Realestock Blog

The Royal Bank of Canada has raised serious concerns that for most people housing is simply too expensive in Vancouver.  

On Monday, RBC released its quarterly report on housing and affordability. According to the report, on average, the typical Canadian homeowner spends 48.9 percent of their household income on servicing the mortgage on a median two-storey home – an increase of 2.1 percent overall due to rising mortgage rates.  

However, in Vancouver it’s a very different story – the proportion of income required to service the mortgage on a median two-story home or a detached bungalow (a smaller starter home anywhere else in the country) has risen to an astonishing 70 percent.  The situation is not much better for owners of apartments or condominiums – servicing the mortgage on a condo consumes 43 percent of household income.

The report singled out Vancouver’s white hot housing market, but it wasn’t to pass around congratulations: "RBC housing affordability measures are very close to their all-time high, which points to significant underlying stress and raises a red flag," said RBC Economist Robert Hogue. “Generally we have dismissed the case of housing market bubbles in Canada, but the situation in Vancouver is probably the closest to one in the country.”

This means the market could take a big hit unless the pressures ease - "very poor affordability is likely to restrain demand in the period ahead," said Hogue. According to the report, BC and Ontario saw the worst deterioration in housing affordability as prices neared the record highs seen in 2008.

Photo: Even condos in Vancouver may be out of reach for most homeowners. Credit: Beaster725, Flickr

Sources: Bank Raises Red Flag Over Housing Affordability, The Vancouver Sun; House Costs Near Record High in BC, The Province; Housing Becomes Less Affordable, The Globe and Mail.

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Any realtor worth their salt knows that the quickest way to freshen up a property is a simple coat of paint. So how can you catch a buyer’s eyes? Painting everything builder’s beige won’t cut it anymore, but a paint job with an on-trend contemporary colour can elevate a property above its peers.

Does this mean you should paint the walls of a small, dark bedroom grey because it’s a popular colour right now? No. To be blunt, that would be stupid. However you could paint it a soft grayish blue, then add some grey and white accessories and capture the trend in a way that works for the space.

So, if you’re looking to improve a space, what are the hot colours for 2010?

Soft pastels like pale pink (yes, pink!) are popular, and don’t have to look girly. The important thing to note is they’re warm and cheerful, but not hyper-saturated. Colour may be in, but it’s muted. This grey and pink living room provides a perfect example.

Blue rules – but like the pinks, they’re not bright – they’re airy and light and take colour cues from aquatic colours like ultramarines and turquoises.  If I had to pick one colour I’ve seen pop up on every “colour trend” list, it would definitely be a turquoise blue. However, keep in mind that light blue isn’t the best colour if your room lacks natural light – a safe bet is to pick a bluish grey, which won’t seem overpowering in bright light, and will play better in a darker room.

Overall colour palettes are ditching cool beiges– warm, earthy neutrals with names like “sand”, “clay” and “mushroom” rule the day – look for infusions of gold, lavender or cream instead of beige if you want to spruce up the paint on a family friendly home.

Grey, grey, grey! It’s a tricky colour to work with, but the rewards are an almost ethereal look to your rooms. Greys can have an undertone of blue, green or even purple, so it’s best to test a grey to see how it looks before you commit. However, when you get a grey right, the results are simply stunning.

Citrus can add a splash to your décor – it could be small hits of a pumpkin colour, or a muted, softer orange as a colour to brighten up a room with neutral furnishings and accessories.

Want more information or a little more help with your paint choices? These are the sources I used to put together this list:

Apartment Therapy - Inspiration from Crown Paints, Colour Me Happy - What Everyone Should Know about Grey, Style At Home - Paint Colour Trends for 2010, Sico Paints Trends for 2010-2011, Apartment Therapy - The Best Grey Paint Colors

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Luxury real estate sales in Canada are soaring, breaking pre-recession sales records as buyers are capitalizing on low interest rates and increasing economic confidence.
RE/MAX released its first quarter Upper End 2010 Report on Monday, showing a marked increase in luxury home sales in markets across Canada. The report noted that, "Canada's sound banking system, political stability, and strong dollar are attracting foreign investment -- and that is spilling over into high-end residential real estate.”

According to Wayne Schrader, a RE/MAX Broker/Owner and specialist in luxury properties on Vancouver Island, consumer confidence is playing a big part in the rallying sales.
“Markets are picking up and turning the corner,” said Schrader. “People are realizing the big recession didn’t materialize in Canada, and at the same time, prices have come down and are much more attractive.”
The Conference board of Canada echoes Schrader’s sentiments - its economic forecasts predict the Canadian economy will grow at a healthy 3.2% in 2010. An upswing in the economy makes the current market conditions even more attractive, as buyers take advantage of the current low interest rates, noted Schrader.
But why have sales increases have been so sharp, in some cases bettering years that were fueled by the white-hot real estate markets of the time? According to Schrader, and the report, they key is balance.
High end property prices have softened from their previous peaks explained Schrader, which can make luxury real estate look like a better investment for some buyers.
“Ample opportunity and a good selection of product exists, and savvy purchasers are taking advantage of favourable conditions,” said the report.
According to the Elton Ash, Regional Executive Vice-President of RE/MAX in Western Canada. the luxury “segment of the market was hardest hit when the recession took hold, yet its comeback has been fast and furious.”
Comparative sales figures back up Ash’s statements. In the first quarter of 2009, high end property sales had slumped - only 411 properties classified as “upper end” were sold by RE/MAX across Canada. This year, the number has leapt to 1,111 - an increase of more than 170%.  Comparing that to 2008’s first quarter sales of 894 high end properties shows overall sales in Canada are still up almost 24% over pre-recession numbers.

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A few weeks ago, we posted an entry with 10 tips on what to include-and how you should take a great set of photos to showcase your property for sale.

While I was writing that particular blog post, I stumbled upon a website known as Lovely Listing.com. Their tagline is ‘Odd Finds in Real Estate’.

After taking a look at the website, I would say that it’s definitely ‘odd finds’ in real estate.There are features, items and issues that should never be showcased in photos to sell a home and yet, are taken by actual real estate agents and homeowners wanting to sell their properties.

As a tribute to Lovely Listing.com, here’s a list of the top 10 features you should never include in photos of your property.

1. Bathrooms with uncovered windows. Now, there may be prospective home buyers who desire to have natural light and air circulating through their bathrooms. That being said, I don’t think they would appreciate having an open window in their bathroom that faces the neighbors and allows them to share the intimacy.
2. Kitchens under renovation. Understandably, many homeowners want to renovate before putting their homes on the market to boost its value. But is it necessary to include a photo time line of every step of the renovation? Buyers want to see the finished product, not the process.
3. Bedrooms with lava-colored carpeting. Now, we understand that that particular carpet color was all the rage back in the 80s. Nowadays though, buyers are interested in modern and contemporary features and lava-colored carpeting just doesn’t cut it.
4. Guns hanging next to the kitchen window. Everyone has their own interests and we’re not discriminating against anyone. But, really, guns? What if the potential homebuyer has children? Not the safe haven we all imagined our dream home would be….
5. A family barbeque on the back patio. Homeowners have lives and the right to enjoy their homes with anyone they wish. But, personal photos of your family memories really have no business being in the real estate listing to sell your home. After all, people want to imagine their family having a meal in the backyard, not yours.
6. Mold in the basement. Common sense tells us to remove all harmful substances or debris from our homes for our family’s safety. Why would you want a picture of the evidence to end up in your listing?
7. House in a bubble. I understand the desire to be creative with your photos. Really I do, but how is putting your house in an actual bubble adding to the appeal? If anything, it does lend itself quite well to jokes about the current housing market.
8. Dark photos of people. I mentioned in the previous post about being careful in including people in your photos. It doesn’t help for a prospective buyer to imagine what their new home may look like with people breaking in.
9. Outhouses in the backyard. See my above comment about the lava carpet, it still stands for this.
10. Living rooms with couches on the ceiling. Remember what I wrote in the previous post about taking a lot of photos so you can fix what’s wrong in the room? This is exactly why you should do that.

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You might remember a blog post where we talked about the Top 10 Tips on Property Photos. We gave the best tips that we could find on how to take-and what to include-great property photos to help sell your listings.

After thinking about it, we realized that photos are not the only element that drives a buyer to a property. So why not expand on that list? Here are the top 10 tips on how to make your listings stand out from the competition (including the photos!)

1. Photos, photos and more photos. We won’t go into detail here, only to say that the higher quality of the photos, the more appealing it is. Refer to our post about property photos for more details.
2. Include special extras. As we said before, photos aren’t the only thing potential buyers are interested in. Think about including a floor plan, maps or photos of the neighborhood to show them where they’d be living.
3. Virtual tour or not? What about a virtual tour? They show more than what photos do and allow house hunters to ‘walk’ through the property and see it for themselves. Think about whether or not there are unique features in the home that you especially want to call attention to.
4. Sales pitch. The language you use in the listing helps as well. Use compelling sales language and make your description as in-depth as possible. Highlight the features, the area and lay it out logically. It has to be accurate right down the spelling and grammar. Consider writing an intro to the listing before getting down the sales pitch.
5. Add more information. Prospective buyers are hungry for as much information as you can give them. Describe the neighborhood, talk about how the home is animal-friendly, or list the price guide.
6. Aim for the top. Look for the premium option in advertising packages. It will help position your listings higher up on the totem pole and catch the eye of more buyers.
7. Take advantage of features. Grab everything you can on paid for positioning, audio, mapping, info sheets and neighborhood data. It’ll put you ahead of the pack in terms of a complete package for buyers.
8. Dare to be different. Does your listing merit a special open house or something else?
9. Stay ahead of the game. Do your research on competition and your market. Could you utilize more features on the portal?
10. Flaunt it. Tell everyone you know about the property. Email it, blog it, tweet it, facebook it, talk about it, make phone calls about it, link to it, whatever it takes.

And finally, make sure your listing is kept 100% up-to-date, and this includes saying when it’s been sold.

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For the first time of what will now be a monthly feature on the site, we are proud to share with you this list of the 10 most viewed property listings on Realestock.com. Each month, we will be bringing you this list of properties which have achieved great popularity and exposure on Realestock to motivated buyers.

1. Mountain Spirit Resort and Spa, Kimberley, BC

Mountain Spirit Resort & Spa in Kimberley, BC is your four season Rocky Mountain playground. Combining a four season skiing mountain residence with the luxuries of a world-class spa and spectacular slope-side restaurant; Mountain Spirit allows easy access to Trickle Creek’s championship golf courses, 1800 acre natural park with over 100km of trails to explore, fly fishing, mountain biking, horseback riding and much more. The nearby Canadian Rockies International Airport makes travel to and from Salt Lake City, Calgary and Vancouver convenient and accessible.

2. Cannery Lofts Condominium, Astoria, OR

Cannery Lofts Condominium has the best river view in Astoria! Walk along the beautiful river walk or watch the ships pass by while lounging on your deck; Astoria has been named the best town to retire to, with its scenic views, quaint shops, historic homes and amazing restaurants. The brand new unit offers: 10’ ceilings, loft design, granite counters, bamboo floors, gourmet kitchen, glass window wall and gas fireplace. The identical unit is currently under construction in Phase II.

3. The Ellington, Oakland, CA

The best address in the Bay Area, The Ellington offers a lifestyle that is anything but the usual. Homes feature elevated nine and a half foot ceilings, hardwood flooring, open kitchens with Bosch stainless steel appliances, sprawling balconies and broad floor-to-ceiling window walls framing impressive Bay views. The high-rise contains an attended lobby with daily concierge services with nighttime security- in addition to a state of the art fitness center, heated pool, spa and community room with a full chef’s kitchen.

4. Dockside Green, Victoria, BC

Dockside Green is a name synonymous with environmental living and is a LEED® Platinum-targeted project. The development is an innovative community of one and two bedroom luxury condominiums, townhouses and penthouses all of which feature environmentally-friendly materials such as renewable bamboo floors, low-flow toilets and energy efficient appliances. The community features solar water heating, small-building wind turbines, a car share program, mini-transit system and a launch area for canoes and kayaks.

5. 1235 East Lake Drive, Fort Lauderdale, FL

This exquisite Fort Lauderdale estate features 20,753 square feet with 9 bedrooms, 9 full and 4 half bathrooms. A gated entry is monitored by a state-of-the-art security system with camera surveillance and infrared sensors to ensure you sleep well at night. Fabulous amenities include a state-of-the-art nightclub, putting green, gym, massage room and spa, wine cellar, infinity pool and 9-car garage. Limestone floors, a clay barrel title roof and Pecky Cypress balconies embellish the luxurious feel of this home.

6. Highbury-Tower Residences at Fish Creek, Calgary, Alta.

Like all three towers, Highbury² gets its inspiration from classical modernism. Quality building materials blend with simple contemporary forms to convey a certain level of sophistication. Highbury² offers a wide range of one and two bedroom suites on its 12 floors, all with den/media room or home office. Highbury’s private amenities building features spa and fitness facilities, theatre with tiered seating, entertainment lounge, hobby and conference rooms, plus an in-building car wash.

7. Prado, Richmond, BC

A stunning landmark in the heart of downtown Richmond, Prado is located across from Lansdowne Centre and mere steps away from the RAV Line Lansdowne station. Each unit features caesarstone countertops, hardwood laminate floors and contemporary wood cabinetry. The units contain fireplaces with granite surround and entertainment-size patios, balconies and roof decks.

8. 987 SE MacArthur Blvd.-Hutchinson Island, FL, Stuart, FL

Located on private Hutchinson Island, this fabulous, charming beach home boasts 75 feet directly on the ocean and 75 feet on the Indian River Intracoastal, with a boathouse and dock situated minutes from the Inlet! With three bedrooms, three bathrooms and 2,800 square feet, this home is private and sunrise to sunset; is the best of both worlds.

9. Colonnade at Kentlands, Gaithersburg, MD

The Colonnade at Kentlands is a luxurious new condo surrounded by shops and entertainment opportunities. Floor plans are remarkably spacious with some offering 20-foot ceilings, staircases to lofts, fireplaces and computer niches. Kitchen islands and large walk-in closets are standard features in each unit, while the building features amenities such as a pool, sauna, wine room, fitness centre, cinema lounge, pub and courtyard.

10. Kanata Ecovillage, Mont-Tremblant, QC

Kanata Ecovillage is an exclusive village offering elegant homes that include all the modern amenities such as a wine cellar and energizing spa. Located just a few kilometers from the Mont-Tremblant resort, residents have easy access to all sorts of outdoor activities, including on-site dog sledding excursions, snowmobiling, fishing, wildlife observation trips and horseback riding.

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The general consensus seems to be that the Canadian Real Estate Market is still one of the least disastrous markets worldwide. However, this doesn’t mean that this is a secure market. Sale prices are declining like everywhere else, and the current semblance of stability is only related to the fact that Canadian lenders and banks were, in previous times, much more conservative than lenders in other countries.

However, the market in Canada is by no means in the same state as it was a few years ago, which is obvious than when you look at a city like Vancouver, British Columbia. Vancouver had some of the most insanely hyper-inflated prices in the last few years, and so now that are fewer buyers, there are a distinct lack of properties being sold, and those that do sell, sell low.

On Friday in the Globe and Mail, Kerry Gold wrote an article misleadingly titled ‘First Time Buyers Drive a Rebounding Market” as it also talks about buyers who are upgrading, as well as those who are first time purchasers. One interesting point about this article, is the reminder that there are certain types of buyers who will always exist in any market, and will be the ones who will stop the it from going into complete cardiac arrest. This is, of course, as long as they are not completely scared off by the onslaught of negativity that currently invades the real estate market. Just joking:

1) First Time Buyers: If you are a first time buyer, this is a great time to get on the first rung of the ladder – but only if you are brave enough to take the plunge, and can get a mortgage. Prices are low, mortgage rates are low, and now with tax advantages ahoy, this is the best opportunity that you’ll get for a while!

2) Growing Families: When one’s family starts getting bigger, the need for more space necessitates the move to a bigger place. Last time I checked, people hadn’t stopped having children, and again, if you bought a while back, you’ll have equity in your property, and upgrading in a low market will not make much of a difference

3) Empty Nesters and other ‘downgraders’: At the other end of the scale, there are people downgrading. As long as one is moving within the same or a similar market, downgrading is not a big problem, as the gap between your lower priced large home, and your lower priced small home should be pretty similar.

4) People who are Relocating: When the job market is not secure, people will move where the jobs are, so this market is almost certain to generate a good deal of relocation. As this is born out of necessity, these people buy and sell in any market!

While this is not entirely newsworthy, it is worth remembering that these kinds of buyers exist in every market, so whatever the economy situation, there will still be these kinds of buyers to keep things going. Think of them like the superman of buyers...come to save us all from certain disaster. Which in the current bad news market is a little piece of good news. Shock horror, eh?

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In the last few weeks, there have been plenty of discussions in terms of whether the new US Government financial stability plans are beneficial or yet another example of throwing away good money after bad (as my grandmother would say). Everyone has an opinion on the various stimulus packages that have been brought forward from both the current and previous administrations.

I have trouble deciding who should be bailed out, and who shouldn’t. No one wants to reward irresponsible behavior with a ton of money, but conversely, there are people who are underwater on their homes through no fault of their own. Many people make snap judgments on people who took out subprime mortgages, but frankly, these people need to get off their high horses. If someone offered you the chance to have something that you thought you could (just) afford, in a housing market that seemed to be on the up, many people would take the chance. Two or three years ago, your average Joe could not have predicted that there would be mass unemployment and an unprecedented drop in home prices.

Bailing out the big banks, mortgage companies, and other corporations leaves a bad taste in everyone’s mouth. Who could forget seeing the CEOs of the big three squirm in their seat when asked whether they would be selling their private jets and returning home via a commercial airline? However, as time goes on, jobs are being lost, houses are being foreclosed, and stock prices are shooting down, something needs to be done.

President Obama’s current packages seem to be taking a different technique from the last administration. While the Republicans’ strategy was more to encourage consumer spending and the growth of businesses, the Obama administration seems more aimed at directly helping consumers, particularly homebuyers.

In the last month, three new strategies have been launched by the administration: The $8,000 tax credit for first time buyers, and the Making Home Affordable Refinance and Modification options. These are available to the following buyers, and are summarized as follows (more in depth information can be found at http://www.recovery.gov) :

$8,000 First Time Buyer Credit. You may be eligible if:

- You are a first time buyer.

- if you have a single income of up to $75,000, or a combined income of up to $150,000 (this will mean you receive the full tax credit of $8,000)

- You bought your home on or after the 1^st of January, 2009, up to the 1^st December, 2009.

Home Affordable Refinance. You may be eligible if:

- The mortgage is on your primary residence

- The loan on your home is a conforming loan, controlled by either Fannie Mae or Freddie Mac

- You are current on your mortgage payments (meaning you haven’t missed a payment by more than 30 days in 12 months)

- You are not ‘underwater’ on your mortgage –(meaning you cannot owe more than 105% of the cost of your home. (But 80% - 105% is OK))

For those not eligible for this plan, there is also the Home Affordable Modification. You may be eligible if:

- The home is your primary residence

- You owe less than $729,750 on your mortgage

- You are in some kind of trouble with your mortgage that is beyond your control at this point: e.g

1) Your mortgage rates were increased significantly

2) Your income has been significantly reduced since you got your current loan

3) You have suffered a hardship that has increased your expenses (e.g. medical bills)

- You began your mortgage before January 1, 2009

What is your view on these packages? Will they help? Will they benefit the economy as a whole, or are they just a temporary band aid over the real issues? What do you think? Will the cost of these measures be more or less than the cost of many, many foreclosures? Feel free to comment below.

The views expressed on the blog portion of this site represent only the opinions of the author and may not necessarily be the opinions of Realestock.com

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In this week's Globe and Mail, the title “B.C. Housing Market in Deep Freeze” caught my eye. To me, deep freeze is not such a terrible thing. For example, say I bake a really delicious pie, and I can’t eat it all. I might not want to eat it that evening, but I still intend to eat it sometime, so I stick it in the deep freeze and defrost it a few weeks later. Granted, it’s not quite as delicious as it was when it was fresh, but it still tastes pretty good.

According to the Globe and Mail, new developments in Vancouver, and across BC seem to be stalling, or stopping completely. Vancouver developer Ward McAllister talks about the fact that no-one appears to be beginning new projects in 2009.

The article goes on to talk about a variety of different opinions as to how this year will play out. Some say that by the end of 2009 the housing market will have returned to some kind of normality, while others are being more conservative, and saying that we have a few more years yet. Many are suggesting that there will be no upturn until a year from now around the time of the Vancouver Winter Olympics in 2010. That’s a long time if you are depending on building-related work. It is estimated that one in ten people in BC works in the construction industry, or in a job related to it. Therefore we are not just talking about obvious job losses, for people like welders, bricklayers or foremen, but factory workers who produce materials, or marketing people who work for developers, or the developers themselves. If there are not any new builds in 2009, there are a number of people who will directly suffer, and then the trickle down will indirectly affect us all.

Some solutions as to what developers and others in construction can do to are mentioned in this Globe and Mail article. They include:

· Building rental apartments

· Selling the land meant for condo developments and such to BC housing, to see if they might want to use the land for public housing projects

These are great ideas. Whether BC housing will take them up on the land offer (if everyone is trying it, then probably not) is debatable, but the idea of building rental apartments is an awesome idea. According to an article I read in Forbes a while back, housing and building supplies are coming down in price, so developers could use these now less expensive materials to build decent apartment housing (a rarity in many BC cities, I’m talking about you, Victoria) which will provide an income, and can be sold when the market upturn happens, whenever that is.

The Globe and Mail talks about some developers who have made enough money in the past to ride this out. Many of them are planning more complex, intensive sites, which require more permits and planning than regular condo developments. Planning for the future is another good way, as long as one can afford it, and still be around when it comes to building it!

In terms of terrifying headlines, in my opinion ‘deep freeze’ is better than ‘recession’ ‘downturn’ ‘crash’ and my personal favourite ‘depression’. It implies that that pie is going to be in the freezer for a long time, but eventually, we’ll be able to defrost it, and get on with things…and I for one am getting the ice cream ready.

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