Market Update
Selection broadens and demand eases to kick off 2012 in the Greater Vancouver housing market
VANCOUVER, B.C. - February 6, 2012
Greater Vancouver home sellers were more active than buyers in January and overall home prices, according to the new MLS® Home Price Index (MLS® HPI), continued to experience more stability and less fluctuation compared to the beginning of 2011. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,577 on the Multiple Listing Service® (MLS®) in January 2012. This represents a 4.9 per cent decrease compared to the 1,658 sales recorded in December 2011, a decrease of 13.3 per cent compared to the 1,819 sales in January 2011 and an 18 per cent decline from the 1,923 home sales in January 2010.
January sales in Greater Vancouver were the second lowest January total in the region since 2002, though only 146 sales below the 10-year average.
"We're seeing trends emerge in our market that favour buyers, such as increased selection and more stability in pricing compared to this time last year," Rosario Setticasi, REBGV president said. "Last month's activity tells us that competition amongst home buyers was reduced in
January, which means that individuals looking to purchase a home had more time to do their homework, consult with their REALTOR®, and make a decision."
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,756 in January. This represents a 19.9 per cent increase compared to the 4,801 new listings reported in January 2011, and a 253.3 per cent increase compared to the 1,629 new listings reported in December 2011. Last month's new listing count was the highest January total in Greater Vancouver since 1995. The total number of properties currently listed for sale on the Greater Vancouver MLS® is 12,544, a 12.5 per cent increase compared to December 2011 and an increase of 20.2 per cent compared to January 2011.
New MLS® Home Price Index launches in Canada
Today marks the launch of the MLS® Home Price Index (MLS® HPI), the best and purest way of determining price trends in the housing market. The MLS® HPI was pioneered by six founding partners: the real estate boards of Calgary, Fraser Valley, Greater Montreal, Greater Vancouver, and Toronto and the Canadian Real Estate Association. The partners contracted with Altus Group to develop the MLS® HPI which measures home price trends in the five major markets serviced by those boards.
The new index replaces the MLSLink Housing Price Index, which had been used by Greater Vancouver and Fraser Valley REALTORS® since the mid 1990s. MLS® HPI statistics should not be compared with previous MLSLink HPI statistics.1
"The MLS® HPI is a national collaboration intended to give the public a more reliable and comprehensive tool to understand home price trends across the country," Setticasi said. The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $660,600, up 5.7 per cent compared to January 2011 and down 0.1 per cent compared to December 2011. The MLS® HPI also tracks home prices across the Lower Mainland.2 The benchmark price for all residential properties in the Lower Mainland is $593,300, an increase of 5 per cent compared to January 2011.
Sales of detached properties on the MLS® in January 2012 reached 659, a decline of 16.9 per cent from the 793 detached sales recorded in January 2011, and a 6.5 per cent decrease from the 705 units sold in January 2010. The benchmark price for detached properties increased 11.3 per cent from January 2011 to $1,034,700.
Sales of apartment properties reached 657 in January 2012, a decline of 7.9 per cent compared to the 713 sales in January 2011, and a decrease of 26.3 per cent compared to the 891 sales in January 2010.The benchmark price of an apartment property increased 2.4 per cent from January 2011 to $371,500. Attached property sales in January 2012 totalled 261, a decline of 16.6 per cent compared to the 313 sales in January 2011, and a 20.2 per cent decrease from the 327 attached properties sold in
January 2010. The benchmark price of a townhome3 unit declined 0.5 per cent between January 2011 and 2012 to $468,000.
Click here to download the current's Housing Price Index HPI Greater Vancouver PDF
SOLD CONDOS STATISTICS:
What is a mean Average?
The Average price is obtained by dividing the total dollar volume of sales by the number of sales.
What is a Median Average?
To obtain a Median price, all of the sales prices are arrayed in numeric order. In the case of an even number of sales, the median is the highest price in the lower half of the group. If there is an odd number of sales, the midpoint sale is taken as the median.
What is the Sales-to-active listings ratio (SALR)?
The ratio of home sales to active listings is a good indication of any upward or downward pressure on home prices. Figure 1 illustrates the relationship between the sales-to-active listings ratio (SALR) and changes in home prices in Vancouver. As home sales rise relative to the number of homes listed for sale, home prices are pushed higher.
In 2008, a contraction in demand and an increase in the number of home listings pulled the SALR down sharply, below 0.10 or 10%, leading to a strong buyers market and declining home prices. A dramatic increase in demand this year had the reverse effect, drawing down the supply of homes for sale and pushing the SALR above 0.25 or 25%, leading to upward pressure on home prices.
This is a good rule of thumb: home prices are typically pulled downward when the SALR is below 0.10 or 10% and pushed upward when above 0.25 or 25%. Home prices tend to exhibit little upward or downward pressure when the SALR is between 0.15 and 0.20. In other words, home sales are 15-20 per cent of the total active listings in a given month. At this level, a relative balance exists between supply and demand.
A SENSE OF PLACE:
"So really the most important role for architects is to create a sense of place for people to live" James Cheng, Architect.
New Vancouver Convention Expension project::
The vision has quickly become a reality. The New building and its accompanying two acre public plaza are located just west of the existing convention centre facility. A 200ft. (60m) glass-enclosed connector will link the east and west buildings, providing stunning harbour views and complete integration of both wings. It's been no small task. The $883 million dollar expansion encompasses 1.1 million square feet - approximatelly 4 city blocks. Of this, 40 % is built over water. The new space will boast 52 break-out meetings rooms, a new adjacent 400-Room Hotel, and 83,000 sq.ft. (7,711 sq.m) of restaurants, retailers and attractions. By increasing the existing meeting place threefold, it is estimated that the new facility will generate an additional $107 million annually in delegate spending.
The VCCEP takes the Vancouver convention centre's commitment to environmental stewardship to new levels by incorporating numerous groundbraking innovations in sustainable design. One of the expansion's most highly anticipated features is a six-acre "living roof", one of the most ambitious project of its kind worlwide. About 30 % of the roof has already been planted with some 400,000 seedlings and thousand of seeds. Plants will be watered via clever irrigation systems that makes use of drainage and water recovery mechanisms that will collect rainwater. Architect Hemstock says: "We want to promote bees, ants, and other insects and birds to bring them back to the downtown"
Olympic spotlight aside, the project will provide an inspirational example of architecture innovation, functional design and a commitment to sustainability.
Vancouver the world's greenest city by 2020 - 10 years plan:
Vancouver 2020 - A Bright Green Future - PDF
Vancouverism is fast replacing "Manhattanism" as the maximum power setting for shaping the humane mixed-use city, important ideas for a new era of scarce energy and diminished natural resources.
Web: www.vancouverism.ca
Other Major New City of Vancouver projects:
Vancouver city Projects including the eco-density program, the chinatown revitalization, the south-east False Creek revitalization, the Downtown eastside revitalization, as well as the upcoming new transportation projects and cultural projects.
Downtown Vancouver Planning updates including all the information on the status of a project, start and completion dates, last update, links to related information, as well as contact names and phone numbers.
Downtown vancouver metropolitan core jobs and economy land use plan including what you should know about the metropolitan jobs and economy land use plan
The urban development institute Pacific region including information and reports on development industry in British Columbia, promoting wise and efficient urban growth, good planning and good development practices, affordable housing and high quality commercial and industrial developments.
Avison Young Vancouver Industrial overview including updates and market snapshots on industrial construction, retail sale, vacancy rates, capture and absorption rates, capitalisation rate.
