BURNABY / TRI-CITIES Dec 21, 2016 - Jan 4, 2017 Real Estate Weekly

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BURNABY

WEDNESDAY WEDNESDAY, DEC 21,JANUARY 2016 - JAN20, 4, 2016 2017

TRI-CITIES

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R E A L E S TAT E W E E K LY

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YEAR IN REVIEW P

hew! What a year it’s been for Vancouver and BC real estate stories. From soaring values, to shadow flipping, to the foreign buyer tax, to tough mortgage changes and then Donald Trump’s US presidential election win… 2016 has seen it all. Here are the highlights of our year in real estate.

JANUARY January real estate news is always dominated by the New Year’s BC Assessment figures, which shocked everyone in January 2016. The value of residential real estate in Vancouver compared with the previous year went up by 16.96 per cent, with the most expensive properties to be found on Vancouver’s West Side – again. In other January news, Royal LePage predicted that home prices in Vancouver would rise another nine per cent across 2016.

FEBRUARY The big real estate story of February was the unethical application of contract assignments to deliberately inflate home prices – now known as “shadow flipping” – which started with a Globe and Mail story. The issue was later tackled by the BC government in various ways – see March and May. Also rocking the real estate world in February was the BC Budget, which sidelined first-time buyers in favour of subsidizing buyers of new homes. And first-time buyers were also shocked by the increase in the minimum down payment for homes above $500,000.

MARCH Following February’s shadow flipping stories, in March the BC government announced new rules intended to remove the potential profit of contract assignments

from real estate agent’s hands. Many in the industry supported the move, but the board’s then-president wrote to Premier Christy Clark that the BC government was overreacting in response to media stories. Meanwhile, the spring real estate market in BC was accelerating at a “breakneck pace,” according to the British Columbia Real Estate Association.

APRIL With the market at scorching levels, Central 1 Credit Union issued an April forecast that predicted Vancouver and BC home price rises would continue through to 2018. It seems the credit union did not foresee the drop in sales and policy interventions that would add to the slowdown of cooling market. Hoping to offset the market frenzy, the City of Vancouver approved in April the next steps for its new Affordable Home Ownership program to supply 300 belowmarket-priced units to Vancouver residents.

MAY A major meme in May was a series of media stories on the perceived exodus of local Millennials from Vancouver, over the lack of affordable housing – which was responded to by a Vancity survey of 500 local Millennials, which suggested this was far from the truth.

JUNE Reacting to a March vacant home study, Mayor Gregor Robertson announced in June that 10,800 empty homes was unacceptable and that he would launch a vacant home tax “with or without” the province’s backing. June also saw two federal red flags about Canada’s housing market, including finance minister Bill Morneau’s promise

to conduct a “deep dive” into expensive housing markets – this just a few months before introducing strict new mortgage rules – see October.

JULY The big news of July came right at the end of the month, when the BC government did a full 180-degree turn and announced that a new foreign buyer tax, would be imposed in early August. The announcement left the real estate industry scrambling to try to get as many overseas-buyer transactions through before the August 2 deadline as possible.

AUGUST The overseas buyer tax was implemented August 2, and immediately agents started reporting deals collapsing. There were also many tales of collateral damage of those buyers who had committed to a purchase and were suddenly hit with the new tax. Early August sales statistics suggested that Vancouver home sales could be down 63 per cent year over year.

SEPTEMBER The board’s MLS® resale statistics for August, issued early September, revealed that although home sales were indeed down in August, it was nowhere near the 63 per cent previously suggested. The collateral-damage victims of the tax banded together, launching a class-action lawsuit September 19 against the BC government for damages incurred.

OCTOBER Another policy-shocker in October, this one in the form of strict new mortgage qualification rules for all Canadians. This new “stress test” prompted a lot of criticism as it could push many first-time and

Happy Holidays

low-income buyers out of the reach of home ownership entirely. Forecasters were equally bearish in October, with the National Bank predicting a home price drop of 10 per cent following the recent slew of policy changes, and Royal LePage saying that Vancouver prices had seen their “final hurrah” – at least for now.

NOVEMBER If all of the above wasn’t enough, early November saw the victory of Donald Trump’s US presidential campaign. Immediately, Americans who had been threatening to move to Canada, should Trump win, seemed to be making good on their threats, with Lower Mainland home searches from US sources tripling the day after the election. In other news, the CMHC reported that rental vacancy rates had dropped even further in Vancouver, especially in investorheld condos.

DECEMBER After a full year of real estate media frenzy, December has so far been quiet, at least by the time REW.ca went to press. But in early December, a poll found – fairly unsurprisingly – that Vancouverites were largely opposed to the proposed 3.4 per cent hike in property tax, which is well above inflation. This was followed by a last-minute proposal to add an extra 0.5 per cent to that raise, in order to create a $3.5 million fund to help solve the fentanyl crisis sweeping the city (and, indeed, country). That total of a 3.9 per cent in-crease in property tax was approved in a (non-unanimous) council vote December 13, putting Vancouver home owners firmly on the hook for the opioid epidemic. For all these stories and much more, go to REW.ca/News.

Watch out for our next issue, published January 11, 2017. Happy Holidays to all our readers and customers! GO TO

REW.CA /NEWS

TO READ THESE STORIES AND MUCH MORE REAL ESTATE NEWS AND ADVICE

BC Government Offers New Loan Program to Match FirstTime Buyers’ Down Payments

City of Vancouver Approves 3.9% Property Tax Hike, Including 0.5% for Fentanyl Crisis

BC Home Sales Start to See Seasonal – and Yearover-Year – Decline: BCREA


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R E W.ca » B U R N A BY / T R I - C I T I ES » W E D N ES DAY D EC E M B E R 2 1 , 2 0 1 6 - JA N UA RY 4, 2 0 17

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from

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21436 117 AVENUE, MAPLE RIDGE A rare opportunity in a quiet neighbourhood in West Central Maple Ridge - 21436 117th Ave. Top reason you need this home for your family. LOT: Sundrenched, south exposed - 8,856 Sqft. Room for gardens, private yard with mature trees, XL patio, fully fenced. UPDATES: You name it, it's got it - tastefully updates in 2008 with renovations including windows/vinyl siding/kitchen/carpet/tile and laminate floor. SPACE: 2035 Sq.ft. - 4 bedroom, 3 bathroom, xl rec room and full bathroom in basement - perfect for growing family or inlaws. LOCATION: Flat, no-thru street, family friendly neighbourhood. Close to a wealth of amenities - SCHOOLS, transportation and HOSPITAL. CALL NOW!

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Contact Roloff at 604-782-7327 or roloff@evergreenwestrealty.com 206-1120 Westwood Street, Coquitlam BC, V3B 7K8 T: 604 942 1389 www.evergreenwestrealty.com


R E W.ca » B U R N A BY / T R I - C I T I ES » W E D N ES DAY D EC E M B E R 2 1 , 2 0 1 6 - JA N UA RY 4, 2 0 17

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Managing Broker: Roloff Veld

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Merry Christmas! Helen Shiu

Have a Happy and Prosperous New Year from all of us at Evergreen West Realty!

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R E W.ca » B U R N A BY / T R I - C I T I ES » W E D N ES DAY D EC E M B E R 2 1 , 2 0 1 6 - JA N UA RY 4, 2 0 17

723 2) *5($7(5 9$1&289(5 5($/7256 ®

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Sutton Group - Seafair Realty: 1625 56th Street, Tsawwassen, BC

2015

2015

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R E W.ca » B U R N A BY / T R I - C I T I ES » W E D N ES DAY D EC E M B E R 2 1 , 2 0 1 6 - JA N UA RY 4, 2 0 17

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RealEstateInDelta.com

PINNACLE AWARD

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TAMMY MATSON 778.938.5599 www.tammymatson.com ❚ tmatson@eastlink.ca

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D L O

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4963 CENTRAL AVENUE

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#6-4788 57TH STREET

LARGE 1834 SQ. FT. TOWNHOME, IN POPULAR LADNER ESTATES, LOCATED WITHIN WALKING DISTANCE TO TRANSIT, RECREATION, DELTA HOSPITAL, SHOPPING, ETC. THIS 3 BEDROOM & 3 BATH HOME IS COMPLETELY RENOVATED OFFERING NEW STATE OF THE ART KITCHEN WITH QUARTZ COUNTERS, ALL NEW APPLIANCES, AND SEPARATE EATING AREA. ALL 3 BATHS COMPLETELY REDONE, NEW FLOORING & LIGHTING THROUG THROUGHOUT, NEW PAINT AND MOULDINGS, AND THE LIST GOES ON.. BONUS BO 2 CAR GARAGE. PRICED TO SELL AT $688,800.

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DEVELOPMENT PROPERTY

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Season's Greetings

D L O

S $749,900

NORTH DELTA 2-LEVEL

CLEAN BASEMENT HOME OFFERING 5 BEDROOMS AND 4 FULL BATHS ON LARGE WEST BACK YARD. THE BASEMENT OFFERS 3 BEDROOMS AND 2 FULL BATHS PLUS DEN AND CAN EASILY ACCOMMODATE EXTENDED FAMILY. UPPER LEVEL OFFERS 3 BEDROOMS, 2 FULL BATHS, LARGE SUNNY KITCHEN WITH EATING THAT OPENS ONTO FAMILY ROOM WITH GAS FIREPLACE. LARGE 2 CAR GARAGE.

SIDE-BY-SIDE FULL DUPLEX

RARELY AVAILABLE FULL DUPLEX WITH MANY UPDATES ON LARGE PRIVATE LOT, IN GREAT TSAWWASSEN LOCATION, CLOSE TO SCHOOLS, SHOPPING, RECREATION & PUBLIC TRANSPORTATION. GREAT INVESTMENT OPPORTUNITY WITH OPTION TO RENT BOTH SIDES OR LIVE ON ONE SIDE AND RENT THE OTHER TO HELP WITH MORTGAGE PAYMENTS. OFFERS 5 BEDROOMS & 2 FULL BATHS ON ONE SIDE AND 4 BEDROOMS & 2 FULL BATHS ON THE OTHER. UPDATES INCLUDES KITCHEN, BATHS,VINYL WINDOWS ETC.

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4980 - 55B STREET

SPACIOUS UPDATED RANCHER ON QUIET PRIVATE LOT, CLOSE TO HAWTHORNE ELEM. SCHOOL, PARKS, SHOPS AND TRANSIT. MANY UPDATES IN PAST FEW YEARS INCLUDING; NEW ROOF, HIGH EFFICIENCY FURNACE, H.W. TANK, IKEA KITCHEN WITH NEW APPLIANCES, BOTH BATHROOMS COMPLETELY REDONE, VINYL WINDOWS & SLIDING DOORS, NEW DECK, FENCE AND THE LIST GOES ON. NOTHING LEFT TO DO, EXCEPT ENJOY THE ONE LEVEL LIVING!


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BY ZENTERRA. A STEP ABOVE THE REST! EACH HOME HAS A PRIVATE ROOF TOP PATIO.

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SOHO Sales Centre: 30-2411 160 St. Surrey Open daily 12 to 5 PM

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BURNABY • TRI-CITIES

WEDNESDAY DEC 21, 2016 - JAN 4, 2017

Looking for a new home? Start here.

R E A L

E S T A T E

W E E K L Y

Warmest Wishes for the Holiday Season REW.ca would like to offer heartfelt season’s greetings to all of our readers and customers, and here’s to a healthy and prosperous 2017

A

t this time of year, we at REW.ca love to look back on the year in real estate news and sales – and 2016 has certainly been a fascinating and extremely controversial one. Record home sales and prices, shadow flipping, the foreign buyer tax, government intervention in the housing market – there has been no shortage of excitement. Some of our readers will find our 2016 Year in Review article on the front cover of this week’s issue (depending on which geographical edition you receive) – so for those who don’t, go to REW. ca/News to see the full-length article. There you will also find our 2016 Home Sales and Listings of the Year article, a fascinating deep-dive into resale transactions and listings that reveal the year’s hottest properties, from the highest prices paid, to the biggest homes sold, to those sold most over asking price, and more. Both stories, with the benefit of their 20:20 hindsight, reveal a year of surprises. The spring market of 2016 saw such a frenzy of home sales that it was impossible to imagine what would come later in the year – although many predicted that something must bring the situation to a breaking point. In fact, the market rapidly started to self-correct, months before the BC government brought in the 15 per cent foreign buyer tax, and the feds introduced strict new mortgage

qualification rules to try to cool the market. And the government intervention in the housing market does not stop there. As REW went to press for this edition, Premier Christy Clark had just announced a new loan program matching the down payments that first-time buyers have saved, up to $37,500 or five per cent of the home’s value. With next year bringing us a provincial election, we can expect to see more policy changes designed to appeal to voters, whose number one concern is housing affordability, according to polls. Then there’s the issue of new development in our fair city and wider region. With a new director of planning in situ at the City of Vancouver, many will hope that processes will improve next year and housing supply shortages eased – but there will continue to be many opposed to densification changing the character of much-valued local neighbourhoods. So who knows what 2017 will bring in our real estate world? Early forecasts are divided on the likely trajectory of Lower Mainland home sales and prices. Take a look at our first edition on January 11, 2017, for our 2017 Real Estate Outlook article, also on REW.ca/News. In the meantime, happy holidays and best wishes for a wonderful New Year to you all. Next issue: January 11, 2017

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