“One of the things I tell people who are buying (homes) is you are playing both offence and defense,” says Real Estate Investment Network president Don Campbell. ›› p.2
July 22, 2010
Summer time, and homebuying is easy
likely find it helpful to educate themselves about what is available in the Metro Vancouver area. The Real Estate Investment Network, one of Canada’s leading real estate research, education, and consulting organizations, does in-depth research based on the latest statistics, economic and social trends. Its latest report is an analysis of key
It’s a great time to house-hunt for a new home in B.C. According to the B.C. Real Estate Association, residential sales in the province declined by 23 per cent to 7,722 units in June compared to the same month last year. On a seasonally adjusted basis, residential sales posted to the industry’s listing service declined by five per cent from May to June this year, but the average Multiple Listing Service price climbed by eight per cent to $499,908 in June compared to June 2009, says the BCREA. But slower sales can be good news for homebuyers. “Market conditions Cameron Muir have shifted from balanced conditions at the start of the year to a buyers’ market this summer,” says BCREA chief economist Cameron Muir. In June, there was 9.3 months of supply on the market given current Gregory Klump sales activity, up from 5.6 months in January 2010. “Tighter credit conditions for homes with secondary suites and low-equity homebuyers have moderated consumer demand,” Muir notes. Year-to-date, B.C. residential sales dollar volume increased 31 per cent to $21.4 billion, compared to the same time last year. Residential unit sales rose 17 per cent to 42,343 year-to-date, while the average MLS residential price climbed 13 per cent to $504,281 over the same period. Residential sales declined across Canada
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Maple Ridge Mayor Ernie Daykin welcomes homebuyers to his city, which is a fantastic place to invest in real estate, according to recent reports. Martin Knowles photo
Invest in the best: beautiful B.C. Metro Vancouver houses hot spots for real estate investment MAGGIE CALLOWAY A family home is always a good investment. A home provides a focus for the family, it provides security of place for the children and, equally important, it grounds the family in the community.
For years, many homeowners have treated the family home as a cash cow. Buoyant real estate markets over the past decade, coupled with low mortgage interest rates, made real estate gurus of many Metro Vancouverites. What some of these ‘gurus’ lost sight of was what the family home should represent: a family dwelling, a refuge, a shelter from the ups and downs of daily life. However, those who are in the market for a family home that they will live in, will
2 • New Local Home | July 22, 2010
Researching before buying can be helpful CONTINUED FROM P.1
economic fundamentals for both investors and potential homeowners throughout North America. REIN president Don Campbell says it is important for potential homebuyers to conduct research on every municipality in the Metro Vancouver area, if they are considering purchasing a home in the region. “House prices in Vancouver are high and will stay there in the foreseeable future but we shouldn’t paint the whole area with the Vancouver numbers,” Campbell says. “If a buyer wants to live in Vancouver, it is a financial decision ... you have to be ready to make a financial sacrifice and if that’s the lifestyle you are looking for it doesn’t get any better than that in Canada. If you are raising a family with an average income and you want a little bit of dirt, you do have to step outside Vancouver and look at the outlying regions.” A recent REIN report that looks at the top investment towns in B.C. outlines the best places to invest in real estate in the province, and Maple Ridge/Pitt Meadows came in second, right behind Surrey. Maple Ridge is also the fifth-best place to invest in real estate in Canada, according to REIN. Other Metro Vancouver cities that made the top 10 provincial list include Abbotsford (third) and Vancouver (ninth). According to the provincial report, B.C. is still poised to be one of the country’s
Real Estate Investment Network president Don Campbell says homebuyers should research Metro Vancouver municipalities before purchasing, and make decisions based on the kind of lifestyle they’d like to live – and on budget. Martin Knowles photo
economic leaders in 2011 and 2012 as the economy finds its post-recession footing and begins to create jobs. These reports are also of particular interest to the real estate investor, but homeowners can gain great insight into where the deals are and which areas of the Metro Vancouver are thought to be vibrant. Campbell likens homebuying to playing sports.
Investing in B.C.
“One of the things I tell people who are buying is you are playing both offence and defense, because in defense, these areas – percentage-wise – drop less when the market slows down, and they go up more quickly when the market goes up,” he says. “So no matter what the market does, you win. Now with the interest rates going up, (homebuyers) must remember we are still at historic low rates.” In the Lower Mainland, communities with
easy access to major transportation routes, TransLink bus lines and West Coast Express stations are in demand. One of these, Maple Ridge, has already benefitted from the new Pitt River Bridge and Golden Ears Bridge. This region has been hampered by poor transportation infrastructure for decades, says REIN, and consequently property values have CONTINUED ON P.3
A mere 90-minute drive from downtown
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New Local Home | July 22, 2010 • 3
Buyers’ market in Metro Vancouver this summer CONTINUED FROM P.1
Oakvale’s Trails Edge offers new duplex homes in Maple Ridge. Langley City Mayor Peter Fassbender at the nearly completed Golden Ears Bridge last May. At that time, he said the bridge represents huge opportunity for urban growth. File photo
The West is the best: investing in B.C. real estate makes sense CONTINUED FROM P.2
been historically lower than other regions. But, with the new transportation links, Maple Ridge/Pitt Meadows will be among the most accessible regions in Metro Vancouver; local experts say this will drive demand for both residential and commercial/ industrial property as values rise. As well, the expansion of Highway 1 and the new Port Mann Bridge will make this area an extremely desirable place to live, says Maple Ridge Mayor Ernie Daykin. “Not only are we considered one of the
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top places to invest and live in B.C., we are fifth in the whole country,� Daykin notes. “For a town our size that is fantastic. Transportation in and out of Maple Ridge has been challenging over the years, but with the two new bridges, this has been solved.� Daykin says that despite past transportation problems, Maple Ridge has continued to grow because it offers great value, natural beauty while retaining a sense of rural charm, “that small-town feel.� He points out the access to outdoor recreation is superb, “but we also offer a vibrant
arts and culture community.� “The quality of life Maple Ridge offers is extremely good,� Daykin says. “For people who commute to work, we have the West Coast Express, which gets people into Vancouver in an hour in great comfort.� Maple Ridge is expanding faster than ever, Daykin adds. A plan to increase density in the downtown core stemmed from the city’s Smart Growth from the Ground Plan, Daykin says. In 2003, there were about 8,500 people living in the regional town centre (from the Fraser River to 124 Street, and from 221 Street to Burnett Street), and that is expected to increase to 20,000-22,000 – almost triple – over the next 10 years, says Daykin. “We are making sure we are ready for growth when it comes by upgrading the services to this area,� he says. With between 35,000 to 40,000 people moving to B.C. every year, communities such as Maple Ridge that have plans in place and are preparing infrastructure to handle a larger population will likely be the winners.
in June, reports the Canadian Real Estate Association, along with number of newly listed homes. Led by lower activity in Toronto and Calgary, seasonally adjusted national home sales (via the MLS) receded 8.2 per cent in June, says the CREA. Although near-record levels were recorded in the first quarter, the CREA cites tightened lending regulations and anticipated interest rate hikes as reasons for the more moderate sales activity. While the number of newly listed homes on the Canadian MLS declined by 6.8 per cent in June compared to the previous month, a declining trend in new listings “will help maintain the balance between supply and demand, and temper home price volatility,� says the CREA. The national average price of homes rose 4.9 per cent across the country, on a yearover-year basis, to $342,662. While the market is becoming more challenging for sellers, buyers now have more choice and less competition. “National home sales activity is easing due to fewer and more cautious first-time homebuyers,� says CREA chief economist Gregory Klump. While the pricing environment is becoming more challenging, “A recovering economy and job market will provide support for housing activity and prices,� Klump says. Visit www.bcrea.bc.ca or www.crea.ca for more information.
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