Season's Greetings

I would like to take this opportunity to wish everyone all the best

over the holiday season and for 2008.

Dan McCarthy

RE/MAX Central

Market Update

BC Home Sales Surpass 2006 Total in 11 Months.

Vancouver, BC – December 18, 2007. British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 26.4 per cent to $3.21 billion in November, compared to the same month last year. Residential unit sales increased 11.9 per cent to 7,088 units during the same period. The average MLS® residential price reached $452,755, up 12.9 per cent from November 2006.

“BC home sales have already surpassed the annual total for every year except 2005, and there’s still one month to go,” said Cameron Muir, BCREA Chief Economist. A total of 98,014 homes were sold through MLS® during the first 11 months of 2007, exceeding the 2006 total of 96,671. “While home sales in the province are unlikely to break the record 106,310 units established in 2005, they are on track to exceed 100,000 units this year, the second highest ever recorded,” noted Muir.

“Despite eroding affordability, consumer demand remains strong,” added Muir. “Employment growth, rising wages and salaries and population growth buoyed by migration continue to underpin housing demand. Access to home ownership is also being bolstered by an increasing proportion of relatively affordable condominiums in the housing stock, and many consumers are taking advantage of longer mortgage amortizations which lower their monthly carrying costs.”

Year to date, MLS® residential sales volume increased 19.2 per cent to $42.95 billion compared to the same period last year. Residential sales climbed 6.2 per cent to 98,014 units over the same period. The average residential sales price rose 12.2 per cent to $438,189 January through November.

Market Review

Greater Vancouver housing sales rebound in November.

Derrick Penner
Vancouver Sun
Monday, December 17, 2007

A significant November rebound in Greater Vancouver housing re-sales helped push overall activity above 2006 levels, the Canadian Real Estate Association reported. The association registered 2,952 sales through the Multiple Listing Service, a 22 per cent increase from the same month a year ago.

As of the end of November, Greater Vancouver saw 37,021 units change hands, which is 6.6 per cent more than the number of units that were sold up to the same point in 2006.

The average unit price topped $577,000 in November, up 11.2 per cent from the same month a year ago.

Across Canada's major markets, housing MLS sales surged to a new annual re-sale record of 345,577, up 2.5 per cent from the previous high of 336,646 reached in 2005. "Demand remains strong due to continuing job and income growth and upbeat consumer confidence," Gregory Klump, association chief economist said in a press release.
However, in an interview, added that pending tax changes in Ontario likely spurred some Ontario buyers to rush their decisions to buy.

Construction Update

Metro Vancouver boasting the most housing starts in 30 years.

Vancouver Sun
Monday, December 10, 2007

VANCOUVER - Builders in Metro Vancouver started hammering up more homes in November than in any month in the last 30 years, Canada Mortgage and Housing Corp. reported Monday.

However, more and more of those homes are condominiums and townhouses. Up to the end of November, the growth in housing starts was driven by a 30-per-cent surge in multi-family-housing construction. "Construction of single-family homes has declined in all communities except North Vancouver, where infill building has this district bucking the trend," Robyn Adamache, a market analyst with CMHC said in a news release.

Builders started work on 2,704 homes in Metro Vancouver in November, compared with 1,405 in the same month a year ago. For the first 11 months, Metro Vancouver contractors started on 19,491 units, and only 3,826 of them single-family homes. In the first 11 months of 2006, builders had started on 17,398 new homes, with 5,386 of them single-family homes.

Peter Simpson, CEO of the Greater Vancouver Home Builders' Association said the results to date already make 2007 the most active year for residential construction in more than a decade. Province-wide, November housing starts reached 3,718 in November. Nationally, the pace of new-housing construction reached an seasonally adjusted average of 227,900 units for the year.

"Housing starts remained strong in November and are consistent with our new-home construction forecast for 2007," Bob Dugan, CMHC's chief economist. However, unlike Vancouver, Dugan said housing strength in the rest of Canada "is attributable to the good performance of single-detached home starts, which reached their highest level since March, 2006."

Commercial Real Estate

Vancouver has lowest office vacancy rate in Canada.

Financial Post

Wednesday, December 05, 2007

VANCOUVER - Vancouver has the lowest office space vacancy rate in the country, according to a new report from Cushman and Wakefield LePage.
The city has a forecast vacancy rate of 2.1 per cent for the end of 2008. Much of the tightening is due to no new supply coming on line. Only 80,000 square feet of new construction is expected to be finished next year.

Downtown Toronto is also suffering from a lack of office space, the study says. The real estate company said Wednesday that vacancies in Toronto's central office market will reach a "tight" 3.8 per cent in late 2008. That's way down from the 6.2 per cent vacancy rate at the end of 2006. "We are now at the point where demand will have to slow in the central market, simply due to the lack of available space," said Paul Morse, Cushman & Wakefield LePage's senior managing director of office leasing. "Those expanding or entering the market are now considering space in mid-town or further into the 905 regions to meet their space needs."

The Toronto office space crunch is clearly influencing the national vacancy rate which is expected to drop to 5.6 per cent in urban centres in the fourth quarter of 2008, down from the current 6.2 per cent.Toronto is home to 40 per cent of all of the country's office space. Cushman & Wakefield surveyed five cities across the country and found vacancy rates dropping in every city but Calgary.

However, the oilpatch continues to be a relatively tight market to rent in with the downtown vacancy rate projected to rise to 3.6 per cent by the end of next year. Suburban vacancies in Calgary are forecast to rise to 6.3 per cent. Part of the reason for the increase in vacancies is a jump in supply that will see almost four millions square feet of new office space completed next year.

"Calgary has had a wild ride over the past few years," said Morse. "We've seen space incredibly tight - down to 0.4 per cent vacancy in the core - and now we're seeing a healthy rebound to more manageable levels."
The real estate company predicts tenants are going to be forced to consider alternative options for space next year, including moving into less desirable Class B and Class C buildings.

Even the moribund Montreal office market is showing some signs of recovery. Cushman & Wakefield LePage said Montreal is forecast to have vacancy levels not seen since 1989-1990. After years of being stuck in double digits, Montreal's overall vacancy rate will hit 8.9 per cent next year and the downtown core will see a vacancy rate of 7.6 per cent. "There is a great deal of optimism in Montreal with rental rates increasing, vacancy dropping and absorption levels remaining positive," said Morse.

Financial Post

Market Review

This autumn, when a downtown Vancouver condominium was listed for $18.2 million, It caught the attention of The New York Times. In a feature on Vancouver real estate, Vancouver was described as an appealing multicultural city with a cosmopolitan feel, a vibrant urban lifestyle and a temperate climate, surrounded by mountains and water.

With this level of international exposure, can we expect prices to go up?
In the Real Estate Board area, our market has been on an upswing since
2002. Annual growth in sales has run about 5.5 per cent and home prices
have increased about 14 per cent per year.

Will this market continue?

To find out, we asked BC Real Estate Association Chief Economist Cameron Muir.

Muir explains that the fundamentals are in place for the market to continue.“ The Lower Mainland’s economy is expanding at 3.5 per cent per year. There is a record low unemployment rate of 4.1 per cent and a tight labour
market (more jobs than employees) which puts upward pressure on wages and salaries.”

Muir notes that despite eroding affordability, there is a wide mix of home types available. A look at listings indicates that in October there were 250 condominiums in the Real Estate Board area priced less than $200,000.
If we go up to $250,000, there were 672 condominiums and 44 townhomes. If a potential buyer had $300,000 to spend they could have chosen from 1,250 condominiums and 147 townhomes Board-wide.

“By year end 2007, 60 per cent of home sales in the Greater Vancouver Area will be either attached units or apartments, and 77 per cent of housing starts are expected to be multi-family,” say Muir. “Vancouver will also continue to be at the forefront of high density residential development.”

Where is the market headed?

Muir forecasts that MLS® home sales in the Board area will increase five per cent to 38,100 units in 2007, from 35,507 units in 2006. A lack of affordability will continue to be a barrier for some home buyers and will have an impact on consumer demand in 2008, leading to a decline in homes sales of 36,100 units. Home prices will also climb less
rapidly.

If we build it, will they come?

Muir forecasts that housing starts will decrease about three per cent overall in 2007, to 18,100 from 18,705 in 2006, a reflection of the Vancouver civic strike which halted construction and inspection permits. Starts will again rise in 2008 to 18,300 units with multi-family construction leading the way.

Muir cautions that while affordability is deteriorating, market conditions continue to be favourable. “Population in the region is forecast to increase five per cent between now and 2010. Employment and salaries are on the rise. Mortgage rates will remain low.
This is all good news.

Cameron Muir, Chief Economist, BCREA

Market Update

Housing sales continue to rise in November.

Vancouver, B.C. December 4, 2007.

The Real Estate Board of Greater Vancouver (REBGV) reports that total residential sales reached 2,883 units in November 2007, an increase of 22.2 per cent compared to 2,358 sales in November 2006, and a 1.9 per cent decrease compared to the 2,938 units sold in November 2005. Property listings increased 6.6 per cent compared to last year’s levels, with 3,377 active listings at November month-end, compared to 3,168 during the same period last year.

“The housing market continues to be strong,” says REBGV president Brian Naphtali. “November figures show strong growth compared to last year, are basically on par with figures from 2005, and are 16 per cent higher than the same period in 2004.

“Affordability is a key question,” Naphtali says. “Our data indicates that about 60 per cent of residential homes purchased in November were multi-family, which includes condos and townhomes. The benchmark price for a condo in Greater Vancouver is about $375,000. However, there are units available for considerably less than this price. For example, the benchmark for condos in Port Coquitlam in November was $243,624; in Maple Ridge, $254,703; and in Coquitlam, $283,830.”

According to Multiple Listings Service® (MLS®) data, sales of apartment properties increased by 21.5 per cent to 1,276 sales in November 2007 compared to 1,050 sales in November 2006. The benchmark price of an apartment property in Greater Vancouver, calculated by the MLSLink® Housing Price Index, is $374,393, up 13.6 per cent from one year ago.

Sales of attached properties increased by 33.7 per cent in November 2007 to 540 sales, compared to 404 sales in November 2006. The benchmark price of an attached unit is $455,332, up 11 per cent from a year ago.
Sales of detached properties increased by 18 per cent in November 2007 to 1,067 sales, compared to 904 sales in November 2006. The benchmark price of a detached unit is $729,011, up 12.6 per cent from last year.

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

DETACHED:
Burnaby up 47.4% ............................. (115 units sold, up from 78)
Coquitlam up 21.1%............................. (92 units sold, up from 76)
Maple Ridge/P. Meadows up 12.1% ... (111 units sold, up from 99)
North Vancouver up 24.3%................... (87 units sold, up from 70)
Port Coquitlam up 30.6%...................... (47 units sold, up from 36)
Richmond up 17.4%............................ (108 units sold, up from 92)
Squamish up 75%.................................(28 units sold, up from 16)
Sunshine Coast up 30.2%..................... (56 units sold, up from 43)
Vancouver East up 20%.................... (150 units sold, up from 125)

APARTMENTS:
Burnaby up 11.1%............................(160 units sold, up from 144)
Coquitlam up 40.4%............................. (73 units sold, up from 52)
North Vancouver up 39.4%................... (99 units sold, up from 71)
Port Moody/Belcarra up 227.3%........... (36 units sold, up from 11)
Richmond up 23.3% ......................... (159 units sold, up from 129)
Squamish up 125%................................ (18 units sold, up from 8)
Vancouver West up 29.3%............... (433 units sold, up from 335)

ATTACHED:
Burnaby up 16.9%................................(76 units sold, up from 65)
Maple Ridge/P. Meadows up 32.4%......(49 units sold, up from 37)
New Westminster up 128.6% ................. (16 units sold, up from 7)
Port Coquitlam up 45.8%...................... (35 units sold, up from 24)
Richmond up 94.5%............................ (107 units sold, up from 55)
Squamish up 107.7%............................ (27 units sold, up from 13)
Whistler/Pemberton up 110%............... (21 units sold, up from 10)

SOLD

I am pleased to announce the sale of 230 Blackman Street, New Westminster.

For further information please visit:

http://www.danmccarthy.ca