MARKET CONDITIONS

The first two quarters of 2010 showed impressive growth, with 6.1% in the first quarter, and second quarter growth estimated between 3-4%.  However, we can expect to see a significant slow down as there are high levels of uncertainty and pessimism in financial markets due to fiscal crisis in many European countries.  In fact we have already seen retail sales fall considerably, and mortgage rates that were climbing earlier this year are starting to fall again.  Yet, there is speculation that the Bank of Canada (BOC) will attempt to bring low interest rates back to normal levels; in fact, the British Columbia Real Estate Association expects that by the end of 2010 the BOC will bring the overnight rate to between 1 and 1.25%.  The result will be an increased prime rate and a higher cost of borrowing for variable rate mortgages, and though we may see fixed rate mortgages varying in the short-run, with uncertainty in the financial markets, they will likely resume their upward trend by year-end.

With this recent decline in consumer spending, the federal government has implemented an infrastructure stimulus plan in hopes to support growth in the coming months, with impacts expected to peak in the third quarter.  Heading into 2011, however, we may see a drag on growth as the stimulus is withdrawn.  The slowdown may also be intensified by the weak US and global economic growth, and higher dollar that resulted from a rise in interest rates relative to the US.

LET’S LOOK AT HOUSING

Year to date BC residential sales dollar volume has increased by 16% to $24.2 billion, compared to the same period last year.  According to the British Columbia Real Estate Association (BCREA) the average price of a home listed on MLS has gone up by 13% during that time.  Astonishingly, if we break it down by area we can see that the one-year change in home prices in West Vancouver alone is 12%, while we have seen an increase of 29.3% in the past five years. 

With prices rising so quickly, we are now seeing a larger inventory of homes on the market and the supply conditions are more favorable for buyers than at anytime in the past year.  Active residential listings are 21% higher in July than at the start of the year.  An important implication?  Average time on market for homes is changing, and it is now taking an average of 45 days for sellers who work with Realtors to sell their property.  Though longer than what we have seen in recent times, this is a historically healthy timeframe for everyone involved in the transaction.

Yet despite the increase in active listings, home sales activity in Greater Vancouver last month was quieter than any July over the past decade.  In fact, BCREA reported that MLS residential sales in Vancouver declined 45.2% from the same time last year, and in the last month alone residential unit sales have declined 19%.  In West Vancouver June 2010 saw 66 residential sales, while July reports 56; in contrast 77 residential sales were reported in July 2009.  Given the number of listings to sales, we can quantify the decline in sales this year; in July 2009 67% of detached homes listed on MLS were sold while July 2010 reports only 54% of listed detached homes sold.  In the short term, BCREA expects to see sales continue to fall in the near future but we can look forward to seeing home sales rise toward the end of 2010 and through 2011.

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Metro Vancouver house prices, led by West Vancouver real estate, continue to contribute to increases in indices including the Statistics Canada new housing price index. Nonetheless, an increase in the number of properties available has relieved some of the pressure on the market giving home buyers added leverage in current transactions.

The Real Estate Board of Greater Vancouver sales figures for April show a 3% decrease in the benchmark price for a detached home in West Vancouver. While not showing an actual decline, homes for sale in North Vancouver, BC had only a 1.2% increase in benchmark price for detached home indicating a greater balance in the market.

This is good news for anyone looking at West Vancouver homes for sale. Factors including the imminent implementation of the Harmonized Sales Tax and inadequate inventories have tilted the playing field in favour of sellers over the past number of months. Analysts suggest that the current increase in the number and range of properties for sale will result in little upward pressure on prices throughout the balance of the year and a period of relative stability.

At the same time, interest rates continue to hover near record lows, an added benefit West Vancouver realtors are able to present to their clients. In fact, the economic instability in some European countries that threatens to slow global recovery has resulted in a .15% reduction in five year mortgage rates at all of Canada’s big five banks. Economists, though, are quick to caution that this rate reduction will not be long-lived.

Taken together, these factors make this an excellent time to consider buying property in West Vancouver or elsewhere on the north shore. Higher inventories provide a broad selection of homes in all categories and the intensity of market activity is lower than has recently been the case. Advantageous interest rates and upcoming changes to the tax regime support the case for buyers acting now.

West Vancouver is one of the region’s most desirable areas, from its natural assets to its amenities. The current market climate gives buyers looking to enter the West Vancouver real estate market distinct advantages over previous conditions.

Brock is a top Real Estate Agent at Prudential Sussex Realty – West Vancouver, British Columbia’s leading residential real estate company.

Contact:

Brock Smeaton

Debbie Walker

604.925.2911

brock@brocksmeaton.com

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March 2010 saw the average price for a detached home in Greater Vancouver (as reported by the Real Estate Board of Greater Vancouver) top $1 million for the first time. While West Vancouver realtors have seen average prices in that range for some time (West Vancouver March average of $1,445,305), having the average price for the larger region reach the million dollar threshold is groundbreaking, and lends continued support to the values of north shore properties.

The persistent upward trend over time has been driven by a number of factors shared by West Vancouver real estate and properties throughout metro Vancouver. Geography is a key factor. Unlike many Canadian cities, metro Vancouver is limited in its potential for outward expansion, bordered on three sides by mountain, ocean, and the US border. Added to these expansion limitations are projections of significant population growth. Municipal government estimates anticipate a 54% increase in the region’s population to 3.39 million people over the next 35 years. The result: property values can be expected to grow with increased density and demand.

Contemporary factors come into play as well. West Vancouver homes for sale and homes for sale in North Vancouver benefit from the desirability of those two districts. Location and lifestyle attract buyers looking to take advantage of proximity to both the downtown Vancouver business centre and numerous recreational facilities. An excellent selection of educational opportunities, housing options, transportation alternatives, and leisure and shopping choices enhance the demand for properties in the area.

Further interest is generated by the current low mortgage interest rates, which have a greater impact on qualification for higher priced properties. Changes to the provincial sales tax structure, due to take effect within months, only add to the impetus buyers are feeling.

Even taking into account periodic short-term downward fluctuations that have been experienced in the metro Vancouver real estate market, crossing the $1 million average price point is one further demonstration of the strength of the area’s ongoing upward trend in property values. Prices in this range also serve to remind buyers and sellers of the importance of accessing proven professional insight and advice for any anticipated real estate transactions.      

Brock is a top Real Estate Agent at Prudential Sussex Realty – West Vancouver, British Columbia’s leading residential real estate company.

Contact:
Brock Smeaton
Debbie Walker
604.925.2911
brock@brocksmeaton.com

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When West Vancouver realtors introduce potential buyers to their community, they are sure to highlight the array of educational options available to serve the needs of students of all ages.

Some of the finest schools in the province, both public and private, are found in West Vancouver. Independent assessments of educational institutions such as the Fraser Institute’s annual ranking of BC schools consistently place West Vancouver schools in the upper echelons. Above average performance on standardized tests, high graduation rates, and effective student support by school resources and parents at home are typical of the findings.

Families looking at West Vancouver homes for sale are quick to recognize the benefits. So much of contemporary family life revolves around the children’s schools including classroom and extra-curricular activities. Neighbourhood schools that are known for both quality and stability provide families an impetus to buy as well as peace of mind as they establish themselves in their new homes. Choosing a home in West Vancouver or selecting homes for sale in North Vancouver BC is made easier by that confidence in the school environment afforded to the children in the family.

The reality of family life, though, is that children don’t stay the same age. Today’s preschooler is tomorrow’s fifth-grader and will graduate from high school before parents have time to realize what has happened. What then?  Numerous post-secondary institutions are readily accessible from West Vancouver property. Some, like Capilano University, are close by, right on the north shore. Others such as the University of British Columbia and Simon Fraser University are near enough to allow students to comfortably commute. Families that have established themselves in West Vancouver don’t have to move or live separately from their children to accommodate objectives for advanced education.

It is not uncommon for real estate advertisements to make reference to a property’s proximity to schools. Often less clear is the caliber of the schools themselves. In West Vancouver, school proximity and school performance go hand in hand, helping to take the guesswork out of finding the right home.      

Brock is a top Real Estate Agent at Prudential Sussex Realty – West Vancouver, British Columbia’s leading residential real estate company.

Contact:
Brock Smeaton
Debbie Walker
604.925.2911
brock@brocksmeaton.com

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One of the key advantages that West Vancouver Realtors present to their clients is the city’s ideal location. From work to recreation, everything is close by. Improvements to the regional transportation system are making it easier than ever to get to all of it.

The view from West Vancouver homes for sale often includes the stunning panorama of the Burrard Inlet, Stanley Park, and downtown Vancouver. Improvements to bus services, the scheduled addition of a third Seabus to downtown, and continuous upgrading of the road system are improving access to Vancouver’s central business core. Residents of the north shore are able to live in one of Metro Vancouver’s most desirable areas and still commute conveniently and comfortably to the office.

Homes for sale in North Vancouver share with West Vancouver property an efficient network that puts commercial and service centers throughout the north shore on the doorstep. Shopping, dining, medical services, and social gathering spots are ready at hand, just minutes from most of the residences in the area. Families find a range of choices at their disposal. Neighbourhood hubs make walking and cycling viable options. Public transit routes crisscross the district and vehicle corridors move traffic efficiently throughout the day.  

After work, owners of West Vancouver real estate find that transportation improvements help them make the most of their leisure time as well. The newly upgraded Sea-to-Sky highway has substantially reduced travel times to Whistler and other recreational sites along the Sea-to-Sky corridor while greatly improving comfort and safety for travelers. Access to other nearby sites such as Cypress, Grouse, and Seymour Mountains has also been improved.

With the pace of contemporary living, transportation is a critical consideration for home buyers. The right house is even more desirable if a family can easily travel to and from home as they pursue the activities of a full day. Work or school, shopping or recreation: West Vancouver’s transportation options help homeowners enjoy both their homes and their community to the fullest.   

Brock is a top Real Estate Agent at Prudential Sussex Realty – West Vancouver, British Columbia’s leading residential real estate company.

Contact:
Brock Smeaton
Debbie Walker
604.925.2911
brock@brocksmeaton.com

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Spring 2010 is delivering a dynamic market for West Vancouver property with benchmark prices reported in February showing a one-year increase of over 20%. Realtor Brock Smeaton confirms that West Vancouver realtors are experiencing an upsurge in interest from potential buyers driven, he says, by the convergence of various factors. “Interest rates, immigration, a strong dollar and buoyant optimism are resulting in intense demand, particularly for properties in the 1 million to 2.5 million dollar range.”  

Leading indicators are delivering encouraging news of a strengthening recovery for the economy at large and many buyers are surveying the market with keen awareness of the implications of pending changes to the sales tax regime. February sales in West Vancouver were double those of January, 2010 and more than double the total from February, 2009. Extensive global exposure over the past months for one of the most desirable urban environments imaginable hasn’t hurt either.

What is the attraction? Active communities around neighbourhood centres for shopping and services allow for intimate community life within a larger urban framework. Some of the finest schools in the country, both public and private, are complemented by ready access to numerous post-secondary institutions. The heart of the business community and the ultimate in outdoor recreation are both minutes away. Moreover, choose a property at random and the views in almost any direction are sure to be stunning.

Closer inspection only adds to the desirability of West Vancouver real estate in the near and long terms. Established households with above average incomes add to the stability of the market. Property values continue an upward trend and a growing diversity of housing choices makes West Vancouver a lifetime community. As needs change, residents are able to upsize or downsize without abandoning the community roots they have established.

The natural boundaries of mountain and ocean limit the potential for sprawl. Like any finite resource, scarcity builds value over time regardless of cyclical market fluctuations. Each successive generation of building adds to the quality and desirability of the property inventory, enhancing the values of existing properties even as new developments come on stream. Investment in community services and infrastructure have maintained the quality of life and met the challenges of managing growth in a proactive way.

All things considered, West Vancouver continues to be one of the region’s most desirable communities. For homeowner and investor alike, spring 2010 is an ideal time to rediscover West Vancouver.

Brock is a top Real Estate Agent at Prudential Sussex Realty – West Vancouver, British Columbia’s leading residential real estate company. You can contact Brock at 604.619.9131 or by e-mail at brock@brocksmeaton.com

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Geography Supports West Vancouver Real Estate

Many of the qualities quickly appreciated by people looking at West Vancouver homes for sale are not solely the product of urban planning or human ingenuity. In fact, the natural geographic structures have given planners and builders numerous advantages.

Sweeping up mountainsides from the picturesque waterfront, row upon row of building sites are blessed with the benefits of “stadium seating”. Few locations could offer topography that lends itself to stunning views not only for the few homes on the shore and those at the summit, but for the majority of lots in between as well. A characteristic of metro Vancouver’s north shore, this advantageous landscape is shared with many of the homes for sale in North Vancouver, BC.

There is no need here to lean precariously over the balcony rail to peer around the building across the street for a glimpse of water or forest. Every point of the compass affords stunning panoramic views.

Furthermore, the mountains, canyons, inlets, and rivers work together to foster the growth of cohesive communities within the larger municipality. Bounded by the Capilano River to the east, mountains to the north, and rugged shoreline from Burrard Inlet around to Horeshoe Bay, West Vancouver encompasses a large region. Yet within that extensive area, individual communities have managed to establish distinct identities.

Set apart from each other by the natural features that define them, these districts have emerged with distinct personalities. The carefree beachfront atmosphere of Ambleside merges with the understated urban sophistication of Dundarave with its boutique shopping and myriad coffee shops and dining options. From dynamic Edgemont Village to the stately elegance of the British Properties to the quaint seaside village ambience of Horseshoe Bay, one city boasts many thriving communities.

Of course, this diversity is an asset highly valued by West Vancouver realtors. Having invested the time to develop a comfortable familiarity with the character of each area, experienced professionals are able to match buyers with a home that not only meets their needs, but is also part of a community that matches their lifestyle. As people move through the various stages of family life, West Vancouver offers neighborhoods well-suited to each one.

Designers and builders have certainly made every effort to make West Vancouver an enviable example of livability and the natural assets of the region have been a critical component of their success.

Brock is a top Real Estate Agent at Prudential Sussex Realty – West Vancouver, British Columbia’s leading residential real estate company.

Contact:

Brock Smeaton

604.619.9131

brock@brocksmeaton.com

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