interactivity available via social media tools.

Within the real estate industry the changes are coming fast and furious. Today it is necessary for an agent to be well versed enough in social media to have a facebook page and a youtube account to keep in contact with their clients and contacts. Many are engaged in blogging, sharing photos, and posting tweets in an effort to remain visible and available for their clients, Our website allows links to the agents individual websites, as well as links to twitter, linkedin, and facebook.

Passive use of the internet is becoming passionate use of the internet. This trend will help the cream rise to the top as people search out advise, experience, and opinions from their third party network friends.

The View from the Roller Coaster

Tue, 04 May 2010 16:45:41 GMT

I recently watched an interesting visualization of the median house price index for Greater Vancouver over the last 40 years. The animation places the viewer in the seat of a roller coaster as it climbs and drops relative to the housing market. Apart from being very entertaining to watch, it also clearly demonstrates how quickly the environment can change in the Greater Vancouver housing market.

Following market trends is only accurate in the past tense. One cannot truly understand the direction the market will take until the change is in motion. Presently in Vancouver there seems to be a shift occurring. Reviewing the MLS statistics, and the RE/MAX numbers it appears that the listing inventory is rising faster than the housing demand. Listings are up, but sales seem to be slowing down. This is happening despite the fact that the charter banks have warned that they will be raising their interest rates by summer.

The fear that house prices have risen beyond what the market will bear may be slowing down the buying frenzy of the last few years. The price of a condo in Vancouver is reaching the unaffordability level for the average citizen. The price of properties in this wonderful city have reached a level more than ten times the average wage of a Vancouverite. Those who caught the roller coaster at the bottom of the climb have done very well over the last 7 years in this market.

Once the HST effect has flowed through the local economy, the question of affordability will come into a clearer focus. Vancouver has always been higher priced than its neigbouring provinces because of it's desirability as a location. The recent olympics have proven to be a magnet for some international tech companies as well as those well-heeled enough to own properties internationally.

The desire to own property on Canada's west coast might be slamming against the reality that those without a seat on the roller coaster could be in for a long wait to buy a ticket.

RE/MAX is the Most Trusted Real Estate Brand

Wed, 28 Apr 2010 20:06:01 GMT

RE/MAX Recognized as the Most

Trusted Real Estate Brand in Canada

(Kelowna, BC, April 28, 2010)

– RE/MAX has been awarded Most Trusted Residential REALTOR® as

voted on by readers of Reader’s Digest magazine. The survey conducted for the annual awards revealedthat the majority of Canadians trust RE/MAX for all their residential real estate needs, ranking RE/MAX associates five-times more ‘trusted’ than the second most trusted brand.

“Our associates should be proud and honoured to receive the confidence of Canadian consumers as the Most Trusted Residential REALTOR®,” says Elton Ash, Regional Executive Vice President for

RE/MAX of Western Canada. “It’s an inspiring merit that the best trained and most experienced agents

have received for providing valuable assistance to so many families.”

Ash believes that this distinction awarded to Canadian RE/MAX associates is due in part to two notable

attributes. The first being “Premier Community Citizenship” - a quality that RE/MAX associates share

by being ever-mindful of the impact they make locally as they are involved with their communities

through volunteering, fund-raising and more.

The second is that RE/MAX associates carry more professional designations than any other REALTOR® in Canada. RE/MAX agents are invested in additional education in specialized areas such as Senior’s representation, commercial brokerage and luxury homes.

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated

throughout its more than 680 independently-owned and operated offices across the country. The

RE/MAX franchise network, now in its 37th year, is a global real estate system operating in more than 70

countries. Over 6,500 independently-owned offices engage over 115,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.

Signs of the Times

Tue, 27 Apr 2010 17:25:59 GMT

Spring is the traditional busy season for real estate in Greater Vancouver, as in most of the Western World. This year is no exception. The signs are out in full force across the region. From Richmond to Coquitlam and through the West Side, the signs are popping up like the leaves are filling the trees.

There has been much speculation regarding what this "post-olympic" market will look like. For the most part it is turning into a typical Vancouver Spring Market. There are a few clouds in the horizon that need to be watched carefully...

The change in bank lending policies came into effect on April 19th. This may have an impact on Investors and first time home buyers, requiring them to have more "in-hand" cash before seeking financing. Although this may create some slowing of the market, it is not enough of a deterrent to impact heavily on demand.

The coming HST is of concern to many. It will impact on the amount of commission that a Seller will pay. Prior to the HST Sellers only had to pay the GST, as there was no provincial component in commissions earned. Now the sales tax becomes a blended entity with the service tax, it will create a 7 % increase in the amount due to the Brokerage on closing.The increase in listings thus far does not suggest that some are looking to beat the tax by selling prior to July. If the listings numbers continue to outpace seasonal norms into the late spring and early summer, then it could be argued that consumers are realizing the savings that will occur with a sale prior to July.

The rise of the Canadian dollar may help to slow down out-of-country speculative buyers, but it has been argued that these types of buyers are a small minority of the buying market.

Some concerns have been expressed regarding the potential increases in interest rates projected for the summer. The Bank of Canada may be looking to increase the rates, but with the relatively low inflation numbers being posted, the Bank may reconsider the increase. An increase in rates may do more harm than good for the Canadian economy, which seems to be moving along very well at this point.

The RE/MAX signs out in the yards across Greater Vancouver are a sign of the times. Inventory is outpacing Buying at this point...but demand doesn't seem to have wained at all.

Listing inventory increases for Spring Market

Fri, 23 Apr 2010 14:45:06 GMT

Home listings rise to start the spring season

A steady influx of new listings has helped create a balanced ‘typical spring’ housing market in the Greater Vancouver region.

The Real Estate Board of Greater Vancouver (REBGV) reports that new listings for detached, attached and apartment properties in Greater Vancouver totalled 7,004 in March 2010. This represents a 60 per cent increase compared to March 2009 when 4,385 new units were listed, and a 52.1 per cent increase compared to February 2010 when 4,606 properties were listed on the Multiple Listing Service® (MLS®).

At 13,538, the total number of property listings on the Multiple Listing Service (MLS®) increased 19 per cent in March compared to last month, but remains 7.6 per cent below this time last year.

“The total number of homes listed for sale on our MLS® is at its highest level in 10 months, which translates into more options and variety for those looking to buy during the traditionally busy spring period,” Jake Moldowan, REBGV president said.

Residential property sales in Greater Vancouver reached 3,137 in March 2010, a 38.5 per cent increase compared to March 2009, a 4.7 per cent increase over March 2008, and a 12.4 per cent decrease compared to March 2007. The current figure also represents a 26.8 per cent increase compared to the 2,473 sales recorded in February 2010.

“With a sales-to-listing ratio of 23 per cent, we see a healthy balance between buyer demand and seller supply in the marketplace,” Moldowan said.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 20.3 per cent to $584,435 from $485,845 in March 2009. This price is 2.8 per cent above the previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

Coming Marketing Trends

Fri, 16 Apr 2010 15:50:08 GMT

Four Trends That Will Impact Marketing

Touch: From the iPhone and Google Nexus One to the iPad, the coming plethora of touch-tablet computing validates that we are moving away from fixed computer work stations. Along with that, the constructs of using a keyboard and mouse will quickly go the way of the dodo bird. Some are saying that kids today will learn to type on glass, others think that kids will soon be learning to type on air, and that all manipulation and creation of media and information is going to be multi-touch in a simple and intuitive way…think of Tom Cruise in the film, Minority Report. Get ready for the humanization and personalization of hardware as we begin to touch way more than type.
Analytics: Walmart’s success is driven by its data. As the Internet creates multiple touch points where any individual can report and publish to everyone else, like we are already doing with Facebook, Twitter, or blogging… imagine what real-time analytics are going to do for business. Think about how we're going to be pushing well beyond static data into understanding the social side of information as well. What are we talking about? It's not just about knowing who is doing what on our websites, but it will be about knowing who those people are, who they are connected to, how much of an influencer they are and what that could mean to our businesses - all in real time. If you thought we were already drowning in data, prepare to be swamped with valuable insights on top of that.
One-line: You will no longer be "online" and then on your mobile device. It's just one-line. Many businesses still divide how they develop, strategize and execute on the Internet with what's happening in the mobile space. Yes, the iPad is one kind of link between a desktop or laptop and a mobile device, but the bridge is extended even further as all devices become untethered from wires and fixed locations. The "online experience" is just that - something you can experience in front of a big screen at your home or office, or in the palm of your hand. How we adjust our websites for this coming shift (and coupling it to trend #1) is where the rubber will meet the road.
Location-aware: The recent hype and excitement over Twitter and Foursquare is really more about mobile and location-aware online social networks than whether or not Jesse James is actually following one of Tiger Woods' mistresses on Twitter. The ability to not only publish information, but to receive and engage with content based on where you physically are changes everything. From the value of the content while you're "on the ground" to how search, information and referrals are displayed to you based on where you're presently situated. Whether or not Twitter and Foursquare become as irrelevant as Friendster and Second Life is secondary to what these platforms really offer the real estate world - the ability to connect and publish to those who are physically close to us and interested in what we have to sell.

Vancouver March Market Overview

Sat, 10 Apr 2010 00:06:38 GMT

There has been a noticeable increase in real estate inventory in the Vancouver west side market area.

The rise in inventory however is offset by the actual number of sales. This creates a more balanced housing market moving into the traditionally active spring market. Sellers have an incentive to list their homes now before the HST comes into effect in July; while at the same time the small jump in interest rates is motivating Buyers to act before their pre-approved rates expire.

January thru March, 2010 has seen a rise in housing and condo inventory by 38% and actual sales increased by 52% with the condo market up by 45%

The first quarter of 2010 compared to 2009, shows an increase in the average sale price for houses on the west side of Vancouver by 47% and by 30% in condos.

Einsteins Last Words

Mon, 05 Apr 2010 16:35:04 GMT

Albert Einstein died in 1955, having seen his concepts create a new world of understanding during his life. His passing was at a time when the cold war between the Soviets and the Americans was at a point of escalating. Much of the worry of that year, and the decades that followed were with the growing number of nuclear weapons that both super powers were amassing. The creation of the weapon that could effectively wipe out much of life on our planet was due in part to the theories that Einstein had developed.

Albert Einstein was not only a radical thinker, but he also was an amazingly creative communicator. Although his ideas are beyond the understanding of most of us, he was able to demonstrate his ideas using common speak. His description of the speed of light was done by referencing a moving train, while his explanation of gravity and time was done by the mental picture of an elevator.

The context of communication is so very critical. When looking at something as simple as market trend data in Vancouver, the numbers can be skewed to reflect the researcher's bias, or to amplify opposing opinions. Our age is quickly moving forward in the means that we communicate ideas and opinions. Today Twitter is evolving weekly to address the quick fix communication needs of social media. To some the world view has transformed into a series of games...spurred on by a generation that has grown up with video games and virtual reality. Looking for a home in Kerrisdale becomes an extention of gaming and social media in method and mindset.

The language of the landscape is changing, and as Einstein once said, "We can't solve problems by using the same thinking we used when we created them". The notion of communicating value and service is becoming increasingly difficult in a culture and marketplace where information can be accessed quickly and effectively. The answer to meeting the communication demands in the real estate marketplace is not to continue to use the same thinking of even two years ago. REALTORS(r) must find new ways to communicate service and value to the new consumer.

The context of the information is important, and although information is freely and readily available, it must be interpreted properly and effectively in order to best serve the constituents. As Albert observed, "Sometimes one pays the most for the things one gets for nothing."

The hidden costs are often greater than the sticker price. This is why having effective communication is so critical. Understanding the information is more important than having access to the information,

Nothing reflects the need to communicate properly in the right context than Albert Einstein's last words. Before he passed away, he felt the need to share some final thoughts. The only person in the room was the attending nurse. She heard the final words of the greatest thinker in history. Unfortunately, he spoke them in German, a language the nurse did not understand.

The Real Story Between CREA and the Competition Bureau

Thu, 25 Mar 2010 23:23:06 GMT

For some inexplicable reason, the Competition Bureau has been on a witch hunt against the Canadian Real Estate Association for some time now. It may be that someone thought that this highly effective and progressive industry was an easy target. Certainly with the right spin, and with the media on side, it is easy to create an unsympathetic picture based on old charicatures of REALTORS(r).

It is unfortunate that they are attacking one of the truest free market sectors in the Canadian economy. The Real Estate Industry is one of the most competitive industries in North America. Each Brokerage competes aggressively with it's rivals because remuneration is based on performance. Even within an office, the agents compete against each other for Listings and Buyers. Despite this, the Competition Bureau is smearing CREA and it's almost 100,000 members. The media has been allowed to create untrue pictures of what the issues are surrounding the Competition Bureau's concerns.

Meanwhile, the Bureau does not acknowledge the important changes that CREA has made to address those concerns. Changes that the Bureau itself had recommended.

To demonstrate what is really happening click here to read some recent correspondance between CREA and the Competition Bureau...

Unit Sales Down 13.3% in BC in February

Wed, 17 Mar 2010 17:10:45 GMT

The Canadian Real estate Association (CREA) posted recent statistics showing the change between January and February of this year. A total of 42,799 homes were traded last month, down 1.5% from January, as a gains in Toronto were offset by a decline in units sold in Vancouver.

The Winter Olympics were cited as a possible factor in lower sales in the province last month. Unit sales were down 13.3 %. Compared to Ontario's growth of 3.3% during the same period.

Continuing low interest rates could further prompt home resales this spring ahead of new mortgage rules set to take effect in April. The introduction of the harmonized sales tax will also add to the buying mood of the consumer this spring, as buyers seek to purchase before the tax change takes effect.

The average Canadian house price in February rose by 18.2 % from last year.

Currently the most affordable Canadian city for housing is Thunder Bay, Ontario with a February average house price of $142,280, up 23.6 % from a year ago.

The most unaffordable Canadian city for housing continues to be Vancouver, BC with a February average house price of $658,984. That is also an increase in price from a year ago of 22.4%

Most experts agree that the Canadian housing market will be moving to a more balanced market in the fall, while the spring will continue to heat up to answer demand.

The reason your agent wants to see your ID...

Tue, 09 Mar 2010 01:52:55 GMT

FINTRAC fines brokerage $27,000

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has assessed its first fine against a real estate brokerage. HomeLife Effect Realty in Hamilton was fined $27,000 for violating the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

FINTRAC says the brokerage was fined for committing four violations:
- Failure of a person or entity to appoint a person to be responsible for the implementation of a compliance program;

- Failure of a person or entity to develop and apply written compliance policies and procedures that are kept up to date and, in the case of an entity, are approved by a senior officer;

- Failure of a person or entity to assess and document risk; and

- Failure of a person or entity that has employees, agents or other persons authorized to act on their behalf to develop and maintain a written ongoing compliance training program for those employees, agents or persons.

FINTRAC has had the authority to issue administrative monetary penalties in response to non-compliance with the act and related regulations since December 30, 2008. It says penalties are used as a last recourse after other measures to ensure compliance with the law have been exhausted.

“FINTRAC remains committed to working with reporting entities in ensuring compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related regulations,” says the agency in a news release. “The new penalties are a tool to encourage compliance.”

FINTRAC is an independent federal government agency with a mandate to assist in the detection, deterrence and prevention of money laundering and the financing of terrorist activities.

Hang Onto Your Seatbeats!

Fri, 05 Mar 2010 17:42:05 GMT

The indications all point to a very active market for this fall in Vancouver. Following the excitement and energy of a successful hosting of the 2010 Olympic games, Vancouver is poised to experience a gold medal spring in terms of the real estate market in the lower mainland.

Several factors point to continued growth in development, sales activity, and price. Firstly, the market fundamental of supply and demand has never been stronger on the demand side. Vancouver is desirable as a world class city with it's amazing urban amenities. The city is in a natural setting that is second to none in the world. It is nestled between mountains and sea. The incredible landscape also provides for a mild temperature, something unusual for a Canadian city. The forests are lush, with moss and ferns under the canopy of giant spruce and cedar trees. Vancouver is a mountain metropolis surrounded by a rainforest. Following the exposure the area received during the games, inquiries from around the globe have increased, signalling continued demand for Vancouver real estate.

The price of land will continue to climb as long as there is more demand than available supply. Despite the fact that Vancouver is already categorized as "severely unaffordable" in comparision studies between average wage and average house price, the allure of living in this amazing city continues to drive the market.

In order to continue to keep up with the demand, developers seek out new locations for high density housing. Projects are fanning further and further away from the core of Greater Vancouver, ahead of mass transit infrastructure projects. This activity on the development side brings employment and opportunity, which continues to feed the demand for housing.

Sales activity remains strong as baby boomers seek to use the sale of their homes to leverage their retirement plans. Many long time Vancouverites are benefiting from the surge in prices and demand for property in Great Vancouver. This demand has created many new millionaires, who can now consider selling and retiring by downsizing and cashing in on their new found equity.

Real Estate Board Stats During the Olympics

Tue, 02 Mar 2010 22:57:53 GMT

VANCOUVER, B.C. – March 2, 2010

–The Greater Vancouver housing market continued to experience strong demand

from homebuyers and an increase in total property listings in a month where the eyes of the world were focused on the

region.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled

2,473 in February 2010, an increase of 67.1 per cent compared to February 2009 when 1,480 sales were recorded and a 28.6

per cent increase compared to the 1,923 sales recorded in January 2010.

More broadly, last month’s sales totals marked a 7.6 per cent decline compared to the 2,676 sales recorded in February

2008 and were 13.5 per cent behind February 2007 when 2,859 residential sales were recorded on the Multiple Listing Service

(MLS®) in Greater Vancouver.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in

Greater Vancouver increased 19.7 per cent to $581,911 from $486,054 in February 2009. This price is 2.4 per cent above the

previous high point in the market in May 2008 when the residential benchmark price sat at $568,411.

“We don’t know at this point what long-term impact the Olympics will have on our housing market, but we do know that

activity in our market remained steady through all of the excitement and distraction of the last few weeks,” Scott Russell,

REBGV president said.

“In February, for example, 110 sales were recorded on the MLS® in downtown Vancouver. That’s higher than 2009 and

slightly lower than the mid-2000s, which is consistent with data from the overall market. It’s too soon to say whether that’s

an Olympic effect,” Russell said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,606 in February 2010. This

represents a 17.6 per cent increase compared to February 2009 when 3,916 new units were listed, and a 10.5 per cent decrease

compared to January 2010 when 5,147 properties were listed on the MLS® in Greater Vancouver.

At 11,346, the total number of property listings on the MLS® increased 11 per cent in February compared to last month

and declined 21 per cent from this time last year.

“Two months into 2010, we see the total number of homes listed for sale on the rise and demand in the market strong, but

less frenzied than we saw in the latter part of 2009,” Russell said.

Sales of detached properties increased 67.5 per cent in February 2010 to 983 from the 587 detached sales recorded during

the same period in 2009. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties

increased 22.5 per cent from February 2009 to $800,796.

Sales of apartment properties in February 2010 increased 65.2 per cent to 1,074 compared to 650 sales in February 2009.

The benchmark price of an apartment property increased 17.3 per cent from February 2009 to $390,899.

Attached property sales in February 2010 are up 71.2 per cent to 416, compared with the 243 sales in February 2009. The

benchmark price of an attached unit increased 16.2 per cent between Februarys 2009 and 2010 to $495,496.

It's all done

Mon, 01 Mar 2010 01:41:33 GMT

Well...after a nail biter of a hockey game...the Winter Olympics of 2010 are almost done. The special Olympics will be taking place over the next few weeks...but the primary bulk of the events have been completed. Canada has realized its potential...the pride in the nation is amazing...and we have some amazing and wonderful memories to keep in our minds and hearts from this event.

Over the last few days it seems as if the city of Vancouver has come alive with the fever of the games. I have seen people on the street at all hours of the day in Canadian gear...face painting and the red and white garb...today when Canada won the gold medal game in hockey, the response was unmistakable on the streets. People were honking their car horns and singing the national anthem...I have never experienced anything like the unity of the city during these last few days.

Last night we went to the olympic village area for the last time to bid farewell to the event and the atheletes. The crowds were so wonderful and energized that we didn't want to leave.

In terms of real estate in Vancouver during this period of the games...it does seem that there was a distraction from the games that impacted on the number and scale of the deals in the Select office, but it looks like all of the slight dip will be over compensated for with the increase in business that will be following in the coming months!

The Final Week of the Games

Wed, 24 Feb 2010 00:06:41 GMT

As the Winter Olympic Games of 2010 begin to wind down in Vancouver, the lasting impact and impressions will begin to make themselves clear. Most of our agents have not experienced any obvious slow down in their business. In fact one agent was telling me that she put together 3 deals last weekend, at the height of the Olympic Festivities.

Real estate activity can defy predictablility often. The early fears of a negative impact on activity and marketability of properties during the Games, were simply proven to be unfounded. While the media began to call the Vancouver Games the "glitch-olympics", the spirit and excitement on the streets kept building. This final week of the games have turned all the negatives around...in fact, it even began snowing on Cypress Mountain! While Canada may not have achieved the medal count of The Turin Games, we have accomplished a far more important goal. We have created an atmosphere of fun and excitement as good hosts to the world.

Vancouver is a world-class city in a setting that can leave a visitor breathless in awe of the natural beauty. We welcomed the world, and showed what makes Canada, and Vancouver special. As long as there are more people wanting to move to Vancouver than there are suitable properties on the market, our economic growth will continue. After the Sydney Games, the real estate agents there noted a spike in activity for the following 2 years. Now that the atheletes and fans from around the world have been exposed to the magic of Vancouver, there is no reason to believe the same effect will not take hold.