New Westminster Housing Market Update May 2017

MARKET UPDATE BY NEW WESTMINSTER REALTOR JAMES GARBUTT

May is here and it’s time for another New Westminster housing market update.

It’s been a bit of a crazy year, it started off with a lot of snow, followed by a lot of rain, which delayed everything and affected the number of sales that have taken place. In fact, numbers are down considerably. The number of sales of detached homes in New Westminster to date is 62. At this time last year, that number was 186–that’s essentially a third of the number of sales compared to last year and about half the number of sales compared to 2015. Not surprising considering the weather and considering everything that’s happened lately, and, openly, there just hasn’t been a lot of product and a lot of overpriced listings have been sitting on the market.

The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. The sales ratio for detached homes in New Westminster is 30% across the board. That means, that of ten listings, 3 of them sell in a given month. Anything north of 21% is considered a seller’s market, so the market still is strong. Isolating the ratio to focus mainly on a lower price point, say detached homes under $1.2 million, the sales ratio goes from 30% to 70%. That means the out of 10 listings, 7 of them are selling in a given month, and that is a very strong seller’s market. So there’s clear demand for the more affordable price points.

The average detached home sold this year is going for $1.125 million and the average high sales of the year is $2.3 million; but there were two sales north of $2.2 million, both in ‘Queens Park‘.

The REBGV has shown that prices for detached homes in New Westminster have gone up 8% from this time last year; but we’re finding that, for nice family layouts, in a good location, in good shape, in the more affordable price bracket, they’re up about 10%. The busy street homes, the ones that have the land value, are struggling a bit; they’re at par with April of last year or maybe even a little bit below.

Moving forward, I expect the market activity to increase quite a bit; I think sales are just starting to ramp up and that the summer is going to be a busy one. Talk about things such as coach homes for lots over 6000sqft has held back a lot of the inventory as owners wait to see what happens. But, the weather is getting better and the supply is low and the demand is high, so if you are a homeowner and you’re thinking of selling, now is the time to do so.

Full Real Estate Board of Greater Vancouver Stat Package for April 2017

If you’re thinking of buying, selling or just curious about the value of a property, contact us today!

Contact Us Today

James Garbutt
Greater Vancouver Realtor

Greater Vancouver Condo Market Update May 2017

MARKET UPDATE BY GREATER VANCOUVER REALTOR JAMES GARBUTT

May is here and it’s time for a Greater Vancouver condo market update. It’s been a bit of a crazy year, and, between the snow and the rain, the weather has been awful and it’s held back the sales a little bit, or at least that’s part of the reason for it.

As of April 26, 2017, the year-to-date number of sales are down from this time last year in the same period. If I were to put an approximate figure on it, I would say it’s down 30% in terms of number of sales. However, number of sales is just part of the equation for the market–prices are up considerably. Condos and townhouses are hot! They’re more affordable than detached homes, and, as a result, have a lot more buyers.

To get a good indication of how the market doing, we like to look at the sales ratio. The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher. That usually means that prices don’t back track. In Vancouver right now, we’re seeing a sales ratio of 60% over the last 60 days. In Burnaby, it’s 66%, in New Westminster it’s 76%, and in the Tri-Cities it’s 98%. These are strong seller’s markets.

If we isolate Vancouver condos north of $1.5 million, the sales ratio goes from 60% down to 22%, which is on the fringe of a seller’s market. At that figure, it’s definitely not a climbing market, but it’s definitely not back tracking either. So, sales volume may be down, but the prices are up. According to the latest stats from the REBGV, condo prices are up 16% across all of Greater Vancouver; however, in Burnaby, New Westminster and the Tri-Cities, we’re seeing a figure that seems to be more in line with 25%. And, particularly newer condos built after 2000 that are entry price points in the market, they’re smoking hot. The demand for affordable condos is high; the higher the price points, the lower the demand.

Let’s look at those percentages in a more practical way. Let’s look at a ‘Yaletown‘ 1 bedroom that’s 550 sf mid-level, say 10 years old as well. Those are selling for $1100 a foot this year; in 2016 for $950sf, and the year before it would be $775. Back to back years of 20+% appreciation–that is a hot market. It’s not sustainable, but it is smoking hot at the moment and I don’t expect it to slow down any time soon. 

Some interesting stats for Greater Vancouver:

The highest sale as of April 26 2017 is $8.7 million. That was for a 3600sf condo in ‘Coal Harbour‘. That’s bigger than my house. In the Tri-Cities, a condo in Newport Village sold for $1.4 million for 1800sf overlooking the water.

Moving forward, I expect more of those to come; a lot of people that are downsizing are moving into these high end condos. So if you own a high end condo, now is a great time to consider listing. Basically, if you own any condo in Greater Vancouver, now is a great time to sell! The problem is, what are you going to buy? If you’re buying another condo, you may have some challenges.

Full Real Estate Board of Greater Vancouver Stat Package for April 2017

If you’re thinking of buying, selling or just curious about the value of a property, contact us today!

Contact Us Today

James Garbutt
Burnaby Realtor

CLICK HERE FOR YOUR MAY 2017 GREATER VANCOUVER HOUSING MARKET UPDATE

Burnaby House Market Update for May 2017

MARKET UPDATE BY BURNABY REALTOR JAMES GARBUTT

May is here–and it’s time for a Burnaby detached house market update. It’s been a bit of a crazy year that started off with a lot of snow followed by record amounts of rain and we feel that this held back the number of sales compared to previous years.
As of April 26, 2017, the year-to-date number of detached houses sold in Burnaby was 276 units*, compared to 1400 units in 2016 and 558 units in 2015. That’s basically 1/5th of the sales volume in terms of units sold compared to this time last year. Not surprising, however, because the weather has been awful, and Burnaby houses have become very expensive! The average list price of a detached home in Burnaby at the moment is $2,212,700 (as of April 26, 2017), and the average sale price over the past 60 days has been $1,696,600.
To get a good indication of how the market is doing, we look at the sales ratio. The sales ratio is the sales-to-active listings ratio, or the number of sales that take place in a given month, divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher. Currently, Burnaby homes are on the fringe of a seller’s market. When looking at the last 60 days of activity, the sales ratio is 21% for all houses in Burnaby. However, if we isolate homes priced under $1,500,000, the sales ration climbs to 53%. If we isolate the $2 million plus price range in Burnaby, the sales ratio decreases to 9%. Basically meaning that 1 of out 10 listings in this price range are selling in a given month. As a Burnaby Realtor, what we’re seeing is that there are a lot of overpriced homes; there are a lot of higher end homes priced 10-20% above where they should be.
Moving forward, we expect to see the sales ratio increase in the seller’s favour. The market is starting to heat up and the weather is getting better. The high end market may still struggle, but we expect houses priced under $2 million in Burnaby to be in high demand over the coming months.

Some interesting stats for Burnaby:
There has been just 1 detached home sold in 2017 for under $1 million and it went for $998,800. It was a small older home on a very busy street (10th Ave). It’s official, the new entry price point to buy a detached house in Burnaby is $1 million. The high sale for 2017 is $3,180,000 and it was a newer home sold in ‘Upper Deer Lake‘.
*Note that this information was taken on April 26, 2017. They are likely firm sales that have not registered on the MLS. Actual 2017 figures may be slightly higher than noted above.
Full Real Estate Board of Greater Vancouver Stat Package for April 2017
If you’re thinking of buying, selling or just curious about the value of a property, contact us today!
 
Contact Us Today
 
James Garbutt
Burnaby Realtor
 

CLICK HERE FOR YOUR MAY 2017 BURNABY CONDO MARKET UPDATE

Burnaby Condo Market Update for May 2017

BURNABY CONDO MARKET UPDATE BY REALTOR JAMES GARBUTT

May is here and it’s time for a Burnaby condo market update! It’s been a bit of a crazy year, we had a lot of snow at the beginning followed by record amounts of rain and we feel that this held back the number of sales compared to previous years.
As of April 26, 2017, the year-to-date number of condos sold in Burnaby is 636 units*, compared to 1022 units in 2016 and 708 units in 2015. Sales volumes may be down, but prices are up, and condos are hot. The REBGV just released the latest market stats and it shows Burnaby condos are up 25% compared to 1 year ago.
To get a good indication of how the market doing, we like to look at the sales ratio. The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher. Currently, Burnaby condos are experiencing a strong seller’s market. When looking at the last 60 days of activity, the sales ratio is 65% for 2 bedroom condos and 85% for 1 bedrooms. This tells us that condos are in demand, and even more so for lower price points.

Let’s look at Brentwood Park for a moment as it is a popular neighbourhood for many condo buyers due to it’s central location and ample supply of newer condos.
The price per square foot for a typical 2 bedroom, 2 bathroom, mid level unit that is 850-880 sqft in a 10ish year old building at OMA (2345 & 2355 Madison Ave, and 4250 Dawson St) or Tandem (4118, 4178 & 4182 Dawson St) is currently selling for about $775/ sqft or $675,000 (as of April 2017). In April 2016, they were selling for $635/ sqft or $540,000, and in April 2015 they were selling for $520/ sqft or $450,000. It is a climbing market and Burnaby has seen back-to-back years of 20% plus appreciation.
The highest price per square foot recorded this year was $980/ft in Brentwood Park, and if that is the start of the new trend, expect Burnaby to get even more expensive!
*Note that this information was taken on April 26, 2017. They are likely firm sales that have not registered on the MLS. Actual 2017 figures may be slightly higher than noted above.
Full Real Estate Board of Greater Vancouver Stat Package for April 2017
If you’re thinking of buying, selling or just curious about the value of a property, contact us today!
 
Contact Us Today
 
James Garbutt
Burnaby Realtor
 

CLICK HERE FOR YOUR MAY 2017 BURNABY HOUSE MARKET UPDATE

Top 8 Questions to Ask When Buying In Older Condo Buildings

Some older condo buildings age better than others, depending on the quality of the original construction as well as the care and attention paid by the strata to maintenance and repairs.
So if you’re considering buying into older condo buildings, here are eight questions you should ask to avoid any expensive surprises once you’ve settled into your new home.
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1. Has the plumbing been redone?
Galvanized steel plumbing was widely used before the 1970s; but it’s heavy and not very durable. Once the zinc coating inside starts to break down, the pipes are prone to rust. That can cause blockages or even breaks.
Copper plumbing is also popular in older condo buildings. It can last 50 years or more. But the lead-based solder that used to be used to join pipes and fixtures could eventually leach into your water.
Older condo buildings constructed from the late 1970s to the mid 90s could use polybutylene pipes. The plastic is cheap, light and easy to work with, but its lifespan is only 20 years.
It’s possible plumbing systems in older condo buildings have all three types of pipes, as repairs and replacements have been done over the years. If you see references to pin hole leaks in the minutes of strata council meetings, it’s a good sign the plumbing is nearing the end of its life and may be due for replacement.
2. How old is the roof?
Tar and gravel roofs last 15-20 years. An asphalt roof should last 20-25 years. If the answer to your question is close to those numbers, you may have to put room in your budget for your share of the cost of replacing that roof.
3. How old is the boiler?
A commercial gas-fired hot water boiler should last 10-15 years, but it could last longer if it’s been well-maintained.
4. Have the balconies been redone?
This likely isn’t a concern in older condo buildings constructed of concrete. But if the balcony is constructed of wood or vinyl, it could begin deteriorating after 15 years.

Older condo buildings can be a great buy because you usually get more space for your money.
The condition of balconies in older condo buildings shouldn’t be a worry if they’re concrete.

 
5. Are there any issues with the parkade membrane?
Water leaking into parkades can be a common problem in older condo buildings. It happens when cracks form in the structure because of settling, poor construction or maintenance, or just wear and tear.
Fixing a leaky parkade can be expensive.
6. Has the elevator been upgraded?
We’ve learned to take elevators for granted; we push the button, they take us to the floor where we want to go. But elevators wear out; all that up-and-down, opening and closing of the doors, pushing call buttons, takes a toll.
An elevator should last 20-25 years but could endure longer if they’ve been regularly maintained.
7. Has the building’s exterior been upgraded?
This question is often dependant on how older condo buildings were designed and built.
If the building is constructed of concrete, with large roof overhangs that prevent rainwater from hitting the exterior, the risk of a leaky building is minimal.
But if the building’s exterior is made of stucco or wood, and it’s exposed to the elements without protection from roof overhangs, you need to check if it has been rainscreened.
What Is Rainscreen?
8. Does the building have a depreciation report?
In 2013, the BC government mandated depreciation reports for every strata with more than four lots. The report is prepared by qualified architects or engineers who are able to assess and determine the short and long term health of the building and its upkeep schedule as well as anticipated costs. The report must be updated every three years.
Strata Documents You Should Read Before You Buy
Reading a depreciation report for older condo buildings can be intimidating; the maintenance schedules are usually pretty proactive and the dollar figures are high. But it’s how the building’s strata council reacts to that report that really matters; is it putting money aside early to deal with upcoming major expenses, does it address minor issues in a timely manner so they don’t snowball into bigger issues?

Older condo buildings can be a great value

Older condo buildings can offer tremendous value. You’re not paying for the flashy marketing campaigns of new developments. A lot of potential problems will have already been worked out. The strata has experience. And units were bigger in the 1970s, 80s and 90s, so you’ll likely get more space for your dollar.

More useful blogs if you’re shopping for a condo

Understanding Strata Fees
Strata Documents You Should Read Before You Buy
10 Tips For The First Time Home Buyer
What is Rainscreen?