Saturday, December 31, 2011
Friday, December 30, 2011
From 2000 to 2010, the average value of a Canadian home doubled, rising to $339,030 from $163,951.
Channel surfing on any given night, it’s easy to think home renovation and real estate flipping is an abiding national obsession. Turns out, it is. A new study of residential construction and renovation over the past decade shows a doubling in the value of a Canadian home. Across 16 major markets — from Toronto becoming the continent’s condo capital to Regina’s nation-leading price surge; from Hamilton’s industrial rejuvenation to Vancouver bungalows being flattened by large custom builds — Canadians’ love of their homes is transforming the landscape, with rises highest in Western Canada, according to Housing Evolution, a report by RE/MAX real estate. Adrian Humphreys notes the trends and highlights:
ANDREW BARR / NATIONAL POST SOURCES: TORONTO REAL ESTATE BOARD, CANADIAN REAL ESTATE ASSOCIATION, OKANAGAN MAINLINE REAL ESTATE BOARD, ST.JOHN’S REAL ESTATE BOARD BIG BUSINESS
From 2000 to 2010, the average value of a Canadian home doubled, rising to $339,030 from $163,951. The money involved is huge, with the value of residential building permits issued across Canada in the past decade pegged at $340-billion. But even that huge figure is eclipsed by the cash pushed into home renovations in the same time period — estimated to be $450-billion. The TV shows know a good market when they see it.
PRAIRIE GOLD
Regina topped the list of surging housing prices. The average price of a home rose 173%, climbing to more than $258,000 from $94,518 in 10 years. Much of the increase comes from new construction, with building permit values exceeding $1.6-billion, triple the amount in the preceding decade, according to the report. And it is not abating. The first half of this year saw $172-million in building permit value being issued. The rise has hit renters hard, with the city’s tenants shelling out rents approaching those in much bigger cities. Edmonton saw the second highest price appreciation (165%), followed by Saskatoon (163%) and Winnipeg (158%).
FUTURE HOT SPOT
Winnipeg is seen as having the biggest potential for future growth, as it leads the nation with having the largest stock of older homes. More than half of the city’s owned housing was built before 1970. The report points to increasing building permit values in recent years, the city’s 25-year strategic plan and the rejuvenation from the return of the NHL as boosting future new construction and renovation — and expected rising prices.
RENEWAL
Hamilton is an “ongoing project in renewal,” says the report, making the area an “underestimated up-and-comer.” The total value of residential building permits nearly doubled in the decade, exceeding $6.5 billion. The attraction to Hamilton has been fuelled by plenty of large, solidly built detached homes that are increasingly unattainable in Toronto, less than an hour away. The city has also been pushing the redevelopment of its brownfields for residential and mixed use projects and condos have been enthusiastically embraced, representing 24% of housing sales.
Printed and distributed by NewpaperDirect | www.newspaperdirect.com, US/Can: 1.877.980.4040, Intern: 800.6364.6364 | Copyright and protected by applicable law.
Thursday, December 29, 2011
I just finished uploading this Condo for sale, 701 1177 HORNBY Street, Vancouver West, British Columbia
Thursday, December 22, 2011
And the winners of the 2011 Referral Contest are?
Thank you everyone for your referrals in 2011.
We had an amazing year of being able to help so many clients realize their goals of buying or selling, through your referrals. Without your support we would not have had the type of business and company that we have. Thank you from the bottom of our hearts for all your support.
The winners are:
$1000 Dollars Cash Winner is: Heather Maciver
2 Canucks Hockey Tickets Winner is: Anita Wood
$15 Starbucks Gift Card, mug & Lindt Chocolates Winner is: Heather Maciver
$25 Itunes Gift Card & Turtles Chocolates Winner is: Mohammad & Syeda Rahim
$20 Roots Gift Card & Turtles Chocolates Winner is: Rob Weiler
$25 Earls Gift Card & Lindt Chocolates Winner is: Carolina Diaz
$20 Winners Gift Card & Turtles Chocolates Winner is Anita Woods
$20 Winners Gift Card & Turtles Chocolates Winner is: DeeDee & Brad Wray
Wine Carafe & Wine Winner is: Lindsay Wolfenden
Wine Carafe & Wine Winner is: Lincoln Chan
Wine Carafe & Wine Winner is: Leon & Devon Poznanski
$50 Cara Foods Gift Card & Lindt Chocolates Winner is: Leon & Devon Poznanski
$25 Cobs Gift Card & Lindt Chocolates Winner is: John Lam
Arbonne Ginger Citrus Body Butter Winner is: Leon & Devon Poznanski
$25 Earls Gift Card & Lindt Chocolates Winner is: Kyle & Sierre Deverill
Movie Passes & snacks for 2 adults Winner is: Brad & Carrie Meagher
Tool Bag & 50 tools Winner is: DeeDee & Brad Wray
$100 Petro Gas Gift Card & Lindt Chocolates Winner is: Jen Geddes
$25 White Spot Gift Card & Turtle Chocolates Winner is: Vanessa Silverberg & Jack Orr
Bath & Body Gift Basket Winner is: Brad & DeeDee Wray
Movie Passes & snacks for 2 adults Winner is: Ryan Corpuz
$25 Itunes Gift Card & Turtles Chocolates Winner is: Ryan Corpuz
Arbonne Ginger Citrus Body Butter Winner is: Marcia Currie & Kate Hiscox
Stay tuned for the launch of the 2012 Referral Contest. It will be bigger and better with prizes drawn in front of a live audience, culminating at our December 2012 Client Appreciation Party, where you are all invited!
--Sincerely, your friend in the real estate business,
Roland Kym
Remax Select Properties
Cell : 604 970-0393
Office: 604-737-8865
Fax : 604-737-8512 www.rightpricedrealty.com http://twitter.com/#!/RPRVancouver http://rightpricedrealty.posterous.com/
Wednesday, December 21, 2011
Could you live in less than a 300sqft apartment in DT Vancouver? Rent is $900/month
Sincerely, your friend in the real estate business,
Roland Kym
Remax Select Properties
Cell : 604 970-0393
Office: 604-737-8865
Tuesday, December 20, 2011
Happy Channukah to all my Jewish friends!
Sincerely, your friend in the real estate business,
Roland Kym
Remax Select Properties
U.S. Housing Starts Jump 9.3%, to Highest in Year.. what do you think will happen in US Real Estate next year?
Following is an article from Bloomberg speaking to a huge increase in housing build starts of 9.3%. After speaking with my many American associates over the past year, regarding the mass amount of pending-foreclosures not-yet initiated by the banks... I am surprised about this report. Perhaps the builders have just spent too much time on the side-lines and the cost of developing new homes is less expensive that not doing anything? Roland with Remax Select Properties
“Builders broke ground in November on more houses than at any time in the past 19 months, led by a surge in multifamily units, signalling the market is stabilizing heading into 2012.
Starts increased 9.3 percent to a 685,000 annual rate, exceeding the highest estimate of economists surveyed by Bloomberg News and the most since April 2010, Commerce Department figures showed today in Washington. Building permits, a proxy for future construction, also climbed to a more than one-year high.
Work on multifamily units like apartments and townhouses is growing as the rental market improves. Single-family-home construction may be starting to strengthen as lower home pricesand borrowing costs near record lows draw in some buyers, even as builders face competition from existing houses as another wave of foreclosures throws more marked-down properties on the market.
“It’s a solid report,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, who had the highest forecast in the Bloomberg survey. “For months we’ve been flagging the strength in multifamily construction, but now we’re starting to get signs that single-family is pulling itself off the canvas.” “
Source: Bloomberg
Monday, December 19, 2011
B.C. housing starts expected to rise next year: CMHC
B.C. housing starts are expected to buck the national trend and grow 7.1 per cent in 2012, according to a report released Friday by Canada Mortgage and Housing Corp.
“Overall growth in construction levels will be supported by population-driven housing demand and consumers will benefit from relatively low mortgage interest rates,” the national housing agency's fourth quarter Housing Market Outlook said.
Nationally, housing starts are forecast to stabilize into 2012.
The report said that single-detached starts in B.C. picked up pace in the second and third quarters of 2011, but will remain below their 10-year average level as a well-supplied existing home market holds back starts.
But job creation and population growth will boost single-detached starts in 2012, with 10,500 homes forecast to get underway in 2012 compared to 8,800 in 2011.
Multi-family home starts are forecast to reach 18,000 next year, up from the 17,800 units expected for 2011, a reflection of demographic trends such as an aging population and affordability concerns and transportation considerations, as condominiums tend to be cheaper and located near major transportation routes.
The report said the pace of resales will pick up gradually during 2012, with sales of existing homes forecast to increase to 81,900 transactions in 2012, from a projected 77,200 transactions in 2011.
Resale market conditions are expected to remain balanced next year, with the average price forecast to be $564,900 in 2012, down one per cent from the 2011 projected price of $570,500.
Nationally, housing starts are forecast to be about 191,000 units in 2011, dropping slightly to 187,000 units in 2012.
Existing home sales will be about 450,000 units this year and about 459,000 units in 2012.
The average price is forecast to be about $364,000 in 2011, and $368,000 in 2012.
Friday, December 16, 2011
Another Testimonial of Our Great Service at Right Priced Realty Team
It was a pleasure working with Roland. He is very organized and maintains a high level of professionalism. I was impressed with his knowledgeable about the Vancouver Real estate Market and valued the advice and guidance he provided. He is person of integrity and would highly recommend him to my family and friends. –Kashmir Hare
Thursday, December 15, 2011
New regulations for Drywall disposal.
Plan on doing some upgrades or renovating in your home?
Was your home constructed before 1980?
Worksafe BC has decided to develop and implement an Asbestos Exposure Control Plan (ECP). This ECP will specifically target the joint compound used in the initial application of drywall in pre 1980 built structures.
New requirements will include:
- All renovation and demolition loads will require documentation illustrating the construction date of the structure that the material is being removed from.
- If the structure was built after 1980, documentation illustrating year of construction and that it is essentially Asbestos free.(regarding joint compound)
- If the building was constructed before 1980, required CERTIFIED LAB analysis proving the material to be “Asbestos free”.
- New drywall scrap is exempt.
Accepted documentation could consist of any of the following:
- Original building documents
- Copy of the building permit for the present job
- Copy of demolition permit (or a copy of the notice of project)
- Dates of building construction can usually be obtained from the Building department of your local Municipal Office. You will require either the “Folio Number” or the “tax roll number” from your property taxes, or simply the site address.
Currently New West Gypsum Recycling is the main depot for disposal of drywall in the lower mainland. Wastech facilities deliver there scrap drywall to NWGR.
NWGR is requiring this documentation for all loads. At the present Wastech is not, but it is coming in the near future.
What can you expect?
Contractors proposing to do drywall removal may refuse to remove drywall or request a remediation Asbestos removal company to do so. Unfortunately this may add additional expenses to a project.
For the home owner?
If the home owner is removing drywall then these documents will be required.
What happens if the drywall compound does contain Asbestos? What then?
Asbestos is accepted with the prior notification at the Vancouver Landfill:
5400 72nd St, Delta. (604-940-3213).
Link for Wastech brochure. http://www.wastech.ca/uploads/Wastech%20asbestos%20info_May2011.pdf. This brochure will also provide contact information for Asbestos testing Laboratories.
Homeowners should be prepared for these new changes.
In Next months newsletter, water Ingress.
Information supplied by AusCan Home Inspections. wwwauscanhomeinspections.com.
Darryl Bailey RHI 604-671-5528.
Tuesday, December 13, 2011
I just finished uploading this House for sale, 2980 6TH Ave E, Vancouver East, British Columbia
Spacious renovated 3 level house with immaculate views of mountains & city. 3 bedrooms and 2 full bath up. 3 suites with separate entrances (two bachelor suites and one 2 bedroom suite) in basement to help you pay out your mortgage. Situated in a quiet neighbourhood, close to school, T&T supermarket, public transit. Solid built character home with separate 2 car garage. A must see.
Monday, December 12, 2011
Why are Happy People Happy? 12 steps to help you get more happiness
by Jacob Sokol of Sensophy
“I’d always believed that a life of quality, enjoyment, and wisdom were my human birthright and would be automatically bestowed upon me as time passed. I never suspected that I would have to learn how to live - that there were specific disciplines and ways of seeing the world I had to master before I could awaken to a simple, happy, uncomplicated life.”
-Dan Millman
Studies conducted by positivity psychologist Sonja Lyubomirsky point to 12 things happy people do differently to increase their levels of happiness. These are things that we can start doing today to feel the effects of more happiness in our lives. (Check out her book The How of Happiness
I want to honor and discuss each of these 12 points, because no matter what part of life’s path we’re currently traveling on, these ‘happiness habits’ will always be applicable.
- Express gratitude. – When you appreciate what you have, what you have appreciates in value. Kinda cool right? So basically, being grateful for the goodness that is already evident in your life will bring you a deeper sense of happiness. And that’s without having to go out and buy anything. It makes sense. We’re gonna have a hard time ever being happy if we aren’t thankful for what we already have.
- Cultivate optimism. – Winners have the ability to manufacture their own optimism. No matter what the situation, the successful diva is the chick who will always find a way to put an optimistic spin on it. She knows failure only as an opportunity to grow and learn a new lesson from life. People who think optimistically see the world as a place packed with endless opportunities, especially in trying times.
- Avoid over-thinking and social comparison. – Comparing yourself to someone else can be poisonous. If we’re somehow ‘better’ than the person that we’re comparing ourselves to, it gives us an unhealthy sense of
Saturday, December 10, 2011
What is a pre-Listing Inspection?
A Pre-listing inspection is performed before the property is listed on the market. There are numerous advantages to all parties involved:
The advantages of a Pre-Listing Inspection:
Advantages to the seller:
• The seller can choose a licensed CAHPI Professional Home Inspector rather than the buyers choice of inspector, family member or contractor.
• The seller can schedule the inspection at their convenience.
• It may alert the seller of any possible issues that they may not be aware of.
• The seller can assist the inspector during the inspection, (ie if any furniture has to be moved). This tends to allow the inspector to fully inspect any areas of possible concern providing greater disclosure.
• The report can help the seller realistically price the home if issues exist.
• A Pre-Listing inspection reveals concerns ahead of time which:
1:May make the home show better.
2:Gives the seller time to repair defects or obtain competitive quotes for repairs.
3:Allows the seller to attach repair estimates or the paid invoices to the inspection report.
4:Can remove over inflated buyer procured estimates from the negotiation.
5:Can reduce 11th hour negotiations.
6:Allows the inspector to provide the home owner, realtor, potential buyer with additional informational literature, web links etc for any materials or areas of concern in the home (ie Vermiculite, Knob and tube wiring, etc.)
• The report may alert the seller of any immediate safety issues found, before agents and visitors tour the property
• The report provides a third-party, unbiased opinion to offer potential buyers.
When next selling your home, consider a Pre Listing inspection
Information supplied by:
Darryl Bailey.RHI Level 1 Thermographer
Auscan Home Inspections.
Ph: 604-671-5528
Friday, December 9, 2011
Reduced $40,000 to $549,000, Great updated home in Surrey
Wednesday, December 7, 2011
I just finished uploading this Condo for sale, 411 2511 QUEBEC Street, Vancouver East, British Columbia
OnQue by Rize Alliance is a collection of 48 homes situated in the popular Mount Pleasant Neighbourhood. Move in Today and enjoy the luxuries of owning a new home without the wait. Every home at OnQue includes stainless steel appliances, quartz counter tops, laminate-walnut flooring, underground parking and storage (Plan B2, 666 sq ft).
Monday, December 5, 2011
Price Reduced by $40,000 & Open House this Saturday (1pm to 4pm)
We are proud to announce that this Dec 10th, 1:00 PM to 4:00 PM we will be hosting an Open House at 10121 127B Street in the Cedar Hills neighborhood, North Surrey. This is an opportunity to visit this excellent House for sale in beautiful Cedar Hills.
Please come with any questions you may have. In the meantime you can take a virtual tour of this Cedar Hills House for sale.
As always please do not hesitate to give me a call at 604-737-8865 if I can answer any questions before the open house, or if you would like to book a private showing.
Roland Kym
Remax Select Properties
Friday, December 2, 2011
We have the Best Clients!! - Another Testimonial:
"After searching in Vancouver’s highly competitive realestate market for a one-bedroom condo for a full year, I began to wonder if Iwould ever find the right place for me. With a new year came a fresh start andI was fortunate to have been recommended Roland by previous happy clients. From our first meeting where we reviewed my priorities for a condo, I knew that he was the realtor for me. Very organized, professional, and friendly, I felt that he had my best interest in mind. Roland’s positive attitude reassured me throughout the sometimes tedious process of searching for the right condo. He was also accommodating to a shift-worker’s difficult schedule, which is not always the case. In four months I found ‘the one’ and every time I walk throughthe door I am happier with my choice. Roland’s contribution did not end on the closing date. He has been helpful with recommendations for painters and contractors, to help make the space my own. Whenever discussions of real estate comes up, I am always quick to recommend Roland as an agent."
- Lisa 2011
Sunday, November 27, 2011
Wow... look at the rain outside this Grey Cup Sunday.. here are the Top 10 ways to Deal with Water Damage
What’s at stake?
When it comes to property damage, water is one of the worst culprits. Whether it’s a leaking roof, a sewage back-up or simply a pinhole in a pipe, water damage can cost you a lot of money and cause you a lot of headaches. If left unattended, water damage can cause serious structural problems and create toxic moulds; these moulds can lead to health problems such as allergies and lung infections.
What to do if you discover water damage;
- First and foremost, shut off any interior water source that may be causing the problem.
- Don’t turn on any electrical switches until your electrical system has been checked.
- Open all windows in your home to help accelerate the drying process.
- Check water-soaked ceilings to ensure that they won’t collapse under the weight of the water.
- Puncture holes in the ceiling to release excess water. Be ready with a bucket.
- Move household items to areas where they will not sustain further damage.
- Remove excess water from fragile surfaces such as wood and upholstery.
- Remove wet carpets and contaminated materials from your home. Drying these inside will only cause more moisture and pose health risks.
- Call flooring experts to see if your floors and carpeting can be cleaned or repaired.
- Avoid using electrical appliances, such as vacuum cleaners, to clean up water. Mop up as much of it as possible.
- Call your insurance company to make a claim.
Maintenance first
Home maintenance and proper installation/construction are the keys to preventing water damage in the first place. After all, your home is built to prevent water damage. Potential damage can be minimized with routine inspections and repairs. When in doubt, hire a professional to do the inspection. Keep in mind that when you act quickly to repair any damage, you can avoid problems such as mould, which is not covered by your insurance policy.
Saturday, November 26, 2011
Wednesday, November 23, 2011
GOOD or BAD? Do you agree that the repeal of the HST has caused more uncertainty among property buyers?
The death of a sales tax is usually cause for celebration. But if you’re from British Columbia, it depends what side of the fence you’re on.
In August, British Columbians voted to repeal the controversial HST in a referendum that had 54.7 per cent of voters in support of rescinding the tax. But with 45.3 per cent voting to keep the tax, the divide was more evenly split than one might think.
The province’s business community, including developers, builders and construction companies, loved the HST because it spread the tax burden to include consumers and veered away from traditional means of taxing business and income.
Given the uncertain economy, business leaders fear that B.C.’s taxes will continue to provide less instead of more in terms of jobs and economic stimulation.
The business community’s concerns are not unfounded. Burnaby realtor Luigi Frascati says the majority of new home and condo buyers are opting to delay buying until March 2013, when the HST is officially repealed and replaced by the previous GST/PST system. Frascati himself happens to be one of those buyers.
On the search for a two-bedroom housing unit, Frascati fully intends to hold off buying until the year after next. “I am one of those buyers,” says the Realtor® who works for Sutton Centre Realty.
While the HST does offer a rebate program on new home sales up to $525,000, Frascati believes the rebate is virtually pointless. “Depending on where you go in this town, a half-million dollars doesn’t get you much of a condo these days, even less if you are looking for a two-bedroom unit like I am.”
According to Frascati, there are a few developers in B.C. offering incentive programs intended to entice buyers not to delay their purchases, but he says the fact is that most people are holding off pending the announcement of a structured re-introduction program on the part of the province.
That may be even more pronounced within the market for higher priced homes and condos, where a buyer would stand to save significantly by waiting until 2013.
RE/MAX real estate agent Sam Wyatt believes the real result of both the implementation and the rescission of the HST is how it will affect the psyches of buyers in British Columbia. Buyers may now think that if they wait till 2013, the HST will no longer apply and they will pay less for their new home. “They may well pay less,” warns Wyatt, “not because they don't have to pay HST but rather, because of the slumping sales as a result of everyone holding off buying.”
Vancouver Realtor® Mike Stewart was a fan of the HST because it reduced costs for developers so he’s disappointed to see it go. He doesn’t think its repeal will have any impact on Vancouver’s condo market. “It was a great tax,” he says. “I was a fan but it was so poorly communicated to the public. The government basically did something that made sense for the business elite of B.C. They always get their pound of flesh, but the general public didn’t understand it. They thought the repeal of the HST meant there would be no taxes.”
Frascati also takes issue with how the tax was presented. He believes the government did a poor job in introducing the new tax, choosing to force it down taxpayers’ throats rather than present it within a forum that promoted public debate. “I think it might have had a different reception then,” says Frascati. “Perhaps taxpayers might have settled for a 10 per cent HST, and perhaps the threshold for the rebate on the purchase of real capital assets could have been set at a higher level than the meagre $525,000.”
The uncertainty surrounding the repeal of the HST is doing more harm than good for the real estate industry, according to a panel of real estate industry experts who spoke last month at a Vancouver Board of Trade event.
Eugene Klein, president-elect of the Real Estate Board of Greater Vancouver told those in attendance that buyers, especially the under-25 group, are sitting on the sidelines. “It’s also affecting home renovation projects with HST on them because consumers don’t know what to do,” he said. Ward McAllister, president of Ledingham McAllister Properties, said he has been “literally begging” the provincial government for transitional rules since the vote to repeal the HST.
“What is amazing to me is that it took the government three days to bring this new tax in and now they are telling us it is going to take up to 18 months to unravel,” said McAllister. “This is really hurting us in the new home business just because of the uncertainty.” Klein and McAllister said they are seeing developers taking on a portion, or even all, of the HST on their product to try and remove that uncertainty for potential buyers.
Despite the worries about the repeal of the HST, housing professionals on the panel predict low interest rates will hold steady into the foreseeable future, which will translate into continuing sales. Added to real estate’s affordability factor, was immigration numbers that show approximately 52,700 immigrants will move to British Columbia this year. Of that total, some 42,000 will move into the Metro Vancouver area, meaning that the need for new housing will remain strong.
Source: PRoperty WireMonday, November 21, 2011
Stable outlook for Canada’s housing market in 2012
In its fourth quarter outlook, CMHC predicts the average price will increase 1.2% from $363,900 in 2011 to $368,200 in 2012. Sales will rise from 450,100 units in 2011 to 458,500 in 2012, up 1.9%. Housing starts, however, will drop 2.2% from 191,000 in 2011 to 186,750 in 2012, according to the CMHC outlook. Global economic concerns have resulted in growing fears about how that might impact Canada’s market, but CMHC Deputy Chief Economist Mathieu Laberge said the country’s real estate market will remain strong.“Despite continued uncertainty in the global economy, Canada’s economic fundamentals remain positive, particularly with respect to interest rates, employment and immigration,” said Laberge. “These factors will continue to support Canada’s housing sector in 2012.” In Vancouver and Abbotsford, where average-price growth has topped any other Canadian city, the average will gain 3.2% in 2012, on top of 5.3% gains forecasted for this year. Unemployment there will drop from 7.9% to 7.5%, said the CMHC report. Sales activity, however, will start to tail off from the 7.3% growth in 2011 to 3.3% growth in 2012. The market will likely continue to attract builders, with housing starts expected to rise 9.4% in 2012 and building on 5.1% gains in 2011 over 2010.In the Greater Toronto Area, apartment starts are expected to be 37.5% higher in 2011 over 2010, totalling 18,200 stats in 2011. Those numbers won’t slow in 2012, as apartment units will gain another 1.6% to reach 18,500 in 2012. Overall housing starts will drop 2.3% in Toronto, CMHC predicts, largely based on a 14.1% drop in single-detached starts, from 8,500 in 2011 to 7,300 in 2012. Toronto price gains will also slow, from 4.3% gains in 2011 to 1.4% gains in 2012 to an average of $457,500
Friday, November 18, 2011
Did you know...
Natural light isn’t just more pleasant than artificial light, it is also better for your health. Sunlight stimulates the production of Vitamin D in your body, which is used to help maintain bone density. In addition, sunlight can improve mood. So, whenever possible, open the curtains in your home and let the light shine in!
Thursday, November 17, 2011
PwC Emerging Trends in Real Estate 2012 (Canadian Edition)
For 2012, U.S. real estate players must resign themselves to a slowing, grind-it-out recovery following a period of mostly sporadic growth, confined largely to “wealth island” real estate markets—the primary 24-hour gateways located along global pathways. A handful of cities also should continue to benefit from expansion in locally based technology- and energy-related industries. Otherwise, most commercial markets have stabilized, but will find marked improve- ment in occupancies and rents relatively elusive. Despite some stepped-up bargain hunting, capital generally will continue to avoid commodity real estate in most secondary and tertiary cities. Among the property sectors, only apartments will score especially well: demographic trends and the aftermath of the housing bloodbath combine to increase and sustain demand for multifamily units.
Enduring economic doldrums and the absence of dynamic jobs generators hamstring overall demand, weighing on real estate markets. While the nation’s lackluster employment outlook delays filling office space, the related drag in consumer spending compromises growth in retail and industrial occupancies and rents. Interviewees uniformly struggle to identify new employment engines: competition from overseas markets, technology gains, government and personal debt loads, an aging population, and global financial breakdowns all combine to stanch wage growth and hiring. As a result, businesses that are focused on squeezing profitability out
of productivity gains and families forced into belt-tightening use less square footage. “The Era of Less” forecast in last year’s Emerging Trends takes firm hold. Housing markets continue to founder in widespread borrower distress. Many cash-strapped, prospective buyers can meet neither stricter credit requirements nor higher equity hurdles. Casting a further pall on respondent outlooks, U.S. government disarray breeds uncertainty about policy affecting business and investment decision making.
Return expectations continue to ebb, although well-leased core real estate in leading markets will continue to produce solid single-digit income- oriented returns. Opportunistic investors ratchet down forecasts; even projections of returns in the midteens look like a stretch as risk increases from squirrely supply/demand fundamentals. Buying sentiment declines as selling interest increases. Investors who bought at or near market bottom in 2009 and 2010 consider cashing in some gains. Many players back off from bidding on trophy properties in better markets, fearing that pricing is outpacing the potential for recovery in net operat- ing incomes. Cap rate compression has ended; a leveling off is expected, with possible upticks for some property sectors in certain markets.
Most developers and homebuilders will twiddle their thumbs in ongoing extended hiatus; without evident demand drivers, construction lend- ers hold back funding on most projects, except for multifamily development. Expect a ramp-up in apartment development across many markets justified by plunging vacancies and continuing rent increases. When the odd new office building goes forward, developers likely will employ green technologies and concepts; tenants begin to insist on cost-saving, energy-efficient systems.
Shaken by stock market declines and anemic bond yields, investors gravitate toward equity real estate, but grow somewhat unsettled in the face of limited property investment opportunities. “Face it: real estate doesn’t offer enough growth poten- tial to satisfy” the demand, says an interviewee. Although debt capital remains undersupplied, lenders and government regulators work hard to avoid a refinancing crisis with hundreds of billions in commercial mortgages maturing over the next three to four years. Well-capitalized borrowers and solid, revenue-generating properties have no trouble obtaining financing, while lenders and special servicers will continue to extend and pretend as long as borrowers on less-stable assets can pay something out of cash flows. Foreclosures will increase, but at a relatively restrained rate given the number of still-troubled properties.
The top investment markets remain the usual suspects, led by the 24-hour global gateways— Washington, D.C., San Francisco, New York City, Boston, and Seattle. Austin, the moderately sized Texas capital, sneaks into the number-two spot on the survey, benefiting from dynamics created by its large university, the local tech industry, government jobs, and regional energy-based economy. Houston and Dallas also solidify rankings off their oil and gas businesses and relatively strong jobs advances. Other tech- and/or energy- related markets scoring well include San Jose, Denver, and Raleigh-Durham.
Among property sectors, everybody wants apartments. Living smaller, closer to work, and preferably near mass transit holds increasingly appeal as more people look to manage expenses wisely. Interest cools on offices, especially sub- urban office parks: more companies concentrate in urban districts where sought-after generation-Y talent wants to locate in 24-hour environments. Investors continue to place bets on high-ceiling warehouses in the gateway ports and around international hub airports. And East Coast and Gulf Coast ports vie to attract the most new ship- ping traffic coming through a widened Panama Canal in 2014. Winning cities could transform into major distribution sites. Shopping center owners continue to face incursions from internet retailing: fortress malls and infill grocery-anchored centers consolidate business at the same time that older regional malls and fringe strip centers appear to lose ground. The hotel recovery begins to flag: good news concentrates in the prime business traveler/tourist gateways and in middle-market brands without food and beverage.
The two largest Latin American real estate markets head in different directions. Brazil matures into more of a core play, especially in Rio de Janeiro and São Paulo, where vacancies in top properties barely register and condo prices com- pete with New York City’s best residential districts. Investors shy away from Mexico as drug violence takes an unfortunate toll.
Wednesday, November 16, 2011
RPR's October Facebook Contest Winner is Kristina Barck
Congratulations to Kristina Barck for winning our October Facebook Contest.
You just won a $25 Cobbs Gift Card.
Thank you for supporting us and good luck to everyone else for next months draw!
Home Sales Climb Higher Outside Vancouver
Vancouver, BC – November 15, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province rose 6.5 per cent to 5,865 units in October compared to the same month last year. The average MLS® residential price was up 2.6 per cent to $535,695 last month compared to October 2010.
"BC home sales rose three per cent in October compared to September on a seasonally adjusted basis," said Cameron Muir, BCREA Chief Economist. "While consumer demand in Vancouver edged lower last month on a year-over-year basis, strong increases were recorded in the Fraser Valley, Kamloops, Kootenay, the North and on Vancouver Island."
"Total active residential listings in the province declined by 3,360 units in October from September. However, active listings were up 6.9 per cent from October 2011," added Muir. "Market conditions remained slightly in favour of home buyers last month."
Year-to-date, BC residential sales dollar volume increased 16.8 per cent to $38 billion, compared to the same period lastyear. Residential unit sales increased 3.5 per cent to 66,922 units, while the average MLS® residential price rose 12.9 per cent to $566,925 over the same period.
Source: BCREB
