Real Estate Market

Conditions in the Greater Vancouver housing market continued to favour buyers in August. Since April, prices have edged down slightly as the number of sales and the number of properties coming on to the market have been declining.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,202 in August 2010. This represents a 36 per cent decline from the 3,441 sales in August 2009, the second highest selling August ever recorded, and a 2.4 per cent decline compared to July 2010.

From a wider perspective, last month’s residential sales represent a 40.4 per cent increase over the 1,568 residential sales in August 2008, a 34.9 per cent decline compared to August 2007’s 3,384 sales, and a 26.6 per cent decline compared to August 2006’s 2,998 sales.

New listings for detached, attached and apartment properties declined 17.5 per cent to 3,750 in August 2010 compared to August 2009 when 4,544 new units were listed. Total active listings in Greater Vancouver currently sit at 15,421, a 6.1 per cent decline from last month and a 29 per cent increase from August 2009.

Since spring, housing prices have decreased 2.8 per cent compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.9 per cent to $576,597 in August 2010 from $539,600 in August 2009.

August 5, 2010 - A survey conducted by Royal LePage Real Estate Services revealed that Ontarians and British Columbians have misconceptions about how the Harmonized Sales Tax (HST) affects real estate transactions. When respondents were asked to provide examples of comments heard from buyers and sellers regarding the HST and its effect on the housing market, almost half of the comments (46.7 per cent) indicated that confusion about HST remains more than one month after its introduction.  Among the most common responses to the survey’s open-ended questions were that many home buyers incorrectly believe HST applies to the sale price of resale properties.

Nearly half (43.9 per cent) of the 765 REALTORS® polled in Ontario and B.C. said the HST that took effect in both provinces July 1 is having the greatest effect on the cooling residential real estate market, compared to just 28.4 per cent who cited rising interest rates as having the greatest effect. In all, more than 86 per cent of respondents said the HST is affecting their business somewhat.

The HST applies to the purchase price of a newly-built home, and fees for services and commissions associated with any real estate transaction, but it does not apply to the purchase price of resale homes.  Resale homes comprise the bulk of transactions in the Canadian housing market, and the majority of agents surveyed by Royal LePage indicated that new home sales account for less than 10 per cent of their business.

Nearly one quarter (24.1 per cent) of respondents in the Royal LePage survey said home buyers and sellers have a low level of awareness about how the HST applies to a home sale transaction, while 44 per cent said buyers and sellers are only somewhat aware.

Results from the Royal LePage Real Estate Advisor Survey, conducted online at the end of July 2010, can be found below.

Survey Results

What impact has the introduction of the HST had on the real estate market in your region?

Significant impact: 36.5 per cent (279 responses)
Some impact: 49.7 per cent (380 responses)
No impact: 5.2 per cent (40 responses)
Don't know: 8.6 per cent (66 responses)

In your opinion, what factor has had a greater impact on the housing market's recent activity?

HST: 43.9 per cent (336 responses)
Rising interest rates: 28.4 per cent (217 responses)
Other: 27.7 percent (212 responses)

Based on your recent interactions with home buyers/sellers, please describe the level of awareness about the impact of HST on real estate transactions?

High level of awareness: 31.4 per cent (240 responses)
Some awareness: 43.9 per cent (336 responses)
Low awareness: 24.1 per cent (184 responses)
Don't know: 0.7 per cent (5 responses)

In the past three months, how often have new or prospective clients (home buyers or sellers) asked you questions about the HST and how it applies to a real estate transaction?

Many questions - I am asked frequently: 57.1 per cent (437 responses)
Some questions - I am asked occasionally: 28.8 per cent (220 responses)
Few questions - I have been asked only a few times: 11.9 per cent (91 responses)
No questions: 2.2 per cent (17 responses)

What percentage of your business is new home sales (as opposed to resale)?

None: 30.7 per cent (235 responses)
Less than 10 per cent of business: 53.9 per cent (412 responses)
11-25 per cent of business: 10.5 per cent (80 responses)
26-50 per cent of business: 2.9 per cent (22 responses)
51-75 per cent of business: 0.9 per cent (7 responses)
76-100 per cent of business: 1.2 per cent (9 responses)

Just because you are on a budget, doesn’t mean you have to compromise on style in your home.  If it’s time to refresh your décor but you don’t think you have the necessary funds, think again.  Here are a few ways you can add a touch of luxury to any room of your home without breaking the bank:

Start with the walls
No room of your home can ever feel luxurious if the paintwork is shabby or wallpaper looks dull or weathered.  A new coat of paint or wallpaper is the fastest, and easiest way to a fresh new look.  If painting, consider a suede, satin or cashmere finish in a neutral colour for a look of elegance.  If wallpapering, consider rich colours, textures or traditional patterns. Use good quality products for best results. 

Liven up the living room  
Add an instant touch of lavishness with one or two large cushions in rich embroidered fabric, velvet or faux fur.  Add warmth to your wood floors with a shag rug for modern décor, Turkish or Oriental style for more traditional tastes.  No need to splurge on new lamps, simply update the shades with linen or silk-like material.  Give a favourite piece of furniture a makeover with updated sleek metal hardware or repaint with an attractive gloss paint.

Beautify bedrooms & bathrooms 
Buy beautiful bed linen when it is on sale.  Billowy comforters or duvets with plenty of plump pillows make the whole room look luxurious and inviting.  A plush rug for stepping in and out of bed gives a sumptuous start and end to your day.  Add plenty of thick fresh towels and large pillar candles in the bathroom to set a pampered scene. Invest in light switch dimmers to create the ambiance you desire.

Get chic in the kitchen
Freshen up cabinetry with new paint or modern hardware and update lighting fixtures.  Buy a beautiful tablecloth or table runner and top it off with a potted orchid in an attractive pot.  Rather than using every day chipped or stained mugs, treat yourself to a couple of fine china tea cups from a thrift store or good quality coffee mugs for your favourite brew.  Then sit back, enjoy tea for two with a friend, and truly savour the moment.