BC Home Sales to Surpass 100,000.

BCREA Fall Housing Forecast.

Vancouver, BC – September 27, 2007.

The British Columbia Real Estate Association (BCREA) released its fall 2007 Housing Forecast today.

BC Multiple Listing Service® (MLS®) home sales are forecast to break the 100,000 unit mark for only the second time in history. BCREA forecasts that BC MLS® residential sales will hit 101,000 units this year, up 4 per cent from 2006. The highest number of MLS® sales in the province was recorded in 2005, when a total of 106,310 homes were sold. The ten-year average is just under 78,000 units.

“Exceptionally strong consumer demand over the summer months has changed the outlook for this year from declining home sales to the second highest on record,” said Cameron Muir, Chief Economist. “While eroding affordability is squeezing some potential buyers out of the market, the housing stock is increasingly diverse, providing a mix of home types that appeal to a wide consumer market.”

BC home prices are also on the rise. The average MLS® residential price is forecast to climb 12 per cent to $437,000 this year. “While home prices continue to face upward pressure, the rate of growth is expected to moderate,” added Muir. The BC average MLS® price increased 18 per cent last year, and is forecast to rise at a more modest 8 per cent in 2008.

BC housing starts are forecast to decline 7 per cent to 33,900 units in this year and a further 4 per cent to 33,000 units in 2008. While single detached housing starts are trending down, multiple housing starts are holding firm at 21,000 units this year. Multiple housing starts now comprise 62 per cent of all new residential construction activity in the province.

The BCREA Housing Forecast is a semi-annual publication produced in the spring and fall of each year. The report contains forecasts and analysis of the BC economy and housing markets, including detailed forecasts by home type of the province’s 12 real estate board areas.

Commercial Real Estate

'Manhattaning' Vancouver
Ritz-Carlton brings its luxury brand to world-class city.

Ashley Ford
The Province
Tuesday, September 25, 2007

Photo illustration offers a look at the Vancouver skyline of 2011, one that includes the 60-storey Vancouver Turn at 1153 W. Georgia St.

You could call it the "Manhattaning" of West Georgia Street.
Construction has begun on the 60-storey Vancouver Turn, which includes the Ritz-Carlton Hotel and private residences in the same tower at 1153 West Georgia St.

Within spitting distance, the city's tallest-tower-to-be, the Living Shangri-La, now halfway on its way to 62 storeys, giving downtown Vancouver a bit of a New York look that few would have predicted several years ago.
The two spectacular buildings will dominate the city skyline. Pedestrians are already craning their necks as they walk by and gawk at the Shangri-La. They could get whiplash when The Residences is completed in 2011.

Marketing both projects is Bob Rennie, of Rennie Marketing Systems, who says the towers are architectural signatures that will emphasize Vancouver's arrival as a world-class city. "When you attract two international luxury brands like this, you realize the city, our little baby, has finally grown up," he said. "Luxury brands are always in limited supply and there may be few other opportunities for projects like these in the central business district in the future."

The city is already in a protective stance to keep more office space downtown.
The Ritz-Carlton, an icon in the global luxury hotel world, is being developed by Holborn Developments, a private Vancouver-based company. Ritz-Carlton's operating creed is that it will provide any service for its clients, as long as it is legal, moral and ethical. The project will fill in the last blighted spot along West Georgia. The shell of a previous building that stood empty for years has been demolished.

The 180-metre twisting glass tower atop a glass podium will feature 123 luxurious private residents on floors 27 to 60 with the hotel taking up 130 rooms on the lower floors. The tower has been designed by Arthur Erickson in collaboration with Musson Cattell Mackey Partnership and DYSarchitecture.

The majority of residences are roomy, ranging from 926 square feet up to 4,145 square feet for a penthouse and carry equally impressive price tags starting at $1.4 million up to $12.8 million. Rennie said there is already considerable interest from potential buyers. "We are getting attention from owners of significant properties in Vancouver who value service that goes along with the Ritz-Carlton brand," he said.

"When you are building a quality project such as this you have to think three years ahead of where design and function will be when it is completed in 2011. "For instance, the developers flew me to New York just to look at various kitchen designs," Rennie said. "That is the sort of stringent planning and design that is going into this building."

Market Update

Home Sales Continue at Torrid Pace

September 18, 2007.

The British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 25.9 per cent to $4.33 billion in August, compared to the same month last year. Residential unit sales increased 12.6 per cent to 9,833 units during the same period. The average MLS® residential price hit $439,931, up 11.8 per cent from August 2006.

BC home sales rebounded over the summer months, climbing 14 per cent June through August, compared to the same period last year. Year to date, BC home sales are up 4.7 per cent to 74,939 units.

“Despite eroding affordability, home sales are on a near record pace,” said Cameron Muir, BCREA Chief Economist. “Preferred retirement locations, such as Vancouver Island, the Okanagan and Kootenays, have experienced the largest increases in home sales this year.” Muir noted that, while home sales are up, the average home price across the province is climbing at a year-over-year rate of 12 per cent, down from a high of 21 per cent in June 2006.

“Barring any unforeseen shock in the market, such as rapidly rising interest rates or a meltdown of the BC economy, less upward pressure on home prices is expected over the next 24 months,” added Muir.

Office Update

Core office space is at record premium.
At 3%, downtown Vancouver has tighter market than booming Calgary.

Derrick Penner
Vancouver Sun; with a file from CanWest News Service
Wednesday, September 19, 2007

Vancouver's downtown office vacancy rate shrunk to a new low of three per cent, inching past Calgary as the tightest central office market in the country, according to commercial realtor CB Richard Ellis.
Only 645,008 square feet of Vancouver's 21.6 million square feet of offices downtown sit vacant, according to CB Richard Ellis' third-quarter report.

CB Richard Ellis analyst Chris Clibbon added that downtown's vacancy "is probably one of the lowest in North America," when it comes to downtown office availability.
Clibbon added that the opening of the 11-storey, 238,000-square-foot expansion of the Bentall Five building on Burrard Street will create some flex in the market.
"There are tenants giving back some large chunks of space," he said.

"Some will be moving into Bentall Five . . . and there will be some tenant shifts creating some options here and there, but nothing substantial."
Jeffrey Rank, managing director of commercial realtor Cushman & Wakefield LePage, said the subleasing market has provided some relief for the downtown market, providing room for tenants as companies change locations.

Catalyst Paper Corp.'s planned move from the PricewaterhouseCoopers building at 250 Howe St. to a suburban headquarters that will empty three floors in the downtown building is one example of office space opening up.
However, that space in the PricewaterhouseCoopers building was almost immediately leased by existing tenants in the building.
"In some markets, one of which I think we're in right now, looking at purely the percentage numbers doesn't always tell you the whole story," Rank said.
"Still, we're in a tight market. There's no question [about that]."

Cushman & Wakefield's assessment of downtown's vacancy is slightly higher than its competitor at 3.9 per cent.
Clibbon said Catalyst's decision to move out of downtown is indicative of another trend market analysts expect to see as vacancy remains tight.

Suburban office vacancy, according to CB Richard Ellis, was 10.9 per cent across all markets, although the total office space in the remainder of Metro Vancouver is only 17.3 million square feet. By community, vacancy ranged from 8.1 per cent in Burnaby to 22.4 per cent in Surrey.
Meanwhile, half of all new office buildings -- some five-million square feet -- being built in Canada are going up in Calgary, which will dramatically change its vacancy picture. That city's vacancy rate crept up to 3.1 per cent in the third quarter compared with 2.8 per cent in the second quarter.

Nationally, the vacancy rate for Class A space in the third quarter dipped to an "extremely low" 4.7 per cent, with rents climbing to an average $21.99 per square foot compared with $20.84 a quarter ago, according to CB Richard Ellis.
Montreal was the only market with falling prices. Asking rents dropped to $18.09 per square foot per year from $18.83.
"Even with the addition of a sizable amount of new Class A office space, the Calgary market will still be relatively tight market for some tenants because much of the new space coming to the market has already been leased," said CB Richard Ellis president Blake Hutcheson.

OFFICE SPACE SQUEEZE

Surrey looks like the best bet for finding office space in the Lower Mainland, according to CB Richard Ellis.

Office vacancy rates, Q3
Broadway corridor: 2.6%
Downtown Vancouver: 3.0%
North Shore: 5.0%
Burnaby: 8.1%
Richmond: 13.7%
New Westminster: 20.0%
Surrey: 22.4%
Total: 6.4%

Source: CB Richard Ellis

The RE/MAX Quest for Excellance Awards

RE/MAX 2008 “Quest For Excellence” Bursary Program.

RE/MAX is pleased to offer Grade 12 students the opportunity to earn a $500 bursary to be used towards further education.

Starting September 17th, 2007 and running through until March 7th, 2008, Grade 12 students in Western Canada can apply for one of twenty-four $500 bursaries to be presented at their awards ceremonies. In order to qualify, the student must demonstrate their passion and dedication by writing a short essay on one of the following chosen topics.

Leadership
Sports
Performing Arts
Technology or Trades
Fine Arts
Community/Volunteer Service

Click here for further information on the program: 2008 Quest Information

Submission Instructions
Complete the on-line application form. Click on link to enter now.Deadline for entry is March 7th, 2008. A maximum of one on-line essay per student. 2008 Application Form

We are proud to note past recipients of the Quest for Excellence Awards:
2007 winners· 2006 winners· 2005 winners

If you have any questions regarding this program, please email Marie Sheppy, msheppy@remax.net at RE/MAX of Western Canada.

Market Review

August housing market continues brisk summer sales trend.

Vancouver, B.C. September 5, 2007.

The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales reached 3,384 units in August 2007, a 12.9 per cent increase when compared to 2,998 sales in August 2006 and a decrease of 7.3 per cent when compared to 3,649 sales in August 2005.

During this period, new listings for detached, attached and apartment properties tightened, decreasing by 2.0 per cent to 4,408 units compared to the 4,500 units listed in August 2006. The total number of active listings remained virtually unchanged at 10,721 units when compared to August 2006’s 10,635 units.

“Greater Vancouver’s residential housing market remained brisk this August, with consumer demand continuing to outpace supply, as it has done for much of the year,” says REBGV president Brian Naphtali. “We’ve seen sales near record levels for three consecutive months, despite the summer traditionally being a slower time for real estate in Greater Vancouver. “Although the average number of days a property stayed on the market increased to 41 days from 38 days in July, this slowdown clearly didn’t impact consumer demand,” explains Naphtali. “Burnaby, Richmond, Squamish, Vancouver East and Vancouver West all experienced healthy sales gains in the detached and apartment property categories. REALTORS® are still reporting multiple offer competition, so make sure to contact an agent in your area to find out how this could affect the purchase or sale of your home.”

According to Multiple Listings Service® (MLS®) data, sales of apartment properties increased by 16.1 per cent to 1,504 sales in August 2007 compared to 1,295 sales in August 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $367,944, up 11.0 per cent from one year ago.

Sales of attached properties increased by 10.4 per cent in August 2007 to 592 sales, compared to 536 sales in August 2006. The benchmark price of an attached unit is $446,577, up 9.8 per cent from a year ago.

Sales of detached properties increased by 10.4 per cent in August 2007 to 1,288 sales, compared to 1,167 sales in August 2006. The benchmark price of a detached unit is $726,067, up 11.1 per cent from last year.

Bright spots in Greater Vancouver in August 2007 compared to August 2006:

DETACHED:
Richmond up 24.5% ...................... (173 units sold, up from 139)
Vancouver West up 32.8%............. (158 units sold, up from 119)
Vancouver East up 18.8%.............. (164 units sold, up from 138)
New Westminster up 37.5% ............. (29 units sold, up from 11)
Squamish up 93.3%........................... (29 units sold, up from 15)
Burnaby up 25.5% .............................123 units sold, up from 98)

ATTACHED:
Port Moody/Belcarra up 44.4%............39 units sold, up from 27)
Burnaby up 22.4% ............................. (93 units sold, up from 76)
Vancouver West up 15.5%................. (67 units sold, up from 58)

APARTMENTS:
Port Moody/Belcarra up 37.5%.......... (33 units sold, up from 24)
New Wesminster up 68.2%.............. (111 units sold, up from 66)
Port Coquitlam up 80.0% ................. (54 units sold, up from 30)
Burnaby up 13.4% ........................ (186 units sold, up from 164)
Richmond up 32.7%...................... (195 units sold, up from 147)

Luxury Sales

Luxury sales experience serious upward momentum in major Canadian markets, says RE/MAX

Kelowna, BC (September 5, 2007)

Consistent return on investment has prompted an unprecedented upswing in luxury home sales in major Canadian centres so far this year, according to a report released by RE/MAX.The RE/MAX Upper-End Market Trends Report examined trends and activity in 16 markets across the country between January and July 2007. Luxury home sales were up over the same period one-year ago in all markets, with percentage increases ranging from 13 per cent in Victoria to 521 per cent in Edmonton. Four markets, including Edmonton, Regina, Saskatoon and Ottawa, reported triple-digit increases while double-digit gains characterized remaining markets. The report also found that the upper-end price points were under stress in most markets surveyed.

"Strong economic performance, especially in Western Canadian provinces, has bolstered consumer confidence levels to such a degree that purchasers in the upper-end are comfortable with a million dollar plus investment in real estate," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "Recent volatility in the stock market may trigger further investment in real estate as purchasers move to reallocate their holdings."

Solid gains in housing values - especially in the top-end of the market - have garnered much attention. The steady upward trending has attracted a growing number of affluent purchasers who are taking advantage of both the increased equity and the capital gains exemption for a principle residence.

"The consumer appetite for luxury property has been insatiable," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing values. As a result, the million dollar home no longer holds the same cache it once did and in larger markets such as Vancouver, Calgary, and Toronto, it´s simply a starting price."

Out-of-province and international purchasers are active in most markets surveyed, but locals still account for the majority of upper-end sales. Benchmark sales, including one home priced at close to $16 million in Toronto, are occurring with greater frequency and overall, there are more sales taking place in the very upper reaches of the marketplace this year. In smaller centres, benchmarks have been set throughout the year and although some, such as Regina, have yet to report a $1 million sale, the day is nearing.

Upscale condominium sales are also climbing as empty-nesters and retirees up the ante for these types of property. The most expensive sale to date occurred in Vancouver at close to $5 million, while the priciest listing carries a price tag of $18.2 million in the same centre.

"It appears that a growing percentage of the population has that kind of money to spend," says Polzler. "Growth in market capitalization has generated tremendous wealth in recent years - in fact, both the Dow Jones and S&P 500 reported double-digit growth in 2006. Demand for luxury goods overall - upscale homes, fine art, collectable cars -- is outpacing demand for everyday consumables. Inheritance has played a significant role as well, with the download on an estimated $1 trillion amount already underway."

"When it comes to shelter, these upscale purchasers clearly want it all," says Ash. "Price is really no obstacle when it comes to creating a legacy."

RE/MAX is Canada´s leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: www.remax.ca.