A new car loses part of its initial value as soon as it is driven off the lot. Is this also applicable to real estate, and if it is, should you be concerned?

The development and new construction market, for a couple of years now has been sluggish. However, new constructions are now able to access lending from banks and the developers are in full gear with regard to building. Indeed, new homes in Port Coquitlam are coming up and new home builders in Port Coquitlam are taking advantage of this. In San Francisco, New York and other major cities, there are a number of new projects which are in various phases of planning, development, construction and sale. In the country and suburbs, national home builders having large land parcels are getting ready to work on communities of new homes, as evidenced with the new developments Port Coquitlam and the environs.

Of course, the buyers within any market will be making inquiries and comparisons whether to purchase a new home or a used one. Today, buyers are faced with the option of choosing between pre-existing and brand new homes. Some of the considerations you may have when faced with such a choice include;

Generally, real estate appreciates

You will quickly notice from any given chart that the values of real estate basically rise over a period of time. Therefore, do not be too concerned about the resale value of your home in case you can make a commitment of five to ten years and are in for the long haul. In today’s world that is highly mobile on the other hand, it may be much harder to realize any increase in the value of your home if it is sold too soon. It might be advisable to opt for renting in case you are uncertain about your commitment to a new or used house for a minimum of five years.

Is the theory on new cars ever applicable?

You may be thinking that it will be easy selling a home that is 5-10 years and that you will not have any problem. However, you may find that a buyer faced with the option of a used home and a brand new one will quickly opt for the new one if they are able to afford it. Given the two homes therefore, with the same location and floor plans, it is likely that the new home will fetch a higher price. The new car theory, in this case, may hold some truth for the owner of an older home; it may be seen as applicable to real estate as well, that a purchase depreciates the value of the property over time.

The reality here is that you cannot simply compare the value of a new home to your own; it is not like comparing one apple to another. It is important however to put into consideration the original purchase price of your home, even if it is much lower than a nearby newer property. Remember that at the time you bought it, the purchase price was mainly influenced by the fact that the house was new and also the values that are associated with new homes as opposed to older homes. In essence, the bottom line is that even if your home is not worth the same amount of money as a similar new home, the likelihood is that it has appreciated since the time it was purchased along with the greater market.

Maintenance of an existing vs. a new home

Any new home, for instance a townhouse for sale in Port Coquitlam, will have warranties not only for the systems and appliances, but also from the developer. It is likely that a developer who is good will have at least one year standing by his work. This means that in case there is a window that is leaking or a floorboard or tile that is broken, then the developer will want to rectify the problem without charging you. A home warranty will always be available through a 3rd party. However, any buyer of the home that is five years old is not likely to enjoy the benefit of warranties in place from the original manufacturer at the point when the house was built.

A lot of buyers do not want the problems associated with homes that are fifty or a hundred years old. Nevertheless, there is a lot of truth when they say that homes today are not made like they used to be made any more. For example, it would be almost impossible, indeed financially unfeasible for anyone to construct a house in the Frank Lloyd Wright style or an Italian Stick Victorian house. Owning a historic house therefore has some intrinsic value. There are very few such homes and they are set apart by their uniqueness. Any buyer desiring to sell will highly likely find that such a home has more value than other newer, comparable properties. In contrast, if you have homes for sale in Port Coquitlam, for instance you may be selling a two-bath standard floor, two-bedroom plan home, you will be competing with a number of other homes that have been built at around the same time with similar materials. It may be required of you to do something extra for your home to stand out in order to attract buyers.

Let the home be first and investment second

Notice that people do not stop buying brand new cars, irrespective of the fact that each new car loses value the very moment it is driven out of the lot. And it should not stop them anyway. There is, after all a lot that can be said about the extended warranty that comes with the car, and the new-car smell, as well as the feeling of being the first owner. A lot of people spend lots of time in their cars. They perceive it as something that they should be comfortable in and enjoy – as a necessity.

The same concept applies to a home. It is good to know your investment in due time and understand your home’s value; however, you should not be obsessed over it. If you find the home appropriate with regard to your timing and situation, then go ahead and buy it, whether it is a new home or an old one. You are going to spend most of your time there and you will make many memories at your home. It will be the place you will retire to daily after a long day’s work or after a long business trip. It will first be your home then secondly, your investment.

The post Is Buying a New Home Like Buying a New Car? appeared first on Pacific New Homes.

When building a new home, you most likely would be interested in learning how much you will spend in the project before making your final moves. Assuming that you already have the blueprints and piece of land ready, most construction companies charge you per square foot hence understanding this criteria is core in helping you gauge how much your new home would cost you.

To estimate the cost of your new house, you could make a per square foot comparison with other identical houses in different places of the country. Even though it will give you an idea of how much you will spend on the project, the fact that it is a subjective comparison makes it less accurate in real life.

An expert with a few hints here and there could give you an estimation of the cost of a house. For instance, talking of a 2500sq feet house with custom fittings could total to $250,000. This could however be an underestimation if the house will feature exotic wooden floors and perhaps a drawing or two over the ample fireplace. Nonetheless, the fact that finding out what both the land and a house of similar specs to what you have in mind costs in the region should give insight into the magnitude of your project.

Other than the mere size of the house, some other important factors would help gauge the expenses you would incur in setting up the house. These include:

The Design of the House

Though the house size-cost relation is straightforward (the bigger the more costly), gauging the price of the house out of the design is trickier. There are places in the house that will cost less per square foot. For instance, a kitchen that will need cabinets, countertops and plumbing fixtures would cost more than that in a sitting room that would just need a few tiles and perhaps a king size bed.

This means that a house design that minimizes on the low cost per foot parts of the house without touching the dear parts might not really have a significant impact on the price of the house. Coming up with a design that optimizes on the expensive parts of the house and makes them as small as possible without making the place cramped whilst compensating on the loss with other places will help you get the best out of your home budget.

Architectural Complexity

The simpler the design the less you will spend in implementing it. Since gauging the effect of a design is more of a professional task than it is of an opinion, it is always an issue of discourse amongst many prospecting property owners. A good way to explain this is in the fact that a one floor French country home will cost less than a two-story colonial home even though both will have the same square feet count.

The difference is from the fact that you need a stronger foundation and more supporting beams to put up a story building, things that would be unnecessary on a flat house. The architectural issues that the constructor has to overcome in order to actualize your new house dream should therefore determine the amount you finally spent on your new house to be. Complex shapes will therefore cost you more to put up than simple implementations.

Whilst the colonial home will cost more concrete and structural iron in comparison to the French house, the fact that you might need to invest more on timber and roofing material for the latter could offset the price different balance especially if one of the two specific commodity groups needed for each of the houses significantly differ in price.

Furnishing

For a good comparison, we again have to go back to the allude of a Colonial house only that we will take two of these with different square foot counts. One will have a $500 tub in the master bedroom and another will pack a staggering $5000 whirlpool tub. Without even going into more bathroom furnishings like wall to wall mirrors and exotic toilet seats, we have already created a notable $4500 difference in prices regardless of the overall bathroom size.

Adding a few touches of hardwood, brassware and some marble and you will have the price per square foot of the bathroom shoot from a mere $2 per Square foot to a whopping $140 which under most circumstance might be way beyond your budget.

Since the finishing of the houses and your fixtures determining over 30 percent of the total house cost, carefully putting these things into consideration will help you make the best inferences about the price of your new home. If you want something exotic, you might have to make tradeoffs. For example, put the expensive stuff into the master bedroom and look for acceptable but cheap stuff to occupy the rest of the house.

Beware of the Budget Creep

This is a common thing to most projects. As you add new features into the plan, the overall price keeps on escalating until one day it will be way above what you had in mind. They happen gradually since they are a result of each individual decision you make hence being careful from the word go could stop your project from stalling.

How to avoid it

For beginners, never start a project unless you fully understand what will go into it through to the end. Do not assume that architect knows what you want. Paying attention to every flimsy detail or hiring a professional interior design would give you a better insight into the project.

In addition to this, insisting on detailed and realistic blueprints will put everything into perspective avoiding the need for extra and unexpected costs from construction crop ups. Every steel rod specification should be included in the blue print, and so should the diameters of the pillars. This will make the project more predictable than it would be when you work on bare estimates.

Coupling this with an open and flexible mind will teach you to have a tenacity budget limit to accommodate for any changes. In addition to this, letting your professional interior décor or architect know about your project budget constraints will always keep you within scope.

The post Understanding the Construction Costs appeared first on Pacific New Homes.

Due the demand for rental houses in large metropolitan areas such as Port Coquitlam, construction firms are building many new townhomes, apartment buildings and condominiums among other types of real estate. However, when looking for Port Coquitlam real estate for sale, it is essential not to rush your purchasing decision, particularly when looking at new apartment buildings. Making repairs on a new property can be a great inconvenience and it can also be very expensive.

It is common to find problems in new homes in Port Coquitlam. The main reason for this is the cost cutting strategies that developers or contractors often use. Serious defects can also bring about lawsuits and expensive repairs that in turn cause rental prices to rise. Therefore, before inventing in a real estate property, you should have it inspected. This will let you know if there are defective spots on the newly constructed building. It is wise to work with an inspector who is reputable. A good example of such an inspector is one who works for a professional organization. Make sure that you get the house inspection report in writing. The following are some of the most common defects found in townhomes for sale in Port Coquitlam.

Facade Leaks

Façade leaks are very common defects in new buildings that utilize unique or creative designs. These buildings may have exterior façade defects like leaking walls and unsealed windows. These construction defects raise the likelihood of water entering into the building. This may lead to additional structural problems that cost a lot of money to repair.

Problems with wood flooring

Even though wood floors are less costly to maintain when compared to carpeting, you can spend a lot of money in repairing them if they are incorrectly installed. Floors made from natural wood need to set and acclimate to the environment before they are installed. Even though this has taken place, wooden floors can contract or expand as a result of changes in moisture. Warping can also take place due to leaks from ceilings or walls. Therefore, it is essential to have the building inspected for problems with the exterior façade.

Problems with airflow and ventilation

Airflow and ventilation issues are common in high-rise buildings. Since high-rise buildings are sealed from the exterior, once the heating system is on, hot air in the lower floors is drawn through different units and rises through the halls. This creates negative pressure. In order to prevent this problem, proper ventilation and exhaust systems have to be installed. When inspecting condos Port Coquitlam, inspectors should utilize an anemometer to check the wind speed, air speed and pressure.

Substitutions

At times, building plans do not specify which features should be used. For this reason, developers may substitute items that appear similar in appearance or quality with other lower priced items. It is not easy to prove that a particular feature is of a better quality than another. In most cases, new home builders in Port Coquitlam substitute high quality features for lower quality features in order to reduce contraction costs. This can result in inferior quality of construction.

Leaking windows

The windows on homes for sale in Port Coquitlam may develop leaks and drafts if they were not installed properly or as a result of debris settling. This problem can be prevented by cleaning the windows regularly. It is also essential to wipe away all the grime from windows after construction activities are over.

Fire sealing defects

In most new developments Port Coquitlam, the apartment halls have fire doors and are equipped with fire extinguishers. Another important fire precaution feature is the fire stopping seal. Fire stopping seals go around ducts, conduits and pipes that in turn go through fireproof walls and floors. Fire sealing defects around fire stopping seals are a common occurrence and it is not easy to detect them.

Conclusion

There are many other defects that a professional inspector can look for such as the condition of electrical, heating, plumbing and air conditioning systems. He or she can also inspect the basement of a real estate property. The basement should be clean and free of clutter. By hiring an inspector, you can be able to make the right decision as to whether to go ahead with the decision to purchase a home or to continue viewing other townhouses for sale in Port Coquitlam. You will also be able to gauge the extra costs of possible upgrades or repairs. If something needs to be replaced or repaired, you can negotiate with seller to lower the price.

The post Defects to Look Out for When Searching for Port Coquitlam Real Estate appeared first on Pacific New Homes.

Many people assume that they can’t afford their dream home: Cozy, spacious, comfortable, and complete with features that you can’t compare with anything else; like slate countertops, an island range with stainless steel hoods, and rustic beams installed on the ceiling.

And also some super cool light fixtures along with tiled showers with 2 shower heads. That’s the dream.

You know you cannot afford that home because there’s no new home builders in Port Coquitlam building one for less than a biodoesel powered truckload filled with Krugerrands.

Many know that the best way to lower construction costs of homes for sale in Port Coquitlam is by stripping the niceties away. Reasonably price houses on sale are disposable vinyl, Styrofoam junk, or old piles of drywall and bricks.

You’re half right. Typical builders’ spec house price goes to the stratosphere because of adding so many goodies. But thankfully, you’re half right as well! The reason many homes are ridiculously expensive is because they’re quite poorly planned.

Plan better, and you could get what you need and keep your extra funds in your bank for that gorgeous Port Coquitlam real estate for sale property.

7 Ways to Beat High Costs of Home Building:

1) Smaller Is Better (Really?)

Obviously, getting a house property that’s smaller will be less costly. However, randomly hacking out everything you want also isn’t the approach you should have. Think carefully about the redundancy and what you need and what you can sacrifice. Extravagant things aren’t necessary but kitchen dining table furniture is.

The majority of these things can be combined to one space that’s nice and large enough for your family. Think about furniture and how the arranging should go and think about what the rooms will be used for.

Smartly eliminate what’s not needed, and save money by not over thinking the process.

2) Efficient Uses Of Building Materials

Back when really smart people figured out that if all building materials were designed on one common module, they would not have to waste or use them so much. Sheets of plywood and drywall both are 4 feet wide and 8 feet tall. So that will work only on 8-foot x 16-foot walls.

Plenty of wasted material if used on the wrong walls!

Structural lumber for your floors come from the mills in 2-foot increments. Think of whose idea it was to make the rooms bigger than needed. Design your home on the property’s established modules and stop overcompensating.

3) Use It Only Where It Counts

I once went to Steve Wynn’s Las Vegas Treasure Island Resort and was so impressed with the decor and atmosphere. Steve Wynn however is worth $2 billion, therefore he has the ability to splurge like that. Be practical and smart, because your kids can live without granite bathroom floors and solid brass faucets.

Pick where you want the nice stuff to go and save your money by not placing them everywhere in your house.

P.S. Steve Wynn now has his $2 billion plus the hundred dollars he got from me.

4) Designing for Low Maintenance

This may seem like a paradox: Go spend more here and save later. Cheap roofing, windows, and siding will cost more in the future than the quality components will right now. There are industries that hope you buy replacement windows and materials everyday, as that’s how they make their millions.

Quality is the key tortoise, so do it right always the first time.

5) Significantly Lower Energy Bills

This rule goes beyond insulation, geothermal systems, and Argon-filled glass, and is the subject of another article later one. Don’t make any mistake by designing a home that’s not site- or climate-specific and force it to be energy efficient so you can address less than 50% of the issue.

The main problem you have to solve is the DESIGN that responds to site and climate. For instance, don’t place walls of glass if you always experience winter winds

Like 7th-grade geometry, a square encloses more with less perimeter. You probably never thought you needed that knowledge in the future, so go on and thank your math teacher in middle school as they saved you a lot of future home planning pain and suffering. Try your best to enclose your brand new highly efficient floor plan inside of a relatively square footprint so that you can reduce heat loss with much less building materials used.

When you do this all right and properly, you can then get a nice big bonus every month because of your energy efficient home that will not require any expensive geothermal heating systems that happen to be 3 times the cost of a regular convenient furnace.

Bonus #2 those square boxes happen to be much better looking, so continue reading.

6) Boxy Is Beautiful

We currently have millions of truly great looking homes available in this country, and though most of them were built 70 years ago or so, they still are breathtaking. The builders and designers of the very first American suburbs were actually experts when it came to making unique yet simple houses that were attractive and elegant.

Good-looking houses are often based off of the simple box forms which are composed, detailed, and properly proportioned.

Today, there are way too many designers out there that compensate from their lack of knowledge and skill by just loading up the exteriors with as much designs as they can get even though it won’t mesh well together. A lot of money is spent, and no one can benefit except the home builder and the window replacement guy.

Keep your home forms very simple and you will save a lot of cash on your building materials. Look at early 20th century suburban homes to get inspiration, as they can help you capture that elegant yet simple look. You will have a much nicer looking home that you will not regret whatsoever if you do so.

7) Good Designing Sells

Since we’re already talking about energy efficient, low maintenance, less expensive, smaller and good looking homes, guess what? They happen to sell faster and for quite a lot of money as well. Your property will increase in value allowing you to sell it for more than you got it for!

My favorite story would have to be from my client who 8 years later was able to sell his house in just 2 weeks without the use of an agent, and the best part is that he sold it for two times of what it initially cost him. He just stuck the sign out up front, and the buyer said it was breathtaking and very functional, while also being intrigued by the floor plan and exterior design. He sold the property without any problems. So how happy do you think he is now about investing in better design?

The post 7 Ways to Beat the High Cost of Home Building appeared first on Pacific New Homes.

The real estate market is improving, and it is an ideal time to consider new homes in Port Coquitlam. The problem though is that there are quite a few people looking for such homes right now. The number of homes on the market is small in that area, and that means they can go very fast. The good news though is that there is plenty of land where construction is being started and new homes will soon be erected.

MLS may not List Them

When you are looking for new homes for sale in Port Coquitlam, keep in mind that they may not show up on the MLS. If that is the only place you are looking for home for sale, you are limiting your options. The reason they aren’t listed is that these homes being built typically aren’t sold through a real estate broker agency.

Instead, they are sold through representatives that are on site. This helps them to control who they are sold to. It also helps them to keep overhead costs as low as possible. After all, their goal is to make a profit. Another reason that the listing may not be on MLS is that the builder simply isn’t a member.

Take some time to look into new home builders in Port Coquitlam. Talk to a representative to find out what they are building. Go to sites where they have open houses and look around at the models. This is a great way to determine if you would like to buy what they are building before it is even completed. Spend some time looking around online and in local newspapers to see what has been listed. Zillow is one of the common online sites to check.

If you wait too long, what they are building can all be completely sold before you even know about it! This is a common scenario involving townhomes for sale Coquitlam. You certainly don’t want to miss out so keep your eyes open! Pay attention to those billboards around town too. They offer great information about new developments Port Coquitlam that are on the horizon.

Sells Often Occur During Building

If you thought that Port Coquitlam real estate for sale was only offered after it was built, you are mistaken. In fact, more and more of it is occurring during the building of the residential areas. The builder is able to finance the construction, often with the sales process outlined too. They want to sell what they can before they build to eliminate the risk that they have funds tied up in property that doesn’t sell.

This process can also help them to generate some funds to use during construction. For example, if you pre-purchase condos for sale in Port Coquitlam, you may be asked to make a deposit on it. The dollar amount can vary based on the lender involved. It can be a set dollar amount for each condo or it may be a percentage of the purchase price.

Selling condos Port Coquitlam in phases is a common practice. It also allows the buyers to have a date for when construction will be done and they can move in. Buy in the first phase if you can, because the cost is only going to go up if the builders know that they have a demand for them.

Buyer Discounts

If you buy your new home early, you may qualify for some discounts. This is because the builders need to be able to get some homes under contract. Then they can proudly advertise that they already have 10 or more sold before they are even built. This further fuels the fire for other potential buyers to get busy with a purchase too. It also enables the builders to secure the backing of their lenders due to the reduced risk of the property not selling.

As a buyer, this early stage is a prime time for you to negotiate. You can save thousands if you offer a price that is less than they are asking. It doesn’t hurt to try and see what they will accept. The worst case scenario is that they come back with a counter offer and you have to increase that price.

No Emotional Connection

There are plenty of memories that develop when people live in a place for any length of time. This is why they often ask too much for it – they have an emotional value attached to it. Builders aren’t going to have that. They are involved in building so that they can generate a profit. They are involved in a business transaction, such as townhouses for sale in Coquitlam, so that they can also meet the demands of consumers.

It is all about completing the building, selling, making money, and being able to invest in the next project. From a builder’s point of view, quickly completing the transaction with a townhouse for sale in Port Coquitlam is the ultimate goal.

Upgrades

Along the same lines as discounts, there may be offers of upgrades. These are typically offered towards the end of the sales. When the crowd of buyers has diminished, the builders are looking at what they have left to sale. Now they have to come up with a promotional means that will get those remaining entities sold. Some of these upgrades can include furniture, upgrades of appliances, or even a rebate to assist with closing costs.

If you are interested in buying a home or other property in Port Coquitlam, take some time to see what your options are. Perhaps you are worried about buying a home due to the upkeep costs. Keep in mind when it is a few property that has been built, there shouldn’t be any types of maintenance for the first several years. This gives you time to put money away for future expenses.

There are plenty of options for buying a home in Port Coquitlam. Explore them to find the prefect fit for your own needs. Getting involved in that purchase process early means you can get exactly what you want, for the right price!

The post New Home Construction – 5 Things you Should Know! appeared first on Pacific New Homes.

Port Coquitlam possesses all the merits of a major urban place while retaining its village character. Most people are attracted to bringing up their families in a pleasant, lively community while being near to all the services found in the city.

Most of the town houses in Port Coquitlam provide open floor plan, and high ceiling that are distinctive of the town house design. The spacious sense of this plan permits the owner to have the sense of a separate sole family property, without the maintenance and work needed for a sole family yard and garden.

The vision of this blueprint is to generate a space friendly to pedestrians. The strategy also calls for growth of human gauge buildings that prevents the construction of buildings that blocks the lovely views of mountains, rivers and the lavish vegetation of this amazing town.

Port Coquitlam townhomes also possess a maintainable outlook, with most offering Green construction materials and design. Port Coquitlam has a green stewardship history and has been advancing in its method in coming up with projects that create a balance between eco-centric design and growth. This may include among others well insulated properties, having high energy efficiency appliances, doors, windows as well as maintainable materials for the construction.

Port Coquitlam has very easy access to the greatest amenities for instance outdoor recreation, entertainment, attractions, shopping and also best schools and job opportunities. This makes Port Coquitlam a great place to stay, raise a family and work.

The area offers great playgrounds and local parks including recreational areas and ball fields, making Port Coquitlam real estate attractive for families having young children.

The post Port Coquitlam New Amazing Homes! appeared first on Pacific New Homes.

The Real Estate Board of Greater Vancouver reports that residential property sales in Greater Vancouver reached 2,661 on theMultiple Listing Service® (MLS®) in October 2013. This is a 37.8 per cent increase compared to the 1,931 sales recorded in October 2012, and a 7.2 per cent increase from the 2,483 sales recorded in September 2013.

New listings for attached, detached and apartment properties in Greater Vancouver totaled 4,315 in October 2013. This represents a 0.2 per cent decline from the 4,323 new listings reported in October 2012, and a decrease of 14.2 per cent compared to the 5,030 new listings reported in September of this year.

Last month’s sales were 2.8 per cent above the 10-year sales average for the month, while new listings for the month were 1.9 per cent below the 10-year average.

“We continue to see fairly typical activity when it comes to monthly home sale and listing totals,” Sandra Wyant, REBGV president said. “Today’s activity is helping to keep us in balanced market territory, which means that prices tend to experience minimal fluctuation.”

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 15,257, a decline of 12.2 per cent compared to this time last year, and a decline of 5.3 per cent compared to September 2013.

The sales-to-active-listings ratio is currently at 17.4 per cent in Greater Vancouver.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is $600,700. This represents a 0.5 per cent decline compared to this time last year.

Sales of detached properties reached 1,067 in October 2013, an increase of 35.1 per cent from the 790 detached sales recorded in October 2012 and a 9.5 per cent increase from the 974 units sold in October 2011. The benchmark price for detached properties decreased 0.5 per cent from October 2012 to $922,600.

Sales of apartment properties reached 1,098 in October 2013, an increase of 36.7 per cent compared to the 803 apartment sales recorded in October 2012, and an increase of 14.6 per cent compared to the 958 sales in October 2011. The benchmark price of an apartment property decreased 0.9 per cent from October 2012 to $365,600.

Attached property sales totaled 496, an increase of 46.7 per cent compared to the 338 attached property sales recorded in 2012 and a 29.8 per cent increase compared to the 382 attached property sales recorded in October 2011. The benchmark price of an attached property is $458,000, which is virtually unchanged from October 2012.

Source: http://www.vancitybuzz.com/2013/11/balanced-real-estate-market-in-vancouver-continues/

The post BALANCED REAL ESTATE MARKET IN VANCOUVER CONTINUES appeared first on Pacific New Homes.

Sales on the Multiple Listing Service are on pace to reach 71,700 units in 2013, up 6 per cent from last year’s sluggish showing, says the B.C. Real Estate Association.

With consumers concerned about the prospect of higher interest rates over the next year, many British Columbians are locking in mortgage preapprovals and shopping for homes, said Cameron Muir, the association’s chief economist.

In July, 2012, the federal government reduced the maximum period for a government-insured mortgage to 25 years from 30 years, resulting in a dampening effect on house sales. Last year, there were 67,637 sales across British Columbia of single-family detached homes, condos and townhouses, or a decline of 11.8 per cent from 2011.

The average residential price for a B.C. resale property this year is now forecast to climb 4.3 per cent to $537,100. A year ago, the association originally predicted a 0.7-per-cent price increase for 2013, though it subsequently revised its estimate to a 3.3-per-cent hike as the province’s housing industry healed from a rough 2012.

Mr. Muir forecasts that B.C. housing sales in 2014 will climb a further 6.3 per cent to 76,200 units while prices rise 2.1 per cent to $548,200. A stronger provincial economy is taking shape, including increased production of B.C. lumber due to a rebound in the U.S. housing market. Exports generally are in line to benefit next year from improved economies globally, especially in the United States and Japan.

The 15-year average for B.C. housing sales volume is above 79,000 annually, while the five-year average is 74,600. “We’re seeing a sales recovery back to long-term averages,” Mr. Muir said.

The real estate market in Greater Vancouver in particular has been strengthening this year, boosting statistics provincially. The association forecasts that 28,400 homes will change hands this year in Greater Vancouver, up 11.6 per cent from last year. An estimated 5,650 sales are predicted for the Victoria area in 2013, or a 3.5-per-cent hike from last year.

Mr. Muir sees the momentum continuing, projecting a sales jump of 8.8 per cent to 30,900 units in 2014 in Greater Vancouver and 4.3 per cent to 5,895 in the Victoria region.

Average resale prices for single-family detached homes, condos and townhouses are forecast to rise 4.8 per cent in Greater Vancouver this year and ascend a further 0.9 per cent to $772,000 next year. In the Fraser Valley, which includes the sprawling and less-expensive Vancouver suburb of Surrey, average prices are likely to increase 1.1 per cent this year and get another lift of 1.6 per cent to $497,000 in 2014, according to the association.

Average prices are forecast to edge upward in other provincial markets next year, too, including on Vancouver Island and the Chilliwack, Kamloops, Kootenay, Okanagan Mainline and B.C. Northern regions.

Last year, Ottawa eliminated government-backed insurance for homes above $1-million in a bid to discourage high consumer debt levels. So far in Greater Vancouver, buyers haven’t been scared away from higher-end properties, with average single-family detached prices projected to advance 5 per cent this year and a further 1.7 per cent to $1,189,600 next year.

While Greater Vancouver’s sales volume surged 64 per cent last month, that is compared with a subpar performance in September, 2012, Mr. Muir cautioned.

He added that housing demand will be bolstered by business investment and steady international migration. B.C. housing starts will slip 5 per cent this year, but new home construction is expected to increase 3.4 per cent next year to 27,000 units.

Source: http://www.theglobeandmail.com/news/british-columbia/bc-housing-rally-expected-to-continue-through-2014/article14979458/

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Ian Young, writing for a Hong Kong newspaper, covers real estate issues in Metro Vancouver with a rare kind of intensity and frankness.

Unlike in Metro Vancouver, Young says, Hong Kong newspapers run front-page stories almost daily about the fast-rising non-resident purchases of Hong Kong properties.  And most of the Hong Kong media coverage zeroes in on the effects of wealthy Mainland Chinese buying up so many Hong Kong condos and houses.

Young, an investigative reporter for The South China Morning Post, has been breaking significant stories about similar stratospheric rises in housing prices here in Metro Vancouver.

This week Young was picking up on Vancouver Mayor Gregor Robertson’s comments in Hong Kong this month, in which the mayor claimed Mainland Chinese people have nothing to do with Vancouver’s record-breaking property prices.

Robertson told the South China Morning Post the assertion that they do is “ridiculous.” Judging from the East Asian news media, it sounds like Hong Kong readers couldn’t believe what they were hearing from the Canadian mayor’s mouth.

Young makes it clear that most Hong Kongers (as well as the 90,000 Hong Kong-born Chinese in Metro Vancouver) are not as sanguin as many B.C. politicians and residents about what is happening to housing prices and what is behind the phenomenon.

Demographia Research ranks Metro Vancouver as the second most unaffordable city in the world out of 350 cities — after Hong Kong.

Both places are highly affected, Young and others confirm, by foreign ownership and immigration, particularly from Mainland China. Young, a permanent resident of Hong Kong and Canada, dug up information that suggested 75 per cent of high-end Metro Vancouver homes in one recent year were sold to Mainland Chinese (see below).

Of course Mayor Robertson is not the only B.C. politician who is coy about how migration and foreign ownership affects Vancouver’s crisis of unaffordability, especially for young people. I’m not aware of any politician who is being open about it. {Perhaps readers could inform me if I have missed someone.)

Source: http://blogs.vancouversun.com/2013/11/24/in-hong-kong-vancouver-real-estate-is-big-news-for-the-same-reason/

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The Real Estate Board of Greater Vancouver Housing Market Update for October 2013 with REBGV President Sandra Wyant.

For more news and statistics visit us at http://www.rebgv.org
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The post October 2013 Housing Market Update – The Real Estate Board of Greater Vancouver appeared first on Pacific New Homes.