Month: November 2017

More rent increases for Vancouver in the near future

Oleg Articles, Opinion, Videos

We have seen countless number of news stories about unaffordable rental rates in Metro Vancouver. It’s a hot subject in the media and with local politicians. The rent has been steadily increasing for a long time. But it seems that in the last coupe of years it has really “shot up”.

Local residents don’t know how to deal with such rent increases. There even is a tenants union that has been created back in April of 2017.

City of Vancouver is trying to deal with a problem by passing a foreign buyers tax, a vacant home tax and regulations for short-term rentals. Last week the city has released their 10 year housing strategy. The new strategy will encourage developers to build more rental suites within their “for sale” buildings. It will also promoted more co-ops and affordable living units. Many critics says the new strategy is not aggressive enough. But it’s a good start.

In my opinion, the rental rate increases we’ve seen in the last 4-5 years are not the end of it. CBC news wrote an article about the rent increases in the last 5 years. This article also includes census of rental increase by a neighbourhood in Metro Vancouver from 2011 to 2016. Most neighbourhoods went up in rent by 30-50%. That’s a big increase in only 5 years. Full article: here.

Condo prices in the last 12 months in most Metro Vancouver neighbourhoods have gone up by 30-45%. These price increases will have upward pressure on the rental market. I think we are going to see huge rental rate increase in the next 24-48 months and beyond. And the real estate condo market is not showing any signs of slowing down in the near future.

I would not be surprises to see 50-60% increase in rental rates in Metro Vancouver over the next 3 years. Especially since we are currently at close to zero vacancy rate.

All of the proposed and implemented changes and taxes are a good steps but they are too late. The city is reacting to the huge price increases that already took place. The bottom line is that huge rental rate increases are not over. Even if the real estate market prices don’t increase any more, we will still see an increase in the rental rates as a reaction to the condo market price increases that already took place.

What you need to know about the new AirBnB regulations in Vancouver BC

Oleg Articles, News, Videos

 

On Tuesday November 14th, city of Vancouver has approved regulations making AirBnB rentals legal to operate within city limits. Vancouver is the first major Canadian city to regulate short-term rentals. Starting April 2018 homeowner will have to become part of city’s new regulatory regime for short-term home rentals, approved by council last week.

To become a part of cities licensing system will cost a one time activations fee of $54, plus $49 per year for the licence. All postings on AirBnB will have to include the homeowner’s licence number. If homeowners choose to operate without a licence they can face a fine of $1,000.

All income from short term rentals will have to be reported to Canadian Revenue Agency. Even if the generated income is very small. AirBnB said that they will not share personal information, and address of hosts with the CRA. But the the City of Vancouver will have its own list of names and addresses of short-term rental hosts. The city said Friday that information will be shared, upon request, with the CRA and other government agencies.

Here is in my opinion the most important and the most controversial regulation: individuals will be allowed to rent only their principal residences. Suites in basements, above garages or in coach houses can no longer be offered as short-term rentals.  In other words the city of Vancouver wants homeowners to rent out their basement suites and laneway houses for long-term rental leases instead. Penalties for not complying with this regulation are still nuclear.

The city is hoping that all of the regulations for short-term rentals will create more long-term rentals for the local residents.

There are still a lot of questions to be answered about those new short-term rentals regulations and the over all success of the licensing program. I will centrally do more blog posts on the topic in the future.

Condo Market Update for Burnaby BC – October 2017 (1 bedroom & studio)

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

Burnaby condo market update - october 2017

Here is a closer look at 1 bedroom and studio condo units in Burnaby BC in October 2017. This market update will only focus on strata properties; detached houses are excluded. New construction buildings are also excluded.

Average Sales Price

Average Sales Price of one bedroom condos in Burnaby in October 2017 (see graph below)

Burnaby East: $459,000 | +16.2% (change since October 2016)

Burnaby North: $449,457 | +32.8% (change since October 2016)

Burnaby South: $483,581 | +37.2% (change since October 2016)

Average Percent of Original Price

Average Percent of Original Asking Price of one bedroom condos in Burnaby in October 2017 (see graph below)

Burnaby East: 98.3% | -3.2% (change since October 2016)

Burnaby North: 102.1% | +4.9% (change since October 2016)

Burnaby South: 101.5% | +2.9% (change since October 2016)

Average Price Per Square Foot

Average Price Per Square Foot for one bedroom condos in Burnaby in October 2017 (see graph below)

Burnaby East: $745 | +30.7% (change since October 2016)

Burnaby North: $674 | +39.5% (change since October 2016)

Burnaby South: $744 | +41.7% (change since October 2016)

Total Inventory

Total Inventory of one bedroom condo units in Burnaby in October 2017 (see graph below)

Burnaby East: 3 | -50.0% (change since October 2016)

Burnaby North: 26 | -21.2% (change since October 2016)

Burnaby South: 25 | -21.9% (change since October 2016)

New Listings

New Listings of one bedroom condo units in Burnaby in October 2017 (see graph below)

Burnaby East: 2 | -33.3% (change since October 2016)

Burnaby North: 28 | +33.3% (change since October 2016)

Burnaby South: 29 | +20.8% (change since October 2016)

Sales

Total Sales of one bedroom condo units in Burnaby in October 2017 (see graph below)

Burnaby East: 2 | +100.0% (change since October 2016)

Burnaby North: 27 | +35.0% (change since October 2016)

Burnaby South: 37 | +60.9% (change since October 2016)

Sales to Actives Ratio

Sales to Active Listings Ratio of one bedroom condo units in Burnaby in October 2017 (see graph below)

Burnaby East: 0.667 | +299.4% (change since October 2016)

Burnaby North: 1.038 | +71.3% (change since October 2016)

Burnaby South: 1.480 | +105.8% (change since October 2016)

In conclusion, the real estate market for condo units in Burnaby is still incredibly hot. A lot of units are selling over the asking price with multiple offers. We also see month after month a decreasing number of total inventory.

Detached Housing Market Update for Burnaby BC – Oct 2017

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

burnaby housing market update October 2017

Here is a closer look at the detached housing market in Burnaby BC for October 2017. Strata properties are not included in this post. Only resale properties are included in the statistics.

Average Sales Price

Average Sales Price of detached houses in Burnaby in October 2017 (see graph below)

Burnaby East: $1,506,750 | +23.7% (change since October 2016)

Burnaby North: $1,637,068 | +1.4% (change since October 2016)

Burnaby South: $1,744,347 | -3.0% (change since October 2016)

Average Percent of Original Price

Average Percent of Original Asking Price for detached houses in Burnaby in October 2017 (see graph below)

Burnaby East: 98.5% | +0.5% (change since October 2016)

Burnaby North: 96.5% | +2.3% (change since October 2016)

Burnaby South: 94.6% | -1.5% (change since October 2016)

Total Inventory

Total Inventory for detached houses in Burnaby in October 2017 (see graph below)

Burnaby East: 65 | +14.0% (change since October 2016)

Burnaby North: 196 | +1.0% (change since October 2016)

Burnaby South: 231 | +2.2% (change since October 2016)

New Listings

New Listings of detached houses in Burnaby in October 2017 (see graph below)

Burnaby East: 22 | -4.3% (change since October 2016)

Burnaby North: 60 | 0.0% (change since October 2016)

Burnaby South: 75 | +25.0% (change since October 2016)

Sales

Total Sales for detached houses in Burnaby in October 2017 (see graph below)

Burnaby East: 4 | -33.3% (change since October 2016)

Burnaby North: 37 | +76.2% (change since October 2016)

Burnaby South: 46 | +170.6% (change since October 2016)

Sales to Actives Ratio

Sales to Active Listings Ratio for detached houses in Burnaby in October 2017 (see graph below)

Burnaby East: 0.062 | -41.0% (change since October 2016)

Burnaby North: 0.189 | +75.0% (change since October 2016)

Burnaby South: 0.199 | +165.3% (change since October 2016)

In conclusion, detached housing market in Burnaby is a balanced market. Houses are still selling but the prices are not increasing, for the most part. We see average for the season inventor levels and sales numbers.

Downtown Vancouver condo units market update – October 2017 (1 bedroom & studio)

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics
Downtown Vancouver condo units market update – October 2017 (1 bedroom & studio)

downtown vancouver condo market update October 2017

Let’s take a look at one bedroom and studio condo units in downtown Vancouver in October 2017. This real estate market update will focus on resale strata units. New construction is not included. For detached properties see a separate post.

Average Sales Price

Average Sales Price of ONE bedroom condo units in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: $1,029,049 | +87.5% (change since October 2016)

Downtown VW: $653,133 | +21.9% (change since October 2016)

West End: $750,659 | +26.4% (change since October 2016)

Yaletown: $611,579 | +13.4% (change since October 2016)

Average Percent of Original Price

Average Percent of Original Asking Price of ONE bedroom condo units in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: 100.5% | +3.8% (change since October 2016)

Downtown VW: 102.5% | +3.0% (change since October 2016)

West End: 99.5% | +1.5% (change since October 2016)

Yaletown: 100.1% | +0.5% (change since October 2016)

Average Price Per Square Foot

Average Price Per Square Foot for ONE bedroom condo units in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: $1,394 | +52.2% (change since October 2016)

Downtown VW: $1,091 | +22.7% (change since October 2016)

West End: $1,151 | +18.9% (change since October 2016)

Yaletown: $996 | +25.1% (change since October 2016)

Total Inventory

Total Inventory for ONE bedroom condos in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: 12 | -57.1% (change since October 2016)

Downtown VW: 55 | -67.8% (change since October 2016)

West End: 33 | -31.3% (change since October 2016)

Yaletown: 36 | -26.5% (change since October 2016)

New Listings

All New Listings of ONE bedroom condos in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: 7 | -30.0% (change since October 2016)

Downtown VW: 64 | 0.0% (change since October 2016)

West End: 41 | +57.7% (change since October 2016)

Yaletown: 30 | +30.4% (change since October 2016)

Sales

Total Sales of ONE bedroom condo units in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: 8 | +60.0% (change since October 2016)

Downtown VW: 48 | +14.3% (change since October 2016)

West End: 30 | +20.0% (change since October 2016)

Yaletown: 24 | +71.4% (change since October 2016)

Sales to Actives Ratio

Sales to Active Listings Ratio for ONE bedroom condo units in downtown Vancouver in October 2017 (see graph below)

Coal Harbour: 0.667 | +272.6% (change since October 2016)

Downtown VW: 0.873 | +254.9% (change since October 2016)

West End: 0.909 | +74.5% (change since October 2016)

Yaletown: 0.667 | +133.2% (change since October 2016)

In conclusion, downtown Vancouver condo market is still a very strong seller’s market. Average selling prices continues going up. Month after month we see record breaking numbers. No sight of slowing down for the Vancouver condo market.

Vancouver detached housing market update – October 2017

Oleg For Buyers, For Sellers, Market update, News, Statistics

Let’s take a look at the detached housing market in Vancouver BC in October 2017. We will be looking at detached properties only.

Average Sales Price

Average Sales Price of detached houses in Vancouver BC in October 2017 (see graph below)

Vancouver East: $1,666,965 | +7.7% (change since October 2016)

Vancouver West: $4,285,891 | +20.8% (change since October 2016)

Average Percent of Original Price

Average Percent of the Original Asking Price of detached houses in Vancouver BC in October 2017 (see graph below)

Vancouver East: 97.8% | +1.1% (change since October 2016)

Vancouver West: 92.4% | -1.2% (change since October 2016)

Total Inventory

Total Inventory of detached houses in Vancouver BC in October 2017 (see graph below)

Vancouver East: 760 | +2.3% (change since October 2016)

Vancouver West: 790 | +17.0% (change since October 2016)

New Listings

All New Listings of detached houses in Vancouver BC in October 2017 (see graph below)

Vancouver East: 235 | +3.5% (change since October 2016)

Vancouver West: 201 | +26.4% (change since October 2016)

Sales

Total Sales for detached houses in Vancouver BC in October 2017 (see graph below)

Vancouver East: 103 | +63.5% (change since October 2016)

Vancouver West: 99 | +28.6% (change since October 2016)

Sales to Actives Ratio

Sales to Active Listings Ratio for detached houses in Vancouver BC in October 2017 (see graph below)

Vancouver East: 0.136 | +60.0% (change since October 2016)

Vancouver West: 0.125 | +9.6% (change since October 2016)

In conclusion, based on sales to active listings ratio both Vancouver East and Vancouver West are balanced markets. Detached housing market prices in Vancouver are stagnant.  It will be interesting to see how the market will react to the new “stress test” in early 2018.